February 11, 2000
HOUSE BILL No. 1054
DIGEST OF HB 1054
(Updated February 10, 2000 11:44 AM - DI 44)
Citations Affected: IC 20-5; noncode.
Synopsis: Bonds for school corporation retirement liability.
Authorizes school corporations in St. Joseph County to issue bonds to
implement solutions to contractual retirement or severance liability as
it existed on June 30, 1998. Provides that those school corporations
may issue bonds for this purpose only one time and that the bonds must
be issued before December 2, 2000. Requires a reduction in property
tax levies for the school's capital projects fund, transportation fund, or
the art and historical society fund to offset the debt service levy needed.
Effective: July 1, 2000; December 2, 2000.
Dvorak, Mock, Fry
(SENATE SPONSOR _ ZAKAS)
January 10, 2000, read first time and referred to Committee on Ways and Means.
January 20, 2000, amended, reported _ Do Pass.
January 25, 2000, read second time, ordered engrossed. Engrossed.
January 26, 2000, read third time, passed. Yeas 97, nays 0.
January 27, 2000, read first time and referred to Committee on Finance.
February 10, 2000, reported favorably _ Do Pass.
February 11, 2000
Second Regular Session 111th General Assembly (2000)
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HOUSE BILL No. 1054
A BILL FOR AN ACT to amend the Indiana Code concerning
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 20-5-4-1.5; (00)EH1054.1.1. -->
SECTION 1. IC 20-5-4-1.5 IS ADDED TO THE INDIANA CODE
AS A NEW
SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2000]: Sec. 1.5. (a) For purposes of this section, "retirement or
severance liability" means the payments anticipated to be required
to be made to employees of a school corporation upon or after the
termination of their employment by the school corporation under
an existing or previous employment agreement.
(b) In addition to the purposes set forth in section 1 of this
chapter, school corporations located in a county having a
population of more than two hundred thousand (200,000) but less
than three hundred thousand (300,000) may issue bonds to
implement solutions to contractual retirement or severance
liability. The issuance of bonds for this purpose is subject to the
(1) A school corporation may issue bonds for the purpose
described in this section only one (1) time.
(2) The solution to which the bonds are contributing must be
reasonably expected to reduce the school corporation's
existing unfunded contractual liability for retirement or
severance payments, as of June 30, 1998.
(3) The amount of the bonds that may be issued for the
purpose described in this section may not exceed two percent
(2%) of the total assessed valuation of property in the school
(4) Each year that a debt service levy is needed under this
section, the school corporation shall reduce its total property
tax levy for the school corporation's transportation, capital
projects, or art association and historical society funds in an
amount equal to the property tax levy needed for the debt
service under this section. The property tax rate for each of
these funds shall be reduced each year until the bonds are
(c) Bonds issued for the purpose described in this section shall
be issued in the same manner as other bonds of the school
(d) Bonds issued under this section must be issued before
December 2, 2000.
SOURCE: IC 20-5-4-1.5; (00)EH1054.1.2. -->
SECTION 2. IC 20-5-4-1.5 IS REPEALED [EFFECTIVE
DECEMBER 2, 2000].
SOURCE: ; (00)EH1054.1.3. -->
SECTION 3. [EFFECTIVE DECEMBER 2, 2000]
Notwithstanding the repeal of IC 20-5-4-1.5, as added by this act,
the following provisions apply to bonds issued under IC 20-5-4-1.5,
as added by this act, before December 2, 2000:
(1) The bonds remain valid and binding obligations of the
school corporation that issued them, as if IC 20-5-4-1.5 had
not been repealed.
(2) Each year that a debt service levy is needed for the bonds,
the school corporation that issued the bonds shall reduce its
total property tax levy for the school corporation's other
funds in an amount equal to the property tax levy needed for
the debt service on the bonds.