SB 494-1_ Filed 03/27/2003, 08:09 Liggett
Text Box
PREVAILED Roll Call No. _______
FAILED Ayes _______
WITHDRAWN Noes _______
RULED OUT OF ORDER
[
HOUSE MOTION ____
]
MR. SPEAKER:
I move that Engrossed Senate Bill 494 be amended to read as follows:
SOURCE: Page 1, line 1; (03)MO049401.1. -->
Page 1, between the enacting clause and line 1, begin a new
paragraph and insert:
SOURCE: IC 6-1.1-41-1; (03)MO049401.1. -->
"SECTION 1.
IC 6-1.1-41-1
, AS AMENDED BY P.L.129-1999,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2003]: Sec. 1. This chapter applies to establishing and
imposing a tax levy for cumulative funds under the following:
(1)
IC 3-11-6.
(2)
IC 8-10-5.
(3)
IC 8-16-3.
(4)
IC 8-16-3.1.
(5)
IC 8-22-3.
IC 13-26-15.
(6)
IC 14-27-6.
(7)
IC 14-33-21.
(8)
IC 16-22-4.
(9)
IC 16-22-8.
(10)
IC 36-8-14.
(11)
IC 36-9-4.
(12)
IC 36-9-14.
(13)
IC 36-9-14.5.
(14)
IC 36-9-15.
(15)
IC 36-9-15.5.
(16)
IC 36-9-16.
(17)
IC 36-9-17.
(18)
IC 36-9-17.5.
(19)
IC 36-9-26.
(20)
IC 36-9-27.
(21)
IC 36-10-3.
(22)
IC 36-10-4.
(23)
IC 36-10-7.5.
(24) Any other statute that specifies that a property tax levy may
be imposed under this chapter.".
SOURCE: Page 2, line 5; (03)MO049401.2. -->
Page 2, between lines 5 and 6, begin a new paragraph and insert:
SOURCE: IC 13-26-5-9; (03)MO049401.3. -->
"SECTION 3.
IC 13-26-5-9
IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2003]: Sec. 9. The board of trustees of a district may establish a
cumulative improvement fund for the district and impose a special
benefits levy for the fund in conformity with
IC 13-26-15.
SOURCE: IC 13-26-6-5; (03)MO049401.4. -->
SECTION 4.
IC 13-26-6-5
IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2003]: Sec. 5. (a) As the result of:
(1) experience gained in the construction or operation of the
works of a district; or
(2) changed conditions;
the district plan may be amended in any way as long as the
amended plan conforms to the other requirements of this article.
(b) An amendment to a district plan is effective when the
department approves it. If the department disapproves an
amendment to a district plan, the department may recommend
revisions and authorize the district to proceed with a revised plan.
(c) A district is not dissolved if the department does not approve
an amendment to the district plan.
SOURCE: IC 13-26-7-3; (03)MO049401.5. -->
SECTION 5.
IC 13-26-7-3
IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 3. When a district
receives revenue for its operations, a special benefits levy under
IC 13-26-15
(to the extent an advance is for a purpose of the
cumulative improvement fund), or proceeds from the sale of bonds,
the district shall repay any money advanced to the advancing agency
in the manner agreed.
SOURCE: IC 13-26-10-1; (03)MO049401.6. -->
SECTION 6.
IC 13-26-10-1
IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 1. A district may obtain
money for the payment of the costs of the works or an improvement,
enlargement, or extension of the works by the issuance of revenue
bonds of the district. The principal and interest of the revenue bonds
must be paid
by either of the following methods:
(1) Solely from the net revenues of the works.
(2) Against the real property of the district in anticipation of
the collection of a special benefits tax levy under
IC 13-26-15.
Bonds issued against the real property of the district may be
paid in part by revenues derived from reasonable charges for
services or property produced incident to the operation of the
district.
SOURCE: IC 13-26-10-2; (03)MO049401.7. -->
SECTION 7.
IC 13-26-10-2
IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 2. A district obtaining
a loan from the federal government or an agency of the federal
government may issue obligations under this article to the federal
government or agency to evidence the indebtedness without advertising
for or receiving bids. The obligations:
(1) are payable solely from the net revenues of the works or the
special benefits tax levy under
IC 13-26-15
, or both, as
specified in the loan agreement; and
(2) may be made of equal priority or subordinate to other revenue
bonds issued or to be issued under this article or
IC 13-3-2
(before
its repeal).
