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 thetownship 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 hasa claim against the township resulting from providing assistance toan indigent individual as authorized by the township trustee underthis 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 countyauditor cannot pay within thirty (30) days after the claim isapproved for payment under IC 12-2-1-31 (before its repeal)or IC 12-20-20;
(B) has township assistance expenditures during a year thatexceed the year's township assistance revenues, excludingany advances from the state and revenues from short termloans from the county or a financial institution or advancesfrom the county from the proceeds of bonds, made or issuedunder:
(i) this article; or
(ii) IC 12-2-1, IC 12-2-4.5, or IC 12-2-5 (before the repealof those statutes);
(C) has imposed and dedicated to township assistance atleast ninety percent (90%) of the maximum permissible advalorem property tax levy permitted for all of the township'smoney under IC 6-1.1-18.5; and
(D) has outstanding indebtedness that exceeds one andeight-tenths percent (1.8%) of the township's adjusted valueof taxable property in the district as determined underIC 36-1-15; or
(2) a township that: (A) has been a controlled township during any part of thepreceding five (5) years;
(B) has a valid township assistance claim that the countyauditor cannot pay within thirty (30) days after the claim isapproved 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 bondsissued 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 unpaidtownship assistance claims, outstanding bonds, and advancementsfrom the county to the township for any purpose, if the advancementis 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 thetownship board and the county fiscal body when a township becomesa 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 thetownship has become a distressed township, the county fiscal bodyshall 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 distressedtownship.
(b) If:
(1) the trustee fails to notify the county fiscal body when thetownship becomes a distressed township; or
(2) the county fiscal body fails to certify to the governor that thetownship is a distressed township;
any taxpayer of the township may notify the department, which shallmake the determination required by subsection (a)(1) and, ifappropriate, make the certification to the governor required bysubsection (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 thischapter, the governor shall appoint a four (4) member managementcommittee to assume the township trustee's duties as administratorof 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 thegovernor.
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 themanagement committee and assist the management committee incarrying 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 thetownship trustee's office until the committee has completed afinancial and management evaluation of the trustee's office andreported the committee's findings to the control board under section32 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 themanagement committee, the governor shall also appoint a controlboard 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 townshipassistance claims and committee operating costs fromsupplemental township assistance fund
Sec. 13. (a) When the management committee is appointed, thedistressed township is a controlled township until the requirementsof section 41 of this chapter are met. (b) During the period that the management committee is in controlof the township trustee's office, the payment of township assistanceclaims and the operating costs of the management committee that:
(1) are incurred during the period the management committeeis in control of the township trustee's office; and
(2) exceed the revenue derived from the distressed township'stownship assistance property tax levy;
shall be made from support to the county from the distressedtownship supplemental township assistance fund established undersection 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 townshipassistance in a controlled township. However, after the managementcommittee has completed the evaluation of the trustee's office andreported the committee's findings to the control board as required bysection 32 of this chapter, the township trustee shall resume thetrustee's duties concerning township assistance, subject to thesupervision 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 section8 of this chapter shall do the following:
(1) Conduct or have conducted a financial and compliance auditof the internal operations of the trustee's office.
(2) Conduct or have conducted, to the extent practicable, afinancial and compliance audit of each township assistancerecipient who received assistance from the township trusteeover the five (5) years immediately preceding the assumption ofcontrol of the trustee's office.
(3) Conduct or have conducted an economy and efficiency auditof the internal operations of the trustee's office, which mustdetermine the following:
(A) If the trustee's office is managing and utilizing theresources of the office, including personnel, property, andoffice space, economically and efficiently.
(B) If there are any inefficiencies or uneconomical practicesand if so the causes.
(C) If the trustee's office has complied with statutes andrules 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 orrental agreements for facilities that relate to the provision oftownship assistance.
(E) Capital expenditures relating to township assistance.
(5) Implement a mandatory employment or workfare programunder IC 12-20-10 or IC 12-20-11 or require that a townshipassistance recipient participate in a training program underIC 12-20-12.
(b) Notwithstanding IC 36-9, the management committee is notrequired to solicit bids before entering into a contract to have anaudit conducted under this section.
