Indiana 2025 Regular Session

Indiana Senate Bill SB0283 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. 283
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: Library governance. Eliminates the authority of public
8	8	libraries to impose an ad valorem property tax as a "taxing unit".
9	9	Requires a public library to prepare and submit a recommended annual
10	10	budget to the fiscal body of the county in which the territory of the
11	11	public library is located to provide the revenues necessary for the
12	12	operation and maintenance of the public library by a special tax levy,
13	13	a specific appropriation, or both. Provides that a special tax levy for
14	14	public library purposes is included in the calculation of the maximum
15	15	permissible property tax levy for the county.
16	16	Effective: July 1, 2025; January 1, 2026.
17	17	Byrne
18	18	January 13, 2025, read first time and referred to Committee on Tax and Fiscal Policy.
19	19	2025 IN 283—LS 6379/DI 116 Introduced
20	20	First Regular Session of the 124th General Assembly (2025)
21	21	PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
22	22	Constitution) is being amended, the text of the existing provision will appear in this style type,
23	23	additions will appear in this style type, and deletions will appear in this style type.
24	24	Additions: Whenever a new statutory provision is being enacted (or a new constitutional
25	25	provision adopted), the text of the new provision will appear in this style type. Also, the
26	26	word NEW will appear in that style type in the introductory clause of each SECTION that adds
27	27	a new provision to the Indiana Code or the Indiana Constitution.
28	28	Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
29	29	between statutes enacted by the 2024 Regular Session of the General Assembly.
30	30	SENATE BILL No. 283
31	31	A BILL FOR AN ACT to amend the Indiana Code concerning local
32	32	government.
33	33	Be it enacted by the General Assembly of the State of Indiana:
34	34	1 SECTION 1. IC 6-1.1-1-21 IS AMENDED TO READ AS
35	35	2 FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 21. "Taxing unit"
36	36	3 means an entity which has the power to impose ad valorem property
37	37	4 taxes. Beginning after December 31, 2025, the term does not
38	38	5 include a public library.
39	39	6 SECTION 2. IC 6-1.1-17-20, AS AMENDED BY P.L.257-2013,
40	40	7 SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
41	41	8 JULY 1, 2025]: Sec. 20. (a) This section applies to each governing
42	42	9 body of a taxing unit that is not comprised of a majority of officials
43	43	10 who are elected to serve on the governing body. For purposes of this
44	44	11 section, an individual who qualifies to be appointed to a governing
45	45	12 body or serves on a governing body because of the individual's status
46	46	13 as an elected official of another taxing unit shall be treated as an
47	47	14 official who was not elected to serve on the governing body.
48	48	15 (b) As used in this section, "taxing unit" has the meaning set forth
49	49	16 in IC 6-1.1-1-21, except that the term does not include a public library
50	50	17 or an entity whose tax levies are subject to review and modification by
51	51	2025 IN 283—LS 6379/DI 116 2
52	52	1 a city-county legislative body under IC 36-3-6-9.
53	53	2 (c) If:
54	54	3 (1) the assessed valuation of a taxing unit is entirely contained
55	55	4 within a city or town; or
56	56	5 (2) the assessed valuation of a taxing unit is not entirely contained
57	57	6 within a city or town but:
58	58	7 (A) the taxing unit was originally established by the city or
59	59	8 town; or
60	60	9 (B) the majority of the individuals serving on the governing
61	61	10 body of the taxing unit are appointed by the city or town;
62	62	11 the governing body shall submit its proposed budget and property tax
63	63	12 levy to the city or town fiscal body. The proposed budget and levy shall
64	64	13 be submitted to the city or town fiscal body in the manner prescribed
65	65	14 by the department of local government finance before September 2 of
66	66	15 a year.
67	67	16 (d) If subsection (c) does not apply, the governing body of the taxing
68	68	17 unit shall submit its proposed budget and property tax levy to the
69	69	18 county fiscal body in the county where the taxing unit has the most
70	70	19 assessed valuation. The proposed budget and levy shall be submitted
71	71	20 to the county fiscal body in the manner prescribed by the department
72	72	21 of local government finance before September 2 of a year.
73	73	22 (e) The fiscal body of the city, town, or county (whichever applies)
74	74	23 shall review each budget and proposed tax levy and adopt a final
75	75	24 budget and tax levy for the taxing unit. The fiscal body may reduce or
76	76	25 modify but not increase the proposed budget or tax levy.
77	77	26 (f) If a taxing unit fails to file the information required in subsection
78	78	27 (c) or (d), whichever applies, with the appropriate fiscal body by the
79	79	28 time prescribed by this section, the most recent annual appropriations
80	80	29 and annual tax levy of that taxing unit are continued for the ensuing
81	81	30 budget year.
82	82	31 (g) If the appropriate fiscal body fails to complete the requirements
83	83	32 of subsection (e) before the adoption deadline in section 5 of this
84	84	33 chapter for any taxing unit subject to this section, the most recent
85	85	34 annual appropriations and annual tax levy of the city, town, or county,
86	86	35 whichever applies, are continued for the ensuing budget year.
87	87	36 SECTION 3. IC 6-1.1-17-20.3 IS REPEALED [EFFECTIVE JULY
88	88	37 1, 2025]. Sec. 20.3. (a) Except as provided in section 20.4 of this
89	89	38 chapter, this section applies only to the governing body of a public
90	90	39 library that:
91	91	40 (1) is not comprised of a majority of officials who are elected to
92	92	41 serve on the governing body; and
93	93	42 (2) has a percentage increase in the proposed budget for the
94	94	2025 IN 283—LS 6379/DI 116 3
95	95	1 taxing unit for the ensuing calendar year that is more than the
96	96	2 result of:
97	97	3 (A) the maximum levy growth quotient determined under
98	98	4 IC 6-1.1-18.5-2 for the ensuing calendar year, rounded to the
99	99	5 nearest thousandth (0.001); minus
100	100	6 (B) one (1).
101	101	7 For purposes of this section, an individual who qualifies to be
102	102	8 appointed to a governing body or serves on a governing body because
103	103	9 of the individual's status as an elected official of another taxing unit
104	104	10 shall be treated as an official who was not elected to serve on the
105	105	11 governing body.
106	106	12 (b) This section does not apply to an entity whose tax levies are
107	107	13 subject to review and modification by a city-county legislative body
108	108	14 under IC 36-3-6-9.
109	109	15 (c) If:
110	110	16 (1) the assessed valuation of a public library's territory is entirely
111	111	17 contained within a city or town; or
112	112	18 (2) the assessed valuation of a public library's territory is not
113	113	19 entirely contained within a city or town but more than fifty
114	114	20 percent (50%) of the assessed valuation of the public library's
115	115	21 territory is contained within the city or town;
116	116	22 the governing body shall submit its proposed budget and property tax
117	117	23 levy to the city or town fiscal body in the manner prescribed by the
118	118	24 department of local government finance before September 2 of a year.
119	119	25 However, the governing body shall submit its proposed budget and
120	120	26 property tax levy to the county fiscal body in the manner provided in
121	121	27 subsection (d), rather than to the city or town fiscal body, if more than
122	122	28 fifty percent (50%) of the parcels of real property within the
123	123	29 jurisdiction of the public library are located outside the city or town.
124	124	30 (d) If subsection (c) does not apply or the public library's territory
125	125	31 covers more than one (1) county, the governing body of the public
126	126	32 library shall submit its proposed budget and property tax levy to the
127	127	33 county fiscal body in the county where the public library has the most
128	128	34 assessed valuation. The proposed budget and levy shall be submitted
129	129	35 to the county fiscal body in the manner prescribed by the department
130	130	36 of local government finance before September 2 of a year.
131	131	37 (e) The fiscal body of the city, town, or county (whichever applies)
132	132	38 shall review each budget and proposed tax levy and adopt a final
133	133	39 budget and tax levy for the public library. The fiscal body may reduce
134	134	40 or modify but not increase the proposed budget or tax levy.
135	135	41 (f) If a public library fails to file the information required in
136	136	42 subsection (c) or (d), whichever applies, with the appropriate fiscal
137	137	2025 IN 283—LS 6379/DI 116 4
138	138	1 body by the time prescribed by this section, the most recent annual
139	139	2 appropriations and annual tax levy of that public library are continued
140	140	3 for the ensuing budget year.
141	141	4 (g) If the appropriate fiscal body fails to complete the requirements
142	142	5 of subsection (e) before the adoption deadline in section 5 of this
143	143	6 chapter for any public library subject to this section, the most recent
144	144	7 annual appropriations and annual tax levy of the city, town, or county,
145	145	8 whichever applies, are continued for the ensuing budget year.
146	146	9 SECTION 4. IC 6-1.1-17-20.4 IS REPEALED [EFFECTIVE JULY
147	147	10 1, 2025]. Sec. 20.4. (a) This section applies only if on December 31, as
148	148	11 reported in the public library's annual report under IC 5-11-1-4, the
149	149	12 cash balance of all funds of the public library derived from tax revenue
150	150	13 is greater than one hundred fifty percent (150%) of the public library's
151	151	14 certified budget for the ensuing year.
152	152	15 (b) If section 20.3(a)(2) of this chapter does not apply, the fiscal
153	153	16 body of a city, town, or county may adopt a resolution to require the
154	154	17 public library to submit its proposed budget and property tax levy to the
155	155	18 city, town, or county fiscal body as set forth in section 20.3(c) or
156	156	19 20.3(d) of this chapter (whichever is applicable) for binding review and
157	157	20 approval as set forth under section 20.3 of this chapter. However, the
158	158	21 fiscal body of the city, town, or county may not reduce a public library's
159	159	22 proposed budget or tax levy in a budget year under this section by more
160	160	23 than ten percent (10%) of the public library's operating levy in the
161	161	24 immediately preceding budget year.
162	162	25 (c) A resolution may be adopted under this section not later than
163	163	26 July 1. A resolution adopted under this section remains in full force and
164	164	27 effect until the December 31 cash balance of all funds of the public
165	165	28 library derived from tax revenue, as reported in the public library's
166	166	29 annual report under IC 5-11-1-4, no longer exceed one hundred fifty
167	167	30 percent (150%) of the public library's certified budget for the ensuing
168	168	31 year.
169	169	32 (d) Before a fiscal body may adopt a resolution under this section,
170	170	33 the fiscal body must hold a public hearing on the proposed resolution
171	171	34 and provide the public with notice of the time and place where the
172	172	35 public hearing will be held. The notice required by this subsection must
173	173	36 be given in accordance with IC 5-3-1 and include the proposed
174	174	37 resolution. In addition to the notice required by this subsection, the
175	175	38 fiscal body shall also provide a copy of the notice to all taxing units in
176	176	39 the city, town, or county at least thirty (30) days before the public
177	177	40 hearing.
