SB 4

           Second Regular Session of the 124th General Assembly (2026)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in this style type, and deletions will appear in this style type.
  Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in this style type. Also, the
word NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
 Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
between statutes enacted by the 2025 Regular Session of the General Assembly.
       SENATE ENROLLED ACT No. 4
    AN ACT to amend the Indiana Code concerning taxation.
    Be it enacted by the General Assembly of the State of Indiana:
    SECTION 1. IC 2-5-1.1-7, AS AMENDED BY P.L.213-2025,
SECTION 36, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 7. (a) The council shall maintain a bipartisan
service and administrative agency for the general assembly to assist it
in the performance of its constitutional responsibilities as a separate
and independent legislative branch of state government. The service
and administrative agency shall be known as the "Legislative Services
Agency".
    (b) In maintaining the legislative services agency the council shall:
      (1) establish the qualifications for and employ such personnel as
      are required to carry out the purposes and provisions of this
      chapter;
      (2) employ an executive director, to be charged with the
      administrative responsibility of all offices, departments, or
      divisions which the council may from time to time establish, and
      to serve as chief executive under the council;
      (3) adopt rules and regulations governing personnel practices and
      establishing the rights, privileges, powers, and duties of all
      employees;
      (4) provide for employees to be covered by the public employees'
      retirement fund; and
      (5) establish a pay scale for all employees including the executive
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      director.
Rules and regulations adopted by the council under subdivision (3) are
not subject to IC 4-22-2. In those rules and regulations, the council may
limit the political activity of legislative services agency employees.
    (c) The executive director is entitled to serve as long as he properly
performs his duties, but he may be removed at any time upon the
affirmative vote of twelve (12) members of the council.
    (d) The executive director may submit to the council such reports
and drafts of resolutions, budgets, and appropriation bills as may be
required for the efficient operation of the council's activities and
programs.
    (e) The legislative services agency shall perform such bill drafting,
research, code revision, fiscal, budgetary, and management analysis,
information, administrative, and other services as are requested by the
council.
    (f) The legislative services agency shall perform a fiscal impact
analysis for each executive order issued by the governor under
IC 10-14-3 within seven (7) days of the executive order issuance and
provide the fiscal note to:
      (1) the legislative council; and
      (2) the budget committee.
    SECTION 2. IC 4-22-2-22.7, AS AMENDED BY P.L.93-2024,
SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 22.7. (a) Before complying with section 22.8,
37.1, or 37.2 of this chapter, an agency shall conduct a regulatory
analysis for the proposed rule that complies with the requirements of
this section.
    (b) The office of management and budget shall set standards for the
criteria, analytical method, treatment technology, economic, fiscal, and
other background data to be used by an agency in the regulatory
analysis. The regulatory analysis must be submitted in a form that can
be easily loaded into commonly used business analysis software and
published in the Indiana Register using the format jointly developed by
the publisher, the office of management and budget, and the budget
agency. The office of management and budget may provide more
stringent requirements for rules with fiscal impacts and costs above a
threshold amount determined by the office of management and budget.
    (c) At a minimum, the regulatory analysis must include findings and
any supporting data, studies, or analyses prepared for a rule that
demonstrate compliance with the following:
      (1) The cost benefit requirements in IC 4-3-22-13.
      (2) Each of the standards in section 19.5 of this chapter.
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      (3) If applicable, the requirements for fees, fines, and civil
      penalties in section 19.6 of this chapter.
      (4) The annual economic impact on small businesses statement
      required under IC 4-22-2.1-5.
      (5) If applicable, the information required under IC 13-14-9-4.
      (6) A determination whether the combined implementation and
      compliance costs of a proposed rule are at least one million
      dollars ($1,000,000) five hundred thousand dollars ($500,000)
      for businesses, units, and individuals over any two (2) year
      period.
      (7) Any requirement under any other law to conduct an analysis
      of the cost, benefits, economic impact, or fiscal impact of a rule,
      if applicable.
   (d) The regulatory analysis must include a statement justifying any
requirement or cost that is:
      (1) imposed on a regulated entity under the rule; and
      (2) not expressly required by:
          (A) the statute authorizing the agency to adopt the rule; or
          (B) any other state or federal law.
The statement required under this subsection must include a reference
to any data, studies, or analyses relied upon by the agency in
determining that the imposition of the requirement or cost is necessary.
