Reprinted

January 29, 2002





SENATE BILL No. 429

_____


DIGEST OF SB 429 (Updated January 28, 2002 4:43 PM - DI 44)



Citations Affected: IC 5-1.

Synopsis: Restrictions on terms of bond issues. Provides that, without the approval of the budget director, certain entities may not include an agreement to seek appropriations from the general assembly to restore a debt service reserve fund or otherwise pay debt service on bonds or other obligations in a resolution, trust agreement, indenture, or other agreement adopted or entered into after March 31, 2002.

Effective: April 1, 2002.





Borst




    January 10, 2002, read first time and referred to Committee on Finance.
    January 22, 2002, reported favorably _ Do Pass.
    January 28, 2002, read second time, amended, ordered engrossed.





Reprinted

January 29, 2002

Second Regular Session 112th General Assembly (2002)


PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts between statutes enacted by the 2001 General Assembly.

SENATE BILL No. 429



    A BILL FOR AN ACT to amend the Indiana Code concerning state and local administration.

Be it enacted by the General Assembly of the State of Indiana:

    SECTION 1. IC 5-1-14-4.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE APRIL 1, 2002]: Sec. 4.5. (a) This section applies to:
        (1) the Indiana development finance authority;
        (2) the state office building commission;
        (3) the Indiana health facility financing authority;
        (4) the Indiana housing finance authority;
        (5) the Indiana port commission;
        (6) the Indiana transportation finance authority;
        (7) the recreational development commission;
        (8) the state fair commission;
        (9) the Indiana educational facilities authority; and
        (10) the Indiana political subdivision risk management commission.
    (b) Notwithstanding any other law, after March 31, 2002, an issuer described in subsection (a), or any other entity or individual acting on behalf of an issuer described in subsection (a), may not:


        (1) include in a resolution, trust agreement, indenture, or other agreement adopted or entered into after March 31, 2002, a provision stating that the issuer or any other entity or individual is authorized or required to request appropriations from the general assembly to:
            (A) restore a debt service reserve fund; or
            (B) otherwise pay debt service on or secure any obligations or any lease rental or contractual obligations; or
        (2) amend a resolution, trust agreement, indenture, or any other agreement after March 31, 2002, by adding a provision described in subdivision (1);
unless the inclusion or addition of that provision is authorized by subsection (c) or approved by the budget director. A provision included in or added to a resolution, trust agreement, indenture, or other agreement in violation of this section is void and unenforceable.
    (c) This section:
        (1) does not prohibit the Indiana bond bank from including a description of the duties of the chairman of the Indiana bond bank under IC 5-1.5-5-4 or IC 5-1.5-6.5-4; and
        (2) does not prohibit the Indiana transportation finance authority from including a description of the duties of the chairman of the authority under IC 8-14.5-5-2(d);
in a resolution, trust agreement, indenture, or other agreement.

    SECTION 2. An emergency is declared for this act.