Citations Affected: IC 6-1.1;
IC 6-3.5-1.1-14
;
IC 6-5.5-8-2
; IC 6-6;
IC 12-19-1.5
; IC 20-1; IC 20-2;
IC 20-3-11-18
;
IC 20-3-11-20;
IC 20-3.1-15-1
; IC 20-4; IC 20-5;
IC 20-5.5-7-3
; IC 20-8.1;
IC 20-9.1-1-3
;
IC 20-10.1-6.5-1
;
IC 21-1-1-54
; IC 21-2; IC 21-3;
IC 21-4-20-1.
Synopsis: Elimination of general school operating levies. Eliminates
the authority of a school corporation to levy a property tax for its
general fund. Provides for full state funding of tuition support to school
corporations. Repeals: (1) an obsolete application clause; (2) an
obsolete law providing for a supplemental school operating reserve
fund levy to repay tuition support advances made in 1972; (3) the
general power of the Indianapolis Public Schools to impose an
emergency levy for its general fund; and (4) a provision concerning
revenue anticipation warrants for school towns and school cities that is
more restrictive than the general provision applying to all school
corporations. Makes other related changes.
Effective: Upon passage; July 1, 2002; January 1, 2003.
January 14, 2002, read first time and referred to Committee on Finance.
A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
SECTION 1.
IC 6-1.1-19-1
IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 1. As used in this
chapter, the following terms have the following meanings, unless the
context clearly requires otherwise:
(a) "School year" means the period of time from July 1 of each year
until June 30 of the following year.
(b) "ADA" means, as to any school corporation, the average number
of pupils in daily attendance in the school corporation, determined in
accordance with the rules and regulations established by the Indiana
state board of education.
(c) "Current ADA" means the most recently determined ADA for
the school corporation in question.
(d) With the exception provided for in section 6(b) of this chapter,
"ADA ratio" means, as to any school corporation, the quotient resulting
from a division of that school corporation's current ADA by that school
corporation's ADA for the school year ending in 1973. However, in any
case in which the quotient is less than one (1), the ADA ratio for the
school corporation is one (1).
(e) "General fund" means the fund that the governing body of each
school corporation is required to establish by IC 21-2-11-2.
(f) With the exceptions provided for in sections 4.4(a)(4), 4.5(c),
6(b), and 6(c) of this chapter, "base tax levy" means the total dollar
amount of the ad valorem tax levy for its general fund that was levied
by a school corporation for taxes collectible in 1973, assuming one
hundred percent (100%) tax collection.
(g) "Excessive tax levy" means a school corporation's general fund
ad valorem property tax levy for a calendar year which exceeds the
maximum general fund ad valorem property tax levy permitted under
section 1.5 of this chapter.
(h) "Normal tax levy" means the total dollar amount of any general
fund ad valorem property tax levy that is made by a school corporation
for a calendar year, and that is not an excessive tax levy.
(i) (e) "Tax control board" means the school property tax control
board established by section 4.1 of this chapter.
SECTION 2.
IC 6-1.1-19-1.5
, AS AMENDED BY P.L.291-2001,
SECTION 89, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2002]: Sec. 1.5. (a) The following definitions apply
throughout this section and IC 21-3-1.7:
(1) "Adjustment factor" means the adjustment factor determined
by the state board of tax commissioners for a school corporation
under IC 6-1.1-34.
(2) "Adjusted target property tax rate" means:
(A) the school corporation's target general fund property tax
rate determined under IC 21-3-1.7-6.8; multiplied by
(B) the school corporation's adjustment factor.
(3) "Previous year property tax rate" means the school
corporation's previous year general fund property tax rate after the
reductions cited in IC 21-3-1.7-5(1), IC 21-3-1.7-5(2), and
IC 21-3-1.7-5(3).
(b) Except as otherwise provided in this chapter, a school
corporation may not, for an ensuing calendar year after December 31,
2002, impose a general fund ad valorem property tax levy which that
exceeds the following:
STEP ONE: Determine the result of:
(A) the school corporation's adjusted target property tax rate;
minus
(B) the school corporation's previous year property tax rate.
STEP TWO: Determine the result of:
(A) the school corporation's target general fund property tax
rate determined under IC 21-3-1.7-6.8; multiplied by
(B) the quotient resulting from:
(i) the absolute value of the result of the school corporation's
adjustment factor minus one (1); divided by
(ii) two (2).
STEP THREE: If the school corporation's adjusted target property
tax rate:
(A) exceeds the school corporation's previous year property tax
rate, perform the calculation under STEP FOUR and not under
STEP FIVE;
(B) is less than the school corporation's previous year property
tax rate, perform the calculation under STEP FIVE and not
under STEP FOUR; or
(C) equals the school corporation's previous year property tax
rate, determine the levy resulting from using the school
corporation's adjusted target property tax rate and do not
perform the calculation under STEP FOUR or STEP FIVE.
The school corporation's 2002 assessed valuation shall be used for
purposes of determining the levy under clause (C) in 2002 and in
2003.
STEP FOUR: Determine the levy resulting from using the school
corporation's previous year property tax rate after increasing the
rate by the lesser of:
(A) the STEP ONE result; or
(B) the sum of:
(i) five cents ($0.05); plus
(ii) if the school corporation's adjustment factor is more than
one (1), the STEP TWO result.
The school corporation's 2002 assessed valuation shall be used for
purposes of determining the levy under this STEP in 2002 and in
2003.
STEP FIVE: Determine the levy resulting from using the school
corporation's previous year property tax rate after reducing the
rate by the lesser of:
(A) the absolute value of the STEP ONE result; or
(B) the sum of:
(i) nine cents ($0.09); plus
(ii) if the school corporation's adjustment factor is less than
one (1), the STEP TWO result.
The school corporation's 2002 assessed valuation shall be used for
purposes of determining the levy under this STEP in 2002 and in
2003.
under IC 6-1.1-17-12, and an appeal shall be permitted therefrom as
provided under IC 6-1.1-17 as modified by this chapter.
(d) Appeals from any action of a county board of tax adjustment or
county auditor in respect of a school corporation's budget, tax levy, or
tax rate may be taken as provided for by
IC 6-1.1-17.
Notwithstanding
IC 6-1.1-17, a school corporation may appeal to the state board of tax
commissioners for emergency financial relief for the ensuing calendar
year at any time after the budget, tax rate, and tax levy of the school
corporation are fixed under IC 6-1.1-17-5, but not later than twenty
(20) days after the county auditor publishes notice under
IC 6-1.1-17-12 of the tax rate to be charged in the school corporation
for the ensuing calendar year.
(e) In the appeal petition in which a school corporation seeks
emergency financial relief, the appellant school corporation shall allege
that, unless it is given the emergency financial relief for which it
petitions, it will be unable to carry out, in the ensuing calendar year, the
public educational duty committed to it by law, and it shall support that
allegation by reasonably detailed statements of fact.
(f) When an appeal petition in which a school corporation petitions
for emergency financial relief is filed with the state board of tax
commissioners, the board shall include, in the notice of the hearing in
respect of the petition that it is required to give under IC 6-1.1-17-16,
a statement to the effect that the appellant school corporation is seeking
emergency financial relief for the ensuing calendar year. A subsequent
action taken by the state board of tax commissioners in respect of such
an appeal petition is not invalid, however, or otherwise affected, if the
board fails to include such a statement in the hearing notice.
SECTION 4.
IC 6-1.1-19-7
IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 7. Any
recommendation that is to be made by the tax control board to the state
board of tax commissioners pursuant to any provision of this chapter
shall be made at such a time as is prescribed in this chapter and, if no
time for the making of such a recommendation is prescribed in this
chapter, then the recommendation shall be made at such a time as will
permit the state board department of tax commissioners local
government finance to complete those duties of the board that are
defined in IC 1971, 6-1.1-17 within the time allowed by law for the
completion of those duties, or such additional time as is reasonably
necessary for the state board department of tax commissioners local
government finance and the tax control board to complete the duties
provided by this chapter. No tax levy shall be invalid because of the
failure of either department or board to complete its duties within the
time or time limits provided by this chapter or any other law. Subject
to the provisions of this chapter, the state board department of tax
commissioners local government finance may accept, reject, or accept
in part and reject in part any recommendation of the tax control board
that is made to it under this chapter and may make any order that is
consistent with the provisions of IC 1971, 6-1.1-17. The state board of
tax commissioners may not approve or authorize an excessive tax levy
except in accordance with the provisions of this chapter.
SECTION 5.
IC 6-1.1-19-12
IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2002]: Sec. 12. (a) A school corporation may appeal under this
chapter to the department of local government finance to increase
the amount of the state tuition support distributed to the school
corporation under
IC 21-3-1.7
in excess of the school corporation's
target revenue per ADM determined under
IC 21-3-1.7-6.7.
(b) The appeal must be filed before October 1 of the year
preceding the year in which the school corporation seeks to have
the increase take effect.
(c) If the school corporation can show a need for an increased
state tuition support distribution due to the opening after
December 31, 2001, of:
(1) a new school facility; or
(2) an existing facility that has not been used for at least three
(3) years and that is being reopened to provide additional
classroom space;
the tax control board may recommend to the department of local
government finance that the amount of tuition support distributed
under
IC 21-3-1.7
be increased in excess of the school corporation's
target revenue per ADM determined under
IC 21-3-1.7-6.7.
(d) The increase, if approved by the department of local
government finance, shall be an amount equal to the increase in
costs resulting to the school corporation from:
(1) the opening and operation of the new school facility; or
(2) the reopening and operation of an existing facility that has
not been used for at least three (3) years and that is being
reopened to provide additional classroom space.
(e) In determining the increased costs, the tax control board and
the department of local government finance shall consider the:
(1) costs to the school corporation of complying with safety,
health, space, heat, or lighting standards required by state or
federal law or regulation; and
(2) other physical operation costs that in the opinion of the tax
control board and department of local government finance
justify an adjustment in the school corporation's state tuition
support distribution.
(f) If the department of local government finance approves an
increase under this section, the department shall notify the
department of education. The department of education shall adjust
the state tuition support distributions to the school corporation to
include the proposed increase. The additional amount distributed
under this subsection does not increase the maximum amount
distributable to school corporations for state tuition support under
IC 21-3-1.7-9.
SECTION 6.
IC 6-1.1-21-2
IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 2. As used in this
chapter:
(a) "Taxpayer" means a person who is liable for taxes on property
assessed under this article.
