Citations Affected: IC 20-5-4-1.5 .
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.
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 other property tax levies to
offset the debt service levy needed.
Effective: July 1, 2000; December 2, 2000.
November 18, 1999, read first time and referred to Committee on Finance.
A BILL FOR AN ACT to amend the Indiana Code concerning
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
(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 other funds in an amount equal to the property tax levy needed for the debt service under this section.
(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.
SECTION 2. IC 20-5-4-1.5 IS REPEALED [EFFECTIVE DECEMBER 2, 2000].
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.