§ 6-1.1-20.3-13 — Petition for termination of distressed status; conditions for termination

Indiana § 6-1.1-20.3-13

• Jurisdiction: Indiana
• Art. 1.1: PROPERTY TAXES
• Ch. 20.3: Distressed Political Subdivisions

Text

(a) If an emergency manager of a
distressed political subdivision files a petition with the board for
termination of the political subdivision's status as a distressed political
subdivision, the board shall conduct a public hearing on the question
of whether to terminate the political subdivision's status as a distressed
political subdivision.
(b) In the case of a political subdivision designated as distressed
under this chapter, the board shall terminate the political subdivision's
status as a distressed political subdivision if the board finds that the
conditions found in section 6.5 of this chapter are no longer applicable
to the political subdivision and all the following conditions are met:
(1) The political subdivision has achieved and maintained
financial solvency for a period of at least two (2) years, including
the following:
(A) Maintaining a structurally balanced budget for at least two
(2) years.
(B) Having no unpaid or past due critical contractual financial
obligations or vendor payments.
(2) The political subdivision has a fiscal plan that maintains
financial solvency for a period of at least five (5) years after the
termination of its distressed status.
(3) The political subdivision meets all other conditions identified
by the board.
(4) The board determines that the political subdivision is
financially stable.
(c) Notwithstanding subsection (b), in the case of a township
designated as distressed under section 6.7 of this chapter, the board
shall terminate the township's status as a distressed political
subdivision if the board finds that the township's township assistance
property tax rate (as defined in section 6.7(a) of this chapter) for the
current calendar year is not more than the result of:
(1) the statewide average township assistance property tax rate (as
determined by the department of local government finance) for
property taxes first due and payable in the preceding year;
multiplied by
(2) twelve (12).
(d) Notwithstanding any other section of this chapter, not later than
ninety (90) days after taking office, a new executive of a distressed
political subdivision may petition the board for suspension of the
political subdivision's distressed status. In the case of a political
subdivision designated as distressed under section 6.5 of this chapter,
the executive must include in its petition a written plan to resolve the
applicable issues described in section 6.5 of this chapter. In the case of
a township designated as distressed under section 6.7 of this chapter,
the executive must include in its petition a written plan to lower the
township's township assistance property tax rate (as defined in section
6.7(a) of this chapter). If the board approves the executive's written
plan, the board may suspend the political subdivision's distressed status
for one hundred eighty (180) days. Suspension under this chapter
terminates automatically upon expiration of the one hundred eighty
(180) day period. The board may consider a petition to terminate the
political subdivision's distressed status during a period of suspension.

Legislative History

As added by P.L.145-2012, SEC.14. Amended by P.L.257-2013, SEC.27; P.L.234-2013, SEC.7; P.L.2-2014, SEC.25; P.L.249-2015, SEC.16; P.L.241-2017, SEC.15; P.L.213-2018(ss), SEC.12.