(b) "Taxes" means taxes payable in respect to property assessed
under this article. The term does not include special assessments,
penalties, or interest, but does include any special charges which a
county treasurer combines with all other taxes in the preparation and
delivery of the tax statements required under
IC 6-1.1-22-8
(a).
(c) "Department" means the department of state revenue.
(d) "Auditor's abstract" means the annual report prepared by each
county auditor which under
IC 6-1.1-22-5
, is to be filed on or before
March 1 of each year with the auditor of state.
(e) "Mobile home assessments" means the assessments of mobile
homes made under
IC 6-1.1-7.
(f) "Postabstract adjustments" means adjustments in taxes made
subsequent to the filing of an auditor's abstract which change
assessments therein or add assessments of omitted property affecting
taxes for such assessment year.
(g) "Total county tax levy" means the sum of:
(1) the remainder of:
(A) the aggregate levy of all taxes for all taxing units in a
county which are to be paid in the county for a stated
assessment year as reflected by the auditor's abstract for the
assessment year, adjusted, however, for any postabstract
adjustments which change the amount of the aggregate levy;
minus
(B) the sum of any increases in property tax levies of taxing
units of the county that result from appeals described in:
(i)
IC 6-1.1-18.5-13
(5) and
IC 6-1.1-18.5-13
(6) filed after
December 31, 1982; plus
(ii) the sum of any increases in property tax levies of taxing
units of the county that result from any other appeals
described in
IC 6-1.1-18.5-13
filed after December 31,
1983; plus
(iii)
IC 6-1.1-18.6-3
(children in need of services and
delinquent children who are wards of the county); minus
(C) the total amount of property taxes imposed for the stated
assessment year by the taxing units of the county under the
authority of
IC 12-1-11.5
(repealed),
IC 12-2-4.5
(repealed),
IC 12-19-5
, or
IC 12-20-24
; minus
(D) the total amount of property taxes to be paid during the
stated assessment year that will be used to pay for interest or
principal due on debt that:
(i) is entered into after December 31, 1983;
(ii) is not debt that is issued under
IC 5-1-5
to refund debt
incurred before January 1, 1984; and
(iii) does not constitute debt entered into for the purpose of
building, repairing, or altering school buildings for which
the requirements of
IC 20-5-52
were satisfied prior to
January 1, 1984; minus
(E) the amount of property taxes imposed in the county for the
stated assessment year under the authority of
IC 21-2-6
or any
citation listed in
IC 6-1.1-18.5-9.8
for a cumulative building
fund whose property tax rate was initially established or
reestablished for a stated assessment year that succeeds the
1983 stated assessment year; minus
(F) the remainder of:
(i) the total property taxes imposed in the county for the
stated assessment year under authority of
IC 21-2-6
or any
citation listed in
IC 6-1.1-18.5-9.8
for a cumulative building
fund whose property tax rate was not initially established or
reestablished for a stated assessment year that succeeds the
1983 stated assessment year; minus
(ii) the total property taxes imposed in the county for the
1984 stated assessment year under the authority of
IC 21-2-6
or any citation listed in
IC 6-1.1-18.5-9.8
for a cumulative
building fund whose property tax rate was not initially
established or reestablished for a stated assessment year that
succeeds the 1983 stated assessment year; minus
(G) the amount of property taxes imposed in the county for the
stated assessment year under:
unit during the calendar year the installment is due and payable.
(c) The obligation to repay the loan is not a basis for the qualified
taxing unit to obtain an excessive tax levy under
IC 6-1.1-18.5
or
IC 6-1.1-19.
(d) Whenever the board receives a payment on a loan made under
this chapter, the board shall deposit the amount paid in the
counter-cyclical revenue and economic stabilization fund.
(e) This section may not be construed to prevent the qualified taxing
unit from repaying a loan made under this chapter before the date
specified in subsection (a) if a taxpayer described in section 3 of this
chapter resumes paying property taxes to the qualified taxing unit.
SECTION 8.
IC 6-1.1-44
IS ADDED TO THE INDIANA CODE
AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2003]:
Chapter 44. Miscellaneous Tax Allocation
Sec. 1. As used in this chapter, "miscellaneous tax" means the
following:
(1) Financial institutions tax (IC 6-5.5-8-2).
(2) Motor vehicle excise tax (IC 6-6-5-10).
(3) Commercial vehicle excise tax (IC 6-6-5.5-20).
(4) Aircraft excise tax (IC 6-6-6.5-21).
(5) Auto rental excise tax (IC 6-6-9-11).
(6) Boat excise tax (IC 6-6-11-31).
Sec. 2. As used in this chapter, "tuition support levy" means
with respect to a school corporation for a year the maximum
general fund ad valorem property tax levy for the school
corporation determined under
IC 6-1.1-19-1.5
(as effective for the
year that a levy is made).
Sec. 3. The department of local government finance shall
compute a total levy miscellaneous tax allocation.
Sec. 4. The total levy miscellaneous tax allocation is equal to the
education allocation determined under section 5 of this chapter.
Sec. 5. For each miscellaneous tax, the education allocation for
a county is equal to the result determined under STEP SIX of the
following formula:
STEP ONE: For 2000, 2001, and 2002, determine the result
of:
(A) the part of the tuition support levy levied in the county
for each school corporation that is at least partially located
in the county; divided by
(B) the amounts appropriated by all the taxing units in the
county for the year.
STEP TWO: Determine the sum of the results determined
under STEP ONE.
STEP THREE: Divide the STEP TWO result by three (3).
STEP FOUR: Determine the amount of the miscellaneous tax
that would otherwise be distributed to all taxing units in the
county under the law establishing the miscellaneous tax
without regard to this section.
STEP FIVE: Determine the result of:
(A) the STEP FOUR amount; multiplied by
(B) the STEP THREE result.
STEP SIX: Determine the greater of:
(A) zero (0); or
(B) the STEP FIVE amount.
Sec. 6. The total levy miscellaneous tax allocation shall be used,
as provided in each law establishing a miscellaneous tax, to
determine the amount of tax proceeds to be distributed to the state
and to a county.
Sec. 7. The department of local government finance shall
annually certify the amount of:
(1) each county's total levy miscellaneous tax allocation; and
(2) the amount of the total levy miscellaneous tax allocation
applicable to each school corporation in the county;
to the county auditor at the same time estimates of miscellaneous
revenue for the ensuring year are provided to the counties.
SECTION 9.
IC 6-3.5-1.1-14
IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 14. (a) In
determining the amount of property tax replacement credits civil taxing
units and school corporations of a county are entitled to receive during
a calendar year, the state board of tax commissioners department of
local government finance shall consider only property taxes imposed
on tangible property that was assessed in that county.
(b) If a civil taxing unit or a school corporation is located in more
than one (1) county and receives property tax replacement credits from
one (1) or more of the counties, then the property tax replacement
credits received from each county shall be used only to reduce the
property tax rates that are imposed within the county that distributed
the property tax replacement credits.
(c) A civil taxing unit shall treat any property tax replacement
credits that it receives or is to receive during a particular calendar year
as a part of its property tax levy for that same calendar year for
purposes of fixing its budget and for purposes of the property tax levy
limits imposed by
IC 6-1.1-18.5.
days after receipt of vehicle registration forms by the county assessor,
and the assessor shall certify such information to the county auditor for
the auditor's use as soon as it is checked and completed.
SECTION 12.
IC 6-6-5.5-20
, AS ADDED BY P.L.181-1999,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2003]: Sec. 20. (a) On or before May 1, the auditor of
state shall distribute to each county auditor an amount equal to fifty
percent (50%) of the total base revenue to be distributed to all taxing
units in the county for that year.
(b) On or before December 1, the auditor of state shall distribute to
each county auditor an amount equal to the greater of the following:
(1) Fifty percent (50%) of the total base revenue to be distributed
to all taxing units in the county for that year.
(2) The product of the county's distribution percentage multiplied
by the total commercial vehicle excise tax revenue deposited in
the commercial vehicle excise tax fund.
(c) Upon receipt, the county auditor shall distribute to the taxing
units an amount equal to the product of the taxing unit's distribution
percentage multiplied by the total distributed to the county under this
section. The amount determined shall be apportioned and distributed
among the respective funds of each taxing unit in the same manner and
at the same time as property taxes are apportioned and distributed.
However, for purposes of determining distributions under this
section for 2003 and each year thereafter, a total levy
miscellaneous tax allocation as determined under
IC 6-1.1-44
shall
be deducted from the total amount available for apportionment
and distribution to taxing units under this section before any
apportionment and distribution is made. The county auditor shall
remit the total levy miscellaneous tax allocation to the treasurer of
state for deposit in a special account within the state general fund.
(d) In the event that sufficient funds are not available in the
commercial vehicle excise tax fund for the distributions required by
subsection (a) and subsection (b)(1), the auditor of state shall transfer
funds from the commercial vehicle excise tax reserve fund.
(e) The auditor of state shall, not later than July 1 of each year,
furnish to each county auditor an estimate of the amounts to be
distributed to the counties under this section during the next calendar
year. Before August 1, each county auditor shall furnish to the proper
officer of each taxing unit of the county an estimate of the amounts to
be distributed to the taxing units under this section during the next
calendar year and the budget of each taxing unit shall show the
estimated amounts to be received for each fund for which a property
tax is proposed to be levied.
SECTION 13.
IC 6-6-6.5-21
IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 21. (a) The
department shall allocate each aircraft excise tax payment collected by
it to the county in which the aircraft is usually located when not in
operation or to the aircraft owner's county of residence if based out of
state. The department shall distribute to each county treasurer on a
quarterly basis the aircraft excise taxes which were collected by the
department during the preceding three (3) months and which the
department has allocated to that county. The distribution shall be made
on or before the fifteenth of the month following each quarter and the
first distribution each year shall be made in April.
(b) Concurrently with making a distribution of aircraft excise taxes,
the department shall send an aircraft excise tax report to the county
treasurer and the county auditor. The department shall prepare the
report on the form prescribed by the state board of accounts. The
aircraft excise tax report must include aircraft identification, owner
information, and excise tax payment, and must indicate the county
where the aircraft is normally kept when not in operation. The
department shall, in the manner prescribed by the state board of
accounts, maintain records concerning the aircraft excise taxes
received and distributed by it.
(c) Except as provided in section 21.5 of this chapter, each county
treasurer shall deposit money received by him under this chapter in a
separate fund to be known as the "aircraft excise tax fund". The money
in the aircraft excise tax fund shall be distributed to the taxing units of
the county in the manner prescribed in subsection (d).
(d) In order to distribute the money in the county aircraft excise tax
fund to the taxing units of the county, the county auditor shall first
allocate the money in the fund among the taxing districts of the county.
