CHAPTER 25. TOWNSHIP ASSISTANCE IN DISTRESSED TOWNSHIPS
IC 12-20-25
Chapter 25. Township Assistance in Distressed Townships
IC 12-20-25-1
Application of chapter
Sec. 1. This chapter applies to each county having at least one (1)
distressed township.
As added by P.L.2-1992, SEC.14.
IC 12-20-25-2
"Control board" defined
Sec. 2. As used in this chapter, "control board" refers to the
township assistance control board.
As added by P.L.2-1992, SEC.14. Amended by P.L.73-2005,
SEC.113.
IC 12-20-25-3
"Creditor" defined
Sec. 3. As used in this chapter, "creditor" means a person that has
a claim against the township resulting from providing assistance to
an indigent individual as authorized by the township trustee under
this article.
As added by P.L.2-1992, SEC.14.
IC 12-20-25-4
"Distressed township" defined
Sec. 4. As used in this chapter, "distressed township" means:
(1) a township that:
(A) has a valid township assistance claim that the county
auditor cannot pay within thirty (30) days after the claim is
approved for payment under IC 12-2-1-31 (before its repeal)
or IC 12-20-20;
(B) has township assistance expenditures during a year that
exceed the year's township assistance revenues, excluding
any advances from the state and revenues from short term
loans from the county or a financial institution or advances
from the county from the proceeds of bonds, made or issued
under:
(i) this article; or
(ii) IC 12-2-1, IC 12-2-4.5, or IC 12-2-5 (before the repeal
of those statutes);
(C) has imposed and dedicated to township assistance at
least ninety percent (90%) of the maximum permissible ad
valorem property tax levy permitted for all of the township's
money under IC 6-1.1-18.5; and
(D) has outstanding indebtedness that exceeds one and
eight-tenths percent (1.8%) of the township's adjusted value
of taxable property in the district as determined under
IC 36-1-15; or
(2) a township that:
(A) has been a controlled township during any part of the
preceding five (5) years;
(B) has a valid township assistance claim that the county
auditor cannot pay within thirty (30) days after the claim is
approved for payment under IC 12-2-1-31 (before its repeal)
or IC 12-20-20; and
(C) uses advances from the county from proceeds of bonds
issued under IC 12-2-1 (before its repeal) or this article.
As added by P.L.2-1992, SEC.14. Amended by P.L.6-1997, SEC.147;
P.L.73-2005, SEC.114.
IC 12-20-25-5
"Indebtedness" defined
Sec. 5. As used in this chapter, "indebtedness" includes unpaid
township assistance claims, outstanding bonds, and advancements
from the county to the township for any purpose, if the advancement
is not repayable in the year the advancement is made.
As added by P.L.2-1992, SEC.14. Amended by P.L.73-2005,
SEC.115.
IC 12-20-25-6
Notification of township board of distressed status
Sec. 6. The township trustee shall immediately notify the
township board and the county fiscal body when a township becomes
a distressed township.
As added by P.L.2-1992, SEC.14.
IC 12-20-25-7
Action upon notice of township distress; certification to governor
Sec. 7. (a) Upon receipt of notice from the trustee that the
township has become a distressed township, the county fiscal body
shall do the following:
(1) Determine whether the township is a distressed township.
(2) If the township is determined to be a distressed township,
certify to the governor that the township is a distressed
township.
(b) If:
(1) the trustee fails to notify the county fiscal body when the
township becomes a distressed township; or
(2) the county fiscal body fails to certify to the governor that the
township is a distressed township;
any taxpayer of the township may notify the department, which shall
make the determination required by subsection (a)(1) and, if
appropriate, make the certification to the governor required by
subsection (a)(2).
As added by P.L.2-1992, SEC.14. Amended by P.L.90-2002,
SEC.356.
IC 12-20-25-8
Management committee; membership
Sec. 8. Upon receipt of a certification under section 7 of this
chapter, the governor shall appoint a four (4) member management
committee to assume the township trustee's duties as administrator
of township assistance. The committee must consist of one (1)
representative from each of the following:
(1) The budget agency. This member serves as chairperson.
(2) The state board of accounts.
(3) The department.
(4) The division of family resources.
As added by P.L.2-1992, SEC.14. Amended by P.L.90-2002,
SEC.357; P.L.73-2005, SEC.116; P.L.145-2006, SEC.120.
IC 12-20-25-9
Service at will of governor
Sec. 9. The management committee serves at the pleasure of the
governor.
As added by P.L.2-1992, SEC.14.
IC 12-20-25-10
Township trustee's duties to advise and assist
Sec. 10. The township trustee shall serve as an advisor to the
management committee and assist the management committee in
carrying out the committee's duties under this chapter.
As added by P.L.2-1992, SEC.14.
IC 12-20-25-11
Committee administration of township trustee's office
Sec. 11. The management committee shall administer the
township trustee's office until the committee has completed a
financial and management evaluation of the trustee's office and
reported the committee's findings to the control board under section
32 of this chapter.
As added by P.L.2-1992, SEC.14. Amended by P.L.73-2005,
SEC.117.
IC 12-20-25-12
Township assistance control board
Sec. 12. At the time the governor appoints the members of the
management committee, the governor shall also appoint a control
board for the distressed township under section 29 of this chapter.
As added by P.L.2-1992, SEC.14. Amended by P.L.73-2005,
SEC.118.
