Indiana 2024 Regular Session

Indiana Senate Bill SB0032 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2	Introduced Version
3	3	SENATE BILL No. 32
4	4	_____
5	5	DIGEST OF INTRODUCED BILL
6	6	Citations Affected: IC 6-1.1; IC 6-6-5-10.5; IC 36-3-6-9; IC 36-12.
7	7	Synopsis: Tax and fiscal control over libraries. Eliminates the
8	8	authority of public libraries to impose an ad valorem property tax as a
9	9	"taxing unit". Requires a public library to prepare and submit an annual
10	10	budget in the same manner as other departments of county or municipal
11	11	government. Requires the fiscal body of a county or municipality in
12	12	which the territory of the public library is located to provide the
13	13	revenues necessary for the operation and maintenance of the public
14	14	library by a special tax levy, a specific appropriation, or both. Provides
15	15	that a special tax levy for public library purposes is included in the
16	16	calculation of the maximum permissible property tax levy for the
17	17	county or municipality. Prohibits public libraries from providing a
18	18	function or service that is not a core public function of the library,
19	19	unless the specific function or service is included as a line item request
20	20	in the public library's budget and is approved and funded by the county
21	21	or municipality to which the budget proposal is submitted. Defines
22	22	"core public function" for purposes of the statute.
23	23	Effective: July 1, 2024.
24	24	Tomes
25	25	January 8, 2024, read first time and referred to Committee on Tax and Fiscal Policy.
26	26	2024 IN 32—LS 6170/DI 120 Introduced
27	27	Second Regular Session of the 123rd General Assembly (2024)
28	28	PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
29	29	Constitution) is being amended, the text of the existing provision will appear in this style type,
30	30	additions will appear in this style type, and deletions will appear in this style type.
31	31	Additions: Whenever a new statutory provision is being enacted (or a new constitutional
32	32	provision adopted), the text of the new provision will appear in this style type. Also, the
33	33	word NEW will appear in that style type in the introductory clause of each SECTION that adds
34	34	a new provision to the Indiana Code or the Indiana Constitution.
35	35	Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
36	36	between statutes enacted by the 2023 Regular Session of the General Assembly.
37	37	SENATE BILL No. 32
38	38	A BILL FOR AN ACT to amend the Indiana Code concerning
39	39	taxation.
40	40	Be it enacted by the General Assembly of the State of Indiana:
41	41	1 SECTION 1. IC 6-1.1-1-21 IS AMENDED TO READ AS
42	42	2 FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 21. "Taxing unit"
43	43	3 means an entity which has the power to impose ad valorem property
44	44	4 taxes. Beginning after December 31, 2024, the term does not
45	45	5 include a public library.
46	46	6 SECTION 2. IC 6-1.1-17-20, AS AMENDED BY P.L.257-2013,
47	47	7 SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
48	48	8 JULY 1, 2024]: Sec. 20. (a) This section applies to each governing
49	49	9 body of a taxing unit that is not comprised of a majority of officials
50	50	10 who are elected to serve on the governing body. For purposes of this
51	51	11 section, an individual who qualifies to be appointed to a governing
52	52	12 body or serves on a governing body because of the individual's status
53	53	13 as an elected official of another taxing unit shall be treated as an
54	54	14 official who was not elected to serve on the governing body.
55	55	15 (b) As used in this section, "taxing unit" has the meaning set forth
56	56	16 in IC 6-1.1-1-21, except that the term does not include a public library
57	57	17 or an entity whose tax levies are subject to review and modification by
58	58	2024 IN 32—LS 6170/DI 120 2
59	59	1 a city-county legislative body under IC 36-3-6-9.
60	60	2 (c) If:
61	61	3 (1) the assessed valuation of a taxing unit is entirely contained
62	62	4 within a city or town; or
63	63	5 (2) the assessed valuation of a taxing unit is not entirely contained
64	64	6 within a city or town but:
65	65	7 (A) the taxing unit was originally established by the city or
66	66	8 town; or
67	67	9 (B) the majority of the individuals serving on the governing
68	68	10 body of the taxing unit are appointed by the city or town;
69	69	11 the governing body shall submit its proposed budget and property tax
70	70	12 levy to the city or town fiscal body. The proposed budget and levy shall
71	71	13 be submitted to the city or town fiscal body in the manner prescribed
72	72	14 by the department of local government finance before September 2 of
73	73	15 a year.
74	74	16 (d) If subsection (c) does not apply, the governing body of the taxing
75	75	17 unit shall submit its proposed budget and property tax levy to the
76	76	18 county fiscal body in the county where the taxing unit has the most
77	77	19 assessed valuation. The proposed budget and levy shall be submitted
78	78	20 to the county fiscal body in the manner prescribed by the department
79	79	21 of local government finance before September 2 of a year.
80	80	22 (e) The fiscal body of the city, town, or county (whichever applies)
81	81	23 shall review each budget and proposed tax levy and adopt a final
82	82	24 budget and tax levy for the taxing unit. The fiscal body may reduce or
83	83	25 modify but not increase the proposed budget or tax levy.
84	84	26 (f) If a taxing unit fails to file the information required in subsection
85	85	27 (c) or (d), whichever applies, with the appropriate fiscal body by the
86	86	28 time prescribed by this section, the most recent annual appropriations
87	87	29 and annual tax levy of that taxing unit are continued for the ensuing
88	88	30 budget year.
89	89	31 (g) If the appropriate fiscal body fails to complete the requirements
90	90	32 of subsection (e) before the adoption deadline in section 5 of this
91	91	33 chapter for any taxing unit subject to this section, the most recent
92	92	34 annual appropriations and annual tax levy of the city, town, or county,
93	93	35 whichever applies, are continued for the ensuing budget year.
94	94	36 SECTION 3. IC 6-1.1-17-20.3 IS REPEALED [EFFECTIVE JULY
95	95	37 1, 2024]. Sec. 20.3. (a) Except as provided in section 20.4 of this
96	96	38 chapter, this section applies only to the governing body of a public
97	97	39 library that:
98	98	40 (1) is not comprised of a majority of officials who are elected to
99	99	41 serve on the governing body; and
100	100	42 (2) has a percentage increase in the proposed budget for the
101	101	2024 IN 32—LS 6170/DI 120 3
102	102	1 taxing unit for the ensuing calendar year that is more than the
103	103	2 result of:
104	104	3 (A) the maximum levy growth quotient determined under
105	105	4 IC 6-1.1-18.5-2 for the ensuing calendar year, rounded to the
106	106	5 nearest thousandth (0.001); minus
107	107	6 (B) one (1).
108	108	7 For purposes of this section, an individual who qualifies to be
109	109	8 appointed to a governing body or serves on a governing body because
110	110	9 of the individual's status as an elected official of another taxing unit
111	111	10 shall be treated as an official who was not elected to serve on the
112	112	11 governing body.
113	113	12 (b) This section does not apply to an entity whose tax levies are
114	114	13 subject to review and modification by a city-county legislative body
115	115	14 under IC 36-3-6-9.
116	116	15 (c) If:
117	117	16 (1) the assessed valuation of a public library's territory is entirely
118	118	17 contained within a city or town; or
119	119	18 (2) the assessed valuation of a public library's territory is not
120	120	19 entirely contained within a city or town but more than fifty
121	121	20 percent (50%) of the assessed valuation of the public library's
122	122	21 territory is contained within the city or town;
123	123	22 the governing body shall submit its proposed budget and property tax
124	124	23 levy to the city or town fiscal body in the manner prescribed by the
125	125	24 department of local government finance before September 2 of a year.
126	126	25 However, the governing body shall submit its proposed budget and
127	127	26 property tax levy to the county fiscal body in the manner provided in
128	128	27 subsection (d), rather than to the city or town fiscal body, if more than
129	129	28 fifty percent (50%) of the parcels of real property within the
130	130	29 jurisdiction of the public library are located outside the city or town.
131	131	30 (d) If subsection (c) does not apply or the public library's territory
132	132	31 covers more than one (1) county, the governing body of the public
133	133	32 library shall submit its proposed budget and property tax levy to the
134	134	33 county fiscal body in the county where the public library has the most
135	135	34 assessed valuation. The proposed budget and levy shall be submitted
136	136	35 to the county fiscal body in the manner prescribed by the department
137	137	36 of local government finance before September 2 of a year.
138	138	37 (e) The fiscal body of the city, town, or county (whichever applies)
139	139	38 shall review each budget and proposed tax levy and adopt a final
140	140	39 budget and tax levy for the public library. The fiscal body may reduce
141	141	40 or modify but not increase the proposed budget or tax levy.
142	142	41 (f) If a public library fails to file the information required in
143	143	42 subsection (c) or (d), whichever applies, with the appropriate fiscal
144	144	2024 IN 32—LS 6170/DI 120 4
145	145	1 body by the time prescribed by this section, the most recent annual
146	146	2 appropriations and annual tax levy of that public library are continued
147	147	3 for the ensuing budget year.
148	148	4 (g) If the appropriate fiscal body fails to complete the requirements
149	149	5 of subsection (e) before the adoption deadline in section 5 of this
150	150	6 chapter for any public library subject to this section, the most recent
151	151	7 annual appropriations and annual tax levy of the city, town, or county,
152	152	8 whichever applies, are continued for the ensuing budget year.
153	153	9 SECTION 4. IC 6-1.1-17-20.4 IS REPEALED [EFFECTIVE JULY
154	154	10 1, 2024]. Sec. 20.4. (a) This section applies only if on December 31, as
155	155	11 reported in the public library's annual report under IC 5-11-1-4, the
156	156	12 cash balance of all funds of the public library derived from tax revenue
157	157	13 is greater than one hundred fifty percent (150%) of the public library's
158	158	14 certified budget for the ensuing year.
