CHAPTER 4. ADVANCEMENT FROM COMMON SCHOOL FUND; BUILDINGS; TECHNOLOGY PROGRAMS
IC 20-49-4
Chapter 4. Advancement From Common School Fund; Buildings;Technology Programs
IC 20-49-4-1
Application; reorganized schools
Sec. 1. This chapter applies to school corporations organized andformed through reorganization under IC 20-23-4, IC 20-23-6, orIC 20-23-7 and school townships under IC 20-23-3.
As added by P.L.2-2006, SEC.172.
IC 20-49-4-2
Exemption for procedures; loss from disaster
Sec. 2. Sections 9, 12, and 13 of this chapter do not apply if aschool corporation sustains loss from a disaster.
As added by P.L.2-2006, SEC.172.
IC 20-49-4-3
"Advance"
Sec. 3. As used in this chapter, "advance" means an advanceunder this chapter from the fund.
As added by P.L.2-2006, SEC.172.
IC 20-49-4-4
"Disaster"
Sec. 4. As used in this chapter, "disaster" refers to loss by:
(1) fire;
(2) wind;
(3) cyclone; or
(4) other disaster;
of all or a major part of a school building or school buildings.
As added by P.L.2-2006, SEC.172.
IC 20-49-4-5
"Educational technology program"
Sec. 5. As used in this chapter, "educational technology program"means the:
(1) purchase, lease, or financing of educational technologyequipment;
(2) operation of the educational technology equipment; and
(3) training of teachers in the use of the educational technologyequipment.
As added by P.L.2-2006, SEC.172.
IC 20-49-4-6
"Fund"
Sec. 6. 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 20-49-4-7
"School building construction program"
Sec. 7. As used in this chapter, "school building constructionprogram" means the purchase, lease, or financing of land, theconstruction and equipping of school buildings, and the remodeling,repairing, or improving of school buildings by a school corporation:
(1) that sustained a loss from a disaster;
(2) whose adjusted assessed valuation (as determined underIC 6-1.1-34-8) per ADM is within the lowest forty percent(40%) of the assessed valuation per ADM when compared withall school corporation adjusted assessed valuation (as adjusted(if applicable) under IC 6-1.1-34-8) per ADM; or
(3) with an advance under this chapter outstanding on July 1,1993, that bears interest of at least seven and one-half percent(7.5%).
The term does not include facilities used or to be used primarily forinterscholastic or extracurricular activities.
As added by P.L.2-2006, SEC.172. Amended by P.L.113-2010,SEC.99.
IC 20-49-4-8
Power; state board; advance; eligibility
Sec. 8. The state board may advance money to schoolcorporations to be used for:
(1) school building construction programs; and
(2) educational technology programs;
as provided in this chapter.
As added by P.L.2-2006, SEC.172.
IC 20-49-4-9
Priority of advances; school building contruction programs
Sec. 9. Priority of advances for school building constructionprograms shall be made to school corporations that have the leastamount of adjusted assessed valuation (as determined underIC 6-1.1-34-8) per student in ADM.
As added by P.L.2-2006, SEC.172.
IC 20-49-4-10
Priority of advances; educational technology programs
Sec. 10. Priority of advances for educational technology programsshall be on whatever basis the state board, after consulting with thedepartment and the budget agency, periodically determines.
As added by P.L.2-2006, SEC.172.
IC 20-49-4-11
Application
Sec. 11. A school corporation desiring to obtain an advance mustsubmit an application to the state board in the form established by thestate board, after consulting with the department and the budgetagency.As added by P.L.2-2006, SEC.172.
IC 20-49-4-12
Condition of advance; capital projects fund
Sec. 12. To qualify for an advance under this chapter, a schoolcorporation must establish a capital projects fund under IC 20-40-8.The state board, after consulting with the department and the budgetagency, may waive or modify this requirement upon a showing ofgood cause by the school corporation.
As added by P.L.2-2006, SEC.172.
IC 20-49-4-13
Maximum advance; school building construction program
Sec. 13. An advance to a school corporation for any schoolbuilding construction program may not exceed the greater of thefollowing:
(1) Fifteen million dollars ($15,000,000).
(2) The product of fifteen thousand dollars ($15,000) multipliedby the number of students accommodated as a result of theschool building construction program.
However, if a school corporation has sustained loss by disaster, thislimitation may be waived by the state board after consulting with thedepartment and the budget agency.
As added by P.L.2-2006, SEC.172.
IC 20-49-4-14
Maximum advance; educational technology programs
Sec. 14. An advance for an educational technology program iswithout limitation in amount other than the availability of funds inthe fund for this purpose and the ability of the school corporationdesiring an advance to pay the advance according to the terms of theadvance.
As added by P.L.2-2006, SEC.172.
IC 20-49-4-15
Maximum term of advance; school building construction program;prepayment; interest rate
Sec. 15. (a) Money advanced to a school corporation for a schoolbuilding construction program may be advanced for a period notexceeding twenty-five (25) years. The school corporation to whichmoney is advanced must pay interest on the advance. For advancesmade before July 1, 1993, the state board may provide, either beforean advance is made or before an advance is fully paid, that thepayment of the advance may not be prepaid by more than six (6)months. For advances made after June 30, 1993, for school buildingconstruction programs, the state board may provide that the advancesare prepayable at any time.
(b) The state board of finance shall periodically establish the rateor rates of interest payable on advances for school buildingconstruction programs as long as: (1) the established interest rate or rates do not exceed seven andone-half percent (7.5%); and
(2) the interest rate or rates on advances made to schoolcorporations with advances outstanding on July 1, 1993, bearinginterest at seven and one-half percent (7.5%) or more shall notexceed four percent (4%).