In making these allocations, the county auditor shall allocate to a taxing
district the excise taxes collected with respect to aircraft usually
located in the taxing district when not in operation. The money
allocated to a taxing district shall be apportioned and distributed among
the taxing units of that taxing district in the same manner and at the
same time that the property taxes are apportioned and distributed.
However, for purposes of determining distributions under this
section for 2003 and each year thereafter, a total levy
miscellaneous tax allocation shall be deducted from the total
amount available for apportionment and distribution to taxing
units under this section before any apportionment and distribution
is made. The county auditor shall remit the total levy miscellaneous
tax allocation to the treasurer of state for deposit in a special
account within the state general fund.
(e) Within thirty (30) days following the receipt of excise taxes from
the department, the county treasurer shall file a report with the county
auditor concerning the aircraft excise taxes collected by the county
treasurer. The county treasurer shall file the report on the form
prescribed by the state board of accounts. The county treasurer shall,
in the manner and at the times prescribed in
IC 6-1.1-27
, make a
settlement with the county auditor for the aircraft excise taxes collected
by the county treasurer. The county treasurer shall, in the manner
prescribed by the state board of accounts, maintain records concerning
the aircraft excise taxes received and distributed by him.
SECTION 14.
IC 6-6-9-11
IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 11. (a) All
revenues collected from the auto rental excise tax shall be deposited in
a special account of the state general fund called the auto rental excise
tax account.
(b) On or before May 20 and November 20 of each year, all amounts
held in the auto rental excise tax account shall be distributed to the
county treasurers of Indiana.
(c) The amount to be distributed to a county treasurer equals that
part of the total auto rental excise taxes being distributed that were
initially imposed and collected from within that treasurer's county. The
department shall notify each county auditor of the amount of taxes to
be distributed to the county treasurer. At the same time each
distribution is made to a county treasurer, the department shall certify
to the county auditor each taxing district within the county where auto
rental excise taxes were collected and the amount of the county
distribution that was collected with respect to each taxing district.
(d) The county treasurer shall deposit auto rental excise tax
collections into a separate account for settlement at the same time as
property taxes are accounted for and settled in June and December of
each year.
(e) Except as provided in subsection (f), the county auditor shall
apportion and the county treasurer shall distribute the auto rental excise
taxes among the taxing units of the county in the same manner that
property taxes are apportioned and distributed with respect to property
located in the taxing district where the auto rental excise tax was
initially imposed and collected. The auto rental excise taxes distributed
to a taxing unit shall be allocated among the taxing unit's funds in the
same proportions that the taxing unit's property tax collections are
allocated among those funds.
a special assessment should be imposed under this chapter and whether
the special assessment will help the governing body realize the
redevelopment or economic development objectives for the allocation
area or honor its obligations related to the allocation area. The notice
must also name a date when the governing body will receive and hear
remonstrances and objections from persons affected by the special
assessment. All persons affected by the hearing, including all taxpayers
within the allocation area, shall be considered notified of the pendency
of the hearing and of subsequent acts, hearings, and orders of the
governing body by the notice. At the hearing, which may be adjourned
from time to time, the governing body shall hear all persons affected by
the proceedings and shall consider all written remonstrances and
objections that have been filed. The only grounds for remonstrance or
objection are that the special assessment will not help the governing
body realize the redevelopment or economic development objectives
for the allocation area or honor its obligations related to the allocation
area. After considering the evidence presented, the governing body
shall take final action concerning the proposed special assessment. The
final action taken by the governing body shall be recorded and is final
and conclusive, except that an appeal may be taken in the manner
prescribed by subsection (c).
(c) A person who filed a written remonstrance with a governing
body under subsection (b) and is aggrieved by the final action taken
may, within ten (10) days after that final action, file in the office of the
clerk of the circuit or superior court a copy of the order of the
governing body and the person's remonstrance or objection against that
final action, together with a bond conditioned to pay the costs of appeal
if the appeal is determined against the person. The only ground of
remonstrance or objection that the court may hear is whether the
proposed assessment will help achieve the redevelopment of economic
development objectives for the allocation area or honor its obligations
related to the allocation area. An appeal under this subsection shall be
promptly heard by the court without a jury. All remonstrances or
objections upon which an appeal has been taken must be consolidated,
heard, and determined within thirty (30) days after the time of the filing
of the appeal. The court shall hear evidence on the remonstrances or
objections, and may confirm the final action of the governing body or
sustain the remonstrances or objections. The judgment of the court is
final and conclusive, unless an appeal is taken as in other civil actions.
(d) The maximum amount of a special assessment under this section
may not exceed the replacement amount.
(e) A special assessment shall be imposed and collected in the same
manner as ad valorem property taxes are imposed and collected.
SECTION 19.
IC 20-1-1.3-8
IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 8. (a) A public
school that receives a monetary award under this chapter may expend
that award for any educational purpose for that school, except:
(1) athletics;
(2) salaries for school personnel; or
(3) salary bonuses for school personnel.
(b) A monetary award may not be used to determine
(1) the maximum permissible general fund ad valorem property
tax levy under IC 6-1.1-19-1.5; or
(2) the tuition support under IC 21-3-1.6
IC 21-3-1.7
of the school corporation of which the school receiving the monetary
award is a part.
SECTION 20.
IC 20-1-6-1
IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 1. As used in this
chapter, the following terms have the following meanings:
(1) "Child with a disability" means any child who is at least three
(3) years of age but less than twenty-two (22) years of age and
who because of physical or mental disability is incapable of being
educated properly and efficiently through normal classroom
instruction, but who with the advantage of a special educational
program may be expected to benefit from instruction in
surroundings designed to further the educational, social, or
economic status of the child. Public schools may operate special
education programs for hearing impaired children as young as six
(6) months of age on an experimental basis upon the approval of
the superintendent of public instruction and the Indiana state
board of education.
(2) "Division" means the division of special education within the
department of education.
(3) "Director" means the director of the division of special
education.
(4) "School corporation" means any school corporation (as
defined in
IC 20-5-1-3
) authorized by law to establish public
schools and levy taxes for the maintenance of the schools. or
school township (IC 20-2-8-1).
(5) "Individualized education program" means a written statement
developed by a group that includes:
(A) a representative of the school corporation or public agency
responsible for educating the child;
(B) the child's teacher;
provided by law, and the county school corporation, also referred to in
this chapter as the county, shall include all areas not organized on
March 13, 1947, under the laws of this state into jurisdictions
controlled and governed as school cities or school towns. Said county
board of education may be referred to interchangeably as the county
board of school trustees and as the board. Said board shall meet at such
time as the board shall designate at the office of the county
superintendent of schools and at such other times and places as the
county superintendent of schools may deem necessary. At the first
meeting of each year, to be held on the first Wednesday after the first
Monday in January, the board shall organize by selecting a president,
a vice president, a secretary, and a treasurer from its membership.
Provided, however, that no later than April 12, 1947, it shall be the
duty of the county superintendent of schools to call said board into
special session and unless the county board of education shall elect to
have the provisions of this section remain inoperative, under provisions
that may be included within this section, said board shall so organize
itself, except that the failure of the county superintendent of schools to
call the county board of education into session within the prescribed
limits of this section shall not be construed to mean that a county
school corporation as described in this section shall be brought into
existence in such county, and no such county school corporation shall
be brought into existence until the board has met in special session
subsequent to March 13, 1947, and has taken action to organize itself
into a county school corporation, after consideration of the question
whether it should elect to have the provisions of this section remain
inoperative under provisions that may be included within this section.
Such organization when and if effected shall be filed with the county
auditor and shall be published by said auditor in two (2) newspapers of
different political persuasions of general circulation throughout the
county within ten (10) days after such filing, and such organization
shall be deemed to fulfill all the requirements of this section for the
transacting of public business under this section. The secretary of the
board shall keep an accurate record of the minutes of the board, which
minutes shall be kept at the county superintendent's office. The county
superintendent shall act as administrator of the board and shall carry
out such acts and duties as shall be designated by the board. A quorum
shall consist of two-thirds (2/3) of the members of the board.
(b) The board shall make decisions as to the general conduct of the
schools, which shall be enforced as entered upon the minutes recorded
by the secretary of the board, and shall exercise all powers exercised
before March 13, 1947, under the law, by or through township trustees
or meetings or petitions of the trustees of the county.
(c) The board shall appoint a county superintendent of schools who
shall serve for a term of four (4) years. The first such appointment
under this section shall be made in accordance with law in June 1949,
to become effective August 16, 1949, and thereafter the board shall fill
vacancies in this office by appointments which shall expire at the end
of the regular term. The county superintendent of schools and other
persons employed for administrative or supervisory duties shall be
deemed to be supervisors of instruction.
(d) Except as otherwise provided by law, the government of the
common schools of the county shall be vested in the board, and the
board shall function with all the authority, powers, privileges, duties,
and obligations granted to or required of school cities before March 13,
1947, and school towns and their governing boards generally under the
laws pertaining thereto with reference to the purchase of supplies,
purchase and sale of buildings, grounds, and equipment, the erection
of buildings, the employment and dismissal of school personnel, the
right and power to sue and be sued in the name of the county, the
insuring of property and employees, the levying and collecting of taxes,
the making and executing of a budget, the borrowing of money, the
paying of the salaries and expenses of the county superintendent and
employees as approved by the board and to any act necessary to the
proper administration of the common schools of the county.
(e) Such school corporations shall be vested with all right, title, and
interest of their respective predecessor township school corporations
hereby terminated to and in all the real, personal, and other property of
any nature and from whatever source derived, and shall assume, pay,
and be liable for all the indebtedness and liabilities of the same.
(f) The treasurer, before entering upon the duties of his office, shall
execute a bond to the acceptance of the county auditor in an amount
equal to the largest sum of money that will be in the possession of the
treasurer at any one time conditioned as an ordinary official bond, with
a reliable surety company or at least two (2) sufficient freehold sureties,
who shall not be members of such board, as surety or sureties on such
bond. The president and secretary shall each give bond, with like surety
or sureties, to be approved by the county auditor, in the sum of
one-fourth (1/4) of said amount. Provided, that such boards of school
trustees may purchase said bonds from some reliable surety company,
and pay for them out of the special school revenue of their respective
counties.
(g) The powers set forth in this section shall not be considered as or
construed to limit the power and authority of such boards to the powers
therein expressly conferred or to restrict or modify any powers or
authority granted by any other law not in conflict with the provisions
of this section.
