Introduced Version






HOUSE BILL No. 1476

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DIGEST OF INTRODUCED BILL



Citations Affected: IC 8-14-16-5; IC 36-1-14-1.

Synopsis: Donations by local units to community foundations. Allows a unit of local government (unit) to donate money in the unit's local major moves construction fund to a charitable nonprofit community foundation. (Current law allows the proceeds from the sale of a utility or facility or from a grant, a gift, a donation, an endowment, a bequest, a trust, or riverboat gaming revenue to be donated.) Allows a donation by a unit to be held by a charitable nonprofit community foundation as either a permanent endowed designated fund or as a nonendowed designated fund. Requires a unit to specify whether a donation shall be held by the charitable nonprofit community foundation as a permanent endowed designated fund or as a nonendowed designated fund. Provides that if a unit specifies that a donation shall be held as a nonendowed designated fund, the unit has access to the donation and income at any time.

Effective: July 1, 2009.





Walorski




    January 14, 2009, read first time and referred to Committee on Commerce, Energy, Technology and Utilities.







Introduced

First Regular Session 116th General Assembly (2009)


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 2008 Regular Session of the General Assembly.

HOUSE BILL No. 1476



    A BILL FOR AN ACT to amend the Indiana Code concerning local government.

Be it enacted by the General Assembly of the State of Indiana:

SOURCE: IC 8-14-16-5; (09)IN1476.1.1. -->     SECTION 1. IC 8-14-16-5, AS AMENDED BY P.L.232-2007, SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2009]: Sec. 5. Money in the fund may be expended only for the following purposes:
        (1) Construction of highways, roads, and bridges.
        (2) In a county that is a member of the northwest Indiana regional development authority, or in a city or town located in such a county, any purpose for which the regional development authority may make expenditures under IC 36-7.5.
        (3) Providing funding for economic development projects (as defined in IC 6-3.5-7-13.1(c)(1) or IC 6-3.5-7-13.1(c)(2)(A) through IC 6-3.5-7-13.1(c)(2)(K)).
        (4) Matching federal grants for a purpose described in this section.
        (5) Providing funding for interlocal agreements under IC 36-1-7 for a purpose described in this section.
        (6) Providing the county's, city's, or town's contribution to a

regional development authority established under IC 36-7.6-2-3.
         (7) Making a donation to a charitable nonprofit community foundation under IC 36-1-14-1.

SOURCE: IC 36-1-14-1; (09)IN1476.1.2. -->     SECTION 2. IC 36-1-14-1, AS AMENDED BY P.L.2-2006, SECTION 190, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2009]: Sec. 1. (a) This section does not apply to donations of proceeds from riverboat gaming to a public school endowment corporation under IC 20-47-1-3.
    (b) As used in this section, "riverboat gaming revenue" means tax revenue received by a unit under IC 4-33-12-6, IC 4-33-13, or an agreement to share a city's or county's part of the tax revenue.
    (c) Notwithstanding IC 8-1.5-2-6(d), a unit may donate money deposited in the unit's local major moves construction fund under IC 8-14-16, the proceeds from the sale of a utility or facility, or the proceeds from a grant, a gift, a donation, an endowment, a bequest, a trust, or riverboat gaming revenue to a foundation under the following conditions:
        (1) The foundation is a charitable nonprofit community foundation.
        (2) The foundation retains all rights to the donation, including investment powers.
        (3) The foundation agrees to do the following:
            (A) Hold the donation as a permanent endowment endowed designated fund or as a nonendowed designated fund.
            (B) Distribute the income from the donation Except as provided in subsection (e), make distributions only to the unit as directed by resolution of the fiscal body of the unit.
            (C) Return the donation to the general fund of the unit if the foundation:
                (i) loses the foundation's status as a public charitable organization;
                (ii) is liquidated; or
                (iii) violates any condition of the endowment set by the fiscal body of the unit.
     (d) A unit shall, at the time the unit makes a donation to a charitable nonprofit community foundation under this section, specify whether the donation shall be held by the charitable nonprofit community foundation as a permanent endowed designated fund or as a nonendowed designated fund.
     (e) If a unit specifies under subsection (d) that the donation shall be held by the charitable nonprofit community foundation as a nonendowed designated fund, the unit is entitled at any time to a

return of all or any portion of the remaining donated proceeds or income derived from the donated proceeds.