SOURCE: IC 13-26-10-3; (03)MO049401.8. -->
SECTION 8.
IC 13-26-10-3
IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 3. Revenue Bonds may:
(1) bear interest, at a rate or rates not exceeding the maximum
determined by the board, that is payable annually or at shorter
intervals;
(2) mature at a time or times to be determined by ordinance; and
(3) be made redeemable before maturity at the option of the
district, to be exercised by the board, at not more than the par
value and a premium not exceeding five percent (5%) under terms
and conditions that are fixed by the ordinance authorizing the
issuance of the bonds.
SOURCE: IC 13-26-10-4; (03)MO049401.9. -->
SECTION 9.
IC 13-26-10-4
IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 4. The principal and
interest of revenue bonds may be made payable in any lawful medium.
The ordinance must do the following:
(1) Determine the form of the bonds, including the interest
coupons, if any, to be attached.
(2) Fix the denomination or denominations of the bonds and the
place or places of payment of the principal and interest, which
may be any bank or trust company within or outside Indiana.
SOURCE: IC 13-26-10-5; (03)MO049401.10. -->
SECTION 10.
IC 13-26-10-5
IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 5. (a) The Subject to
subsection (e), revenue bonds must contain a statement on the face of
the bonds that the district is not obligated to pay the bonds or the
interest on the bonds except from the special fund provided from the
net revenues of the works.
(b) All bonds are negotiable instruments.
(c) The bonds and interest are exempt from all state, county, and
municipal taxation.
(d) The bonds may be registered in the name of the owner:
(1) as to principal alone; or
(2) as to both principal and interest.
Fully registered bonds may be made convertible to coupon bonds at the
option of the registered owner.
(e) The board may covenant with the holders of bonds to pay:
(1) a certain percentage of principal and interest from
revenue; and
(2) a certain percentage from the special benefits levy imposed
under
IC 13-26-15.
SOURCE: IC 13-26-10-7; (03)MO049401.11. -->
SECTION 11.
IC 13-26-10-7
IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 7. (a) Subject to
subsection (b), the treasurer of the district shall sell the revenue bonds
in a manner and at a price that is determined to be in the best interests
of the district.
(b) If the bonds are sold at public sale, the bonds shall be sold in
accordance with
IC 5-1-11
as
IC 5-1-11
applies to counties.
SOURCE: IC 13-26-10-8; (03)MO049401.12. -->
SECTION 12.
IC 13-26-10-8
IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 8. (a) A surplus of
revenue bond proceeds over the cost of the works shall be paid into the
sinking fund provided by this article.
(b) If the proceeds of the bonds, by error of calculation or otherwise,
are less than the cost of the works, additional bonds may in the same
manner be issued to provide the amount of the deficit. Unless otherwise
provided in:
(1) the ordinance authorizing the issuance of the bonds first
issued; or
(2) the trust indenture authorized by this article or
IC 13-3-2
(before its repeal);
the additional bonds are considered to be of the same issue and are
entitled to payment from the same fund, without preference or priority
of the bonds first issued.
SOURCE: IC 13-26-10-9; (03)MO049401.13. -->
SECTION 13.
IC 13-26-10-9
IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 9. Before the
preparation of the definite revenue bonds, temporary revenue bonds
under the same restrictions may be issued with or without coupons,
exchangeable for definite revenue bonds upon the issuance of the latter.
SOURCE: IC 13-26-10-12; (03)MO049401.14. -->
SECTION 14.
IC 13-26-10-12
IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 12. Subject to an
ordinance or trust indenture pertaining to outstanding bonds, additional
bonds payable from the revenues of the works may be authorized and
issued in accordance with this article for the purpose of improving,
enlarging, or extending works acquired or constructed under this article
or
IC 13-3-2
(before its repeal).
SOURCE: IC 13-26-10-13; (03)MO049401.15. -->
SECTION 15.
IC 13-26-10-13
IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 13. The board may
secure the
revenue bonds by a trust indenture by and between the
district and a corporate trustee, which may be any trust company or
bank having the powers of a trust company within or outside Indiana.
However, a trust indenture may not convey or mortgage all or any part
of the works.
SOURCE: IC 13-26-10-14; (03)MO049401.16. -->
SECTION 16.