(h) Every such board shall have, as respects the levy of taxes by it,
power annually to levy such amount of taxes as in the judgment of such
board, made matter of record in its minutes, should be levied to
produce income sufficient to conduct and carry on the common schools
committed to such board, and It is hereby made the duty of such board
annually to levy a sum sufficient to meet all payments of principal and
interest as they will mature in the year for which such levy is made on
the bonds, notes, or other obligations of such board. The power of such
board in so making tax levies shall be exercised within statutory limits
and said levies shall be subject to the same review as school city and
school town levies.
SECTION 23.
IC 20-2-9-2
IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 2. Said school
trustees shall maintain in each school corporation a term of school at
least six (6) months in duration. and shall authorize a local tuition levy
sufficient to conduct a six (6) months term of school each year based
on estimates and receipts from all sources for the previous year, which
may include that received from the state's tuition revenue: Provided,
Such levy shall not exceed the limit now provided by law.
SECTION 24.
IC 20-3-11-18
IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 18. Every such
board of school commissioners shall have, as respects the levy of taxes
by it, power annually to levy such amount of taxes as in the judgment
of said board, made matter of record in its minutes, should be levied to
produce income sufficient to conduct and carry on the work committed
to such board, and It is hereby made the duty of said board annually to
levy a sum sufficient to meet all payments of principal and interest as
they will mature in the year for which such levy is made on the bonds,
notes or other obligations of said board. and the fund arising from any
levy made by such board shall be known as its "general fund." Said
general fund may lawfully be used by said board for any purpose within
the scope of the duties of such board as imposed by law.
SECTION 25.
IC 20-3.1-15-1
, AS AMENDED BY P.L.100-2001,
SECTION 20, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2003]: Sec. 1. To provide the board with the necessary
flexibility and resources to carry out this article, the following apply:
(1) The board may eliminate or modify existing policies, and
create new policies, and alter policies from time to time, subject
to this article and the plan developed under
IC 20-3.1-7.
equal rate in the entire county in which any school corporation is
located, other than a tax qualifying as a county-wide tax within
the meaning of Acts 1959, c.328, s.2, or any similar statute, and
the net proceeds of which are distributed to school corporations
in the county.
(2) "Assessed valuation" of any school corporation shall mean the
net assessed value of its real and personal property as of March 1,
1964, adjusted in the same manner as such assessed valuation is
adjusted for each county by the state board of tax commissioners
department of local government finance under Acts 1949,
c.247, s.5, as now or hereafter amended, unless such statute has
been repealed or no longer provides for such adjustment. In the
event a county has a county tax, then the assessed valuation of
each school corporation in the county shall be increased by the
amount of assessed valuation, if any, which would be required to
raise an amount of money, equal to the excess of the amount
distributed to any school corporation from the county tax over the
amount collected from such county tax in such school
corporation, using total taxes levied by such school corporation in
terms of rate excluding the countywide tax under Acts 1959,
c.328, s.2, or any similar statute, and including all other taxes
levied by or for such school corporation. including but not limited
to the county tax, bond fund levy, lease rental levy, library fund
levy, special school fund levy, tuition fund levy, capital projects
fund levy, and special funds levies. Such increased valuation shall
be based on the excess distributed to the school corporation from
the county tax levied for the year 1964 and the total taxes levied
for such year, or if the county tax is first applied or is raised for
years after 1964, then the excess distributions and total taxes
levied for the year in which such tax is first applied or raised. In
the event such excess distribution and total taxes levied cannot be
determined accurately on or prior to the adoption of the resolution
provided in this section, excess distribution and taxes levied shall
be estimated by the state board of tax commissioners department
of local government finance using the last preceding assessed
valuations and tax rates or such other information as they shall see
fit, certifying such increased assessment to the state board prior
to such time. In all cases, the excess distribution shall be
determined upon the assumption that the county tax is one
hundred percent (100%) collected and all collections are
distributed.
(3) "Assessed valuation per pupil" of any school corporation
means the assessed valuation of any such school corporation
divided by its average daily attendance in grades one (1) through
twelve (12).
(4) "Average daily attendance" in any school corporation shall
mean the average daily attendance of pupils who are residents in
such school corporation and in the particular grades to which such
term refers for the school year 1964-1965 in accordance with the
applicable regulations of the state superintendent of public
instruction, used in determining such average daily attendance in
the distribution of the tuition funds by the state to its various
school corporations where such funds are distributed on such
basis and irrespective of whether such figures are the actual
resident daily attendance of such school for the school year.
(b) Such community school corporation shall automatically come
into being on either July 1 or January 1 following the date of such
approval, whichever is earlier. The state board shall mail by certified
United States mail, return receipt requested, a copy of such resolution
certified by its director or its secretary to the recorder of the county
from which the county committee having jurisdiction of such existing
school corporation was appointed and to such county committee. Such
resolution may change the time of election or appointment of the board
members of such school corporation or the time such board members
take office. The recorder shall without cost record such certified
resolution in the miscellaneous records of the county. Such recording
shall constitute a permanent record of the action of the state board and
may be relied on by any person. Unless the resolution otherwise
provides no interim board member shall be appointed, the board
members in office on the date of such action shall continue to
constitute the board of trustees of such school corporation until their
successors are qualified, and the terms of their respective office and
board membership shall remain unchanged except to the extent that
such resolution otherwise provides. For all purposes under this chapter,
community school corporation shall be regarded as a school
corporation created under the provisions of section 22 of this chapter.
SECTION 27.
IC 20-4-1-26.9
IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 26.9. (a) This
section applies to each school corporation, whenever created.
(b) Each board of school trustees created under this chapter may
annually levy the amount of taxes that, in the judgment of the board,
made a matter of record in its minutes, should be levied to produce
income sufficient to conduct and carry on the public schools committed
to the board. The board shall annually levy a rate that will produce a
sum sufficient to meet all payments of principal and interest as they
mature in the year for which the levy is made on the bonds, notes, or
other obligations of the community school corporation.
(c) The power of the board in making tax levies shall be exercised
within existing statutory limits. The levies are subject to the same
review as school city levies and shall be at a uniform and equal rate on
all taxable property located within the boundaries of the community
school corporation.
SECTION 28.
IC 20-4-8-11
IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 11. (a) The board
as above referred to shall make decisions pertaining to the general
conduct of the schools which shall be enforced as entered upon the
minutes recorded by the secretary of the board and, subject to
provisions in this chapter except as otherwise provided by law, shall
exercise all powers previously exercised under the law, by or through
township trustees or meetings or petitions of the township trustees of
the county, or county boards of education previously existing and such
offices, namely, township trustee, county board or county boards of
education insofar as the conduct of public schools is concerned are
abolished as of noon on the day and date the county school corporation
is created and comes into existence under this chapter.
(b) The county superintendent of schools and other persons
employed for administrative or supervisory duties may be deemed to
be supervisors of instruction.
(c) The government of the common schools of the county shall be
vested in the board, and the board shall function with all the authority,
powers, privileges, duties, and obligations previously granted to or
required of school cities and their governing boards generally under the
laws pertaining thereto with reference to the purchase of supplies,
purchase and sale of buildings, grounds, and equipment, the erection
of buildings, the employment and dismissal of school personnel, the
insuring of property and employees, the levying and collecting of taxes,
the making and executing of a budget, the borrowing of money, the
paying of the salaries and expenses of the county superintendent and
employees as approved by the board, shall be a body corporate and
politic by the name and style of "The County School Corporation of
_______ County, Indiana" with the right to prosecute and defend suits;
and shall act in any manner necessary to the proper administration of
the common schools of the county.
(d) School corporations shall be vested with all rights, titles, and
interests of their respective predecessor township and town school
corporations terminated; and in all the real, personal, and other
property of any nature and from whatever source derived, and shall
assume, pay, and be liable for all the indebtedness, obligations, and
liabilities and duties of the predecessor corporations from whatever
source derived and however arising, and shall institute and defend suits
arising out of aforesaid liabilities, obligations, duties, and rights
assumed as a county school corporation.
(e) The treasurer, before entering upon the duties of his office, shall
execute a bond to the acceptance of the county auditor in an amount
equal to the largest sum of money that will be in the possession of the
treasurer at any one time, conditioned as an ordinary official bond, with
a reliable surety company or at least two (2) sufficient freehold sureties,
who shall not be members of such board, as surety or sureties on such
bond. The president and the secretary shall each give bond, with like
surety or sureties, to be approved by the county auditor, in the sum of
one-fourth (1/4) of said amount. Boards of school trustees may
purchase bonds from some reliable surety company and pay for them
out of the special school revenue of their respective counties.
(f) The powers set forth in this section shall not be considered as or
construed to limit the power and authority of such boards to the powers
therein expressly conferred or to restrict or modify any powers or
authority granted by any other law not in conflict with the provisions
of this section.
(g) Every such board shall have the power annually to levy such
amount of taxes as in the judgment of such board, made matter of
record in its minutes, should be levied to produce income sufficient to
conduct and carry on the common schools committed to such board,
and It is made the duty of such board annually to levy a rate and levy
that will produce a sum sufficient to meet all payments of principal and
interest as they will mature in the year for which such levy is made on
the bonds, notes, or other obligations of such board. The power of such
board in so making tax levies shall be exercised within existing
statutory limits and said levies shall be subject to the same review as
school city levies.
SECTION 29.
IC 20-4-8-21
IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 21. (a) The board
as referred to in this chapter shall make decisions pertaining to the
general conduct of the schools which shall be enforced as entered upon
the minutes recorded by the secretary of the board, and, subject to this
chapter, except as otherwise provided by law, shall exercise all
powers previously exercised under the law, by or through township
trustees or meetings or petitions of the township trustees of the county,
and/or county boards of education previously existing, and such offices,
namely township trustee, county board and/or county boards of
education insofar as the conduct of public schools is concerned are
hereby abolished as of noon on the day and date the metropolitan
school district is created and comes into existence.
(b) The metropolitan superintendent of schools and other persons
employed for administrative or supervisory duties may be deemed to
be supervisors of instruction and as such eligible, subject to the rules
that have been or shall be adopted by the state board of education, to
qualify for teaching units in accordance with law.
(c) The government of the common schools of said district shall be
vested in the board, and the board shall function with all the authority,
powers, privileges, duties, and obligations previously granted to or
required of school cities and their governing boards generally under the
laws pertaining thereto with reference to the purchase of supplies,
purchase and sale of buildings, grounds, and equipment, the erection
of buildings, the employment and dismissal of school personnel, the
insuring of property and employees, the levying and collecting of taxes,
the making and executing of a budget, the borrowing of money, the
paying of the salaries and expenses of the county superintendent and
employees as approved by the board; shall be a body corporate and
politic by the name and style of "The Metropolitan School District of
________, Indiana" with the right to prosecute and defend suits and
shall act in any manner necessary to the proper administration of the
common schools of the county.