178	178	41 (e) A resolution adopted by a fiscal body under this section shall be
179	179	42 submitted to:
180	180	2025 IN 283—LS 6379/DI 116 5
181	181	1 (1) the department of local government finance; and
182	182	2 (2) the public library;
183	183	3 not later than five (5) days after the date the resolution is adopted.
184	184	4 SECTION 5. IC 6-1.1-17-20.5, AS AMENDED BY P.L.113-2010,
185	185	5 SECTION 30, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
186	186	6 JULY 1, 2025]: Sec. 20.5. (a) This section applies to the governing
187	187	7 body of a taxing unit unless a majority of the governing body is
188	188	8 comprised of officials who are elected to serve on the governing body.
189	189	9 For purposes of this section, an individual who qualifies to be
190	190	10 appointed to a governing body or serves on a governing body because
191	191	11 of the individual's status as an elected official of another taxing unit
192	192	12 shall be treated as an official who was not elected to serve on the
193	193	13 governing body.
194	194	14 (b) As used in this section, "taxing unit" has the meaning set forth
195	195	15 in IC 6-1.1-1-21, except that the term does not include:
196	196	16 (1) a school corporation; or
197	197	17 (2) an entity whose tax levies are subject to review and
198	198	18 modification by a city-county legislative body under IC 36-3-6-9.
199	199	19 (c) If:
200	200	20 (1) the assessed valuation of a taxing unit is entirely contained
201	201	21 within a city or town; or
202	202	22 (2) the assessed valuation of a taxing unit is not entirely contained
203	203	23 within a city or town but the taxing unit was originally established
204	204	24 by the city or town;
205	205	25 the governing body of the taxing unit may not issue bonds or enter into
206	206	26 a lease payable in whole or in part from property taxes unless it obtains
207	207	27 the approval of the city or town fiscal body.
208	208	28 (d) However, in the case of a public library that is subject to this
209	209	29 section and is described in subsection (c), the public library may not
210	210	30 issue bonds or enter into a lease payable in whole or in part from
211	211	31 property taxes unless it obtains the approval of the county fiscal body,
212	212	32 rather than the city or town fiscal body, if more than fifty percent (50%)
213	213	33 of the parcels of real property within the jurisdiction of the public
214	214	34 library are located outside the city or town. The requirement that the
215	215	35 public library must obtain the approval of the county fiscal body (rather
216	216	36 than the city or town fiscal body) if more than fifty percent (50%) of
217	217	37 the parcels of real property within the jurisdiction of the public library
218	218	38 are located outside the city or town does not apply to the issuance of
219	219	39 bonds or the execution of a lease:
220	220	40 (1) for which a decision or preliminary determination was made
221	221	41 under IC 6-1.1-20 before December 31, 2010; or
222	222	42 (2) that is approved by the city or town fiscal body or the county
223	223	2025 IN 283—LS 6379/DI 116 6
224	224	1 fiscal body before December 31, 2010.
225	225	2 (e) (d) This subsection applies to a taxing unit not described in
226	226	3 subsection (c). or (d). The governing body of the taxing unit may not
227	227	4 issue bonds or enter into a lease payable in whole or in part from
228	228	5 property taxes unless it obtains the approval of the county fiscal body
229	229	6 in the county where the taxing unit has the most net assessed valuation.
230	230	7 SECTION 6. IC 6-1.1-17-20.6 IS REPEALED [EFFECTIVE JULY
231	231	8 1, 2025]. Sec. 20.6. (a) Each public library shall identify the applicable
232	232	9 city, town, or county fiscal body that receives a public library's
233	233	10 proposed budget as provided in section 20.3(c) or 20.3(d) of this
234	234	11 chapter.
235	235	12 (b) Not later than October 1, 2020, a public library shall report the
236	236	13 applicable city, town, or county fiscal body identified under subsection
237	237	14 (a) to the Indiana state library. The report submitted to the state library
238	238	15 must contain:
239	239	16 (1) the name of the public library;
240	240	17 (2) the appropriate fiscal body of a city, town, or county to review
241	241	18 a library budget under section 20.3(c) or 20.3(d) of this chapter;
242	242	19 and
243	243	20 (3) after adoption by the respective board, the signatures of the
244	244	21 public library board president and the appropriate fiscal body
245	245	22 president.
246	246	23 The Indiana state library shall provide the information submitted to the
247	247	24 Indiana state library under this subsection to the department of local
248	248	25 government finance by not later than November 1, 2020.
249	249	26 (c) If a fiscal body, other than the fiscal body identified by the
250	250	27 public library under subsection (a), objects to the public library's
251	251	28 determination under subsection (a), the objecting fiscal body may
252	252	29 submit a formal objection to:
253	253	30 (1) the Indiana state library;
254	254	31 (2) the public library; and
255	255	32 (3) the fiscal body identified under subsection (a) by the public
256	256	33 library.
257	257	34 (d) If a public library:
258	258	35 (1) is unable to identify the applicable fiscal body under
259	259	36 subsection (a);
260	260	37 (2) does not complete the reporting requirements established in
261	261	38 subsection (b); or
262	262	39 (3) has a formal objection filed under subsection (c) against the
263	263	40 public library's fiscal body designation under subsection (a);
264	264	41 the public library shall file an original action seeking a declaratory
265	265	42 judgment in a court with jurisdiction to identify the appropriate fiscal
266	266	2025 IN 283—LS 6379/DI 116 7
267	267	1 body. The public library shall file a copy of the declaratory judgment
268	268	2 with the Indiana state library within thirty (30) days of the court's entry
269	269	3 of judgment.
270	270	4 (e) The Indiana state library shall provide the information submitted
271	271	5 to the Indiana state library under subsection (b) to the department of
272	272	6 local government finance by not later than November 1, 2020.
273	273	7 (f) If there is a change in the territory of the public library:
274	274	8 (1) the public library shall submit a report under subsection (b) to
275	275	9 the Indiana state library not later than October 1; and
276	276	10 (2) the Indiana state library shall report the information under
277	277	11 subsection (b) to the department of local government finance not
278	278	12 later than November 1;
279	279	13 in the year the change in territory becomes effective. Subsections (c)
280	280	14 and (d) apply to the public library and to any fiscal body that objects to
281	281	15 the public library's designation under subsection (a).
282	282	16 SECTION 7. IC 6-1.1-18-5, AS AMENDED BY P.L.38-2021,
283	283	17 SECTION 30, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
284	284	18 JULY 1, 2025]: Sec. 5. (a) If the proper officers of a political
285	285	19 subdivision desire to appropriate more money for a particular year than
286	286	20 the amount prescribed in the budget for that year as finally determined
287	287	21 under this article, they shall give notice of their proposed additional
288	288	22 appropriation. The notice shall state the time and place at which a
289	289	23 public hearing will be held on the proposal. The notice shall be given
290	290	24 once in accordance with IC 5-3-1-2(b).
291	291	25 (b) If the additional appropriation by the political subdivision is
292	292	26 made from a fund for which the budget, rate, or levy is certified by the
293	293	27 department of local government finance under IC 6-1.1-17-16, the
294	294	28 political subdivision must report the additional appropriation to the
295	295	29 department of local government finance in the manner prescribed by
296	296	30 the department of local government finance. If the additional
297	297	31 appropriation is made from a fund described under this subsection,
298	298	32 subsections (f), (g), (h), and (i) apply to the political subdivision.
299	299	33 (c) However, if the additional appropriation is not made from a fund
300	300	34 described under subsection (b), subsections (f), (g), (h), and (i) do not
301	301	35 apply to the political subdivision. Subsections (f), (g), (h), and (i) do
302	302	36 not apply to an additional appropriation made from the cumulative
303	303	37 bridge fund if the appropriation meets the requirements under
304	304	38 IC 8-16-3-3(c).
305	305	39 (d) A political subdivision may make an additional appropriation
306	306	40 without approval of the department of local government finance if the
307	307	41 additional appropriation is made from a fund that is not described
308	308	42 under subsection (b). However, the fiscal officer of the political
309	309	2025 IN 283—LS 6379/DI 116 8
310	310	1 subdivision shall report the additional appropriation to the department
311	311	2 of local government finance.
312	312	3 (e) Subject to subsections subsection (j), and (k), after the public
313	313	4 hearing, the proper officers of the political subdivision shall file a
314	314	5 certified copy of their final proposal and any other relevant information
315	315	6 to the department of local government finance not later than fifteen
316	316	7 (15) days after the additional appropriation is adopted by the
317	317	8 appropriate fiscal body. If the additional appropriation is not submitted
318	318	9 to the department of local government finance within fifteen (15) days
319	319	10 after adoption, the department of local government finance may require
320	320	11 the political subdivision to conduct a readoption hearing.
321	321	12 (f) When the department of local government finance receives a
322	322	13 certified copy of a proposal for an additional appropriation under
323	323	14 subsection (e), the department shall determine whether sufficient funds
324	324	15 are available or will be available for the proposal. The determination
325	325	16 shall be made in writing and sent to the political subdivision not more
326	326	17 than fifteen (15) days after the department of local government finance
327	327	18 receives the proposal.
328	328	19 (g) In making the determination under subsection (f), the
329	329	20 department of local government finance shall limit the amount of the
330	330	21 additional appropriation to revenues available, or to be made available,
331	331	22 which have not been previously appropriated.
332	332	23 (h) If the department of local government finance disapproves an
333	333	24 additional appropriation under subsection (f), the department shall
334	334	25 specify the reason for its disapproval on the determination sent to the
335	335	26 political subdivision.
336	336	27 (i) A political subdivision may request a reconsideration of a
337	337	28 determination of the department of local government finance under this
338	338	29 section by filing a written request for reconsideration. A request for
339	339	30 reconsideration must:
340	340	31 (1) be filed with the department of local government finance
341	341	32 within fifteen (15) days of the receipt of the determination by the
342	342	33 political subdivision; and
343	343	34 (2) state with reasonable specificity the reason for the request.
344	344	35 The department of local government finance must act on a request for
345	345	36 reconsideration within fifteen (15) days of receiving the request.
346	346	37 (j) This subsection applies to an additional appropriation by a
347	347	38 political subdivision that must have the political subdivision's annual
348	348	39 appropriations and annual tax levy adopted by a city, town, or county
349	349	40 fiscal body under IC 6-1.1-17-20 or IC 36-1-23 or by a legislative or
350	350	41 fiscal body under IC 36-3-6-9. The fiscal or legislative body of the city,
351	351	42 town, or county that adopted the political subdivision's annual
352	352	2025 IN 283—LS 6379/DI 116 9
353	353	1 appropriation and annual tax levy must adopt the additional
354	354	2 appropriation by ordinance before the department of local government
355	355	3 finance may approve the additional appropriation.
