IC 20-46-7-1 "Fund"
Sec. 1. As used in this chapter, "fund" refers to the debt service
fund. As added by P.L.2-2006, SEC.169.
IC 20-46-7-2 "Levy"
Sec. 2. As used in this chapter, "levy" refers to a levy imposed
under this chapter. As added by P.L.2-2006, SEC.169.
IC 20-46-7-3 "Obligation"
Sec. 3. As used in this chapter, "obligation" refers to any
obligation that is permitted or required by law to be paid from the
fund under IC 20-40-9 or another law. As added by P.L.2-2006, SEC.169.
IC 20-46-7-4 Duty; levy
Sec. 4. The governing body of each school corporation shall
establish a levy in every calendar year sufficient to pay all
obligations. As added by P.L.2-2006, SEC.169.
IC 20-46-7-5 Conditions; levy in excess of advertised levy
Sec. 5. If the advertised levy is insufficient to produce revenue to
meet all obligations for any calendar year, the department of local
government finance may establish a levy greater than advertised if
necessary to meet the school corporation's obligations. As added by P.L.2-2006, SEC.169.
IC 20-46-7-6 Levy; advance from state
Sec. 6. An amount equal to deductions made or to be made in the
current year for the payment of principal and interest on an
advancement from any state fund (including the common school fund
and the veterans memorial school construction fund) may be
included in a levy and appropriated and paid to the general fund. As added by P.L.2-2006, SEC.169.
IC 20-46-7-7 Levy; advance; common school fund
Sec. 7. A school corporation receiving an advancement:
(1) under IC 20-49-2 may annually levy a tax for the fund as
provided in IC 20-49-2-16;
(2) for a school building construction program may annually
levy a tax for the fund as provided in IC 20-49-4-21; or
(3) for an educational technology program may annually levy a
tax for the fund as provided in IC 20-49-4-22. As added by P.L.2-2006, SEC.169.
IC 20-46-7-8 Department of local government finance approval of school
corporation indebtedness; exemption for school bus purchases or
leases from the Indiana bond bank
Sec. 8. (a) This section does not apply to the following:
(1) Bonds or lease rental agreements for which a school
corporation:
(A) after June 30, 2008, makes a preliminary determination
as described in IC 6-1.1-20-3.1 or IC 6-1.1-20-3.5 or a
decision as described in IC 6-1.1-20-5; or
(B) in the case of bonds or lease rental agreements not
subject to IC 6-1.1-20-3.1, IC 6-1.1-20-3.5, or IC 6-1.1-20-5,
adopts a resolution or ordinance authorizing the bonds or
lease rental agreement after June 30, 2008.
(2) Repayment from the debt service fund of loans made after
June 30, 2008, for the purchase of school buses under
IC 20-27-4-5.
(b) A school corporation must file a petition requesting approval
from the department of local government finance to:
(1) incur bond indebtedness;
(2) enter into a lease rental agreement; or
(3) repay from the debt service fund loans made for the
purchase of school buses under IC 20-27-4-5;
not later than twenty-four (24) months after the first date of
publication of notice of a preliminary determination under
IC 6-1.1-20-3.1(2), unless the school corporation demonstrates that
a longer period is reasonable in light of the school corporation's facts
and circumstances.
(c) A school corporation must obtain approval from the
department of local government finance before the school
corporation may:
(1) incur the indebtedness;
(2) enter into the lease agreement; or
(3) repay the school bus purchase loan.
(d) This restriction does not apply to property taxes that a school
corporation levies to pay or fund bond or lease rental indebtedness
created or incurred before July 1, 1974. In addition, this restriction
does not apply to a lease agreement or a purchase agreement entered
into between a school corporation and the Indiana bond bank for the
lease or purchase of a school bus under IC 5-1.5-4-1(a)(5), if the
lease agreement or purchase agreement conforms with the school
corporation's ten (10) year school bus replacement plan approved by
the department of local government finance under IC 21-2-11.5-3.1
(before its repeal) or IC 20-46-5.
