SB 243-2_ Filed 04/12/2001, 09:18
Adopted 4/12/2001


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    PREVAILED      Roll Call No. _______
    FAILED        Ayes _______
    WITHDRAWN        Noes _______
    RULED OUT OF ORDER


[

HOUSE MOTION ____

]

MR. SPEAKER:

    I move that Engrossed Senate Bill 243 be recommitted to a Committee of One, its sponsor, with specific instructions to amend as follows:

SOURCE: Page 1, line 1; (01)MO024301.1. -->     Page 1, delete lines 1 through 16.
    Page 2, delete lines 33 through 42.
    Page 3, delete lines 1 through 20, begin a new paragraph and insert:
SOURCE: IC 13-11-2-151.1; (01)MO024301.3. -->     "SECTION 3. IC 13-11-2-151.1 , AS ADDED BY P.L.132-1999, SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]: Sec. 151.1. (a) "Participant", for purposes of section 83(a) of this chapter and IC 13-18-13 , means:
        (1) a political subdivision; or
        (2) for a nonpoint source pollution reduction project, a private entity.

     (b) "Participant", for purposes of section 83(c) of this chapter and IC 13-18-21 , means:
        (1) a political subdivision; or
        (2) any other owner or operator of a public water system.".
SOURCE: Page 4, line 7; (01)MO024301.4. -->     Page 4, between lines 7 and 8, begin a new line block indented and insert:
        " (3) Groundwater remediations conducted under any other provision of IC 13, as appropriate.
     (c) Responses to spills of hazardous substances, extremely hazardous substances, petroleum, and other objectionable substances that are regulated under 327 IAC 2-6.1 shall be conducted in a manner that is consistent with the requirements of 327 IAC 2-6.1.".
    Page 5, delete lines 7 through 42.
    Page 6, delete lines 1 through 7, begin a new paragraph and insert:
SOURCE: IC 13-18-13-3; (01)MO024301.6. -->     "SECTION 6. IC 13-18-13-3 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]: Sec. 3. Money in the fund may be used to do the following:
        (1) Provide loans or other financial assistance to political subdivisions participants for:
             (A) the planning, designing, construction, renovation, improvement, or expansion of wastewater collection and treatment systems and other activities necessary or convenient to complete these tasks; or
            (B) a nonpoint source pollution reduction project.

