Citations Affected: IC 4-12; IC 5-1; IC 6-1.1; IC 20-26; IC 20-27;
IC 20-40; IC 20-46; noncode.
January 4, 2012, read first time and referred to Committee on Appropriations.
January 26, 2012, amended, reported favorably _ Do Pass.
January 30, 2012, read second time, amended, ordered engrossed.
has had two successive general fund referenda fail. (3) The school corporation has been severely affected, as determined by the board, as a result of the granting of circuit breaker tax credits. Allows the board to authorize a loan to a distressed school corporation from the distressed school fund. Establishes the distressed school fund. Provides that a loan from the distressed school fund is subject to review by the state budget committee and approval by the budget agency. Provides that the budget agency may not make such a loan after December 31, 2015. Appropriates $10,000,000 from the state general fund to the distressed school fund. Provides that the amounts appropriated may be used by the budget agency only for the purposes of making loans authorized from the distressed school fund. Provides that a school corporation that carried out a general program in at least one school year beginning after June 30, 2010, to provide transportation to and from school for eligible students must carry out a program to provide transportation to and from school, unless the governing body of the school corporation: (1) approves the termination of the transportation program; and (2) provides public notice of the termination; at least three years before the date after which the transportation will no longer be provided. Allows the department of education to waive these requirements if the department determines that a transportation plan presented by the school corporation, with or without revisions required by the department: (1) will protect the safety of eligible students enrolled in the school corporation; and (2) is otherwise in accordance with applicable law. Provides that the department of local government finance may upon petition by a school corporation adjust the school corporation's levy for the school bus replacement fund to reflect the school corporation's school bus acquisition plan. Specifies that in addition to the amount that a school corporation may levy for a year under the school corporation's school bus replacement fund maximum levy, the school corporation may also levy an additional amount for 2013, 2014, and 2015 equal to a percentage of the pension neutrality line item, if any, for the school corporation's school bus replacement fund budget order for the 2011 budget year.
A BILL FOR AN ACT to amend the Indiana Code concerning
education and to make an appropriation.
completeness of the application;
(4) the budget agency determines that there is a need for the
loan;
(5) the budget agency determines that there is an adequate
method of repayment for the loan; and
(6) there is sufficient money in the fund to make the loan.
Sec. 14. The amount of a loan under this chapter may not exceed
the amount of the loan recommended by the board.
Sec. 15. The following apply to a loan under this chapter:
(1) Interest must be charged on the loan, but the rate of
interest on the loan may not exceed a rate equal to the prime
rate minus one percent (1%).
(2) A distressed school corporation may repay the loan in
equal installments over a term specified by the budget agency,
but not more than ten (10) years.
(3) The outstanding balance of the loan may be prepaid
without penalty.
Sec. 16. In establishing the terms of a loan under this chapter,
the budget agency shall consider the plan developed by the board
and the distressed school corporation to move the distressed school
corporation out of its distressed status.
Sec. 17. If a distressed school corporation fails to make a loan
repayment under this chapter when due, the treasurer of state and
the budget agency shall take appropriate action to collect the loan
repayment. However, the treasurer of state and the budget agency
may not impair the rights of the distressed school corporation's
bondholders.
Sec. 18. Money repaid on a loan under this chapter shall be
deposited in the fund.
(e) before January 1, 2016. If the amount determined under
subsection (c)(3) is:
(A) more than forty-five percent (45%), notwithstanding
IC 6-1.1-20-3.1(a) and IC 6-1.1-20-3.2(a), the school
corporation shall use the petition and remonstrance process
prescribed by IC 6-1.1-20-3.1(b) and IC 6-1.1-20-3.2(b) and
more individuals must sign the petition for the bond refunding
under this section than the number of individuals signing a
remonstrance against the bond refunding; or
(B) at least thirty percent (30%) but not more than forty-five
percent (45%), the school corporation shall conduct a
referendum on a public question regarding the bond refunding
using the process for a referendum tax levy under IC 20-46-1
and the bond refunding must be approved by the eligible
voters of the school corporation. The question to be submitted
to the voters in the referendum must read as follows:
"Shall ________ (insert the name of the school corporation)
issue refunding bonds to refund not more than fifty percent
(50%) of its outstanding bonds to provide an annual savings
to the school's debt service fund that can be transferred from
the school's debt service fund to the school's capital projects
fund, transportation fund, or school bus replacement fund?".