   (e) Except as provided in subsection (f), if the implementation and
compliance costs of a proposed rule are expected to exceed the
threshold set forth in subsection (c)(6), the publisher may not publish
the proposed rule until the budget committee has reviewed the rule.
   (f) Subsection (e) does not apply to a proposed rule if the proposed
rule is:
      (1) a provisional rule that was issued as the result of the governor
      declaring an emergency under IC 10-14-3 and is only valid during
      the emergency;
      (2) a provisional or interim rule that complies only with the
      requirements of a:
          (A) federal law;
          (B) federal regulation; or
          (C) federal grant or loan program; or
      (3) an interim rule that incorporates a new or updated:
          (A) building;
          (B) equipment;
          (C) firefighting;
          (D) safety; or
          (E) professional;
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      code.
    (g) If an agency has made a good faith effort to comply with this
section, a rule is not invalid solely because the regulatory analysis for
the proposed rule is insufficient or inaccurate.
    SECTION 3. IC 4-29.5-18-1, AS ADDED BY P.L.171-2021,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 1. For so long as the Band makes payments
in accordance with IC 4-29.5-17, the Band shall allocate a portion of
the annual payment to provide funding for public postsecondary and
vocational education for Band citizens (the "Pokagon Indiana
Education Fund").
    SECTION 4. IC 4-29.5-18-2, AS ADDED BY P.L.171-2021,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 2. The Pokagon Indiana Education Fund shall
be used solely to make payments directly to Indiana public institutions
of higher learning or workforce development and training programs
approved by the Indiana Department of Workforce Development for
eligible Band citizens for direct costs and expenses, such as tuition,
on-campus room and board, and other direct education expenses. To be
eligible, a Band citizen must (i) be enrolled in the Band prior to
benefitting from any payment, and (ii) meet the education or workforce
provider admission requirements. Priority shall be given to Band
citizens who are legal residents of the State of Indiana as of the date of
their application for benefits.
    SECTION 5. IC 12-29-2-2, AS AMENDED BY P.L.159-2020,
SECTION 60, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2028]: Sec. 2. (a) A county shall provide funding for the
operation of community mental health centers in the amount
determined under subsection (b) or, in the case of Marion County for
calendar year 2019, calendar year 2020, and calendar year 2021, the
amount determined under subsection (c).
    (b) Except as provided in subsection (c), the amount of funding
under subsection (a) for a calendar year is equal to the following:
      (1) The county's maximum appropriation amount for the operation
      of community mental health centers determined under this
      chapter in the previous calendar year, if the STEP THREE result
      under the following formula is less than or equal to zero (0):
          STEP ONE: Determine the amount of the certified levy for
          funds subject to the civil maximum levy in the immediately
          preceding calendar year minus the amount of credits granted
          under IC 6-1.1-20.6 that were allocated to funds subject to the
          civil maximum levy in the immediately preceding calendar
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         year, as determined by the department of local government
         finance under IC 6-1.1-20.6-11.
         STEP TWO: Determine the amount of the certified levy for
         funds subject to the civil maximum levy in the year prior to the
         immediately preceding calendar year minus the amount of
         credits granted under IC 6-1.1-20.6 that were allocated to
         funds subject to the civil maximum levy in the year prior to the
         immediately preceding calendar year, as determined by the
         department of local government finance under
         IC 6-1.1-20.6-11.
         STEP THREE: Determine the remainder of the STEP ONE
         amount minus the STEP TWO amount.
      (2) If the STEP THREE result under the formula in subdivision
      (1) is greater than zero (0), then the county's maximum
      appropriation amount for the operation of community mental
      health centers determined under this chapter in the previous
      calendar year, multiplied by the greater of:
         (A) one (1); or
         (B) the result of STEP SIX of the following formula:
            STEP ONE: Determine the maximum levy growth quotient
            for the year under IC 6-1.1-18.5 minus one (1).
            STEP TWO: Determine the amount of the certified levy for
            funds subject to the civil maximum levy in the immediately
            preceding calendar year minus the amount of credits granted
            under IC 6-1.1-20.6 that were allocated to funds subject to
            the civil maximum levy in the immediately preceding
            calendar year, as determined by the department of local
            government finance under IC 6-1.1-20.6-11.
            STEP THREE: Determine the amount of the certified levy
            for funds subject to the civil maximum levy in the
            immediately preceding calendar year.
            STEP FOUR: Determine the result of the STEP TWO
            amount divided by the STEP THREE amount.