356	356	4 (k) This subsection applies to a public library that is not required to
357	357	5 submit the public library's budgets, tax rates, and tax levies for binding
358	358	6 review and approval under IC 6-1.1-17-20 or IC 6-1.1-17-20.4. If a
359	359	7 public library subject to this subsection proposes to make an additional
360	360	8 appropriation for a year, and the additional appropriation would result
361	361	9 in the budget for the library for that year increasing (as compared to the
362	362	10 previous year) by a percentage that is greater than the result of the
363	363	11 maximum levy growth quotient determined under IC 6-1.1-18.5-2 for
364	364	12 the calendar year minus one (1), the additional appropriation must first
365	365	13 be approved by the city, town, or county fiscal body described in
366	366	14 IC 6-1.1-17-20.3(c) or IC 6-1.1-17-20.3(d), as appropriate.
367	367	15 (l) (k) This subsection applies to an appropriation for which the
368	368	16 underlying purpose is a bond issue. The political subdivision shall
369	369	17 include the appropriation for the bond proceeds in the budget of the
370	370	18 political subdivision for the ensuing year adopted under IC 6-1.1-17.
371	371	19 If the political subdivision does not include the appropriation for the
372	372	20 bond proceeds as required by this subsection, the political subdivision
373	373	21 shall comply with the requirements of this section in the year in which
374	374	22 the bond proceeds are received, but may not take an action pursuant to
375	375	23 this section in a year before the year in which the bond proceeds are
376	376	24 received.
377	377	25 SECTION 8. IC 6-1.1-18-5, AS AMENDED BY P.L.156-2024,
378	378	26 SECTION 14, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
379	379	27 JANUARY 1, 2026]: Sec. 5. (a) If the proper officers of a political
380	380	28 subdivision desire to appropriate more money for a particular year than
381	381	29 the amount prescribed in the budget for that year as finally determined
382	382	30 under this article, they shall hold a public hearing after submitting the
383	383	31 following information regarding the proposed additional appropriation
384	384	32 to the department's computer gateway:
385	385	33 (1) The amount of the additional appropriation.
386	386	34 (2) The name of the affected fund.
387	387	35 (3) The name and account number of the affected account.
388	388	36 (4) The date, time, and place at which the political subdivision or
389	389	37 appropriate fiscal body will hold a public hearing on the proposed
390	390	38 additional appropriation.
391	391	39 (b) If the additional appropriation by the political subdivision is
392	392	40 made from a fund for which the budget, rate, or levy is certified by the
393	393	41 department of local government finance under IC 6-1.1-17-16, the
394	394	42 political subdivision must report the additional appropriation to the
395	395	2025 IN 283—LS 6379/DI 116 10
396	396	1 department of local government finance in the manner prescribed by
397	397	2 the department of local government finance. If the additional
398	398	3 appropriation is made from a fund described under this subsection,
399	399	4 subsections (f), (g), (h), and (i) apply to the political subdivision.
400	400	5 (c) However, if the additional appropriation is not made from a fund
401	401	6 described under subsection (b), subsections (f), (g), (h), and (i) do not
402	402	7 apply to the political subdivision. Subsections (f), (g), (h), and (i) do
403	403	8 not apply to an additional appropriation made from the cumulative
404	404	9 bridge fund if the appropriation meets the requirements under
405	405	10 IC 8-16-3-3(c).
406	406	11 (d) A political subdivision may make an additional appropriation
407	407	12 without approval of the department of local government finance if the
408	408	13 additional appropriation is made from a fund that is not described
409	409	14 under subsection (b). However, the fiscal officer of the political
410	410	15 subdivision shall report the additional appropriation to the department
411	411	16 of local government finance.
412	412	17 (e) Subject to subsections subsection (j), and (k), after the public
413	413	18 hearing, the proper officers of the political subdivision shall file a
414	414	19 certified copy of their final proposal and any other relevant information
415	415	20 to the department of local government finance not later than fifteen
416	416	21 (15) days after the additional appropriation is adopted by the
417	417	22 appropriate fiscal body. If the additional appropriation is not submitted
418	418	23 to the department of local government finance within fifteen (15) days
419	419	24 after adoption, the department of local government finance may require
420	420	25 the political subdivision to conduct a readoption hearing.
421	421	26 (f) When the department of local government finance receives a
422	422	27 certified copy of a proposal for an additional appropriation under
423	423	28 subsection (e), the department shall determine whether sufficient funds
424	424	29 are available or will be available for the proposal. The determination
425	425	30 shall be made in writing and sent to the political subdivision not more
426	426	31 than fifteen (15) days after the department of local government finance
427	427	32 receives the proposal.
428	428	33 (g) In making the determination under subsection (f), the
429	429	34 department of local government finance shall limit the amount of the
430	430	35 additional appropriation to revenues available, or to be made available,
431	431	36 which have not been previously appropriated.
432	432	37 (h) If the department of local government finance disapproves an
433	433	38 additional appropriation under subsection (f), the department shall
434	434	39 specify the reason for its disapproval on the determination sent to the
435	435	40 political subdivision.
436	436	41 (i) A political subdivision may request a reconsideration of a
437	437	42 determination of the department of local government finance under this
438	438	2025 IN 283—LS 6379/DI 116 11
439	439	1 section by filing a written request for reconsideration. A request for
440	440	2 reconsideration must:
441	441	3 (1) be filed with the department of local government finance
442	442	4 within fifteen (15) days of the receipt of the determination by the
443	443	5 political subdivision; and
444	444	6 (2) state with reasonable specificity the reason for the request.
445	445	7 The department of local government finance must act on a request for
446	446	8 reconsideration within fifteen (15) days of receiving the request.
447	447	9 (j) This subsection applies to an additional appropriation by a
448	448	10 political subdivision that must have the political subdivision's annual
449	449	11 appropriations and annual tax levy adopted by a city, town, or county
450	450	12 fiscal body under IC 6-1.1-17-20 or IC 36-1-23 or by a legislative or
451	451	13 fiscal body under IC 36-3-6-9. The fiscal or legislative body of the city,
452	452	14 town, or county that adopted the political subdivision's annual
453	453	15 appropriation and annual tax levy must adopt the additional
454	454	16 appropriation by ordinance before the department of local government
455	455	17 finance may approve the additional appropriation.
456	456	18 (k) This subsection applies to a public library that is not required to
457	457	19 submit the public library's budgets, tax rates, and tax levies for binding
458	458	20 review and approval under IC 6-1.1-17-20 or IC 6-1.1-17-20.4. If a
459	459	21 public library subject to this subsection proposes to make an additional
460	460	22 appropriation for a year, and the additional appropriation would result
461	461	23 in the budget for the library for that year increasing (as compared to the
462	462	24 previous year) by a percentage that is greater than the result of the
463	463	25 maximum levy growth quotient determined under IC 6-1.1-18.5-2 for
464	464	26 the calendar year minus one (1), the additional appropriation must first
465	465	27 be approved by the city, town, or county fiscal body described in
466	466	28 IC 6-1.1-17-20.3(c) or IC 6-1.1-17-20.3(d), as appropriate.
467	467	29 (l) (k) This subsection applies to an appropriation for which the
468	468	30 underlying purpose is a bond issue. The political subdivision shall
469	469	31 include the appropriation for the bond proceeds in the budget of the
470	470	32 political subdivision for the ensuing year adopted under IC 6-1.1-17.
471	471	33 If the political subdivision does not include the appropriation for the
472	472	34 bond proceeds as required by this subsection, the political subdivision
473	473	35 shall comply with the requirements of this section in the year in which
474	474	36 the bond proceeds are received, but may not take an action pursuant to
475	475	37 this section in a year before the year in which the bond proceeds are
476	476	38 received.
477	477	39 (m) (l) The proper officers of a political subdivision shall submit the
478	478	40 information described in subsection (a)(1) through (a)(4), in a manner
479	479	41 prescribed by the department, to the department's computer gateway at
480	480	42 least fourteen (14) days prior to the public hearing. The department
481	481	2025 IN 283—LS 6379/DI 116 12
482	482	1 shall make the information submitted by the political subdivision
483	483	2 available to taxpayers through the department's computer gateway at
484	484	3 least ten (10) days prior to the public hearing. If the date, time, or place
485	485	4 of the public hearing changes following the original submission of the
486	486	5 information to the department's computer gateway, the political
487	487	6 subdivision shall submit the updated information to the department's
488	488	7 computer gateway as soon as possible.
489	489	8 SECTION 9. IC 6-1.1-18.5-12, AS AMENDED BY P.L.156-2024,
490	490	9 SECTION 16, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
491	491	10 JULY 1, 2025]: Sec. 12. (a) Any civil taxing unit that determines that
492	492	11 it cannot carry out its governmental functions for an ensuing calendar
493	493	12 year under the levy limitations imposed by section 3 or 25 of this
494	494	13 chapter, as applicable, may, subject to subsections (h) and (i):
495	495	14 (1) before October 20 of the calendar year immediately preceding
496	496	15 the ensuing calendar year; or
497	497	16 (2) in the case of a request described in section 16 of this chapter,
498	498	17 before December 31 of the calendar year immediately preceding
499	499	18 the ensuing calendar year;
500	500	19 appeal to the department of local government finance for relief from
501	501	20 those levy limitations. In the appeal the civil taxing unit must state that
502	502	21 it will be unable to carry out the governmental functions committed to
503	503	22 it by law unless it is given the authority that it is petitioning for. The
504	504	23 civil taxing unit must support these allegations by reasonably detailed
505	505	24 statements of fact.
506	506	25 (b) The department of local government finance shall immediately
507	507	26 proceed to the examination and consideration of the merits of the civil
508	508	27 taxing unit's appeal.
509	509	28 (c) In considering an appeal, the department of local government
510	510	29 finance has the power to conduct hearings, require any officer or
511	511	30 member of the appealing civil taxing unit to appear before it, or require
512	512	31 any officer or member of the appealing civil taxing unit to provide the
513	513	32 department with any relevant records or books.
514	514	33 (d) If an officer or member:
515	515	34 (1) fails to appear at a hearing after having been given written
516	516	35 notice requiring that person's attendance; or
517	517	36 (2) fails to produce the books and records that the department by
518	518	37 written notice required the officer or member to produce;
519	519	38 then the department may file an affidavit in the circuit court, superior
520	520	39 court, or probate court in the jurisdiction in which the officer or
521	521	40 member may be found setting forth the facts of the failure.
522	522	41 (e) Upon the filing of an affidavit under subsection (d), the court
523	523	42 shall promptly issue a summons, and the sheriff of the county within
524	524	2025 IN 283—LS 6379/DI 116 13
525	525	1 which the court is sitting shall serve the summons. The summons must
526	526	2 command the officer or member to appear before the department to
527	527	3 provide information to the department or to produce books and records
528	528	4 for the department's use, as the case may be. Disobedience of the
529	529	5 summons constitutes, and is punishable as, a contempt of the court that
530	530	6 issued the summons.