(c) If the control board has adopted rules concerning the standardslisted in subsection (a)(4), the management committee's rules mustbe 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 thecommittee's own name. The management committee has the powerto sue in the committee's own name and to defend an appeal from adetermination 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'soffice who perform township assistance duties as needed and,with the approval of the governor, fix their compensation.
(2) Retain certified public accountants and other necessaryprofessionals from whom the committee may obtain audits,reports, and other assistance necessary to perform thecommittee's duties.
(b) The management committee may only dismiss a townshipemployee for just cause or with the approval of the township trustee.Just cause includes removal for personnel reductions made inaccordance 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 boardshall adopt rules as required by sections 15 and 30 of this chapter.The management committee and the control board may each adoptrules to administer the township assistance program in a controlledtownship. 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, anindividual may not receive township assistance from a controlledtownship until the applicant for assistance qualifies under eligibilitystandards 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 developmentprerequisite to assistance
Sec. 19. (a) Notwithstanding any other provision of this article, anunemployed individual may not receive township assistance in acontrolled township until the individual has registered for work at anoffice of the department of workforce development and has providedproof that the individual is registered. This subsection does not applyto 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 otherindividual's age or physical condition.
(b) An unemployed individual who has registered undersubsection (a) may not receive township assistance in a controlledtownship on a continuing basis unless the individual reports to theemployment office and provides proof that the individual hasreported with the frequency and in the manner prescribed by eitherthe management committee or the control board.
(c) Subject to subsection (a), if the management committee or thecontrol board finds that an individual has failed to:
(1) apply for available, suitable work when directed by thecommissioner of workforce development, the commissioner'sdeputy, or an authorized representative of the state;
(2) accept, at any time after the individual is notified of aseparation, suitable work when found for and offered to theindividual by the commissioner of workforce development, thecommissioner's deputy, or an authorized representative of thestate; or
(3) return to the individual's customary self-employment whendirected by the commissioner of workforce development or thecommissioner's deputy;
the individual may not receive township assistance for six (6) monthsafter the date of the management committee's or control board'sfinding.
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 casenumber to each applicant who is qualified under section 18 of thischapter for township assistance from the township.
(b) To the extent allowed by law, an individual's case numbermust 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 beapproved if the township assistance is provided during the period thatthe township is a controlled township and:
(1) the township assistance claim is not presented for paymentnot more than sixty (60) days after the date the townshipassistance was provided;
(2) the township assistance recipient cannot be identified;
(3) the township assistance provided cannot be substantiated indetail; or
(4) the date the township assistance was provided cannot beestablished.
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 anexclusive administrative remedy for the payment of unpaid claims ofcreditors for the following goods and services that were providedunder the authority of IC 12-2-1 (before its repeal) or this articlebefore 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, andcooking.
(5) Household supplies, including first aid and medical suppliesfor 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 toseek 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) againstthe township trustee must file a statement of claims with the
management committee not more than ninety (90) days after noticeis given under section 24 or 25 of this chapter.
(c) The statement of claims must itemize each claim the creditorhas against the township. The state board of accounts shall prescribethe form of the statement of claims. The state board of accounts shallestablish standards for the submission of supporting documentationfor 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 filea statement of claims with the management committee not more thanninety (90) days after notice is given under section 24 or 25 of thischapter.
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 managementcommittee with the following:
(1) The name, address, and voucher number of each creditorwhose claims have not been paid.
(2) An itemization of each creditor's claims against thedistressed township.
(b) The management committee shall send a notice by first classmail to the creditors identified by the county auditor. The notice mustdo the following:
(1) Inform the creditor that the creditor must file a statement ofclaims 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 befiled 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 thischapter, the management committee shall publish a notice to allpersons claiming to be creditors in two (2) newspapers of generalcirculation in the county. If there is only one (1) newspaper ofgeneral circulation in the county, publication in that newspaper issufficient 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 andreasonableness of each claim. The management committee is notrequired to conduct a hearing under IC 4-21.5-3.
(b) The management committee's evaluation of each claim shallbe made without determining whether the claim is a valid townshipdebt under Article 13, Section 1 of the Constitution of the State ofIndiana.
