Citations Affected: IC 5-16-1; IC 20-12.
Synopsis: University capital projects. Expands the dollar value of
higher education capital projects that: (1) can be performed using
higher education employees; and (2) do not require advertising for
bids. Increases from four to twenty years the maximum term of certain
leases entered into by higher education institutions. Reduces from three
to one the number of appraisers required when a higher education
institution sells real property. Removes the requirement that the
governor approve the sale of real property. Increases various dollar
amount triggers that determine whether certain higher education
capital, repair, or lease projects must be approved by the commission
for higher education, the governor, the budget agency, or the general
assembly. Increases from $10 million to $20 million the amount of
bonds that an institution of higher education may issue without the
approval of the general assembly to finance a qualified energy savings
project. Provides that the higher limit would apply at each academic
Effective: July 1, 2004.
January 20, 2004, read first time and referred to Committee on Ways and Means.
A BILL FOR AN ACT to amend the Indiana Code concerning
fifty thousand dollars ($50,000). one hundred fifty thousand dollars
($150,000). However, in awarding any contract under this section the
state educational institution must do the following:
(1) Invite bids from at least three (3) persons, firms, limited liability companies, or corporations known to deal in the work required to be done.
(2) Give notice of the project if the estimated cost of the project
is more than twenty-five thousand dollars ($25,000). If required,
notice must include a description of the work to be done and be
given in at least one (1) newspaper of general circulation printed
and published in the county in which the work is to be done.
(3) (2) Award the contract to the lowest and best bidder.
of the state and the institution;
(7) to prescribe the curricula and courses of study offered by the institution and define the standards of proficiency and satisfaction within the curricula and courses established by the institution;
(8) to award financial aid to students and groups of students out of the available resources of the institution through scholarships, fellowships, loans, remissions of fees, tuitions, charges, or other funds on the basis of financial need, excellence of academic achievement, or potential achievement or any other basis as the governing board may find to be reasonably related to the educational purposes and objectives of the institution and in the best interest of the institution and the state;
(9) to cooperate with other institutions to the end of better assuring the availability and utilization of its total resources and opportunities to provide excellent educational opportunity for all persons;
(10) to establish and carry out written policies for the investment of the funds of the institution in the manner provided by IC 30-4-3-3; and
(11) to lease to any corporation, limited liability company, partnership, association, or individual real estate title to which is in the name of an institution or in the name of the state for the use and benefit of the leasing institution.
(b) A lease may be for such term and for such rental, either nominal or otherwise, as the board determines to be in the best interest of the institution. No lease shall be executed under this section for a term exceeding
four (4) twenty (20) years unless the execution is approved
by the governor and by the state budget agency. The universities shall
be exempt from all property taxes on any real estate leased under this
section, and the lessee shall be liable for property taxes on the leased
real estate as if the real estate were owned by the lessee in fee simple,
unless the lessee is a student living in university-owned facilities.
(c) This section shall not be construed to deny any tax exemption that a lessee would have under other laws if the lessee were the owner in fee simple of the real estate.
five hundred thousand dollars ($500,000), no further authorization is
required before the board of trustees may dispose of the real property.
(c) If the board of trustees determines by appraisal or otherwise that the value of the real property is five hundred thousand dollars ($500,000) or more, the following apply:
(1) The value of the real property comprised in and constituting the gift, bequest, or devise shall be determined by
disinterested appraisers an appraiser who is:
(C) licensed or certified under IC 25-34.1-3-8; and
(D) appointed by the governor.
(2) No such real property shall be sold, conveyed, or otherwise disposed of for less than the appraised value thereof.
(3) The sale, conveyance, or disposition must be approved by the
five hundred thousand dollars
the project must also be approved by the general assembly. Nothing herein limits the trustees in supplementing projects approved by the general assembly from gifts or other available funds so long as approval for the expansion of projects is given by the governor on review by the commission for higher education and recommendation of the budget agency.
(2) (3) Each repair and rehabilitation project must be reviewed by
the commission for higher education and approved by the
governor, on recommendation of the budget agency, if:
(A) the cost of the project exceeds
five hundred thousand
dollars ($500,000) two million dollars ($2,000,000); and
if any part of the cost of the project is paid by state
appropriated funds or by mandatory student fees assessed all
If no part of the cost of the repair and rehabilitation project is paid by state appropriated funds or by mandatory student fees assessed all students, the review and approval requirements of this subdivision apply only if the project exceeds
one million dollars
($1,000,000). three million dollars ($3,000,000).
(3) (4) Each project to lease, other than a project to
lease-purchase, a building or facility must be reviewed by the
commission for higher education and approved by the governor,
on recommendation of the budget agency, if the annual cost of the
(A) two hundred fifty thousand dollars
(B) one hundred thousand dollars ($100,000) and the project:
(i) could involve plant expansion funding; or
(ii) would use repair and rehabilitation funds.
(b) The review and approval requirements of subsection (a)(1) or (a)(2) do not apply to a project to construct buildings or facilities or to purchase or lease-purchase land, buildings, or facilities if the project involves the expansion or improvement of housing for students undertaken entirely by a fraternity or sorority at the state educational institution.
any building facilities to be financed in whole or in part by the issuance of bonds under this chapter or by student building facilities fees charged and collected under this chapter, may not be made by a corporation without the specific approval of the budget agency and the governor.
(b) This section does not apply to any contract:
(1) relating to a facility the cost of which does not exceed
thousand dollars ($50,000); two hundred fifty thousand dollars
(2) for architectural or engineering services relating to the planning of a facility.
the general assembly to finance a qualified energy savings project (as
defined in IC 20-12-5.5) if:
(1) annual operating savings to a corporation arising from the implementation of a qualified energy savings project are reasonably expected to be at least equal to annual debt service requirements on bonds issued for this purpose in each fiscal year; and
(2) the amount of bonds that may be issued by each corporation, other than refunding bonds and exclusive of costs described in subsections (b) and (c), does not exceed
ten million dollars
($10,000,000). twenty million dollars ($20,000,000) for each
(A) has academic facilities; and
(B) includes a qualified energy savings project (as defined in IC 20-12-5.5-7).