January 21, 2000
HOUSE BILL No. 1157
_____
DIGEST OF HB 1157
(Updated January 20, 2000 12:23 PM - DI 58)
Citations Affected: IC 20-5; IC 36-1.
Synopsis: Riverboat revenues for endowments and foundations.
Allows a political subdivision to donate proceeds from riverboat
gaming to public school endowment corporations that meet certain
conditions. Permits a local unit of government to donate riverboat
gaming revenue to a charitable nonprofit community foundation under
certain conditions.
Effective: July 1, 2000.
Bischoff
January 10, 2000, read first time and referred to Committee on Ways and Means.
January 20, 2000, amended, reported _ Do Pass.
January 21, 2000
Second Regular Session 111th General Assembly (2000)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in
this style type, and deletions will appear in
this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in
this style type. Also, the
word
NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in
this style type or
this style type reconciles conflicts
between statutes enacted by the 1999 General Assembly.
HOUSE BILL No. 1157
A BILL FOR AN ACT to amend the Indiana Code concerning local
government.
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 20-5-6-9; (00)HB1157.1.1. -->
SECTION 1. IC 20-5-6-9 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2000]: Sec. 9. (a) As used in this section, "public school
endowment corporation" means a corporation that is:
(1) organized under the Indiana Nonprofit Corporation Act
of 1991 (IC 23-17);
(2) organized exclusively for educational, charitable, and
scientific purposes; and
(3) formed for the purpose of providing educational resources
to:
(A) a particular school corporation or school corporations;
or
(B) the schools in a particular geographic area.
(b) As used in this section, "proceeds from riverboat gaming"
means tax revenue received by a political subdivision under
IC 4-33-12-6, IC 4-33-13, or an agreement to share a city's or
county's part of the tax revenue.
(c) As used in this section, "political subdivision" has the
meaning set forth in IC 36-1-2-13.
(d) A political subdivision may donate proceeds from riverboat
gaming to a public school endowment corporation under the
following conditions:
(1) The public school endowment corporation retains all
rights to the donation, including investment powers.
(2) The public school endowment corporation agrees to return
the donation to the political subdivision if the corporation:
(A) loses the corporation's status as a public charitable
organization;
(B) is liquidated; or
(C) violates any condition of the endowment set by the
fiscal body of the political subdivision.
(e) A public school endowment corporation may distribute both
principal and income.
SOURCE: IC 36-1-14-1; (00)HB1157.1.2. -->
SECTION 2. IC 36-1-14-1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2000]: Sec. 1. (a) This section
does not apply to donations of proceeds from riverboat gaming to
a public school endowment corporation under IC 20-5-6-9.
(b) As used in this section, "riverboat gaming revenue" means
tax revenue received by a unit under IC 4-33-12-6, IC 4-33-13, or
an agreement to share a city's or county's part of the tax revenue.
(c) Notwithstanding IC 8-1.5-2-6(d), a unit may donate the proceeds
from the sale of a utility or facility or from a grant, a gift, a donation,
an endowment, a bequest, or a trust, or riverboat gaming revenue to
a foundation under the following conditions:
(1) The foundation is a charitable nonprofit community
foundation.
(2) The foundation retains all rights to the donation, including
investment powers.
(3) The foundation agrees to do the following:
(A) Hold the donation as a permanent endowment.
(B) Distribute the income from the donation only to the unit as
directed by resolution of the fiscal body of the unit.
(C) Return the donation to the general fund of the unit if the
foundation:
(i) loses the foundation's status as a public charitable
organization;
(ii) is liquidated; or
(iii) violates any condition of the endowment set by the
fiscal body of the unit.
SOURCE: ; (00)HB1157.1.3. -->
SECTION 3. [EFFECTIVE JULY 1, 2000]
(a) The definitions set
forth in
IC 20-5-6-9
, as added by this act, apply throughout this
SECTION.
(b) A donation of proceeds of riverboat gaming to a public
school endowment corporation that:
(1) was made by a political subdivision before July 1, 2000;
and
(2) would have been permitted by
IC 20-5-6-9
, as added by
this act, if
IC 20-5-6-9
had been in effect before July 1, 2000;
is legalized and validated.