IC 12-20-25-13
Distressed township as controlled township; payment of township
assistance claims and committee operating costs from
supplemental township assistance fund
Sec. 13. (a) When the management committee is appointed, the
distressed township is a controlled township until the requirements
of section 41 of this chapter are met.
(b) During the period that the management committee is in control
of the township trustee's office, the payment of township assistance
claims and the operating costs of the management committee that:
(1) are incurred during the period the management committee
is in control of the township trustee's office; and
(2) exceed the revenue derived from the distressed township's
township assistance property tax levy;
shall be made from support to the county from the distressed
township supplemental township assistance fund established under
section 51 of this chapter.
As added by P.L.2-1992, SEC.14. Amended by P.L.73-2005,
SEC.119.
IC 12-20-25-14
Authority of township trustee
Sec. 14. A township trustee has no authority concerning township
assistance in a controlled township. However, after the management
committee has completed the evaluation of the trustee's office and
reported the committee's findings to the control board as required by
section 32 of this chapter, the township trustee shall resume the
trustee's duties concerning township assistance, subject to the
supervision and control of the control board.
As added by P.L.2-1992, SEC.14. Amended by P.L.73-2005,
SEC.120.
IC 12-20-25-15
Duties of committee; rules
Sec. 15. (a) The management committee appointed under section
8 of this chapter shall do the following:
(1) Conduct or have conducted a financial and compliance audit
of the internal operations of the trustee's office.
(2) Conduct or have conducted, to the extent practicable, a
financial and compliance audit of each township assistance
recipient who received assistance from the township trustee
over the five (5) years immediately preceding the assumption of
control of the trustee's office.
(3) Conduct or have conducted an economy and efficiency audit
of the internal operations of the trustee's office, which must
determine the following:
(A) If the trustee's office is managing and utilizing the
resources of the office, including personnel, property, and
office space, economically and efficiently.
(B) If there are any inefficiencies or uneconomical practices
and if so the causes.
(C) If the trustee's office has complied with statutes and
rules concerning matters of economy and efficiency.
(4) Establish standards for the following:
(A) Eligibility for township assistance.
(B) Payments for township assistance claims.
(C) Contracts and payments on contracts for township
assistance goods or services.
(D) Leases or rental agreements and payments on leases or
rental agreements for facilities that relate to the provision of
township assistance.
(E) Capital expenditures relating to township assistance.
(5) Implement a mandatory employment or workfare program
under IC 12-20-10 or IC 12-20-11 or require that a township
assistance recipient participate in a training program under
IC 12-20-12.
(b) Notwithstanding IC 36-9, the management committee is not
required to solicit bids before entering into a contract to have an
audit conducted under this section.
(c) If the control board has adopted rules concerning the standards
listed in subsection (a)(4), the management committee's rules must
be consistent with the control board's rules.
As added by P.L.2-1992, SEC.14. Amended by P.L.73-2005,
SEC.121.
IC 12-20-25-16
Litigation powers and duties
Sec. 16. The management committee may be sued in the
committee's own name. The management committee has the power
to sue in the committee's own name and to defend an appeal from a
determination made under section 28 of this chapter.
As added by P.L.2-1992, SEC.14.
IC 12-20-25-17
Committee powers regarding employees
Sec. 17. (a) The management committee may do the following:
(1) Employ, promote, and remove employees of the trustee's
office who perform township assistance duties as needed and,
with the approval of the governor, fix their compensation.
(2) Retain certified public accountants and other necessary
professionals from whom the committee may obtain audits,
reports, and other assistance necessary to perform the
committee's duties.
(b) The management committee may only dismiss a township
employee for just cause or with the approval of the township trustee.
Just cause includes removal for personnel reductions made in
accordance with IC 12-20-4.
As added by P.L.2-1992, SEC.14. Amended by P.L.73-2005,
SEC.122.
IC 12-20-25-18
Adoption of rules
Sec. 18. (a) The management committee and the control board
shall adopt rules as required by sections 15 and 30 of this chapter.
The management committee and the control board may each adopt
rules to administer the township assistance program in a controlled
township. IC 4-22-2 does not apply to the rules. Rules adopted under
this section must be:
(1) written;
(2) signed by the governor; and
(3) published in the Indiana Register not more than sixty (60)
days after the rules are signed by the governor.
(b) Notwithstanding any other provision of this article, an
individual may not receive township assistance from a controlled
township until the applicant for assistance qualifies under eligibility
standards established under rules adopted under subsection (a).
As added by P.L.2-1992, SEC.14. Amended by P.L.73-2005,
SEC.123.
IC 12-20-25-19
Registration for work at department of workforce development
prerequisite to assistance
Sec. 19. (a) Notwithstanding any other provision of this article, an
unemployed individual may not receive township assistance in a
controlled township until the individual has registered for work at an
office of the department of workforce development and has provided
proof that the individual is registered. This subsection does not apply
to an individual who:
(1) is not physically able to perform work;
(2) is less than eighteen (18) years of age or at least sixty-five
(65) years of age; or
(3) is needed to care for another individual because of the other
individual's age or physical condition.
(b) An unemployed individual who has registered under
subsection (a) may not receive township assistance in a controlled
township on a continuing basis unless the individual reports to the
employment office and provides proof that the individual has
reported with the frequency and in the manner prescribed by either
the management committee or the control board.