159	159	15 (b) If section 20.3(a)(2) of this chapter does not apply, the fiscal
160	160	16 body of a city, town, or county may adopt a resolution to require the
161	161	17 public library to submit its proposed budget and property tax levy to the
162	162	18 city, town, or county fiscal body as set forth in section 20.3(c) or
163	163	19 20.3(d) of this chapter (whichever is applicable) for binding review and
164	164	20 approval as set forth under section 20.3 of this chapter. However, the
165	165	21 fiscal body of the city, town, or county may not reduce a public library's
166	166	22 proposed budget or tax levy in a budget year under this section by more
167	167	23 than ten percent (10%) of the public library's operating levy in the
168	168	24 immediately preceding budget year.
169	169	25 (c) A resolution may be adopted under this section not later than
170	170	26 July 1. A resolution adopted under this section remains in full force and
171	171	27 effect until the December 31 cash balance of all funds of the public
172	172	28 library derived from tax revenue, as reported in the public library's
173	173	29 annual report under IC 5-11-1-4, no longer exceed one hundred fifty
174	174	30 percent (150%) of the public library's certified budget for the ensuing
175	175	31 year.
176	176	32 (d) Before a fiscal body may adopt a resolution under this section,
177	177	33 the fiscal body must hold a public hearing on the proposed resolution
178	178	34 and provide the public with notice of the time and place where the
179	179	35 public hearing will be held. The notice required by this subsection must
180	180	36 be given in accordance with IC 5-3-1 and include the proposed
181	181	37 resolution. In addition to the notice required by this subsection, the
182	182	38 fiscal body shall also provide a copy of the notice to all taxing units in
183	183	39 the city, town, or county at least thirty (30) days before the public
184	184	40 hearing.
185	185	41 (e) A resolution adopted by a fiscal body under this section shall be
186	186	42 submitted to:
187	187	2024 IN 32—LS 6170/DI 120 5
188	188	1 (1) the department of local government finance; and
189	189	2 (2) the public library;
190	190	3 not later than five (5) days after the date the resolution is adopted.
191	191	4 SECTION 5. IC 6-1.1-17-20.5, AS AMENDED BY P.L.113-2010,
192	192	5 SECTION 30, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
193	193	6 JULY 1, 2024]: Sec. 20.5. (a) This section applies to the governing
194	194	7 body of a taxing unit unless a majority of the governing body is
195	195	8 comprised of officials who are elected to serve on the governing body.
196	196	9 For purposes of this section, an individual who qualifies to be
197	197	10 appointed to a governing body or serves on a governing body because
198	198	11 of the individual's status as an elected official of another taxing unit
199	199	12 shall be treated as an official who was not elected to serve on the
200	200	13 governing body.
201	201	14 (b) As used in this section, "taxing unit" has the meaning set forth
202	202	15 in IC 6-1.1-1-21, except that the term does not include:
203	203	16 (1) a school corporation; or
204	204	17 (2) an entity whose tax levies are subject to review and
205	205	18 modification by a city-county legislative body under IC 36-3-6-9.
206	206	19 (c) If:
207	207	20 (1) the assessed valuation of a taxing unit is entirely contained
208	208	21 within a city or town; or
209	209	22 (2) the assessed valuation of a taxing unit is not entirely contained
210	210	23 within a city or town but the taxing unit was originally established
211	211	24 by the city or town;
212	212	25 the governing body of the taxing unit may not issue bonds or enter into
213	213	26 a lease payable in whole or in part from property taxes unless it obtains
214	214	27 the approval of the city or town fiscal body.
215	215	28 (d) However, in the case of a public library that is subject to this
216	216	29 section and is described in subsection (c), the public library may not
217	217	30 issue bonds or enter into a lease payable in whole or in part from
218	218	31 property taxes unless it obtains the approval of the county fiscal body,
219	219	32 rather than the city or town fiscal body, if more than fifty percent (50%)
220	220	33 of the parcels of real property within the jurisdiction of the public
221	221	34 library are located outside the city or town. The requirement that the
222	222	35 public library must obtain the approval of the county fiscal body (rather
223	223	36 than the city or town fiscal body) if more than fifty percent (50%) of
224	224	37 the parcels of real property within the jurisdiction of the public library
225	225	38 are located outside the city or town does not apply to the issuance of
226	226	39 bonds or the execution of a lease:
227	227	40 (1) for which a decision or preliminary determination was made
228	228	41 under IC 6-1.1-20 before December 31, 2010; or
229	229	42 (2) that is approved by the city or town fiscal body or the county
230	230	2024 IN 32—LS 6170/DI 120 6
231	231	1 fiscal body before December 31, 2010.
232	232	2 (e) (d) This subsection applies to a taxing unit not described in
233	233	3 subsection (c). or (d). The governing body of the taxing unit may not
234	234	4 issue bonds or enter into a lease payable in whole or in part from
235	235	5 property taxes unless it obtains the approval of the county fiscal body
236	236	6 in the county where the taxing unit has the most net assessed valuation.
237	237	7 SECTION 6. IC 6-1.1-17-20.6 IS REPEALED [EFFECTIVE JULY
238	238	8 1, 2024]. Sec. 20.6. (a) Each public library shall identify the applicable
239	239	9 city, town, or county fiscal body that receives a public library's
240	240	10 proposed budget as provided in section 20.3(c) or 20.3(d) of this
241	241	11 chapter.
242	242	12 (b) Not later than October 1, 2020, a public library shall report the
243	243	13 applicable city, town, or county fiscal body identified under subsection
244	244	14 (a) to the Indiana state library. The report submitted to the state library
245	245	15 must contain:
246	246	16 (1) the name of the public library;
247	247	17 (2) the appropriate fiscal body of a city, town, or county to review
248	248	18 a library budget under section 20.3(c) or 20.3(d) of this chapter;
249	249	19 and
250	250	20 (3) after adoption by the respective board, the signatures of the
251	251	21 public library board president and the appropriate fiscal body
252	252	22 president.
253	253	23 The Indiana state library shall provide the information submitted to the
254	254	24 Indiana state library under this subsection to the department of local
255	255	25 government finance by not later than November 1, 2020.
256	256	26 (c) If a fiscal body, other than the fiscal body identified by the
257	257	27 public library under subsection (a), objects to the public library's
258	258	28 determination under subsection (a), the objecting fiscal body may
259	259	29 submit a formal objection to:
260	260	30 (1) the Indiana state library;
261	261	31 (2) the public library; and
262	262	32 (3) the fiscal body identified under subsection (a) by the public
263	263	33 library.
264	264	34 (d) If a public library:
265	265	35 (1) is unable to identify the applicable fiscal body under
266	266	36 subsection (a);
267	267	37 (2) does not complete the reporting requirements established in
268	268	38 subsection (b); or
269	269	39 (3) has a formal objection filed under subsection (c) against the
270	270	40 public library's fiscal body designation under subsection (a);
271	271	41 the public library shall file an original action seeking a declaratory
272	272	42 judgment in a court with jurisdiction to identify the appropriate fiscal
273	273	2024 IN 32—LS 6170/DI 120 7
274	274	1 body. The public library shall file a copy of the declaratory judgment
275	275	2 with the Indiana state library within thirty (30) days of the court's entry
276	276	3 of judgment.
277	277	4 (e) The Indiana state library shall provide the information submitted
278	278	5 to the Indiana state library under subsection (b) to the department of
279	279	6 local government finance by not later than November 1, 2020.
280	280	7 (f) If there is a change in the territory of the public library:
281	281	8 (1) the public library shall submit a report under subsection (b) to
282	282	9 the Indiana state library not later than October 1; and
283	283	10 (2) the Indiana state library shall report the information under
284	284	11 subsection (b) to the department of local government finance not
285	285	12 later than November 1;
286	286	13 in the year the change in territory becomes effective. Subsections (c)
287	287	14 and (d) apply to the public library and to any fiscal body that objects to
288	288	15 the public library's designation under subsection (a).
289	289	16 SECTION 7. IC 6-1.1-18-5, AS AMENDED BY P.L.38-2021,
290	290	17 SECTION 30, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
291	291	18 JULY 1, 2024]: Sec. 5. (a) If the proper officers of a political
292	292	19 subdivision desire to appropriate more money for a particular year than
293	293	20 the amount prescribed in the budget for that year as finally determined
294	294	21 under this article, they shall give notice of their proposed additional
295	295	22 appropriation. The notice shall state the time and place at which a
296	296	23 public hearing will be held on the proposal. The notice shall be given
297	297	24 once in accordance with IC 5-3-1-2(b).
298	298	25 (b) If the additional appropriation by the political subdivision is
299	299	26 made from a fund for which the budget, rate, or levy is certified by the
300	300	27 department of local government finance under IC 6-1.1-17-16, the
301	301	28 political subdivision must report the additional appropriation to the
302	302	29 department of local government finance in the manner prescribed by
303	303	30 the department of local government finance. If the additional
304	304	31 appropriation is made from a fund described under this subsection,
305	305	32 subsections (f), (g), (h), and (i) apply to the political subdivision.
306	306	33 (c) However, if the additional appropriation is not made from a fund
307	307	34 described under subsection (b), subsections (f), (g), (h), and (i) do not
308	308	35 apply to the political subdivision. Subsections (f), (g), (h), and (i) do
309	309	36 not apply to an additional appropriation made from the cumulative
310	310	37 bridge fund if the appropriation meets the requirements under
311	311	38 IC 8-16-3-3(c).