531	531	7 (f) All expenses incident to the filing of an affidavit under
532	532	8 subsection (d) and the issuance and service of a summons shall be
533	533	9 charged to the officer or member against whom the summons is issued,
534	534	10 unless the court finds that the officer or member was acting in good
535	535	11 faith and with reasonable cause. If the court finds that the officer or
536	536	12 member was acting in good faith and with reasonable cause or if an
537	537	13 affidavit is filed and no summons is issued, the expenses shall be
538	538	14 charged against the county in which the affidavit was filed and shall be
539	539	15 allowed by the proper fiscal officers of that county.
540	540	16 (g) The fiscal officer of a civil taxing unit that appeals under section
541	541	17 16 of this chapter for relief from levy limitations shall immediately file
542	542	18 a copy of the appeal petition with the county auditor and the county
543	543	19 treasurer of the county in which the unit is located.
544	544	20 (h) This subsection applies to a civil taxing unit whose budget for
545	545	21 the upcoming year is subject to review by a fiscal body under
546	546	22 (1) IC 6-1.1-17-20.
547	547	23 (2) IC 6-1.1-17-20.3; or
548	548	24 (3) IC 6-1.1-17-20.4.
549	549	25 A civil taxing unit described in this subsection may not submit an
550	550	26 appeal under this section unless the civil taxing unit receives approval
551	551	27 from the appropriate fiscal body to submit the appeal.
552	552	28 (i) A participating unit of a fire protection territory may not submit
553	553	29 an appeal under this section unless each participating unit of the fire
554	554	30 protection territory has adopted a resolution approving submission of
555	555	31 the appeal.
556	556	32 SECTION 10. IC 6-6-5-10.5 IS AMENDED TO READ AS
557	557	33 FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 10.5. The county
558	558	34 auditor shall, not later than August first of each year, furnish to the
559	559	35 proper officer of each municipal corporation an estimate of the
560	560	36 amounts to be distributed to the taxing units under this chapter during
561	561	37 the next calendar year and the budget of each such municipal
562	562	38 corporation shall show the estimated amounts to be received for each
563	563	39 fund for which a property tax is proposed to be levied. The term
564	564	40 "municipal corporation" shall mean any county, city, town, township,
565	565	41 school corporation, public library or other taxing district.
566	566	42 SECTION 11. IC 36-3-6-9, AS AMENDED BY P.L.137-2012,
567	567	2025 IN 283—LS 6379/DI 116 14
568	568	1 SECTION 118, IS AMENDED TO READ AS FOLLOWS
569	569	2 [EFFECTIVE JULY 1, 2025]: Sec. 9. (a) Except as provided in
570	570	3 subsection (d), the city-county legislative body shall review the
571	571	4 proposed operating and maintenance budgets and tax levies and adopt
572	572	5 final operating and maintenance budgets and tax levies for each of the
573	573	6 following entities in the county:
574	574	7 (1) An airport authority operating under IC 8-22-3.
575	575	8 (2) A public library operating under IC 36-12.
576	576	9 (3) (2) A capital improvement board of managers operating under
577	577	10 IC 36-10.
578	578	11 (4) (3) A public transportation corporation operating under
579	579	12 IC 36-9-4.
580	580	13 (5) (4) A health and hospital corporation established under
581	581	14 IC 16-22-8.
582	582	15 (6) (5) Any other taxing unit (as defined in IC 6-1.1-1-21) that is
583	583	16 located in the county and has a governing body that is not
584	584	17 comprised of a majority of officials who are elected to serve on
585	585	18 the governing body.
586	586	19 Except as provided in subsection (c), the city-county legislative body
587	587	20 may reduce or modify but not increase a proposed operating and
588	588	21 maintenance budget or tax levy under this section.
589	589	22 (b) The board of each entity listed in subsection (a) shall, after
590	590	23 adoption of its proposed budget and tax levies, submit them, along with
591	591	24 detailed accounts, to the city clerk before September 2.
592	592	25 (c) The city-county legislative body or, when subsection (d) applies,
593	593	26 the fiscal body of an excluded city or town shall review the issuance of
594	594	27 bonds of an entity listed in subsection (a). Approval of the city-county
595	595	28 legislative body or, when subsection (d) applies, the fiscal body of an
596	596	29 excluded city or town is required for the issuance of bonds. The
597	597	30 city-county legislative body or the fiscal body of an excluded city or
598	598	31 town may not reduce or modify a budget or tax levy of an entity listed
599	599	32 in subsection (a) in a manner that would:
600	600	33 (1) limit or restrict the rights vested in the entity to fulfill the
601	601	34 terms of any agreement made with the holders of the entity's
602	602	35 bonds; or
603	603	36 (2) in any way impair the rights or remedies of the holders of the
604	604	37 entity's bonds.
605	605	38 (d) If the assessed valuation of a taxing unit is entirely contained
606	606	39 within an excluded city or town (as described in IC 36-3-1-7) that is
607	607	40 located in a county having a consolidated city, the governing body of
608	608	41 the taxing unit shall submit its proposed operating and maintenance
609	609	42 budget and tax levies to the city or town fiscal body for approval and
610	610	2025 IN 283—LS 6379/DI 116 15
611	611	1 not the city-county legislative body. Except as provided in subsection
612	612	2 (c), the fiscal body of the excluded city or town may reduce or modify
613	613	3 but not increase a proposed operating and maintenance budget or tax
614	614	4 levy under this section.
615	615	5 SECTION 12. IC 36-12-1-3, AS ADDED BY P.L.1-2005,
616	616	6 SECTION 49, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
617	617	7 JULY 1, 2025]: Sec. 3. "Library board" means the fiscal and
618	618	8 administrative body of a public library.
619	619	9 SECTION 13. IC 36-12-1-10, AS ADDED BY P.L.1-2005,
620	620	10 SECTION 49, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
621	621	11 JULY 1, 2025]: Sec. 10. (a) A Class 2 library may convert to Class 1
622	622	12 status if the Class 2 library board passes the following resolution of
623	623	13 conversion:
624	624	14 "__________ Public Library, by action of its library board,
625	625	15 resolves to convert to a Class 1 library district subject to
626	626	16 IC 36-12-2.".
627	627	17 (b) The resolution of conversion:
628	628	18 (1) must describe the territory included in the library district; and
629	629	19 (2) is irrevocable.
630	630	20 (c) The resolution of conversion must be signed by a majority of
631	631	21 library board members. Not later than five (5) days after approving the
632	632	22 resolution of conversion, the library board shall file a copy of the
633	633	23 resolution of conversion:
634	634	24 (1) in the office of the county recorder in the county where the
635	635	25 administrative office of the public library is located; and
636	636	26 (2) with the Indiana state library.
637	637	27 (d) The library board shall give notice of the resolution of
638	638	28 conversion to all officials who have appointive powers under
639	639	29 IC 36-12-2.
640	640	30 (e) The officials under subsection (d) shall appoint a library board
641	641	31 for the public library. Members of the old library board shall continue
642	642	32 to serve as library board members until:
643	643	33 (1) a majority of the new library board has been appointed; and
644	644	34 (2) the new appointees have taken an oath of office to serve on the
645	645	35 library board.
646	646	36 (f) Upon the:
647	647	37 (1) filing of the resolution of conversion;
648	648	38 (2) appointments under IC 36-12-2; and
649	649	39 (3) oath of office of the new library board under IC 36-12-2-19;
650	650	40 any current tax levies continue under authority granted to the Class 2
651	651	41 library before July 1, 2025, until the next succeeding calendar year, at
652	652	42 which time the tax provisions for Class 1 libraries under IC 36-12-3-12
653	653	2025 IN 283—LS 6379/DI 116 16
654	654	1 apply before July 1, 2025, and after June 30, 2025, the tax
655	655	2 provisions for Class 1 libraries under IC 36-12-3-12.1 and
656	656	3 IC 36-12-3-12.2 apply.
657	657	4 (g) The obligation of a political subdivision to levy and collect taxes
658	658	5 for library purposes remains effective after the conversion.
659	659	6 SECTION 14. IC 36-12-2-2, AS ADDED BY P.L.1-2005,
660	660	7 SECTION 49, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
661	661	8 JULY 1, 2025]: Sec. 2. (a) A Class 1 public library is a municipal
662	662	9 corporation, known as __________ Public Library.
663	663	10 (b) In the name of the Class 1 public library under subsection (a),
664	664	11 the public library may:
665	665	12 (1) contract and be contracted with; and
666	666	13 (2) sue and be sued in court.
667	667	14 (c) Before January 1, 2026, each public library constitutes an
668	668	15 independent taxing unit for purposes of IC 6-1.1-1-21.
669	669	16 SECTION 15. IC 36-12-2-15, AS AMENDED BY P.L.104-2022,
670	670	17 SECTION 229, IS AMENDED TO READ AS FOLLOWS
671	671	18 [EFFECTIVE JULY 1, 2025]: Sec. 15. (a) This section applies to the
672	672	19 library board of a library district:
673	673	20 (1) located in a county having a population of more than
674	674	21 seventy-nine thousand (79,000) and less than eighty thousand
675	675	22 (80,000); and
676	676	23 (2) containing all or part of the territory of each school
677	677	24 corporation in the county.
678	678	25 (b) Notwithstanding section 9 of this chapter, the library board has
679	679	26 the following members:
680	680	27 (1) One (1) member appointed by the executive of the county in
681	681	28 which the library district is located and who is not a member of
682	682	29 the county executive.
683	683	30 (2) One (1) member appointed by the fiscal body of the county in
684	684	31 which the library district is located and who is not a member of
685	685	32 the county fiscal body.
686	686	33 (3) One (1) member appointed by the legislative body of the most
687	687	34 populous city in the library district and who is not a member of
688	688	35 the city legislative body.
689	689	36 (4) One (1) member appointed by the school board of each school
690	690	37 corporation having territory in the library district and who is not
691	691	38 a member of a governing body of a school corporation.
692	692	39 (c) An individual who is appointed under subsection (b) to serve as
693	693	40 a member of a library board must, before March 1 of each year, report
694	694	41 to the member's appointing authority concerning the work of the library
695	695	42 board and finances of the library during the preceding calendar year,
696	696	2025 IN 283—LS 6379/DI 116 17
697	697	1 including the rate of taxation determined under IC 36-12-3-12 (before
698	698	2 July 1, 2025).
699	699	3 SECTION 16. IC 36-12-3-7, AS ADDED BY P.L.1-2005,
700	700	4 SECTION 49, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
701	701	5 JULY 1, 2025]: Sec. 7. (a) A library board may contract to provide or
702	702	6 receive library service from the following municipal corporations:
703	703	7 (1) Another public library.
704	704	8 (2) Any unit.
705	705	9 (b) A contract for library service between a public library and
706	706	10 another municipal corporation must outline the:
707	707	11 (1) manner and extent of library service; and
708	708	12 (2) amount of compensation for the extension of library service.
709	709	13 (c) This subsection does not apply to municipal corporations
710	710	14 described in section 8 of this chapter. A municipal corporation
711	711	15 receiving library service shall
712	712	16 (1) levy a tax sufficient to meet the amount of compensation
713	713	17 agreed upon under the contract; and
714	714	18 (2) expend all funds received under a contract for library services
715	715	19 chargeable to the contract.