(c) Subject to subsection (a), if the management committee or the
control board finds that an individual has failed to:
(1) apply for available, suitable work when directed by the
commissioner of workforce development, the commissioner's
deputy, or an authorized representative of the state;
(2) accept, at any time after the individual is notified of a
separation, suitable work when found for and offered to the
individual by the commissioner of workforce development, the
commissioner's deputy, or an authorized representative of the
state; or
(3) return to the individual's customary self-employment when
directed by the commissioner of workforce development or the
commissioner's deputy;
the individual may not receive township assistance for six (6) months
after the date of the management committee's or control board's
finding.
As added by P.L.2-1992, SEC.14. Amended by P.L.21-1995, SEC.16;
P.L.73-2005, SEC.124.
IC 12-20-25-20
Case numbers
Sec. 20. (a) The management committee shall assign a case
number to each applicant who is qualified under section 18 of this
chapter for township assistance from the township.
(b) To the extent allowed by law, an individual's case number
must be the individual's Social Security number.
As added by P.L.2-1992, SEC.14. Amended by P.L.73-2005,
SEC.125.
IC 12-20-25-21
Denial of claims; grounds
Sec. 21. Notwithstanding IC 12-20-20, a claim may not be
approved if the township assistance is provided during the period that
the township is a controlled township and:
(1) the township assistance claim is not presented for payment
not more than sixty (60) days after the date the township
assistance was provided;
(2) the township assistance recipient cannot be identified;
(3) the township assistance provided cannot be substantiated in
detail; or
(4) the date the township assistance was provided cannot be
established.
As added by P.L.2-1992, SEC.14. Amended by P.L.73-2005,
SEC.126.
IC 12-20-25-22
Payment of unpaid claims of creditors
Sec. 22. (a) Sections 22 through 28 of this chapter create an
exclusive administrative remedy for the payment of unpaid claims of
creditors for the following goods and services that were provided
under the authority of IC 12-2-1 (before its repeal) or this article
before the township became a controlled township:
(1) Food, including prepared food and special dietary food.
(2) Clothing.
(3) Shelter.
(4) Water, gas, and electric services for lighting, heating, and
cooking.
(5) Household supplies, including first aid and medical supplies
for injury and illness.
(6) Medical and surgical attendance.
(7) Nursing care prescribed by a physician.
(8) School lunches.
(9) Transportation to allow a township assistance recipient to
seek or accept employment.
(10) Feed for livestock.
(11) Funeral and cemetery expenses.
(12) Any other goods or services provided under this article.
(b) A creditor that has a claim described in subsection (a) against
the township trustee must file a statement of claims with the
management committee not more than ninety (90) days after notice
is given under section 24 or 25 of this chapter.
(c) The statement of claims must itemize each claim the creditor
has against the township. The state board of accounts shall prescribe
the form of the statement of claims. The state board of accounts shall
establish standards for the submission of supporting documentation
for claims.
As added by P.L.2-1992, SEC.14. Amended by P.L.73-2005,
SEC.127.
IC 12-20-25-23
Statement of claim; filing limitations
Sec. 23. The claim of a creditor is void if the creditor fails to file
a statement of claims with the management committee not more than
ninety (90) days after notice is given under section 24 or 25 of this
chapter.
As added by P.L.2-1992, SEC.14.
IC 12-20-25-24
Information regarding creditors' claims; notice to creditors
Sec. 24. (a) The county auditor shall provide the management
committee with the following:
(1) The name, address, and voucher number of each creditor
whose claims have not been paid.
(2) An itemization of each creditor's claims against the
distressed township.
(b) The management committee shall send a notice by first class
mail to the creditors identified by the county auditor. The notice must
do the following:
(1) Inform the creditor that the creditor must file a statement of
claims with the management committee not more than ninety
(90) days after the mailing of the notice or the claim is void.
(2) Include a statement of claims form.
(3) Identify the required supporting documentation that must be
filed along with the statement of claims.
As added by P.L.2-1992, SEC.14.
IC 12-20-25-25
Notice by publication
Sec. 25. In addition to the notice required in section 24 of this
chapter, the management committee shall publish a notice to all
persons claiming to be creditors in two (2) newspapers of general
circulation in the county. If there is only one (1) newspaper of
general circulation in the county, publication in that newspaper is
sufficient notice to the persons claiming to be creditors.
As added by P.L.2-1992, SEC.14.
IC 12-20-25-26
Review and evaluation of claims
Sec. 26. (a) Upon receipt of a statement of claims from a creditor,
the management committee shall review and evaluate the validity and
reasonableness of each claim. The management committee is not
required to conduct a hearing under IC 4-21.5-3.
(b) The management committee's evaluation of each claim shall
be made without determining whether the claim is a valid township
debt under Article 13, Section 1 of the Constitution of the State of
Indiana.
As added by P.L.2-1992, SEC.14.
IC 12-20-25-27
Payment of claims; invalid and unreasonable claims
Sec. 27. (a) Except as provided in section 52(3) of this chapter, if
the management committee finds a claim to be valid and reasonable
in whole or in part, the amount of the claim found to be valid and
reasonable shall be paid from the distressed township's township
assistance account as provided in section 40 of this chapter. If the
management committee finds that a claim is invalid in whole or in
part, the amount of the claim found to be invalid is void. The
management committee shall mail a notice of the committee's
determination to the creditor not more than ten (10) days after the
determination is made. The notice must include a statement of the
reasons for the determination.
(b) If the management committee finds that a claim is not
reasonable, the management committee shall mail a notice of the
finding to the creditor and shall attempt to negotiate a reasonable
settlement with the creditor for the amount of the claim. If the
management committee attempts to negotiate with the creditor and
determines that it is not possible to reach a reasonable settlement of
the claim not more than sixty (60) days after the notice was mailed,
the management committee shall determine the amount of the claim
that is reasonable. The management committee shall mail a notice of
the committee's determination to the creditor not more than ten (10)
days after the determination is made. The notice must include a
statement of the reasons for the determination.
