Bill Text: IN HB1376 | 2012 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: State and local administration.

Spectrum: Bipartisan Bill

Status: (Enrolled - Dead) 2012-03-20 - Signed by the Governor [HB1376 Detail]

Download: Indiana-2012-HB1376-Amended.html

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January 27, 2012

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HOUSE BILL No. 1376

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DIGEST OF HB 1376 (Updated January 25, 2012 12:02 pm - DI 92)

Citations Affected: IC 4-10; IC 34-13; noncode.

Synopsis: State fiscal matters. Provides for an automatic refundable tax credit to Indiana residents when the state has excess reserves of at least $20,000,000. Increases the maximum amount that may be paid for injury or death in a tort claim against a governmental entity or public employee for death or injury occurring as the result of an accident at the state fair from $5,000,0000 to $10,000,000. Provides procedures for the settlement of claims. Permits augmentation of the appropriation for full-day kindergarten. Changes the amount distributed per child.

Effective: Upon passage; January 1, 2012 (retroactive).

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Espich

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    January 17, 2012, read first time and referred to Committee on Rules and Legislative Procedures.
    January 18, 2012, reassigned to Committee on Ways and Means.
    January 26, 2012, amended, reported _ Do Pass.

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January 27, 2012

Second Regular Session 117th General Assembly (2012)

PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts between statutes enacted by the 2011 Regular Session of the General Assembly.

HOUSE BILL No. 1376

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    A BILL FOR AN ACT to amend the Indiana Code concerning state and local administration and to make an appropriation.

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

SOURCE: IC 4-10-22-3; (12)HB1376.1.1. -->     SECTION 1. IC 4-10-22-3, AS ADDED BY P.L.229-2011, SECTION 44, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2012 (RETROACTIVE)]: Sec. 3. (a) Subject to subsection (b), after completing the presentation to the state budget committee described in section 2 of this chapter, the governor shall:
        (1) transfer fifty percent (50%) of any excess reserves to the pension stabilization fund established by IC 5-10.4-2-5 for the purposes of the pension stabilization fund; and
        (2) (1) use fifty percent (50%) of any excess reserves for the purposes of providing an automatic refundable taxpayer refund credit under section 4 of this chapter; and
        (2) transfer the excess reserves not needed for an automatic refundable taxpayer credit under section 4 of this chapter to the pension stabilization fund established by IC 5-10.4-2-5.
    (b) If the excess reserves on June 30 of any year are less than twenty million dollars ($20,000,000), the governor shall carry over the excess reserves to each subsequent year until the total excess

reserves, including any carryover amount, equal at least twenty million dollars ($20,000,000). In the year that total excess reserves equal at least twenty million dollars ($20,000,000), the excess reserves shall be used as provided in subsection (a).

SOURCE: IC 4-10-22-4; (12)HB1376.1.2. -->     SECTION 2. IC 4-10-22-4, AS ADDED BY P.L.229-2011, SECTION 44, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2012 (RETROACTIVE)]: Sec. 4. The following apply if sufficient excess state reserves are available to provide an automatic taxpayer refund to each taxpayer eligible for a refund:
        (1) To qualify for a refund, a taxpayer:
            (A) must have filed an Indiana resident individual adjusted gross income tax return for the preceding two (2) taxable years; and
            (B) must have paid individual adjusted gross income tax to the state for the preceding taxable year.
        Individuals who file a tax return but do not pay any individual adjusted gross income tax to the state are not entitled to a refund.
        (2) The amount of the refund is determined for each qualifying taxpayer on a pro rata basis, based on the qualifying taxpayer's portion of the total individual adjusted gross income tax liability paid by all qualifying taxpayers in the preceding taxable year.
        (3) The refund shall be applied as a credit against adjusted gross income tax liability in the taxpayer's taxable year in which a refund is provided. The credit may not be carried forward.
     (a) An individual is entitled to a refundable tax credit against the individual's adjusted gross income tax liability in a taxable year if:
         (1) the office of management and budget determines that the state possessed excess state reserves on June 30 in the taxpayer's current taxable year of at least twenty million dollars ($20,000,000);
        (2) the individual is an Indiana resident who filed an Indiana resident individual adjusted gross income tax return for the immediately preceding year, not later than the due date for the return, determined after applying any extension granted for the return; and
        (3) the individual continues to be an Indiana resident who files an Indiana resident individual adjusted gross income tax return for the current taxable year not later than the due date for the return, determined after applying any extension granted for the return.
    (b) The refundable tax credit under this section shall be applied

to a taxpayer's adjusted gross income tax liability after applying all other tax credits to which the taxpayer is otherwise eligible. The amount of the refundable tax credit under this section is determined on a per return basis. The refundable tax credit is equal to:
        (1) the credit amount determined under subsection (c) or (d), if the individual files a single Indiana resident individual adjusted gross income tax return for the current taxable year; or
        (2) the result of the credit amount determined under subsection (c) or (d) multiplied by two (2), if the individual files a joint Indiana resident individual adjusted gross income tax return with the individual's spouse for the current taxable year.
    (c) Except as provided in subsection (d), the credit amount is the amount determined under STEP THREE of the following formula:
        STEP ONE: Determine the result of:
            (1) the amount of the state excess reserves determined for June 30 in the taxable year; divided by
            (2) the number of resident individuals filing a single or joint Indiana resident individual adjusted gross income tax return for the immediately preceding year, not later than the due date for the return, determined after applying any extension granted for the return.
        STEP TWO: Round the STEP ONE result to the nearest one dollar ($1).
        STEP THREE: Determine the lesser of:
            (1) the STEP TWO result; or
            (2) fifty dollars ($50).
    (d) This subsection applies only when the result determined in subsection (c), STEP TWO is greater than one hundred dollars ($100). For a state fiscal year subject to this subsection, the credit amount is the amount determined under STEP FIVE of the following formula:
        STEP ONE: Determine the result of:
            (1) the result determined under subsection (c), STEP TWO; minus
            (2) one hundred dollars ($100).
        STEP TWO: Round the STEP ONE result to the nearest one dollar ($1).
        STEP THREE: Determine the result of
            (1) the STEP TWO result; divided by