As added by P.L.2-2006, SEC.172.
IC 20-49-4-16
Maximum term of advance; educational technology program;prepayment; interest rate
Sec. 16. (a) Money advanced to a school corporation for aneducational technology program may be for a period not exceedingfive (5) years. The school corporation to which an advance is madeshall pay interest on the advance. Advances for educationaltechnology programs may be prepaid at any time.
(b) The state board of finance shall periodically establish the rateor rates of interest payable on advances for educational technologyprograms as long as the established interest rate or rates:
(1) are not less than one percent (1%); and
(2) do not exceed four percent (4%).
As added by P.L.2-2006, SEC.172.
IC 20-49-4-17
Statutory construction; advance not treated as debt of schoolcorporation
Sec. 17. An advance is not an obligation of the school corporationwithin the meaning of the limitation on or prohibition againstindebtedness under the Constitution of the State of Indiana. Nothingin this chapter relieves the governing body of a school corporationreceiving an advance of any obligation under Indiana law to qualifythe school corporation for state tuition support. The schoolcorporation shall continue to perform all acts necessary to obtainthese funds.
As added by P.L.2-2006, SEC.172.
IC 20-49-4-18
Repayment of advance; terms; state tuition support
Sec. 18. To ensure timely payment of advances according to theterms, the state may in its sole discretion withhold from funds due toschool corporations to which advances are made amounts necessaryto pay the advances and the interest on the advances in accordancewith their respective terms. The terms of the advances shall beestablished by the state board after consulting with the departmentand upon the approval of the budget agency in advance of the timethe respective advances are made. However, in the case of schoolcorporations with advances outstanding on July 1, 1993, thewithholding may be adjusted to conform with this chapter. To theextent available, funds shall first be withheld from the distribution ofstate tuition support. However, if this distribution is not available or
is inadequate, funds may be withheld from the distribution of otherstate funds to the school corporation to which the advance is made.
As added by P.L.2-2006, SEC.172.
IC 20-49-4-19
Terms of agreement; right to offset advance against state tuitionsupport
Sec. 19. A school corporation receiving an advance shall agree tohave the money advanced, together with the interest on the advance,deducted from the distribution of state tuition support until all themoney advanced, together with the interest on the advance, has beenpaid. The state board and the state board of finance shall reduce eachdistribution of state tuition support to each school corporation towhich an advance is made in an amount to be agreed upon by thestate and the school corporation.
As added by P.L.2-2006, SEC.172.
IC 20-49-4-20
Statutory construction; advance not treated as debt of state
Sec. 20. An agreement with the state board or state board offinance under section 23 of this chapter to collect and pay overamounts deducted from state tuition support for the benefit ofanother party is not a debt of the state within the meaning of thelimitation on or prohibition against state indebtedness under theConstitution of the State of Indiana.
As added by P.L.2-2006, SEC.172.
IC 20-49-4-21
Power; levy; school building construction program; replacementof amount deducted from state tuition support
Sec. 21. A school corporation to which an advance is made for aschool building construction program may annually levy a propertytax in the debt service fund to replace the amount deducted under thischapter in the current year from the distribution of state tuitionsupport. The amount received from the tax must be transferred fromthe debt service fund to the general fund.
As added by P.L.2-2006, SEC.172.
IC 20-49-4-22
Power; levy; educational technology program; replacement ofamount deducted from state tuition support
Sec. 22. A school corporation to which an advance is made for aneducational technology program may annually levy a property tax inthe capital projects fund or the debt service fund to replace theamount deducted under this chapter in the current year from thedistribution of state tuition support. The amount received from thetax must be transferred from the capital projects fund or the debtservice fund, as applicable, to the general fund.
As added by P.L.2-2006, SEC.172.
IC 20-49-4-23
Power; state board; sell, transfer, or liquidate agreements;conditions
Sec. 23. (a) Upon request of the state board, acting upon theadvice of the department, the state board of finance may periodicallysell, transfer, or liquidate agreements, in whole or in part, includingwithout limitation the sale, transfer, or liquidation of all or any partof the principal or interest to be received at any time under one (1)or more agreements that evidence the right of the state to makedeductions from state tuition support to pay advances under thischapter under the terms and conditions that the state board of financeconsiders necessary and appropriate.
(b) Each sale, transfer, or liquidation under this section is subjectto the following conditions:
(1) Each sale, transfer, or liquidation may be made only to adepartment, an agency, a commission, an instrumentality, or apublic body of the state, including the Indiana bond bank.
(2) Each sale, transfer, or liquidation of agreements may bemade only for cash.
(3) Payments under the sale, transfer, or liquidation must bemade to the treasurer of state for the fund and reported to thestate board of finance.
(4) The total amount of cash received by the fund from the salemay not be less than the outstanding principal amount of all ora part of the agreements sold plus accrued interest owed.
(5) If necessary to facilitate a sale, transfer, or liquidation, thestate board or the state board of finance may agree to act onbehalf of an entity described in subdivision (1) by collectingpayment on advances that are:
(A) received directly from a school corporation, if any directpayments are received; or
(B) deducted from amounts appropriated and made availablefor state tuition support.
An agreement by the state board or the state board of financeunder this subdivision is a valid and enforceable contractualobligation but is not a debt of the state within the meaning ofthe limitation against indebtedness under the Constitution of theState of Indiana.
(6) Each proposed sale, transfer, or liquidation must bereviewed by the budget committee and approved by the budgetagency.
As added by P.L.2-2006, SEC.172.