As added by P.L.2-1992, SEC.14. Amended by P.L.73-2005,
SEC.128.
IC 12-20-25-28
Determination of validity and reasonableness of claim; finality;
appeal
Sec. 28. (a) A determination of the management committee
concerning the validity and reasonableness of a claim is a final
administrative determination.
(b) A creditor aggrieved by a final determination of the
management committee may appeal the determination by filing a
petition with the circuit or superior court of the county in which the
creditor resides or in the county in which the distressed township is
located. The petition must be filed not more than thirty (30) days
following the date of the management committee's determination.
The court shall try the cause de novo. Except as provided in section
52(3) of this chapter, a final court judgment that orders a payment to
be made to a creditor under this subsection may be collected upon
and paid from the distressed township's township assistance account
as provided in section 40 of this chapter. An action brought under
this section is governed by IC 34-13-5, except that a change of venue
is governed by the Indiana Rules of Trial Procedure rather than
IC 34-13-5-4.
(c) A claim under this article that is pending in court at the time
the township becomes a distressed township is stayed and the
claimant must file the claim with the management committee as
provided in this chapter. A claimant who has a final court judgment
on a claim under this article before the township becomes a
distressed township may proceed to collect on that judgment as
provided by law.
(d) An action under this section is subject to the defense that the
claim may violate Article 13, Section 1 of the Constitution of the
State of Indiana.
As added by P.L.2-1992, SEC.14. Amended by P.L.1-1998, SEC.104;
P.L.73-2005, SEC.129.
IC 12-20-25-29
Township assistance control board; membership; salaries
Sec. 29. (a) A township assistance control board is established for
each distressed township. The governor shall appoint the following
members to the control board:
(1) The budget director or the director's designee, who shall
serve as the chairman of the board.
(2) One (1) representative of the state board of accounts.
(3) One (1) representative of the department.
(4) One (1) representative of the division of family resources.
(5) One (1) elected public official of the county.
(6) One (1) township trustee.
(7) One (1) individual who:
(A) resides in the county or is employed in the county by an
employer paying taxes in the county; and
(B) is or agrees to become familiar with township assistance.
(8) The township trustee of the distressed township, who shall
serve as a nonvoting ex officio member of the control board.
(b) The members of the control board serve at the pleasure of the
governor.
(c) Each member of the board who is not a state employee or an
elected official is entitled to the minimum salary per diem provided
by IC 4-10-11-2.1(b). Such a member is also entitled to
reimbursement for traveling expenses and other expenses actually
incurred in connection with the member's duties, as provided in the
state travel policies and procedures established by the Indiana
department of administration and approved by the budget agency.
As added by P.L.2-1992, SEC.14. Amended by P.L.90-2002,
SEC.358; P.L.73-2005, SEC.130; P.L.145-2006, SEC.121.
IC 12-20-25-30
Powers and duties of control board
Sec. 30. (a) The control board shall supervise the township trustee
in the administration of township assistance. The control board may
appoint one (1) of the board's members to monitor the trustee's
compliance with this chapter and to report discrepancies to the
control board. The control board may require the board's approval of
an expenditure of more than five hundred dollars ($500).
(b) Notwithstanding IC 36-6-6-11, the control board shall review
and may reduce or increase the township's budget and proposed tax
levy to be advertised by the county auditor. If the control board finds
that there will be insufficient revenues available under this chapter
for the township to pay valid township assistance claims, the control
board may consent to proposed borrowing for township assistance
under IC 12-20-24.
(c) The control board may approve the number, pay, and duties of
employees who are employed for the distribution and administration
of the distressed township's township assistance program.
(d) The control board may require the township trustee to submit
reports on the amounts of township assistance by categories,
including the types of goods or services furnished and the vendors
who supplied the goods or services.
(e) The control board:
(1) shall operate the employment program implemented by the
management committee under section 15(a)(5) of this chapter;
and
(2) may require that a township assistance recipient participate
in a training program under IC 12-20-12-1.
(f) The control board shall establish income eligibility standards
for township assistance, subject to the requirements of section 18 of
this chapter.
As added by P.L.2-1992, SEC.14. Amended by P.L.73-2005,
SEC.131; P.L.169-2006, SEC.41.
IC 12-20-25-31
Distribution rules; requirements
Sec. 31. (a) The control board may adopt rules concerning the
distribution of township assistance designed to reduce the cost and
improve the delivery of township assistance. IC 4-22-2 does not
apply to the rules. The rules may include provisions governing the
following:
(1) The minimum quality of goods and services required to be
provided by township assistance vendors.
(2) The rate of reimbursement to be provided to vendors of
goods and services under the township assistance program.
(3) The types of assistance that are to be provided to township
assistance recipients.
(4) Competitive bidding requirements for purchases of goods
and services for township assistance recipients, other than food,
other perishable products, and goods or services needed on an
emergency basis.
(5) The time within which providers of township assistance are
to present claims for payment, which may not exceed sixty (60)
days from the date the township assistance was provided.
(6) The purchase of goods and services to meet the emergency
needs of township assistance applicants without competitive
bids.