IC 13-26-10-14
IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 14. The ordinance
authorizing the revenue bonds and fixing the details of the revenue
bonds may provide that the trust indenture contain reasonable and
lawful provisions for protecting and enforcing the rights and remedies
of the bondholders, including covenants setting forth the duties of the
district and the board in relation to the following:
(1) The construction or acquisition of the works.
(2) The improvement, operation, repair, and maintenance of the
works.
(3) The issuance of bonds, including the custody, safeguarding,
and application of all money.
SOURCE: IC 13-26-10-17; (03)MO049401.17. -->
SECTION 17.
IC 13-26-10-17
IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 17. Unless this article
otherwise provides, the board may provide by ordinance or in the trust
indenture for the payment of:
(1) the proceeds of the sale of the bonds; and
(2) the revenues of the works; and
(3) the proceeds of a special benefits tax levy;
to the officer, board, or depository that the board determines for the
custody of the money and for the method of disbursement, with
safeguards and restrictions that the board determines.
SOURCE: IC 13-26-10-18; (03)MO049401.18. -->
SECTION 18.
IC 13-26-10-18
IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 18. (a) At or before the
time of issuance of the revenue bonds, the board shall by ordinance
create a sinking fund for the payment of the following:
(1) The bonds.
(2) The interest on the bonds.
(3) The charges of banks or trust companies for making payment
of the bonds or interest.
(b) The board shall set aside and pledge any part of a special
benefits tax levy committed to the bond issue and the net revenues
of the works remaining after the payment of the reasonable expense of
operation, repair, and maintenance of the works for payment of the:
(1) principal of and interest on all bonds payable from the
revenues of the works, to the extent necessary for that purpose;
and
(2) necessary fiscal agency charges for paying the principal and
interest of the bonds.
(c) The ordinance may also provide for the accumulation of
reasonable reserves in the sinking fund:
(1) as a margin for safety and a protection against default; and
(2) for the payment of premiums upon bonds retired by call or
purchase as provided by this article.
SOURCE: IC 13-26-10-19; (03)MO049401.19. -->
SECTION 19.
IC 13-26-10-19
IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 19. (a) The holder of
revenue bonds or attached coupons and the trustee, if any, except to the
extent the rights given may be restricted by the ordinance authorizing
issuance of the bonds or by the trust indenture, may, by civil action,
protect and enforce rights granted:
(1) by this article or
IC 13-3-2
(before its repeal); or
(2) under the ordinance or trust indenture;
to be performed by the district issuing the bonds or by the board or any
officer, including the making and collecting of reasonable and
sufficient charges and rates for services provided by the works.
(b) If there is failure to pay the principal or interest on any of the
revenue bonds on the date named for payment, and upon application by
a bondholder or a trustee, any court having jurisdiction to appoint
receivers shall appoint a receiver to administer the works on behalf of
the district and the bondholders or trustee. A receiver may do the
following:
(1) Charge and collect rates sufficient to provide for the payment
of the expenses of operation, repair, and maintenance.
(2) Impose and collect a special benefits levy as provided in
IC 13-12-15.
(3) Pay any revenue bonds and interest outstanding.
(3) (4) Apply the revenues in conformity with this article and the
ordinance or trust indenture.
SOURCE: IC 13-26-15; (03)MO049401.20. -->
SECTION 20.
IC 13-26-15
IS ADDED TO THE INDIANA CODE
AS A
NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2003]:
Chapter 15. Cumulative Improvement Fund
Sec. 1. As used in this chapter, "fund" refers to a cumulative
improvement fund established under this chapter.
Sec. 2. (a) A district may establish a cumulative improvement
fund under
IC 6-1.1-41
to provide money for:
(1) the construction, additional construction, or repair of
works of improvement;
(2) the maintenance of works of improvement; or
(3) the financing or refinancing of obligations incurred for the
construction, additional construction, or repair of works of
improvement.
(b) Money in the fund may be used to pay part or all of an
obligation that is incurred before or after the fund is established.
However, an expenditure from the fund may be made for a
purpose described in subsection (a) only to the extent that the
district:
(1) has authority under this article to make the expenditure;
and
(2) states in its district plan or in an amendment to its district
plan that the expenditure is a purpose of the fund.
Sec. 3. (a) The board of a district that determines to establish a
fund shall state this determination in the district plan or in any
part or amendment to the plan. Notice to this effect shall be made
a part of all notices concerning approval of the district plan or a
part of or amendment to the plan, including implementation of the
plan. The plan must specify the:
(1) works of improvement;
(2) additions to the works of improvement; or
(3) repair of the works of improvement;
that are to be financed by the fund or for which debt is being
retired.