        (2) Pay the cost of administering the fund and the program.
        (3) Conduct all other activities that are permitted by the federal Clean Water Act.
SOURCE: IC 13-18-13-6; (01)MO024301.7. -->     SECTION 7. IC 13-18-13-6 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]: Sec. 6. The budget agency shall do the following:
        (1) Manage and implement the financial aspects of the program and supplemental program.
        (2) Cooperate with the department in the administration and management of the program and supplemental program.
        (3) If not accepted and held by the department, accept and hold any letter of credit from the federal government through which the state receives grant payments for the program and disbursements to the fund.
        (4) Be the point of contact with political subdivisions participants and other interested persons in preparing and providing program information.
        (5) Negotiate, jointly with the department, the negotiable aspects of each financial assistance agreement.
        (6) Prepare or cause to be prepared each financial assistance agreement.
        (7) Sign each financial assistance agreement.
        (8) Conduct or cause to be conducted an evaluation as to the financial ability of each political subdivision participant to pay the loan or other financial assistance and other obligations evidencing the loans or other financial assistance, if required to be paid, and comply with the financial assistance agreement in accordance with the terms of the agreement.
        (9) Prepare, jointly with the department, annual reports concerning the following:
            (A) The fund.
            (B) The program.
            (C) The supplemental fund.
            (D) The supplemental program.
        (10) Submit the reports prepared under subdivision (9) to the governor and the general assembly.
        (11) Enter into memoranda of understanding with the department concerning the administration and management of the following:
            (A) The fund.
            (B) The program.
            (C) The supplemental fund.
            (D) The supplemental program.".
SOURCE: Page 6, line 9; (01)MO024301.6. -->     Page 6, line 9, reset in roman "department".
    Page 6, line 10, reset in roman "and the".
    Page 6, line 15, reset in roman "department and the".
    Page 6, delete lines 22 through 42.
    Page 7, delete lines 1 through 34, begin a new paragraph and insert:
SOURCE: IC 13-18-13-9; (01)MO024301.9. -->     "SECTION 9. IC 13-18-13-9 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]: Sec. 9. (a) The department shall use a priority ranking system to recommend loans or other financial assistance from the fund. The department shall develop the priority ranking system to achieve optimum water quality consistent with the water quality goals of the state and the federal Clean Water Act.
    (b) Based on the recommendations made under subsection (a), the budget agency may make loans and provide other financial assistance from the fund to or for the benefit of political subdivisions. participants.
SOURCE: IC 13-18-13-10; (01)MO024301.10. -->     SECTION 10. IC 13-18-13-10 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]: Sec. 10. The budget agency may make loans or provide other financial assistance from the fund to or for the benefit of a political subdivision participant under the following conditions:
        (1) The loan or other financial assistance must be used:
            (A) for planning, designing, constructing, renovating, improving, or expanding wastewater collection and treatment systems and other activities necessary or convenient to complete these tasks;
            (B) to:
                (i) establish reserves or sinking funds; or
                (ii) provide interest subsidies;
            (C) to pay financing charges, including interest on the loan or other financial assistance during construction and for a reasonable period after the completion of construction; or
            (D) to pay the following:
                (i) Consultant, advisory, and legal fees.
                (ii) Any other costs or expenses necessary or incident to the loan, other financial assistance, or the administration of the fund and the program; or
            (E) for nonpoint source pollution reduction projects.

        (2) Subject to section 15 of this chapter, upon recommendation of the budget agency the state board of finance shall establish the interest rate or parameters for establishing the interest rate on each loan, including parameters for establishing the amount of interest subsidies.
        (3) The budget agency shall establish the terms and conditions that the budget agency considers necessary or convenient to:
            (A) make loans; or
            (B) provide other financial assistance under this chapter.".
SOURCE: Page 9, line 19; (01)MO024301.9. -->     Page 9, delete lines 19 through 42.
    Page 10, delete lines 1 through 37, begin a new paragraph and insert:
SOURCE: IC 13-18-13-15; (01)MO024301.15. -->     "SECTION 15. IC 13-18-13-15 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]: Sec. 15. (a) In recommending to the state board of finance the interest rate or parameters for establishing the interest rate on each loan, as provided in section 10 of this chapter, the budget agency shall recommend and the state board of finance shall establish the following:
        (1) A base or subsidized interest rate that:
            (A) would be payable by political subdivisions participants other than political subdivisions participants described in subdivision (2) or (3); and
            (B) may provide for the payment of no interest during all or a part of the estimated construction period for the wastewater treatment system.
        (2) A base reduced or more heavily subsidized interest rate, that:
            (A) would be payable by political subdivisions participants whose median household incomes are:
                (i) not more than the state nonmetropolitan median household income, as determined and reported by the federal government periodically; and
                (ii) not less than eighty-one percent (81%) of the state nonmetropolitan median household income; and
            (B) may provide for the payment of no interest during all or a part of the estimated construction period for the wastewater collection and treatment system.
        (3) A base zero (0) or most heavily subsidized interest rate that:
            (A) would be payable on loans made to political subdivisions participants whose median household incomes are not more than eighty percent (80%) of the state nonmetropolitan household income; and
            (B) may provide for the payment of no interest during all or a part of the estimated construction period of the wastewater collection and treatment system.
    (b) The budget agency, in recommending to the state board of finance the interest rate or parameters for establishing the interest rate

on each loan under section 10 of this chapter, shall take into account the following:
        (1) Credit risk.
        (2) Environmental enforcement and protection.
        (3) Affordability.
        (4) Other fiscal factors the budget agency considers relevant.
    (c) In enacting this section, the general assembly understands that, in financing the program, the Indiana bond bank issued at the budget agency's request, and will continue to issue at the budget agency's request:
        (1) revenue bonds payable from and secured by political subdivisions; participants; and
        (2) loan payments made by and loan payments made to political subdivisions. participants.
It is not the intent of the general assembly to cause the budget agency or the state board of finance to establish interest rates on loans or parameters for establishing interest rates that would cause the bond bank's revenue bonds to be insecure or otherwise negatively affect the ability of the state to continue to finance the program.".

