1. (a) A watershed development commission shall deposit special assessments received under section 3 of this chapter into a segregated account maintained by the commission. Except as provided in subsection (b), special assessments deposited into the account may not be transferred into other accounts belonging to the commission. Money in the account may be used only for the following purposes:

   1. (1) To pay expenses directly related to the acquisition, construction, or improvement of real property, a facility, a betterment, or an improvement constituting part of a project of the commission, including acquisition of the site for a project.
   2. (2) To pay expenses directly related to the operation, repair, and maintenance of flood protection systems within the commission's designated watershed.
   3. (3) To pay the annual installment and interest on a loan or other financial assistance received by the commission under IC 5-1.2-13 .

   4. (4) To pay:

      1. (A) the compensation of:

         1. (i) the executive director of the commission appointed under IC 14-30.5-4-2 (e)(1); and
         2. (ii) the individuals holding any other offices of the commission established under IC 14-30.5-4-2 (e)(2); and

      2. (B) other administrative expenses of the commission.

         Money in the account may not be used for highway bridge repairs or reconstruction.

2. (b) A watershed development commission that has:

   1. (1) obtained easements from landowners; or

   2. (2) entered into contracts with landowners;

      allowing the use of land for flood storage purposes shall establish an account for reimbursing the landowners for the use of their land for flood storage. The account consists of money transferred from the segregated account described in subsection (a). A commission may transfer into the account established under this subsection amounts that the board of the commission considers appropriate.

As added by P.L.251-2023, SEC.13.