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 not
being 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 are
imposed exclusively upon the general assembly by the Constitution
of the State of Indiana in connection with the:
(1) maintenance of a general and uniform system of common
schools; and
(2) investment and reinvestment of the common school fund.
This chapter shall be liberally construed to carry out the purposes of
the 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 common
school 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 the
fund not held in trust by the several counties under IC 20-42-1.
(b) The state board of finance has full and complete management
and control of the fund. The state board of finance shall invest the
fund 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 necessary
to 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, under
IC 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 its
discretion, applications of school building corporations created under
IC 21-5-11 (before its repeal) or IC 20-47-2 for the purchase of first
mortgage bonds issued by the corporation under IC 21-5-11 (before
its 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 be
invested in:
(1) bonds, notes, certificates, and other valid obligations of the
United States;
(2) bonds, notes, debentures, and other securities issued by any
federal instrumentality and fully guaranteed by the United
States;
(3) bonds, notes, certificates, and other valid obligations of any
state of the United States or any county, township, city, town,
or other political subdivision in Indiana that are issued under
law, the issuers of which, for five (5) years before the date of
the investment, have promptly paid the principal and interest on
the bonds and other legal obligations in lawful money of the
United States; or
(4) bonds, notes, or other securities issued by the Indiana bond
bank 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 school
fund
Sec. 11. (a) This section applies to a county that:
(1) has not elected to surrender custody of any part of the fund
to the state; and
(2) has an insufficient amount of unloaned money in the fund
when added to the amount of unloaned money in the
congressional township school fund, as shown by a report of the
county auditor and county treasurer, to make all loans for which
the county auditor has applications.
(b) Upon petition of the board of commissioners of the county, the
state board of finance may allocate to the county making the
application the amount that the state board of finance determines is
necessary. 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 all
disbursement from the fund. The auditor of state shall draw the
auditor of state's warrant on the treasurer of state, on a properly
itemized 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 state
board of finance.
(b) Except as otherwise provided by this chapter, all securities
purchased for the fund shall be deposited with and remain in the
custody of the state board of finance. The state board of finance shall
collect all interest or other income accruing on the securities, when
due, together with the principal of the securities when the principal
matures and is due. Except as provided by subsection (c), all money
collected under this subsection shall be:
(1) credited to the proper fund account on the records of the
auditor 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 immediately
transferred 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 shall
be paid from any money in the state treasury not otherwise
appropriated upon the warrant of the auditor of state issued on a
properly itemized voucher approved by the president of the state
board 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 shall
annually examine the status of the fund. Upon completion of the
examination, the examiner performing the duty shall prepare a report
of the examination. The report must show:
(1) all necessary pertinent information;
(2) the balance of the fund's principal at the close of the
previous examination;
(3) the amount of interest and principal paid by each county to
the state board of finance since the close of the previous
examination;
(4) the balance of principal due at the date of the closing of the
report;
(5) a statement of receipts and disbursements by the state board
of finance;
(6) a list of the securities found to be in the possession of the
state 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 list
described in subdivision (6) in duplicate. The original signed list
shall be deposited with the state board of accounts, and the duplicate
of 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 county
auditor of any county or any other county officer of any liability
fixed 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 money
shall be paid into the state treasury and becomes a part of the fund in
the custody of the treasurer of state. The county auditor shall keep a
record of all fines and forfeitures and all other revenue that, by law,
accrues to the fund. Semiannually on May 1 and November 1, the
county auditor shall issue the county auditor's warrant payable to the
treasurer of state in an amount equal to the total collections in the six
(6) months preceding of fines and forfeitures and all other revenue
that, by law, accrues to the fund or to the permanent endowment
fund.
(b) At the time of payment of principal, interest, or accretions to
the treasurer of state, the county auditor shall file a report with the
auditor of state. The report must set forth the amount of the
following:
(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 county
to the treasurer of state.
Forms for making the report shall be furnished by the auditor of
state.
(c) All money collected as interest on the fund shall be paid into
the state treasury and shall be distributed for the uses and purposes
provided by law. As added by P.L.2-2006, SEC.172.
