February 9, 2001
HOUSE BILL No. 1728
_____
DIGEST OF HB 1728
(Updated February 7, 2001 5:11 PM - DI 94)
Citations Affected: IC 5-1.4.
Synopsis: Local public improvement bond banks. Adds excluded cities
(certain communities in Marion County) and public schools to the list
of qualified entities from which a local public improvement bond bank
may purchase certain securities. Grants a local public improvement
bond bank the powers necessary to carry out an equipment leasing
program. Makes conforming changes.
Effective: Upon passage.
Crawford
January 17, 2001, read first time and referred to Committee on Local Government.
February 8, 2001, reported _ Do Pass.
February 9, 2001
First Regular Session 112th General Assembly (2001)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in
this style type, and deletions will appear in
this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in
this style type. Also, the
word
NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in
this style type or
this style type reconciles conflicts
between statutes enacted by the 2000 General Assembly.
HOUSE BILL No. 1728
A BILL FOR AN ACT to amend the Indiana Code concerning state
and local administration.
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 5-1.4-1-10; (01)HB1728.1.1. -->
SECTION 1.
IC 5-1.4-1-10
IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 10. "Qualified
entity" means the following:
(1) A city.
(2) A county.
(3) A special taxing district located wholly within a county.
(4) An excluded city (as described in
IC 36-3-1-7
).
(5) Any entity whose tax levies are subject to review and
modification by a city-county legislative body under
IC 36-3-6-9.
(5) (6) A political subdivision (as defined in
IC 36-1-2-13
) that is
located wholly within a county:
(A) that has a population of:
(i) more than four hundred thousand (400,000) but less than
seven hundred thousand (700,000); or
(ii) more than two hundred thousand (200,000) but less than
three hundred thousand (300,000); or
(B) containing a city that:
(i) is described in section 5(3) of this chapter; and
(ii) has a public improvement bond bank under this article.
(6) (7) A public school
.
(8) Any authority created under IC 36 that leases land or facilities
to any qualified entity listed in subdivisions (1) through (5). (7).
SOURCE: IC 5-1.4-1-12; (01)HB1728.1.2. -->
SECTION 2.
IC 5-1.4-1-12
IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 12. "Security"
means:
(1) a bond, note, or evidence of indebtedness issued by a qualified
entity; and
(2) a lease or certificate or other evidence of participation in
the lessor's interest in and rights under a lease with a
qualified entity;
that is payable from taxes, revenues, rates, charges, assessments,
proceeds of funding or refunding bonds or notes, or any combination
of the foregoing.
SOURCE: IC 5-1.4-3-2; (01)HB1728.1.3. -->
SECTION 3.
IC 5-1.4-3-2
IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 2. The bank may:
(1) make, enter into, and enforce all contracts necessary,
convenient, or desirable for the purposes of the bank or pertaining
to:
(A)
a loan to or a lease or an agreement with a qualified
entity;
(B) a purchase or sale of securities or other investments; or
(B) (C) the performance of its duties and execution of any of
its powers under this article;
(2) purchase or hold securities at prices and in a manner the bank
considers advisable and sell securities acquired or held by it at
prices without relation to cost and in a manner the bank considers
advisable;
(3) prescribe the form of application or procedure required of a
qualified entity for a purchase of its securities, fix the terms and
conditions of the purchase, and enter into agreements with
qualified entities with respect to purchases;
(4) render services to a qualified entity in connection with a
public or private sale of its securities, including advisory and
other services, and charge for services rendered;
(5) charge for its costs and services in review or consideration of
a proposed purchase by the bank of securities, whether the
securities are purchased;
(6) fix and establish terms and provisions with respect to:
(A) a purchase of securities by the bank, including date and
maturities of the securities;
(B) redemption or payment before maturity; and
(C) any other matters that in connection with the purchase are
necessary, desirable, or advisable in the judgment of the bank;
(7) to the extent permitted under its contracts with the holders of
bonds or notes of the bank, consent to modification of the rate of
interest, time for payment of any installment of principal or
interest, security, or any other term of a bond or note, contract, or
agreement of any kind to which the bank is a party; and
(8) appoint and employ general or special counsel, accountants,
financial advisors or experts, and all such other or different
officers, agents, and employees as it requires and determine their
qualifications, duties, and compensation, all in order to effectuate
the purposes of this article; and
(9) acquire, hold, and lease or sell property to a qualified
entity under a financing lease, lease with option to purchase,
conditional sales contract, or any other form of agreement,
upon the terms and conditions that the board considers
advisable in order to promote the purpose of this article.
SOURCE: IC 5-1.4-8-6; (01)HB1728.1.4. -->
SECTION 4.
IC 5-1.4-8-6
IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 6. (a)
Notwithstanding any other law applicable to a qualified entity as to
borrowing money, a qualified entity may issue and sell its notes to the
bank, and the bank may purchase these notes. The notes must be issued
pursuant to a resolution of the qualified entity, and the proceeds must
be applied to costs for which the qualified entity may issue bonds.
(b) The qualified entity may renew or extend the notes from time to
time on terms agreed to with the bank, and the bank may purchase
these renewals or extensions. The amount of 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.
(c) The notes of the qualified entity, including any renewals or
extensions, must mature in the amounts and at the times (not exceeding
two (2) years from the date of original issuance) as are agreed to by the
qualified entity and the bank. However, the legislative body of the
city
qualified entity in the case of a qualified entity defined in
IC 5-1.4-1-10
(1) through
(3) IC 5-1.4-1-10(4) or the governing body
of the qualified entity in the case of a qualified entity defined in
IC 5-1.4-1-10(4)
IC 5-1.4-1-10
(5) through
(6), IC 5-1.4-1-10(8), by
resolution, may authorize an extension of the maturity beyond two (2)
years for an additional period of no more than three (3) years. Any such
extension may be authorized in the resolution originally authorizing
issuance of the notes. The notes of the qualified entity and accrued
interest thereon shall be paid with proceeds from the issuance of its
bonds, when and if the bonds are issued, or other money available to
the qualified entity, which money the qualified entity may pledge to the
payment of its notes.
(d) Compliance with this section constitutes full authority for a
qualified entity to issue its notes and sell them to the bank, and the
qualified entity is not required to comply with any other law applicable
to the authorization, approval, issuance, and sale of bonds, notes, or
other evidences of indebtedness. However, if the qualified entity
decides to issue bonds, neither the provisions of this section nor the
actual issuance by a qualified entity of its notes shall relieve the
qualified entity of completing the requirements for the issuance of its
bonds all or part of the proceeds of which will be used to retire the
notes.
(e) In connection with the purchase of notes, the bank may by
agreement with the qualified entity impose any terms, conditions, and
limitations as in its opinion are proper for the security of the bank and
the holders of its bonds or notes. If the qualified entity fails to comply
with the agreement or to retire its notes, the bank may enforce all rights
and remedies provided in the agreement or at law.
SOURCE: ; (01)HB1728.1.5. -->
SECTION 5.
An emergency is declared for this act.