(b) If rules described in subsection (a)(4) are adopted, the rules
must require that:
(1) purchases may be made only after bids have been solicited;
and
(2) the contract for furnishing goods or services must be
awarded to the lowest and best responsible and responsive
bidder or to more than one (1) bidder if the selection of more
than one (1) bidder is appropriate to provide the necessary
goods or services.
(c) If practicable and prudent, township assistance purchases
should be made from local vendors.
As added by P.L.2-1992, SEC.14. Amended by P.L.73-2005,
SEC.132.
IC 12-20-25-32
Report; financial plan recommendation
Sec. 32. (a) As soon as the management committee has completed
the financial, compliance, economy, and efficiency audits required
by section 15 of this chapter, the management committee shall make
a report to the control board. The report must include the following:
(1) The findings of the financial, compliance, economy, and
efficiency audits.
(2) An itemization of each creditor's claims against the
distressed township that were found to be valid and reasonable.
(3) An itemization of each claim that was found to be invalid.
(4) An itemization of each claim that was found to be
unreasonable and on which no settlement was negotiated.
(5) A proposed operating budget for the township trustee's
office.
(6) An estimate of future operating and debt service costs for
township assistance.
(7) The amount of outstanding township assistance bonds
issued and loans incurred by the county and advancements
made by the county.
(8) The maximum permissible township assistance levy of the
township under IC 6-1.1-18.5.
(b) The county fiscal body may recommend a financial plan to the
management committee that ensures that future revenue increases, if
necessary, come from sources other than ad valorem property taxes
imposed on property within the distressed township and will
accomplish the purposes set forth in section 33(a)(2) of this chapter.
The financial plan may include any of the options set forth in section
34 of this chapter. The management committee shall include any
submitted plan in the committee's report to the control board.
As added by P.L.2-1992, SEC.14. Amended by P.L.73-2005,
SEC.133.
IC 12-20-25-33
Operating budget; financial plan; adoption
Sec. 33. (a) Upon receipt of the report required in section 32 of
this chapter, the control board shall adopt the following:
(1) An operating budget for the trustee's office.
(2) A financial plan that will ensure that future revenue will do
the following:
(A) Cover operating expenses and pay township assistance
claims that are incurred during the time that the township is
a controlled township not more than thirty (30) days after the
claims are presented for payment.
(B) Satisfy the outstanding valid and reasonable claims of
creditors that are approved under section 27 or 28 of this
chapter within three (3) years.
(C) Retire outstanding bonded indebtedness, the proceeds of
which were advanced to the distressed township, and repay
outstanding loans or advances made for township assistance
in the distressed township within three (3) years.
(b) If the county fiscal body submits a financial plan under section
32(b) of this chapter, the control board shall adopt the fiscal body's
plan if the control board finds that the plan will accomplish the
purposes set forth in subsection (a)(2).
As added by P.L.2-1992, SEC.14. Amended by P.L.73-2005,
SEC.134.
IC 12-20-25-34
Financial plan; contents
Sec. 34. The financial plan adopted under section 33 of this
chapter may include the following:
(1) The adoption in the current year of:
(A) the county adjusted gross income tax at a rate allowed
by IC 6-3.5-1.1; or
(B) the county option income tax at a rate not to exceed one
percent (1%);
to be distributed as provided in this chapter. The adoption of
either county income tax under this chapter is in addition to the
county adjusted gross income tax or the county option income
tax that may already be in effect in the county.
(2) The payment of township assistance with county money.
(3) The elimination or reduction of township assistance services
not required under this article.
As added by P.L.2-1992, SEC.14. Amended by P.L.73-2005,
SEC.135.
IC 12-20-25-35
Control board report to county fiscal body; adoption or rejection
of financial plan; inclusion of income tax
Sec. 35. (a) The control board shall report the following to the
county fiscal body:
(1) The audit findings of the management committee.
(2) The financial plan adopted under section 33 of this chapter.
(b) Not more than thirty (30) days after notice, the county fiscal
body shall adopt one (1) of the following:
(1) An ordinance adopting the financial plan adopted by the
control board.
(2) An ordinance rejecting the financial plan adopted by the
control board.
(c) Notwithstanding IC 6-3.5-6, if:
(1) the financial plan adopted under section 33 of this chapter
includes the county option income tax; and
(2) the fiscal body adopts an ordinance adopting the financial
plan under subsection (b);
the county option income tax is imposed at the rate adopted in the
financial plan. Subject to the requirements of this chapter, the county
fiscal body, rather than the county income tax council, has the
authority granted to a county income tax council by IC 6-3.5-6 as
long as the county option income tax imposed under this chapter
remains in effect.
As added by P.L.2-1992, SEC.14.
IC 12-20-25-36
Department action; transfer of funds to township assistance
account
Sec. 36. (a) Notwithstanding IC 6-1.1-17, if the county fiscal
body:
(1) adopts an ordinance under section 35(b)(2) of this chapter;
or
(2) fails to adopt an ordinance under section 35(b) of this
chapter;
the department shall reduce the county's general fund budget and
increase the distressed township's township assistance account
budget in an amount sufficient to satisfy the requirements of section
33(a)(2) of this chapter. The department shall notify the county
auditor and county treasurer of the county general fund reduction and
the county treasurer shall transfer from the county general fund to the
distressed township's township assistance account the amount
specified by the department.
(b) Notwithstanding IC 6-1.1-18.5, if a county is required to
transfer money to a distressed township's township assistance
account under subsection (a), the county may not appeal for an
excessive levy under IC 6-1.1-18.5 to replace money that is
transferred from the county general fund.