(e) This section does not apply to school bus purchase loans made
by a school corporation that will be repaid solely from the general
fund of the school corporation. As added by P.L.2-2006, SEC.169. Amended by P.L.192-2006,
SEC.11; P.L.224-2007, SEC.116; P.L.146-2008, SEC.509.
IC 20-46-7-8.5 Review and approval by department of local government finance
not required for certain bonds, leases, or other obligations
Sec. 8.5. (a) Notwithstanding any other provision, review by the
department of local government finance and approval by the
department of local government finance are not required before a
school corporation may issue or enter into bonds, a lease, or any
other obligation, if the school corporation:
(1) after June 30, 2008, makes a preliminary determination as
described in IC 6-1.1-20-3.1 or IC 6-1.1-20-3.5 or a decision as
described in IC 6-1.1-20-5; or
(2) in the case of bonds, leases, or other obligations not subject
to IC 6-1.1-20-3.1, IC 6-1.1-20-3.5, or IC 6-1.1-20-5, adopts a
resolution or ordinance authorizing the bonds, lease rental
agreement, or other obligations after June 30, 2008.
(b) A school corporation is not required to obtain the approval of
the department of local government finance before the school
corporation may repay from the debt service fund any loans made
after June 30, 2008, for the purchase of school buses under
IC 20-27-4-5.
(c) This subsection applies after June 30, 2008. Notwithstanding
any other provision, review by the department of local government
finance and approval by the department of local government finance
are not required before a school corporation may construct, alter, or
repair a capital project. As added by P.L.146-2008, SEC.510.
IC 20-46-7-9 Review by department of local government finance
Sec. 9. (a) This section applies only to an obligation subject to
section 8 of this chapter. This section does not apply to bonded
indebtedness or lease rental agreements for which a school
corporation:
(1) after June 30, 2008, makes a preliminary determination as
described in IC 6-1.1-20-3.1 or IC 6-1.1-20-3.5 or a decision as
described in IC 6-1.1-20-5; or
(2) in the case of bonds or lease rental agreements not subject
to IC 6-1.1-20-3.1, IC 6-1.1-20-3.5, or IC 6-1.1-20-5, adopts a
resolution or ordinance authorizing the bonds or lease rental
agreement after June 30, 2008.
(b) The department of local government finance may:
(1) approve;
(2) disapprove; or
(3) modify then approve;
a school corporation's proposed lease rental agreement, bond issue,
or school bus purchase loan. Before the department of local
government finance approves or disapproves a proposed lease rental
agreement, bond issue, or school bus purchase loan, the department
of local government finance may seek the recommendation of the tax
control board.
(c) The department of local government finance shall render a
decision not more than three (3) months after the date the department
of local government finance receives a request for approval under
section 8 of this chapter. However, the department of local
government finance may extend this three (3) month period by an
additional three (3) months if, at least ten (10) days before the end of
the original three (3) month period, the department of local
government finance sends notice of the extension to the executive
officer of the school corporation. As added by P.L.2-2006, SEC.169. Amended by P.L.224-2007,
SEC.117; P.L.146-2008, SEC.511.
IC 20-46-7-10 Approval; required study of classroom space
Sec. 10. (a) This section applies only to an obligation described
in section 8 of this chapter. This section does not apply to bonded
indebtedness or lease rental agreements for which the school
corporation:
(1) after June 30, 2008, makes a preliminary determination as
described in IC 6-1.1-20-3.1 or IC 6-1.1-20-3.5 or a decision as
described in IC 6-1.1-20-5; or
(2) in the case of bonds or lease rental agreements not subject
to IC 6-1.1-20-3.1, IC 6-1.1-20-3.5, or IC 6-1.1-20-5, adopts a
resolution or ordinance authorizing the bonds or lease rental
agreement after June 30, 2008.
(b) The department of local government finance may not approve
a school corporation's proposed lease rental agreement or bond issue
to finance the construction of additional classrooms unless the school
corporation first:
(1) establishes that additional classroom space is necessary; and
(2) conducts a feasibility study, holds public hearings, and hears
public testimony on using a twelve (12) month school term
(instead of the nine (9) month school term (as defined in
IC 20-30-2-7)) rather than expanding classroom space.
