Note: This version of section amended by P.L.248-2017, SEC.8. See also preceding version of this section amended by P.L.229-2017, SEC.40.

     Sec. 16. (a) This section applies if a political subdivision or city or county described in IC 36-7.5-2-3 or a county participating in a rail project under IC 36-7.5-4.5 fails to make a transfer or a part of a transfer required by section 2 of this chapter or fails to pay or transfer any amounts a political subdivision or a city or county described in IC 36-7.5-2-3 or a county participating in a rail project under IC 36-7.5-4.5 has agreed to pay or transfer to the development authority pursuant to the terms of any bond, note, debenture, warrant, contractual agreement, or any other promise or agreement.

     (b) The development authority shall notify the treasurer of state or the fiscal officer of a city, a county described in IC 36-7.5-2-3, or a county participating in a rail project under IC 36-7.5-4.5 when a city, county, or political subdivision has failed to pay or transfer all or part of a payment or transfer due under this section. In the case of a county that is a cash participant county under IC 36-7.5-4.5 that is making payments directly to the Indiana finance authority, the Indiana finance authority shall notify the treasurer of state and the development authority of a default. Upon receiving notice from the development authority or the Indiana finance authority, the treasurer of state or fiscal officer shall:

(1) Deduct from amounts otherwise payable to the city, county, or political subdivision:

(A) an amount equal to the amount of the transfer or part of the transfer under section 2 of this chapter that the city, county, or political subdivision failed to make; and

(B) an amount equal to any other amounts due to the development authority that the city, county, or political subdivision failed to make.

(2) Pay the amount deducted under subdivision (1) to the development authority.

(3) Notify the city, county, or political subdivision that the amount that would otherwise be available for distribution to the city, county, or political subdivision has been reduced by an amount necessary to satisfy all or part of the transfers required under section 2 of this chapter or any other amounts due to the development authority.

     (c) A deduction under subsection (b) must be made as follows:

(1) First, from amounts otherwise payable to the city, county, or other political subdivision under IC 4-33-13.

(2) Second, from local income tax distributions under IC 6-3.6-9 that would otherwise be distributed to the city, county, or other political subdivision under the schedules in IC 6-3.6-9-12 and IC 6-3.6-9-16.

(3) Third, from any other revenues or money otherwise available for distribution from the city, county, or other political subdivision.

As added by P.L.214-2005, SEC.73. Amended by P.L.192-2015, SEC.15; P.L.248-2017, SEC.8.