(b) When:
(1) the district plan;
(2) part of the district plan; or
(3) an amendment to the district plan;
is approved by the department, the fund is established.
Sec. 4. (a) To provide money for the fund, the board may place
in the fund the following:
(1) Gifts or grants from a person or state or federal agency.
(2) Receipts of revenue from the sale of services or property
produced incident to the accomplishment of the purpose for
which the district is organized.
(3) Any other form of miscellaneous receipt, including tap-in
fees and connection fees.
(4) Levy of a special benefits tax in accordance with this
chapter.
(b) The board shall state in the district plan or part of or
amendment to the plan the source or combination of sources that
will finance the fund.
Sec. 5. With the approval of the fiscal body of each political
subdivision appointing at least one (1) member to the board, the
board may levy a special benefits tax in compliance with
IC 6-1.1-41
as a special assessment on all the real property in the
district. The board shall file with the district plan or part of or
amendment to the plan:
(1) the approval of the department of local government
finance; and
(2) any action taken to reduce or rescind the tax levy.
Sec. 6. The special benefits tax may not exceed six and
sixty-seven hundredths cents ($0.0667) on each one hundred
dollars ($100) of assessed valuation of real property in the district.
However, a special benefits tax of less than ten dollars ($10) on a
parcel may be increased to not more than ten dollars ($10) on a
parcel. The district may require a statement processing charge on
a special benefits tax statement. The statement processing charge
is considered a part of the tax liability.
Sec. 7. The benefits received by each taxpayer paying the special
benefits tax shall be treated as equal to the amount of the special
benefits tax paid by the taxpayer.
Sec. 8. A tax levy under section 5 of this chapter may be reduced
or rescinded by an approved amendment to the district plan.
Sec. 9. (a) The budget of a district payable from the fund:
(1) must be prepared and submitted:
(A) at the same time;
(B) in the same manner; and
(C) with notice;
as required by statute for the preparation of budgets by
municipalities; and
(2) is subject to the same review by:
(A) the county board of tax adjustment; and
(B) the department of local government finance;
as is required by statute for the budgets of municipalities.
(b) The budget shall be certified to the auditor of the county
where the district maintains its principal office. Notice must be
published in each county having land in the district. Any taxpayer
in the district is entitled to be heard before the county board of tax
adjustment having jurisdiction.
Sec. 10. (a) Upon approval by the department of local
government finance, the board shall certify the tax levy to the
auditor of each county having real property in the district.
(b) The auditor of each county shall have the levy entered into
the tax records of the county treasurer for collection.
(c) The county treasurer shall collect the tax at the same time as
other property taxes are collected.
(d) After collection, in June and December, the auditor of each
county shall issue a warrant on the county treasurer to transfer the
money collected to the board.
Sec. 11. The special benefits tax levied by a district is a primary
lien on real property in the district equal to other taxes imposed on
real property. The same provisions of other taxes regarding
collections, penalties, and sale of property for delinquencies apply
to this tax.
Sec. 12. A district is not considered a municipal corporation
with respect to limitations on the amount of the districts
indebtedness irrespective of how that indebtedness is secured in a
pledge of the district.
Sec. 13. If:
(1) there is a savings resulting from the cost of the works of
improvement that are provided in the district plan, including
the necessary engineering, legal, and administrative fees,
being less than the proceeds of a bond issue or other
borrowing to pay the costs;
(2) the district plan is amended to provide that the excess
money may be placed in the fund for further necessary works
of improvement or additions to those works constructed with
those proceeds; and
(3) the use of the excess money is not restricted by the terms
of the bond issue or other borrowing;
the excess money may be placed in the fund for the purposes
described in subdivision (2).
Sec. 14. If a federal or state agency, according to statute or
contractual obligation, demands immediate or prompt action by
the district in construction of, adding to, or repairing works of
improvement, the district:
(1) may not defend that not enough money for the work has
accumulated in the fund; and
(2) shall use the accumulation of money in the fund, including
the proceeds of:
(A) borrowing;
(B) the collection of tax or assessments; or
(C) both borrowing and the collection of tax or
assessments;
to discharge the obligation.".
Renumber all SECTIONS consecutively.
(Reference is to ESB 494 as printed March 21, 2003.)
________________________________________
MO049401/DI 92 2003