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 not
being 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 are
imposed exclusively upon the general assembly by the Constitution
of the State of Indiana in connection with the:
(1) maintenance of a general and uniform system of common
schools; and
(2) investment and reinvestment of the common school fund.
This chapter shall be liberally construed to carry out the purposes of
the 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 common
school 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 the
fund not held in trust by the several counties under IC 20-42-1.
(b) The state board of finance has full and complete management
and control of the fund. The state board of finance shall invest the
fund 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 necessary
to 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, under
IC 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 its
discretion, applications of school building corporations created under
IC 21-5-11 (before its repeal) or IC 20-47-2 for the purchase of first
mortgage bonds issued by the corporation under IC 21-5-11 (before
its 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 be
invested in:
(1) bonds, notes, certificates, and other valid obligations of the
United States;
(2) bonds, notes, debentures, and other securities issued by any
federal instrumentality and fully guaranteed by the United
States;
(3) bonds, notes, certificates, and other valid obligations of any
state of the United States or any county, township, city, town,
or other political subdivision in Indiana that are issued under
law, the issuers of which, for five (5) years before the date of
the investment, have promptly paid the principal and interest on
the bonds and other legal obligations in lawful money of the
United States; or
(4) bonds, notes, or other securities issued by the Indiana bond
bank 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 school
fund
Sec. 11. (a) This section applies to a county that:
(1) has not elected to surrender custody of any part of the fund
to the state; and
(2) has an insufficient amount of unloaned money in the fund
when added to the amount of unloaned money in the
congressional township school fund, as shown by a report of the
county auditor and county treasurer, to make all loans for which
the county auditor has applications.
(b) Upon petition of the board of commissioners of the county, the
state board of finance may allocate to the county making the
application the amount that the state board of finance determines is
necessary. 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 all
disbursement from the fund. The auditor of state shall draw the
auditor of state's warrant on the treasurer of state, on a properly
itemized 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 state
board of finance.
(b) Except as otherwise provided by this chapter, all securities
purchased for the fund shall be deposited with and remain in the
custody of the state board of finance. The state board of finance shall
collect all interest or other income accruing on the securities, when
due, together with the principal of the securities when the principal
matures and is due. Except as provided by subsection (c), all money
collected under this subsection shall be:
(1) credited to the proper fund account on the records of the
auditor 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 immediately
transferred 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 shall
be paid from any money in the state treasury not otherwise
appropriated upon the warrant of the auditor of state issued on a
properly itemized voucher approved by the president of the state
board 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 shall
annually examine the status of the fund. Upon completion of the
examination, the examiner performing the duty shall prepare a report
of the examination. The report must show:
(1) all necessary pertinent information;
(2) the balance of the fund's principal at the close of the
previous examination;
(3) the amount of interest and principal paid by each county to
the state board of finance since the close of the previous
examination;
(4) the balance of principal due at the date of the closing of the
report;
(5) a statement of receipts and disbursements by the state board
of finance;
(6) a list of the securities found to be in the possession of the
state 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 list
described in subdivision (6) in duplicate. The original signed list
shall be deposited with the state board of accounts, and the duplicate
of 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 county
auditor of any county or any other county officer of any liability
fixed 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 money
shall be paid into the state treasury and becomes a part of the fund in
the custody of the treasurer of state. The county auditor shall keep a
record of all fines and forfeitures and all other revenue that, by law,
accrues to the fund. Semiannually on May 1 and November 1, the
county auditor shall issue the county auditor's warrant payable to the
treasurer of state in an amount equal to the total collections in the six
(6) months preceding of fines and forfeitures and all other revenue
that, by law, accrues to the fund or to the permanent endowment
fund.
(b) At the time of payment of principal, interest, or accretions to
the treasurer of state, the county auditor shall file a report with the
auditor of state. The report must set forth the amount of the
following:
(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 county
to the treasurer of state.
Forms for making the report shall be furnished by the auditor of
state.
(c) All money collected as interest on the fund shall be paid into
the state treasury and shall be distributed for the uses and purposes
provided by law. As added by P.L.2-2006, SEC.172.