312	312	39 (d) A political subdivision may make an additional appropriation
313	313	40 without approval of the department of local government finance if the
314	314	41 additional appropriation is made from a fund that is not described
315	315	42 under subsection (b). However, the fiscal officer of the political
316	316	2024 IN 32—LS 6170/DI 120 8
317	317	1 subdivision shall report the additional appropriation to the department
318	318	2 of local government finance.
319	319	3 (e) Subject to subsections subsection (j), and (k), after the public
320	320	4 hearing, the proper officers of the political subdivision shall file a
321	321	5 certified copy of their final proposal and any other relevant information
322	322	6 to the department of local government finance not later than fifteen
323	323	7 (15) days after the additional appropriation is adopted by the
324	324	8 appropriate fiscal body. If the additional appropriation is not submitted
325	325	9 to the department of local government finance within fifteen (15) days
326	326	10 after adoption, the department of local government finance may require
327	327	11 the political subdivision to conduct a readoption hearing.
328	328	12 (f) When the department of local government finance receives a
329	329	13 certified copy of a proposal for an additional appropriation under
330	330	14 subsection (e), the department shall determine whether sufficient funds
331	331	15 are available or will be available for the proposal. The determination
332	332	16 shall be made in writing and sent to the political subdivision not more
333	333	17 than fifteen (15) days after the department of local government finance
334	334	18 receives the proposal.
335	335	19 (g) In making the determination under subsection (f), the
336	336	20 department of local government finance shall limit the amount of the
337	337	21 additional appropriation to revenues available, or to be made available,
338	338	22 which have not been previously appropriated.
339	339	23 (h) If the department of local government finance disapproves an
340	340	24 additional appropriation under subsection (f), the department shall
341	341	25 specify the reason for its disapproval on the determination sent to the
342	342	26 political subdivision.
343	343	27 (i) A political subdivision may request a reconsideration of a
344	344	28 determination of the department of local government finance under this
345	345	29 section by filing a written request for reconsideration. A request for
346	346	30 reconsideration must:
347	347	31 (1) be filed with the department of local government finance
348	348	32 within fifteen (15) days of the receipt of the determination by the
349	349	33 political subdivision; and
350	350	34 (2) state with reasonable specificity the reason for the request.
351	351	35 The department of local government finance must act on a request for
352	352	36 reconsideration within fifteen (15) days of receiving the request.
353	353	37 (j) This subsection applies to an additional appropriation by a
354	354	38 political subdivision that must have the political subdivision's annual
355	355	39 appropriations and annual tax levy adopted by a city, town, or county
356	356	40 fiscal body under IC 6-1.1-17-20 or IC 36-1-23 or by a legislative or
357	357	41 fiscal body under IC 36-3-6-9. The fiscal or legislative body of the city,
358	358	42 town, or county that adopted the political subdivision's annual
359	359	2024 IN 32—LS 6170/DI 120 9
360	360	1 appropriation and annual tax levy must adopt the additional
361	361	2 appropriation by ordinance before the department of local government
362	362	3 finance may approve the additional appropriation.
363	363	4 (k) This subsection applies to a public library that is not required to
364	364	5 submit the public library's budgets, tax rates, and tax levies for binding
365	365	6 review and approval under IC 6-1.1-17-20 or IC 6-1.1-17-20.4. If a
366	366	7 public library subject to this subsection proposes to make an additional
367	367	8 appropriation for a year, and the additional appropriation would result
368	368	9 in the budget for the library for that year increasing (as compared to the
369	369	10 previous year) by a percentage that is greater than the result of the
370	370	11 maximum levy growth quotient determined under IC 6-1.1-18.5-2 for
371	371	12 the calendar year minus one (1), the additional appropriation must first
372	372	13 be approved by the city, town, or county fiscal body described in
373	373	14 IC 6-1.1-17-20.3(c) or IC 6-1.1-17-20.3(d), as appropriate.
374	374	15 (l) (k) This subsection applies to an appropriation for which the
375	375	16 underlying purpose is a bond issue. The political subdivision shall
376	376	17 include the appropriation for the bond proceeds in the budget of the
377	377	18 political subdivision for the ensuing year adopted under IC 6-1.1-17.
378	378	19 If the political subdivision does not include the appropriation for the
379	379	20 bond proceeds as required by this subsection, the political subdivision
380	380	21 shall comply with the requirements of this section in the year in which
381	381	22 the bond proceeds are received, but may not take an action pursuant to
382	382	23 this section in a year before the year in which the bond proceeds are
383	383	24 received.
384	384	25 SECTION 8. IC 6-6-5-10.5 IS AMENDED TO READ AS
385	385	26 FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 10.5. The county
386	386	27 auditor shall, not later than August first of each year, furnish to the
387	387	28 proper officer of each municipal corporation an estimate of the
388	388	29 amounts to be distributed to the taxing units under this chapter during
389	389	30 the next calendar year and the budget of each such municipal
390	390	31 corporation shall show the estimated amounts to be received for each
391	391	32 fund for which a property tax is proposed to be levied. The term
392	392	33 "municipal corporation" shall mean any county, city, town, township,
393	393	34 school corporation, public library or other taxing district.
394	394	35 SECTION 9. IC 36-3-6-9, AS AMENDED BY P.L.137-2012,
395	395	36 SECTION 118, IS AMENDED TO READ AS FOLLOWS
396	396	37 [EFFECTIVE JULY 1, 2024]: Sec. 9. (a) Except as provided in
397	397	38 subsection (d), the city-county legislative body shall review the
398	398	39 proposed operating and maintenance budgets and tax levies and adopt
399	399	40 final operating and maintenance budgets and tax levies for each of the
400	400	41 following entities in the county:
401	401	42 (1) An airport authority operating under IC 8-22-3.
402	402	2024 IN 32—LS 6170/DI 120 10
403	403	1 (2) A public library operating under IC 36-12.
404	404	2 (3) (2) A capital improvement board of managers operating under
405	405	3 IC 36-10.
406	406	4 (4) (3) A public transportation corporation operating under
407	407	5 IC 36-9-4.
408	408	6 (5) (4) A health and hospital corporation established under
409	409	7 IC 16-22-8.
410	410	8 (6) (5) Any other taxing unit (as defined in IC 6-1.1-1-21) that is
411	411	9 located in the county and has a governing body that is not
412	412	10 comprised of a majority of officials who are elected to serve on
413	413	11 the governing body.
414	414	12 Except as provided in subsection (c), the city-county legislative body
415	415	13 may reduce or modify but not increase a proposed operating and
416	416	14 maintenance budget or tax levy under this section.
417	417	15 (b) The board of each entity listed in subsection (a) shall, after
418	418	16 adoption of its proposed budget and tax levies, submit them, along with
419	419	17 detailed accounts, to the city clerk before September 2.
420	420	18 (c) The city-county legislative body or, when subsection (d) applies,
421	421	19 the fiscal body of an excluded city or town shall review the issuance of
422	422	20 bonds of an entity listed in subsection (a). Approval of the city-county
423	423	21 legislative body or, when subsection (d) applies, the fiscal body of an
424	424	22 excluded city or town is required for the issuance of bonds. The
425	425	23 city-county legislative body or the fiscal body of an excluded city or
426	426	24 town may not reduce or modify a budget or tax levy of an entity listed
427	427	25 in subsection (a) in a manner that would:
428	428	26 (1) limit or restrict the rights vested in the entity to fulfill the
429	429	27 terms of any agreement made with the holders of the entity's
430	430	28 bonds; or
431	431	29 (2) in any way impair the rights or remedies of the holders of the
432	432	30 entity's bonds.
433	433	31 (d) If the assessed valuation of a taxing unit is entirely contained
434	434	32 within an excluded city or town (as described in IC 36-3-1-7) that is
435	435	33 located in a county having a consolidated city, the governing body of
436	436	34 the taxing unit shall submit its proposed operating and maintenance
437	437	35 budget and tax levies to the city or town fiscal body for approval and
438	438	36 not the city-county legislative body. Except as provided in subsection
439	439	37 (c), the fiscal body of the excluded city or town may reduce or modify
440	440	38 but not increase a proposed operating and maintenance budget or tax
441	441	39 levy under this section.
442	442	40 SECTION 10. IC 36-12-1-10, AS ADDED BY P.L.1-2005,
443	443	41 SECTION 49, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
444	444	42 JULY 1, 2024]: Sec. 10. (a) A Class 2 library may convert to Class 1
445	445	2024 IN 32—LS 6170/DI 120 11
446	446	1 status if the Class 2 library board passes the following resolution of
447	447	2 conversion:
448	448	3 "__________ Public Library, by action of its library board,
449	449	4 resolves to convert to a Class 1 library district subject to
450	450	5 IC 36-12-2.".
451	451	6 (b) The resolution of conversion:
452	452	7 (1) must describe the territory included in the library district; and
453	453	8 (2) is irrevocable.
454	454	9 (c) The resolution of conversion must be signed by a majority of
455	455	10 library board members. Not later than five (5) days after approving the
456	456	11 resolution of conversion, the library board shall file a copy of the
457	457	12 resolution of conversion:
458	458	13 (1) in the office of the county recorder in the county where the
459	459	14 administrative office of the public library is located; and
460	460	15 (2) with the Indiana state library.
461	461	16 (d) The library board shall give notice of the resolution of
462	462	17 conversion to all officials who have appointive powers under
463	463	18 IC 36-12-2.
464	464	19 (e) The officials under subsection (d) shall appoint a library board
465	465	20 for the public library. Members of the old library board shall continue
466	466	21 to serve as library board members until:
467	467	22 (1) a majority of the new library board has been appointed; and
468	468	23 (2) the new appointees have taken an oath of office to serve on the
469	469	24 library board.