(d) Such school districts shall be vested with all rights, titles, and
interests of their respective predecessor township and town school
corporations hereby terminated and in all the real, personal, and other
property of any nature and from whatever source derived, and shall
assume, pay, and be liable for all the indebtedness, obligations, and
liabilities and duties of said predecessor corporations from whatever
source derived and however arising and shall institute and defend suits
arising out of aforesaid liabilities, obligations, duties, and rights
assumed as a metropolitan school district.
(e) The treasurer, before entering upon the duties of his office, shall
execute a bond to the acceptance of the county auditor which shall in
no event be greater than the largest sum of money that will be in the
possession of the treasurer at any one time. The board of education may
purchase said bond from a reliable surety company and pay for it out
of the special school revenue of the metropolitan district.
(f) The powers set forth in this section shall not be considered as or
construed to limit the power and authority of such boards to the powers
therein expressly conferred or to restrict or modify any powers or
authority granted by any other law not in conflict with the provisions
of this section.
(g) Every such board shall have the power annually to levy such
amount of taxes as in the judgment of such board, made matter of
record in its minutes, should be levied to produce income sufficient to
conduct and carry on the common schools committed to such board,
and It is hereby made the duty of such board annually to levy a rate and
levy that will produce a sum sufficient to meet all payments of
principal and interest as they will mature in the year for which such
levy is made on the bonds, notes, or other obligations of such board.
The power of such board in so making tax levies shall be exercised
within statutory limits and said levies shall be subject to the same
review as school city levies.
SECTION 30.
IC 20-4-16-1
IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 1. As used in this
chapter, the following terms shall have the following meanings:
(a) "City" or "town" shall be a city or town which conducts its
school as school city or school town or as part of a consolidated or
metropolitan school corporation.
(b) "Annexing school corporation" shall be the school corporation
of any city or town which annexes territory.
(c) "Original school corporation" shall be a school corporation from
whom territory is annexed.
(d) "Annexed territory" shall be the territory annexed from an
original school corporation by such city or town.
(e) "Tax receipts" shall be the amounts received from the tax levy
for the tuition and special school funds by the original school
corporation from the annexed territory.
SECTION 31.
IC 20-5-1.5-7
IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 7. A school
corporation does not have any of the following powers:
(1) Those powers expressly prohibited of a unit under
IC 36-1-3-8.
(2) The power for eminent domain, unless specifically authorized
by statute.
(3) The power to prescribe a civil penalty or a fine.
(4) The power to adopt ordinances.
(5) The power to require the attendance of witnesses and the
production of documents relative to matters being considered,
unless specifically authorized by statute.
(6) The power to exercise powers outside of the boundaries of the
school corporation, unless authorized by statute through joint
agreements or otherwise.
(7) The power to impose a tax, except as expressly granted by
statute.
SECTION 32.
IC 20-5-2-2
, AS AMENDED BY P.L.286-2001,
SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2003]: Sec. 2. In carrying out the school purposes of
each school corporation, its governing body acting on its behalf shall
have the following specific powers:
(1) In the name of the school corporation, to sue and be sued and
to enter into contracts in matters permitted by applicable law.
(2) To take charge of, manage, and conduct the educational affairs
of the school corporation and to establish, locate, and provide the
necessary schools, school libraries, other libraries where
permitted by law, other buildings, facilities, property, and
equipment therefor.
(2.5) To appropriate from the general fund an amount, not to
exceed the greater of three thousand dollars ($3,000) per budget
year or one dollar ($1) per pupil, not to exceed twelve thousand
five hundred dollars ($12,500), based upon the school
corporation's previous year's average daily membership (as
defined in
IC 21-3-1.6-1.1
) for the purpose of promoting the best
interests of the school corporation by:
(A) the purchase of meals, decorations, memorabilia, or
awards;
(B) provision for expenses incurred in interviewing job
applicants; or
(C) developing relations with other governmental units.
(3) To acquire, construct, erect, maintain, hold, and to contract for
such construction, erection, or maintenance of such real estate,
real estate improvements, or any interest in either, as the
governing body deems necessary for school purposes, including
but not limited to buildings, parts of buildings, additions to
buildings, rooms, gymnasiums, auditoriums, playgrounds, playing
and athletic fields, facilities for physical training, buildings for
administrative, office, warehouse, repair activities, or housing of
school owned buses, landscaping, walks, drives, parking areas,
roadways, easements and facilities for power, sewer, water,
roadway, access, storm and surface water, drinking water, gas,
electricity, other utilities and similar purposes, by purchase, either
outright for cash (or under conditional sales or purchases money
contracts providing for a retention of a security interest by seller
until payment is made or by notes where such contract, security
retention, or note is permitted by applicable law), by exchange, by
gift, by devise, by eminent domain, by lease with or without
option to purchase, or by lease under
IC 21-5-10
,
IC 21-5-11
, or
IC 21-5-12.
To repair, remodel, remove, or demolish any such real
estate, real estate improvements, or interest in either, as the
governing body deems necessary for school purposes, and to
contract therefor. To provide for energy conservation measures
through utility energy efficiency programs or under a guaranteed
energy savings contract as described in
IC 36-1-12.5.
(4) To acquire such personal property or any interest therein as
the governing body deems necessary for school purposes,
including but not limited to buses, motor vehicles, equipment,
apparatus, appliances, books, furniture, and supplies, either by
outright purchase for cash, or under conditional sales or purchase
money contracts providing for a security interest by the seller
until payment is made or by notes where such contract, security,
retention, or note is permitted by applicable law, by gift, by
devise, by loan, or by lease with or without option to purchase and
to repair, remodel, remove, relocate, and demolish such personal
property. All purchases and contracts delineated under the powers
given under subdivision (3) and this subdivision shall be subject
solely to applicable law relating to purchases and contracting by
municipal corporations in general and to the supervisory control
of agencies of the state as provided in section 3 of this chapter.
(5) To sell or exchange any of such real or personal property or
interest therein, which in the opinion of the governing body is not
necessary for school purposes, in accordance with
IC 20-5-5
, to
demolish or otherwise dispose of such property if, in the opinion
of the governing body, it is not necessary for school purposes and
is worthless, and to pay the expenses for such demolition or
disposition.
(6) To lease any school property for a rental which the governing
body deems reasonable or to permit the free use of school
property for:
(A) civic or public purposes; or
(B) the operation of a school age child care program for
children aged five (5) through fourteen (14) years that operates
before or after the school day, or both, and during periods
when school is not in session;
if the property is not needed for school purposes. Under this
subdivision, the governing body may enter into a long term lease
with a nonprofit corporation, community service organization, or
other governmental entity, if the corporation, organization, or
other governmental entity will use the property to be leased for
civic or public purposes or for a school age child care program.
However, if the property subject to a long term lease is being paid
for from money in the school corporation's debt service fund, then
all proceeds from the long term lease shall be deposited in that
school corporation's debt service fund so long as the property has
not been paid for. The governing body may, at its option, use the
procedure specified in
IC 36-1-11-10
in leasing property under
this subdivision.
(7) To employ, contract for, and discharge superintendents,
supervisors, principals, teachers, librarians, athletic coaches
(whether or not they are otherwise employed by the school
corporation and whether or not they are licensed under
IC 20-6.1-3
), business managers, superintendents of buildings and
grounds, janitors, engineers, architects, physicians, dentists,
nurses, accountants, teacher aides performing noninstructional
duties, educational and other professional consultants, data
processing and computer service for school purposes, including
but not limited to the making of schedules, the keeping and
analyzing of grades and other student data, the keeping and
preparing of warrants, payroll, and similar data where approved
by the state board of accounts as provided below, and such other
personnel or services, all as the governing body considers
necessary for school purposes. To fix and pay the salaries and
compensation of such persons and such services. To classify such
persons or services and to adopt schedules of salaries or
compensation. To determine the number of such persons or the
amount of services thus employed or contracted for. To determine
the nature and extent of their duties. The compensation, terms of
employment, and discharge of teachers shall, however, be subject
to and governed by the laws relating to employment, contracting,
compensation, and discharge of teachers. The compensation,
terms of employment, and discharge of bus drivers shall be
subject to and shall be governed by any laws relating to
employment, contracting, compensation, and discharge of bus
drivers. The forms and procedures relating to the use of computer
and data processing equipment in handling the financial affairs of
such school corporation shall be submitted to the state board of
accounts for approval to the end that such services shall be used
by the school corporation when the governing body determines
that it is in the best interests of the school corporation while at the
same time providing reasonable accountability for the funds
expended.
(8) Notwithstanding the appropriation limitation in subdivision
(2.5), when the governing body by resolution deems a trip by an
employee of the school corporation or by a member of the
governing body to be in the interest of the school corporation,
including but not limited to attending meetings, conferences, or
examining equipment, buildings, and installation in other areas,
to permit such employee to be absent in connection with such trip
without any loss in pay and to refund to such employee or to such
member his reasonable hotel and board bills and necessary
transportation expenses. To pay teaching personnel for time spent
in sponsoring and working with school related trips or activities.
(9) To transport children to and from school, when in the opinion
of the governing body such transportation is necessary, including
but not limited to considerations for the safety of such children
and without regard to the distance they live from the school, such
transportation to be otherwise in accordance with the laws
applicable thereto.
(10) To provide a lunch program for a part or all of the students
attending the schools of the school corporation, including but not
limited to the establishment of kitchens, kitchen facilities, kitchen
equipment, lunch rooms, the hiring of the necessary personnel to
operate such program, and the purchase of any material and
supplies therefor, charging students for the operational costs of
such lunch program, fixing the price per meal or per food item. To
operate such lunch program as an extracurricular activity, subject
to the supervision of the governing body. To participate in any
surplus commodity or lunch aid program.
(11) To purchase textbooks, to furnish them without cost or to
rent them to students, to participate in any textbook aid program,
all in accordance with applicable law.
(12) To accept students transferred from other school corporations
and to transfer students to other school corporations in accordance
with applicable law.
(13) To levy the taxes authorized by statute, to make budgets,
to appropriate funds, and to disburse the money of the school
corporation in accordance with the laws applicable thereto. To
borrow money against current tax collections and otherwise to
borrow money, in accordance with
IC 20-5-4.
(14) To purchase insurance or to establish and maintain a
program of self-insurance relating to the liability of the school
corporation or its employees in connection with motor vehicles or
property and for any additional coverage to the extent permitted
and in accordance with
IC 34-13-3-20.
