IC 12-29-2
    Chapter 2. Community Mental Health Centers

IC 12-29-2-1
Application of chapter
    
Sec. 1. This chapter applies only to the funding of a program ofservices for individuals with a mental illness that is designated as acommunity mental health center by the division of mental health andaddiction in the division's approval of the program.
As added by P.L.2-1992, SEC.23. Amended by P.L.215-2001,SEC.79; P.L.99-2007, SEC.150.

IC 12-29-2-1.2
County financial assistance for community mental health centers;purposes; appropriation
    
Sec. 1.2. (a) The county executive of a county may authorize thefurnishing of financial assistance for the purposes described insubsection (b) to a community mental health center that is located orwill be located:
        (1) in the county;
        (2) anywhere in Indiana, if the community mental health centeris organized to provide services to at least two (2) counties,including the county executive's county; or
        (3) in an adjacent state, if the center is organized to provideservices to Indiana residents, including residents in the countyexecutive's county.
If a community mental health center is organized to serve more thanone (1) county, upon request of the county executive, each countyfiscal body may appropriate money annually from the county'sgeneral fund to provide financial assistance for the communitymental health center.
    (b) Assistance authorized under this section shall be used for thefollowing purposes:
        (1) Constructing a community mental health center.
        (2) Operating a community mental health center.
    (c) The appropriation from a county authorized under subsection(a) may not exceed the product of the amount determined undersection 2(b)(2) of this chapter for that year multiplied by one and fivehundred four thousandths (1.504).
    (d) For purposes of this subsection, "first calendar year" refers tothe first calendar year after 2008 in which the county imposes an advalorem property tax levy for the county general fund to providefinancial assistance under this chapter. If a county did not providefinancial assistance under this chapter in 2008, the county, for afollowing calendar year:
        (1) may propose a financial assistance budget; and
        (2) shall refer its proposed financial assistance budget for thefirst calendar year to the department of local governmentfinance before the tax levy is advertised.
The ad valorem property tax levy to fund the budget for the first

calendar year is subject to review and approval underIC 6-1.1-18.5-10.
As added by P.L.78-2004, SEC.15. Amended by P.L.182-2009(ss),SEC.300.

IC 12-29-2-2
Funding of operation; amount of funding; calculation
    
Sec. 2. (a) A county shall fund the operation of community mentalhealth centers in the amount determined under subsection (b), unlessa lower tax levy amount will be adequate to fulfill the county'sfinancial obligations under this chapter in any of the followingsituations:
        (1) If the total population of the county is served by one (1)center.
        (2) If the total population of the county is served by more thanone (1) center.
        (3) If the partial population of the county is served by one (1)center.
        (4) If the partial population of the county is served by more thanone (1) center.
    (b) The amount of funding under subsection (a) for taxes first dueand payable in a calendar year is the following:
        (1) For 2004, the amount is the amount determined under STEPTHREE of the following formula:
            STEP ONE: Determine the amount that was levied withinthe county to comply with this section from property taxesfirst due and payable in 2002.
            STEP TWO: Multiply the STEP ONE result by the county'sassessed value growth quotient for the ensuing year 2003, asdetermined under IC 6-1.1-18.5-2.
            STEP THREE: Multiply the STEP TWO result by thecounty's assessed value growth quotient for the ensuing year2004, as determined under IC 6-1.1-18.5-2.
        (2) Except as provided in subsection (c), for 2005 and each yearthereafter, the result equal to:
            (A) the amount that was levied in the county to comply withthis section from property taxes first due and payable in thecalendar year immediately preceding the ensuing calendaryear; multiplied by
            (B) the county's assessed value growth quotient for theensuing calendar year, as determined under IC 6-1.1-18.5-2.
            (c) This subsection applies only to property taxes first due andpayable after December 31, 2007. This subsection applies only to acounty for which a county adjusted gross income tax rate is firstimposed or is increased in a particular year under IC 6-3.5-1.1-24 ora county option income tax rate is first imposed or is increased in aparticular year under IC 6-3.5-6-30. Notwithstanding any provisionin this section or any other section of this chapter, for a countysubject to this subsection, the county's maximum property tax levyunder this section to fund the operation of community mental health

