January 7, 2003, read first time and referred to Committee on Finance.
January 23, 2003, reported favorably _ Do Pass.
January 27, 2003, read second time, amended, ordered engrossed.
Reprinted
January 28, 2003
First Regular Session 113th General Assembly (2003)
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
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Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in
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a new provision to the Indiana Code or the Indiana Constitution.
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SENATE BILL No. 167
A BILL FOR AN ACT to amend the Indiana Code concerning
education finance.
Be it enacted by the General Assembly of the State of Indiana:
SECTION 1. IC 20-5-4-1.7, AS ADDED BY P.L.253-2001,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2003]: Sec. 1.7. (a) For purposes of this section, "retirement
or severance liability" means the payments anticipated to be required
to be made to employees of a school corporation upon or after the
termination of their employment by the school corporation under an
existing or previous employment agreement.
(b) In addition to the purposes set forth in section 1 of this chapter,
a school corporation may issue bonds to implement solutions to
contractual retirement or severance liability. The issuance of bonds for
this purpose is subject to the following limitations:
(1) A school corporation may issue bonds for the purpose
described in this section only one (1) time.
(2) The solution to which the bonds are contributing must be
reasonably expected to reduce the school corporation's existing
unfunded contractual liability for retirement or severance
payments, as of June 30, 2001.
(3) The amount of the bonds that may be issued for the purpose
described in this section may not exceed two percent (2%) of the
total
assessed valuation true tax value of property in the school
corporation.
(4) Each year that a debt service levy is needed under this section,
the school corporation shall reduce its total property tax levy for
the school corporation's transportation,
school bus replacement,
capital projects, or art association and historical society funds in
an amount equal to the property tax levy needed for the debt
service under this section. The property tax rate for each of these
funds shall be reduced each year until the bonds are retired.
(c) Bonds issued for the purpose described in this section shall be
issued in the same manner as other bonds of the school corporation.
(d) Bonds issued under this section must be issued before December
31,
2003. 2004.
(e) Bonds issued under this section are not subject to the petition
and remonstrance process under IC 6-1.1-20.
(f) Bonds issued under this section are not subject to the
limitations contained in IC 36-1-15.
SECTION 2. P.L.253-2001, SECTION 3, IS REPEALED
[EFFECTIVE JULY 1, 2003].
SECTION 3. IC 20-5-4-1.7 IS REPEALED [EFFECTIVE
DECEMBER 31, 2004].
SECTION 4. P.L.253-2001, SECTION 4, IS AMENDED TO READ
AS FOLLOWS [EFFECTIVE JULY 1, 2003]: SECTION 4.
Notwithstanding the repeal of IC 20-5-4-1.7, as added by
this act,
P.L.253-2001, SECTION 1, the following provisions apply to bonds
issued under IC 20-5-4-1.7, as added by
this act, P.L.253-2001,
SECTION 1, before December 31,
2003: 2004:
(1) The bonds remain valid and binding obligations of the school
corporation that issued them, as if IC 20-5-4-1.7 had not been
repealed.
(2) Each year that a debt service levy is needed for the bonds, the
school corporation that issued the bonds shall reduce its total
property tax levy for the school corporation's other funds in an
amount equal to the property tax levy needed for the debt service
on the bonds.