To purchase additional
insurance or to establish and maintain a program of self-insurance
protecting the school corporation and members of the governing
body, employees, contractors, or agents of the school corporation
from any liability, risk, accident, or loss related to any school
property, school contract, school or school related activity,
including but not limited to the purchase of insurance or the
establishment and maintenance of a self-insurance program
protecting such persons against false imprisonment, false arrest,
libel, or slander for acts committed in the course of their
employment, protecting the school corporation for fire and
extended coverage and other casualty risks to the extent of
replacement cost, loss of use, and other insurable risks relating to
any property owned, leased, or held by the school corporation. To:
(A) participate in a state employee health plan under
IC 5-10-8-6.6
;
(B) purchase insurance; or
(C) establish and maintain a program of self-insurance;
to benefit school corporation employees, which may include
accident, sickness, health, or dental coverage, provided that any
plan of self-insurance shall include an aggregate stop-loss
provision.
(15) To make all applications, to enter into all contracts, and to
sign all documents necessary for the receipt of aid, money, or
property from the state government, the federal government, or
from any other source.
(16) To defend any member of the governing body or any
employee of the school corporation in any suit arising out of the
performance of his duties for or employment with, the school
corporation, provided the governing body by resolution
determined that such action was taken in good faith. To save any
such member or employee harmless from any liability, cost, or
damage in connection therewith, including but not limited to the
payment of any legal fees, except where such liability, cost, or
damage is predicated on or arises out of the bad faith of such
member or employee, or is a claim or judgment based on his
malfeasance in office or employment.
(17) To prepare, make, enforce, amend, or repeal rules,
regulations, and procedures for the government and management
of the schools, property, facilities, and activities of the school
corporation, its agents, employees, and pupils and for the
operation of its governing body, which rules, regulations, and
procedures may be designated by any appropriate title such as
"policy handbook", "bylaws", or "rules and regulations".
(18) To ratify and approve any action taken by any member of the
governing body, any officer of the governing body, or by any
employee of the school corporation after such action is taken, if
such action could have been approved in advance, and in
connection therewith to pay any expense or compensation
permitted under
IC 20-5-1
through
IC 20-5-6
or any other law.
(19) To exercise any other power and make any expenditure in
carrying out its general powers and purposes provided in this
chapter or in carrying out the powers delineated in this section
which is reasonable from a business or educational standpoint in
carrying out school purposes of the school corporation, including
but not limited to the acquisition of property or the employment
or contracting for services, even though such power or
expenditure shall not be specifically set out herein. The specific
powers set out in this section shall not be construed to limit the
general grant of powers provided in this chapter except where a
limitation is set out in
IC 20-5-1
through
IC 20-5-6
by specific
language or by reference to other law.
SECTION 33.
IC 20-5-4-6
IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 6. If the
governing board shall find, by written resolution, that an emergency
exists which requires the expenditure of any money for any lawful
corporate purpose payable from the capital projects fund, the
transportation fund, the school bus replacement fund, or the
special education preschool fund, which was not included in its
existing budget and tax levy, it may authorize the making of an
emergency loan which may be evidenced by the issuance of its note or
notes in the same manner and subject to the same procedure and
restrictions as provided for the issuance of its bonds, except as to
purpose. At the time for making the next annual budget and tax levy for
such school corporation, the governing body shall, subject to the levy
limitations imposed by statute, make a levy to the credit of the fund
for which such expenditure is made sufficient to pay such debt and the
interest thereon; however, the interest on the loan may be paid from the
debt service fund.
SECTION 34.
IC 20-5-4-10
IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 10. (1) Prior to
the end of each calendar year the state board department of tax
commissioners local government finance shall review the bond and
lease rental levies, or any levies which replace such levies, debt
service fund levies of each school corporation, payable in the next
succeeding year, and the appropriations from such levies from which
the school corporation is to pay the amount, if any, of principal and
interest on its general obligation bonds and of its lease rentals under
IC 21-5-11
through
IC 21-5-12
, during such succeeding year (such
amounts being referred to in this section as its "debt service
obligations"). In the event such levies and appropriations of the school
corporation are not sufficient to pay the debt service obligations, the
state board department shall establish for each school corporation
bond and lease, rental levies, or any levies which replace such levies
and appropriations which debt service fund levies that are sufficient
to pay such debt service obligations.
(2) Upon the failure of any school corporation to pay any of its debt
service obligations during any calendar year when due, the treasurer of
state upon being notified of such failure by any claimant shall make
such payment from the funds of the state to the extent, but not in
excess, of any amounts appropriated by the general assembly for the
calendar year for distribution to such school corporation from state
funds, deducting such payment from such amounts thus appropriated.
Such deducting being made, first from property tax relief funds to the
extent thereof, second from all other funds except tuition support and
third from tuition support.
(3) This section shall be interpreted liberally so that the state of
Indiana shall to the extent legally valid ensure that the debt service
obligations of each school corporation shall be paid, but nothing
contained in this section shall be construed to create a debt of the state
of Indiana.
SECTION 35.
IC 20-5-62-6
, AS AMENDED BY P.L.77-1999,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2003]: Sec. 6. Except as provided in this chapter and
notwithstanding any other law, a freeway school corporation or a
freeway school may do the following during the contract period:
(1) Disregard the observance of any statute or rule that is listed in
the contract.
(2) Lease school transportation equipment to others for nonschool
use when the equipment is not in use for a school corporation
purpose, if the lessee has not received a bid from a private entity
to provide transportation equipment or services for the same
purpose.
(3) Replace the budget and accounting system that is required by
law with a budget or accounting system that is frequently used in
the private business community. The state board of accounts may
not go beyond the requirements imposed upon the state board of
accounts by statute in reviewing the budget and accounting
system used by a freeway school corporation or a freeway school.
(4) Establish a professional development and technology fund to
be used for:
(A) professional development; or
(B) technology, including video distance learning.
However, any money deposited in the professional development
and technology fund for technology purposes must be transferred
to the school technology fund established under
IC 21-2-18.
(5) Subject to subdivision (4), transfer funds obtained from
sources other than state or local government taxation among any
accounts of the school corporation, including a professional
development and technology fund established under subdivision
(4).
(6) Transfer funds obtained from property taxation and from state
distributions among the general fund (established under
IC 21-2-11
) and the school transportation fund (established under
IC 21-2-11.5
). subject to the following:
(A) The sum of the property tax rates for the general fund and
the school transportation fund after a transfer occurs under this
subdivision may not exceed the sum of the property tax rates
for the general fund and the school transportation fund before
a transfer occurs under this subdivision.
(B) This subdivision does not allow a school corporation to
transfer to any other fund money from the:
(i) (A) capital projects fund (established under
IC 21-2-15
); or
(ii) (B) debt service fund (established under
IC 21-2-4
).
(7) Establish a locally adopted assessment program to replace the
assessment of students under the ISTEP program established
under
IC 20-10.1-16-8
, subject to the following:
(A) A locally adopted assessment program must be established
by the governing body and approved by the department.
(B) A locally adopted assessment program may use a locally
developed test or a nationally developed test.
(C) Results of assessments under a locally adopted assessment
program are subject to the same reporting requirements as
results under the ISTEP program.
(D) Each student who completes a locally adopted assessment
program and the student's parent or guardian has the same
rights to inspection and rescoring as are set forth in
IC 20-10.1-16-7
(d).
SECTION 36.
IC 20-5.5-7-3
, AS ADDED BY P.L.100-2001,
SECTION 21, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2003]: Sec. 3. (a) Not later than the date established by
the department for determining average daily membership under
IC 21-3-1.6-1.1
(d), the organizer shall submit to the department the
following information:
(1) The number of students enrolled in the charter school.
(2) The name of each student and the school corporation in which
the student resides.
(b) After verifying the accuracy of the information reported under
subsection (a), the department shall distribute the following to the
organizer:
(1) Tuition support and other state funding for any purpose for
students in the charter school.
(2) A proportionate share of state and federal funds received for
students with disabilities or staff services for students with
disabilities for the students with disabilities enrolled in the charter
school.
(3) A proportionate share of funds received under federal or state
categorical aid programs for students who are eligible for the
federal or state aid enrolled in the charter school.
(c) Not later than the date established by the department for
determining average daily membership under IC 21-3-1.6-1.1(d), the
organizer shall submit to each governing body a report of the total
number and names of students from the governing body's school
corporation enrolled in the charter school. Upon verifying the accuracy
of the information reported, the governing body shall distribute to the
organizer a proportionate share of local support for the students
enrolled in the charter school in an amount determined under STEP
THREE of the following formula:
STEP ONE: Add the revenues obtained by the school
corporation's:
(A) general fund property tax levy; and
(B) general fund auto excise and financial institutions tax.
STEP TWO: Divide the sum determined under STEP ONE by the
total number of students enrolled in the school corporation.
STEP THREE: Multiply the quotient determined under STEP
TWO by the number of students enrolled in the charter school.
(d) (c) The distribution under subsection (b) shall be made on the
same schedule as the schedule on which the school corporation
receives the funds.
SECTION 37.
IC 20-8.1-6.1-8
IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 8. (a) As used in
this section, the following terms have the following meanings:
(1) "Class of school" refers to a classification of each school or
program in the transferee corporation by the grades or special
programs taught at the school. Generally, these classifications are
denominated as kindergarten, elementary school, middle school
or junior high school, high school, and special schools or classes,
such as schools or classes for special education, vocational
training, or career education.
(2) "ADM" means the following:
(A) For purposes of allocating to a transfer student state
distributions under
IC 21-1-30
(primetime), "ADM" as
computed under
IC 21-1-30-2.
(B) For all other purposes, "ADM" as set forth in
IC 21-3-1.6-1.1.
(3) "Pupil enrollment" means the following:
(A) The total number of students in kindergarten through
grade 12 who are enrolled in a transferee school corporation
on a date determined by the Indiana state board of education.
(B) The total number of students enrolled in a class of school
in a transferee school corporation on a date determined by the
Indiana state board of education.
However, a kindergarten student shall be counted under clauses
(A) and (B) as one-half (1/2) a student.
(4) "Special equipment" means equipment that during a school
year:
(A) is used only when a child with disabilities is attending
school;
(B) is not used to transport a child to or from a place where the
child is attending school;
(C) is necessary for the education of each child with
disabilities that uses the equipment, as determined under the
individualized instruction program for the child; and
(D) is not used for or by any child who is not a child with
disabilities.
