CHAPTER 3. STATE ADMINISTRATION OF COMMON SCHOOL FUND
IC 20-49-3
Chapter 3. State Administration of Common School Fund
IC 20-49-3-1
Application
Sec. 1. This chapter applies only to money in the fund that is notbeing held in trust by the several counties under IC 20-42.
As added by P.L.2-2006, SEC.172.
IC 20-49-3-2
Purpose
Sec. 2. This chapter is in furtherance of the duties that areimposed exclusively upon the general assembly by the Constitutionof the State of Indiana in connection with the:
(1) maintenance of a general and uniform system of commonschools; and
(2) investment and reinvestment of the common school fund.
This chapter shall be liberally construed to carry out the purposes ofthe Constitution of the State of Indiana.
As added by P.L.2-2006, SEC.172.
IC 20-49-3-3
"Fund"
Sec. 3. As used in this chapter, "fund" refers to the commonschool fund in the custody of the treasurer of state.
As added by P.L.2-2006, SEC.172.
IC 20-49-3-4
Treasurer; fund custodian
Sec. 4. (a) The treasurer of state is the exclusive custodian of thefund not held in trust by the several counties under IC 20-42-1.
(b) The state board of finance has full and complete managementand control of the fund. The state board of finance shall invest thefund as provided in this title.
As added by P.L.2-2006, SEC.172.
IC 20-49-3-5
State board; administration of fund
Sec. 5. The state board shall administer the fund and this chapter.
As added by P.L.2-2006, SEC.172.
IC 20-49-3-6
Rules; state board of education
Sec. 6. The state board may adopt rules under IC 4-22-2 necessaryto administer the fund to carry out this chapter and IC 20-49-4.
As added by P.L.2-2006, SEC.172.
IC 20-49-3-7
Appropriation; interest balance
Sec. 7. The fund interest balance is annually appropriated for the
support of the common schools.
As added by P.L.2-2006, SEC.172.
IC 20-49-3-8
Advances; eligible projects; charter schools
Sec. 8. The fund may be used to make advances:
(1) to school corporations, including school townships, underIC 20-49-4 and IC 20-49-5;
(2) under IC 20-49-6; and
(3) to charter schools under IC 20-24-7-3(c) and IC 20-49-7.
As added by P.L.2-2006, SEC.172. Amended by P.L.146-2008,SEC.529.
IC 20-49-3-9
State board; powers; applications
Sec. 9. The state board shall consider and accept or reject, in itsdiscretion, applications of school building corporations created underIC 21-5-11 (before its repeal) or IC 20-47-2 for the purchase of firstmortgage bonds issued by the corporation under IC 21-5-11 (beforeits repeal) or IC 20-47-2.
As added by P.L.2-2006, SEC.172.
IC 20-49-3-10
Investments
Sec. 10. Except as provided in this chapter, the fund shall beinvested in:
(1) bonds, notes, certificates, and other valid obligations of theUnited States;
(2) bonds, notes, debentures, and other securities issued by anyfederal instrumentality and fully guaranteed by the UnitedStates;
(3) bonds, notes, certificates, and other valid obligations of anystate of the United States or any county, township, city, town,or other political subdivision in Indiana that are issued underlaw, the issuers of which, for five (5) years before the date ofthe investment, have promptly paid the principal and interest onthe bonds and other legal obligations in lawful money of theUnited States; or
(4) bonds, notes, or other securities issued by the Indiana bondbank and described in IC 5-13-10.5-11(3).
As added by P.L.2-2006, SEC.172.
IC 20-49-3-11
Advances permitted; counties managing a county common schoolfund
Sec. 11. (a) This section applies to a county that:
(1) has not elected to surrender custody of any part of the fundto the state; and
(2) has an insufficient amount of unloaned money in the fundwhen added to the amount of unloaned money in the
congressional township school fund, as shown by a report of thecounty auditor and county treasurer, to make all loans for whichthe county auditor has applications.
(b) Upon petition of the board of commissioners of the county, thestate board of finance may allocate to the county making theapplication the amount that the state board of finance determines isnecessary.
