*HB1009.2*

February 7, 2017

HOUSE BILL No. 1009_____

DIGEST OF HB 1009 (Updated February 6, 2017 1:04 pm - DI 58)

Citations Affected: IC 5-1; IC 5-10.1; IC 5-11; IC 5-14; IC 6-1.1;IC 6-3.6; IC 20-20; IC 20-23; IC 20-24; IC 20-24.2; IC 20-25;IC 20-26; IC 20-28; IC 20-29; IC 20-30; IC 20-32; IC 20-35; IC 20-40;IC 20-41; IC 20-42; IC 20-44; IC 20-45; IC 20-46; IC 20-47; IC 20-48;IC 20-49; IC 36-1; IC 36-10; noncode.

Synopsis: School financial management. Eliminates the school generalfund. Creates an education fund to be used as the exclusive fund to payexpenses allocated to student instruction and learning. Creates anoperations fund to replace the capital projects fund, the transportationfund, the school bus replacement fund, an art association or a historicalsociety fund, and the public playground fund. Allows transfers betweenthe education fund and operations fund. Establishes a maximum levyfor the operations fund based on the levies for capital projects,transportation, bus replacement, historical societies, art associations,and public playgrounds. Provides that the maximum operations fundlevy is to be increased annually by the income based assessed valuegrowth quotient. Provides new allowable expenditures from theoperations fund to include all skilled trades, school maintenancevehicles, and contracted services related to buildings and grounds.Eliminates the requirement to publish the entire capital projects planand school bus replacement plan. Removes the approval of the plansand appropriations by the department of local government finance.Eliminates various dedicated funds and moves the purpose for each ofthese funds to the education fund or operations fund. Creates the schoolcorporation referendum controlled project tax levy fund to pay forprojects approved by a voter referendum. Makes correspondingchanges.

Effective: Upon passage; July 1, 2017; July 1, 2018.

Cook, Brown T, Huston, Smith V

January 10, 2017, read first time and referred to Committee on Education.January 31, 2017, amended, reported — Do Pass. Referred to Committee on Ways and

Means pursuant to Rule 127.February 6, 2017, amended, reported — Do Pass.

HB 1009—LS 7513/DI 58

February 7, 2017

First Regular Session of the 120th General Assembly (2017)

PRINTING CODE. Amendments: Whenever an existing statute (or a section of the IndianaConstitution) is being amended, the text of the existing provision will appear in this style type,additions will appear in this style type, and deletions will appear in this style type. Additions: Whenever a new statutory provision is being enacted (or a new constitutionalprovision adopted), the text of the new provision will appear in this style type. Also, theword NEW will appear in that style type in the introductory clause of each SECTION that addsa new provision to the Indiana Code or the Indiana Constitution. Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflictsbetween statutes enacted by the 2016 Regular Session of the General Assembly.

HOUSE BILL No. 1009

A BILL FOR AN ACT to amend the Indiana Code concerningeducation.

Be it enacted by the General Assembly of the State of Indiana:

1 SECTION 1. IC 5-1-5-2.5, AS AMENDED BY P.L.120-2014,2 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE3 JULY 1, 2018]: Sec. 2.5. (a) As used in this section, "eligible school4 corporation" means a school corporation (as defined in IC 36-1-2-17)5 that satisfies all the conditions required by this section.6 (b) As used in this section, "increment" means the annual difference7 between:8 (1) the annual debt service payment for the bonds proposed to be9 retired or refunded; and

10 (2) the annual debt service payment for the proposed refunding11 bonds;12 for each year that the bonds that are being retired or refunded would13 have been outstanding.14 (c) In order for a school corporation to be an eligible school15 corporation under this section, the school corporation must determine16 that the percentage computed under this subsection for the school17 corporation is at least twenty percent (20%), regarding the year for

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1 which the latest certified levies have been determined. A school2 corporation shall compute its percentage as follows:3 (1) Compute the amount of credits granted under IC 6-1.1-20.64 against the school corporation's combined levy for the school5 corporation's:6 (A) debt service fund, as described in IC 20-46-7-15;7 (B) capital projects operations fund (IC 20-46-8); and8 (C) transportation fund;9 (D) school bus replacement fund; and

10 (E) (C) racial balance fund (IC 20-46-3).11 (2) Compute the school corporation's combined levy for the12 school corporation's:13 (A) capital projects fund;14 (B) transportation fund;15 (C) school bus replacement fund; and16 (D) (A) operations fund; and17 (B) racial balance fund.18 (3) Divide the amount computed under subdivision (1) by the19 amount computed under subdivision (2) and express it as a20 percentage.21 A school corporation that desires to be an eligible school corporation22 under this section must submit a written request for a certification by23 the department of local government finance that the computation of the24 school corporation's percentage computed under this subsection is25 correct. The department of local government finance shall, not later26 than ten (10) working days after the date the department receives the27 school corporation's request, certify the percentage computed under28 this subsection for the school corporation.29 (d) A school corporation that desires to be an eligible school30 corporation under this section shall conduct a public hearing and31 provide notice of the purpose of the hearing and the time, date, and32 place of the hearing, published as required by IC 5-3-1, before the33 school corporation may adopt a resolution under this section. At the34 public hearing, the governing body must provide the following35 information:36 (1) The annual debt service payments, applicable debt service tax37 rate, and total debt service payments for the bonds proposed to be38 retired or refunded.39 (2) The annual debt service payments, applicable debt service40 fund tax rate, and total debt service payments for the proposed41 refunding bonds.42 (3) The annual increment for each year that the bonds that are

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1 being retired or refunded would have been outstanding and any2 other benefits to be derived from issuing the refunding bonds.3 (e) If at least one (1) taxpayer appearing at the public hearing under4 subsection (d) objects to the proposed resolution and files a written5 objection with the governing body of the school corporation and the6 county auditor not more than ten (10) days after the public hearing, a7 petition requesting the application of a petition and remonstrance8 process may be filed not more than thirty (30) days after the public9 hearing by one hundred (100) persons who are either owners of

10 property within the school corporation or registered voters residing11 within the school corporation. Except as provided in this subsection,12 the provisions of IC 6-1.1-20-3.1(b) governing the initiation of a13 petition and remonstrance process for a controlled project (including14 the provisions governing verification of petitions) apply to a petition15 under this subsection requesting the application of a petition and16 remonstrance process. The following apply if a sufficient petition17 requesting the application of a petition and remonstrance process has18 been filed as set forth in this subsection:19 (1) The petition and remonstrance process prescribed by20 IC 6-1.1-20-3.2(b) for controlled projects shall be used to21 determine whether the governing body of the school corporation22 may adopt a resolution under subsection (g) and issue refunding23 bonds as provided in subsection (g).24 (2) The governing body of the school corporation may not adopt25 a resolution under subsection (g) and may not issue refunding26 bonds as provided in subsection (g) unless more individuals sign27 the petition for the bond refunding under this subsection than the28 number of individuals signing a remonstrance against the bond29 refunding under this subsection.30 Except as provided in this subsection, the provisions of31 IC 6-1.1-20-3.2(b) governing the petition and remonstrance process for32 a controlled project apply to a petition and remonstrance process under33 this subsection.34 (f) Except as provided in subsection (e), IC 6-1.1-20 does not apply35 to bonds issued under this section.36 (g) A school corporation that desires to be an eligible school37 corporation under this section must, before January 1, 2019, and38 notwithstanding any other law, adopt a resolution that sets forth the39 following:40 (1) The determinations made under subsection (c), including the41 department of local government finance's certification of the42 percentage computed under subsection (c).