Except as provided in subdivision (2)(A), IC 6-1.1-20 does not apply
to bonds issued under this section.
(e) A school corporation that desires to be an eligible school
corporation under this section must, before July 1, 2013, and
notwithstanding any other law, adopt an ordinance that sets forth the
following:
(1) The determinations made under subsection (c).
(2) The requirements of this subdivision do not apply to an
ordinance adopted under this subdivision before January 1,
2016. The result of the petition remonstrance process under
subsection (d)(2)(A) or the result of the vote on the public
question under subsection (d)(2)(B), whichever applies.
(3) A determination providing for the:
(A) issuance of bonds to refund not more than fifty percent
(50%) of outstanding bonds or leases issued by or on behalf of
the school corporation; and
(B) payment of redemption premiums and the costs of the
refunding.
(4) With respect to the refunding bonds, the following:
(A) The maximum principal amount.
the county that is affected by the financial plan has adopted a resolution
agreeing to the terms of the financial plan.
(b) If the conditions of subsection (a) are satisfied, the board may,
notwithstanding IC 6-1.1-20.6, do any of the following:
(1) Increase the percentage thresholds (specified as a percentage
of gross assessed value) at which the credit under IC 6-1.1-20.6
applies to a person's property tax liability in the political
subdivision.
(2) Provide for percentage reductions to credits otherwise
provided under IC 6-1.1-20.6 in the political subdivision.
(3) Provide that some or all of the property taxes that:
(A) are being imposed to pay bonds, leases, or other debt
obligations; and
(B) would otherwise be included in the calculation of the
credit under IC 6-1.1-20.6 in the political subdivision;
shall not be included for purposes of calculating a person's credit
under IC 6-1.1-20.6.
(c) If the board provides relief described in subsection (b), the board
shall conduct audits and reviews as necessary to determine whether the
affected political subdivision is abiding by the terms of the financial
plan agreed to under subsection (a).
agency, board, or commission.
(2) To take charge of, manage, and conduct the educational affairs
of the school corporation and to establish, locate, and provide the
necessary schools, school libraries, other libraries where
permitted by law, other buildings, facilities, property, and
equipment.
(3) To appropriate from the school corporation's general fund an
amount, not to exceed the greater of three thousand dollars
($3,000) per budget year or one dollar ($1) per pupil, not to
exceed twelve thousand five hundred dollars ($12,500), based on
the school corporation's previous year's ADM, to promote the best
interests of the school corporation through:
(A) the purchase of meals, decorations, memorabilia, or
awards;
(B) provision for expenses incurred in interviewing job
applicants; or
(C) developing relations with other governmental units.
(4) To:
(A) Acquire, construct, erect, maintain, hold, and contract for
construction, erection, or maintenance of real estate, real estate
improvements, or an interest in real estate or real estate
improvements, as the governing body considers necessary for
school purposes, including buildings, parts of buildings,
additions to buildings, rooms, gymnasiums, auditoriums,
playgrounds, playing and athletic fields, facilities for physical
training, buildings for administrative, office, warehouse, repair
activities, or housing school owned buses, landscaping, walks,
drives, parking areas, roadways, easements and facilities for
power, sewer, water, roadway, access, storm and surface
water, drinking water, gas, electricity, other utilities and
similar purposes, by purchase, either outright for cash (or
under conditional sales or purchase money contracts providing
for a retention of a security interest by the seller until payment
is made or by notes where the contract, security retention, or
note is permitted by applicable law), by exchange, by gift, by
devise, by eminent domain, by lease with or without option to
purchase, or by lease under IC 20-47-2, IC 20-47-3, or
IC 20-47-5.