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, ifthe management committee finds a claim to be valid and reasonablein whole or in part, the amount of the claim found to be valid andreasonable shall be paid from the distressed township's townshipassistance account as provided in section 40 of this chapter. If themanagement committee finds that a claim is invalid in whole or inpart, the amount of the claim found to be invalid is void. Themanagement committee shall mail a notice of the committee'sdetermination to the creditor not more than ten (10) days after thedetermination is made. The notice must include a statement of thereasons for the determination.
(b) If the management committee finds that a claim is notreasonable, the management committee shall mail a notice of thefinding to the creditor and shall attempt to negotiate a reasonablesettlement with the creditor for the amount of the claim. If themanagement committee attempts to negotiate with the creditor anddetermines that it is not possible to reach a reasonable settlement ofthe claim not more than sixty (60) days after the notice was mailed,the management committee shall determine the amount of the claimthat is reasonable. The management committee shall mail a notice ofthe committee's determination to the creditor not more than ten (10)days after the determination is made. The notice must include astatement 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 committeeconcerning the validity and reasonableness of a claim is a finaladministrative determination.
(b) A creditor aggrieved by a final determination of themanagement committee may appeal the determination by filing apetition with the circuit or superior court of the county in which thecreditor resides or in the county in which the distressed township islocated. The petition must be filed not more than thirty (30) daysfollowing 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 tobe made to a creditor under this subsection may be collected uponand paid from the distressed township's township assistance accountas provided in section 40 of this chapter. An action brought underthis section is governed by IC 34-13-5, except that a change of venueis governed by the Indiana Rules of Trial Procedure rather thanIC 34-13-5-4.
(c) A claim under this article that is pending in court at the timethe township becomes a distressed township is stayed and theclaimant must file the claim with the management committee asprovided in this chapter. A claimant who has a final court judgmenton a claim under this article before the township becomes adistressed township may proceed to collect on that judgment asprovided by law.
(d) An action under this section is subject to the defense that theclaim may violate Article 13, Section 1 of the Constitution of theState 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 foreach distressed township. The governor shall appoint the followingmembers to the control board:
(1) The budget director or the director's designee, who shallserve 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 anemployer 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 shallserve as a nonvoting ex officio member of the control board.
(b) The members of the control board serve at the pleasure of thegovernor.
(c) Each member of the board who is not a state employee or anelected official is entitled to the minimum salary per diem providedby IC 4-10-11-2.1(b). Such a member is also entitled toreimbursement for traveling expenses and other expenses actuallyincurred in connection with the member's duties, as provided in thestate travel policies and procedures established by the Indianadepartment 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 trusteein the administration of township assistance. The control board mayappoint one (1) of the board's members to monitor the trustee'scompliance with this chapter and to report discrepancies to thecontrol board. The control board may require the board's approval ofan expenditure of more than five hundred dollars ($500).
(b) Notwithstanding IC 36-6-6-11, the control board shall reviewand may reduce or increase the township's budget and proposed taxlevy to be advertised by the county auditor. If the control board findsthat there will be insufficient revenues available under this chapterfor the township to pay valid township assistance claims, the controlboard may consent to proposed borrowing for township assistanceunder IC 12-20-24.
(c) The control board may approve the number, pay, and duties ofemployees who are employed for the distribution and administrationof the distressed township's township assistance program.
(d) The control board may require the township trustee to submitreports on the amounts of township assistance by categories,including the types of goods or services furnished and the vendorswho supplied the goods or services.
(e) The control board:
(1) shall operate the employment program implemented by themanagement committee under section 15(a)(5) of this chapter;and
(2) may require that a township assistance recipient participatein a training program under IC 12-20-12-1.
(f) The control board shall establish income eligibility standardsfor township assistance, subject to the requirements of section 18 ofthis 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 thedistribution of township assistance designed to reduce the cost andimprove the delivery of township assistance. IC 4-22-2 does notapply to the rules. The rules may include provisions governing thefollowing:
(1) The minimum quality of goods and services required to beprovided by township assistance vendors.