centers for the ensuing calendar year is equal to the county'smaximum property tax levy to fund the operation of communitymental health centers for the current calendar year.
    (d) Except as provided in subsection (h), the county shall pay tothe division of mental health and addiction the part of the fundingdetermined under subsection (b) that is appropriated solely forfunding the operations of a community health center. The fundingrequired under this section for operations of a community healthcenter shall be paid by the county to the division of mental health andaddiction. These funds shall be used solely for satisfying thenon-federal share of medical assistance payments to communitymental health centers serving the county for:
        (1) allowable administrative services; and
        (2) community mental health rehabilitation services.
All other funding appropriated for the purposes allowed undersection 1.2(b)(1) of this chapter shall be paid by the county directlyto the community mental health center semiannually at the times thatthe payments are made under subsection (e).
    (e) The county shall appropriate and disburse the funds foroperations semiannually not later than December 1 and June 1 in anamount equal to the amount determined under subsection (b) andrequested in writing by the division of mental health and addiction.The total funding amount paid to the division of mental health andaddiction for a county for each calendar year may not exceed theamount that is calculated in subsection (b) and set forth in writing bythe division of mental health and addiction for the county. Fundspaid to the division of mental health and addiction by the countyshall be submitted by the county in a timely manner after receivingthe written request from the division of mental health and addiction,to ensure current year compliance with the community mental healthrehabilitation program and any administrative requirements of theprogram.
    (f) The division of mental health and addiction shall ensure thatthe non-federal share of funding received from a county under thisprogram is applied only for matching federal funds for the designatedcommunity mental health centers to the extent a center is eligible toreceive county funding under IC 12-21-2-3(a)(5)(E).
    (g) The division of mental health and addiction:
        (1) shall first apply state funding to a community mental healthcenter's non-federal share of funding under this program; and
        (2) may next apply county funding received under IC 12-29-2-2to any remaining non-federal share of funding for thecommunity mental health center.
The division shall distribute any excess state funds that exceed thecommunity mental health rehabilitation services non-federal shareapplied to a community mental health center that is entitled to theexcess state funds.
    (h) The health and hospital corporation of Marion County createdby IC 16-22-8-6 may make payments to the division for the operationof a community mental health center as described in this chapter.As added by P.L.2-1992, SEC.23. Amended by P.L.17-1995, SEC.12;P.L.6-1997, SEC.152; P.L.90-2002, SEC.366; P.L.170-2002,SEC.84; P.L.1-2004, SEC.54 and P.L.23-2004, SEC.56;P.L.78-2004, SEC.16; P.L.224-2007, SEC.102; P.L.123-2008,SEC.3.

IC 12-29-2-3
Total or partial population of county served by one center;maximum appropriation; determination
    
Sec. 3. In situations described in section 2(a)(1) or 2(a)(3) of thischapter, the county's maximum appropriation for part of the totaloperating budget of the center is determined as follows:
        STEP ONE: Divide the total county population by thepopulation of the county residing in the primary service area ofthe community mental health center that is certified by thedivision of mental health and addiction to serve the county.
        STEP TWO: Multiply the amount determined in STEP ONE bythe total operating budget of the center after the operatingbudget of the center is reduced by the following anticipatedamounts:
            (A) Gifts, except bequests.
            (B) Merchandise.
            (C) Fees.
            (D) Federal grants for direct service, except research anddemonstration grants.
As added by P.L.2-1992, SEC.23. Amended by P.L.79-2002, SEC.2.

IC 12-29-2-4
Total or partial population of county served by more than onecenter; maximum appropriation; allotment to each center;determination
    
Sec. 4. (a) Except as provided in subsection (b), in situationsdescribed in section 2(a)(2) or 2(a)(4) of this chapter, the county'smaximum appropriation for part of the total operating budget of thecenters is determined in the same manner as in situations describedin section 2(a)(1) or 2(a)(3) of this chapter.
    (b) The amount derived from the calculation under subsection (a)represents the combined maximum appropriation to all centersserving the particular county. Except for a county containing aconsolidated city, the allotment to each center shall be determined inthe following manner:
        (1) To determine the allotment to each center serving the totalpopulation of the county under the situation described in section2(a)(2) of this chapter, the amount actually appropriated shallbe apportioned according to the proportion of the county'spopulation residing in the primary service area of each center,which is certified by the division of mental health and addictionto serve the county, to the total population of the county.
        (2) To determine the allotment to each center in the situationdescribed in section 2(a)(4) of this chapter, the amount actually

appropriated shall be apportioned according to the proportionof the county's population residing in the primary service areaof each center, which is certified by the division of mentalhealth and addiction to serve the county, to the population ofthe county served by all centers.
As added by P.L.2-1992, SEC.23. Amended by P.L.79-2002, SEC.3.

IC 12-29-2-5
Maximum appropriation determined as county's absoluteproportional share of each center's budget; calculations
    
Sec. 5. (a) The maximum appropriation determined under section3 or 4 of this chapter represents the county's absolute proportionalshare of each center's total operating budget.
    (b) If the proportional share is less than the amount of propertytaxes raised under the tax rate required under section 2 of thischapter, the county shall appropriate only the maximumappropriation amount.
    (c) If the proportional share is more than the amount of propertytaxes raised under the tax rate required under section 2 of thischapter, the county:
        (1) shall appropriate that amount; and
        (2) may appropriate an additional amount up to an amount thatwould equal the amount of property taxes raised by a tax rate ofthree and one-third cents ($0.03 1/3).
As added by P.L.2-1992, SEC.23. Amended by P.L.40-1994, SEC.63;P.L.1-2004, SEC.55 and P.L.23-2004, SEC.57.