716	716	20 For property taxes first due and payable after December 31, 2025,
717	717	21 the county fiscal body is the entity that shall levy the tax described
718	718	22 in subdivision (1) if the municipal corporation receiving the library
719	719	23 service is a public library.
720	720	24 SECTION 17. IC 36-12-3-8, AS AMENDED BY P.L.104-2022,
721	721	25 SECTION 230, IS AMENDED TO READ AS FOLLOWS
722	722	26 [EFFECTIVE JULY 1, 2025]: Sec. 8. (a) This section applies to
723	723	27 municipal corporations located in a county having a population of more
724	724	28 than thirty-five thousand nine hundred (35,900) and less than thirty-six
725	725	29 thousand (36,000).
726	726	30 (b) A municipal corporation receiving library service under section
727	727	31 7 of this chapter shall
728	728	32 (1) levy a tax sufficient to meet the amount of compensation
729	729	33 agreed on under the contract; or
730	730	34 (2) make the contract payments with revenue derived from a tax
731	731	35 being imposed before the contract is approved by the municipal
732	732	36 corporation, including the part of local income tax revenue that is
733	733	37 not required to be dedicated to providing property tax relief.
734	734	38 (c) A library board providing service shall expend all funds received
735	735	39 under a contract for library services chargeable to the contract.
736	736	40 SECTION 18. IC 36-12-3-10, AS ADDED BY P.L.1-2005,
737	737	41 SECTION 49, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
738	738	42 JULY 1, 2025]: Sec. 10. The library board may do the following:
739	739	2025 IN 283—LS 6379/DI 116 18
740	740	1 (1) Adopt a resolution to make loans or issue notes to refund the
741	741	2 loans in anticipation of revenues of the library that are expected
742	742	3 to be levied and collected or received during the term of the
743	743	4 loans. The term of a loan made under this subdivision may not be
744	744	5 more than five (5) years. Loans under this subdivision must be
745	745	6 made in the following manner:
746	746	7 (A) The resolution authorizing the loans must appropriate and
747	747	8 pledge to payment of the loans a sufficient amount of the
748	748	9 revenues in anticipation of which the loans are issued and out
749	749	10 of which the loans are payable.
750	750	11 (B) The loans must be evidenced by warrants or tax
751	751	12 anticipation notes of the library in terms designating:
752	752	13 (i) the nature of the consideration;
753	753	14 (ii) the time and place payable; and
754	754	15 (iii) the revenues in anticipation of which the loans are
755	755	16 issued and out of which the loans are payable.
756	756	17 (2) Borrow money from other persons.
757	757	18 (3) Issue, negotiate, and sell negotiable notes and bonds of the
758	758	19 public library.
759	759	20 (4) For taxes first due and payable in 2025 or before, levy,
760	760	21 assess, and collect, at the same time and in the same manner as
761	761	22 other taxes of the public library are levied, assessed, and
762	762	23 collected, a special tax in addition to the tax authorized by section
763	763	24 12 of this chapter, sufficient to pay all yearly interest on the
764	764	25 bonded and note indebtedness of the public library.
765	765	26 (5) Provide a sinking fund for the liquidation of the principal of
766	766	27 the bond when the principal of the bond becomes due.
767	767	28 (6) Receive, expend, or pledge tax revenue as set forth in this
768	768	29 chapter that the library receives from a special tax levy
769	769	30 assessed by the county to which a budget is submitted under
770	770	31 section 12.1 of this chapter.
771	771	32 SECTION 19. IC 36-12-3-11, AS ADDED BY P.L.1-2005,
772	772	33 SECTION 49, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
773	773	34 JULY 1, 2025]: Sec. 11. (a) A library board shall establish funds to
774	774	35 keep money and securities of the public library as follows:
775	775	36 (1) All money collected or received from tax levies, interest on
776	776	37 investments, fees, fines, rentals, and other revenues:
777	777	38 (A) shall be deposited into the library operating fund, except
778	778	39 as otherwise provided in this section; and
779	779	40 (B) must be budgeted and expended in the manner required by
780	780	41 law.
781	781	42 (2) All money received from the sale of bonds or other evidences
782	782	2025 IN 283—LS 6379/DI 116 19
783	783	1 of indebtedness for the purpose of construction, reconstruction, or
784	784	2 alteration of library buildings, except the premium and accrued
785	785	3 interest on the bonds, shall be deposited into the construction
786	786	4 fund. The money shall be appropriated and expended solely for
787	787	5 the purpose for which the indebtedness is created.
788	788	6 (3) All money derived from the taxes levied for the purpose of
789	789	7 retiring bonds or other evidence of indebtedness, and any
790	790	8 premium or accrued interest that may be received, shall be
791	791	9 deposited into the bond and interest redemption fund. The fund
792	792	10 shall be used for no other purpose than the repayment of
793	793	11 indebtedness.
794	794	12 (4) Money or securities may be accumulated in any library
795	795	13 improvement reserve fund to anticipate necessary future capital
796	796	14 expenditures, such as:
797	797	15 (A) the purchase of land;
798	798	16 (B) the purchase and construction of buildings or structures;
799	799	17 (C) the construction of additions or improvements to existing
800	800	18 structures;
801	801	19 (D) the purchase of equipment; and
802	802	20 (E) all repairs or replacement of buildings or equipment.
803	803	21 (5) Money or securities accepted and received by the library
804	804	22 board as a grant, a gift, a donation, an endowment, a bequest, or
805	805	23 a trust may be:
806	806	24 (A) set aside in a separate fund or funds and shall be
807	807	25 expended, without appropriation, in accordance with the
808	808	26 conditions and purposes specified by the donor; or
809	809	27 (B) set aside in an account with a nonprofit corporation
810	810	28 established for the sole purpose of building permanent
811	811	29 endowments within a community (referred to as a "community
812	812	30 foundation"). The earnings on the funds in the account, either:
813	813	31 (i) deposited by the library; or
814	814	32 (ii) accepted by the community foundation on behalf of the
815	815	33 library;
816	816	34 may be distributed back to the library for expenditure, without
817	817	35 appropriation, in accordance with the conditions and purposes
818	818	36 specified by the donor. A community foundation that
819	819	37 distributes earnings under this clause is not required to make
820	820	38 more than one (1) distribution of earnings in a calendar year.
821	821	39 (6) All money received in payment for library services or for
822	822	40 library purchases made or to be made under the terms of a
823	823	41 contract between two (2) or more public libraries under section 7
824	824	42 of this chapter shall be deposited into the contractual service fund.
825	825	2025 IN 283—LS 6379/DI 116 20
826	826	1 This money shall be:
827	827	2 (A) expended solely for the purposes specified in the contract;
828	828	3 and
829	829	4 (B) disbursed without further appropriation.
830	830	5 (b) The library board may invest excess funds in accordance with
831	831	6 IC 5-13-9.
832	832	7 SECTION 20. IC 36-12-3-12, AS AMENDED BY P.L.159-2020,
833	833	8 SECTION 84, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
834	834	9 JULY 1, 2025]: Sec. 12. (a) This section applies to a library board
835	835	10 before July 1, 2025.
836	836	11 (a) (b) The library board shall determine the rate of taxation for the
837	837	12 library district that is necessary for the proper operation of the library.
838	838	13 The library board shall certify the rate to the county auditor.
839	839	14 (c) An additional rate under this section may be levied under
840	840	15 section 10(4) of this chapter for taxes first due and payable in 2025
841	841	16 or before.
842	842	17 (b) (d) If the library board fails to:
843	843	18 (1) give:
844	844	19 (A) a first published notice to the board's taxpayers of the
845	845	20 board's proposed budget and tax levy for the ensuing year at
846	846	21 least ten (10) days before the public hearing required under
847	847	22 IC 6-1.1-17-3; and
848	848	23 (B) a second published notice to the board's taxpayers of the
849	849	24 board's proposed budget and tax levy for the ensuing year at
850	850	25 least three (3) days before the public hearing required under
851	851	26 IC 6-1.1-17-3; or
852	852	27 (2) finally adopt the budget and fix the tax levy not later than
853	853	28 November 1;
854	854	29 the last preceding annual appropriation made for the public library is
855	855	30 renewed for the ensuing year, and the last preceding annual tax levy is
856	856	31 continued. Under this subsection, the treasurer of the library board
857	857	32 shall report the continued tax levy to the county auditor not later than
858	858	33 November 1.
859	859	34 SECTION 21. IC 36-12-3-12.1 IS ADDED TO THE INDIANA
860	860	35 CODE AS A NEW SECTION TO READ AS FOLLOWS
861	861	36 [EFFECTIVE JULY 1, 2025]: Sec. 12.1. (a) This section applies to a
862	862	37 library board after June 30, 2025.
863	863	38 (b) The library board shall prepare and submit to the county
864	864	39 fiscal body a recommended annual budget for the public library.
865	865	40 The public library shall be limited in all expenditures to the
866	866	41 provisions made for the expenditures by the fiscal body of the
867	867	42 county in which the boundaries of the public library are located.
868	868	2025 IN 283—LS 6379/DI 116 21
869	869	1 (c) If the territory of the public library is located in more than
870	870	2 one (1) county, the library board shall prepare and submit an
871	871	3 annual budget under this section to each county fiscal body.
872	872	4 SECTION 22. IC 36-12-3-12.2 IS ADDED TO THE INDIANA
873	873	5 CODE AS A NEW SECTION TO READ AS FOLLOWS
874	874	6 [EFFECTIVE JULY 1, 2025]: Sec. 12.2. (a) This section applies to
875	875	7 budget years beginning after December 31, 2025, and property
876	876	8 taxes first due and payable after December 31, 2025.
877	877	9 (b) Except as provided in section 8 of this chapter, a public
878	878	10 library may not levy property taxes. However, the territory within
879	879	11 the boundaries of a public library comprises a special taxing
880	880	12 district for the purpose of levying special benefit taxes by the
881	881	13 county fiscal body for public library purposes under this chapter.
882	882	14 The special benefit taxes levied and collected shall be paid to the
883	883	15 public library.
884	884	16 (c) The fiscal body of the county or counties to which a budget
885	885	17 is submitted under section 12.1 of this chapter shall determine and
886	886	18 provide the revenues necessary for the operation and maintenance
887	887	19 of the public library by:
888	888	20 (1) a special tax levy;
889	889	21 (2) a specific appropriation; or
890	890	22 (3) both of the methods described in subdivisions (1) and (2).
891	891	23 (d) Any special tax levied by the county fiscal body under this
892	892	24 chapter shall include amounts necessary to continue payment of
893	893	25 any debt service or obligation incurred by the public library before
894	894	26 January 1, 2026, in accordance with the terms of the debt service
895	895	27 or obligation incurred.