(B) Repair, remodel, remove, or demolish, or to contract for
the repair, remodeling, removal, or demolition of the real
estate, real estate improvements, or interest in the real estate
or real estate improvements, as the governing body considers
necessary for school purposes.
(C) Provide for conservation measures through utility
efficiency programs or under a guaranteed savings contract as
described in IC 36-1-12.5.
(5) To acquire personal property or an interest in personal
property as the governing body considers necessary for school
purposes, including buses, motor vehicles, equipment, apparatus,
appliances, books, furniture, and supplies, either by cash purchase
or under conditional sales or purchase money contracts providing
for a security interest by the seller until payment is made or by
notes where the contract, security, retention, or note is permitted
by applicable law, by gift, by devise, by loan, or by lease with or
without option to purchase and to repair, remodel, remove,
relocate, and demolish the personal property. All purchases and
contracts specified under the powers authorized under subdivision
(4) and this subdivision are subject solely to applicable law
relating to purchases and contracting by municipal corporations
in general and to the supervisory control of state agencies as
provided in section 6 of this chapter.
(6) To sell or exchange real or personal property or interest in real
or personal property that, in the opinion of the governing body, is
not necessary for school purposes, in accordance with IC 20-26-7,
to demolish or otherwise dispose of the property if, in the opinion
of the governing body, the property is not necessary for school
purposes and is worthless, and to pay the expenses for the
demolition or disposition.
(7) To lease any school property for a rental that the governing
body considers reasonable or to permit the free use of school
property for:
(A) civic or public purposes; or
(B) the operation of a school age child care program for
children who are at least five (5) years of age and less than
fifteen (15) years of age that operates before or after the school
day, or both, and during periods when school is not in session;
if the property is not needed for school purposes. Under this
subdivision, the governing body may enter into a long term lease
with a nonprofit corporation, community service organization, or
other governmental entity, if the corporation, organization, or
other governmental entity will use the property to be leased for
civic or public purposes or for a school age child care program.
However, if payment for the property subject to a long term lease
is made from money in the school corporation's debt service fund,
all proceeds from the long term lease must be deposited in the
school corporation's debt service fund so long as payment for the
property has not been made. The governing body may, at the
governing body's option, use the procedure specified in
IC 36-1-11-10 in leasing property under this subdivision.
(8) To:
(A) Employ, contract for, and discharge superintendents,
supervisors, principals, teachers, librarians, athletic coaches
(whether or not they are otherwise employed by the school
corporation and whether or not they are licensed under
IC 20-28-5), business managers, superintendents of buildings
and grounds, janitors, engineers, architects, physicians,
dentists, nurses, accountants, teacher aides performing
noninstructional duties, educational and other professional
consultants, data processing and computer service for school
purposes, including the making of schedules, the keeping and
analyzing of grades and other student data, the keeping and
preparing of warrants, payroll, and similar data where
approved by the state board of accounts as provided below,
and other personnel or services as the governing body
considers necessary for school purposes.
(B) Fix and pay the salaries and compensation of persons and
services described in this subdivision that are consistent with
IC 20-28-9-1.
(C) Classify persons or services described in this subdivision
and to adopt schedules of salaries or compensation that are
consistent with IC 20-28-9-1.
(D) Determine the number of the persons or the amount of the
services employed or contracted for as provided in this
subdivision.
(E) Determine the nature and extent of the duties of the
persons described in this subdivision.
The compensation, terms of employment, and discharge of
teachers are, however, subject to and governed by the laws
relating to employment, contracting, compensation, and discharge
of teachers. The compensation, terms of employment, and
discharge of bus drivers are subject to and governed by laws
relating to employment, contracting, compensation, and discharge
of bus drivers. The forms and procedures relating to the use of
computer and data processing equipment in handling the financial
affairs of the school corporation must be submitted to the state
board of accounts for approval so that the services are used by the
school corporation when the governing body determines that it is
in the best interest of the school corporation while at the same
time providing reasonable accountability for the funds expended.