IC 12-29-2-6
Repealed
    
(Repealed by P.L.78-2004, SEC.25.)

IC 12-29-2-7
Appropriation
    
Sec. 7. The county fiscal body shall appropriate and approve themoney necessary to carry out this chapter.
As added by P.L.2-1992, SEC.23.

IC 12-29-2-8
Repealed
    
(Repealed by P.L.37-1998, SEC.1.)

IC 12-29-2-9
Repealed
    
(Repealed by P.L.37-1998, SEC.1.)

IC 12-29-2-10
Repealed
    
(Repealed by P.L.37-1998, SEC.1.)

IC 12-29-2-11 Repealed
    
(Repealed by P.L.37-1998, SEC.1.)

IC 12-29-2-12
Repealed
    
(Repealed by P.L.37-1998, SEC.1.)

IC 12-29-2-13
Lake County; additional funding of centers; property tax levyincrease; requirements
    
Sec. 13. (a) This section applies to Lake County.
    (b) In addition to any other appropriation under this article, thecounty annually may fund each center serving the county from thecounty's general fund in an amount not exceeding the following:
        (1) For 2004, the product of the amount determined undersection 2(b)(1) of this chapter multiplied by seven hundredfifty-two thousandths (0.752).
        (2) For 2005 and each year thereafter, the product of the amountdetermined under section 2(b)(2) of this chapter for that yearmultiplied by seven hundred fifty-two thousandths (0.752).
    (c) The receipts from the tax levied under this section shall beused for the leasing, purchasing, constructing, or operating ofcommunity residential facilities for individuals with a mental illness(as defined in IC 12-7-2-167).
    (d) Money appropriated under this section must be:
        (1) budgeted under IC 6-1.1-17; and
        (2) included in the center's budget submitted to the division ofmental health and addiction.
    (e) Permission for a levy increase in excess of the levy limitationsmay be ordered under IC 6-1.1-18.5-15 only if the levy increase isapproved by the division of mental health and addiction for acommunity mental health center.
As added by P.L.2-1992, SEC.23. Amended by P.L.40-1994, SEC.64;P.L.6-1995, SEC.36; P.L.6-1997, SEC.153; P.L.215-2001, SEC.80;P.L.78-2004, SEC.17; P.L.99-2007, SEC.151.

IC 12-29-2-14
Operation by uncertified entity; investigations; penalties
    
Sec. 14. (a) An entity may not:
        (1) hold itself out to be a community mental health center; or
        (2) use the term "community mental health center";
unless the entity is certified by the division of mental health andaddiction.
    (b) The division of mental health and addiction shall investigatea report that an entity is operating as a community mental healthcenter without the approval of the division of mental health andaddiction and report the division's findings to the attorney general.
    (c) Upon receiving a report made under subsection (b), theattorney general may do the following:
        (1) Seek the issuance of a search warrant to assist in the

investigation.
        (2) File an action for injunctive relief to stop the operation ofthe entity that is the subject of the report if there is reasonablecause to believe that the entity is operating without the requiredapproval of the division of mental health and addiction.
        (3) File an action for injunctive relief to stop the entity that isthe subject of the report from using the term "communitymental health center".
        (4) Seek in a civil action a civil penalty of not more than onehundred dollars ($100) a day for each day an entity is operatingwithout the required approval of the division of mental healthand addiction.
    (d) An opportunity for an informal meeting with the division ofmental health and addiction must be provided after the injunctiverelief is ordered.
    (e) The civil penalties collected under this section must bedeposited in the mental health centers fund (IC 6-7-1-32.1).
As added by P.L.111-1997, SEC.6. Amended by P.L.215-2001,SEC.81.

IC 12-29-2-15
County fiscal body member of the board
    
Sec. 15. (a) A community mental health center that:
        (1) is certified by the division of mental health and addiction;and
        (2) is not administered by a hospital licensed under IC 16-21-2;
shall include a member of a county fiscal body, or a county fiscalbody's designee, on the center's governing board. The member shallbe selected by the county fiscal body of the county where thecommunity mental health center maintains its corporate mailingaddress. The county fiscal body representative must reside in one (1)of the counties in the community mental health center's primaryservice area.
    (b) A community mental health center that:
        (1) is certified by the division of mental health and addiction;and
        (2) is administered by a hospital licensed under IC 16-21-2;
shall include a member of a county fiscal body, or a county fiscalbody's designee, on the center's advisory board. The member shall beselected by the county fiscal body of the county where thecommunity mental health center maintains its corporate mailingaddress. The county fiscal body representative must reside in one (1)of the counties in the community mental health center's primaryservice area.
As added by P.L.79-2002, SEC.4. Amended by P.L.123-2008, SEC.4.

