Indiana § 4-33-13-5.4 - Supplemental payments to qualified cities for amounts not paid; appropriation

§ 4-33-13-5.4. Supplemental payments to qualified cities for amounts not paid; appropriation

Sec. 5.4. (a) This section applies to each state fiscal year beginning after June 30, 2026.

(b) As used in this section, "qualified city" refers to East Chicago, Hammond, or Michigan City.

(c) As used in this section, "supplemental payment statute" refers to IC 4-33-13-5.3, as in effect on January 1, 2025.

(d) Subject to subsections (i) and (j), a qualified city is entitled to supplemental payments under this section for amounts not paid in state fiscal years 2022, 2023, 2024, and 2025 under the supplemental payment statute. The state comptroller shall determine the total amount of supplemental payments to which each qualified city is entitled as follows:

(1) In the case of East Chicago, an amount equal to the sum of the following:

(A) Six million four hundred seventy-four thousand two hundred seventy-four dollars ($6,474,274).

(B) The amount, if any, for state fiscal year 2025 for which East Chicago is eligible under the supplemental payment statute.

(2) In the case of Michigan City, an amount equal to the sum of the following:

(A) Five million seven hundred fifty-two thousand one hundred twenty-five dollars ($5,752,125).

(B) The amount, if any, for state fiscal year 2025 for which Michigan City is eligible under the supplemental payment statute.

(3) In the case of Hammond, an amount equal to the amount, if any, for state fiscal year 2025 for which Hammond is eligible under the supplemental payment statute.

(e) Subject to subsections (j) and (l), each month, after deducting the amount required under section 5(a)(2)(C)(i) of this chapter, the state comptroller shall deduct an amount otherwise payable to Gary under section 5(a)(2)(C) of this chapter, if any, for the purpose of this chapter, not to exceed a total of two million dollars ($2,000,000) for the state fiscal year.

(f) Subject to subsections (i), (j), and (l), the state comptroller shall annually distribute supplemental payments to each qualified city, on a monthly basis, based on:

(1) the amount deducted under subsection (e) in the preceding month; and

(2) one-twelfth (1/12) of the amount appropriated from the state general fund under subsection (k).

(g) Money for the supplemental payments is sourced from:

(1) the total amount deducted under subsection (e) in the state fiscal year; plus

(2) money appropriated by the general assembly for the state fiscal year for the purpose of making supplemental payments under this section.

(h) The state comptroller shall make a supplemental payment in each state fiscal year to each qualified city in an amount determined under the last STEP of the following formula:

STEP ONE: Divide the:

(A) total amount determined under subsection (d) for the qualified city; by

(B) aggregate amount of supplemental payments for all qualified cities determined under subsection (d).

STEP TWO: Multiply the:

(A) STEP ONE result; by

(B) amount of money to be used for supplemental payments in the state fiscal year under subsections (f) and (g).

(i) A qualified city may not receive a supplemental payment in excess of the amount determined under subsection (d) for the qualified city.

(j) The total amount of supplemental payments made to qualified cities in all state fiscal years may not exceed the aggregate amount of supplemental payments determined under subsection (d).

(k) There is appropriated from the state general fund to the gaming fund two million dollars ($2,000,000) in each state fiscal year beginning after June 30, 2026, which may only be used to make supplemental payments. Any amount not needed to make a supplemental payment in a state fiscal year reverts to the state general fund at the close of the state fiscal year and may not be used for any other purpose.

(l) After the total amount of all supplemental payments to qualified cities determined in subsection (d) have been made under this chapter, the state comptroller shall continue, each month, after deducting the amount required under section 5(a)(2)(C)(i) of this chapter, to deduct an amount otherwise payable to Gary under section 5(a)(2)(C) of this chapter as set forth in subsection (e) not to exceed a total of two million dollars ($2,000,000) for the state fiscal year for the purpose of repaying to the state the total amounts appropriated from the state general fund under subsection (k) and paid to qualified cites as supplemental payments under this chapter. The state comptroller shall cease the deductions under this subsection on the date that the total amounts appropriated from the state general fund under subsection (k) and paid to qualified cites have been repaid.

(m) This section expires July 1, 2039.

As added by P.L.169-2025, SEC.2. Amended by P.L.157-2026, SEC.13.