Bill Text: IN SB0337 | 2010 | Regular Session | Amended


Bill Title: Local government merger and cooperation.

Spectrum: Slight Partisan Bill (Republican 4-2)

Status: (Engrossed - Dead) 2010-02-09 - First reading: referred to Committee on Government and Regulatory Reform [SB0337 Detail]

Download: Indiana-2010-SB0337-Amended.html



Reprinted

January 27, 2010





SENATE BILL No. 337

_____


DIGEST OF SB 337 (Updated January 26, 2010 6:13 pm - DI 73)



Citations Affected: IC 36-1.5; IC 36-6.

Synopsis: Local government merger and cooperation. Requires the department of local government finance to develop criteria for making a one-time adjustment to allow a political subdivision to retain a portion of its levy and budget that would otherwise be reduced because of savings from a government reorganization or merger. Specifies that such an adjustment may not exceed 50% of the savings or reduction realized in the first full year of operation after the merger or reorganization. Specifies that the adjustment applies in the first year in which the adjustment is made and to all subsequent years. Provides that fiscal body of the reorganizing political subdivision or new township shall determine and certify to the department of local government finance the amount of the one time adjustment that the political subdivision or new township wishes to accept. Provides that in the case of a reorganization under the government modernization statutes, the amount of any one time adjustment accepted by a reorganized political subdivision must comply with the reorganization agreement.

Effective: July 1, 2010.





Head , Hershman, Broden, Randolph, Charbonneau




    January 12, 2010, read first time and referred to Committee on Tax and Fiscal Policy.
    January 19, 2010, amended, reported favorably _ Do Pass.
    January 26, 2010, read second time, amended, ordered engrossed.





Reprinted

January 27, 2010

Second Regular Session 116th General Assembly (2010)


PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts between statutes enacted by the 2009 Regular and Special Sessions of the General Assembly.

SENATE BILL No. 337



    A BILL FOR AN ACT to amend the Indiana Code concerning local government.

Be it enacted by the General Assembly of the State of Indiana:

SOURCE: IC 36-1.5-3-5; (10)SB0337.2.1. -->     SECTION 1. IC 36-1.5-3-5, AS ADDED BY P.L.186-2006, SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2010]: Sec. 5. (a) The department of local government finance shall establish a formula criteria for adjusting making a one-time adjustment to the maximum permissible property tax levies, maximum permissible property tax rates, and budgets under this chapter that permits IC 6-1.1-18.5 if a political subdivision (or a successor political subdivision) that realizes through a reorganization under this article a:
        (1) savings; to its taxpayers; or
        (2) reduction in the reasonably foreseeable expenses that would otherwise be have been incurred by its taxpayers; the political subdivision if the reorganization had not taken place.
through a reorganization under this article.
     (b) Except as provided in subsection (d), the one-time adjustment must permit the political subdivision to continue to:
        (1) include in its budget part of the budgeted amounts that

would otherwise be reduced by the department on account of the realized savings or reduction in expenses; and
        (2) impose part of the property tax
levy part of that would otherwise be reduced by the department on account of the realized savings or reduction in expenses.
     (c) The one-time adjustment under this section may not exceed fifty percent (50%) of the savings or reduction realized in the first full year of operation after the reorganization is implemented, as determined by the department of local government finance. The fiscal body of the political subdivision shall determine and certify to the department of local government finance the amount of the one (1) time adjustment that the political subdivision wishes to accept under this section. The one-time adjustment applies in the first year in which the adjustment is made and to all subsequent years.
     (d) The amount of any one (1) time adjustment accepted by a political subdivision under this section must comply with the reorganization agreement that reorganizes the political subdivision under this article.

SOURCE: IC 36-6-1.5-12; (10)SB0337.2.2. -->     SECTION 2. IC 36-6-1.5-12, AS ADDED BY P.L.240-2005, SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2010]: Sec. 12. (a) Subject to subsection (b), the officers of the new township government shall:
        (1) obtain from the department of local government finance approval under IC 6-1.1-18.5-7 of:
            (A) a budget;
            (B) an ad valorem property tax levy; and
            (C) a property tax rate;
        (2) fix the annual budget under IC 6-1.1-17;
        (3) impose a property tax levy; and
        (4) take any action necessary to ensure the collection of fees and other revenue;
for the new township government for the budget year following the year the officers take office.
     (b) The department of local government finance shall establish criteria for making a one-time adjustment to the maximum permissible property tax levies, maximum permissible property tax rates, and budgets under IC 6-1.1-18.5 if the new township realizes through a merger under this chapter a:
        (1) savings; or
        (2) reduction in the reasonably foreseeable expenses that would otherwise have been incurred by the political subdivision if the merger had not taken place.
    (c) The one-time adjustment under subsection (b) must permit the township to continue to:
        (1) include in its budget part of the budgeted amounts that would otherwise be reduced by the department on account of the realized savings or reduction in expenses; and
        (2) impose part of a property tax levy that would otherwise be reduced by the department on account of the realized savings or reduction in expenses.
The one-time adjustment may not exceed fifty percent (50%) of the savings or reduction in expenses realized in the first full year of operation after the merger is implemented, as determined by the department of local government finance. The fiscal body of the new township shall determine and certify to the department of local government finance the amount of the one (1) time adjustment that the new township wishes to accept under this section. The one-time adjustment applies in the first year in which the adjustment is made and to all subsequent years.

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