CHAPTER 7. SCHOOL BUS REPLACEMENT FUND

IC 20-40-7
    Chapter 7. School Bus Replacement Fund

IC 20-40-7-1
"Costs attributable to transportation"
    Sec. 1. As used in this chapter, "costs attributable totransportation" has the meaning set forth in IC 20-40-6-1.
As added by P.L.2-2006, SEC.163.

IC 20-40-7-2
"Fund"
    Sec. 2. As used in this chapter, "fund" refers to a school busreplacement fund established under section 5 of this chapter.
As added by P.L.2-2006, SEC.163.

IC 20-40-7-3
"Levy"
    Sec. 3. As used in this chapter, "levy" refers to a property tax levyimposed under IC 20-46-5 for the fund.
As added by P.L.2-2006, SEC.163.

IC 20-40-7-4
"Plan"
    Sec. 4. "Plan" refers to a plan or amended plan adopted andapproved under IC 20-46-5.
As added by P.L.2-2006, SEC.163.

IC 20-40-7-5
Establishment of fund
    Sec. 5. The governing body of each school corporation shallestablish a school bus replacement fund.
As added by P.L.2-2006, SEC.163.

IC 20-40-7-6
Uses; general provisions
    Sec. 6. Except as otherwise provided by law, the fund is theexclusive fund used to pay the following costs attributable totransportation:
        (1) Amounts paid for the replacement of school buses, eitherthrough a purchase agreement or under a lease agreement.
        (2) The costs of contracted transportation service payable fromthe fund under section 7 of this chapter.
As added by P.L.2-2006, SEC.163.

IC 20-40-7-7
Uses; expenditures; transportation, fleet, and common carriercontracts
    Sec. 7. (a) Before the last Thursday in August in the yearpreceding the first school year in which a proposed contractcommences, the governing body of a school corporation may elect to

designate a part of a:
        (1) transportation contract (as defined in IC 20-27-2-12);
        (2) fleet contract (as defined in IC 20-27-2-5); or
        (3) common carrier contract (as defined in IC 20-27-2-3);
as an expenditure payable from the fund.
    (b) An election under this section must be made in atransportation plan approved by the department of local governmentfinance under this chapter. The election applies throughout the termof the contract.
    (c) The amount that may be paid from the fund in a school year isequal to the fair market lease value in the school year of each schoolbus, school bus chassis, or school bus body used under the contract,as substantiated by invoices, depreciation schedules, and otherdocumented information available to the school corporation.
    (d) The allocation of costs under this section to the fund mustcomply with the allocation guidelines adopted by the department oflocal government finance and the accounting standards prescribed bythe state board of accounts.
As added by P.L.2-2006, SEC.163.

IC 20-40-7-8
Requirement of expenditure plan
    Sec. 8. The department of local government finance may approveappropriations from the fund only if the appropriations conform toa plan.
As added by P.L.2-2006, SEC.163.