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1 (2) A determination providing for the:2 (A) issuance of bonds to refund not more than fifty percent3 (50%) of outstanding bonds or leases issued by or on behalf of4 the school corporation before January 1, 2009; and5 (B) payment of redemption premiums and the costs of the6 refunding.7 (3) With respect to the refunding bonds, the following:8 (A) The maximum principal amount.9 (B) The maximum interest rate.

10 (C) The annual lease or debt service payment.11 (D) The final maturity date.12 (E) The estimated amount of the increment that will occur for13 each year that the bonds that are being retired or refunded by14 the issuance of refunding bonds would have been outstanding.15 (F) A finding that the annual debt service or lease payment on16 the refunding bonds will not increase the annual debt service17 or lease payment above the annual debt service or lease18 payment approved by the school corporation for the original19 project.20 If the governing body adopts a resolution under this section, the21 governing body must publish notice of the adoption of the resolution22 as required by IC 5-3-1.23 (h) An eligible school corporation may issue refunding bonds as24 permitted by this section. In addition, an eligible school corporation25 may extend the repayment period beyond the repayment period for the26 bonds that are being retired or refunded by the issuance of refunding27 bonds. However, the repayment period may be extended only once for28 a particular bond, and the extension may not exceed ten (10) years after29 the latest maturity date for any of the bonds being retired or refunded30 by the eligible school corporation under this section.31 (i) Property taxes imposed by an eligible school corporation to pay32 debt service for bonds permitted by this section shall be considered for33 purposes of calculating the limits to property tax liability under Article34 10, Section 1 of the Constitution of the State of Indiana and for35 calculating a person's credit under IC 6-1.1-20.6-7.5. However,36 property taxes imposed by an eligible school corporation through37 December 31, 2019, to pay debt service for bonds permitted by this38 section may not be considered in an eligible county, as used in Article39 10, Section 1(h) of the Constitution of the State of Indiana, for purposes40 of calculating the limits to property tax liability under Article 10,41 Section 1 of the Constitution of the State of Indiana or for calculating42 a person's credit under IC 6-1.1-20.6-7.5.

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1 SECTION 2. IC 5-10.1-6-1 IS AMENDED TO READ AS2 FOLLOWS [EFFECTIVE JULY 1, 2018]: Sec. 1. (a) The state shall3 pay the employer contributions for state employees.4 (b) After June 30, 1987, 2018, a school corporation may transfer5 from its general fund, without an appropriation, to its employment tax6 fund an amount necessary to make the employer contributions.7 Notwithstanding IC 36-1-8-4, a school corporation is not required to8 reimburse its general fund due to any transfers under this subsection.9 only pay the employer contributions, without an appropriation,

10 from the school corporation's education fund.11 (c) If state employees receive compensation from federal funds,12 contributions shall be made from the federal funds equal to the13 matching contribution which would be due on the compensation.14 SECTION 3. IC 5-11-10.5-5 IS AMENDED TO READ AS15 FOLLOWS [EFFECTIVE JULY 1, 2018]: Sec. 5. (a) Upon the16 preparation and transmission of the copies of the list of the outstanding17 warrants or checks, the treasurer of the political subdivision shall enter18 the amounts so listed as a receipt into the fund or funds from which19 they were originally drawn and shall also remove the warrants or20 checks from the record of outstanding warrants or checks.21 (b) If the disbursing officer does not serve also as treasurer of the22 political subdivision, the disbursing officer shall also enter the amounts23 so listed as a receipt into the fund or funds from which the warrants or24 checks were originally drawn. If the fund from which the warrant or25 check was originally drawn is not in existence, or cannot be26 ascertained, the amount of the outstanding warrant or check shall be27 receipted into the general fund of the political subdivision. However,28 in the case of a school corporation, the warrant or check shall be29 receipted into the operations fund.30 SECTION 4. IC 5-14-3.7-16, AS ADDED BY P.L.84-2014,31 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE32 JULY 1, 2018]: Sec. 16. (a) The department of local government33 finance shall develop indicators of fiscal health for evaluating the fiscal34 health of a school corporation. The department of local government35 finance may consider including any of the following in the indicators36 developed under this subsection:37 (1) The cash balance of a school corporation.38 (2) The debt to revenue ratio of a school corporation.39 (3) The condition of a school corporation's property tax base as40 measured by both the assessed value of the school corporation41 and the amount of per capita revenue generated from the school42 corporation's tax base.

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1 (4) The per capita amount of a school corporation's general2 education fund operating revenue. and its operations fund.3 (5) Any trends in the amount of a school corporation's tax4 revenue.5 (6) Whether a school corporation maintains a structural deficit or6 a structural surplus.7 (7) The extent that the school corporation is affected by tax8 increment financing districts.9 (8) The extent that the school corporation's property tax base is

10 affected by exempt properties.11 (9) The school corporation's bond rating.12 (10) The amount of retiree benefits paid by the school13 corporation.14 (11) The amount of pension contributions paid on behalf of the15 school corporation's employees.16 (12) Any other factor that the department of local government17 finance considers relevant to evaluating the fiscal health of a18 school corporation.19 (b) The department of local government finance shall use the20 indicators developed under subsection (a) and the associated fiscal data21 to present the information for evaluating the fiscal health of each22 school corporation on the Indiana transparency Internet web site. The23 information must be presented in a manner that:24 (1) can be conveniently and easily accessed from a single web25 page; and26 (2) is commonly known as an Internet dashboard.27 The information must be available on the Indiana transparency Internet28 web site in the format required by this subsection before July 1, 2015.29 (c) Neither the department of local government finance nor any30 other state agency may use the fiscal health indicators developed under31 this section to assign a school corporation a summative grade.32 SECTION 5. IC 5-14-3.8-8, AS ADDED BY P.L.84-2014,33 SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE34 JULY 1, 2018]: Sec. 8. (a) The department shall develop indicators of35 fiscal health for evaluating the fiscal health of a political subdivision.36 The department may consider including any of the following in the37 indicators developed under this subsection:38 (1) The cash balance of a political subdivision.39 (2) The debt to revenue ratio of a political subdivision.40 (3) The condition of a political subdivision's property tax base and41 income tax base, if any, as measured by both the assessed value42 of the political subdivision and the amount of per capita revenue

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1 generated from the political subdivision's tax bases.2 (4) The per capita amount of a political subdivision's general fund3 operating revenue or in the case of a school corporation, the4 school corporation's education fund and operations fund5 revenue.6 (5) Any trends in the amount of a political subdivision's tax7 revenue.8 (6) Whether a political subdivision maintains a structural deficit9 or a structural surplus.