IC 12-29-2-16
Annual report to county fiscal body
    
Sec. 16. A community mental health center that is certified by thedivision of mental health and addiction shall provide an annual report

to the fiscal body of each county located in the community mentalhealth center's primary service area.
As added by P.L.79-2002, SEC.5. Amended by P.L.123-2008, SEC.5.

IC 12-29-2-17
Issuing county bonds for construction, equipment, or improvement
    
Sec. 17. (a) Bonds of a county may be issued for the constructionand equipment or the improvement of a building to house acommunity mental health center.
    (b) If services are provided to at least two (2) counties:
        (1) bonds of the counties involved may be issued to pay theproportionate cost of the project in the proportion determinedand agreed upon by the fiscal bodies of the counties involved;or
        (2) bonds of one (1) county may be issued and the remainingcounties may annually appropriate to the county issuing thebonds amounts to be applied to the payment of the bonds andinterest on the bonds in the proportion agreed upon by thecounty fiscal bodies of the counties involved.
As added by P.L.78-2004, SEC.18.

IC 12-29-2-18
Application of all general statutes relating to issuance of bonds
    
Sec. 18. All general Indiana statutes relating to the followingapply to the issuance of county bonds under this chapter:
        (1) The filing of a petition requesting the issuance of bonds.
        (2) The giving of notice of the following:
            (A) The filing of the petition requesting the issuance of thebonds.
            (B) The determination to issue bonds.
            (C) A hearing on the appropriation of the proceeds of thebonds.
        (3) The right of taxpayers to appear and be heard on theproposed appropriation.
        (4) The approval of the appropriation by the department of localgovernment finance.
        (5) The right of:
            (A) taxpayers and voters to remonstrate against the issuanceof bonds in the case of a proposed bond issue described byIC 6-1.1-20-3.1(a); or
            (B) voters to vote on the issuance of bonds in the case of aproposed bond issue described by IC 6-1.1-20-3.5(a).
As added by P.L.78-2004, SEC.19. Amended by P.L.219-2007,SEC.97; P.L.146-2008, SEC.420.

IC 12-29-2-19
County property of building if bond issued; nonapplication of taxlimitations
    
Sec. 19. If bonds are issued under this chapter:
        (1) the building that is constructed, equipped, or improved with

proceeds of the bonds is:
            (A) the property of the county issuing the bonds; or
            (B) the joint property of the counties involved if the bondsare issued by at least two (2) counties; and
        (2) the tax limitations in this chapter do not apply to the levy oftaxes to pay the bonds and the interest on the bonds.
As added by P.L.78-2004, SEC.20.

IC 12-29-2-20
Certification by county auditor; county payments; certification offederal financial participation eligibility
    
Sec. 20. (a) The county payment for operations of a communitymental health center shall be paid by the county treasurer to thedivision as described in section 2 of this chapter.
    (b) To the extent that money is appropriated by a county forpurposes allowed under section 1.2(b)(1) of this chapter or is nolonger required or requested for programs under section 2 of thischapter, on the first Monday in October, the county auditor shallcertify to:
        (1) the division of mental health and addiction, for a communitymental health center; and
        (2) the president of the board of directors of each communitymental health center;
the amount of money that will be provided to the community mentalhealth center under this chapter.
    (c) The county payment to the community mental health centershall be paid by the county treasurer to the treasurer of eachcommunity mental health center's board of directors in the followingmanner:
        (1) One-half (1/2) of the county payment to the communitymental health center shall be made on the second Monday inJuly.
        (2) One-half (1/2) of the county payment to the communitymental health center shall be made on the second Monday inDecember.
    (d) A county making a payment under this section or from othercounty sources to a community mental health center that qualifies asa community mental health center disproportionate share providerunder IC 12-15-16-1 shall certify that the payment representsexpenditures eligible for financial participation under 42 U.S.C.1396b(w)(6)(A) and 42 CFR 433.51. The office shall assist a countyin making this certification.
    (e) Payments by the county fiscal body:
        (1) must be in the amounts:
            (A) determined by sections 2 through 5 of this chapter; and
            (B) authorized by sections 1.2 and 13 of this chapter; and
        (2) are in place of grants from agencies supported within thecounty solely by county tax money.
As added by P.L.78-2004, SEC.21. Amended by P.L.123-2008,SEC.6.