470	470	25 (f) Upon the:
471	471	26 (1) filing of the resolution of conversion;
472	472	27 (2) appointments under IC 36-12-2; and
473	473	28 (3) oath of office of the new library board under IC 36-12-2-19;
474	474	29 any current tax levies continue under authority granted to the Class 2
475	475	30 library before July 1, 2024, until the next succeeding calendar year, at
476	476	31 which time the tax provisions for Class 1 libraries under IC 36-12-3-12
477	477	32 apply before July 1, 2024, and after June 30, 2024, the tax
478	478	33 provisions for Class 1 libraries under IC 36-12-3-12.1 and
479	479	34 IC 36-12-3-12.2 apply.
480	480	35 (g) The obligation of a political subdivision to levy and collect taxes
481	481	36 for library purposes remains effective after the conversion.
482	482	37 SECTION 11. IC 36-12-2-2, AS ADDED BY P.L.1-2005,
483	483	38 SECTION 49, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
484	484	39 JULY 1, 2024]: Sec. 2. (a) A Class 1 public library is a municipal
485	485	40 corporation, known as __________ Public Library.
486	486	41 (b) In the name of the Class 1 public library under subsection (a),
487	487	42 the public library may:
488	488	2024 IN 32—LS 6170/DI 120 12
489	489	1 (1) contract and be contracted with; and
490	490	2 (2) sue and be sued in court.
491	491	3 (c) Before January 1, 2025, each public library constitutes an
492	492	4 independent taxing unit for purposes of IC 6-1.1-1-21.
493	493	5 SECTION 12. IC 36-12-2-15, AS AMENDED BY P.L.104-2022,
494	494	6 SECTION 229, IS AMENDED TO READ AS FOLLOWS
495	495	7 [EFFECTIVE JULY 1, 2024]: Sec. 15. (a) This section applies to the
496	496	8 library board of a library district:
497	497	9 (1) located in a county having a population of more than
498	498	10 seventy-nine thousand (79,000) and less than eighty thousand
499	499	11 (80,000); and
500	500	12 (2) containing all or part of the territory of each school
501	501	13 corporation in the county.
502	502	14 (b) Notwithstanding section 9 of this chapter, the library board has
503	503	15 the following members:
504	504	16 (1) One (1) member appointed by the executive of the county in
505	505	17 which the library district is located and who is not a member of
506	506	18 the county executive.
507	507	19 (2) One (1) member appointed by the fiscal body of the county in
508	508	20 which the library district is located and who is not a member of
509	509	21 the county fiscal body.
510	510	22 (3) One (1) member appointed by the legislative body of the most
511	511	23 populous city in the library district and who is not a member of
512	512	24 the city legislative body.
513	513	25 (4) One (1) member appointed by the school board of each school
514	514	26 corporation having territory in the library district and who is not
515	515	27 a member of a governing body of a school corporation.
516	516	28 (c) An individual who is appointed under subsection (b) to serve as
517	517	29 a member of a library board must, before March 1 of each year, report
518	518	30 to the member's appointing authority concerning the work of the library
519	519	31 board and finances of the library during the preceding calendar year,
520	520	32 including the rate of taxation determined under IC 36-12-3-12 (before
521	521	33 July 1, 2024).
522	522	34 SECTION 13. IC 36-12-3-7, AS ADDED BY P.L.1-2005,
523	523	35 SECTION 49, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
524	524	36 JULY 1, 2024]: Sec. 7. (a) A library board may contract to provide or
525	525	37 receive library service from the following municipal corporations:
526	526	38 (1) Another public library.
527	527	39 (2) Any unit.
528	528	40 (b) A contract for library service between a public library and
529	529	41 another municipal corporation must outline the:
530	530	42 (1) manner and extent of library service; and
531	531	2024 IN 32—LS 6170/DI 120 13
532	532	1 (2) amount of compensation for the extension of library service.
533	533	2 (c) This subsection does not apply to municipal corporations
534	534	3 described in section 8 of this chapter. A municipal corporation
535	535	4 receiving library service shall
536	536	5 (1) levy a tax sufficient to meet the amount of compensation
537	537	6 agreed upon under the contract; and
538	538	7 (2) expend all funds received under a contract for library services
539	539	8 chargeable to the contract.
540	540	9 SECTION 14. IC 36-12-3-8, AS AMENDED BY P.L.104-2022,
541	541	10 SECTION 230, IS AMENDED TO READ AS FOLLOWS
542	542	11 [EFFECTIVE JULY 1, 2024]: Sec. 8. (a) This section applies to
543	543	12 municipal corporations located in a county having a population of more
544	544	13 than thirty-five thousand nine hundred (35,900) and less than thirty-six
545	545	14 thousand (36,000).
546	546	15 (b) A municipal corporation receiving library service under section
547	547	16 7 of this chapter shall
548	548	17 (1) levy a tax sufficient to meet the amount of compensation
549	549	18 agreed on under the contract; or
550	550	19 (2) make the contract payments with revenue derived from a tax
551	551	20 being imposed before the contract is approved by the municipal
552	552	21 corporation, including the part of local income tax revenue that is
553	553	22 not required to be dedicated to providing property tax relief.
554	554	23 (c) A library board providing service shall expend all funds received
555	555	24 under a contract for library services chargeable to the contract.
556	556	25 SECTION 15. IC 36-12-3-10, AS ADDED BY P.L.1-2005,
557	557	26 SECTION 49, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
558	558	27 JULY 1, 2024]: Sec. 10. The library board may do the following:
559	559	28 (1) Adopt a resolution to make loans or issue notes to refund the
560	560	29 loans in anticipation of revenues of the library that are expected
561	561	30 to be levied and collected or received during the term of the
562	562	31 loans. The term of a loan made under this subdivision may not be
563	563	32 more than five (5) years. Loans under this subdivision must be
564	564	33 made in the following manner:
565	565	34 (A) The resolution authorizing the loans must appropriate and
566	566	35 pledge to payment of the loans a sufficient amount of the
567	567	36 revenues in anticipation of which the loans are issued and out
568	568	37 of which the loans are payable.
569	569	38 (B) The loans must be evidenced by warrants or tax
570	570	39 anticipation notes of the library in terms designating:
571	571	40 (i) the nature of the consideration;
572	572	41 (ii) the time and place payable; and
573	573	42 (iii) the revenues in anticipation of which the loans are
574	574	2024 IN 32—LS 6170/DI 120 14
575	575	1 issued and out of which the loans are payable.
576	576	2 (2) Borrow money from other persons.
577	577	3 (3) Issue, negotiate, and sell negotiable notes and bonds of the
578	578	4 public library.
579	579	5 (4) For taxes first due and payable in 2024 or before, levy,
580	580	6 assess, and collect, at the same time and in the same manner as
581	581	7 other taxes of the public library are levied, assessed, and
582	582	8 collected, a special tax in addition to the tax authorized by section
583	583	9 12 of this chapter, sufficient to pay all yearly interest on the
584	584	10 bonded and note indebtedness of the public library.
585	585	11 (5) Provide a sinking fund for the liquidation of the principal of
586	586	12 the bond when the principal of the bond becomes due.
587	587	13 (6) Receive, expend, or pledge tax revenue as set forth in this
588	588	14 chapter that the library receives from a special tax levy
589	589	15 assessed by the county or municipality to which a budget is
590	590	16 submitted under section 12.1 of this chapter.
591	591	17 SECTION 16. IC 36-12-3-11, AS ADDED BY P.L.1-2005,
592	592	18 SECTION 49, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
593	593	19 JULY 1, 2024]: Sec. 11. (a) A library board shall establish funds to
594	594	20 keep money and securities of the public library as follows:
595	595	21 (1) All money collected or received from tax levies, interest on
596	596	22 investments, fees, fines, rentals, and other revenues:
597	597	23 (A) shall be deposited into the library operating fund, except
598	598	24 as otherwise provided in this section; and
599	599	25 (B) must be budgeted and expended in the manner required by
600	600	26 law.
601	601	27 (2) All money received from the sale of bonds or other evidences
602	602	28 of indebtedness for the purpose of construction, reconstruction, or
603	603	29 alteration of library buildings, except the premium and accrued
604	604	30 interest on the bonds, shall be deposited into the construction
605	605	31 fund. The money shall be appropriated and expended solely for
606	606	32 the purpose for which the indebtedness is created.
607	607	33 (3) All money derived from the taxes levied for the purpose of
608	608	34 retiring bonds or other evidence of indebtedness, and any
609	609	35 premium or accrued interest that may be received, shall be
610	610	36 deposited into the bond and interest redemption fund. The fund
611	611	37 shall be used for no other purpose than the repayment of
612	612	38 indebtedness.
613	613	39 (4) Money or securities may be accumulated in any library
614	614	40 improvement reserve fund to anticipate necessary future capital
615	615	41 expenditures, such as:
616	616	42 (A) the purchase of land;
617	617	2024 IN 32—LS 6170/DI 120 15
618	618	1 (B) the purchase and construction of buildings or structures;
619	619	2 (C) the construction of additions or improvements to existing
620	620	3 structures;
621	621	4 (D) the purchase of equipment; and
622	622	5 (E) all repairs or replacement of buildings or equipment.
623	623	6 (5) Money or securities accepted and received by the library
624	624	7 board as a grant, a gift, a donation, an endowment, a bequest, or
625	625	8 a trust may be:
626	626	9 (A) set aside in a separate fund or funds and shall be
627	627	10 expended, without appropriation, in accordance with the
628	628	11 conditions and purposes specified by the donor; or
629	629	12 (B) set aside in an account with a nonprofit corporation
630	630	13 established for the sole purpose of building permanent
631	631	14 endowments within a community (referred to as a "community
632	632	15 foundation"). The earnings on the funds in the account, either:
633	633	16 (i) deposited by the library; or
634	634	17 (ii) accepted by the community foundation on behalf of the
635	635	18 library;
636	636	19 may be distributed back to the library for expenditure, without
637	637	20 appropriation, in accordance with the conditions and purposes
638	638	21 specified by the donor. A community foundation that
639	639	22 distributes earnings under this clause is not required to make
640	640	23 more than one (1) distribution of earnings in a calendar year.