As added by P.L.2-1992, SEC.14. Amended by P.L.90-2002,
SEC.359; P.L.73-2005, SEC.136.
IC 12-20-25-37
Adoption of proposal including income tax; notice to department
of revenue; collection of tax
Sec. 37. (a) If the county fiscal body adopts an ordinance adopting
the control board's financial plan as provided in section 35 of this
chapter and the plan includes a proposal to adopt the county adjusted
gross income tax or the county option income tax, the control board
shall notify the department of state revenue of this fact.
(b) Notwithstanding IC 6-3.5-1.1 and IC 6-3.5-6, after receiving
notice from the control board, the department of state revenue shall
collect the tax beginning on the earlier of July 1 or January 1
immediately following the notice from the control board. Except as
provided in this chapter, a county adjusted gross income tax or
county option income tax imposed under this chapter shall be
administered in the same manner that other county adjusted gross
income taxes or county option income taxes are administered under
IC 6-3.5-1.1 or IC 6-3.5-6, whichever applies.
As added by P.L.2-1992, SEC.14.
IC 12-20-25-38
Advance of state general fund money; repayment
Sec. 38. (a) If the county fiscal body adopts an ordinance adopting
the control board's financial plan as provided in section 35 of this
chapter and the plan includes a proposal to adopt the county adjusted
gross income tax or the county option income tax, the control board
may request an advance of state general fund money in the year the
county fiscal body adopts the plan and in any subsequent year in
anticipation of the county adjusted gross income tax or the county
option income tax revenue. However, the state, acting through the
state board of finance, may not advance an amount that is greater
than the amount of county adjusted gross income tax or county
option income tax revenue expected to be collected within the year
in which the advancement is made. The department of state revenue
shall estimate and certify to the state board of finance the amount of
county adjusted gross income tax or county option income tax
revenue expected to be collected.
(b) If the county fiscal body adopts an ordinance adopting the
control board's financial plan as provided in section 35 of this
chapter and the plan includes a proposal to adopt the county adjusted
gross income tax or the county option income tax, a state advance
from the state general fund must be repaid before any money is
distributed to the county. The treasurer of state shall withhold
sufficient money from the county's county adjusted gross income tax
or county option income tax account to repay the state the amount of
state advances provided to the county from the state general fund.
The treasurer of state shall disburse any balance in the county's
account to the county, to be used as provided in section 40 of this
chapter.
(c) This section does not impose liability on the state for the
township assistance debts of the county.
As added by P.L.2-1992, SEC.14. Amended by P.L.73-2005,
SEC.137.
IC 12-20-25-39
Deposit of tax proceeds; disbursement
Sec. 39. The proceeds of the county adjusted gross income tax or
the county option income tax imposed under this chapter shall be
deposited by the treasurer of state on behalf of the county into a
separate county adjusted gross income tax or county option income
tax account, whichever applies. The money in the account shall be
disbursed as provided in section 38(b) of this chapter.
As added by P.L.2-1992, SEC.14.
IC 12-20-25-40
County income tax township assistance control fund; disbursement
priorities
Sec. 40. The county treasurer shall deposit the disbursements from
the treasurer of state in a county fund to be known as the county
income tax township assistance control fund. Notwithstanding
IC 6-3.5-1.1, IC 6-3.5-6, and IC 6-1.1-18.5, the county treasurer shall
disburse the money in the fund in the following priority:
(1) To ensure the payment within thirty (30) days of all valid
township assistance claims in the distressed township that are
not covered by subdivision (3).
(2) At the end of each calendar year, to redeem any outstanding
bonds issued or repay loans incurred by the county for poor
relief or township assistance purposes under IC 12-2-4.5 (before
its repeal), IC 12-2-5 (before its repeal), IC 12-20-23 (before its
repeal), or IC 12-20-24 to the extent the proceeds of the bonds
or loans were advanced to the distressed township.
(3) To pay claims approved under section 27 or 28 of this
chapter (or IC 12-2-14-22 or IC 12-2-14-23 before their repeal).
(4) As provided in IC 6-3.5-6 if the county option income tax is
imposed under this chapter. If the county adjusted gross income
tax is imposed under this chapter, to provide property tax
replacement credits for each civil taxing unit and school
corporation in the county as provided in IC 6-3.5-1.1. No part
of the county adjusted gross income tax revenue is considered
a certified share of a governmental unit as provided in
IC 6-3.5-1.1-15. In addition, the county adjusted gross income
tax revenue (except for the county adjusted gross income tax
revenues that are to be treated as property tax replacements
under this subdivision) is in addition to and not a part of the
revenue of the township for purposes of determining the
township's maximum permissible property tax levy under
IC 6-1.1-18.5.
As added by P.L.2-1992, SEC.14. Amended by P.L.73-2005,
SEC.138; P.L.169-2006, SEC.42.
IC 12-20-25-41
"Advance" defined; "support" defined; termination of controlled
status
Sec. 41. (a) As used in subsection (c), "advance" refers to money
provided to a distressed township from the state general fund under
section 38 of this chapter.
(b) As used in subsection (c), "support" refers to money provided
from the distressed township supplemental township assistance fund
established by section 51 of this chapter to pay township assistance
claims and the operating costs of the management committee during
the period the management committee is in control of the township
trustee's office.
