HOUSE BILL No. 1110
DIGEST OF INTRODUCED BILL
Citations Affected: IC 20-40.
Synopsis: Flexibility in use of school funds. Extends the authority for
a school corporation to use money in its capital projects fund to pay the
costs of insurance and utilities through 2014. Permits a school
corporation to transfer money to a fund from any other fund, except a
school bus replacement fund or a debt service fund, for two years.
Effective: July 1, 2013.
January 8, 2013, read first time and referred to Committee on Education.
First Regular Session 118th General Assembly (2013)
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HOUSE BILL No. 1110
A BILL FOR AN ACT to amend the Indiana Code concerning
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 20-40-8-19; (13)IN1110.1.1. -->
SECTION 1. IC 20-40-8-19, AS AMENDED BY P.L.48-2011,
SECTION 35, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2013]: Sec. 19. Money in the fund may be used before January
2014, 2015, to pay for up to one hundred percent (100%) of the
following costs of a school corporation:
(1) Utility services.
(2) Property or casualty insurance.
(3) Both utility services and property or casualty insurance.
A school corporation's expenditures under this section may not in a
calendar year exceed three and five-tenths percent (3.5%) of the school
corporation's 2005 calendar year distribution.
SOURCE: IC 20-40-18; (13)IN1110.1.2. -->
SECTION 2. IC 20-40-18 IS ADDED TO THE INDIANA CODE
AS A NEW
CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2013]:
Chapter 18. Transfer of Money Between Funds
Sec. 1. This chapter supplements authority granted by other law
to transfer money from one (1) fund to another fund.
Sec. 2. Notwithstanding any other law, the governing body of a
school corporation may transfer money to any fund of the school
corporation from any other fund of the school corporation, except
a school bus replacement fund or a debt service fund, in conformity
with this chapter.
Sec. 3. Authorization to make a transfer under this chapter must
be adopted in a resolution that is approved by the governing body
at a regular public meeting. The resolution must generally describe
the purposes for which the transferred money will be used and
must include the findings described in section 4 of this chapter.
Sec. 4. Before authorizing a transfer of money under this
chapter, the governing body must determine, in the affirmative,
(1) the amount that the governing body proposes to transfer
is not currently needed to meet the obligations of the fund
from which the money is being transferred;
(2) the transfer does not violate any federal law or regulation
or the terms of any agreement related to a lease or bonds; and
(3) the transfer is necessary.
Sec. 5. A transfer under this chapter results in a reduction in the
amount available from the fund from which the money is
transferred. A school corporation may not:
(1) increase its property tax levy to make up for the reduction;
(2) borrow money to replace the amount of money transferred
to another fund.
Sec. 6. Subject to this chapter, money transferred under this
chapter may be used for any of the purposes of the fund to which
it is transferred.
Sec. 7. A transfer under this chapter does not authorize the
expenditure of more money from a fund than the total amount set
out in the budget of the school corporation, as amended by any
supplemental appropriation made in conformity with
Sec. 8. A transfer under this chapter may not be the subject of
bargaining or discussion under IC 20-29. A school corporation may
not use money transferred under this chapter for increases in
school employee salaries and benefits.
Sec. 9. This chapter expires July 1, 2015.