641	641	24 (6) All money received in payment for library services or for
642	642	25 library purchases made or to be made under the terms of a
643	643	26 contract between two (2) or more public libraries under section 7
644	644	27 of this chapter shall be deposited into the contractual service fund.
645	645	28 This money shall be:
646	646	29 (A) expended solely for the purposes specified in the contract;
647	647	30 and
648	648	31 (B) disbursed without further appropriation.
649	649	32 (b) The library board may invest excess funds in accordance with
650	650	33 IC 5-13-9.
651	651	34 SECTION 17. IC 36-12-3-12, AS AMENDED BY P.L.159-2020,
652	652	35 SECTION 84, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
653	653	36 JULY 1, 2024]: Sec. 12. (a) This section applies to a library board
654	654	37 before July 1, 2024.
655	655	38 (a) (b) The library board shall determine the rate of taxation for the
656	656	39 library district that is necessary for the proper operation of the library.
657	657	40 The library board shall certify the rate to the county auditor.
658	658	41 (c) An additional rate under this section may be levied under
659	659	42 section 10(4) of this chapter for taxes first due and payable in 2024
660	660	2024 IN 32—LS 6170/DI 120 16
661	661	1 or before.
662	662	2 (b) (d) If the library board fails to:
663	663	3 (1) give:
664	664	4 (A) a first published notice to the board's taxpayers of the
665	665	5 board's proposed budget and tax levy for the ensuing year at
666	666	6 least ten (10) days before the public hearing required under
667	667	7 IC 6-1.1-17-3; and
668	668	8 (B) a second published notice to the board's taxpayers of the
669	669	9 board's proposed budget and tax levy for the ensuing year at
670	670	10 least three (3) days before the public hearing required under
671	671	11 IC 6-1.1-17-3; or
672	672	12 (2) finally adopt the budget and fix the tax levy not later than
673	673	13 November 1;
674	674	14 the last preceding annual appropriation made for the public library is
675	675	15 renewed for the ensuing year, and the last preceding annual tax levy is
676	676	16 continued. Under this subsection, the treasurer of the library board
677	677	17 shall report the continued tax levy to the county auditor not later than
678	678	18 November 1.
679	679	19 SECTION 18. IC 36-12-3-12.1 IS ADDED TO THE INDIANA
680	680	20 CODE AS A NEW SECTION TO READ AS FOLLOWS
681	681	21 [EFFECTIVE JULY 1, 2024]: Sec. 12.1. (a) This section applies to a
682	682	22 library board after June 30, 2024.
683	683	23 (b) The library board shall prepare and submit an annual
684	684	24 budget in the same manner as other departments of county or
685	685	25 municipal government, as the case may be, and shall be limited in
686	686	26 all expenditures to the provisions made for the expenditures by the
687	687	27 fiscal body of the county or municipality in which the boundaries
688	688	28 of the library district are located.
689	689	29 (c) The annual budget submitted by the library board to the
690	690	30 fiscal body under this section shall include a separate line item
691	691	31 proposal for each proposed function or service of the library that
692	692	32 is not a core public function under IC 36-12-16-2.
693	693	33 (d) If the territory of the library district is located in more than
694	694	34 one (1) county or municipality, the library board shall prepare and
695	695	35 submit an annual budget under this section to each county or
696	696	36 municipality.
697	697	37 SECTION 19. IC 36-12-3-12.2 IS ADDED TO THE INDIANA
698	698	38 CODE AS A NEW SECTION TO READ AS FOLLOWS
699	699	39 [EFFECTIVE JULY 1, 2024]: Sec. 12.2. (a) This section applies for
700	700	40 assessment dates after December 31, 2023.
701	701	41 (b) The territory within the boundaries of a library district
702	702	42 comprises a special taxing district for the purpose of levying special
703	703	2024 IN 32—LS 6170/DI 120 17
704	704	1 benefit taxes for public library purposes under this chapter. The
705	705	2 special benefit taxes levied and collected shall be paid to the public
706	706	3 library.
707	707	4 (c) The fiscal body of the county or municipality to which a
708	708	5 budget is submitted under section 12.1 of this chapter shall
709	709	6 determine and provide the revenues necessary for the operation
710	710	7 and maintenance of the public library by:
711	711	8 (1) a special tax levy;
712	712	9 (2) a specific appropriation; or
713	713	10 (3) both of these methods.
714	714	11 (d) If the territory of the library district is located in more than
715	715	12 one (1) county or municipality, each respective county or
716	716	13 municipality shall provide an amount of the revenue:
717	717	14 (1) required for the public library as set forth under
718	718	15 subsection (c); and
719	719	16 (2) in proportion to the county's or municipality's assessed
720	720	17 value within the library district compared to the total assessed
721	721	18 value of the library district.
722	722	19 (e) For purposes of the property tax levy limits under
723	723	20 IC 6-1.1-18.5, a special tax levied under this section is included in
724	724	21 the calculation of the maximum permissible property tax levy for
725	725	22 the county or municipality. For property taxes first due and
726	726	23 payable in 2025, the county's or municipality's maximum
727	727	24 permissible ad valorem property tax levy under IC 6-1.1-18.5 shall
728	728	25 be increased by:
729	729	26 (1) the public library's maximum permissible ad valorem
730	730	27 property tax levy under IC 6-1.1-18.5 for property taxes first
731	731	28 due and payable in 2024; multiplied by
732	732	29 (2) the maximum levy growth quotient under IC 6-1.1-18.5-2
733	733	30 for property taxes first due and payable in 2025.
734	734	31 The county's or municipality's maximum permissible ad valorem
735	735	32 property tax levy under IC 6-1.1-18.5 for property taxes first due
736	736	33 and payable in 2025 shall be used in the determination of the
737	737	34 county's or municipality's maximum permissible ad valorem
738	738	35 property tax levy under IC 6-1.1-18.5 for property taxes first due
739	739	36 and payable in 2026 and thereafter.
740	740	37 SECTION 20. IC 36-12-4-4, AS ADDED BY P.L.1-2005,
741	741	38 SECTION 49, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
742	742	39 JULY 1, 2024]: Sec. 4. (a) A copy of the resolution adopting the
743	743	40 merger described in section 3(e) of this chapter must be filed with:
744	744	41 (1) the county recorder in each county in which merging library
745	745	42 districts are located; and
746	746	2024 IN 32—LS 6170/DI 120 18
747	747	1 (2) the Indiana state library.
748	748	2 (b) After the resolution adopting the merger is filed, each library
749	749	3 board that is not the board of the primary library shall appoint four (4)
750	750	4 members to serve with the primary library board on an interim board.
751	751	5 (c) The interim board has the same duties and powers of a public
752	752	6 library board under IC 36-12-3.
753	753	7 (d) After the resolution adopting the merger is filed, the budgets of
754	754	8 the merging libraries shall be:
755	755	9 (1) combined for the remainder of the current year; and
756	756	10 (2) administered by the interim board.
757	757	11 (e) The interim board described in subsection (b) is dissolved on
758	758	12 December 31 of the year in which the merger takes place.
759	759	13 (f) The members of a merged library board shall be appointed under
760	760	14 IC 36-12-2, and the terms of office for the members of the merged
761	761	15 library board begin January 1 following the dissolution of the interim
762	762	16 board.
763	763	17 (g) If a merger takes place after December 31 but before July 1 of
764	764	18 the ensuing year, the interim library board described in subsection (b)
765	765	19 shall present a new budget and tax rate to the department of local
766	766	20 government finance prepare and submit a new budget under
767	767	21 IC 36-12-3-12.1 to receive a new tax levy for the merged library
768	768	22 district.
769	769	23 (h) If a merger takes place after June 30 but before January 1 of the
770	770	24 ensuing year, the merged library board described in subsection (f) shall
771	771	25 present a new budget and tax rate to the department of local
772	772	26 government finance prepare and submit a new budget under
773	773	27 IC 36-12-3-12.1 to receive a new tax levy for the merged library
774	774	28 district.
775	775	29 SECTION 21. IC 36-12-6-4, AS ADDED BY P.L.1-2005,
776	776	30 SECTION 49, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
777	777	31 JULY 1, 2024]: Sec. 4. (a) If a township or part of a township is
778	778	32 contracting with a library that is extending service through a county
779	779	33 contractual library, the township or part of a township
780	780	34 (1) shall cease to levy a separate tax for library purposes; and
781	781	35 (2) becomes a part of the county contractual library district.
782	782	36 (b) The tax levy for county contractual library purposes shall then
783	783	37 be levied in the township or part of a township that has become part of
784	784	38 the county contractual library district.
785	785	39 (c) A township that ceases to levy a tax for public library purposes
786	786	40 in any year becomes a part of the township's county library district or
787	787	41 county contractual library district, if either library district exists at the
788	788	42 time the township levy is discontinued. The county library or county
789	789	2024 IN 32—LS 6170/DI 120 19
790	790	1 contractual library tax shall then be levied in the townships.
791	791	2 SECTION 22. IC 36-12-7-6, AS ADDED BY P.L.1-2005,
792	792	3 SECTION 49, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
793	793	4 JULY 1, 2024]: Sec. 6. (a) A public library established as an 1852
794	794	5 subscription library is a municipal corporation and possesses the power
795	795	6 to:
796	796	7 (1) sue and be sued; and
797	797	8 (2) receive by donation books, money, paper, or other real or
798	798	9 personal property for the library.
