SOURCE: Page 126, line 40; (11)MO100178.126. -->
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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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MO100178/DI 92 2011