(c) The controlled status of a township under this chapter
terminates at the end of a year if at that time the county, with respect
to each controlled township:
(1) has repaid:
(A) all state advances provided to the county under this
chapter; and
(B) state support provided to the county under this chapter
if the department has reduced the county's general fund
budget under section 36 of this chapter;
(2) has paid all valid township assistance claims in the
distressed township, including the claims approved under
section 27 or 28 of this chapter;
(3) will have sufficient money to pay, not more than thirty (30)
days after a claim is submitted for payment, all valid township
assistance claims in the distressed township that are expected to
be submitted in the following year as determined by the control
board, excluding any advances from the state, revenues from
short term loans from the county or a financial institution under
IC 12-2-4.5 (before its repeal) or IC 12-20-24, and proceeds
from bonds issued under IC 12-2-1 (before its repeal), IC 12-2-5
(before its repeal), or this article; and
(4) has no bonds outstanding that were issued to pay for
township assistance in the distressed township.
(d) Notwithstanding IC 6-3.5-1.1 and IC 6-3.5-6, if the control
board finds that:
(1) the requirements of subsection (c)(1), (c)(2), and (c)(4) are
satisfied; and
(2) the requirements of subsection (c)(3) cannot be satisfied
because the township's maximum permissible ad valorem
property tax levy provides insufficient revenue to ensure the
payment of all valid township assistance claims in the distressed
township that will be incurred during the year following the
termination of the controlled status of the township;
the county fiscal body may dedicate to the provision of township
assistance, from the county adjusted gross income tax or the county
option income tax imposed as a result of adopting a financial plan
under section 35 of this chapter, an amount necessary to satisfy the
requirements of subsection (c)(3).
(e) If the control board finds that the income tax dedicated under
subsection (d) will satisfy the requirements of subsection (c)(3), the
controlled status of the township under this chapter terminates at the
end of the year in which the control board makes the board's finding.
As added by P.L.2-1992, SEC.14. Amended by P.L.90-2002,
SEC.360; P.L.73-2005, SEC.139.
IC 12-20-25-42
Township certified as distressed before January 1, 1988;
termination of controlled status; review and approval of civil and
township assistance budgets; outstanding debt
Sec. 42. (a) This section applies to a township that was certified
a distressed township before January 1, 1988.
(b) The controlled status of the distressed township is terminated
on July 1, 1989, if the department finds that the following conditions
exist:
(1) All valid township assistance claims in the distressed
township, including the claims approved under IC 12-2-14-22
(before its repeal), IC 12-2-14-23 (before its repeal), or section
27 or 28 of this chapter, have been paid, except for the
following:
(A) Claims under litigation before the date of the board's
finding.
(B) Obligations owed to other political subdivisions.
(2) The township has no bonds outstanding that were issued to
pay for township assistance in the distressed township.
(c) Notwithstanding section 4(2) of this chapter, if a township that
has had the township's distressed status terminated under subsection
(b) uses advances from the county from proceeds of bonds issued
under IC 12-2-1 (before its repeal) or this article to pay township
assistance claims more than one (1) time in the five (5) years
following the termination of the township's distressed status, the
township must have the township's civil and township assistance
budgets reviewed and approved by the county fiscal body in each
year that a tax is levied against the property in the township to repay
the advances. The decision of the county fiscal body may be
appealed to the department.
(d) Notwithstanding IC 12-2-5-6 (before its repeal), IC 12-2-5-8
(before its repeal), IC 12-20-23-15 (before its repeal), and
IC 12-20-23-19 (before its repeal), the aggregate principal amount of
any outstanding debt that is incurred to pay township assistance
claims during the five (5) years following the termination of the
township's distressed status under subsection (b) and that is in excess
of one-tenth percent (0.1%) of the adjusted valued of taxable
property in the township as determined under IC 36-1-15 is the direct
general obligation of the county.
As added by P.L.2-1992, SEC.14. Amended by P.L.6-1997, SEC.148;
P.L.90-2002, SEC.361; P.L.73-2005, SEC.140; P.L.169-2006,
SEC.43.
IC 12-20-25-43
Maximum ad valorem property tax insufficient to pay all township
assistance claims; dedication of other revenue
Sec. 43. Notwithstanding IC 6-3.5-1.1 and IC 6-3.5-6, if:
(1) there has been a controlled township in a county;
(2) the township that has been controlled has levied the
township's maximum permissible ad valorem property tax levy
for township assistance;
(3) the maximum permissible ad valorem property tax levy is
insufficient to ensure the payment within thirty (30) days of all
valid township assistance claims in the township; and
(4) the county adjusted gross income tax or county option
income tax is in effect in the county as a result of adopting a
financial plan under this chapter;
the county fiscal body shall dedicate from the county adjusted gross
income tax or county option income tax imposed under this chapter
an amount of revenue determined by the department to be necessary
to ensure the payment within thirty (30) days of all township
assistance claims in the township that has been controlled. The
county fiscal body shall distribute any income tax revenues dedicated
under this section before the fiscal body makes any other
distributions in accordance with this chapter. Notwithstanding
section 45 of this chapter, the county fiscal body may not reduce the
county option income tax rate below the rate necessary to satisfy the
requirements of this section.
As added by P.L.2-1992, SEC.14. Amended by P.L.90-2002,
SEC.362; P.L.73-2005, SEC.141.
IC 12-20-25-44
Distribution of county adjusted gross income tax or county option
income tax; rescission of tax; termination of tax
Sec. 44. (a) This section applies after the termination of the
controlled status of all townships located in a county as provided in
section 41 of this chapter.