10 (7) The number and size of the tax increment financing districts11 designated by a redevelopment commission established by the12 political subdivision, if any.13 (8) The extent that the political subdivision is affected by tax14 increment financing districts.15 (9) The extent that the political subdivision's property tax base is16 affected by exempt properties.17 (10) The political subdivision's bond rating.18 (11) The amount of retiree benefits paid by the political19 subdivision.20 (12) The amount of pension contributions paid on behalf of the21 political subdivision's employees.22 (13) Any other factor that the department considers relevant to23 evaluating the fiscal health of a political subdivision.24 (b) The department shall use the indicators developed under25 subsection (a) and the associated fiscal data to present the information26 for evaluating the fiscal health of a political subdivision on the Indiana27 transparency Internet web site. The information must be presented in28 a manner that:29 (1) can be conveniently and easily accessed from a single web30 page; and31 (2) is commonly known as an Internet dashboard.32 The information must be available on the Indiana transparency Internet33 web site in the format required by this subsection before July 1, 2015.34 (c) Neither the department of local government finance nor any35 other state agency may use the fiscal health indicators developed under36 this section to assign a political subdivision a summative grade.37 SECTION 6. IC 6-1.1-1-3, AS AMENDED BY P.L.137-2012,38 SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE39 JULY 1, 2018]: Sec. 3. (a) Except as provided in subsection (b),40 "assessed value" or "assessed valuation" means an amount equal to:41 (1) for assessment dates before March 1, 2001, thirty-three and42 one-third percent (33 1/3%) of the true tax value of property; and

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1 (2) for assessment dates after February 28, 2001, the true tax2 value of property.3 (b) For purposes of calculating a budget, rate, or levy under4 IC 6-1.1-17, IC 6-1.1-18, IC 6-1.1-18.5, IC 6-1.1-20, IC 20-46-4,5 IC 20-46-5, and IC 20-46-6, IC 20-46-8, "assessed value" or "assessed6 valuation" does not include the net assessed value of tangible property7 excluded and kept separately on a tax duplicate by a county auditor8 under IC 6-1.1-17-0.5.9 SECTION 7. IC 6-1.1-15-10.5, AS AMENDED BY P.L.203-2016,

10 SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE11 JULY 1, 2018]: Sec. 10.5. (a) The fiscal officer of a taxing unit may12 establish a separate fund known as the property tax assessment appeals13 fund to hold property tax receipts that are attributable to an increase in14 the taxing unit's tax rate caused by a reduction in the taxing unit's net15 assessed value under IC 6-1.1-17-0.5.16 (b) A taxing unit may transfer property tax receipts from a fund that17 is not a debt service fund to the taxing unit's property tax assessment18 appeals fund. A taxing unit may not transfer property tax receipts from19 a debt service fund to the taxing unit's property tax assessment appeals20 fund.21 (c) A taxing unit may use money in the taxing unit's property tax22 assessment appeals fund only to pay the following:23 (1) Expenses incurred by a county assessor in defending appeals24 prosecuted under this chapter with respect to property located in25 the taxing unit.26 (2) Refunds under section 11 of this chapter.27 (d) The balance in a taxing unit's property tax assessment appeals28 fund may not exceed five percent (5%) of the amount budgeted by the29 taxing unit for a particular year.30 (e) Money transferred to a taxing unit's property tax assessment31 appeals fund is not considered miscellaneous revenue. Both the taxing32 unit and the department of local government finance shall disregard33 any balance in the taxing unit's property tax assessment appeals fund34 in the determination of the taxing unit's property tax levy, property tax35 rate, and budget (except for appropriations for the purposes permitted36 by subsection (c)) for a particular calendar year.37 (f) Property tax receipts that qualify as levy excess under38 IC 6-1.1-18.5-17 and IC 20-44-3 IC 20-46-8 must be treated as levy39 excess and are not eligible for transfer to a taxing unit's property tax40 assessment appeals fund.41 SECTION 8. IC 6-1.1-18-12, AS AMENDED BY P.L.232-2015,42 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE

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1 JULY 1, 2018]: Sec. 12. (a) For purposes of this section, "maximum2 rate" refers to the maximum:3 (1) property tax rate or rates; or4 (2) special benefits tax rate or rates;5 referred to in the statutes listed in subsection (d).6 (b) The maximum rate for taxes first due and payable after 2003 is7 the maximum rate that would have been determined under subsection8 (e) for taxes first due and payable in 2003 if subsection (e) had applied9 for taxes first due and payable in 2003.

10 (c) The maximum rate must be adjusted each year to account for the11 change in assessed value of real property that results from:12 (1) an annual adjustment of the assessed value of real property13 under IC 6-1.1-4-4.5;14 (2) a general reassessment of real property under IC 6-1.1-4-4; or15 (3) a reassessment under a county's reassessment plan prepared16 under IC 6-1.1-4-4.2.17 (d) The statutes to which subsection (a) refers are:18 (1) IC 8-10-5-17;19 (2) IC 8-22-3-11;20 (3) IC 8-22-3-25;21 (4) IC 12-29-1-1;22 (5) IC 12-29-1-2;23 (6) IC 12-29-1-3;24 (7) IC 12-29-3-6;25 (8) IC 13-21-3-12;26 (9) IC 13-21-3-15;27 (10) IC 14-27-6-30;28 (11) IC 14-33-7-3;29 (12) IC 14-33-21-5;30 (13) IC 15-14-7-4;31 (14) IC 15-14-9-1;32 (15) IC 15-14-9-2;33 (16) IC 16-20-2-18;34 (17) IC 16-20-4-27;35 (18) IC 16-20-7-2;36 (19) IC 16-22-14;37 (20) IC 16-23-1-29;38 (21) IC 16-23-3-6;39 (22) IC 16-23-4-2;40 (23) IC 16-23-5-6;41 (24) IC 16-23-7-2;42 (25) IC 16-23-8-2;

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1 (26) IC 16-23-9-2;2 (27) IC 16-41-15-5;3 (28) IC 16-41-33-4;4 (29) IC 20-46-2-3 (before its repeal on January 1, 2009);5 (30) IC 20-46-6-5 (before its repeal on July 1, 2018);6 (31) IC 20-49-2-10;7 (32) IC 36-1-19-1;8 (33) IC 23-14-66-2;9 (34) IC 23-14-67-3;

10 (35) IC 36-7-13-4;11 (36) IC 36-7-14-28;12 (37) IC 36-7-15.1-16;13 (38) IC 36-8-19-8.5;14 (39) IC 36-9-6.1-2;15 (40) IC 36-9-17.5-4;16 (41) IC 36-9-27-73;17 (42) IC 36-9-29-31;18 (43) IC 36-9-29.1-15;19 (44) IC 36-10-6-2;20 (45) IC 36-10-7-7;21 (46) IC 36-10-7-8;22 (47) IC 36-10-7.5-19;23 (48) IC 36-10-13-5 (before the power to impose a levy was24 removed on July 1, 2018);25 (49) IC 36-10-13-7 (before the power to impose a levy was26 removed on July 1, 2018);27 (50) IC 36-10-14-4 (before the power to impose a levy was28 removed on July 1, 2018);29 (51) IC 36-12-7-7;30 (52) IC 36-12-7-8;31 (53) IC 36-12-12-10;32 (54) a statute listed in IC 6-1.1-18.5-9.8; and33 (55) any statute enacted after December 31, 2003, that:34 (A) establishes a maximum rate for any part of the:35 (i) property taxes; or36 (ii) special benefits taxes;37 imposed by a political subdivision; and38 (B) does not exempt the maximum rate from the adjustment39 under this section.40 (e) For property tax rates imposed for property taxes first due and41 payable after December 31, 2013, the new maximum rate under a42 statute listed in subsection (d) is the tax rate determined under STEP

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1 EIGHT of the following STEPS:2 STEP ONE: Except as provided in subsection (g), Determine the3 maximum rate for the political subdivision levying a property tax4 or special benefits tax under the statute for the previous calendar5 year.6 STEP TWO: Determine the actual percentage change (rounded to7 the nearest one-hundredth percent (0.01%)) in the assessed value8 of the taxable property from the previous calendar year to the year9 in which the affected property taxes will be imposed.

