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    PREVAILED      Roll Call No. _______
    FAILED        Ayes _______
    WITHDRAWN        Noes _______
    RULED OUT OF ORDER


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HOUSE MOTION ____

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MR. SPEAKER:

    I move that House Bill 1001 be amended to read as follows:

SOURCE: Page 126, line 40; (11)MO100178.126. -->     Page 126, between lines 40 and 41, begin a new paragraph and insert:
SOURCE: IC 20-49-8.3; (11)MO100178.81. -->     "SECTION 81. IC 20-49-8.3 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]:
    Chapter 8.3. Shortfall Loan
    Sec. 1. As used in this chapter, "fund" refers to the common school fund in the custody of the treasurer of state.
    Sec. 2. As used in this chapter, "loan" means a loan made from the fund under this chapter.
    Sec. 3. (a) Subject to subsection (b), the state board may loan money to a school corporation that has experienced a shortfall of at least five percent (5%) in the collection of property tax levies in the current year or the preceding years for the school corporation's general fund or another school corporation fund
as a result of any of the following:
        (1) Erroneous assessed valuation amounts provided to the eligible school corporation.
        (2) Erroneous figures used to determine the eligible school corporation's general fund property tax rate.
        (3) A change in the assessed valuation of property as the result of appeals under IC 6-1.1 or IC 6-1.5.
        (4) The payment of refunds that resulted from appeals under IC 6-1.1 or IC 6-1.5.
        (5) Any other reason.
    (b) As required under IC 6-1.1-20.6-9.5, a school corporation may not borrow money to compensate the school corporation for the reduction of property tax collections resulting from the granting of credits under IC 6-1.1-20.6.
    Sec. 4. A school corporation that desires to obtain a loan must submit an application to the state board on forms that the state board prescribes after consulting with the department and the budget agency.
    Sec. 5. (a) Subject to subsection (c), the state board shall determine the terms of a loan after consulting with the department. The budget agency must approve the terms of a loan before the loan is made.
    (b) The state board may grant more than one (1) loan to the same school corporation under this chapter or provide for a line of credit payable from the fund that may be accessed each time that a default occurs over the term specified by the state board upon the notice to the department, budget agency, or state board as specified in the terms of the loan.
    (c) A school corporation receiving a loan shall repay a distribution from the loan not later than thirty-six (36) months after the date on which money from the loan is distributed to the school corporation.
    Sec. 6. A school corporation that obtains a loan may annually levy a tax in the debt service fund to repay the loan.
    Sec. 7. This chapter may not be construed to prohibit a school corporation from repaying a loan before the date specified in section 5(c) of this chapter.
".
    Renumber all SECTIONS consecutively.
    (Reference is to HB 1001 as printed February 21, 2011.)

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Representative Kersey


MO100178/DI 92     2011