(b) If the county adjusted gross income tax or county option
income tax is imposed under this chapter, the tax shall be distributed
as provided in section 46 of this chapter. If the county fiscal body has
not dedicated county adjusted gross income tax or county option
income tax revenue for township assistance under section 41 of this
chapter, the county fiscal body may rescind the tax as provided in
IC 6-3.5-1.1 or IC 6-3.5-6, whichever applies. If the county fiscal
body has dedicated county adjusted gross income tax or county
option income tax revenue for township assistance under section 41
of this chapter, the county fiscal body may rescind the tax but not
until after the end of the year following the termination of the
controlled status of the township.
(c) If:
(1) the county adjusted gross income tax (IC 6-3.5-1.1) or the
county option income tax (IC 6-3.5-6) was in effect before the
county adjusted gross income tax or the county option income
tax is imposed under this chapter; and
(2) the county fiscal body did not dedicate county adjusted
gross income tax or county option income tax revenue for
township assistance under section 41 of this chapter;
the county adjusted gross income tax or county option income tax
imposed under this chapter terminates as of the date the controlled
status of all townships located in the county terminates.
As added by P.L.2-1992, SEC.14. Amended by P.L.73-2005,
SEC.142.
IC 12-20-25-45
Adjustments to county option income tax; local homestead credit
Sec. 45. (a) Notwithstanding IC 6-3.5-6, after the termination of
the controlled status of all townships located in a county as provided
in section 41 of this chapter and if the county option income tax is
imposed under this chapter, the county fiscal body may adopt an
ordinance to:
(1) grant a credit for homesteads that are eligible for a standard
deduction under IC 6-1.1-12-37 in the county; or
(2) reduce the county option income tax rate for resident county
taxpayers to a rate not less than the greater of:
(A) the minimum rate necessary to satisfy the requirements
of section 43 of this chapter; or
(B) the minimum rate necessary to satisfy the requirements
of sections 43 and 46(2) of this chapter if an ordinance is
adopted under subdivision (1).
(b) A county fiscal body may not grant a credit for homesteads
that exceeds the percentage permitted under IC 6-3.5-6-13 for a
county option income tax imposed under IC 6-3.5-6.
(c) The increase in the homestead credit percentage must be
uniform for all homesteads in a county.
(d) In an ordinance that increases the homestead credit
percentage, the county fiscal body may provide for a series of
increases or decreases to take place for each of a group of succeeding
calendar years.
(e) An ordinance may be adopted under this section after January
1 but before June 1 of a calendar year.
(f) An ordinance adopted under this section takes effect January
1 of the next calendar year.
(g) An ordinance adopted under this section for a county is not
applicable for a year if on January 1 of that year the county option
income tax is not in effect.
As added by P.L.2-1992, SEC.14. Amended by P.L.113-2010,
SEC.92.
IC 12-20-25-46
Income tax revenues; distribution after termination of controlled
status
Sec. 46. After the termination of the controlled status of all
townships located in a county as provided in section 41 of this
chapter, if the county adjusted gross income tax or the county option
income tax is imposed under this chapter, any revenues from the
county adjusted gross income tax or the county option income tax
imposed under this chapter shall be distributed in the following
priority:
(1) To satisfy the requirements of section 43 of this chapter.
(2) If the county option income tax imposed under this chapter
is in effect, to replace the amount, if any, of property tax
revenue lost due to the allowance of a homestead credit within
the county under an ordinance adopted under section 45 of this
chapter.
(3) To be used as a certified distribution as provided in
IC 6-3.5-1.1 or IC 6-3.5-6, whichever applies.
As added by P.L.2-1992, SEC.14. Amended by P.L.113-2010,
SEC.93.
IC 12-20-25-47
Continuation of rules until modified or terminated
Sec. 47. Rules established by the control board before the
termination of a township's controlled status continue to govern the
operations of the township trustee's office until the rules are modified
or terminated by the township board.
As added by P.L.2-1992, SEC.14.
IC 12-20-25-48
Audits or reports as public records
Sec. 48. An audit or a report:
(1) required to be made by this chapter; or
(2) requested to be made by the management committee or the
control board;
is a public record.
As added by P.L.2-1992, SEC.14.
IC 12-20-25-49
Maximum permissible ad valorem property tax levy mandatory
Sec. 49. Each distressed township shall take all action necessary
to levy the maximum permissible ad valorem property tax levy for
township assistance permitted under IC 6-1.1-18.5. If a distressed
township fails to take this action, the department shall adjust, in the
board's certificate of levies of governmental entities in the county,
the township's proposed levy so that the levy is the maximum
permissible ad valorem property tax levy.
As added by P.L.2-1992, SEC.14. Amended by P.L.90-2002,
SEC.363; P.L.73-2005, SEC.143.
IC 12-20-25-50
Office space for management committee and control board
Sec. 50. The county auditor shall provide the management
committee and the control board with office space.
As added by P.L.2-1992, SEC.14.
IC 12-20-25-51
Distressed township supplemental township assistance fund;
establishment; administration; general purpose
Sec. 51. The distressed township supplemental township
assistance fund is established. The fund shall be administered by the
treasurer of state. The fund shall be used to provide state support to
distressed townships.
As added by P.L.2-1992, SEC.14. Amended by P.L.73-2005,
SEC.144.
IC 12-20-25-52
Nature and uses of distressed township supplemental township
assistance fund
Sec. 52. State support provided from the distressed township
supplemental township assistance fund:
(1) is supplemental to other financing for township assistance;
(2) may be used to satisfy township assistance claims incurred
during the period the management committee is in control of the
township trustee's office; and
(3)