799	799	10 (b) The shareholders of the 1852 subscription library are the
800	800	11 inhabitants of the municipality who have subscribed money for the
801	801	12 establishment of the library. The shareholders shall annually elect
802	802	13 seven (7) directors on the first Monday in January. However, if an
803	803	14 annual election is omitted, the directors remain in office until the next
804	804	15 annual election and until successors are chosen.
805	805	16 (c) The directors shall appoint one (1) director to be president at the
806	806	17 meetings. The president may vote only in case of a tie vote. A majority
807	807	18 of the directors constitutes a quorum. If a vacancy occurs among the
808	808	19 directors, the remaining directors shall elect a new director to fill the
809	809	20 vacancy, and the new director shall serve until the next annual election.
810	810	21 (d) The 1852 subscription library is governed by bylaws adopted by
811	811	22 the directors of the public library.
812	812	23 (e) The directors may adopt a common seal.
813	813	24 (f) The directors may levy a tax on the shareholders not to exceed
814	814	25 one dollar ($1) on each share during one (1) year. In addition, at the
815	815	26 annual meeting, the shareholders may increase the tax to a sum not to
816	816	27 exceed five dollars ($5) on each share during one (1) year. The
817	817	28 provisions in IC 36-12-3-12.1 and IC 36-12-3-12.2 do not apply to
818	818	29 a public library described in this section.
819	819	30 (g) The shareholders may:
820	820	31 (1) appoint a treasurer and a librarian; or
821	821	32 (2) remove the treasurer or librarian;
822	822	33 at the pleasure of the shareholders.
823	823	34 SECTION 23. IC 36-12-7-7, AS AMENDED BY P.L.233-2015,
824	824	35 SECTION 348, IS AMENDED TO READ AS FOLLOWS
825	825	36 [EFFECTIVE JULY 1, 2024]: Sec. 7. (a) The library board of a library
826	826	37 established as an 1899 township library consists of the school township
827	827	38 trustee in the township where the library is located and two (2)
828	828	39 residents of the township who are appointed by the board of
829	829	40 commissioners of the county where the library is located.
830	830	41 Appointments are for a term of four (4) years. Members of the library
831	831	42 board serve without compensation.
832	832	2024 IN 32—LS 6170/DI 120 20
833	833	1 (b) The library board:
834	834	2 (1) shall control the purchase of books and the management of the
835	835	3 library;
836	836	4 (2) shall possess and retain custody of any books remaining in the
837	837	5 old township library in the township where the library is located;
838	838	6 (3) may receive donations, bequests, and legacies on behalf of the
839	839	7 library; and
840	840	8 (4) may receive copies of all documents of the state available for
841	841	9 distribution from the director of the state library.
842	842	10 (c) The 1899 township library is the property of the township. The
843	843	11 township trustee is responsible for the safe preservation of the township
844	844	12 library.
845	845	13 (d) Two (2) or more adjacent townships may unite to maintain a
846	846	14 township library. The library is controlled by either:
847	847	15 (1) a combined library board, which consists of each of the
848	848	16 uniting township boards appointed under subsection (a); or
849	849	17 (2) the one (1) township library board appointed under subsection
850	850	18 (a) of the uniting townships that receives funding for the
851	851	19 operation of the uniting township library.
852	852	20 (e) The legislative body of any township that contains a library
853	853	21 established as an 1899 township library may levy a tax annually of not
854	854	22 more than three and thirty-three hundredths cents ($0.0333) on each
855	855	23 one hundred dollars ($100) of taxable property assessed for taxation in
856	856	24 the township. If the legislative body does not levy the tax, a petition
857	857	25 signed by at least the number of registered voters required under
858	858	26 IC 3-8-6-3 to place a candidate on the ballot may be filed with the
859	859	27 circuit court clerk, who:
860	860	28 (1) shall determine if an adequate number of voters have signed
861	861	29 the petition; and
862	862	30 (2) if an adequate number of voters have signed the petition, shall
863	863	31 certify the public question to the county election board under
864	864	32 IC 3-10-9-3. The county election board shall then cause to be
865	865	33 printed on the ballot for the township the following question in
866	866	34 the form prescribed by IC 3-10-9-4: "Shall a township library tax
867	867	35 be levied?".
868	868	36 If a majority of the votes cast on the question in subdivision (2) are in
869	869	37 the affirmative, the township trustee shall annually levy a tax of not less
870	870	38 than one and sixty-seven hundredths cents ($0.0167) and not more than
871	871	39 three and thirty-three hundredths cents ($0.0333) on each one hundred
872	872	40 dollars ($100) of taxable property in the township for the establishment
873	873	41 and support of a township library. The township tax shall be levied,
874	874	42 assessed, collected, and paid according to the procedure outlined in
875	875	2024 IN 32—LS 6170/DI 120 21
876	876	1 IC 6-1.1.
877	877	2 (f) The tax levy under subsection (e) shall be discontinued when the
878	878	3 question of discontinuing the levy has been submitted to a vote
879	879	4 according to the procedure provided in subsection (e) and the majority
880	880	5 of the votes cast on the question is in the negative.
881	881	6 (g) If a public library that is open for the use of all the residents of
882	882	7 the township is located in the township, the proceeds of the tax
883	883	8 collected under subsection (e) shall be paid to that public library.
884	884	9 (h) In a township outside a city that contains a library:
885	885	10 (1) established by private donations of the value of at least ten
886	886	11 thousand dollars ($10,000), including the real estate and buildings
887	887	12 used for the library; and
888	888	13 (2) used for the benefit of all the inhabitants of the township;
889	889	14 the township trustee of the township shall annually levy and collect not
890	890	15 more than two cents ($0.02) on each one hundred dollars ($100) upon
891	891	16 the taxable property within the limits of the township. The money shall
892	892	17 be paid to the trustees of the library, to be applied by the trustees for
893	893	18 the purchase of books and the payment of the maintenance costs for the
894	894	19 library. When it becomes necessary to purchase additional ground for
895	895	20 the extension or protection of library buildings already established by
896	896	21 private donation, the trustee, with the consent of the county legislative
897	897	22 body, may annually levy and collect not more than one and sixty-seven
898	898	23 hundredths cents ($0.0167) on each one hundred dollars ($100) of
899	899	24 taxable property of the township for not more than three (3) years
900	900	25 successively, to be expended by the trustees for the purchase of
901	901	26 property and the construction and enlargement of library buildings.
902	902	27 The provisions in IC 36-12-3-12.1 and IC 36-12-3-12.2 do not apply
903	903	28 to a public library described in this section.
904	904	29 (i) The 1899 township library is free to all the residents of the
905	905	30 township.
906	906	31 SECTION 24. IC 36-12-7-8, AS AMENDED BY P.L.11-2023,
907	907	32 SECTION 135, IS AMENDED TO READ AS FOLLOWS
908	908	33 [EFFECTIVE JULY 1, 2024]: Sec. 8. (a) As used in this section:
909	909	34 (1) "county fiscal body" means the fiscal body of a county in
910	910	35 which a private donation library is located;
911	911	36 (2) "library board" means a library board established under
912	912	37 IC 20-14 (before its repeal) or this article in a county in which a
913	913	38 private donation library is located; and
914	914	39 (3) "private donation library" means a public library:
915	915	40 (A) established by private donation;
916	916	41 (B) located in a city having a population of more than one
917	917	42 hundred ten thousand (110,000) and less than one hundred
918	918	2024 IN 32—LS 6170/DI 120 22
919	919	1 fifty thousand (150,000);
920	920	2 (C) that contains at least twenty-five thousand (25,000)
921	921	3 volumes;
922	922	4 (D) that has real property valued at at least one hundred
923	923	5 thousand dollars ($100,000); and
924	924	6 (E) that is open and free to the residents of the city.
925	925	7 (b) The: library board shall:
926	926	8 (1) library board shall, for property taxes first due and
927	927	9 payable in 2024 or before, levy a tax under IC 6-1.1 in an
928	928	10 amount not less than sixty-seven hundredths of one cent
929	929	11 ($0.0067) and not more than one and sixty-seven hundredths
930	930	12 cents ($0.0167) on each one hundred dollars ($100) of the
931	931	13 assessed valuation of all the real and personal property in the
932	932	14 county; and
933	933	15 (2) county fiscal body shall, for property taxes first due and
934	934	16 payable after 2024, levy a tax under IC 6-1.1 in an amount not
935	935	17 less than sixty-seven hundredths of one cent ($0.0067) and not
936	936	18 more than one and sixty-seven hundredths cents ($0.0167) on
937	937	19 each one hundred dollars ($100) of the assessed valuation of
938	938	20 all the real and personal property in the county.
939	939	21 (2) (c) The library board shall keep the tax levied taxes levied
940	940	22 and received under subdivision (1) subsection (b) separate from all
941	941	23 other funds of the library board. and
942	942	24 (3) (d) The library board shall use the tax levied taxes levied and
943	943	25 received under subdivision (1): subsection (b):
944	944	26 (A) (1) if the membership of the trustees of the private donation
945	945	27 library includes at least one (1) member or appointee of the
946	946	28 library board and at least one (1) appointee of the county fiscal
947	947	29 body, for distributions of the full amounts of the tax received to
948	948	30 the trustees of the private donation library at the time the tax is
949	949	31 received by the library board; or
950	950	32 (B) (2) if the membership of the trustees of the private donation
951	951	33 library does not include at least one (1) member or appointee of
952	952	34 the library board and at least one (1) appointee of the county
953	953	35 fiscal body, at the discretion of the library board for:
954	954	36 (i) (A) library board purposes; or
955	955	37 (ii) (B) quarterly distributions to the trustees of the private
956	956	38 donation library.