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            (2) two (2).
        STEP FOUR: Round the STEP THREE result to the nearest one dollar ($1).
        STEP FIVE: Determine the sum of:
            (1) the STEP FOUR result; plus
            (2) fifty dollars ($50).

SOURCE: IC 34-13-3-14; (12)HB1376.1.3. -->     SECTION 3. IC 34-13-3-14 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 14. (a) Except as provided in section 20 of this chapter, the governor may compromise or settle a claim or suit brought against the state or its employees.
     (b) The following definitions apply throughout subsection (c):
        (1) "Eligible person" refers to a person or the estate of a person that properly filed a claim with the state, in the form prescribed by the attorney general, before December 31, 2011, for physical injury or death resulting from an occurrence.
        (2) "Occurrence" refers to one (1) or more acts or omissions by the state or employees of the state in connection with a single event occurring after July 31, 2011, and before September 1, 2011, that resulted in the death of seven (7) or more persons.
    (c) Notwithstanding section 4(a)(2) of this chapter, the attorney general shall attempt to resolve all claims and suits brought against the state or its employees for an occurrence for an amount that, in the aggregate, does not exceed ten million dollars ($10,000,000). Notwithstanding sections 6 and 9 of this chapter, only an eligible person is eligible to receive compensation under this subsection. The attorney general shall attempt to resolve claims or suits for an occurrence as follows:
        (1) The estate of an eligible person whose death resulted from an occurrence shall receive seven hundred thousand dollars ($700,000).
        (2) Except as provided in subdivision (3), each other eligible person who was physically injured as a result of an occurrence shall be compensated for the physical injury in an amount that does not exceed the least of the following:
            (A) The amount of the eligible person's losses.
            (B) The amount claimed by the eligible person in relation to the claim filed before December 31, 2011.
            (C) Seven hundred thousand dollars ($700,000).
        (3) Eligible persons who suffered physical injuries involving permanent paralysis or trauma or requiring major and ongoing long-term care may be compensated under

subdivision (2) in an amount that exceeds the medical expense amounts claimed by the person in relation to the claim according to a formula determined by the attorney general. The formula used by the attorney general for compensating eligible persons must be substantially similar to the formula used by the attorney general for payments made before January 1, 2012, in relation to the occurrence.
To receive a distribution under this subsection for an occurrence, an eligible person must have already released all governmental entities and public employees from any liability for loss resulting from the occurrence. The release must be in a form that is satisfactory to the attorney general. The amount payable after December 31, 2011, shall be reduced by any amount that was paid under this chapter for the death or physical injury before January 1, 2012. If the aggregate losses incurred by all eligible persons exceed ten million dollars ($10,000,000), the attorney general shall make the payments required under subdivision (1) and use the remaining amount available under ten million dollars ($10,000,000) by proportionately reducing the amount distributed to eligible persons under subdivision (2) according to a formula determined by the attorney general.

SOURCE: ; (12)HB1376.1.4. -->     SECTION 4. [EFFECTIVE UPON PASSAGE] (a) The definitions in P.L.229-2011, SECTION 1 apply throughout this SECTION.
    (b) The following definitions apply throughout this SECTION:
        (1) "2012-2013 school year" means the school year (as defined in IC 20-18-2-17) beginning July 1, 2012, and ending June 30, 2013.
        (2) "Charter school" has the meaning set forth in IC 20-24-1-4.
        (3) "Current ADM" has the meaning set forth in IC 20-43-1-10.
        (4) "Eligible pupil" has the meaning set forth in IC 20-43-1-11.
        (5) "School corporation" has the meaning set forth in IC 20-18-2-16.
    (c) Augmentation is allowed for the appropriation in P.L.229-2011, SECTION 9 to the department of education for full-day kindergarten, beginning July 1, 2012, and ending June 30, 2013.
    (d) Notwithstanding P.L.229-2011, SECTION 9, each school corporation and charter school that applies to the department of education for a grant for full-day kindergarten is entitled to receive

a distribution in the 2012-2013 school year from the amount appropriated in P.L.229-2011, SECTION 9 for full-day kindergarten for the state fiscal year beginning July 1, 2012, and ending June 30, 2013, as augmented under this SECTION. The total amount to be distributed to a school corporation or charter school for the 2012-2013 school year equals the result of:
        (1) two thousand four hundred dollars ($2,400); multiplied by
        (2) the number of eligible pupils who are:
            (A) counted in the current ADM of the school corporation in the initial count of ADM in the 2012-2013 school year; and
            (B) enrolled in and attending full-day kindergarten on the count date on which the current ADM is determined.
    (e) A school corporation or charter school that applies for a grant for full-day kindergarten may not charge a fee for enrolling in or attending full-day kindergarten in the school year beginning July 1, 2012, and ending June 30, 2013.
    (f) This SECTION expires July 1, 2013.

SOURCE: ; (12)HB1376.1.5. -->     SECTION 5. An emergency is declared for this act.