SB 355-1_ Filed 01/19/2012, 11:26
Adopted 1/19/2012

COMMITTEE REPORT

MADAM PRESIDENT:

    The Senate Committee on Tax and Fiscal Policy, to which was referred Senate Bill No. 355, has had the same under consideration and begs leave to report the same back to the Senate with the recommendation that said bill be AMENDED as follows:

SOURCE: Page 1, line 4; (12)CR035501.1. -->     Page 1, line 4, after "a" reset in roman "political subdivision".
    Page 1, line 8, delete "civil taxing unit".
    Page 1, delete lines 10 through 12.
    Page 2, between lines 24 and 25, begin a new line block indented and insert:
        " (4) The state superintendent of public instruction or the superintendent's designee.
        (5) An individual appointed by the chairperson of the legislative council.
".
    Page 2, line 40, delete "civil taxing unit" and insert " political subdivision".
    Page 2, line 41, delete "civil taxing unit" and insert " political subdivision".
    Page 3, line 22, delete "civil taxing unit" and insert " political subdivision".
    Page 3, line 23, delete "civil taxing unit" and insert " political subdivision".
    Page 3, line 25, delete "civil taxing unit:" and insert " political subdivision:".
    Page 3, line 26, delete "civil taxing unit" and insert " political subdivision".
    Page 3, line 28, delete "civil taxing unit" and insert " political subdivision".
    Page 3, line 30, delete "civil taxing unit" and insert " political subdivision".
    Page 3, line 33, delete "civil taxing unit," and insert " political subdivision,".
    Page 3, line 39, delete "civil taxing unit's" and insert " political subdivision's".
    Page 3, line 41, delete "civil taxing unit" and insert " political subdivision".
    Page 3, line 42, delete "civil taxing unit's" and insert " political subdivision's".
    Page 4, line 6, delete "civil taxing unit" and insert " political subdivision".
    Page 4, line 8, delete "civil taxing unit's" and insert " political subdivision's".
    Page 4, line 11, delete "civil taxing unit" and insert " political subdivision".
    Page 4, between lines 13 and 14, begin a new line block indented and insert:
        " (8) As a result of granting the property tax credits under IC 6-1.1-20.6, the political subdivision has had to reduce its levy for all funds, except its debt service funds, by at least seventy-five percent (75%) regarding the year for which the latest certified levies have been determined. This percentage shall be computed as follows:
            (A) Compute the amount of credits granted under IC 6-1.1-20.6 against the political subdivision's combined levy for all of its funds.
            (B) Compute the political subdivision's combined levy for all of its funds, except debt service funds.
            (C) Divide the amount computed under clause (A) by the amount computed under clause (B) and express the amount as a percentage.

        (9) The political subdivision has had two (2) successive referenda fail that would have resulted in property taxes that

would not be considered for purposes of the credit for excessive property taxes under IC 6-1.1-20.6.
        (10) In the case of a school corporation, the school corporation has had two (2) successive general fund referenda fail.
The board may consider whether a political subdivision has fully exercised all the local options available to the political subdivision, such as a local option income tax or a local option income tax rate increase or, in the case of a school corporation, an operating referendum.
".
    Page 4, line 14, delete "civil taxing unit" and insert " political subdivision".
    Page 4, line 18, delete "civil taxing unit" and insert " political subdivision".
    Page 4, line 25, delete "civil taxing unit" and insert " political subdivision".
    Page 5, line 3, delete "civil taxing unit" and insert " political subdivision".
    Page 6, line 2, delete "civil taxing unit" and insert " political subdivision".
    Page 6, line 5, delete "civil taxing unit." and insert " political subdivision.".
    Page 6, line 7, delete "civil taxing unit" and insert " political subdivision".
    Page 6, line 8, delete "civil taxing unit" and insert " political subdivision".
    Page 6, line 10, delete "civil taxing unit's" and insert " political subdivision's".
    Page 6, line 11, delete "civil taxing unit's" and insert " political subdivision's".
    Page 6, line 13, delete "civil taxing unit." and insert " political subdivision.".
    Page 6, line 15, delete "civil taxing unit" and insert " political subdivision".
    Page 6, line 17, delete "civil taxing unit's" and insert " political subdivision's".
    Page 6, line 20, delete "civil taxing unit" and insert " political subdivision".