957	957	39 (c) (e) If requested by the trustees of the private donation library, the
958	958	40 library board shall designate a member of the library board or appoint
959	959	41 an individual to serve as a trustee of the private donation library. If
960	960	42 requested by the trustees of the private donation library, the county
961	961	2024 IN 32—LS 6170/DI 120 23
962	962	1 fiscal body shall appoint an individual to serve as a trustee of the
963	963	2 private donation library.
964	964	3 (d) (f) The trustees of the private donation library shall annually
965	965	4 submit a budget to the library board.
966	966	5 (e) (g) The trustees of the private donation library shall expend
967	967	6 amounts received under subsection (b)(3)(A) (d)(1) or (b)(3)(B)(ii)
968	968	7 (d)(2)(B) for the support, operation, and maintenance of the private
969	969	8 donation library. The trustees shall:
970	970	9 (1) keep the money separate from all other funds;
971	971	10 (2) record:
972	972	11 (A) the amount of money received;
973	973	12 (B) to whom and when the money is paid out; and
974	974	13 (C) for what purpose the money is used;
975	975	14 in a book kept by the trustees; and
976	976	15 (3) make an annual report of the matters referred to in subdivision
977	977	16 (2) to the library board.
978	978	17 (f) (h) For purposes of the property tax levy limits under
979	979	18 IC 6-1.1-18.5, the tax levied by the library board or the county fiscal
980	980	19 body under subsection (b)(1) (b) is not included in the calculation of
981	981	20 the maximum permissible property tax levy for the public library or the
982	982	21 county, whichever is applicable.
983	983	22 SECTION 25. IC 36-12-10-1.5 IS ADDED TO THE INDIANA
984	984	23 CODE AS A NEW SECTION TO READ AS FOLLOWS
985	985	24 [EFFECTIVE JULY 1, 2024]: Sec. 1.5. As used in this chapter,
986	986	25 "governing authority" means:
987	987	26 (1) before July 1, 2024, the library board; and
988	988	27 (2) after June 30, 2024, the fiscal body of the county or
989	989	28 municipality to which a budget is submitted under
990	990	29 IC 36-12-3-12.1. If the territory of the library district is
991	991	30 located in more than one (1) county or municipality, the
992	992	31 governing authority shall be a joint body of each applicable
993	993	32 county or municipality.
994	994	33 SECTION 26. IC 36-12-10-9, AS AMENDED BY P.L.38-2021,
995	995	34 SECTION 111, IS AMENDED TO READ AS FOLLOWS
996	996	35 [EFFECTIVE JULY 1, 2024]: Sec. 9. (a) If the execution of the lease
997	997	36 as originally agreed upon, or as modified by agreement, is authorized
998	998	37 by the library board, governing authority, the library board shall give
999	999	38 notice of the signing of the lease by publication one (1) time in a
1000	1000	39 newspaper of general circulation printed in the English language in the
1001	1001	40 district of the municipal corporation or in each municipal corporation
1002	1002	41 district if the proposed lease is a joint lease. If a newspaper is not
1003	1003	42 published in the district, the notice shall be published in any newspaper
1004	1004	2024 IN 32—LS 6170/DI 120 24
1005	1005	1 of general circulation published in the county.
1006	1006	2 (b) Fifty (50) or more taxpayers in the municipal corporation or
1007	1007	3 corporations who will be affected by the proposed lease and who are of
1008	1008	4 the opinion that the execution of the lease is not necessary or that the
1009	1009	5 proposed rental is not a fair and reasonable rental may file a petition in
1010	1010	6 the office of the county auditor of the county in which the municipal
1011	1011	7 corporation or corporations are located. The petition must be filed not
1012	1012	8 later than thirty (30) days after the publication of notice of the
1013	1013	9 execution of the lease and must set forth objections and facts showing
1014	1014	10 that the execution of the lease is unnecessary or unwise or that the lease
1015	1015	11 rental is not fair and reasonable, as the case may be.
1016	1016	12 (c) Upon the filing of a petition, the county auditor shall
1017	1017	13 immediately certify to the department of local government finance a
1018	1018	14 copy of the petition, together with other data that may be necessary to
1019	1019	15 present the questions involved. Upon receipt of the certified petition
1020	1020	16 and information, the department of local government finance shall fix
1021	1021	17 a time and place for a hearing of the matter not less than five (5) or
1022	1022	18 more than thirty (30) days after the department's receipt of the petition
1023	1023	19 and information. The hearing shall be held in the municipal corporation
1024	1024	20 or corporations, in the county where the municipal corporation or
1025	1025	21 corporations are located, or through electronic means.
1026	1026	22 (d) Notice of the hearing shall be given by the department of local
1027	1027	23 government finance to the governing authority, the members of the
1028	1028	24 library board, and to the first ten (10) taxpayer petitioners on the
1029	1029	25 petition by a letter signed by the department of local government
1030	1030	26 finance. The postage of the notice shall be prepaid, and the notice shall
1031	1031	27 be addressed to the persons at their usual place of residence and mailed
1032	1032	28 at least five (5) days before the date of the hearing. The decision of the
1033	1033	29 department of local government finance on the appeal regarding the
1034	1034	30 necessity for the execution of the lease and whether the rental is fair
1035	1035	31 and reasonable is final. A lease may be amended by the parties by
1036	1036	32 following the procedure under this chapter.
1037	1037	33 (e) An action to contest the validity of the lease or an amendment to
1038	1038	34 the lease or to enjoin the performance of any of the terms and
1039	1039	35 conditions of the lease must be brought not later than thirty (30) days
1040	1040	36 after publication of notice of the execution of the lease or an
1041	1041	37 amendment to the lease by the library board of the municipal
1042	1042	38 corporation or corporations. If an appeal has been taken to the
1043	1043	39 department of local government finance, action must be brought not
1044	1044	40 later than thirty (30) days after the decision of the department.
1045	1045	41 SECTION 27. IC 36-12-10-13, AS AMENDED BY P.L.42-2018,
1046	1046	42 SECTION 58, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1047	1047	2024 IN 32—LS 6170/DI 120 25
1048	1048	1 JULY 1, 2024]: Sec. 13. (a) The following apply to a municipal
1049	1049	2 corporation that executes a lease under this chapter:
1050	1050	3 (1) For property taxes first due and payable in 2024 or before,
1051	1051	4 the municipal corporation shall annually levy a special tax, in
1052	1052	5 addition to other taxes authorized by law, sufficient to produce
1053	1053	6 each year the necessary funds with which to pay the lease rental
1054	1054	7 stipulated to be paid by the municipal corporation under the lease.
1055	1055	8 (2) For property taxes first due and payable after 2024, the
1056	1056	9 county or municipal fiscal body shall annually levy a special
1057	1057	10 tax, in addition to other taxes authorized by law, sufficient to
1058	1058	11 produce each year the necessary funds with which to pay the
1059	1059	12 lease rental stipulated to be paid by the municipal corporation
1060	1060	13 under the lease.
1061	1061	14 (b) A levy under this section shall be reviewed in accordance with
1062	1062	15 IC 6-1.1-17.
1063	1063	16 (c) The first tax levy shall be made at the first annual tax levy period
1064	1064	17 following the date of the execution of the lease. The first annual levy
1065	1065	18 must be sufficient to pay the estimated amount of the first annual lease
1066	1066	19 rental payment to be made under the lease.
1067	1067	20 SECTION 28. IC 36-12-12-1.5 IS ADDED TO THE INDIANA
1068	1068	21 CODE AS A NEW SECTION TO READ AS FOLLOWS
1069	1069	22 [EFFECTIVE JULY 1, 2024]: Sec. 1.5. As used in this chapter,
1070	1070	23 "governing authority" means:
1071	1071	24 (1) before July 1, 2024, the library board; and
1072	1072	25 (2) after June 30, 2024, the fiscal body of the county or
1073	1073	26 municipality to which a budget is submitted under
1074	1074	27 IC 36-12-3-12.1. If the territory of the library district is
1075	1075	28 located in more than one (1) county or municipality, the
1076	1076	29 governing authority shall be a joint body of each county or
1077	1077	30 municipality.
1078	1078	31 SECTION 29. IC 36-12-12-3, AS ADDED BY P.L.1-2005,
1079	1079	32 SECTION 49, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1080	1080	33 JULY 1, 2024]: Sec. 3. (a) Before a library board may collect or
1081	1081	34 receive property taxes for a capital projects fund in a particular year,
1082	1082	35 the library board governing authority must, after January 1 and before
1083	1083	36 May 15 of the immediately preceding year, hold a public hearing on a
1084	1084	37 proposed plan and pass a resolution to adopt a plan. and
1085	1085	38 (b) In the case of a governing authority defined under section
1086	1086	39 1.5(1) of this chapter, submit the plan must be submitted for
1087	1087	40 approval or rejection by the fiscal body designated in section 4 of this
1088	1088	41 chapter.
1089	1089	42 (b) (c) The department of local government finance shall prescribe
1090	1090	2024 IN 32—LS 6170/DI 120 26
1091	1091	1 the format of the plan. A plan must apply to at least the three (3) years
1092	1092	2 immediately following the year the plan is adopted. A plan must
1093	1093	3 estimate for each year to which the plan applies the nature and amount
1094	1094	4 of proposed expenditures from the capital projects fund. A plan must
1095	1095	5 estimate:
1096	1096	6 (1) the source of all revenue to be dedicated to the proposed
1097	1097	7 expenditures in the upcoming budget year; and
1098	1098	8 (2) the amount of property taxes to be collected in that year and
1099	1099	9 retained in the fund for expenditures proposed for a later year.