(2) The rate of reimbursement to be provided to vendors ofgoods and services under the township assistance program.
(3) The types of assistance that are to be provided to townshipassistance recipients.
(4) Competitive bidding requirements for purchases of goodsand 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 areto 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 emergencyneeds of township assistance applicants without competitivebids.
(b) If rules described in subsection (a)(4) are adopted, the rulesmust require that:
(1) purchases may be made only after bids have been solicited;and
(2) the contract for furnishing goods or services must beawarded to the lowest and best responsible and responsivebidder or to more than one (1) bidder if the selection of morethan one (1) bidder is appropriate to provide the necessarygoods or services.
(c) If practicable and prudent, township assistance purchasesshould 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 completedthe financial, compliance, economy, and efficiency audits requiredby section 15 of this chapter, the management committee shall makea report to the control board. The report must include the following:
(1) The findings of the financial, compliance, economy, andefficiency audits.
(2) An itemization of each creditor's claims against thedistressed 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 beunreasonable and on which no settlement was negotiated.
(5) A proposed operating budget for the township trustee'soffice.
(6) An estimate of future operating and debt service costs fortownship assistance.
(7) The amount of outstanding township assistance bondsissued and loans incurred by the county and advancementsmade by the county.
(8) The maximum permissible township assistance levy of thetownship under IC 6-1.1-18.5.
(b) The county fiscal body may recommend a financial plan to themanagement committee that ensures that future revenue increases, ifnecessary, come from sources other than ad valorem property taxesimposed on property within the distressed township and willaccomplish the purposes set forth in section 33(a)(2) of this chapter.The financial plan may include any of the options set forth in section34 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 ofthis 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 dothe following:
(A) Cover operating expenses and pay township assistanceclaims that are incurred during the time that the township isa controlled township not more than thirty (30) days after theclaims are presented for payment.
(B) Satisfy the outstanding valid and reasonable claims ofcreditors that are approved under section 27 or 28 of thischapter within three (3) years.
(C) Retire outstanding bonded indebtedness, the proceeds ofwhich were advanced to the distressed township, and repayoutstanding loans or advances made for township assistancein the distressed township within three (3) years.
(b) If the county fiscal body submits a financial plan under section32(b) of this chapter, the control board shall adopt the fiscal body'splan if the control board finds that the plan will accomplish thepurposes 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 thischapter may include the following:
(1) The adoption in the current year of:
(A) the county adjusted gross income tax at a rate allowedby IC 6-3.5-1.1; or
(B) the county option income tax at a rate not to exceed onepercent (1%);
to be distributed as provided in this chapter. The adoption ofeither county income tax under this chapter is in addition to thecounty adjusted gross income tax or the county option incometax 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 servicesnot 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 thecounty 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 fiscalbody shall adopt one (1) of the following:
(1) An ordinance adopting the financial plan adopted by thecontrol board.
(2) An ordinance rejecting the financial plan adopted by thecontrol board.
(c) Notwithstanding IC 6-3.5-6, if:
(1) the financial plan adopted under section 33 of this chapterincludes the county option income tax; and
(2) the fiscal body adopts an ordinance adopting the financialplan under subsection (b);
the county option income tax is imposed at the rate adopted in thefinancial plan. Subject to the requirements of this chapter, the countyfiscal body, rather than the county income tax council, has theauthority granted to a county income tax council by IC 6-3.5-6 aslong as the county option income tax imposed under this chapterremains in effect.
As added by P.L.2-1992, SEC.14.
IC 12-20-25-36
Department action; transfer of funds to township assistanceaccount
Sec. 36. (a) Notwithstanding IC 6-1.1-17, if the county fiscalbody:
(1) adopts an ordinance under section 35(b)(2) of this chapter;or
(2) fails to adopt an ordinance under section 35(b) of thischapter;
the department shall reduce the county's general fund budget andincrease the distressed township's township assistance accountbudget in an amount sufficient to satisfy the requirements of section33(a)(2) of this chapter. The department shall notify the countyauditor and county treasurer of the county general fund reduction andthe county treasurer shall transfer from the county general fund to thedistressed township's township assistance account the amountspecified by the department.
