Your Committee on Insurance, Corporations and Small Business , to which was referred Senate Bill 453 , 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:
legislative council in an electronic format under IC 5-14-6:
(A) an annual report not later than July 1 of each year; and
(B) a final report, including aggregate information, not later than July 1, 2011;
concerning the effect of the participation in the state employee health plan by the active and retired employees of the school corporation employees, including the effect on premium rates, costs to the state and to the school corporations, and any other information determined relevant by the legislative council.
(6) Conclude insurance coverage not later than December 31, 2010.
(f) A school corporation that participates in the pilot project under this section shall provide for payment of the premium for the coverage as provided in section 2.6 of this chapter. The state shall not pay any part of the premium for the coverage. The administrator of the state employee health plan described in subsection (b)(1) shall not pay any part of the administrative cost or other costs of the coverage.
(g) The state personnel department may adopt rules under IC 4-22-2 to implement this section.
(h) This section expires December 31, 2011.
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
(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
(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 taxes, 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
(14) To purchase insurance,
or to establish and maintain a
program of self-insurance, or enter into an interlocal
agreement with one (1) or more school corporations to
establish and maintain a cooperative risk management
program under IC 20-5-2.7, 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, or enter into an interlocal agreement with one
(1) or more school corporations to establish and maintain a
cooperative risk management program under IC 20-5-2.7,
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.
(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 the member's or employee's 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 the member's or employee's malfeasance in office
(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.
risk management program through which the school corporations
agree to maintain a program of joint self-insurance to cover
certain retained risks and to jointly purchase aggregate insurance
coverage and specific insurance coverage, including the following:
(1) Casualty insurance, including general and professional liability coverage and student accident insurance.
(2) Property insurance.
(3) Automobile insurance, including motor vehicle liability insurance coverage and security for motor vehicles owned or operated, and protection against other liability and loss associated with the ownership of motor vehicles.
(4) Surety and fidelity insurance coverage.
(5) Umbrella and excess insurance coverage.
(6) Worker's compensation coverage.
(b) A cooperative program established under this chapter is a separate legal entity with the power to:
(1) sue and be sued;
(2) make contracts; and
(3) hold and dispose of real and personal property.
Sec. 8. A cooperative program established under this chapter is subject to regulation by the department of insurance created by IC 27-1-1-1.
Sec. 9. (a) A cooperative program shall:
(1) establish a self-insurance fund with an aggregate limit on the total amount of self-insured risk retained by the members in a fiscal year; and
(2) maintain aggregate insurance coverage and specific insurance coverage.
(b) A self-insurance fund established under subsection (a) must be funded at the beginning of each fiscal year by a contribution from each member in an amount that reflects the member's share of self-insured risk and other costs of the cooperative program.
(c) Annual contributions to the self-insurance fund under subsection (b) must be:
(1) determined using generally accepted actuarial standards;
program, including a provision specifying that an existing
member may not leave the cooperative program unless
the member's departure is specifically approved by the
(C) other provisions necessary or desirable for the operation of the cooperative program.
(c) The following must be submitted to and approved by the commissioner before a cooperative program may commence operations:
(1) The interlocal agreement described in subsection (a).
(2) The bylaws described in subsection (b).
(3) The form and purchase by the cooperative program of any insurance contracts, including contracts for aggregate insurance coverage and specific insurance coverage.
(4) An accounting, based on generally accepted actuarial standards, of sufficient reserves committed before commencement of operations to pay obligations of the cooperative program.
(5) Each coverage document form to be issued by the cooperative program.
(6) Any other information determined necessary by the commissioner.
(d) If the commissioner does not disapprove the information submitted under subsection (c) earlier than thirty (30) days after the information is submitted, the information is considered approved.
Sec. 11. (a) A cooperative program shall have an annual audit performed by an independent certified public accounting firm according to guidelines established by the state board of accounts.
(b) Not later than one hundred eighty (180) calendar days after the close of a cooperative program's fiscal year, the cooperative program must furnish the cooperative program's members with audited financial statements certified by an independent certified public accounting firm.
(c) Copies of the audit report and certified financial statements
required under this section must be provided to the commissioner
and the state board of accounts not later than one hundred eighty
(180) calendar days after the close of the cooperative program's
(d) If a cooperative program fails to have the annual audit performed as required by subsection (a), the commissioner shall cause the audit to be performed at the expense of the cooperative program.
(e) The working papers of the certified public accountant and other records pertaining to the preparation of the audited financial statements required under this section may be reviewed by the commissioner.
Sec. 12. The assets of a cooperative program must be:
(1) treated as a joint investment fund under IC 20-5-11-5; and
(2) invested under IC 5-13-9 in the same manner as other public funds.
Sec. 13. Not later than sixty (60) calendar days after the beginning of a cooperative program's fiscal year, the governing authority shall submit the following to the commissioner:
(1) A copy of the bylaws adopted by the cooperative program.
(2) A copy of each coverage document form issued by the cooperative program.
(3) A copy of the insurance contracts purchased by the cooperative program, including contracts for aggregate insurance coverage and specific insurance coverage.
(4) A copy of the interlocal agreement.
Sec. 14. (a) If a cooperative program fails to comply with the requirements of this chapter, the commissioner shall issue a notice of noncompliance to the cooperative program.
(b) Not later than thirty (30) calendar days after a cooperative program receives a notice of noncompliance under subsection (a), the cooperative program shall file with the commissioner a written request for time to restore compliance and a plan to restore compliance.
proceeding to enforce a judgment. This section does not prohibit
the commissioner from obtaining the information described in this
Sec. 17. The department of insurance may adopt rules under IC 4-22-2 to implement this chapter.
out of a creditor-debtor transaction;
(5) warranty or service contract insurance;
(6) title insurance;
(7) ocean marine insurance;
(8) a transaction between a person or an affiliate of a person and an insurer or an affiliate of an insurer that involves the transfer of investment or credit risk without a transfer of insurance risk;
(9) insurance provided by or guaranteed by a government entity; and
(10) insurance written on a retroactive basis to cover known losses for which a claim has already been made and the claim is known to the insurer at the time the insurance is bound.
(b) This chapter applies to coverage provided under a cooperative program established under IC 20-5-2.7. For purposes of this chapter, a cooperative program is considered to be a member insurer.".
and when so amended that said bill do pass.