            STEP FIVE: Determine the product of the STEP ONE
            amount multiplied by the STEP FOUR result.
            STEP SIX: Determine the STEP FIVE amount plus one (1).
The department of local government finance shall verify the maximum
appropriation calculation under this subsection as part of the
certification of the county's budget under IC 6-1.1-17. For taxes due
and payable in 2020, the department of local government finance shall
calculate the maximum appropriation under this subsection as if the
taxes were due and payable in 2019.
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   (c) This subsection applies only in calendar year 2019, calendar year
2020, and calendar year 2021. In the case of Marion County, the
amount of funding under subsection (a) for a calendar year is
determined under this subsection and is equal to the following:
      (1) For calendar year 2019, the sum of:
         (A) the actual amount of the appropriations by the county for
         community mental health centers under this chapter in 2018;
         plus
         (B) the result of thirty-three percent (33%) multiplied by the
         result of:
            (i) the amount that would have, except for the application of
            this subsection, applied to the county under subsection (b)
            for calendar year 2019; minus
            (ii) the actual amount of the appropriations by the county for
            community mental health centers under this chapter in 2018.
      (2) For calendar year 2020, the sum of:
         (A) the actual amount of the appropriations by the county for
         community mental health centers under this chapter in 2019;
         plus
         (B) the result of sixty-six percent (66%) multiplied by the
         result of:
            (i) the amount that would have, except for the application of
            this subsection, applied to the county under subsection (b)
            for calendar year 2020; minus
            (ii) the actual amount of the appropriations by the county for
            community mental health centers under this chapter in 2019.
      (3) For calendar year 2021, the amount that would have, except
      for the application of this subsection, applied to the county under
      subsection (b) for calendar year 2021.
The department of local government finance shall verify the maximum
appropriation calculation under this subsection as part of the
certification of the county's budget under IC 6-1.1-17. This subsection
expires January 1, 2022.
   (d) A county may meet the funding requirements under this
section with any funding source in lieu of or in combination with
property taxes but excluding federal funds.
   (d) (e) The funding provided by a county under this section shall be
used solely for:
      (1) the operations of community mental health centers serving the
      county; or
      (2) contributing to the nonfederal share of medical assistance
      payments to community mental health centers serving the county.
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    (f) Services authorized through a community mental health
center certification shall only be provided in the community mental
health center's designated county or counties.
    (g) Notwithstanding subsection (f), the division of mental health
and addiction may authorize approval for a community mental
health center to provide school based services outside the
community mental health center's designated service area.
    SECTION 6. IC 12-29-2-16, AS AMENDED BY P.L.59-2024,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2028]: Sec. 16. (a) A community mental health center that is
certified by the division of mental health and addiction shall provide an
annual report to the division of mental health and addiction and to the
fiscal body and the board of county commissioners of each county
located in the community mental health center's primary service area.
The annual report under this section must include the following:
      (1) Information concerning the operational and community based
      activities undertaken during the year by the community mental
      health center in each county from which the community mental
      health center received funding under this chapter.
      (2) A listing, by the county of patients' residence, of the following
      information:
         (A) The total number of patients served by the community
         mental health center.
         (B) The total number of patients receiving addiction treatment
         services from the community mental health center.
         (C) The total number of patients receiving mental health
         services from the community mental health center.
         (D) The total number of patients receiving both addiction
         treatment services and mental health services from the
         community mental health center.
      (3) A copy of the most recent financial audit provided to the
      division of mental health and addiction under 440 IAC 4.1-2-5,
      including a balance sheet of assets and liabilities, which shall be
      prepared by an independent certified public accountant.
      (4) Demographic information of patients served by the
      community mental health center, including the following:
         (A) The number of adults served and the:
            (i) five (5) most common addiction substances; and
            (ii) ten (10) most common primary mental health diagnoses;
         of the adults.
         (B) The number of children served and the:
            (i) five (5) most common addiction substances; and
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            (ii) ten (10) most common primary mental health diagnoses;
          of the children.
      (5) The total number of clinical encounters in the preceding fiscal
      year.
      (6) The total number of completed intakes in the preceding fiscal
      year.
      (7) The average time from initial engagement to an offered initial
      evaluation.
      (8) The average time from initial evaluation to an offered
      follow-up visit.
      (9) The community mental health center's performance in
      comparison to the state's performance on measures identified by
      the division of mental health and addiction, including client
      satisfaction and clinical outcomes.