    Page 6, line 21, delete "civil taxing unit" and insert " political subdivision".
    Page 6, line 23, delete "civil taxing".
    Page 6, line 24, delete "unit" and insert " political subdivision".
    Page 6, line 33, delete "civil taxing unit" and insert " political subdivision".
    Page 6, line 34, delete "civil taxing unit's" and insert " political subdivision's".
    Page 6, line 37, delete "civil taxing unit." and insert " political subdivision.".
    Page 6, line 41, delete "civil taxing unit" and insert " political subdivision".
    Page 6, line 42, delete "civil taxing unit's" and insert " political subdivision's".
    Page 7, line 2, delete "civil taxing units" and insert " political subdivisions".
    Page 7, between lines 3 and 4, begin a new line block indented and insert:
        " (4) In the case of a school corporation, one (1) or more of the following:
            (A) Enter into a contract with the treasurer of state to provide a loan with interest from the counter-cyclical revenue and economic stabilization fund (IC 4-10-18) or the common school fund of the state (IC 20-49-3) on the terms determined by the emergency manager and the treasurer of state. The treasurer of state is authorized to make the loan to the extent money is available in the fund.
            (B) Authorize the use of unobligated reserves or other balances in a construction fund, sinking fund, bond fund, or debt service fund, to the extent permitted under the school corporation's agreements with the holders of any bonds, leases, or other obligations of the school corporation or a holding company for the school corporation.
            (C) Authorize fund to fund transfers from and to any statutory fund.
".
    Page 7, line 9, delete "civil taxing unit's" and insert " political subdivision's".
    Page 7, between lines 10 and 11, begin a new paragraph and insert:
SOURCE: IC 6-1.1-20.3-8.7; (12)CR035501.10. -->     "SECTION 10. IC 6-1.1-20.3-8.7 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 8.7. A school corporation that receives emergency financial relief may not do any of the following without the approval of the board during the period before the board terminates the school corporation's status as a distressed school corporation:
        (1) Acquire real property for school building purposes.
        (2) Construct new school buildings or remodel or renovate existing school buildings.
        (3) Incur a contractual obligation (except an employment contract for a new employee whose employment replaces the employment of a former employee) that requires an expenditure of more than ten thousand dollars ($10,000).
        (4) Purchase or enter into an agreement to purchase personal property at a cost of more than ten thousand dollars ($10,000).
        (5) Adopt or advertise a budget, tax levy, or tax rate for an ensuing budget year.
".
SOURCE: Page 7, line 13; (12)CR035501.7. -->     Page 7, line 13, reset in roman "distressed political".
    Page 7, line 14, reset in roman "subdivision".
    Page 7, line 14, delete "civil taxing unit".
    Page 7, line 25, delete "or".
    Page 7, line 26, delete "civil taxing" and insert " political subdivision".
    Page 7, line 27, delete "unit".
    Page 7, line 28, after "chapter;" insert " or".
    Page 7, between lines 28 and 29, begin a new line block indented and insert the following:
        " (3) a school corporation that has a new:
            (A) superintendent employed; or
            (B) member elected or appointed to its governing body;
        during the time a school corporation is a distressed political subdivision;
".
    Page 7, line 29, delete "civil taxing" and insert " political subdivision's".
    Page 7, line 32, delete "civil taxing unit's" and insert " political

subdivision's".
    Page 7, line 33, delete "civil taxing unit's" and insert " political subdivision's".
    Page 7, line 36, delete "civil taxing unit." and insert " political subdivision.".
    Page 7, line 40, delete "civil taxing unit's" and insert " political subdivision's".
    Page 8, line 1, delete "civil taxing" and insert " political subdivision's".
    Page 8, line 2, delete "unit's".
    Page 8, line 5, delete "civil taxing unit's" and insert " political subdivision's".
    Renumber all SECTIONS consecutively.
    (Reference is to SB 355 as introduced.)

and when so amended that said bill do pass.

Committee Vote: Yeas 8, Nays 1.

____________________________________

    Hershman
Chairperson


CR035501/DI 58    2012