(c) A taxpayer may petition for judicial review of the final
determination of the department of local government finance under
this section. The petition must be filed in the tax court not more than
thirty (30) days after the department of local government finance
enters its order under this section. As added by P.L.2-2006, SEC.169. Amended by P.L.224-2007,
SEC.118; P.L.146-2008, SEC.512.
IC 20-46-7-11 Approval; factors considered; no authority to review or approve
financing
Sec. 11. (a) The department of local government finance in
determining whether to approve or disapprove a school building
construction project shall consider the following factors:
(1) The current and proposed square footage of school building
space per student.
(2) Enrollment patterns within the school corporation.
(3) The age and condition of the current school facilities.
(4) The cost per square foot of the school building construction
project.
(5) The effect that completion of the school building
construction project would have on the school corporation's tax
rate.
(6) Any other pertinent matter.
(b) The authority of the department of local government finance
to determine whether to approve or disapprove a school building
construction project does not after June 30, 2008, include the
authority to review or approve the financing of the school building
construction project. As added by P.L.2-2006, SEC.169. Amended by P.L.146-2008,
SEC.513; P.L.182-2009(ss), SEC.358.
IC 20-46-7-12 Maximum term of bonds
Sec. 12. Except as provided by IC 5-1-14-10, the maximum term
or repayment period for bonds issued by a school corporation for a
school building construction project may not exceed twenty (20)
years after the date of the issuance of the bonds. As added by P.L.2-2006, SEC.169. Amended by P.L.146-2008,
SEC.514.
IC 20-46-7-13 Annual review
Sec. 13. The department of local government finance shall
annually conduct the review of debt service obligations (as defined
in IC 20-48-1-11) required in IC 20-48-1-11. As added by P.L.2-2006, SEC.169.
IC 20-46-7-14 Payments toward principal required on at least annual basis
Sec. 14. After May 15, 2007, the department of local government
finance may not approve under section 9 of this chapter a school
corporation's proposed:
(1) bond issue that does not provide for payments toward the
principal of the bonds on at least an annual basis in the amount
determined under the rules or guidelines adopted by the
department of local government finance;
(2) lease rental agreement that does not provide for repayments
toward the present asset value of the lease at its inception on at
least an annual basis in the amount determined under the rules
or guidelines adopted by the department of local government
finance; or
(3) debt service fund loan to purchase school buses that does
not provide for payments toward the principal of the loan on at
least an annual basis in the amount determined under the rules
or guidelines adopted by the department of local government
finance. As added by P.L.224-2007, SEC.119.
IC 20-46-7-1 "Fund"
Sec. 1. As used in this chapter, "fund" refers to the debt service
fund. As added by P.L.2-2006, SEC.169.
IC 20-46-7-2 "Levy"
Sec. 2. As used in this chapter, "levy" refers to a levy imposed
under this chapter. As added by P.L.2-2006, SEC.169.
IC 20-46-7-3 "Obligation"
Sec. 3. As used in this chapter, "obligation" refers to any
obligation that is permitted or required by law to be paid from the
fund under IC 20-40-9 or another law. As added by P.L.2-2006, SEC.169.
IC 20-46-7-4 Duty; levy
Sec. 4. The governing body of each school corporation shall
establish a levy in every calendar year sufficient to pay all
obligations. As added by P.L.2-2006, SEC.169.
IC 20-46-7-5 Conditions; levy in excess of advertised levy
Sec. 5. If the advertised levy is insufficient to produce revenue to
meet all obligations for any calendar year, the department of local
government finance may establish a levy greater than advertised if
necessary to meet the school corporation's obligations. As added by P.L.2-2006, SEC.169.
IC 20-46-7-6 Levy; advance from state
Sec. 6. An amount equal to deductions made or to be made in the
current year for the payment of principal and interest on an
advancement from any state fund (including the common school fund
and the veterans memorial school construction fund) may be
included in a levy and appropriated and paid to the general fund. As added by P.L.2-2006, SEC.169.