(9) Notwithstanding the appropriation limitation in subdivision
(3), when the governing body by resolution considers a trip by an
employee of the school corporation or by a member of the
governing body to be in the interest of the school corporation,
including attending meetings, conferences, or examining
equipment, buildings, and installation in other areas, to permit the
employee to be absent in connection with the trip without any loss
in pay and to reimburse the employee or the member the
employee's or member's reasonable lodging and meal expenses
and necessary transportation expenses. To pay teaching personnel
for time spent in sponsoring and working with school related trips
or activities.
(10) Subject to IC 20-27-13, to transport children to and from
school, when in the opinion of the governing body the
transportation is necessary, including considerations for the safety
of the children and without regard to the distance the children live
from the school. The transportation must be otherwise in
accordance with applicable law.
(11) To provide a lunch program for a part or all of the students
attending the schools of the school corporation, including the
establishment of kitchens, kitchen facilities, kitchen equipment,
lunch rooms, the hiring of the necessary personnel to operate the
lunch program, and the purchase of material and supplies for the
lunch program, charging students for the operational costs of the
lunch program, fixing the price per meal or per food item. To
operate the lunch program as an extracurricular activity, subject
to the supervision of the governing body. To participate in a
surplus commodity or lunch aid program.
(12) To purchase textbooks, to furnish textbooks without cost or
to rent textbooks to students, to participate in a textbook aid
program, all in accordance with applicable law.
(13) To accept students transferred from other school corporations
and to transfer students to other school corporations in accordance
with applicable law.
(14) To make budgets, to appropriate funds, and to disburse the
money of the school corporation in accordance with applicable
law. To borrow money against current tax collections and
otherwise to borrow money, in accordance with IC 20-48-1.
(15) To purchase insurance or to establish and maintain a
program of self-insurance relating to the liability of the school
corporation or the school corporation's employees in connection
with motor vehicles or property and for additional coverage to the
extent permitted and in accordance with IC 34-13-3-20. To
purchase additional insurance or to establish and maintain a
program of self-insurance protecting the school corporation and
members of the governing body, employees, contractors, or agents
of the school corporation from liability, risk, accident, or loss
related to school property, school contract, school or school
related activity, including the purchase of insurance or the
establishment and maintenance of a self-insurance program
protecting persons described in this subdivision against false
imprisonment, false arrest, libel, or slander for acts committed in
the course of the persons' employment, protecting the school
corporation for fire and extended coverage and other casualty
risks to the extent of replacement cost, loss of use, and other
insurable risks relating to property owned, leased, or held by the
school corporation. In accordance with IC 20-26-17, to:
(A) participate in a state employee health plan under
IC 5-10-8-6.6 or IC 5-10-8-6.7;
(B) purchase insurance; or
(C) establish and maintain a program of self-insurance;
to benefit school corporation employees, including accident,
sickness, health, or dental coverage, provided that a plan of
self-insurance must include an aggregate stop-loss provision.
(16) To make all applications, to enter into all contracts, and to
sign all documents necessary for the receipt of aid, money, or
property from the state, the federal government, or from any other
source.
(17) To defend a member of the governing body or any employee
of the school corporation in any suit arising out of the
performance of the member's or employee's duties for or
employment with, the school corporation, if the governing body
by resolution determined that the action was taken in good faith.
To save any member or employee harmless from any liability,
cost, or damage in connection with the performance, including the
payment of legal fees, except where the liability, cost, or damage
is predicated on or arises out of the bad faith of the member or
employee, or is a claim or judgment based on the member's or
employee's malfeasance in office or employment.