(b) Notwithstanding IC 6-1.1-18.5, if a county is required totransfer money to a distressed township's township assistanceaccount under subsection (a), the county may not appeal for anexcessive levy under IC 6-1.1-18.5 to replace money that istransferred 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 departmentof revenue; collection of tax
Sec. 37. (a) If the county fiscal body adopts an ordinance adoptingthe control board's financial plan as provided in section 35 of thischapter and the plan includes a proposal to adopt the county adjustedgross income tax or the county option income tax, the control boardshall notify the department of state revenue of this fact.
(b) Notwithstanding IC 6-3.5-1.1 and IC 6-3.5-6, after receivingnotice from the control board, the department of state revenue shallcollect the tax beginning on the earlier of July 1 or January 1immediately following the notice from the control board. Except asprovided in this chapter, a county adjusted gross income tax orcounty option income tax imposed under this chapter shall beadministered in the same manner that other county adjusted grossincome taxes or county option income taxes are administered underIC 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 adoptingthe control board's financial plan as provided in section 35 of thischapter and the plan includes a proposal to adopt the county adjustedgross income tax or the county option income tax, the control boardmay request an advance of state general fund money in the year thecounty fiscal body adopts the plan and in any subsequent year inanticipation of the county adjusted gross income tax or the countyoption income tax revenue. However, the state, acting through thestate board of finance, may not advance an amount that is greaterthan the amount of county adjusted gross income tax or countyoption income tax revenue expected to be collected within the yearin which the advancement is made. The department of state revenueshall estimate and certify to the state board of finance the amount ofcounty adjusted gross income tax or county option income taxrevenue expected to be collected.
(b) If the county fiscal body adopts an ordinance adopting thecontrol board's financial plan as provided in section 35 of thischapter and the plan includes a proposal to adopt the county adjustedgross income tax or the county option income tax, a state advancefrom the state general fund must be repaid before any money isdistributed to the county. The treasurer of state shall withholdsufficient money from the county's county adjusted gross income taxor county option income tax account to repay the state the amount ofstate advances provided to the county from the state general fund.The treasurer of state shall disburse any balance in the county'saccount to the county, to be used as provided in section 40 of thischapter.
(c) This section does not impose liability on the state for thetownship 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 orthe county option income tax imposed under this chapter shall bedeposited by the treasurer of state on behalf of the county into aseparate county adjusted gross income tax or county option incometax account, whichever applies. The money in the account shall bedisbursed 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; disbursementpriorities
Sec. 40. The county treasurer shall deposit the disbursements fromthe treasurer of state in a county fund to be known as the countyincome tax township assistance control fund. NotwithstandingIC 6-3.5-1.1, IC 6-3.5-6, and IC 6-1.1-18.5, the county treasurer shalldisburse the money in the fund in the following priority:
(1) To ensure the payment within thirty (30) days of all validtownship assistance claims in the distressed township that arenot covered by subdivision (3).
(2) At the end of each calendar year, to redeem any outstandingbonds issued or repay loans incurred by the county for poorrelief or township assistance purposes under IC 12-2-4.5 (beforeits repeal), IC 12-2-5 (before its repeal), IC 12-20-23 (before itsrepeal), or IC 12-20-24 to the extent the proceeds of the bondsor loans were advanced to the distressed township.
(3) To pay claims approved under section 27 or 28 of thischapter (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 isimposed under this chapter. If the county adjusted gross incometax is imposed under this chapter, to provide property taxreplacement credits for each civil taxing unit and schoolcorporation in the county as provided in IC 6-3.5-1.1. No partof the county adjusted gross income tax revenue is considereda certified share of a governmental unit as provided inIC 6-3.5-1.1-15. In addition, the county adjusted gross incometax revenue (except for the county adjusted gross income taxrevenues that are to be treated as property tax replacementsunder this subdivision) is in addition to and not a part of therevenue of the township for purposes of determining thetownship's maximum permissible property tax levy underIC 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 moneyprovided to a distressed township from the state general fund undersection 38 of this chapter.
