HB 1009-1_ Filed 01/28/2004, 13:43
Your Committee on Ways and Means , to which was referred House Bill
1009 , has had the same under consideration and begs leave to report the same back
to the House with the recommendation that said bill be amended as follows:
SOURCE: Page 8, line 2; (04)AM100901.8. -->
Page 8, between lines 2 and 3, begin a new paragraph and insert:
SOURCE: IC 20-5-4-1.7; (04)AM100901.3. -->
"SECTION 3. IC 20-5-4-1.7, AS AMENDED BY P.L.10-2003,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2004]: 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
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.
(5) A school corporation that issues bonds under this section shall
establish a separate debt service fund for repayment of the bonds.
(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 are valid if either of
the following apply:
(1) The bonds are issued before December 31, 2004.
(2) The school corporation submits to the department of local
government finance before January 1, 2005, a proposal
concerning the issuance of bonds under this section to
implement solutions for the school corporation's retirement
or severance liability, and the school corporation issues the
bonds before January 1, 2006.
(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.".
SOURCE: Page 10, line 28; (04)AM100901.10. -->
Page 10, between lines 28 and 29, begin a new paragraph and insert:
SOURCE: IC 20-5-4-1.7; (04)AM100901.6. -->
"SECTION 6. IC 20-5-4-1.7 IS REPEALED [EFFECTIVE JULY 1,
SOURCE: ; (04)AM100901.7. -->
SECTION 7. P.L.10-2003, SECTION 3, IS REPEALED
[EFFECTIVE JULY 1, 2004].
SOURCE: ; (04)AM100901.8. -->
SECTION 8. [EFFECTIVE JULY 1, 2004] (a) After December 31,
2004, a school corporation may not issue bonds under
IC 20-5-4-1.7, as amended by this act, unless the school
corporation submits a proposal described in IC 20-5-4-1.7(d)(2), as
amended by this act, to the department of local government
finance before January 1, 2005.
(b) This SECTION expires January 1, 2007.".
Renumber all SECTIONS consecutively.
(Reference is to HB 1009 as introduced.)
and when so amended that said bill do pass.
AM100901/DI 92 2004