10 STEP THREE: Determine the three (3) calendar years that11 immediately precede the year in which the affected property taxes12 will be imposed.13 STEP FOUR: Compute separately, for each of the calendar years14 determined in STEP THREE, the actual percentage change15 (rounded to the nearest one-hundredth percent (0.01%)) in the16 assessed value (before the adjustment, if any, under17 IC 6-1.1-4-4.5) of the taxable property from the preceding year.18 STEP FIVE: Divide the sum of the three (3) quotients computed19 in STEP FOUR by three (3).20 STEP SIX: Determine the greater of the following:21 (A) Zero (0).22 (B) The STEP FIVE result.23 STEP SEVEN: Determine the greater of the following:24 (A) Zero (0).25 (B) The result of the STEP TWO percentage minus the STEP26 SIX percentage, if any.27 STEP EIGHT: Determine the quotient of the STEP ONE tax rate28 divided by the sum of one (1) plus the STEP SEVEN percentage,29 if any.30 (f) The department of local government finance shall compute the31 maximum rate allowed under subsection (e) and provide the rate to32 each political subdivision with authority to levy a tax under a statute33 listed in subsection (d).34 (g) This subsection applies only when calculating the maximum rate35 for taxes due and payable in calendar year 2013. The STEP ONE result36 is the greater of the following:37 (1) The actual maximum rate established for property taxes first38 due and payable in calendar year 2012.39 (2) The maximum rate that would have been established for40 property taxes first due and payable in calendar year 2012 if the41 maximum rate had been established under the formula under this42 section, as amended in the 2012 session of the general assembly.

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1 (h) This subsection applies only when calculating the maximum rate2 allowed under subsection (e) for the Vincennes Community School3 Corporation with respect to property taxes first due and payable in4 2014. The subsection (e) STEP ONE result for the school corporation's5 capital projects fund is nineteen and forty-two hundredths cents6 ($0.1942).7 (i) This subsection does not apply when calculating the maximum8 rate for the Vincennes Community School Corporation. This subsection9 applies only when calculating the maximum rate for a school

10 corporation's capital projects fund for taxes due and payable in calendar11 year 2016. The subsection (e) STEP ONE result for purposes of the12 calculation of that maximum rate is the greater of the following:13 (1) The actual maximum rate established for the school14 corporation's capital projects fund for property taxes first due and15 payable in calendar year 2015.16 (2) The maximum rate that would have been established for the17 school corporation's capital projects fund for property taxes first18 due and payable in calendar year 2015 if the formula specified in19 subsection (e) had been in effect for the determination of20 maximum rates for each calendar year after 2006.21 SECTION 9. IC 6-1.1-20.3-6, AS AMENDED BY P.L.257-2013,22 SECTION 20, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE23 JULY 1, 2018]: Sec. 6. (a) The fiscal body and the executive of a24 political subdivision may jointly file a petition with the board seeking25 to have the political subdivision designated as a distressed political26 subdivision under this chapter.27 (b) The governing body and the superintendent of a school28 corporation may do any of the following:29 (1) Jointly file a petition with the board seeking relief under30 section 8.3 of this chapter.31 (2) Jointly file a petition with the board seeking to have the school32 corporation designated as a distressed political subdivision under33 this chapter.34 (3) Jointly file a petition with the board requesting authority to35 transfer before July 1, 2015, excess funds in the school36 corporation's debt service fund to the school corporation's37 transportation fund as provided in section 8.4 of this chapter.38 (c) The board may adopt procedures governing the timing and39 required content of a petition under subsection (a).40 SECTION 10. IC 6-1.1-20.6-9.8, AS AMENDED BY P.L.257-2013,41 SECTION 29, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE42 JULY 1, 2018]: Sec. 9.8. (a) This section applies to property taxes first

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1 due and payable after December 31, 2009.2 (b) The following definitions apply throughout this section:3 (1) "Debt service obligations of a political subdivision" refers to:4 (A) the principal and interest payable during a calendar year5 on bonds; and6 (B) lease rental payments payable during a calendar year on7 leases;8 of a political subdivision payable from ad valorem property taxes.9 (2) "Protected taxes" refers to the following:

10 (A) Property taxes that are exempted from the application of11 a credit granted under section 7 or 7.5 of this chapter by12 section 7(b), 7(c), 7.5(b), or 7.5(c) of this chapter or another13 law.14 (B) Property taxes imposed by a political subdivision to pay15 for debt service obligations of a political subdivision that are16 not exempted from the application of a credit granted under17 section 7 or 7.5 of this chapter by section 7(b), 7(c), 7.5(b), or18 7.5(c) of this chapter or any other law. Property taxes19 described in this subsection are subject to the credit granted20 under section 7 or 7.5 of this chapter by section 7(b), 7(c),21 7.5(b), or 7.5(c) of this chapter regardless of their designation22 as protected taxes.23 (3) "Unprotected taxes" refers to property taxes that are not24 protected taxes.25 (c) Except as provided in subsection (e) for property taxes due and26 payable in 2013, section 9.9 of this chapter, the total amount of27 revenue to be distributed to the fund for which the protected taxes were28 imposed shall be determined as if no credit were granted under section29 7 or 7.5 of this chapter. The total amount of the loss in revenue30 resulting from the granting of credits under section 7 or 7.5 of this31 chapter must reduce only the amount of unprotected taxes distributed32 to a fund using the following criteria:33 (1) The reduction may be allocated in the amounts determined by34 the political subdivision using a combination of unprotected taxes35 of the political subdivision in those taxing districts in which the36 credit caused a reduction in protected taxes.37 (2) The tax revenue and each fund of any other political38 subdivisions must not be affected by the reduction.39 (d) When:40 (1) the revenue that otherwise would be distributed to a fund41 receiving only unprotected taxes is reduced entirely under42 subsection (c) and the remaining revenue is insufficient for a fund

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1 receiving protected taxes to receive the revenue specified by2 subsection (c); or3 (2) there is not a fund receiving only unprotected taxes from4 which to distribute revenue;5 the revenue distributed to the fund receiving protected taxes must also6 be reduced. If the revenue distributed to a fund receiving protected7 taxes is reduced, the political subdivision may transfer money from one8 (1) or more of the other funds of the political subdivision to offset the9 loss in revenue to the fund receiving protected taxes. The transfer is

10 limited to the amount necessary for the fund receiving protected taxes11 to receive the revenue specified under subsection (c). The amount12 transferred shall be specifically identified as a debt service obligation13 transfer for each affected fund.14 (e) This subsection applies to property taxes due and payable in15 2013. The total amount of the loss in revenue resulting from the16 granting of credits under section 7 or 7.5 of this chapter must reduce17 the amount of protected and unprotected property taxes distributed to18 a fund in proportion to the property tax levy imposed for that fund19 relative to the total of all protected and unprotected property tax levies20 imposed by the political subdivision. The allocations shall be made21 after the political subdivision receives its distribution.22 SECTION 11. IC 6-1.1-20.6-9.9, AS AMENDED BY P.L.151-2016,23 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE24 JULY 1, 2017]: Sec. 9.9. (a) If:25 (1) a school corporation in 2017, or 2018, or 2019 issues new26 bonds or enters into a new lease rental agreement for which the27 school corporation is imposing or will impose a debt service levy28 other than:29 (A) to refinance or renew prior bond or lease rental obligations30 existing before January 1, 2017; or31 (B) indebtedness that is approved in a local public question or32 referendum under IC 6-1.1-20 or any other law; and33 (2) the school corporation's:34 (A) total debt service levy in 2017 or 2018 or 2019 is greater35 than the school corporation's total debt service levy in 2016;36 and37 (B) total debt service tax rate in 2018 or 2019 is greater38 than the school corporation's total debt service tax rate in39 2016;40 the school corporation is not eligible to allocate credits proportionately41 under this section.42 (b) Subject to subsection (a), a school corporation is eligible to