The Indiana state board of education may select a different date for
counts under subdivision (3). However, the same date shall be used for
all school corporations making a count for the same class of school.
(b) Each transferee corporation is entitled to receive for each school
year on account of each transferred student, except a student
transferred under section 3 of this chapter, transfer tuition from the
transferor corporation or the state as provided in this chapter. Transfer
tuition equals the amount determined under STEP THREE of the
following formula:
STEP ONE: Allocate to each transfer student the capital
expenditures for any special equipment used by the transfer
student and a proportionate share of the operating costs incurred
by the transferee school for the class of school where the transfer
student is enrolled.
STEP TWO: If the transferee school included the transfer student
in the transferee school's ADM for a school year, allocate to the
transfer student a proportionate share of the following general
fund revenues of the transferee school for except as provided in
clause (C), the calendar year in which the school year ends:
(A) The following state distributions that are computed in any
part using ADM or other pupil count in which the student is
included:
(i) Primetime grant under
IC 21-1-30.
(ii) Tuition support for basic programs and at-risk weights
under
IC 21-3-1.7-8
(before January 1, 1996) and only for
basic programs (after December 31, 1995).
(iii) Enrollment growth grant under
IC 21-3-1.7-9.5.
(iv) At-risk grant under
IC 21-3-1.7-9.7.
(v) Academic honors diploma award under
IC 21-3-1.7-9.8.
(vi) Vocational education grant under
IC 21-3-1.8-3.
(vii) Special education grant under IC 21-3-1.8 (repealed
January 1, 1996) or IC 21-3-10.
(viii) (vii) The portion of the ADA flat grant that is available
for the payment of general operating expenses under
IC 21-3-4.5-2
(b)(1).
(B) For school years beginning after June 30, 1997, property
tax levies.
(C) For school years beginning after June 30, 1997, excise tax
revenue (as defined in IC 21-3-1.7-2) received for deposit in
the calendar year in which the school year begins.
(D) (B) For school years beginning after June 30, 1997,
allocations to the transferee school under IC 6-3.5.
STEP THREE: Determine the greater of:
(A) zero (0); or
(B) the result of subtracting the STEP TWO amount from the
STEP ONE amount.
If a child is placed in an institution or facility in Indiana under a court
order, the institution or facility shall charge the county office of the
county of the student's legal settlement under
IC 12-19-7
for the use of
the space within the institution or facility (commonly called capital
costs) that is used to provide educational services to the child based
upon a prorated per student cost.
(c) Operating costs shall be determined for each class of school
where a transfer student is enrolled. The operating cost for each class
of school is based on the total expenditures of the transferee
corporation for the class of school from its general fund expenditures
as specified in the classified budget forms prescribed by the state board
of accounts. This calculation excludes:
(1) capital outlay;
(2) debt service;
(3) costs of transportation;
(4) salaries of board members;
(5) contracted service for legal expenses; and
(6) any expenditure which is made out of the general fund from
extracurricular account receipts;
for the school year.
(d) The capital cost of special equipment for a school year is equal
to:
(1) the cost of the special equipment; divided by
(2) the product of:
(A) the useful life of the special equipment, as determined
under the rules adopted by the Indiana state board of
education; multiplied by
(B) the number of students using the special equipment during
at least part of the school year.
(e) When an item of expense or cost described in subsection (c)
cannot be allocated to a class of school, it shall be prorated to all
classes of schools on the basis of the pupil enrollment of each class in
the transferee corporation compared to the total pupil enrollment in the
school corporation.
(f) Operating costs shall be allocated to a transfer student for each
school year by dividing:
(1) the transferee school corporation's operating costs for the class
of school in which the transfer student is enrolled; by
(2) the pupil enrollment of the class of school in which the
transfer student is enrolled.
When a transferred student is enrolled in a transferee corporation for
less than the full school year of pupil attendance, the transfer tuition
shall be calculated by the portion of the school year for which the
transferred student is enrolled. A school year of pupil attendance
consists of the number of days school is in session for pupil attendance.
A student, regardless of the student's attendance, is enrolled in a
transferee school unless the student is no longer entitled to be
transferred because of a change of residence, the student has been
excluded or expelled from school for the balance of the school year or
for an indefinite period, or the student has been confirmed to have
withdrawn from school. The transferor and the transferee corporation
may enter into written agreements concerning the amount of transfer
tuition due in any school year. Where an agreement cannot be reached,
the amount shall be determined by the Indiana state board of education,
and costs may be established, when in dispute, by the state board of
accounts.
(g) A transferee school shall allocate revenues described in
subsection (b) STEP TWO to a transfer student by dividing:
(1) the total amount of revenues received; by
(2) the ADM of the transferee school for the school year that ends
in the calendar year in which the revenues are received.
However, for state distributions under
IC 21-1-30
IC 21-3-10, or any
other statute that computes the amount of a state distribution using less
than the total ADM of the transferee school, the transferee school shall
allocate the revenues to the transfer student by dividing the revenues
that the transferee school is eligible to receive in a calendar year by the
pupil count used to compute the state distribution.
(h) In lieu of the payments provided in subsection (b), the transferor
corporation or state owing transfer tuition may enter into a long term
contract with the transferee corporation governing the transfer of
students. This contract is for a maximum period of five (5) years with
an option to renew, and may specify a maximum number of pupils to
be transferred and fix a method for determining the amount of transfer
tuition and the time of payment, which may be different from that
provided in section 9 of this chapter.
(i) If the school corporation can meet the requirements of
IC 21-1-30-5
, it may negotiate transfer tuition agreements with a
neighboring school corporation that can accommodate additional
students. Agreements under this section may be for one (1) year or
longer and may fix a method for determining the amount of transfer
tuition or time of payment that is different from the method, amount,
or time of payment that is provided in this section or section 9 of this
chapter. A school corporation may not transfer a student under this
section without the prior approval of the child's parent or guardian.
(j) If a school corporation experiences a net financial impact with
regard to transfer tuition that is negative for a particular school year as
described in
IC 6-1.1-19-5.1
, the school corporation may appeal for an
excessive levy as provided under
IC 6-1.1-19-5.1.
SECTION 38.
IC 20-8.1-6.5-9
IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 9. Transportation
Costs . State Reimbursement. Transportation costs for transferred
students for each calendar year or for capital outlay and for operations
shall be reimbursed by the state to the transferor corporation in the
same percent of the total outlay which the distributions to the transferor
corporation under IC 1971, 21-3-1.5-3, or from the state flat grant
distribution account where it is credited to the general fund,
IC 21-3-3.1
constitute of its total annual general transportation fund
appropriations for such year. In this calculation there shall be excluded
from general fund appropriations capital outlay, debt service, and any
expenditure which is made out of the general fund from extracurricular
accounts. Any amount not thus reimbursed and raised as part of the
transferor corporation's general transportation fund levy shall
constitute an increase in its base tax levy for such budget year, as
otherwise defined and as applied in
IC 6-1.1-1-16
and
IC 6-1.1-19.
In
no event shall the state reimbursement for transportation operating
expense to the transferor corporation be less than it would receive
under applicable law without regard to this section.
SECTION 39.
IC 20-9.1-1-3
IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 3. Definition,
"Private School". As used in this article, the term "private school"
means any school which that is not supported and maintained by funds
realized from the imposition of a tax on property, income or sales. a
school corporation ( as defined in
IC 20-5-1-3
) or school township
(IC 20-2-8-1).
SECTION 40.
IC 20-10.1-6.5-1
IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 1. As used in this
chapter:
"Advancement fund" refers to the school technology advancement
account as created under section 4 of this chapter.
"Board" refers to the state board of education established under
IC 20-1-1-1.
"School corporation" means any a school corporation authorized by
law to establish public schools and levy taxes for their maintenance. (as
defined in
IC 20-5-1-3
) or school township (IC 20-2-8-1).
SECTION 41.
IC 21-1-1-54
IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 54. The auditor
of each county shall, semiannually, on the second Monday of July and
on the last Monday in January make apportionment of the school
revenue to which his county is entitled to the several townships and
incorporated towns and cities of the county; which apportionment shall
be paid to the school treasurer of each township and incorporated town
and city by the county treasurer. In making the apportionment and
distribution thereof, the auditor shall ascertain the amount of the
congressional township school revenue belonging to each city, town or
township, and shall apportion the other school revenue so as to equalize
the amount of available school revenue for tuition to each city, town
and township, as near as may be, according to the enumeration of
children therein, and report the amount apportioned to the
superintendent of public instruction, verified by affidavit; however, in
no case shall the income of the congressional township school fund
belonging to any congressional township, or part of such township, be
diminished by such apportionment, or diverted or distributed to any
other township. In making the apportionment and distribution of the
state tuition revenues apportioned to the county by the superintendent
of public instruction, in case any school corporation shall not have
expended for tuition purposes in any school year an amount as great as
the amount of state tuition revenue apportioned and distributed to said
corporation by the auditor for said school year, then it shall be the duty
of the auditor, at the first apportionment after the annual report of the
receipts and expenditures of said school corporation shall have been
filed with the county commissioners, to deduct from the whole amount
of state tuition revenue apportioned to said school corporation an
amount equal to the difference between the amount of state tuition
revenue apportioned and distributed to said school corporation for use
in such school year and the whole amount shown by such annual report
to have been actually expended for tuition purposes, and there shall be
paid to the treasurer of said school corporation the sum remaining after
such amount shall have been deducted, and the county auditor shall
include all such deductions in his report to the state superintendent of
public instruction as tuition revenue collected in his county and ready
for distribution at the next apportionment. Funds arising from the local
tuition tax shall not be considered in making the deductions provided
for in this section, nor included in the report to the state superintendent
of public instruction.
SECTION 42.
IC 21-2-5.6-3
, AS AMENDED BY P.L.232-1999,
SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2003]: Sec. 3. This section applies to self-insurance
funds permitted to be established under section 1(1) of this chapter and
self-insurance funds required to be established under section 1(2) of
this chapter. Subject to the approval of the commissioner of the
department of insurance, the governing body of the school corporation
is authorized to:
(1) transfer to the self-insurance fund an amount of money in
(A) the general fund budget; and
(B) the general fund tax levy and rate;
(2) (1) transfer monies from the general fund to the self-insurance
fund; or
(3) (2) appropriate monies from the general fund for the
self-insurance fund.
SECTION 43.