IC 20-46-7-7 Levy; advance; common school fund
Sec. 7. A school corporation receiving an advancement:
(1) under IC 20-49-2 may annually levy a tax for the fund as
provided in IC 20-49-2-16;
(2) for a school building construction program may annually
levy a tax for the fund as provided in IC 20-49-4-21; or
(3) for an educational technology program may annually levy a
tax for the fund as provided in IC 20-49-4-22. As added by P.L.2-2006, SEC.169.
IC 20-46-7-8 Department of local government finance approval of school
corporation indebtedness; exemption for school bus purchases or
leases from the Indiana bond bank
Sec. 8. (a) This section does not apply to the following:
(1) Bonds or lease rental agreements for which a school
corporation:
(A) after June 30, 2008, makes a preliminary determination
as described in IC 6-1.1-20-3.1 or IC 6-1.1-20-3.5 or a
decision as described in IC 6-1.1-20-5; or
(B) in the case of bonds or lease rental agreements not
subject to IC 6-1.1-20-3.1, IC 6-1.1-20-3.5, or IC 6-1.1-20-5,
adopts a resolution or ordinance authorizing the bonds or
lease rental agreement after June 30, 2008.
(2) Repayment from the debt service fund of loans made after
June 30, 2008, for the purchase of school buses under
IC 20-27-4-5.
(b) A school corporation must file a petition requesting approval
from the department of local government finance to:
(1) incur bond indebtedness;
(2) enter into a lease rental agreement; or
(3) repay from the debt service fund loans made for the
purchase of school buses under IC 20-27-4-5;
not later than twenty-four (24) months after the first date of
publication of notice of a preliminary determination under
IC 6-1.1-20-3.1(2), unless the school corporation demonstrates that
a longer period is reasonable in light of the school corporation's facts
and circumstances.
(c) A school corporation must obtain approval from the
department of local government finance before the school
corporation may:
(1) incur the indebtedness;
(2) enter into the lease agreement; or
(3) repay the school bus purchase loan.
(d) This restriction does not apply to property taxes that a school
corporation levies to pay or fund bond or lease rental indebtedness
created or incurred before July 1, 1974. In addition, this restriction
does not apply to a lease agreement or a purchase agreement entered
into between a school corporation and the Indiana bond bank for the
lease or purchase of a school bus under IC 5-1.5-4-1(a)(5), if the
lease agreement or purchase agreement conforms with the school
corporation's ten (10) year school bus replacement plan approved by
the department of local government finance under IC 21-2-11.5-3.1
(before its repeal) or IC 20-46-5.
(e) This section does not apply to school bus purchase loans made
by a school corporation that will be repaid solely from the general
fund of the school corporation. As added by P.L.2-2006, SEC.169. Amended by P.L.192-2006,
SEC.11; P.L.224-2007, SEC.116; P.L.146-2008, SEC.509.
IC 20-46-7-8.5 Review and approval by department of local government finance
not required for certain bonds, leases, or other obligations
Sec. 8.5. (a) Notwithstanding any other provision, review by the
department of local government finance and approval by the
department of local government finance are not required before a
school corporation may issue or enter into bonds, a lease, or any
other obligation, if the school corporation:
(1) after June 30, 2008, makes a preliminary determination as
described in IC 6-1.1-20-3.1 or IC 6-1.1-20-3.5 or a decision as
described in IC 6-1.1-20-5; or
(2) in the case of bonds, leases, or other obligations not subject
to IC 6-1.1-20-3.1, IC 6-1.1-20-3.5, or IC 6-1.1-20-5, adopts a
resolution or ordinance authorizing the bonds, lease rental
agreement, or other obligations after June 30, 2008.
(b) A school corporation is not required to obtain the approval of
the department of local government finance before the school
corporation may repay from the debt service fund any loans made
after June 30, 2008, for the purchase of school buses under
IC 20-27-4-5.
