1. (a) The Indiana natural heritage protection fund is established. The department shall administer the fund to effect the purposes of this chapter.

2. (b) The department may expend fund resources, except as provided in section 11 of this chapter, only when property or property interests are acquired as part of the campaign. Acquisition includes the following:

   1. (1) Purchase of property interest by the department.
   2. (2) Acceptance by the department of gifts of property interests as campaign projects.

   3. (3) At the department's option, reimbursement to entities that are not departments or agencies of the state of part or all of the acquisition costs, not to exceed the appraised value, of natural areas or property interest:

      1. (A) that those entities have purchased; and

      2. (B) to which those entities desire to keep title.

         However, reimbursement is permitted only when the proposed acquisition project is dedicated as a nature preserve under IC 14-31-1 or under IC 14-4-5 (before its repeal), or the natural features of the site that justify acquisition are otherwise permanently protected through similarly binding legal mechanisms.

3. (c) The department may expend fund resources supplied by the state only to the extent the resources have been matched with contributions to the fund of equal value from private sources. The private contributions:

   1. (1) may be made in cash or in contributions of land or property interests that are designated by the department as campaign acquisitions; and
   2. (2) shall be valued, for the purposes of this subsection, in accordance with the appraised value.
4. (d) The fund shall be managed to earn the highest interest compatible with prudent investment, preservation of principal, and reasonable liquidity. Absent reversion under subsection (e), principal and interest remain in the fund until expended under this chapter.

5. (e) Fund resources:

   1. (1) appropriated by the state; and

   2. (2) not matched within three (3) years from the date of the appropriation;

      revert to the state general fund.

      [Pre-1995 Recodification Citations: 14-4-5.1-2 part; 14-4-5.1-3(a).]

As added by P.L.1-1995, SEC.24.