      (10) Data related to the connection between a patient and
      additional county or regional based services, including any of the
      following, if available:
          (A) Self, family, or guardian referrals.
          (B) Law enforcement or the criminal justice system.
          (C) A hospital or physician.
          (D) Child or youth services, including the department of child
          services, systems of care, or schools.
          (E) A twenty-four (24) hour crisis intervention service.
          (F) An enhanced call center.
   (b) The division of mental health and addiction shall:
      (1) specify the format of the annual reports that must be provided
      by community mental health centers under subsection (a);
      (2) determine the measures to be used concerning performance
      required by subsection (a)(9); and
      (3) include a summary of that information in the annual report
      prepared by the division under subsection (c).
   (c) A community mental health center that is certified by the
division of mental health and addiction shall annually provide to the
county fiscal body and of each county located in the community
mental health center's primary service area, the board of county
commissioners of each county located in the community mental
health center's primary service area, and the division of mental
health and addiction a report that includes the following:
      (1) An overview of the total funding provided to all the
      community mental health centers center during the year under
      this chapter, including funding provided by the division for
      purposes of programs under this chapter the following:
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         (A) The total amount of revenue received from the county
         under this chapter.
         (B) The total amount of expenditures made from revenue
         received from the county under this chapter.
         (C) The total amount of expenditures by category from
         revenue received from the county under this chapter.
         (D) The total amount of expenditures on services from
         revenue received from the county under this chapter, and
         as a percent of the total revenue received from the county
         under this chapter.
         (E) The total amount of funding provided by the division
         for purposes of programs under this chapter.
     (2) A count, by county of residence, of the following concerning
     patients served by the community mental health centers center
     under programs funded under this chapter:
         (A) The total number of patients served.
         (B) The total number of patients receiving addiction treatment
         services.
         (C) The total number of patients receiving mental health
         services.
         (D) The total number of patients receiving both addiction
         treatment services and mental health services.
     (3) An assessment, specified by the county of patients' residence,
     of the overall outcomes of the treatment provided to patients of
     the community mental health centers. center.
     (4) A summary of the information provided by the community
     mental health centers center in the annual reports provided under
     subsection (a), and an explanation of the any differences between
     the patient count information provided by the community mental
     health centers center in those reports and the patient count
     information included in the division's report under this subsection.
   (d) The division of mental health and addiction may provide a report
required under subsection (c) to the county fiscal body and the board
of county commissioners by publishing the report on the division's
website.
   SECTION 7. [EFFECTIVE UPON PASSAGE] (a) The legislative
council is urged to assign to the interim study committee on courts
and the judiciary the task of undertaking a comprehensive study
of all court fees and fines, including those under IC 29, IC 31,
IC 32, IC 33, IC 34, and IC 35, and preparing a report on the study
containing:
     (1) a listing of all court fees and fines;
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     (2) the total amount of revenue received from all court fees
     and fines;
     (3) a listing of the distribution source for all court fees and
     fines;
     (4) the court or state government entity that oversees each
     distribution of all court fees and fines; and
     (5) any other relevant information on court fees and fines.
   (b) Before November 1, 2026, the report on the study and all
findings and recommendations of the interim study committee on
courts and the judiciary shall be submitted to the legislative council
in an electronic format under IC 5-14-6.
   (c) This SECTION expires July 1, 2027.
   SECTION 8. [EFFECTIVE JULY 1, 2025 (RETROACTIVE)] (a)
Notwithstanding any other provision, the budget agency, subject
to budget committee review, may use the appropriation to the
financial responsibility and opportunity growth fund in
P.L.213-2025 (HEA 1001-2025) or augment the financial
responsibility and opportunity growth fund for the purpose of
providing funding to the Child Care and Development Fund
voucher program administered by the family and social services
administration in addition to the uses for the appropriation as
authorized in P.L.213-2025 (HEA 1001-2025).
   (b) This SECTION expires July 1, 2027.
   SECTION 9. [EFFECTIVE JULY 1, 2026] (a) IC 4-22-2-22.7, as
amended by this act, applies to a rulemaking action that
commences after June 30, 2026.
   (b) This SECTION expires July 1, 2028.
   SECTION 10. An emergency is declared for this act.
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President of the Senate
President Pro Tempore
Speaker of the House of Representatives
Governor of the State of Indiana
Date:  Time:
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