(c) This subsection applies after June 30, 2008. Notwithstanding
any other provision, review by the department of local government
finance and approval by the department of local government finance
are not required before a school corporation may construct, alter, or
repair a capital project. As added by P.L.146-2008, SEC.510.
IC 20-46-7-9 Review by department of local government finance
Sec. 9. (a) This section applies only to an obligation subject to
section 8 of this chapter. This section does not apply to bonded
indebtedness or lease rental agreements for which a school
corporation:
(1) after June 30, 2008, makes a preliminary determination as
described in IC 6-1.1-20-3.1 or IC 6-1.1-20-3.5 or a decision as
described in IC 6-1.1-20-5; or
(2) in the case of bonds or lease rental agreements not subject
to IC 6-1.1-20-3.1, IC 6-1.1-20-3.5, or IC 6-1.1-20-5, adopts a
resolution or ordinance authorizing the bonds or lease rental
agreement after June 30, 2008.
(b) The department of local government finance may:
(1) approve;
(2) disapprove; or
(3) modify then approve;
a school corporation's proposed lease rental agreement, bond issue,
or school bus purchase loan. Before the department of local
government finance approves or disapproves a proposed lease rental
agreement, bond issue, or school bus purchase loan, the department
of local government finance may seek the recommendation of the tax
control board.
(c) The department of local government finance shall render a
decision not more than three (3) months after the date the department
of local government finance receives a request for approval under
section 8 of this chapter. However, the department of local
government finance may extend this three (3) month period by an
additional three (3) months if, at least ten (10) days before the end of
the original three (3) month period, the department of local
government finance sends notice of the extension to the executive
officer of the school corporation. As added by P.L.2-2006, SEC.169. Amended by P.L.224-2007,
SEC.117; P.L.146-2008, SEC.511.
IC 20-46-7-10 Approval; required study of classroom space
Sec. 10. (a) This section applies only to an obligation described
in section 8 of this chapter. This section does not apply to bonded
indebtedness or lease rental agreements for which the school
corporation:
(1) after June 30, 2008, makes a preliminary determination as
described in IC 6-1.1-20-3.1 or IC 6-1.1-20-3.5 or a decision as
described in IC 6-1.1-20-5; or
(2) in the case of bonds or lease rental agreements not subject
to IC 6-1.1-20-3.1, IC 6-1.1-20-3.5, or IC 6-1.1-20-5, adopts a
resolution or ordinance authorizing the bonds or lease rental
agreement after June 30, 2008.
(b) The department of local government finance may not approve
a school corporation's proposed lease rental agreement or bond issue
to finance the construction of additional classrooms unless the school
corporation first:
(1) establishes that additional classroom space is necessary; and
(2) conducts a feasibility study, holds public hearings, and hears
public testimony on using a twelve (12) month school term
(instead of the nine (9) month school term (as defined in
IC 20-30-2-7)) rather than expanding classroom space.
(c) A taxpayer may petition for judicial review of the final
determination of the department of local government finance under
this section. The petition must be filed in the tax court not more than
thirty (30) days after the department of local government finance
enters its order under this section. As added by P.L.2-2006, SEC.169. Amended by P.L.224-2007,
SEC.118; P.L.146-2008, SEC.512.
IC 20-46-7-11 Approval; factors considered; no authority to review or approve
financing
Sec. 11. (a) The department of local government finance in
determining whether to approve or disapprove a school building
construction project shall consider the following factors:
(1) The current and proposed square footage of school building
space per student.
(2) Enrollment patterns within the school corporation.
(3) The age and condition of the current school facilities.
(4) The cost per square foot of the school building construction
project.
(5) The effect that completion of the school building
construction project would have on the school corporation's tax
rate.
(6) Any other pertinent matter.
(b) The authority of the department of local government finance
to determine whether to approve or disapprove a school building
construction project does not after June 30, 2008, include the
authority to review or approve the financing of the school building
construction project. As added by P.L.2-2006, SEC.169. Amended by P.L.146-2008,
SEC.513; P.L.182-2009(ss), SEC.358.