(18) To prepare, make, enforce, amend, or repeal rules,
regulations, and procedures:
corporation described in section 2 of this chapter shall carry out a
program to provide transportation to and from school for all
eligible students in any part of a school year beginning after June
30, 2012, unless the governing body of the school corporation:
(1) approves the termination of the transportation program;
and
(2) provides public notice of the date after which the
transportation will no longer be provided under the
transportation program;
at least three (3) years before the date after which the
transportation will no longer be provided under the transportation
program.
Sec. 4. Transportation provided in a transportation program
required under section 3 of this chapter may be limited by the
school corporation's governing body to children residing a
minimum distance from a school if the governing body includes
facts in the resolution setting the minimum distance that
demonstrate that each child residing less than the minimum
distance for the school can safely walk to and from the school
unattended by an adult during the regular hours that the child
would ordinarily be coming to or from the school.
Sec. 5. Transportation provided under a transportation
program required under section 3 of this chapter may be limited
by the school corporation's governing body to providing
transportation to school immediately before the beginning of an
instructional day (described in IC 20-30-2-2) and from school
immediately after the end of an instructional day (described in
IC 20-30-2-2) without additional accommodations for participation
in extracurricular activities.
Sec. 6. Transportation provided under a transportation
program required under section 3 of this chapter must be
otherwise in accordance with applicable law.
Sec. 7. (a) A school corporation may petition the department in
writing to waive the requirement imposed by section 3 of this
chapter.
(b) A petition under subsection (a) must:
(1) demonstrate that the waiver request was approved by the
governing body for the school corporation;
(2) describe the transportation services that will be provided
to students who are required by federal or state law to receive
transportation services to and from school;
(3) present a written plan that provides for the safe movement
of eligible students to and from school; and
(4) include any other information required by the department.
Sec. 8. If a petition complies with section 7 of this chapter, the
department shall conduct a public hearing on the petition in the
district served by the school corporation after giving notice of the
public hearing under IC 5-3-1.
Sec. 9. If, based on the information contained in the petition and
provided in the public hearing or otherwise made available to the
department, the department determines that the plan presented by
the school corporation, with or without revisions required by the
department:
(1) will protect the safety of eligible students enrolled in the
school corporation; and
(2) is otherwise in accordance with applicable law;
the department may waive the requirements imposed by section 3
of this chapter.
Sec. 10. The department may condition a waiver under section
9 of this chapter on the terms and conditions specified by the
department. If a school corporation fails to comply with a term or
condition of a waiver or the department discovers facts that
indicate that the school corporation's plan:
(1) is not protecting the safety of eligible students enrolled in
the school corporation; or
(2) is not otherwise in accordance with applicable law;
the department may issue an order under IC 4-21.5-3 or an
emergency or temporary order under IC 4-21.5-4 specifying the
actions that must be taken by the school corporation to correct the
deficiency. The order may suspend or terminate the waiver
granted under section 9 of this chapter beginning on the date
specified by the department.
or amended under this chapter.
(c) In addition to the amount that a school corporation may levy
for a year under the school corporation's maximum permissible
levy determined under subsection (a), the school corporation may
also levy an amount equal to the following:
(1) For property taxes first due and payable in 2013, an
amount equal to:
(A) seventy-five percent (75%); multiplied by
(B) the amount of the pension neutrality line item, if any,
for the school corporation's school bus replacement fund
budget order for the 2011 budget year.
(2) For property taxes first due and payable in 2014, an
amount equal to:
(A) fifty percent (50%); multiplied by
(B) the amount of the pension neutrality line item, if any,
for the school corporation's school bus replacement fund
budget order for the 2011 budget year.
(3) For property taxes first due and payable in 2015, an
amount equal to:
(A) twenty-five percent (25%); multiplied by
(B) the amount of the pension neutrality line item, if any,
for the school corporation's school bus replacement fund
budget order for the 2011 budget year.
Any additional amounts that may be levied or are levied by a
school corporation under this subsection for a year shall not be
considered for purposes of determining the school corporation's
maximum permissible levy under subsection (a) for the following
year. This subsection expires January 1, 2017.