Introduced Version
HOUSE BILL No. 1746
_____
DIGEST OF INTRODUCED BILL
Citations Affected:
IC 20-3-11-22
; IC 20-5;
IC 21-4-20.
Synopsis: Tax anticipation warrants. Eliminates a cross reference to
a repealed provision. Allows a school corporation to issue tax
anticipation warrants that exceed 80% of the anticipated tax and tuition
support distributions receivable from the June settlement from the
county auditor if the amount of the warrants does not exceed the total
receivable for the entire year. Repeals a provision that grants
substantially similar anticipation loan authority specifically to school
towns and school cities.
Effective: Upon passage.
Scholer
January 21, 2003, read first time and referred to Committee on Ways and Means.
Introduced
First Regular Session 113th General Assembly (2003)
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HOUSE BILL No. 1746
A BILL FOR AN ACT to amend the Indiana Code concerning
education finance.
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 20-3-11-22; (03)IN1746.1.1. -->
SECTION 1.
IC 20-3-11-22
, AS AMENDED BY P.L.2-2002,
SECTION 70, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 22. (a) The board of school commissioners
may not create any debt in excess of twenty-five thousand dollars
($25,000) in the aggregate, except as otherwise provided in this
chapter, and except further debts as are on or after March 9, 1931,
authorized by the general school laws of Indiana, including within the
latter exception, but not by way of limitation, IC 21-4-20 and
IC 20-5-1
through
IC 20-5-6.
(b) Notwithstanding the provisions of subsection (a), the board is
liable upon its lawful contracts with persons rendering services and
furnishing materials incident to the ordinary current operations of its
schools if the contracts have been entered into as provided in this
chapter and in accordance with law. The obligations of the board to
persons rendering services or furnishing materials may not be
considered to be limited or prohibited by any of the provisions of this
chapter.
(c) If the compensation to be paid for the purchase of any real estate
or interest in real estate required by the board for its purposes cannot
be agreed upon or determined by the board and the persons owning or
having an interest in the land desired for its purposes or sites, the board
of school commissioners has the power of eminent domain and shall
proceed to have the compensation determined and to acquire the title
to the real estate or interest in the real estate by action in court under
IC 32-24. The right and power of the board to own and acquire real
estate and interests in real estate in any of the manners and for any of
the purposes specified in this chapter or by the general school laws of
this state may not be limited to real estate situated within the corporate
boundaries of the civil city in which any school city is located.
However, the right and power to acquire and own real estate extends to
any parcel or trace of real estate the whole of which is situated:
(1) within one-half (1/2) mile of the nearest point on the corporate
boundary of the civil city; or
(2) within, or within one-half (1/2) mile of the nearest point on the
boundary of, any platted territory lying outside but contiguous to,
or contiguous to another platted territory that is contiguous to, the
corporate boundary of the civil city.
(d) "Platted territory", as used in subsection (c), means any territory
or land area of which a plat has been recorded in the manner provided
by the laws of Indiana pertaining to the recording of plats of land.
(e) Before acquiring any real estate or interest in real estate outside
the corporate limits of the civil city, the board must, by resolution made
a matter of record in its corporate minutes, find and determine that, in
the judgment of the board, the real estate or interest in real estate to be
acquired will be needed for the future purposes of the board. This
chapter does not limit the right of any board to accept, own, and hold
real estate or interest in real estate, wherever situated, that is acquired
by the board by gift or devise.
SOURCE: IC 20-5-1-3; (03)IN1746.1.2. -->
SECTION 2.
IC 20-5-1-3
IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 3. As used in
IC 20-5-1
through
IC 20-5-6
, the following terms shall have the following meanings:
(a) "School corporation": shall mean
(1) for the purposes of a provision other than
IC 20-5-4-8
,
means any local public school corporation established under the
laws of the state of Indiana, including but not limited to school
cities, school towns, metropolitan school districts, consolidated
school corporations, county school corporations, community
school corporations, and united school corporations, excluding,
however, school townships; and
(2) for the purposes of
IC 20-5-4-8
, means a local public
school corporation described in subdivision (1) or a school
township.
(b) "Governing body" shall mean the board of commissioners
charged by law with the responsibility of administering the affairs of a
school corporation, including but not limited to a board of school
commissioners, metropolitan board of education, board of school
trustees, or board of trustees, and "member" shall mean a member of
such governing body.
(c) "School purposes" shall mean the general purposes and powers
provided in
IC 20-5-2-1.2
and
IC 20-5-2-2.
However, the delineation
of a specific power in
IC 20-5-2-2
shall not be construed as a limitation
on the general powers and purposes set out in
IC 20-5-2-1.2.
SOURCE: IC 20-5-4-8; (03)IN1746.1.3. -->
SECTION 3.
IC 20-5-4-8
IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 8. (a) Whenever the governing
board of a school corporation finds and declares that an emergency
exists for the borrowing of money with which to pay current expenses
from a particular fund before the receipt of revenues from taxes levied
or state tuition support distributions for such fund, the governing board
may issue warrants in anticipation of the receipt of said revenues.
(b) The principal of these warrants shall be payable solely from the
fund for which the taxes are levied or from the general fund in the case
of anticipated state tuition support distributions. However, the interest
on these warrants may be paid from the debt service fund, from the
fund for which the taxes are levied, or the general fund in the case of
anticipated state tuition support distributions.
(c)
Warrants issued under this section are payable not later than
December 31 in the year in which they are issued. The amount of
principal of temporary loans maturing on or before June 30 for any
fund the warrants issued shall not exceed eighty percent (80%) of the
amount of taxes and state tuition support distributions estimated to be
collected or received
in that year for
and distributed distribution to
the fund
at the June settlement. from which the warrants are to be
repaid.
(d) The amount of principal of temporary loans maturing after June
30, and on or before December 31, shall not exceed eighty percent
(80%) of the amount of taxes and state tuition support distributions
estimated to be collected or received for and distributed to the fund at
the December settlement.
(e) At each settlement, (d) The amount of taxes and state tuition
support distributions estimated to be collected or received for and
distributed to the fund includes any allocations to the fund from the
property tax replacement fund under
IC 6-1.1-21-10.
(f) (e) The estimated amount of taxes and state tuition support
distributions to be collected or received and distributed shall be made
by the county auditor or the auditor's deputy. The warrants evidencing
any loan in anticipation of tax revenue or state tuition support
distributions shall not be delivered to the purchaser of the warrant nor
payment made on the warrant before January 1 of the year the loan is
to be repaid. However, the proceedings necessary to the loan may be
held and carried out before January 1 and before the approval. The loan
may be made even though a part of the last preceding June or
December settlement has not yet been received.
(g) (f) Proceedings for the issuance and sale of warrants for more
than one (1) fund may be combined, but separate warrants for each
fund shall be issued and each warrant shall state on its face the fund
from which its principal is payable. No action to contest the validity of
such warrants shall be brought later than fifteen (15) days from the first
publication of notice of sale.
(h) (g) No issue of tax or state tuition support anticipation warrants
shall be made if the aggregate of all these warrants exceed twenty
thousand dollars ($20,000) until the issuance is advertised for sale, bids
received, and an award made by the governing board as required for the
sale of bonds, except that the sale notice need not be published outside
of the county nor more than ten (10) days before the date of sale.
SOURCE: IC 21-4-20; (03)IN1746.1.4. -->
SECTION 4.
IC 21-4-20
IS REPEALED [EFFECTIVE UPON
PASSAGE].
SOURCE: ; (03)IN1746.1.5. -->
SECTION 5.
An emergency is declared for this act.