1100	1100	10 (c) (d) If a hearing is scheduled under subsection (a), the governing
1101	1101	11 body authority shall publish the proposed plan and a notice of the
1102	1102	12 hearing in accordance with IC 5-3-1-2(b).
1103	1103	13 SECTION 30. IC 36-12-12-4, AS ADDED BY P.L.1-2005,
1104	1104	14 SECTION 49, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1105	1105	15 JULY 1, 2024]: Sec. 4. (a) This section applies to a governing
1106	1106	16 authority defined under section 1.5(1) of this chapter.
1107	1107	17 (a) (b) If the library board governing authority passes a resolution
1108	1108	18 under section 3 of this chapter, not later than ten (10) days after passing
1109	1109	19 the resolution the board shall transmit a certified copy of the plan to the
1110	1110	20 appropriate fiscal body or fiscal bodies, whichever applies. The
1111	1111	21 appropriate fiscal body is determined as follows:
1112	1112	22 (1) If the library district is located entirely within the corporate
1113	1113	23 boundaries of a municipality, the appropriate fiscal body is the
1114	1114	24 fiscal body of the municipality.
1115	1115	25 (2) If the library district is not described by subdivision (1) and
1116	1116	26 the district is located entirely within the boundaries of a township,
1117	1117	27 the appropriate fiscal body is the fiscal body of the township.
1118	1118	28 (3) If the library district is not described by subdivision (1) or (2),
1119	1119	29 the appropriate fiscal body is the fiscal body of each county in
1120	1120	30 which the library district is located.
1121	1121	31 (b) (c) The appropriate fiscal body shall hold a public hearing on the
1122	1122	32 plan not later than thirty (30) days after receiving a certified copy of the
1123	1123	33 plan and either reject or approve the plan before August 1 of the year
1124	1124	34 that the plan is received.
1125	1125	35 SECTION 31. IC 36-12-12-5, AS AMENDED BY P.L.137-2012,
1126	1126	36 SECTION 124, IS AMENDED TO READ AS FOLLOWS
1127	1127	37 [EFFECTIVE JULY 1, 2024]: Sec. 5. (a) If the library board governing
1128	1128	38 authority passes a resolution under section 3 of this chapter and, in the
1129	1129	39 case of a governing authority defined under section 1.5(1) of this
1130	1130	40 chapter, the appropriate fiscal body or bodies approve the plan, the
1131	1131	41 library board governing authority shall publish notice of adoption in
1132	1132	42 accordance with IC 5-3-1-2(i).
1133	1133	2024 IN 32—LS 6170/DI 120 27
1134	1134	1 (b) Ten (10) or more taxpayers who will be affected by the adopted
1135	1135	2 plan may file a petition with the county auditor of a county in which the
1136	1136	3 library district is located not later than ten (10) days after the
1137	1137	4 publication of the notice of adoption required by subsection (a), setting
1138	1138	5 forth the taxpayers' objections to the proposed plan. The county auditor
1139	1139	6 shall immediately certify the petition to the department of local
1140	1140	7 government finance.
1141	1141	8 SECTION 32. IC 36-12-12-6, AS ADDED BY P.L.1-2005,
1142	1142	9 SECTION 49, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1143	1143	10 JULY 1, 2024]: Sec. 6. The department of local government finance
1144	1144	11 shall, within a reasonable time, fix a date for a hearing on the petition
1145	1145	12 filed under section 5(b) of this chapter. The hearing shall be held in a
1146	1146	13 county in which the library district is located. The department of local
1147	1147	14 government finance shall notify:
1148	1148	15 (1) the library board; and
1149	1149	16 (2) the governing authority; and
1150	1150	17 (2) (3) the first ten (10) taxpayers whose names appear on the
1151	1151	18 petition;
1152	1152	19 at least five (5) days before the date fixed for the hearing.
1153	1153	20 SECTION 33. IC 36-12-12-7, AS ADDED BY P.L.1-2005,
1154	1154	21 SECTION 49, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1155	1155	22 JULY 1, 2024]: Sec. 7. (a) After a hearing upon the petition under
1156	1156	23 section 6 of this chapter, the department of local government finance
1157	1157	24 shall certify the department's approval, disapproval, or modification of
1158	1158	25 the plan to the library board governing authority and the auditor of the
1159	1159	26 county.
1160	1160	27 (b) A:
1161	1161	28 (1) taxpayer who signed a petition filed under section 5 of this
1162	1162	29 chapter; or
1163	1163	30 (2) library district against which a petition under section 5 of this
1164	1164	31 chapter is filed;
1165	1165	32 may petition for judicial review of the final determination of the
1166	1166	33 department of local government finance under subsection (a). The
1167	1167	34 petition must be filed in the tax court not more than forty-five (45) days
1168	1168	35 after the department certifies the department's action under subsection
1169	1169	36 (a).
1170	1170	37 SECTION 34. IC 36-12-12-9, AS ADDED BY P.L.1-2005,
1171	1171	38 SECTION 49, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1172	1172	39 JULY 1, 2024]: Sec. 9. (a) A library board governing authority may
1173	1173	40 amend an adopted and approved plan to:
1174	1174	41 (1) provide money for the purposes described in section 2(b)(4)
1175	1175	42 of this chapter; or
1176	1176	2024 IN 32—LS 6170/DI 120 28
1177	1177	1 (2) supplement money accumulated in the capital projects fund
1178	1178	2 for those purposes.
1179	1179	3 (b) If an emergency arises that results in costs that exceed the
1180	1180	4 amount accumulated in the fund for the purposes described in section
1181	1181	5 2(b)(4) of this chapter, the library board governing authority must
1182	1182	6 immediately apply to the department of local government finance for
1183	1183	7 a determination that an emergency exists. If the department of local
1184	1184	8 government finance determines that an emergency exists, the library
1185	1185	9 board governing authority may adopt a resolution to amend the plan.
1186	1186	10 The amendment is not subject to the deadline and the procedures for
1187	1187	11 adoption described in section 3 of this chapter. However, the
1188	1188	12 amendment is subject to modification by the department of local
1189	1189	13 government finance.
1190	1190	14 (c) An amendment adopted under this section may require the
1191	1191	15 payment of eligible emergency costs from:
1192	1192	16 (1) money accumulated in the capital projects fund for other
1193	1193	17 purposes; or
1194	1194	18 (2) money to be borrowed from other funds of the library board or
1195	1195	19 from a financial institution.
1196	1196	20 The amendment may also provide for an increase in the property tax
1197	1197	21 rate for the capital projects fund to restore money to the fund or to pay
1198	1198	22 principal and interest on a loan. However, before the property tax rate
1199	1199	23 for the fund may be increased, the library board a governing authority
1200	1200	24 defined under section 1.5(1) of this chapter must submit and obtain
1201	1201	25 the approval of the appropriate fiscal body or bodies, as provided in
1202	1202	26 section 4 of this chapter. An increase to the property tax rate for the
1203	1203	27 capital projects fund is effective for property taxes first due and
1204	1204	28 payable for the year next certified by the department of local
1205	1205	29 government finance under IC 6-1.1-17-16. However, the property tax
1206	1206	30 rate may not exceed the maximum rate established under section 10 of
1207	1207	31 this chapter.
1208	1208	32 SECTION 35. IC 36-12-12-10, AS ADDED BY P.L.1-2005,
1209	1209	33 SECTION 49, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1210	1210	34 JULY 1, 2024]: Sec. 10. To provide for the capital projects fund, the
1211	1211	35 library board governing authority may, for each year in which a plan
1212	1212	36 adopted under section 3 of this chapter is in effect, impose a property
1213	1213	37 tax rate that does not exceed one and sixty-seven hundredths cents
1214	1214	38 ($0.0167) on each one hundred dollars ($100) of assessed valuation of
1215	1215	39 the library district. This rate must be advertised in the same manner as
1216	1216	40 other property tax rates.
1217	1217	41 SECTION 36. IC 36-12-16 IS ADDED TO THE INDIANA CODE
1218	1218	42 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
1219	1219	2024 IN 32—LS 6170/DI 120 29
1220	1220	1 JULY 1, 2024]:
1221	1221	2 Chapter 16. Core Public Functions of a Public Library
1222	1222	3 Sec. 1. As used in this chapter, "collection materials" refers to
1223	1223	4 printed and digital materials, recordings, publications, magazines,
1224	1224	5 periodicals, CDs, DVDs, and similar items.
1225	1225	6 Sec. 2. As used in this chapter, "core public function" means the
1226	1226	7 functions of a public library to provide:
1227	1227	8 (1) public access to collection materials, public information,
1228	1228	9 and research resources through a variety of media, including
1229	1229	10 electronic means;
1230	1230	11 (2) quiet areas for study;
1231	1231	12 (3) technical assistance; and
1232	1232	13 (4) acquisition services;
1233	1233	14 to meet the needs of members of the public. The term does not
1234	1234	15 include the production of theatrical plays or performances, or
1235	1235	16 other recreational events that are not essential to a core public
1236	1236	17 function of the library.
1237	1237	18 Sec. 3. Beginning after December 31, 2024, public libraries are
1238	1238	19 prohibited from providing functions or services that are not a core
1239	1239	20 public function, unless the specific function or service is:
1240	1240	21 (1) included as a line item request in the public library's
1241	1241	22 budget proposal submitted under IC 36-12-3-12.1; and
1242	1242	23 (2) approved and funded by the county or municipality to
1243	1243	24 which the budget proposal is submitted.
1244	1244	2024 IN 32—LS 6170/DI 120