(b) As used in subsection (c), "support" refers to money providedfrom the distressed township supplemental township assistance fundestablished by section 51 of this chapter to pay township assistanceclaims and the operating costs of the management committee duringthe period the management committee is in control of the townshiptrustee's office.
(c) The controlled status of a township under this chapterterminates at the end of a year if at that time the county, with respectto each controlled township:
(1) has repaid:
(A) all state advances provided to the county under thischapter; and
(B) state support provided to the county under this chapterif the department has reduced the county's general fundbudget under section 36 of this chapter;
(2) has paid all valid township assistance claims in thedistressed township, including the claims approved undersection 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 townshipassistance claims in the distressed township that are expected tobe submitted in the following year as determined by the controlboard, excluding any advances from the state, revenues fromshort term loans from the county or a financial institution underIC 12-2-4.5 (before its repeal) or IC 12-20-24, and proceedsfrom 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 fortownship assistance in the distressed township.
(d) Notwithstanding IC 6-3.5-1.1 and IC 6-3.5-6, if the controlboard finds that:
(1) the requirements of subsection (c)(1), (c)(2), and (c)(4) aresatisfied; and
(2) the requirements of subsection (c)(3) cannot be satisfiedbecause the township's maximum permissible ad valoremproperty tax levy provides insufficient revenue to ensure thepayment of all valid township assistance claims in the distressedtownship that will be incurred during the year following thetermination of the controlled status of the township;
the county fiscal body may dedicate to the provision of townshipassistance, from the county adjusted gross income tax or the countyoption income tax imposed as a result of adopting a financial planunder section 35 of this chapter, an amount necessary to satisfy therequirements of subsection (c)(3).
(e) If the control board finds that the income tax dedicated undersubsection (d) will satisfy the requirements of subsection (c)(3), the
controlled status of the township under this chapter terminates at theend 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 andtownship assistance budgets; outstanding debt
Sec. 42. (a) This section applies to a township that was certifieda distressed township before January 1, 1988.
(b) The controlled status of the distressed township is terminatedon July 1, 1989, if the department finds that the following conditionsexist:
(1) All valid township assistance claims in the distressedtownship, including the claims approved under IC 12-2-14-22(before its repeal), IC 12-2-14-23 (before its repeal), or section27 or 28 of this chapter, have been paid, except for thefollowing:
(A) Claims under litigation before the date of the board'sfinding.
(B) Obligations owed to other political subdivisions.
(2) The township has no bonds outstanding that were issued topay for township assistance in the distressed township.
(c) Notwithstanding section 4(2) of this chapter, if a township thathas had the township's distressed status terminated under subsection(b) uses advances from the county from proceeds of bonds issuedunder IC 12-2-1 (before its repeal) or this article to pay townshipassistance claims more than one (1) time in the five (5) yearsfollowing the termination of the township's distressed status, thetownship must have the township's civil and township assistancebudgets reviewed and approved by the county fiscal body in eachyear that a tax is levied against the property in the township to repaythe advances. The decision of the county fiscal body may beappealed 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), andIC 12-20-23-19 (before its repeal), the aggregate principal amount ofany outstanding debt that is incurred to pay township assistanceclaims during the five (5) years following the termination of thetownship's distressed status under subsection (b) and that is in excessof one-tenth percent (0.1%) of the adjusted valued of taxableproperty in the township as determined under IC 36-1-15 is the directgeneral 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 thetownship's maximum permissible ad valorem property tax levyfor township assistance;
(3) the maximum permissible ad valorem property tax levy isinsufficient to ensure the payment within thirty (30) days of allvalid township assistance claims in the township; and
(4) the county adjusted gross income tax or county optionincome tax is in effect in the county as a result of adopting afinancial plan under this chapter;
the county fiscal body shall dedicate from the county adjusted grossincome tax or county option income tax imposed under this chapteran amount of revenue determined by the department to be necessaryto ensure the payment within thirty (30) days of all townshipassistance claims in the township that has been controlled. Thecounty fiscal body shall distribute any income tax revenues dedicatedunder this section before the fiscal body makes any otherdistributions in accordance with this chapter. Notwithstandingsection 45 of this chapter, the county fiscal body may not reduce thecounty option income tax rate below the rate necessary to satisfy therequirements 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 optionincome tax; rescission of tax; termination of tax
Sec. 44. (a) This section applies after the termination of thecontrolled status of all townships located in a county as provided insection 41 of this chapter.
