February 8, 2008





ENGROSSED

HOUSE BILL No. 1051

_____


DIGEST OF HB 1051 (Updated February 6, 2008 2:56 pm - DI 71)



Citations Affected: IC 20-47.

Synopsis: School corporation donations to foundations. Permits a school corporation to annually donate not more than $25,000 to a community foundation if the donation is matched by a private donor. (Current law permits school corporations to make matched donations only to public school endowment corporations.)

Effective: July 1, 2008.





Crooks , Porter , Harris T , Cheatham
(SENATE SPONSORS _ LUBBERS, HUME)




    January 8, 2008, read first time and referred to Committee on Education.
    January 24, 2008, reported _ Do Pass.
    January 28, 2008, read second time, ordered engrossed. Engrossed.
    January 29, 2008, read third time, passed. Yeas 94, nays 0.

SENATE ACTION

    January 29, 2008, read first time and referred to Committee on Education and Career Development.
    February 7, 2008, reported favorably _ Do Pass.






February 8, 2008

Second Regular Session 115th General Assembly (2008)


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 this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts between statutes enacted by the 2007 Regular Session of the General Assembly.


ENGROSSED

HOUSE BILL No. 1051



    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:

SOURCE: IC 20-47-1-2.5; (08)EH1051.1.1. -->     SECTION 1. IC 20-47-1-2.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2008]: Sec. 2.5. As used in this chapter, "qualified foundation" means:
        (1) a nonprofit charitable community foundation; or
        (2) a public school endowment corporation.

SOURCE: IC 20-47-1-6; (08)EH1051.1.2. -->     SECTION 2. IC 20-47-1-6, AS ADDED BY P.L.45-2007, SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2008]: Sec. 6. (a) The governing body of a school corporation may annually donate an amount not to exceed twenty-five thousand dollars ($25,000) from the general fund of the school corporation to a public school endowment corporation qualified foundation under the following conditions:
        (1) For every dollar that the school corporation donates to the public school endowment corporation, qualified foundation, a private individual or entity must donate at least one dollar ($1) to the public school endowment corporation: qualified foundation:
            (A) for the benefit of the school corporation; and
            (B) for the purposes designated by the school corporation for the school corporation's donation.
        (2) The public school endowment corporation qualified foundation retains all rights to the donation, including investment powers, except as provided in subdivision (3).
        (3) The public school endowment corporation qualified foundation agrees to do the following:
            (A) Distribute the principal and income from the donation only to the school corporation as directed by resolution of the governing body of the school corporation.
            (B) Return the donation to the general fund of the school corporation if the public school endowment corporation: qualified foundation:
                (i) ceases to operate as a public school endowment corporation; qualified foundation;
                (ii) is liquidated; or
                (iii) violates any condition of the endowment set by the governing body of the school corporation.
            (C) Open the books of the public school endowment corporation qualified foundation for examination at the request of the state board of accounts to the extent necessary for the state board of accounts to determine the manner in which the school corporation's donation and any matching donations have been held or distributed.
    (b) A school corporation may use distributions from a public school endowment corporation qualified foundation received under a resolution referred to in subsection (a)(3)(A) only for programs and activities that:
        (1) enhance the quality of education; or
        (2) extend learning opportunities;
for students of the school corporation.
    (c) This section expires June 30, 2012.