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1 allocate credits proportionately under this section for 2016, 2017, or2 2018, or 2019 if the school corporation's percentage computed under3 this subsection is at least ten percent (10%) for its transportation fund4 levy for that year (for 2017 and 2018) or operations fund levy after5 2018, as certified by the department of local government finance. A6 school corporation shall compute its percentage under this subsection7 as follows:8 (1) Compute the amount of credits granted under this chapter9 against the school corporation's levy for the school corporation's

10 transportation fund (for 2017 and 2018) or operations fund11 after 2018.12 (2) Compute the school corporation's levy for the school13 corporation's transportation fund (for 2017 and 2018) or14 operations fund levy after 2018.15 (3) Divide the amount computed under subdivision (1) by the16 amount computed under subdivision (2) and express it as a17 percentage.18 The computation must be made by taking into account the requirements19 of section 9.8 of this chapter regarding protected taxes and the impact20 of credits granted under this chapter on the revenue to be distributed to21 the school corporation's transportation fund (for 2017 and 2018) or22 operations fund after 2018 for the particular year.23 (c) A school corporation that desires to be an eligible school24 corporation under this section must, before May 1 of the year for which25 it wants a determination, submit a written request for a certification by26 the department of local government finance that the computation of the27 school corporation's percentage under subsection (b) is correct. The28 department of local government finance shall, not later than June 1 of29 that year, determine whether the percentage computed by the school30 corporation is accurate and certify whether the school corporation is31 eligible under this section.32 (d) For a school corporation that is certified as eligible under this33 section, the school corporation may allocate the effect of the credits34 granted under this chapter proportionately among all the school35 corporation's property tax funds that are not exempt under section36 7.5(b) or 7.5(c) of this chapter, based on the levy for each fund and37 without taking into account the requirements of section 9.8 of this38 chapter regarding protected taxes.39 SECTION 12. IC 6-1.1-21.3-3, AS ADDED BY P.L.182-2009(ss),40 SECTION 156, IS AMENDED TO READ AS FOLLOWS41 [EFFECTIVE JULY 1, 2018]: Sec. 3. (a) The board, after review by the42 budget committee, shall determine the terms of a loan made under this

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1 chapter, subject to the following:2 (1) The loan must be repaid not later than ten (10) years after the3 date on which the loan is made.4 (2) The terms of the loan must allow for prepayment of the loan5 without penalty.6 (3) The maximum amount of the loan that a qualified taxing unit7 may receive with respect to a default described in section 1(c)(3)8 of this chapter on one (1) or more payments of property taxes first9 due and payable in a calendar year is the amount, as determined

10 by the board, of revenue shortfall for the qualified taxing unit that11 results from the default for that calendar year.12 (b) The board may disburse in installments the proceeds of a loan13 made under this chapter.14 (c) A qualified taxing unit may repay a loan made under this chapter15 from any of the following:16 (1) Property tax revenues of the qualified taxing unit that are17 subject to the levy limitations imposed by IC 6-1.1-18.5.18 (2) Property tax revenues of the qualified taxing unit that are not19 subject to levy limitations as provided in IC 6-1.1-18.5-21.20 (3) The qualified taxing unit's debt service fund.21 (4) Any other source of revenues (other than property taxes) that22 is legally available to the qualified taxing unit.23 The payment of any installment on a loan made under this chapter24 constitutes a first charge against the property tax revenues described in25 subdivision (1) or (2) that are collected by the qualified taxing unit26 during the calendar year the installment is due and payable.27 (d) The obligation to repay a loan made under this chapter is not a28 basis for the qualified taxing unit to obtain an excessive tax levy under29 IC 6-1.1-18.5 or IC 20-44-3. IC 20-46-8.30 (e) Whenever the board receives a payment on a loan made under31 this chapter, the board shall deposit the amount paid in the32 counter-cyclical revenue and economic stabilization fund.33 SECTION 13. IC 6-1.1-21.3-4, AS ADDED BY P.L.182-2009(ss),34 SECTION 156, IS AMENDED TO READ AS FOLLOWS35 [EFFECTIVE JULY 1, 2018]: Sec. 4. (a) As used in this section,36 "delinquent tax" means any tax not paid during the calendar year in37 which the tax was first due and payable.38 (b) Except as provided in subsection (c), the following are not39 considered to be part of the ad valorem property tax levy actually40 collected by the qualified taxing unit for taxes first due and payable41 during a particular calendar year for the purpose of calculating the levy42 excess under IC 6-1.1-18.5-17 and IC 20-44-3: IC 20-46-8:

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1 (1) The proceeds of a loan received by the qualified taxing unit2 under this chapter.3 (2) The receipt by a qualified taxing unit of any payment of4 delinquent tax owed by a qualifying taxpayer.5 (c) Delinquent tax owed by a qualifying taxpayer received by a6 qualified taxing unit:7 (1) must first be used toward the retirement of an outstanding loan8 made under this chapter; and9 (2) is considered, only to the extent that the amount received

10 exceeds the amount of the outstanding loan, to be part of the ad11 valorem property tax levy actually collected by the qualified12 taxing unit for taxes first due and payable during a particular13 calendar year for the purpose of calculating the levy excess under14 IC 6-1.1-18.5-17 and IC 20-44-3. IC 20-46-8.15 (d) If a qualifying taxpayer pays delinquent tax during the term of16 repayment of an outstanding loan made under this chapter, the17 remaining loan balance is repayable in equal installments over the18 remainder of the original term of repayment.19 (e) Proceeds of a loan made under this chapter may be expended by20 a qualified taxing unit only to pay obligations of the qualified taxing21 unit that have been incurred under appropriations for operating22 expenses made by the qualified taxing unit and approved by the23 department of local government finance.24 SECTION 14. IC 6-1.1-21.5-6, AS AMENDED BY P.L.146-2008,25 SECTION 243, IS AMENDED TO READ AS FOLLOWS26 [EFFECTIVE JULY 1, 2018]: Sec. 6. (a) The receipt by the qualified27 taxing unit of the loan proceeds is not considered to be part of the ad28 valorem property tax levy actually collected by the qualified taxing unit29 for taxes first due and payable during a particular calendar year for the30 purpose of calculating the levy excess under IC 6-1.1-18.5-17 and31 IC 20-44-3. IC 20-46-8. The receipt by the qualified taxing unit of any32 payment of delinquent tax owed by a taxpayer in bankruptcy is33 considered to be part of the ad valorem property tax levy actually34 collected by the qualified taxing unit for taxes first due and payable35 during a particular calendar year for the purpose of calculating the levy36 excess under IC 6-1.1-18.5-17 and IC 20-44-3. IC 20-46-8.37 (b) The loan proceeds and any payment of delinquent tax may be38 expended by the qualified taxing unit only to pay debts of the qualified39 taxing unit that have been incurred pursuant to duly adopted40 appropriations approved by the department of local government finance41 for operating expenses.42 (c) In the event the sum of the receipts of the qualified taxing unit

