MR. PRESIDENT:

    The Senate Committee on Education, to which was referred House Bill No. 1315, 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 2, line 2; (02)CR131502.2. -->     Page 2, line 2, after "is" insert " :
             (A) sponsored by the executive of a consolidated city; or
            (B) located in a county containing a consolidated city and for which the executive of the consolidated city requests financing.".
    Page 2, delete line 3.
    Page 2, between lines 5 and 6, begin a new paragraph and insert:
SOURCE: IC 5-1.5-1-8; (02)CR131502.2. -->     "SECTION 2. IC 5-1.5-1-8 , AS AMENDED BY P.L.132-1999, SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 8. "Qualified entity" means:
        (1) a political subdivision (as defined in IC 36-1-2-13 );
        (2) a state educational institution (as defined in IC 20-12-0.5-1 (b));
        (3) a leasing body (as defined in IC 5-1-1-1 (a));
        (4) a not-for-profit utility (as defined in IC 8-1-2-125 );
        (5) any rural electric membership corporation organized under IC 8-1-13 ;
        (6) any corporation that was organized in 1963 under Acts 1935, c. 157 and that engages in the generation and transmission of electric energy;
        (7) any telephone cooperative corporation formed under IC 8-1-17 ;

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        (8) any commission, authority, or authorized body of any qualified entity;
        (9) any organization, association, or trust with members, participants, or beneficiaries that are all individually qualified entities;
        (10) any commission, authority, or instrumentality of the state; or
        (11) a charter school established under IC 20-5.5 to which IC 5-1.4-1-10 (6) does not apply; or
        (12) any other participant (as defined in IC 13-11-2-151.1 ).
SOURCE: ; (02)CR131502.3. -->     SECTION 3. [EFFECTIVE UPON PASSAGE] (a) As used in this SECTION, the following terms have the following meanings:
        (1) "Board" refers to the Indiana state board of education established under IC 20-1-1-1.
        (2) "Charter school" means an entity established under IC 20-5.5.
        (3) "Fund" refers to the common school fund established under IC 21-1-1-1.
    (b) The board may advance money from the fund to a charter school. A charter school may submit an application, in a form approved by the board, to receive an advance under this SECTION.
    (c) After approving an advance to a charter school under this SECTION, the board shall pay the money to the charter school under the following schedule:
        (1) For an advance made in 2002:
            (A) fifty percent (50%) of the total advance by July 15, 2002; and
            (B) the remainder by October 15, 2002.
        (2) For an advance made in 2003:
            (A) fifty percent (50%) of the total advance by July 15, 2003; and
            (B) the remainder by October 15, 2003.
    (d) Money advanced to a charter school under this SECTION may be advanced for a period not exceeding ten (10) years, and the charter school shall pay interest at an annual rate of one percent (1%) for the advance. The charter school is not required to begin repaying an advance made under this SECTION, and interest on the money advanced does not begin to accrue, until two

(2) years after receiving the advance.
    (e) The board may advance not more than ten percent (10%) of the total amount available for advances from the fund:
        (1) in 2002; and
        (2) in 2003;
to charter schools under this SECTION.
    (f) In making advances from the fund for other purposes in 2002 and 2003, the board shall ensure that money is available in the fund for advances to charter schools under this SECTION.
    (g) This SECTION expires January 1, 2004.".
    Renumber all SECTIONS consecutively.
    (Reference is to HB 1315 as reprinted February 5, 2002.)

and when so amended that said bill do pass.

Committee Vote: Yeas 5, Nays 2.

    Lubbers

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