IC 20-46-7-12 Maximum term of bonds
Sec. 12. Except as provided by IC 5-1-14-10, the maximum term
or repayment period for bonds issued by a school corporation for a
school building construction project may not exceed twenty (20)
years after the date of the issuance of the bonds. As added by P.L.2-2006, SEC.169. Amended by P.L.146-2008,
SEC.514.
IC 20-46-7-13 Annual review
Sec. 13. The department of local government finance shall
annually conduct the review of debt service obligations (as defined
in IC 20-48-1-11) required in IC 20-48-1-11. As added by P.L.2-2006, SEC.169.
IC 20-46-7-14 Payments toward principal required on at least annual basis
Sec. 14. After May 15, 2007, the department of local government
finance may not approve under section 9 of this chapter a school
corporation's proposed:
(1) bond issue that does not provide for payments toward the
principal of the bonds on at least an annual basis in the amount
determined under the rules or guidelines adopted by the
department of local government finance;
(2) lease rental agreement that does not provide for repayments
toward the present asset value of the lease at its inception on at
least an annual basis in the amount determined under the rules
or guidelines adopted by the department of local government
finance; or
(3) debt service fund loan to purchase school buses that does
not provide for payments toward the principal of the loan on at
least an annual basis in the amount determined under the rules
or guidelines adopted by the department of local government
finance. As added by P.L.224-2007, SEC.119.
IC 20-46-7-1 "Fund"
Sec. 1. As used in this chapter, "fund" refers to the debt service
fund. As added by P.L.2-2006, SEC.169.
IC 20-46-7-2 "Levy"
Sec. 2. As used in this chapter, "levy" refers to a levy imposed
under this chapter. As added by P.L.2-2006, SEC.169.
IC 20-46-7-3 "Obligation"
Sec. 3. As used in this chapter, "obligation" refers to any
obligation that is permitted or required by law to be paid from the
fund under IC 20-40-9 or another law. As added by P.L.2-2006, SEC.169.
IC 20-46-7-4 Duty; levy
Sec. 4. The governing body of each school corporation shall
establish a levy in every calendar year sufficient to pay all
obligations. As added by P.L.2-2006, SEC.169.
IC 20-46-7-5 Conditions; levy in excess of advertised levy
Sec. 5. If the advertised levy is insufficient to produce revenue to
meet all obligations for any calendar year, the department of local
government finance may establish a levy greater than advertised if
necessary to meet the school corporation's obligations. As added by P.L.2-2006, SEC.169.
IC 20-46-7-6 Levy; advance from state
Sec. 6. An amount equal to deductions made or to be made in the
current year for the payment of principal and interest on an
advancement from any state fund (including the common school fund
and the veterans memorial school construction fund) may be
included in a levy and appropriated and paid to the general fund. As added by P.L.2-2006, SEC.169.
IC 20-46-7-7 Levy; advance; common school fund
Sec. 7. A school corporation receiving an advancement:
(1) under IC 20-49-2 may annually levy a tax for the fund as
provided in IC 20-49-2-16;
(2) for a school building construction program may annually
levy a tax for the fund as provided in IC 20-49-4-21; or
(3) for an educational technology program may annually levy a
tax for the fund as provided in IC 20-49-4-22. As added by P.L.2-2006, SEC.169.
IC 20-46-7-8 Department of local government finance approval of school
corporation indebtedness; exemption for school bus purchases or
leases from the Indiana bond bank
Sec. 8. (a) This section does not apply to the following:
(1) Bonds or lease rental agreements for which a school
corporation:
(A) after June 30, 2008, makes a preliminary determination
as described in IC 6-1.1-20-3.1 or IC 6-1.1-20-3.5 or a
decision as described in IC 6-1.1-20-5; or
(B) in the case of bonds or lease rental agreements not
subject to IC 6-1.1-20-3.1, IC 6-1.1-20-3.5, or IC 6-1.1-20-5,
adopts a resolution or ordinance authorizing the bonds or
lease rental agreement after June 30, 2008.