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1 that are attributable to:2 (1) the loan proceeds; and3 (2) the payment of property taxes owed by a taxpayer in a4 bankruptcy proceeding initially filed in 2000 and payable in 2001;5 exceeds sixteen million dollars ($16,000,000), the excess as received6 during any calendar year or years shall be set aside and treated for the7 calendar year when received as a levy excess subject to8 IC 6-1.1-18.5-17 or IC 20-44-3. IC 20-46-8. In calculating the payment9 of property taxes as provided in subdivision (2), the amount of property

10 tax credit finally allowed under IC 6-1.1-21-5 (before its repeal) in11 respect to such taxes is considered a payment of such property taxes.12 (d) As used in this section, "delinquent tax" means any tax owed by13 a taxpayer in a bankruptcy proceeding initially filed in 2000 and that14 is not paid during the calendar year for which it was first due and15 payable.16 SECTION 15. IC 6-1.1-21.8-6, AS AMENDED BY P.L.146-2008,17 SECTION 246, IS AMENDED TO READ AS FOLLOWS18 [EFFECTIVE JULY 1, 2018]: Sec. 6. (a) As used in this section,19 "delinquent tax" means any tax:20 (1) owed by a taxpayer in a bankruptcy proceeding initially filed21 in 2001; and22 (2) not paid during the calendar year in which it was first due and23 payable.24 (b) Except as provided in subsection (d), the proceeds of a loan25 received by the qualified taxing unit under this chapter are not26 considered to be part of the ad valorem property tax levy actually27 collected by the qualified taxing unit for taxes first due and payable28 during a particular calendar year for the purpose of calculating the levy29 excess under IC 6-1.1-18.5-17 and IC 20-44-3. IC 20-46-8. The receipt30 by a qualified taxing unit of any payment of delinquent tax owed by a31 taxpayer in bankruptcy is considered to be part of the ad valorem32 property tax levy actually collected by the qualified taxing unit for33 taxes first due and payable during a particular calendar year for the34 purpose of calculating the levy excess under IC 6-1.1-18.5-17 and35 IC 20-44-3. IC 20-46-8.36 (c) The proceeds of a loan made under this chapter must first be37 used to retire any outstanding loans made by the department of38 commerce (including any loans made by the department of commerce39 that are transferred to the Indiana economic development corporation)40 to cover a qualified taxing unit's revenue shortfall resulting from the41 taxpayer's default on property tax payments. Any remaining proceeds42 of a loan made under this chapter and any payment of delinquent taxes

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1 by the taxpayer may be expended by the qualified taxing unit only to2 pay obligations of the qualified taxing unit that have been incurred3 under appropriations for operating expenses made by the qualified4 taxing unit and approved by the department of local government5 finance.6 (d) If the sum of the receipts of a qualified taxing unit that are7 attributable to:8 (1) the loan proceeds; and9 (2) the payment of property taxes owed by a taxpayer in a

10 bankruptcy proceeding and payable in November 2001, May11 2002, or November 2002;12 exceeds the sum of the taxpayer's property tax liability attributable to13 the qualified taxing unit for property taxes payable in November 2001,14 May 2002, and November 2002, the excess as received during any15 calendar year or years shall be set aside and treated for the calendar16 year when received as a levy excess subject to IC 6-1.1-18.5-17 or17 IC 20-44-3. IC 20-46-8. In calculating the payment of property taxes18 as referred to in subdivision (2), the amount of property tax credit19 finally allowed under IC 6-1.1-21-5 (before its repeal) in respect to20 those taxes is considered to be a payment of those property taxes.21 SECTION 16. IC 6-1.1-22-9.5, AS AMENDED BY P.L.146-2008,22 SECTION 253, IS AMENDED TO READ AS FOLLOWS23 [EFFECTIVE JULY 1, 2018]: Sec. 9.5. (a) This section applies only to24 property taxes first due and payable in a year that begins after25 December 31, 2003:26 (1) with respect to a homestead (as defined in IC 6-1.1-12-37);27 and28 (2) that are not payable in one (1) installment under section 9(c)29 of this chapter.30 (b) At any time before the mailing or transmission of tax statements31 for a year under section 8.1 of this chapter, a county may petition the32 department of local government finance to establish a schedule of33 installments for the payment of property taxes with respect to:34 (1) real property that are based on the assessment of the property35 in the immediately preceding year; or36 (2) a mobile home or manufactured home that is not assessed as37 real property that are based on the assessment of the property in38 the current year.39 The county fiscal body (as defined in IC 36-1-2-6) must approve a40 petition under this subsection.41 (c) The department of local government finance:42 (1) may not establish a date for:

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1 (A) an installment payment that is earlier than May 10 of the2 year in which the tax statement is mailed or transmitted;3 (B) the first installment payment that is later than November4 10 of the year in which the tax statement is mailed or5 transmitted; or6 (C) the last installment payment that is later than May 10 of7 the year immediately following the year in which the tax8 statement is mailed or transmitted; and9 (2) shall:

10 (A) prescribe the form of the petition under subsection (b);11 (B) determine the information required on the form; and12 (C) notify the county fiscal body, the county auditor, and the13 county treasurer of the department's determination on the14 petition not later than twenty (20) days after receiving the15 petition.16 (d) Revenue from property taxes paid under this section in the year17 immediately following the year in which the tax statement is mailed or18 transmitted under section 8.1 of this chapter:19 (1) is not considered in the determination of a levy excess under20 IC 6-1.1-18.5-17 or IC 20-44-3 IC 20-46-8 for the year in which21 the property taxes are paid; and22 (2) may be:23 (A) used to repay temporary loans entered into by a political24 subdivision for; and25 (B) expended for any other reason by a political subdivision in26 the year the revenue is received under an appropriation from;27 the year in which the tax statement is mailed or transmitted under28 section 8.1 of this chapter.29 SECTION 17. IC 6-3.6-6-21 IS ADDED TO THE INDIANA CODE30 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY31 1, 2018]: Sec. 21. A school corporation that receives a distribution32 of revenue under section 3 of this chapter may allocate the revenue33 among any of its funds.34 SECTION 18. IC 6-3.6-9-17, AS AMENDED BY THE35 TECHNICAL CORRECTIONS BILL OF THE 2017 GENERAL36 ASSEMBLY, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE37 JULY 1, 2018]: Sec. 17. (a) As used in this section, "fiscal body" has38 the meaning set forth in IC 36-1-2-6.39 (b) This section refers to a county's trust account maintained under40 the former local income tax laws set forth in IC 6-3.5-1.1, IC 6-3.5-6,41 and IC 6-3.5-7 (all as repealed January 1, 2017).42 (c) Before May 1, 2016, the budget agency shall make a one (1)

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1 time special distribution to each county having a positive balance in the2 county's trust account as of December 31, 2014.3 (d) The amount of the special distribution from a county's trust4 account is one hundred percent (100%) of the balance in the county's5 trust account as of December 31, 2014, as determined by the budget6 agency.7 (e) Before May 1, 2016, the budget agency and the department of8 local government finance shall do the following:9 (1) For any county having a positive balance in the county's trust