896	896	28 (e) If the territory of the public library is located in more than
897	897	29 one (1) county, each respective county shall provide an amount of
898	898	30 the revenue:
899	899	31 (1) required for the public library as set forth under
900	900	32 subsection (c); and
901	901	33 (2) in proportion to the county's assessed value within the
902	902	34 public library territory compared to the total assessed value
903	903	35 of the public library territory.
904	904	36 (f) For purposes of the property tax levy limits under
905	905	37 IC 6-1.1-18.5, a special tax levied under this section is included in
906	906	38 the calculation of the maximum permissible property tax levy for
907	907	39 the county. For property taxes first due and payable in 2026, the
908	908	40 county's maximum permissible ad valorem property tax levy under
909	909	41 IC 6-1.1-18.5 shall be increased by:
910	910	42 (1) the public library's maximum permissible ad valorem
911	911	2025 IN 283—LS 6379/DI 116 22
912	912	1 property tax levy under IC 6-1.1-18.5 for property taxes first
913	913	2 due and payable in 2025; multiplied by
914	914	3 (2) the maximum levy growth quotient under IC 6-1.1-18.5-2
915	915	4 for property taxes first due and payable in 2026.
916	916	5 The county's maximum permissible ad valorem property tax levy
917	917	6 under IC 6-1.1-18.5 for property taxes first due and payable in
918	918	7 2026 as adjusted under this subsection shall be used in the
919	919	8 determination of the county's maximum permissible ad valorem
920	920	9 property tax levy under IC 6-1.1-18.5 for property taxes first due
921	921	10 and payable in 2027 and thereafter.
922	922	11 SECTION 23. IC 36-12-3-12.3 IS ADDED TO THE INDIANA
923	923	12 CODE AS A NEW SECTION TO READ AS FOLLOWS
924	924	13 [EFFECTIVE JULY 1, 2025]: Sec. 12.3. (a) This section applies to:
925	925	14 (1) local income tax distributions; and
926	926	15 (2) excise tax distributions;
927	927	16 that are made or are based on a special tax levy imposed by a
928	928	17 county fiscal body for a public library under this chapter.
929	929	18 (b) Local income tax distributions and excise tax distributions
930	930	19 described in subsection (a) shall be allocated to the public library
931	931	20 for which the special tax levy under this chapter was imposed and
932	932	21 shall not be allocated to the county.
933	933	22 SECTION 24. IC 36-12-4-4, AS ADDED BY P.L.1-2005,
934	934	23 SECTION 49, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
935	935	24 JULY 1, 2025]: Sec. 4. (a) A copy of the resolution adopting the
936	936	25 merger described in section 3(e) of this chapter must be filed with:
937	937	26 (1) the county recorder in each county in which merging library
938	938	27 districts are located; and
939	939	28 (2) the Indiana state library.
940	940	29 (b) After the resolution adopting the merger is filed, each library
941	941	30 board that is not the board of the primary library shall appoint four (4)
942	942	31 members to serve with the primary library board on an interim board.
943	943	32 (c) The interim board has the same duties and powers of a public
944	944	33 library board under IC 36-12-3.
945	945	34 (d) After the resolution adopting the merger is filed, the budgets of
946	946	35 the merging libraries shall be:
947	947	36 (1) combined for the remainder of the current year; and
948	948	37 (2) administered by the interim board.
949	949	38 (e) The interim board described in subsection (b) is dissolved on
950	950	39 December 31 of the year in which the merger takes place.
951	951	40 (f) The members of a merged library board shall be appointed under
952	952	41 IC 36-12-2, and the terms of office for the members of the merged
953	953	42 library board begin January 1 following the dissolution of the interim
954	954	2025 IN 283—LS 6379/DI 116 23
955	955	1 board.
956	956	2 (g) If a merger takes place after December 31 but before July 1 of
957	957	3 the ensuing year, the interim library board described in subsection (b)
958	958	4 shall present a new budget and tax rate to the department of local
959	959	5 government finance prepare and submit a new budget under
960	960	6 IC 36-12-3-12.1 to receive a new tax levy for the merged library
961	961	7 district.
962	962	8 (h) If a merger takes place after June 30 but before January 1 of the
963	963	9 ensuing year, the merged library board described in subsection (f) shall
964	964	10 present a new budget and tax rate to the department of local
965	965	11 government finance prepare and submit a new budget under
966	966	12 IC 36-12-3-12.1 to receive a new tax levy for the merged library
967	967	13 district.
968	968	14 SECTION 25. IC 36-12-7-6, AS ADDED BY P.L.1-2005,
969	969	15 SECTION 49, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
970	970	16 JULY 1, 2025]: Sec. 6. (a) A public library established as an 1852
971	971	17 subscription library is a municipal corporation and possesses the power
972	972	18 to:
973	973	19 (1) sue and be sued; and
974	974	20 (2) receive by donation books, money, paper, or other real or
975	975	21 personal property for the library.
976	976	22 (b) The shareholders of the 1852 subscription library are the
977	977	23 inhabitants of the municipality who have subscribed money for the
978	978	24 establishment of the library. The shareholders shall annually elect
979	979	25 seven (7) directors on the first Monday in January. However, if an
980	980	26 annual election is omitted, the directors remain in office until the next
981	981	27 annual election and until successors are chosen.
982	982	28 (c) The directors shall appoint one (1) director to be president at the
983	983	29 meetings. The president may vote only in case of a tie vote. A majority
984	984	30 of the directors constitutes a quorum. If a vacancy occurs among the
985	985	31 directors, the remaining directors shall elect a new director to fill the
986	986	32 vacancy, and the new director shall serve until the next annual election.
987	987	33 (d) The 1852 subscription library is governed by bylaws adopted by
988	988	34 the directors of the public library.
989	989	35 (e) The directors may adopt a common seal.
990	990	36 (f) The directors may levy a tax on the shareholders not to exceed
991	991	37 one dollar ($1) on each share during one (1) year. In addition, at the
992	992	38 annual meeting, the shareholders may increase the tax to a sum not to
993	993	39 exceed five dollars ($5) on each share during one (1) year. The
994	994	40 provisions in IC 36-12-3-12.1 and IC 36-12-3-12.2 do not apply to
995	995	41 a public library described in this section.
996	996	42 (g) The shareholders may:
997	997	2025 IN 283—LS 6379/DI 116 24
998	998	1 (1) appoint a treasurer and a librarian; or
999	999	2 (2) remove the treasurer or librarian;
1000	1000	3 at the pleasure of the shareholders.
1001	1001	4 SECTION 26. IC 36-12-7-7, AS AMENDED BY P.L.233-2015,
1002	1002	5 SECTION 348, IS AMENDED TO READ AS FOLLOWS
1003	1003	6 [EFFECTIVE JULY 1, 2025]: Sec. 7. (a) The library board of a library
1004	1004	7 established as an 1899 township library consists of the school township
1005	1005	8 trustee in the township where the library is located and two (2)
1006	1006	9 residents of the township who are appointed by the board of
1007	1007	10 commissioners of the county where the library is located.
1008	1008	11 Appointments are for a term of four (4) years. Members of the library
1009	1009	12 board serve without compensation.
1010	1010	13 (b) The library board:
1011	1011	14 (1) shall control the purchase of books and the management of the
1012	1012	15 library;
1013	1013	16 (2) shall possess and retain custody of any books remaining in the
1014	1014	17 old township library in the township where the library is located;
1015	1015	18 (3) may receive donations, bequests, and legacies on behalf of the
1016	1016	19 library; and
1017	1017	20 (4) may receive copies of all documents of the state available for
1018	1018	21 distribution from the director of the state library.
1019	1019	22 (c) The 1899 township library is the property of the township. The
1020	1020	23 township trustee is responsible for the safe preservation of the township
1021	1021	24 library.
1022	1022	25 (d) Two (2) or more adjacent townships may unite to maintain a
1023	1023	26 township library. The library is controlled by either:
1024	1024	27 (1) a combined library board, which consists of each of the
1025	1025	28 uniting township boards appointed under subsection (a); or
1026	1026	29 (2) the one (1) township library board appointed under subsection
1027	1027	30 (a) of the uniting townships that receives funding for the
1028	1028	31 operation of the uniting township library.
1029	1029	32 (e) The legislative body of any township that contains a library
1030	1030	33 established as an 1899 township library may levy a tax annually of not
1031	1031	34 more than three and thirty-three hundredths cents ($0.0333) on each
1032	1032	35 one hundred dollars ($100) of taxable property assessed for taxation in
1033	1033	36 the township. If the legislative body does not levy the tax, a petition
1034	1034	37 signed by at least the number of registered voters required under
1035	1035	38 IC 3-8-6-3 to place a candidate on the ballot may be filed with the
1036	1036	39 circuit court clerk, who:
1037	1037	40 (1) shall determine if an adequate number of voters have signed
1038	1038	41 the petition; and
1039	1039	42 (2) if an adequate number of voters have signed the petition, shall
1040	1040	2025 IN 283—LS 6379/DI 116 25
1041	1041	1 certify the public question to the county election board under
1042	1042	2 IC 3-10-9-3. The county election board shall then cause to be
1043	1043	3 printed on the ballot for the township the following question in
1044	1044	4 the form prescribed by IC 3-10-9-4: "Shall a township library tax
1045	1045	5 be levied?".
1046	1046	6 If a majority of the votes cast on the question in subdivision (2) are in
1047	1047	7 the affirmative, the township trustee shall annually levy a tax of not less
1048	1048	8 than one and sixty-seven hundredths cents ($0.0167) and not more than
1049	1049	9 three and thirty-three hundredths cents ($0.0333) on each one hundred
1050	1050	10 dollars ($100) of taxable property in the township for the establishment
1051	1051	11 and support of a township library. The township tax shall be levied,
1052	1052	12 assessed, collected, and paid according to the procedure outlined in
1053	1053	13 IC 6-1.1.
1054	1054	14 (f) The tax levy under subsection (e) shall be discontinued when the
1055	1055	15 question of discontinuing the levy has been submitted to a vote
1056	1056	16 according to the procedure provided in subsection (e) and the majority
1057	1057	17 of the votes cast on the question is in the negative.
1058	1058	18 (g) If a public library that is open for the use of all the residents of
1059	1059	19 the township is located in the township, the proceeds of the tax
1060	1060	20 collected under subsection (e) shall be paid to that public library.