IC 21-2-11-2
IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 2. (a) The
governing body of each school corporation in the state of Indiana shall
establish a general fund for the operation and maintenance of local
schools. and levy a tax therefor. All receipts and disbursements
heretofore authorized by law for school funds and tax levies for the
tuition fund, special school fund, special fund, vocational fund,
recreation fund, compulsory education fund, school library fund, high
school library fund, public employee's retirement fund, operating fund,
transportation tax and county wide school tax shall, on and after
January 1, 1968, be received in and disbursed from the general fund.
Tax levy and rate for the general fund shall be established by the
governing body of each school corporation for the 1968 calendar year
and all succeeding calendar years. Any balances of all the aforesaid
funds on January 1, 1968 shall be transferred to the general fund.
(b) Any money not specifically required to be deposited in
another fund by terms of a grant or by statute shall be deposited in
the school corporation's general fund.
(c) Except as otherwise provided by statute, a school
corporation shall pay for its operation and maintenance
expenditures from money in its general fund.
(d) Notwithstanding any other law (except
IC 20-4-1-32
,
IC 20-4-8-2
,
IC 21-2-12,
and
IC 21-2-13
) after 2002, an ad valorem
property tax may not be levied by a school corporation for deposit
in its general fund.
(e) The annual budget of a school corporation payable for its
general fund is not subject to review, approval, or adjustment by
the county board of tax adjustment or the department of local
government finance if no ad valorem property tax rate is set for the
general fund.
SECTION 44.
IC 21-3-1.6-1.1
, AS AMENDED BY P.L.291-2001,
SECTION 239, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2003]: Sec. 1.1. As used in this chapter:
(a) "School corporation" means any local public school corporation
established under Indiana law.
(b) "School year" means a year beginning July 1 and ending the next
succeeding June 30.
(c) "State distribution" due a school corporation means the amount
of state funds to be distributed to a school corporation in any calendar
year under this chapter.
(d) "Average daily membership" or "ADM" of a school corporation
means the number of eligible pupils enrolled in the school corporation
or in a transferee corporation on a day to be fixed annually by the
Indiana state board of education. Such day shall fall within the first
thirty (30) days of the school term. If, however, extreme patterns of
student in-migration, illness, natural disaster, or other unusual
conditions in a particular school corporation's enrollment on the
particular day thus fixed, cause the enrollment to be unrepresentative
of the school corporation's enrollment throughout a school year, the
Indiana state board of education may designate another day for
determining the school corporation's enrollment. The Indiana state
board of education shall monitor changes that occur after the fall count,
in the number of students enrolled in programs for children with
disabilities and shall, before December 2 of that same year, make an
adjusted count of students enrolled in programs for children with
disabilities. The superintendent of public instruction shall certify the
adjusted count to the budget committee before February 5 of the
following year. In determining the ADM, each kindergarten pupil shall
be counted as one-half (1/2) pupil. Where a school corporation
commences kindergarten in a school year, the ADM of the current and
prior calendar years shall be adjusted to reflect the enrollment of the
kindergarten pupils. In determining the ADM, each pupil enrolled in
a public school and a nonpublic school is to be counted on a full-time
equivalency basis as provided in section 1.2 of this chapter. "Current
ADM" of a school corporation used in computing its state distribution
in a calendar year means the ADM of the school year ending in the
calendar year. "ADM of the previous year" or "ADM of the prior year"
of a school corporation used in computing its state distribution in a
calendar year means the ADM of the school corporation for the school
year ending in the preceding calendar year.
(e) "Additional count" of a school corporation, or comparable
language, means the aggregate of the additional counts of the school
corporation for certain pupils as set out in section 3 of this chapter and
as determined at the times for calculating ADM. "Current additional
count" means the additional count of the school corporation for the
school year ending in the calendar year. "Prior year additional count"
of a school corporation used in computing its state distribution in a
calendar year means the additional count of the school corporation for
the school year ending in the preceding calendar year.
(f) "Adjusted assessed valuation" of any school corporation used in
computing state distribution for a calendar year means the assessed
valuation in the school corporation, adjusted as provided in
IC 6-1.1-34. The amount of the valuation shall also be adjusted
downward by the state board of tax commissioners to the extent it
consists of real or personal property owned by a railroad or other
corporation under the jurisdiction of a federal court under the federal
bankruptcy laws (11 U.S.C. 101 et seq.) if as a result of the corporation
being involved in a bankruptcy proceeding the corporation is
delinquent in payment of its Indiana real and personal property taxes
for the year to which the valuation applies. If the railroad or other
corporation in some subsequent calendar year makes payment of the
delinquent taxes, then the state superintendent of public instruction
shall prescribe adjustments in the distributions of state funds pursuant
to this chapter as are thereafter to become due to a school corporation
affected by the delinquency as will ensure that the school corporation
will not have been unjustly enriched under the provisions of
P.L.382-1987(ss). The amount of the valuation shall also be adjusted
downward by the state board of tax commissioners to the extent it
consists of real or personal property described in IC 6-1.1-17-0.5(b).
(g) (f) "General fund" means a school corporation fund established
under
IC 21-2-11-2.
(h) (g) "Teacher" means every person who is required as a condition
of employment by a school corporation to hold a teacher's license
issued or recognized by the state, except substitutes and any person
paid entirely from federal funds.
(i) (h) "Teacher ratio" of a school corporation used in computing
state distribution in any calendar year means the ratio assigned to the
school corporation pursuant to section 2 of this chapter.
(j) (i) "Eligible pupil" means a pupil enrolled in a school corporation
if:
(1) the school corporation has the responsibility to educate the
pupil in its public schools without the payment of tuition;
(2) subject to subdivision (5), the school corporation has the
responsibility to pay transfer tuition under
IC 20-8.1-6.1
, because
the pupil is transferred for education to another school
corporation (the "transferee corporation");
amount determined in section 8 of this chapter.
(b) If the total amount to be distributed as tuition support under this
chapter, for enrollment adjustment grants under section 9.5 of this
chapter, for at-risk programs under section 9.7 of this chapter, for
academic honors diploma awards under section 9.8 of this chapter, and
for primetime distributions under
IC 21-1-30
and as special and
vocational education grants under IC 21-3-1.8-3 or IC 21-3-10 for a
particular year exceeds:
(1) three billion three hundred sixty-three million four hundred
thousand dollars ($3,363,400,000) in 2001;
(2) three billion four hundred seventy-one million one hundred
thousand dollars ($3,471,100,000) in 2002; and
(3) three five billion five hundred ninety-four ninety-two million
two hundred thousand dollars ($3,594, 200,000) ($5,592,200,000)
in 2003;
the amount to be distributed for tuition support under this chapter to
each school corporation during each of the last six (6) months of the
year shall be reduced by the same dollar amount per ADM (as adjusted
by
IC 21-3-1.6-1.1
) so that the total reductions equal the amount of the
excess.
SECTION 48. THE FOLLOWING ARE REPEALED [EFFECTIVE
JULY 1, 2002]:
IC 6-1.1-19-4.4
;
IC 6-1.1-19-4.5
;
IC 6-1.1-19-4.7
;
IC 6-1.1-19-4.9
;
IC 6-1.1-19-5.1
;
IC 6-1.1-19-5.3
;
IC 6-1.1-19-6
;
IC 6-1.1-19-10.5
;
IC 6-1.1-19-11.
SECTION 49. THE FOLLOWING ARE REPEALED [EFFECTIVE
JANUARY 1, 2003]:
IC 20-4-8-23
;
IC 20-3-11-20
;
IC 21-2-11-8
;
IC 21-2-14
;
IC 21-3-1.7-5
;
IC 21-3-1.7-6.8
;
IC 21-4-20-1.
SECTION 50. [EFFECTIVE UPON PASSAGE] (a)
Notwithstanding
IC 21-2-5.6-3
(as effective before January 1,
2003), a school corporation may not levy an ad valorem property
tax for its self-insurance fund after 2002.
(b) Notwithstanding
IC 6-1.1-19-4.5
(c), a referendum to impose
an excessive tax levy may not be conducted in 2002.
(c)
IC 21-2-11-2
, as amended by this act, applies only to
property taxes first due and payable after December 31, 2002.
(d) Notwithstanding
IC 21-2-11-2
, as amended by this act, the
elimination of the authority of a school corporation to impose an
ad valorem property tax levy for its general fund after 2002,
including the excessive levy authorized under
IC 6-1.1-19-10.5
(repealed by this act), shall not be construed as authority for the
school corporation to default on the repayment of an advance of
funds, lease payments, or repayment of debt, including principal,
interest, and related charges, under an agreement or statute for
which payments were made from the general fund of the school
corporation before 2003. If the school corporation has insufficient
money in its general fund from other sources to make the required
payments after 2002, the school corporation shall impose an
additional levy for its debt service fund to repay the advance
payments, retire the debt, or make the lease payments as provided
in the agreement or statute.
(e) The state shall make an additional distribution to each school
corporation in May and November of 2003 that is equal to fifty
percent (50%) of the total amount of miscellaneous taxes that the
school corporation received in 2002 under the following statutes as
a result of property taxes levied for the school corporation's
general fund in 2002:
(1) Commercial vehicle excise tax (IC 6-6-5.5-20).
(2) Aircraft excise tax (IC 6-6-6.5-21).
(3) Auto rental excise tax (IC 6-6-9-11).
(4) Boat excise tax (IC 6-6-11-31).
The distribution under this subsection does not reduce the amount
of state tuition support that the school corporation is entitled to
receive under
IC 21-3-1.7.
(f) Notwithstanding
IC 6-1.1-19-1.7
, the general fund part of a
school corporation's levy excess in the school corporation's levy
excess fund shall be transferred to the school corporation's general
fund and may be used for any purpose. The transfer under this
subsection does not reduce the amount of state tuition support the
school corporation is entitled to receive under
IC 21-3-1.7.
The
transfer and use of the money is not subject to review or approval
by the county board of tax adjustment or the department of local
government finance.
(g) The repeal of
IC 6-1.1-19-4.4
,
IC 6-1.1-19-4.5
,
IC 6-1.1-19-4.7
,
IC 6-1.1-19-4.9
,
IC 6-1.1-19-5.1
,
IC 6-1.1-19-5.3
,
IC 6-1.1-19-6
,
IC 6-1.1-19-10.5
, and
IC 6-1.1-19-11
by this act and
the amendment of
IC 6-1.1-19-1
,
IC 6-1.1-19-1.5
,
IC 6-1.1-19-2
, and
IC 6-1.1-19-7
by this act do not apply to actions related to or the
maximum general fund ad valorem property tax levy for property
taxes first due and payable in 2002.
(h)
IC 6-1.1-19-12
, as added by this act, applies only to state
tuition support distributions made after December 31, 2002.
SECTION 51. An emergency is declared for this act.