Citations Affected: IC 5-1.
Synopsis: Restrictions on terms of bond issues. Provides that, without
the approval of the budget director after review by the budget
committee, certain entities may not include an agreement to seek
appropriations from the general assembly to restore a debt service
reserve fund or otherwise pay debt service on bonds or other
obligations in a resolution, trust agreement, indenture, or other
agreement adopted or entered into after March 31, 2002.
Effective: April 1, 2002.
January 10, 2002, read first time and referred to Committee on Finance.
January 22, 2002, reported favorably _ Do Pass.
January 28, 2002, read second time, amended, ordered engrossed.
January 29, 2002, engrossed.
January 31, 2002, read third time, passed. Yeas 49, nays 0.
A BILL FOR AN ACT to amend the Indiana Code concerning state
and local administration.
SECTION 1. IC 5-1-14-4.5 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
APRIL 1, 2002]: Sec. 4.5. (a) This section applies to:
(1) the Indiana development finance authority;
(2) the state office building commission;
(3) the Indiana health facility financing authority;
(4) the Indiana housing finance authority;
(5) the Indiana port commission;
(6) the Indiana transportation finance authority;
(7) the recreational development commission;
(8) the state fair commission;
(9) the Indiana educational facilities authority; and
(10) the Indiana political subdivision risk management commission.
(b) Notwithstanding any other law, after March 31, 2002, an issuer described in subsection (a), or any other entity or individual acting on behalf of an issuer described in subsection (a), may not:
(1) include in a resolution, trust agreement, indenture, or other agreement adopted or entered into after March 31, 2002, a provision stating that the issuer or any other entity or individual is authorized or required to request appropriations from the general assembly to:
(A) restore a debt service reserve fund; or
(B) otherwise pay debt service on or secure any obligations or any lease rental or contractual obligations; or
(2) amend a resolution, trust agreement, indenture, or any other agreement after March 31, 2002, by adding a provision described in subdivision (1);
unless the inclusion or addition of that provision is authorized by subsection (c) reviewed by the budget committee and approved by the budget agency approved by the budget director. A provision included in or added to a resolution, trust agreement, indenture, or other agreement in violation of this section is void and unenforceable.
(c) This section:
(1) does not prohibit the Indiana bond bank from including a description of the duties of the chairman of the Indiana bond bank under IC 5-1.5-5-4 or IC 5-1.5-6.5-4; and
(2) does not prohibit the Indiana transportation finance authority from including a description of the duties of the chairman of the authority under IC 8-14.5-5-2(d);
in a resolution, trust agreement, indenture, or other agreement.
SECTION 2. An emergency is declared for this act.