2012 Indiana Code
TITLE 4. STATE OFFICES AND ADMINISTRATION
ARTICLE 10. STATE FUNDS GENERALLY
CHAPTER 22. USE OF EXCESS RESERVES

IC 4-10-22
Chapter 22. Use of Excess Reserves

IC 4-10-22-1 Version a
Calculation of state reserves
Note: This version of section effective until 1-1-2013. See also following version of this section, effective 1-1-2013.
Sec. 1. After the end of each state fiscal year, the office of management and budget shall calculate in the customary manner the total amount of state reserves as of the end of the state fiscal year. The office of management and budget shall make the calculation not later than July 31 of each year.
As added by P.L.229-2011, SEC.44.

IC 4-10-22-1 Version b
Calculation of state reserves
Note: This version of section effective 1-1-2013. See also preceding version of this section, effective until 1-1-2013.
Sec. 1. After the end of each odd-numbered state fiscal year, the office of management and budget shall calculate in the customary manner the total amount of state reserves as of the end of the state fiscal year. The office of management and budget shall make the calculation not later than July 31 of each odd-numbered year.
As added by P.L.229-2011, SEC.44. Amended by P.L.160-2012, SEC.2.

IC 4-10-22-2 Version a
Determination of excess reserves; presentation to budget committee
Note: This version of section effective until 1-1-2013. See also following version of this section, effective 1-1-2013.
Sec. 2. If the total amount of state reserves calculated by the office of management and budget exceeds ten percent (10%) of the general revenue appropriations for the current state fiscal year, and if the accounts payable by the state at the end of the preceding state fiscal year are not unusually large as a percentage of the total amount of state reserves (as compared to recent history), the governor shall make a presentation to the state budget committee regarding the disposition of excess state reserves under section 3 of this chapter. The presentation must be made not later than September 30 of the year.
As added by P.L.229-2011, SEC.44.

IC 4-10-22-2 Version b
Determination of excess reserves; presentation to budget committee
Note: This version of section effective 1-1-2013. See also preceding version of this section, effective until 1-1-2013.
Sec. 2. If:
(1) the total amount of state reserves calculated by the office of

management and budget exceeds twelve and five-tenths percent (12.5%) of the general revenue appropriations for the current state fiscal year; and
(2) the accounts payable by the state at the end of the preceding state fiscal year are not unusually large as a percentage of the total amount of state reserves (as compared to recent history);
the governor shall make a presentation to the state budget committee regarding the disposition of excess state reserves under section 3 of this chapter. The presentation must be made not later than September 30 of each odd-numbered year.
As added by P.L.229-2011, SEC.44. Amended by P.L.160-2012, SEC.3.

IC 4-10-22-3
Transfer of excess reserves
Sec. 3. After completing the presentation to the state budget committee described in section 2 of this chapter, the governor shall do the following:
(1) If the amount of excess reserves on June 30 of any year is less than fifty million dollars ($50,000,000), the governor shall carry over the excess reserves to each subsequent year until the total excess reserves, including any carryover amount, equal at least fifty million dollars ($50,000,000). In the year that the total excess reserves equal at least fifty million dollars ($50,000,000), the excess reserves shall be used as provided in subdivision (2).
(2) If in any year the amount of the excess reserves is fifty million dollars ($50,000,000) or more, the governor shall do the following:
(A) If the year is calendar year 2012, transfer fifty percent (50%) of the excess reserves as follows:
(i) To the pension plans for the state police, conservation officers, judges, and prosecuting attorneys to increase the funded amount of each of these plans to eighty percent (80%). The funded amount for each plan described in this item is to be determined as of June 30 of the immediately preceding year, and, if the amount of money available for transfer is less than the amount needed to increase all these plans' funded amount to eighty percent (80%), the transfers shall be made in the priority of each plan's unfunded liability so that the funded amount of the plan with the least unfunded liability is raised to eighty percent (80%) first.
(ii) To the pension stabilization fund established by IC 5-10.4-2-5 for the purposes of the pension stabilization fund, if money remains after satisfying item (i).
If the year begins after December 31, 2012, transfer fifty percent (50%) of any excess reserves to the pension stabilization fund established by IC 5-10.4-2-5 for the purposes of the pension stabilization fund. (B) Use fifty percent (50%) of any excess reserves for the purposes of providing an automatic taxpayer refund under section 4 of this chapter.
As added by P.L.229-2011, SEC.44. Amended by P.L.160-2012, SEC.4.

IC 4-10-22-4
Refund of excess reserves to taxpayers
Sec. 4. The following apply if sufficient excess state reserves are available to provide an automatic taxpayer refund to each taxpayer eligible for a refund:
(1) To qualify for a refund, a taxpayer:
(A) must have filed an Indiana resident individual adjusted gross income tax return for the taxpayer's taxable year ending in the calendar year immediately preceding the calendar year in which a determination is made under section 1 of this chapter that the state has excess reserves; and
(B) must have adjusted gross income tax liability for the taxpayer's taxable year ending in the calendar year in which a determination is made under section 1 of this chapter that the state has excess reserves.
(2) The amount of the refund is determined for each qualifying taxpayer as follows:
STEP ONE: Determine the total amount of excess state reserves that under section 3 of this chapter are available to provide automatic taxpayer refunds.
STEP TWO: Determine the total number of taxpayers that qualify for a refund under subdivision (1).
STEP THREE: Determine the result of:
(A) the STEP ONE result; divided by
(B) the STEP TWO result;
as rounded to the nearest dollar.
(3) The refund is a refundable credit that shall first be applied as a credit against adjusted gross income tax liability in the taxpayer's taxable year in which a refund is provided. Any remaining unused credit shall be refunded to the taxpayer. The credit may not be carried forward.
(4) If an individual and the individual's spouse are both qualifying taxpayers for purposes of this section for a taxable year and file a joint Indiana resident individual adjusted gross income tax return for the taxable year:
(A) the individual and the individual's spouse are considered two (2) taxpayers for purposes of determining the amount of the refund under subdivision (2) for a qualifying taxpayer; and
(B) the amount of the refund that the individual and the individual's spouse are entitled to claim is equal to the amount of any refund determined under subdivision (2) for a qualifying taxpayer, multiplied by two (2). As added by P.L.229-2011, SEC.44. Amended by P.L.160-2012, SEC.5.

IC 4-10-22-5
Appropriation
Sec. 5. There is appropriated a sufficient amount in a state fiscal year to carry out this chapter.
As added by P.L.229-2011, SEC.44.