10 account as of December 31, 2014, determine the amount of the11 trust account balance as of December 31, 2014 (referred to as the12 county's trust balance amount).13 (2) Determine each taxing unit's share of the county's trust14 balance amount (referred to as the taxing unit's allocation15 amount), using the following allocation method for each former16 tax:17 (A) For county adjusted gross income taxes (IC 6-3.5-1.1)18 (repealed) as follows:19 (i) First, the taxing units that would have received property20 tax replacement credits shall be allocated that part of the21 county's allocation amount that would have been considered22 property tax replacements under IC 6-3.5-1.1 (repealed).23 (ii) The remaining amount of the county's allocation amount24 shall be allocated in the same manner as certified shares25 under IC 6-3.5-1.1 (repealed).26 (B) For county option income taxes (IC 6-3.5-6) (repealed),27 the county's allocation amount shall be allocated in the same28 manner as certified shares under IC 6-3.5-6 (repealed).29 (C) For county economic development income taxes, the30 county's allocation amount shall be allocated in the same31 manner as a certified distribution under IC 6-3.5-7-12(b)32 (repealed) or IC 6-3.5-7-12(c) (repealed), whichever applies.33 (f) Before May 1, 2016, the budget agency and the department of34 local government finance shall jointly determine and provide to the35 county auditor the following:36 (1) The county's trust balance amount.37 (2) Each taxing unit's allocation amount.38 (g) Before June 1, 2016, the county auditor shall distribute to each39 taxing unit an amount equal to the taxing unit's allocation amount.40 (h) Money distributed to a county, city, or town may be expended41 only upon an appropriation by the county's, city's, or town's fiscal body42 as follows:

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1 (1) At least seventy-five percent (75%) of the special distribution2 must be:3 (A) used exclusively by the county, city, or town for:4 (i) engineering, land acquisition, construction, resurfacing,5 maintenance, restoration, or rehabilitation of both local and6 arterial road and street systems;7 (ii) the payment of principal and interest on bonds sold8 primarily to finance road, street, or thoroughfare projects;9 (iii) any local costs required to undertake a recreational or

10 reservoir road project under IC 8-23-5;11 (iv) the purchase, rental, or repair of highway equipment;12 (v) providing a match for a grant from the local road and13 bridge matching grant fund under IC 8-23-30; or14 (vi) capital projects for aviation related property or facilities,15 including capital projects of a board of aviation16 commissioners established under IC 8-22-2 or an airport17 authority established under IC 8-22-3-1; or18 (B) deposited in the county's, city's, or town's rainy day fund19 established under IC 36-1-8-5.1. The money deposited in a20 rainy day fund under this clause may not be appropriated from21 the rainy day fund or transferred to another fund under22 IC 36-1-8-5.1(g), unless the money will be used exclusively23 for purposes set forth in clause (A).24 (2) The remaining part of the special distribution may be used by25 the county, city, or town for any of the purposes of the county,26 city, or town.27 The amount received by a taxing unit that is not a county, city, or town28 shall be deposited in the taxing unit's rainy day fund established under29 IC 36-1-8-5.1. However, in the case of a school corporation, the30 school corporation may deposit the amount received in any of its31 funds.32 SECTION 19. IC 20-20-13-6, AS AMENDED BY P.L.133-2012,33 SECTION 185, IS AMENDED TO READ AS FOLLOWS34 [EFFECTIVE JULY 1, 2018]: Sec. 6. (a) The Senator David C. Ford35 educational technology fund is established to extend educational36 technologies to elementary and secondary schools. The fund may be37 used for:38 (1) the 4R's technology grant program to assist school39 corporations (on behalf of public schools) in purchasing40 technology equipment:41 (A) for kindergarten and grade 1 students, to learn reading,42 writing, and arithmetic using technology;

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1 (B) for students in all grades, to understand that technology is2 a tool for learning; and3 (C) for students in kindergarten through grade 3 who have4 been identified as needing remediation, to offer daily5 remediation opportunities using technology to prevent those6 students from failing to make appropriate progress at the7 particular grade level;8 (2) a school technology program developed by the department.9 The program may include grants to school corporations for the

10 purchase of:11 (A) equipment, hardware, and software;12 (B) learning and teaching systems; and13 (C) other materials;14 that promote student learning, as determined by the department.15 (3) providing educational technologies, including computers in16 the homes of students;17 (4) conducting educational technology training for teachers; and18 (5) other innovative educational technology programs.19 (b) The department may also use money in the fund under contracts20 entered into with the office of technology established by IC 4-13.1-2-121 to study the feasibility of establishing an information22 telecommunications gateway that provides access to information on23 employment opportunities, career development, and instructional24 services from data bases operated by the state among the following:25 (1) Elementary and secondary schools.26 (2) Postsecondary educational institutions.27 (3) Career and technical educational centers and institutions that28 are not postsecondary educational institutions.29 (4) Libraries.30 (5) Any other agencies offering education and training programs.31 (c) The fund consists of:32 (1) state appropriations;33 (2) private donations to the fund; or34 (3) any combination of the amounts described in subdivisions (1)35 through (2).36 (d) The fund shall be administered by the department.37 (e) Unexpended money appropriated to or otherwise available in the38 fund at the end of a state fiscal year does not revert to the state general39 fund but remains available to the department for use under this chapter.40 (f) Subject to section 7 of this chapter, a school corporation may use41 money from the school corporation's capital projects fund as permitted42 under IC 20-40-8 for educational technology equipment.

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1 SECTION 20. IC 20-20-13-7, AS AMENDED BY P.L.133-2012,2 SECTION 186, IS AMENDED TO READ AS FOLLOWS3 [EFFECTIVE JULY 1, 2018]: Sec. 7. (a) Notwithstanding any other4 law, a school corporation is not entitled to:5 (1) receive any money under this chapter;6 (2) use money from the school corporation's capital projects7 education fund for educational technology equipment under8 IC 20-40-8; IC 20-40-2; or9 (3) receive an advance from the common school fund for an

10 educational technology program under IC 20-49-4;11 unless the school corporation develops a three (3) year technology plan.12 (b) Each technology plan must include at least the following13 information:14 (1) A description of the school corporation's intent to integrate15 technology into the school corporation's curriculum.16 (2) A plan for providing inservice training.17 (3) A schedule for maintaining and replacing educational18 technology equipment.19 (4) A description of the criteria used to select the appropriate20 educational technology equipment for the appropriate use.21 (5) Other information requested by the department after22 consulting with the budget agency.23 (c) The department shall develop guidelines concerning the24 development of technology plans. The guidelines developed under this25 subsection are subject to the approval of the governor.26 SECTION 21. IC 20-20-13-12, AS AMENDED BY P.L.2-2006,27 SECTION 83, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE28 JULY 1, 2018]: Sec. 12. A school corporation that receives a grant29 under sections 6 through 9 of this chapter must deposit the grant in the30 school technology corporation's education fund.31 SECTION 22. IC 20-20-13-22, AS ADDED BY P.L.218-2005,32 SECTION 47, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE33 JULY 1, 2018]: Sec. 22. (a) This section applies in a year when a34 school corporation receives a grant under sections 13 through 24 of this35 chapter. The school corporation's capital projects operations fund36 budget must include an expenditure for technology that is not less than37 the school corporation's average annual expenditure for technology38 from the capital projects fund (before July 1, 2018) and from the39 education fund (after June 30, 2018) in the six (6) budget years40 preceding the year of the grant. If the Indiana School for the Blind and41 Visually Impaired established by IC 20-21-2-1 or the Indiana School42 for the Deaf established by IC 20-22-2-1 receives a grant under

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1 sections 13 through 24 of this chapter, the school's expenditures for2 technology in the year of the grant must exceed the school's average3 annual expenditure for technology in the six (6) budget years preceding4 the year of the grant.5 (b) For each year that a school corporation fails to observe6 subsection (a), the school corporation forfeits a grant under sections 137 through 24 of this chapter. The forfeit of the grant must occur in the8 first grant year after the school corporation fails to observe subsection9 (a).