(b) If the county adjusted gross income tax or county optionincome tax is imposed under this chapter, the tax shall be distributedas provided in section 46 of this chapter. If the county fiscal body hasnot dedicated county adjusted gross income tax or county optionincome tax revenue for township assistance under section 41 of thischapter, the county fiscal body may rescind the tax as provided inIC 6-3.5-1.1 or IC 6-3.5-6, whichever applies. If the county fiscalbody has dedicated county adjusted gross income tax or countyoption income tax revenue for township assistance under section 41of this chapter, the county fiscal body may rescind the tax but notuntil after the end of the year following the termination of thecontrolled status of the township.
(c) If:
(1) the county adjusted gross income tax (IC 6-3.5-1.1) or thecounty option income tax (IC 6-3.5-6) was in effect before thecounty adjusted gross income tax or the county option incometax 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 fortownship assistance under section 41 of this chapter;
the county adjusted gross income tax or county option income taximposed under this chapter terminates as of the date the controlledstatus 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 ofthe controlled status of all townships located in a county as providedin section 41 of this chapter and if the county option income tax isimposed under this chapter, the county fiscal body may adopt anordinance to:
(1) grant a credit for homesteads that are eligible for a standarddeduction under IC 6-1.1-12-37 in the county; or
(2) reduce the county option income tax rate for resident countytaxpayers to a rate not less than the greater of:
(A) the minimum rate necessary to satisfy the requirementsof section 43 of this chapter; or
(B) the minimum rate necessary to satisfy the requirementsof sections 43 and 46(2) of this chapter if an ordinance isadopted under subdivision (1).
(b) A county fiscal body may not grant a credit for homesteadsthat exceeds the percentage permitted under IC 6-3.5-6-13 for acounty option income tax imposed under IC 6-3.5-6.
(c) The increase in the homestead credit percentage must beuniform for all homesteads in a county.
(d) In an ordinance that increases the homestead creditpercentage, the county fiscal body may provide for a series ofincreases or decreases to take place for each of a group of succeedingcalendar years.
(e) An ordinance may be adopted under this section after January1 but before June 1 of a calendar year.
(f) An ordinance adopted under this section takes effect January1 of the next calendar year.
(g) An ordinance adopted under this section for a county is notapplicable for a year if on January 1 of that year the county optionincome 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 controlledstatus
Sec. 46. After the termination of the controlled status of alltownships located in a county as provided in section 41 of thischapter, if the county adjusted gross income tax or the county optionincome tax is imposed under this chapter, any revenues from the
county adjusted gross income tax or the county option income taximposed under this chapter shall be distributed in the followingpriority:
(1) To satisfy the requirements of section 43 of this chapter.
(2) If the county option income tax imposed under this chapteris in effect, to replace the amount, if any, of property taxrevenue lost due to the allowance of a homestead credit withinthe county under an ordinance adopted under section 45 of thischapter.
(3) To be used as a certified distribution as provided inIC 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 thetermination of a township's controlled status continue to govern theoperations of the township trustee's office until the rules are modifiedor 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 thecontrol 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 necessaryto levy the maximum permissible ad valorem property tax levy fortownship assistance permitted under IC 6-1.1-18.5. If a distressedtownship fails to take this action, the department shall adjust, in theboard's certificate of levies of governmental entities in the county,the township's proposed levy so that the levy is the maximumpermissible 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 managementcommittee 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 townshipassistance fund is established. The fund shall be administered by thetreasurer of state. The fund shall be used to provide state support todistressed 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 townshipassistance fund
Sec. 52. State support provided from the distressed townshipsupplemental township assistance fund:
(1) is supplemental to other financing for township assistance;
(2) may be used to satisfy township assistance claims incurredduring the period the management committee is in control of thetownship trustee's office; and
(3)