Second Regular Session 111th General Assembly (2000)


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     HOUSE ENROLLED ACT No. 1054



     AN ACT to amend the Indiana Code concerning education finance.

Be it enacted by the General Assembly of the State of Indiana:

SOURCE: IC 20-5-4-1.5; (00)HE1054.1.1. -->     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 following limitations:
        (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

corporation.
        (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 retired.
    (c) Bonds issued for the purpose described in this section shall be issued in the same manner as other bonds of the school corporation.

     (d) Bonds issued under this section must be issued before December 2, 2000.

SOURCE: IC 20-5-4-1.5; (00)HE1054.1.2. -->     SECTION 2. IC 20-5-4-1.5 IS REPEALED [EFFECTIVE DECEMBER 2, 2000].
SOURCE: ; (00)HE1054.1.3. -->     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.


HEA 1054

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