IC 20-49-5
    Chapter 5. Advancement From the Common School Fund forTransfer Tuition Costs

IC 20-49-5-1
"Advance"
    Sec. 1. As used in this chapter, "advance" refers to an advancefrom the fund under this chapter.
As added by P.L.2-2006, SEC.172.

IC 20-49-5-2
"Fund"
    Sec. 2. 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 20-49-5-3
State board; advance; purposes; maximum advance
    Sec. 3. To assist a school corporation in providing the schoolcorporation's educational program to a student placed in a facility orhome as described in IC 20-26-11-8(a) or IC 20-26-11-8(b) and notlater than October 1 of each school year, the state board may advancemoney to a school corporation in anticipation of the schoolcorporation's receipt of transfer tuition for students described inIC 20-26-11-8(a) or IC 20-26-11-8(b). The amount of the advancemay not exceed the amount determined under STEP TWO of thefollowing formula:
        STEP ONE: Estimate for the current school year the number ofstudents described in IC 20-26-11-8(a) or IC 20-26-11-8(b) thatare transferred to the school corporation.
        STEP TWO: Multiply the STEP ONE amount by the schoolcorporation's prior year per student transfer tuition amount.
As added by P.L.2-2006, SEC.172.

IC 20-49-5-4
Conditions of advance; certification; repayment agreement
    Sec. 4. (a) To qualify for an advance, a school corporation shalldo the following:
        (1) Certify to the state board the information described insection 3 of this chapter.
        (2) Request from the state board the anticipated amount oftransfer tuition not to exceed the amount described in section 3of this chapter.
        (3) Guarantee full repayment of the advance by agreeing tohave:
            (A) one-half (1/2) of the amount of the advance deductedfrom the monthly distribution of state tuition supportreceived by the school corporation six (6) months after theadvancement is made, with interest at the rate of four percent(4%); and            (B) the balance of the amount of the advancement deductedfrom the monthly distribution of state tuition supportreceived by the school corporation twelve (12) months afterthe advancement is made, with interest at the rate of fourpercent (4%).
    (b) The deducted amounts shall be transferred by the state boardto the fund.
As added by P.L.2-2006, SEC.172.

IC 20-49-5-5
Reimbursement of interest; notice between school corporations
    Sec. 5. A school corporation receiving an advance shall notify theschool corporation or auditor of state from which the schoolcorporation receives transfer tuition under IC 20-26-11 for studentsdescribed in IC 20-26-11-8(a) or IC 20-26-11-8(b) of the amount ofinterest withheld under section 4 of this chapter. The schoolcorporation or auditor of state shall reimburse the school corporationfor the interest expense at the same time the transfer tuition is paid.
As added by P.L.2-2006, SEC.172.

IC 20-49-5-6
Obligation to repay advance; effect of failure to receive transfertuition reimbursement; obligation not treated as debt
    Sec. 6. (a) A school corporation's obligation to repay theadvancement may not be construed to be diminished or otherwiseaffected if the school corporation in which the student has legalsettlement fails to pay the transfer tuition as required underIC 20-26-11 to the transferee school corporation in a timely manner.
    (b) An advance may not be construed to be an obligation of theschool corporation within the meaning of the limitation againstindebtedness under the Constitution of the State of Indiana.
As added by P.L.2-2006, SEC.172.