1061	1061	21 (h) In a township outside a city that contains a library:
1062	1062	22 (1) established by private donations of the value of at least ten
1063	1063	23 thousand dollars ($10,000), including the real estate and buildings
1064	1064	24 used for the library; and
1065	1065	25 (2) used for the benefit of all the inhabitants of the township;
1066	1066	26 the township trustee of the township shall annually levy and collect not
1067	1067	27 more than two cents ($0.02) on each one hundred dollars ($100) upon
1068	1068	28 the taxable property within the limits of the township. The money shall
1069	1069	29 be paid to the trustees of the library, to be applied by the trustees for
1070	1070	30 the purchase of books and the payment of the maintenance costs for the
1071	1071	31 library. When it becomes necessary to purchase additional ground for
1072	1072	32 the extension or protection of library buildings already established by
1073	1073	33 private donation, the trustee, with the consent of the county legislative
1074	1074	34 body, may annually levy and collect not more than one and sixty-seven
1075	1075	35 hundredths cents ($0.0167) on each one hundred dollars ($100) of
1076	1076	36 taxable property of the township for not more than three (3) years
1077	1077	37 successively, to be expended by the trustees for the purchase of
1078	1078	38 property and the construction and enlargement of library buildings.
1079	1079	39 The provisions in IC 36-12-3-12.1 and IC 36-12-3-12.2 do not apply
1080	1080	40 to a public library described in this section.
1081	1081	41 (i) The 1899 township library is free to all the residents of the
1082	1082	42 township.
1083	1083	2025 IN 283—LS 6379/DI 116 26
1084	1084	1 SECTION 27. IC 36-12-7-8, AS AMENDED BY P.L.11-2023,
1085	1085	2 SECTION 135, IS AMENDED TO READ AS FOLLOWS
1086	1086	3 [EFFECTIVE JULY 1, 2025]: Sec. 8. (a) As used in this section:
1087	1087	4 (1) "county fiscal body" means the fiscal body of a county in
1088	1088	5 which a private donation library is located;
1089	1089	6 (2) "library board" means a library board established under
1090	1090	7 IC 20-14 (before its repeal) or this article in a county in which a
1091	1091	8 private donation library is located; and
1092	1092	9 (3) "private donation library" means a public library:
1093	1093	10 (A) established by private donation;
1094	1094	11 (B) located in a city having a population of more than one
1095	1095	12 hundred ten thousand (110,000) and less than one hundred
1096	1096	13 fifty thousand (150,000);
1097	1097	14 (C) that contains at least twenty-five thousand (25,000)
1098	1098	15 volumes;
1099	1099	16 (D) that has real property valued at at least one hundred
1100	1100	17 thousand dollars ($100,000); and
1101	1101	18 (E) that is open and free to the residents of the city.
1102	1102	19 (b) The: library board shall:
1103	1103	20 (1) library board shall, for property taxes first due and
1104	1104	21 payable in 2025 or before, levy a tax under IC 6-1.1 in an
1105	1105	22 amount not less than sixty-seven hundredths of one cent
1106	1106	23 ($0.0067) and not more than one and sixty-seven hundredths
1107	1107	24 cents ($0.0167) on each one hundred dollars ($100) of the
1108	1108	25 assessed valuation of all the real and personal property in the
1109	1109	26 county; and
1110	1110	27 (2) county fiscal body shall, for property taxes first due and
1111	1111	28 payable after 2025, levy a tax under IC 6-1.1 in an amount not
1112	1112	29 less than sixty-seven hundredths of one cent ($0.0067) and not
1113	1113	30 more than one and sixty-seven hundredths cents ($0.0167) on
1114	1114	31 each one hundred dollars ($100) of the assessed valuation of
1115	1115	32 all the real and personal property in the county.
1116	1116	33 (2) (c) The library board shall keep the tax taxes levied and
1117	1117	34 received under subdivision (1) subsection (b) separate from all other
1118	1118	35 funds of the library board. and
1119	1119	36 (3) (d) The library board shall use the tax taxes levied and
1120	1120	37 received under subdivision (1): subsection (b):
1121	1121	38 (A) (1) if the membership of the trustees of the private donation
1122	1122	39 library includes at least one (1) member or appointee of the
1123	1123	40 library board and at least one (1) appointee of the county fiscal
1124	1124	41 body, for distributions of the full amounts of the tax received to
1125	1125	42 the trustees of the private donation library at the time the tax is
1126	1126	2025 IN 283—LS 6379/DI 116 27
1127	1127	1 received by the library board; or
1128	1128	2 (B) (2) if the membership of the trustees of the private donation
1129	1129	3 library does not include at least one (1) member or appointee of
1130	1130	4 the library board and at least one (1) appointee of the county
1131	1131	5 fiscal body, at the discretion of the library board for:
1132	1132	6 (i) (A) library board purposes; or
1133	1133	7 (ii) (B) quarterly distributions to the trustees of the private
1134	1134	8 donation library.
1135	1135	9 (c) (e) If requested by the trustees of the private donation library, the
1136	1136	10 library board shall designate a member of the library board or appoint
1137	1137	11 an individual to serve as a trustee of the private donation library. If
1138	1138	12 requested by the trustees of the private donation library, the county
1139	1139	13 fiscal body shall appoint an individual to serve as a trustee of the
1140	1140	14 private donation library.
1141	1141	15 (d) (f) The trustees of the private donation library shall annually
1142	1142	16 submit a budget to the library board.
1143	1143	17 (e) (g) The trustees of the private donation library shall expend
1144	1144	18 amounts received under subsection (b)(3)(A) (d)(1) or (b)(3)(B)(ii)
1145	1145	19 (d)(2)(B) for the support, operation, and maintenance of the private
1146	1146	20 donation library. The trustees shall:
1147	1147	21 (1) keep the money separate from all other funds;
1148	1148	22 (2) record:
1149	1149	23 (A) the amount of money received;
1150	1150	24 (B) to whom and when the money is paid out; and
1151	1151	25 (C) for what purpose the money is used;
1152	1152	26 in a book kept by the trustees; and
1153	1153	27 (3) make an annual report of the matters referred to in subdivision
1154	1154	28 (2) to the library board.
1155	1155	29 (f) (h) For purposes of the property tax levy limits under
1156	1156	30 IC 6-1.1-18.5, the tax levied by the library board or the county fiscal
1157	1157	31 body under subsection (b)(1) (b) is not included in the calculation of
1158	1158	32 the maximum permissible property tax levy for the public library or the
1159	1159	33 county, whichever is applicable.
1160	1160	34 SECTION 28. IC 36-12-10-1.5 IS ADDED TO THE INDIANA
1161	1161	35 CODE AS A NEW SECTION TO READ AS FOLLOWS
1162	1162	36 [EFFECTIVE JULY 1, 2025]: Sec. 1.5. As used in this chapter,
1163	1163	37 "governing authority" means:
1164	1164	38 (1) before July 1, 2025, the library board; and
1165	1165	39 (2) after June 30, 2025, the fiscal body of the county to which
1166	1166	40 a budget is submitted under IC 36-12-3-12.1. If the territory
1167	1167	41 of the library district is located in more than one (1) county,
1168	1168	42 the governing authority shall be a joint body of each
1169	1169	2025 IN 283—LS 6379/DI 116 28
1170	1170	1 applicable county.
1171	1171	2 SECTION 29. IC 36-12-10-9, AS AMENDED BY P.L.38-2021,
1172	1172	3 SECTION 111, IS AMENDED TO READ AS FOLLOWS
1173	1173	4 [EFFECTIVE JULY 1, 2025]: Sec. 9. (a) If the execution of the lease
1174	1174	5 as originally agreed upon, or as modified by agreement, is authorized
1175	1175	6 by the library board, governing authority, the library board shall give
1176	1176	7 notice of the signing of the lease by publication one (1) time in a
1177	1177	8 newspaper of general circulation printed in the English language in the
1178	1178	9 district of the municipal corporation or in each municipal corporation
1179	1179	10 district if the proposed lease is a joint lease. If a newspaper is not
1180	1180	11 published in the district, the notice shall be published in any newspaper
1181	1181	12 of general circulation published in the county.
1182	1182	13 (b) Fifty (50) or more taxpayers in the municipal corporation or
1183	1183	14 corporations who will be affected by the proposed lease and who are of
1184	1184	15 the opinion that the execution of the lease is not necessary or that the
1185	1185	16 proposed rental is not a fair and reasonable rental may file a petition in
1186	1186	17 the office of the county auditor of the county in which the municipal
1187	1187	18 corporation or corporations are located. The petition must be filed not
1188	1188	19 later than thirty (30) days after the publication of notice of the
1189	1189	20 execution of the lease and must set forth objections and facts showing
1190	1190	21 that the execution of the lease is unnecessary or unwise or that the lease
1191	1191	22 rental is not fair and reasonable, as the case may be.
1192	1192	23 (c) Upon the filing of a petition, the county auditor shall
1193	1193	24 immediately certify to the department of local government finance a
1194	1194	25 copy of the petition, together with other data that may be necessary to
1195	1195	26 present the questions involved. Upon receipt of the certified petition
1196	1196	27 and information, the department of local government finance shall fix
1197	1197	28 a time and place for a hearing of the matter not less than five (5) or
1198	1198	29 more than thirty (30) days after the department's receipt of the petition
1199	1199	30 and information. The hearing shall be held in the municipal corporation
1200	1200	31 or corporations, in the county where the municipal corporation or
1201	1201	32 corporations are located, or through electronic means.
1202	1202	33 (d) Notice of the hearing shall be given by the department of local
1203	1203	34 government finance to the governing authority, the members of the
1204	1204	35 library board, and to the first ten (10) taxpayer petitioners on the
1205	1205	36 petition by a letter signed by the department of local government
1206	1206	37 finance. The postage of the notice shall be prepaid, and the notice shall
1207	1207	38 be addressed to the persons at their usual place of residence and mailed
1208	1208	39 at least five (5) days before the date of the hearing. The decision of the
1209	1209	40 department of local government finance on the appeal regarding the
1210	1210	41 necessity for the execution of the lease and whether the rental is fair
1211	1211	42 and reasonable is final. A lease may be amended by the parties by
1212	1212	2025 IN 283—LS 6379/DI 116 29
1213	1213	1 following the procedure under this chapter.
1214	1214	2 (e) An action to contest the validity of the lease or an amendment to
1215	1215	3 the lease or to enjoin the performance of any of the terms and
1216	1216	4 conditions of the lease must be brought not later than thirty (30) days
1217	1217	5 after publication of notice of the execution of the lease or an
1218	1218	6 amendment to the lease by the library board of the municipal
1219	1219	7 corporation or corporations. If an appeal has been taken to the
1220	1220	8 department of local government finance, action must be brought not
1221	1221	9 later than thirty (30) days after the decision of the department.
1222	1222	10 SECTION 30. IC 36-12-10-13, AS AMENDED BY P.L.42-2018,
1223	1223	11 SECTION 58, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1224	1224	12 JULY 1, 2025]: Sec. 13. (a) The following apply to a municipal
1225	1225	13 corporation that executes a lease under this chapter:
1226	1226	14 (1) For property taxes first due and payable in 2025 or before,
1227	1227	15 the municipal corporation shall annually levy a special tax, in
1228	1228	16 addition to other taxes authorized by law, sufficient to produce
1229	1229	17 each year the necessary funds with which to pay the lease rental
1230	1230	18 stipulated to be paid by the municipal corporation under the lease.