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 not
being 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 are
imposed exclusively upon the general assembly by the Constitution
of the State of Indiana in connection with the:
(1) maintenance of a general and uniform system of common
schools; and
(2) investment and reinvestment of the common school fund.
This chapter shall be liberally construed to carry out the purposes of
the 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 common
school 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 the
fund not held in trust by the several counties under IC 20-42-1.
(b) The state board of finance has full and complete management
and control of the fund. The state board of finance shall invest the
fund 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 necessary
to 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, under
IC 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 its
discretion, applications of school building corporations created under
IC 21-5-11 (before its repeal) or IC 20-47-2 for the purchase of first
mortgage bonds issued by the corporation under IC 21-5-11 (before
its 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 be
invested in:
(1) bonds, notes, certificates, and other valid obligations of the
United States;
(2) bonds, notes, debentures, and other securities issued by any
federal instrumentality and fully guaranteed by the United
States;
(3) bonds, notes, certificates, and other valid obligations of any
state of the United States or any county, township, city, town,
or other political subdivision in Indiana that are issued under
law, the issuers of which, for five (5) years before the date of
the investment, have promptly paid the principal and interest on
the bonds and other legal obligations in lawful money of the
United States; or
(4) bonds, notes, or other securities issued by the Indiana bond
bank 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 school
fund
Sec. 11. (a) This section applies to a county that:
(1) has not elected to surrender custody of any part of the fund
to the state; and
(2) has an insufficient amount of unloaned money in the fund
when added to the amount of unloaned money in the
congressional township school fund, as shown by a report of the
county auditor and county treasurer, to make all loans for which
the county auditor has applications.
(b) Upon petition of the board of commissioners of the county, the
state board of finance may allocate to the county making the
application the amount that the state board of finance determines is
necessary. 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 all
disbursement from the fund. The auditor of state shall draw the
auditor of state's warrant on the treasurer of state, on a properly
itemized 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 state
board of finance.
(b) Except as otherwise provided by this chapter, all securities
purchased for the fund shall be deposited with and remain in the
custody of the state board of finance. The state board of finance shall
collect all interest or other income accruing on the securities, when
due, together with the principal of the securities when the principal
matures and is due. Except as provided by subsection (c), all money
collected under this subsection shall be:
(1) credited to the proper fund account on the records of the
auditor 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 immediately
transferred 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 shall
be paid from any money in the state treasury not otherwise
appropriated upon the warrant of the auditor of state issued on a
properly itemized voucher approved by the president of the state
board 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 shall
annually examine the status of the fund. Upon completion of the
examination, the examiner performing the duty shall prepare a report
of the examination. The report must show:
(1) all necessary pertinent information;
(2) the balance of the fund's principal at the close of the
previous examination;
(3) the amount of interest and principal paid by each county to
the state board of finance since the close of the previous
examination;
(4) the balance of principal due at the date of the closing of the
report;
(5) a statement of receipts and disbursements by the state board
of finance;
(6) a list of the securities found to be in the possession of the
state 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 list
described in subdivision (6) in duplicate. The original signed list
shall be deposited with the state board of accounts, and the duplicate
of 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 county
auditor of any county or any other county officer of any liability
fixed 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 money
shall be paid into the state treasury and becomes a part of the fund in
the custody of the treasurer of state. The county auditor shall keep a
record of all fines and forfeitures and all other revenue that, by law,
accrues to the fund. Semiannually on May 1 and November 1, the
county auditor shall issue the county auditor's warrant payable to the
treasurer of state in an amount equal to the total collections in the six
(6) months preceding of fines and forfeitures and all other revenue
that, by law, accrues to the fund or to the permanent endowment
fund.
(b) At the time of payment of principal, interest, or accretions to
the treasurer of state, the county auditor shall file a report with the
auditor of state. The report must set forth the amount of the
following:
(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 county
to the treasurer of state.
Forms for making the report shall be furnished by the auditor of
state.
(c) All money collected as interest on the fund shall be paid into
the state treasury and shall be distributed for the uses and purposes
provided by law. As added by P.L.2-2006, SEC.172.