As added by P.L.2-2006, SEC.172.
IC 20-49-3-12
Management of funds; state board of finance
Sec. 12. (a) The state board of finance shall direct alldisbursement from the fund. The auditor of state shall draw theauditor of state's warrant on the treasurer of state, on a properlyitemized voucher officially approved by:
(1) the president of the state board of finance; or
(2) in the absence of the president, any member of the stateboard of finance.
(b) Except as otherwise provided by this chapter, all securitiespurchased for the fund shall be deposited with and remain in thecustody of the state board of finance. The state board of finance shallcollect all interest or other income accruing on the securities, whendue, together with the principal of the securities when the principalmatures and is due. Except as provided by subsection (c), all moneycollected under this subsection shall be:
(1) credited to the proper fund account on the records of theauditor of state;
(2) deposited with the treasurer of state; and
(3) reported to the state board of finance.
(c) All money collected under an agreement that is sold,transferred, or liquidated under IC 20-49-4-23 shall be immediatelytransferred to the purchaser, transferee, or assignee of the agreement.
As added by P.L.2-2006, SEC.172.
IC 20-49-3-13
Rules; state board of finance
Sec. 13. (a) The state board of finance may:
(1) make all rules;
(2) employ all help;
(3) purchase all supplies and equipment; and
(4) incur all expense;
necessary to properly carry out this chapter.
(b) The expense incident to the administration of this chapter shallbe paid from any money in the state treasury not otherwiseappropriated upon the warrant of the auditor of state issued on aproperly itemized voucher approved by the president of the stateboard of finance.
As added by P.L.2-2006, SEC.172.
IC 20-49-3-14 Audits
Sec. 14. A field examiner assigned by the state examiner shallannually examine the status of the fund. Upon completion of theexamination, the examiner performing the duty shall prepare a reportof the examination. The report must show:
(1) all necessary pertinent information;
(2) the balance of the fund's principal at the close of theprevious examination;
(3) the amount of interest and principal paid by each county tothe state board of finance since the close of the previousexamination;
(4) the balance of principal due at the date of the closing of thereport;
(5) a statement of receipts and disbursements by the state boardof finance;
(6) a list of the securities found to be in the possession of thestate board of finance;
(7) the amount of each security; and
(8) the total amount of all the securities held in custody.
The appropriate officer of the state board of finance shall sign the listdescribed in subdivision (6) in duplicate. The original signed listshall be deposited with the state board of accounts, and the duplicateof the signed list shall be kept in the files of the treasurer of state.
As added by P.L.2-2006, SEC.172.
IC 20-49-3-15
Statutory construction; liability of county officer
Sec. 15. This chapter may not be construed to relieve the countyauditor of any county or any other county officer of any liabilityfixed by law not specifically changed by this chapter.
As added by P.L.2-2006, SEC.172.
IC 20-49-3-16
Deposit of revenue in fund
Sec. 16. (a) All fines, forfeitures, and other revenue that, by law,accrue to the fund shall be collected as provided by law. The moneyshall be paid into the state treasury and becomes a part of the fund inthe custody of the treasurer of state. The county auditor shall keep arecord of all fines and forfeitures and all other revenue that, by law,accrues to the fund. Semiannually on May 1 and November 1, thecounty auditor shall issue the county auditor's warrant payable to thetreasurer of state in an amount equal to the total collections in the six(6) months preceding of fines and forfeitures and all other revenuethat, by law, accrues to the fund or to the permanent endowmentfund.
(b) At the time of payment of principal, interest, or accretions tothe treasurer of state, the county auditor shall file a report with theauditor of state. The report must set forth the amount of thefollowing:
(1) The county's common school fund. (2) Interest on the county's common school fund.
(3) Fines and forfeitures from the county.
(4) All other accretions included in a payment from the countyto the treasurer of state.
Forms for making the report shall be furnished by the auditor ofstate.
(c) All money collected as interest on the fund shall be paid intothe state treasury and shall be distributed for the uses and purposesprovided by law.
As added by P.L.2-2006, SEC.172.