1231	1231	19 (2) For property taxes first due and payable after 2025, the
1232	1232	20 county fiscal body shall annually levy a special tax, in addition
1233	1233	21 to other taxes authorized by law, sufficient to produce each
1234	1234	22 year the necessary funds with which to pay the lease rental
1235	1235	23 stipulated to be paid by the municipal corporation under the
1236	1236	24 lease.
1237	1237	25 (b) A levy under this section shall be reviewed in accordance with
1238	1238	26 IC 6-1.1-17.
1239	1239	27 (c) The first tax levy shall be made at the first annual tax levy period
1240	1240	28 following the date of the execution of the lease. The first annual levy
1241	1241	29 must be sufficient to pay the estimated amount of the first annual lease
1242	1242	30 rental payment to be made under the lease.
1243	1243	31 SECTION 31. IC 36-12-12-1.5 IS ADDED TO THE INDIANA
1244	1244	32 CODE AS A NEW SECTION TO READ AS FOLLOWS
1245	1245	33 [EFFECTIVE JULY 1, 2025]: Sec. 1.5. As used in this chapter,
1246	1246	34 "governing authority" means:
1247	1247	35 (1) before July 1, 2025, the library board; and
1248	1248	36 (2) after June 30, 2025, the fiscal body of the county to which
1249	1249	37 a budget is submitted under IC 36-12-3-12.1. If the territory
1250	1250	38 of the library district is located in more than one (1) county,
1251	1251	39 the governing authority shall be a joint body of each county.
1252	1252	40 SECTION 32. IC 36-12-12-3, AS ADDED BY P.L.1-2005,
1253	1253	41 SECTION 49, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1254	1254	42 JULY 1, 2025]: Sec. 3. (a) Before a library board may collect or
1255	1255	2025 IN 283—LS 6379/DI 116 30
1256	1256	1 receive property taxes for a capital projects fund in a particular year,
1257	1257	2 the library board governing authority must, after January 1 and before
1258	1258	3 May 15 of the immediately preceding year, hold a public hearing on a
1259	1259	4 proposed plan and pass a resolution to adopt a plan. and
1260	1260	5 (b) In the case of a governing authority defined in section 1.5(1)
1261	1261	6 of this chapter, submit the plan must be submitted for approval or
1262	1262	7 rejection by the fiscal body designated in section 4 of this chapter.
1263	1263	8 (b) (c) The department of local government finance shall prescribe
1264	1264	9 the format of the plan. A plan must apply to at least the three (3) years
1265	1265	10 immediately following the year the plan is adopted. A plan must
1266	1266	11 estimate for each year to which the plan applies the nature and amount
1267	1267	12 of proposed expenditures from the capital projects fund. A plan must
1268	1268	13 estimate:
1269	1269	14 (1) the source of all revenue to be dedicated to the proposed
1270	1270	15 expenditures in the upcoming budget year; and
1271	1271	16 (2) the amount of property taxes to be collected in that year and
1272	1272	17 retained in the fund for expenditures proposed for a later year.
1273	1273	18 (c) (d) If a hearing is scheduled under subsection (a), the governing
1274	1274	19 body authority shall publish the proposed plan and a notice of the
1275	1275	20 hearing in accordance with IC 5-3-1-2(b).
1276	1276	21 SECTION 33. IC 36-12-12-4, AS ADDED BY P.L.1-2005,
1277	1277	22 SECTION 49, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1278	1278	23 JULY 1, 2025]: Sec. 4. (a) This section applies to a governing
1279	1279	24 authority defined in section 1.5(1) of this chapter.
1280	1280	25 (a) (b) If the library board governing authority passes a resolution
1281	1281	26 under section 3 of this chapter, not later than ten (10) days after passing
1282	1282	27 the resolution the board governing authority shall transmit a certified
1283	1283	28 copy of the plan to the appropriate unit's fiscal body or fiscal bodies,
1284	1284	29 whichever applies. The appropriate unit's fiscal body is determined as
1285	1285	30 follows:
1286	1286	31 (1) If the library district is located entirely within the corporate
1287	1287	32 boundaries of a municipality, the appropriate unit's fiscal body is
1288	1288	33 the fiscal body of the municipality.
1289	1289	34 (2) If the library district is not described by subdivision (1) and
1290	1290	35 the district is located entirely within the boundaries of a township,
1291	1291	36 the appropriate unit's fiscal body is the fiscal body of the
1292	1292	37 township.
1293	1293	38 (3) If the library district is not described by subdivision (1) or (2),
1294	1294	39 the appropriate fiscal body is the fiscal body of each county in
1295	1295	40 which the library district is located.
1296	1296	41 (b) (c) The appropriate fiscal body shall hold a public hearing on the
1297	1297	42 plan not later than thirty (30) days after receiving a certified copy of the
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1299	1299	1 plan and either reject or approve the plan before August 1 of the year
1300	1300	2 that the plan is received.
1301	1301	3 SECTION 34. IC 36-12-12-5, AS AMENDED BY P.L.137-2012,
1302	1302	4 SECTION 124, IS AMENDED TO READ AS FOLLOWS
1303	1303	5 [EFFECTIVE JULY 1, 2025]: Sec. 5. (a) If the library board governing
1304	1304	6 authority passes a resolution under section 3 of this chapter and, in the
1305	1305	7 case of a governing authority defined in section 1.5(1) of this
1306	1306	8 chapter, the appropriate unit's fiscal body or bodies approve the plan,
1307	1307	9 the library board governing authority shall publish notice of adoption
1308	1308	10 in accordance with IC 5-3-1-2(i).
1309	1309	11 (b) Ten (10) or more taxpayers who will be affected by the adopted
1310	1310	12 plan may file a petition with the county auditor of a county in which the
1311	1311	13 library district is located not later than ten (10) days after the
1312	1312	14 publication of the notice of adoption required by subsection (a), setting
1313	1313	15 forth the taxpayers' objections to the proposed plan. The county auditor
1314	1314	16 shall immediately certify the petition to the department of local
1315	1315	17 government finance.
1316	1316	18 SECTION 35. IC 36-12-12-6, AS ADDED BY P.L.1-2005,
1317	1317	19 SECTION 49, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1318	1318	20 JULY 1, 2025]: Sec. 6. The department of local government finance
1319	1319	21 shall, within a reasonable time, fix a date for a hearing on the petition
1320	1320	22 filed under section 5(b) of this chapter. The hearing shall be held in a
1321	1321	23 county in which the library district is located. The department of local
1322	1322	24 government finance shall notify:
1323	1323	25 (1) the library board; and
1324	1324	26 (2) the governing authority; and
1325	1325	27 (2) (3) the first ten (10) taxpayers whose names appear on the
1326	1326	28 petition;
1327	1327	29 at least five (5) days before the date fixed for the hearing.
1328	1328	30 SECTION 36. IC 36-12-12-7, AS ADDED BY P.L.1-2005,
1329	1329	31 SECTION 49, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1330	1330	32 JULY 1, 2025]: Sec. 7. (a) After a hearing upon the petition under
1331	1331	33 section 6 of this chapter, the department of local government finance
1332	1332	34 shall certify the department's approval, disapproval, or modification of
1333	1333	35 the plan to the library board governing authority and the auditor of the
1334	1334	36 county.
1335	1335	37 (b) A:
1336	1336	38 (1) taxpayer who signed a petition filed under section 5 of this
1337	1337	39 chapter; or
1338	1338	40 (2) library district against which a petition under section 5 of this
1339	1339	41 chapter is filed;
1340	1340	42 may petition for judicial review of the final determination of the
1341	1341	2025 IN 283—LS 6379/DI 116 32
1342	1342	1 department of local government finance under subsection (a). The
1343	1343	2 petition must be filed in the tax court not more than forty-five (45) days
1344	1344	3 after the department certifies the department's action under subsection
1345	1345	4 (a).
1346	1346	5 SECTION 37. IC 36-12-12-9, AS ADDED BY P.L.1-2005,
1347	1347	6 SECTION 49, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1348	1348	7 JULY 1, 2025]: Sec. 9. (a) A library board governing authority may
1349	1349	8 amend an adopted and approved plan to:
1350	1350	9 (1) provide money for the purposes described in section 2(b)(4)
1351	1351	10 of this chapter; or
1352	1352	11 (2) supplement money accumulated in the capital projects fund
1353	1353	12 for those purposes.
1354	1354	13 (b) If an emergency arises that results in costs that exceed the
1355	1355	14 amount accumulated in the fund for the purposes described in section
1356	1356	15 2(b)(4) of this chapter, the library board governing authority must
1357	1357	16 immediately apply to the department of local government finance for
1358	1358	17 a determination that an emergency exists. If the department of local
1359	1359	18 government finance determines that an emergency exists, the library
1360	1360	19 board governing authority may adopt a resolution to amend the plan.
1361	1361	20 The amendment is not subject to the deadline and the procedures for
1362	1362	21 adoption described in section 3 of this chapter. However, the
1363	1363	22 amendment is subject to modification by the department of local
1364	1364	23 government finance.
1365	1365	24 (c) An amendment adopted under this section may require the
1366	1366	25 payment of eligible emergency costs from:
1367	1367	26 (1) money accumulated in the capital projects fund for other
1368	1368	27 purposes; or
1369	1369	28 (2) money to be borrowed from other funds of the library board or
1370	1370	29 from a financial institution.
1371	1371	30 The amendment may also provide for an increase in the property tax
1372	1372	31 rate for the capital projects fund to restore money to the fund or to pay
1373	1373	32 principal and interest on a loan. However, before the property tax rate
1374	1374	33 for the fund may be increased, the library board a governing authority
1375	1375	34 defined in section 1.5(1) of this chapter must submit and obtain the
1376	1376	35 approval of the appropriate fiscal body or bodies, as provided in section
1377	1377	36 4 of this chapter. An increase to the property tax rate for the capital
1378	1378	37 projects fund is effective for property taxes first due and payable for the
1379	1379	38 year next certified by the department of local government finance under
1380	1380	39 IC 6-1.1-17-16. However, the property tax rate may not exceed the
1381	1381	40 maximum rate established under section 10 of this chapter.
1382	1382	41 SECTION 38. IC 36-12-12-10, AS ADDED BY P.L.1-2005,
1383	1383	42 SECTION 49, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1384	1384	2025 IN 283—LS 6379/DI 116 33
1385	1385	1 JULY 1, 2025]: Sec. 10. To provide for the capital projects fund, the
1386	1386	2 library board governing authority may, for each year in which a plan
1387	1387	3 adopted under section 3 of this chapter is in effect, impose a property
1388	1388	4 tax rate that does not exceed one and sixty-seven hundredths cents
1389	1389	5 ($0.0167) on each one hundred dollars ($100) of assessed valuation of
1390	1390	6 the library district. This rate must be advertised in the same manner as
1391	1391	7 other property tax rates.
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