(2) Repayment from the debt service fund of loans made after
June 30, 2008, for the purchase of school buses under
IC 20-27-4-5.
(b) A school corporation must file a petition requesting approval
from the department of local government finance to:
(1) incur bond indebtedness;
(2) enter into a lease rental agreement; or
(3) repay from the debt service fund loans made for the
purchase of school buses under IC 20-27-4-5;
not later than twenty-four (24) months after the first date of
publication of notice of a preliminary determination under
IC 6-1.1-20-3.1(2), unless the school corporation demonstrates that
a longer period is reasonable in light of the school corporation's facts
and circumstances.
(c) A school corporation must obtain approval from the
department of local government finance before the school
corporation may:
(1) incur the indebtedness;
(2) enter into the lease agreement; or
(3) repay the school bus purchase loan.
(d) This restriction does not apply to property taxes that a school
corporation levies to pay or fund bond or lease rental indebtedness
created or incurred before July 1, 1974. In addition, this restriction
does not apply to a lease agreement or a purchase agreement entered
into between a school corporation and the Indiana bond bank for the
lease or purchase of a school bus under IC 5-1.5-4-1(a)(5), if the
lease agreement or purchase agreement conforms with the school
corporation's ten (10) year school bus replacement plan approved by
the department of local government finance under IC 21-2-11.5-3.1
(before its repeal) or IC 20-46-5.
(e) This section does not apply to school bus purchase loans made
by a school corporation that will be repaid solely from the general
fund of the school corporation. As added by P.L.2-2006, SEC.169. Amended by P.L.192-2006,
SEC.11; P.L.224-2007, SEC.116; P.L.146-2008, SEC.509.
IC 20-46-7-8.5 Review and approval by department of local government finance
not required for certain bonds, leases, or other obligations
Sec. 8.5. (a) Notwithstanding any other provision, review by the
department of local government finance and approval by the
department of local government finance are not required before a
school corporation may issue or enter into bonds, a lease, or any
other obligation, if the school corporation:
(1) after June 30, 2008, makes a preliminary determination as
described in IC 6-1.1-20-3.1 or IC 6-1.1-20-3.5 or a decision as
described in IC 6-1.1-20-5; or
(2) in the case of bonds, leases, or other obligations not subject
to IC 6-1.1-20-3.1, IC 6-1.1-20-3.5, or IC 6-1.1-20-5, adopts a
resolution or ordinance authorizing the bonds, lease rental
agreement, or other obligations after June 30, 2008.
(b) A school corporation is not required to obtain the approval of
the department of local government finance before the school
corporation may repay from the debt service fund any loans made
after June 30, 2008, for the purchase of school buses under
IC 20-27-4-5.
(c) This subsection applies after June 30, 2008. Notwithstanding
any other provision, review by the department of local government
finance and approval by the department of local government finance
are not required before a school corporation may construct, alter, or
repair a capital project. As added by P.L.146-2008, SEC.510.
IC 20-46-7-9 Review by department of local government finance
Sec. 9. (a) This section applies only to an obligation subject to
section 8 of this chapter. This section does not apply to bonded
indebtedness or lease rental agreements for which a school
corporation:
(1) after June 30, 2008, makes a preliminary determination as
described in IC 6-1.1-20-3.1 or IC 6-1.1-20-3.5 or a decision as
described in IC 6-1.1-20-5; or
(2) in the case of bonds or lease rental agreements not subject
to IC 6-1.1-20-3.1, IC 6-1.1-20-3.5, or IC 6-1.1-20-5, adopts a
resolution or ordinance authorizing the bonds or lease rental
agreement after June 30, 2008.
(b) The department of local government finance may:
(1) approve;
(2) disapprove; or
(3) modify then approve;
a school corporation's proposed lease rental agreement, bond issue,
or school bus purchase loan. Before the department of local
government finance approves or disapproves a proposed lease rental
agreement, bond issue, or school bus purchase loan, the department
of local government finance may seek the recommendation of the tax
control board.
