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.