SOURCE: Page 11, line 27; (01)MO024301.11. -->     Page 11, delete lines 27 through 42.
    Delete page 12.
    Page 13, delete lines 1 through 5, begin a new paragraph and insert:
SOURCE: IC 13-18-13-19; (01)MO024301.18. -->     "SECTION 18. IC 13-18-13-19 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]: Sec. 19. (a) Notwithstanding any other law, a political subdivision participant may borrow money from the budget agency by negotiating a loan or other financial assistance directly and without complying with requirements for the competitive sale of bonds, notes, or other obligations or evidences of indebtedness. A political subdivision participant shall observe any existing contractual commitments to bondholders or other persons when entering into a financial assistance agreement.
    (b) Notwithstanding any other law, a political subdivision participant may issue and sell its notes, the principal and accrued interest on which shall be paid with proceeds from the issuance of its bonds or other available money at the time the notes are due. The notes must be issued pursuant to a resolution or ordinance and the proceeds must be used to carry out the purposes specified in this chapter.
    (c) A political subdivision participant that issues notes under subsection (b) or IC 4-23-21-13 (before its repeal) may renew or extend the notes periodically on terms agreed to with the budget agency, and the budget agency may purchase and sell the renewed or extended notes. Accrued interest on the date of renewal or extension may be paid or added to the principal amount of the note being renewed or extended.
    (d) The notes issued by a political subdivision participant under subsection (b), including any renewals or extensions, must mature:
        (1) in the amounts; and
        (2) at the times not exceeding four (4) years from the date of original issuance;
that are agreed to by the political subdivision participant and the budget agency.
    (e) Compliance with subsection (b) constitutes full authority for a political subdivision participant to issue its notes and sell the notes to the department and the budget agency, and the political subdivision participant is not required to comply with any other law applicable to the authorization, approval, issuance, and sale of its notes. These notes are:
        (1) valid and binding obligations of the political subdivision; participant;
        (2) enforceable in accordance with the terms of the notes; and
        (3) payable solely from the sources specified in the resolution or ordinance authorizing the issuance of the notes.
    (f) If the political subdivision participant issues bonds, all or part of the proceeds of which will be used to pay the notes issued under subsection (b), neither:
        (1) the provisions of this section; nor
        (2) the actual issuance by a political subdivision participant of notes under subsection (b);
relieves the political subdivision participant of the obligation to comply with the statutory requirements for the issuance of bonds.".
SOURCE: Page 13, line 39; (01)MO024301.13. -->     Page 13, delete lines 39 through 42.
    Delete pages 14 through 20.
    Page 21, delete lines 1 through 25, begin a new paragraph and insert:
SOURCE: ; (01)MO024301.20. -->     "SECTION 20. [EFFECTIVE JULY 1, 2001] (a) On or before December 31, 2002, the water pollution control board and the budget agency shall jointly amend:
        (1) 85 IAC 1-1-1 through 85 IAC 2-14-1; and
        (2) 327 IAC 13;
to reflect the amendments to IC 13-11 and IC 13-18 by this act.
    (b) This SECTION expires January 1, 2003.
".
    Renumber all SECTIONS consecutively.
    (Reference is to ESB 243 as reprinted April 12, 2001.)

________________________________________

Representative Weinzapfel



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Adopted Rejected



COMMITTEE REPORT

MR. SPEAKER:

    Your Committee of One, to which was referred Engrossed Senate Bill 243, begs leave to report that said bill has been amended as directed.

________________________________________

Representative Weinzapfel


MO024301/DI 69     2001