(c) The department of local government finance shall render a
decision not more than three (3) months after the date the department
of local government finance receives a request for approval under
section 8 of this chapter. However, the department of local
government finance may extend this three (3) month period by an
additional three (3) months if, at least ten (10) days before the end of
the original three (3) month period, the department of local
government finance sends notice of the extension to the executive
officer of the school corporation. As added by P.L.2-2006, SEC.169. Amended by P.L.224-2007,
SEC.117; P.L.146-2008, SEC.511.
IC 20-46-7-10 Approval; required study of classroom space
Sec. 10. (a) This section applies only to an obligation described
in section 8 of this chapter. This section does not apply to bonded
indebtedness or lease rental agreements for which the school
corporation:
(1) after June 30, 2008, makes a preliminary determination as
described in IC 6-1.1-20-3.1 or IC 6-1.1-20-3.5 or a decision as
described in IC 6-1.1-20-5; or
(2) in the case of bonds or lease rental agreements not subject
to IC 6-1.1-20-3.1, IC 6-1.1-20-3.5, or IC 6-1.1-20-5, adopts a
resolution or ordinance authorizing the bonds or lease rental
agreement after June 30, 2008.
(b) The department of local government finance may not approve
a school corporation's proposed lease rental agreement or bond issue
to finance the construction of additional classrooms unless the school
corporation first:
(1) establishes that additional classroom space is necessary; and
(2) conducts a feasibility study, holds public hearings, and hears
public testimony on using a twelve (12) month school term
(instead of the nine (9) month school term (as defined in
IC 20-30-2-7)) rather than expanding classroom space.
(c) A taxpayer may petition for judicial review of the final
determination of the department of local government finance under
this section. The petition must be filed in the tax court not more than
thirty (30) days after the department of local government finance
enters its order under this section. As added by P.L.2-2006, SEC.169. Amended by P.L.224-2007,
SEC.118; P.L.146-2008, SEC.512.
IC 20-46-7-11 Approval; factors considered; no authority to review or approve
financing
Sec. 11. (a) The department of local government finance in
determining whether to approve or disapprove a school building
construction project shall consider the following factors:
(1) The current and proposed square footage of school building
space per student.
(2) Enrollment patterns within the school corporation.
(3) The age and condition of the current school facilities.
(4) The cost per square foot of the school building construction
project.
(5) The effect that completion of the school building
construction project would have on the school corporation's tax
rate.
(6) Any other pertinent matter.
(b) The authority of the department of local government finance
to determine whether to approve or disapprove a school building
construction project does not after June 30, 2008, include the
authority to review or approve the financing of the school building
construction project. As added by P.L.2-2006, SEC.169. Amended by P.L.146-2008,
SEC.513; P.L.182-2009(ss), SEC.358.
IC 20-46-7-12 Maximum term of bonds
Sec. 12. Except as provided by IC 5-1-14-10, the maximum term
or repayment period for bonds issued by a school corporation for a
school building construction project may not exceed twenty (20)
years after the date of the issuance of the bonds. As added by P.L.2-2006, SEC.169. Amended by P.L.146-2008,
SEC.514.
IC 20-46-7-13 Annual review
Sec. 13. The department of local government finance shall
annually conduct the review of debt service obligations (as defined
in IC 20-48-1-11) required in IC 20-48-1-11. As added by P.L.2-2006, SEC.169.
IC 20-46-7-14 Payments toward principal required on at least annual basis
Sec. 14. After May 15, 2007, the department of local government
finance may not approve under section 9 of this chapter a school
corporation's proposed:
(1) bond issue that does not provide for payments toward the
principal of the bonds on at least an annual basis in the amount
determined under the rules or guidelines adopted by the
department of local government finance;
(2) lease rental agreement that does not provide for repayments
toward the present asset value of the lease at its inception on at
least an annual basis in the amount determined under the rules
or guidelines adopted by the department of local government
finance; or
(3) debt service fund loan to purchase school buses that does
not provide for payments toward the principal of the loan on at
least an annual basis in the amount determined under the rules
or guidelines adopted by the department of local government
finance. As added by P.L.224-2007, SEC.119.