10 SECTION 23. IC 20-20-13-24, AS AMENDED BY P.L.2-2006,11 SECTION 84, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE12 JULY 1, 2018]: Sec. 24. A school corporation that receives a grant13 under sections 13 through 24 of this chapter shall deposit the grant in14 the school technology corporation's education fund or operations15 fund, whichever is appropriate. If the Indiana School for the Blind16 and Visually Impaired or the Indiana School for the Deaf receives a17 grant under sections 13 through 24 of this chapter, the school shall18 deposit the grant in an account or fund that the school uses exclusively19 for the funding of technology.20 SECTION 24. IC 20-20-37.4-8, AS ADDED BY P.L.99-2009,21 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE22 JULY 1, 2018]: Sec. 8. A school corporation receiving a loan under23 this chapter shall repay the loan from24 (1) the school corporation's general fund; or25 (2) the school corporation's capital projects operations fund.26 SECTION 25. IC 20-23-4-21, AS ADDED BY P.L.1-2005,27 SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE28 JULY 1, 2018]: Sec. 21. (a) If the chairperson of the county committee29 does not receive the certification or combined certifications under30 section 20(f) of this chapter not later than ninety (90) days after the31 receipt by the county committee of the plan referred to in section 20(a)32 of this chapter, the judge of the circuit court of the county from which33 the county committee submitting the plan was appointed shall:34 (1) certify the public question under IC 3-10-9-3; and35 (2) order the county election board to conduct a special election36 in which the registered voters residing in the proposed community37 school corporation may vote to determine whether the corporation38 will be created.39 (b) If:40 (1) a primary election at which county officials are nominated; or41 (2) a general election at which county officials are elected;42 and for which the question can be certified in compliance with

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1 IC 3-10-9-3 is to be held not later than six (6) months after the receipt2 by the chairperson of the county committee of the plan referred to in3 section 20(a) of this chapter, regardless of whether the ninety (90) day4 period referred to in subsection (a) has expired, the judge shall order5 the county election board to conduct the special election to be held in6 conjunction with the primary or general election.7 (c) If a primary or general election will not be held in the six (6)8 month period referred to in subsection (b), the special election shall be9 held:

10 (1) not earlier than sixty (60) days; and11 (2) not later than one hundred twenty (120) days;12 after the expiration of the ninety (90) day period referred to in13 subsection (a).14 (d) The county election board shall give notice under IC 5-3-1 of the15 special election referred to in subsection (a).16 (e) The notice referred to in subsection (d) of a special election17 must:18 (1) clearly state that the election is called to afford the registered19 voters an opportunity to approve or reject a proposal for the20 formation of a community school corporation;21 (2) contain:22 (A) a general description of the boundaries of the community23 school corporation as set out in the plan;24 (B) a statement of the terms of adjustment of:25 (i) property;26 (ii) assets;27 (iii) debts; and28 (iv) liabilities;29 of an existing school corporation that is to be divided in the30 creation of the community school corporation;31 (C) the name of the community school corporation;32 (D) the number of members comprising the board of school33 trustees; and34 (E) the method of selecting the board of school trustees of the35 community school corporation; and36 (3) designate the date, time, and voting place or places at which37 the election will be held.38 (f) A special election referred to in subsection (a) is under the39 direction of the county election board in the county. The election board40 shall take all steps necessary to carry out the special election. If the41 special election is not conducted at a primary or general election, the42 cost of conducting the election is:

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1 (1) charged to each component school corporation embraced in2 the community school corporation in the same proportion as the3 component school corporation's assessed valuation is to the total4 assessed valuation of the community school corporation; and5 (2) paid:6 (A) from any current operating the school corporation's7 operations fund not otherwise appropriated of; and8 (B) without appropriation by;9 each component school corporation.

10 If a component school corporation is to be divided and its territory11 assigned to two (2) or more community corporations, the component12 school corporation's cost of the special election is in proportion to the13 corporation's assessed valuation included in the community school14 corporation.15 (g) The county election board shall place the public question on the16 ballot in the form prescribed by IC 3-10-9-4. The public question must17 state "Shall the (here insert name) community school corporation be18 formed as provided in the Reorganization Plan of the County19 Committee for the Reorganization of School Corporations?". Except as20 otherwise provided in this chapter, the election is governed by IC 3.21 (h) If a majority of the votes cast at a special election referred to in22 subsection (a) on the public question are in favor of the formation of23 the corporation, a community school corporation is created and takes24 effect on the earlier of:25 (1) the July 1; or26 (2) the January 1;27 that next follows the date of publication of the notice referred to in28 subsection (d).29 (i) If a public official fails to perform a duty required of the official30 under this section within the time prescribed in this section, the31 omission does not invalidate the proceedings taken under this section.32 (j) An action:33 (1) to contest the validity of the formation or creation of a34 community school corporation under this section;35 (2) to declare that a community school corporation:36 (A) has not been validly formed or created; or37 (B) is not validly existing; or38 (3) to enjoin the operation of a community school corporation;39 may not be instituted later than thirty (30) days after the date of the40 special election referred to in subsection (a).41 SECTION 26. IC 20-23-6-6, AS AMENDED BY P.L.2-2006,42 SECTION 95, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE

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1 JULY 1, 2018]: Sec. 6. (a) On the day and hour named in the notice2 filed under section 5 of this chapter, polls shall be opened and the votes3 of the registered voters shall be taken upon the public question of4 consolidating school corporations. The election shall be governed by5 IC 3, except as provided in this chapter.6 (b) The county election board shall conduct the election. The public7 question shall be placed on the ballot in the form prescribed by8 IC 3-10-9-4 and must state "Shall (here insert the names of the school9 corporations that the resolution proposes to consolidate) be

10 consolidated into a consolidated school corporation?".11 (c) A brief statement of the provisions in the resolution for12 appointment or election of a governing body may be placed on the13 ballot in the form prescribed by IC 3-10-9-4. A certificate of the votes14 cast for and against the consolidation of the school corporations shall15 be filed with:16 (1) the governing body of the school corporations subject to the17 election;18 (2) the state superintendent; and19 (3) the county recorder of each county in which a consolidated20 school corporation is located;21 together with a copy of the resolution.22 (d) If a majority of the votes cast at each of the elections is in favor23 of the consolidation of two (2) or more school corporations, the trustees24 of the school corporations shall proceed to consolidate the schools and25 provide the necessary buildings and equipment. In any school26 corporation where a petition was not filed and an election was not held,27 the failure on the part of the voters to file a petition for an election shall28 be considered to give the consent of the voters of the school29 corporation to the consolidation as set out in the resolution.30 (e) If the special election is not conducted at a primary or general31 election, the expense of the election shall be borne by the school32 corporation or each of the school corporations subject to the election33 and shall be paid out of the school general corporation's operations34 fund.35 SECTION 27. IC 20-23-6-8, AS AMENDED BY P.L.2-2006,36 SECTION 96, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE37 JULY 1, 2018]: Sec. 8. (a) Consolidated schools are under the control38 and management of the consolidated governing body created under this39 chapter, and a new consolidated school corporation comes into40 existence:41 (1) at the time specified in the resolutions provided in section 342 or 4 of this chapter; or

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1 (2) if a time is not specified, at the following times:2 (A) If a protest has not been filed and the creation is3 accomplished by the adoption of a joint resolution following4 publication of notice as provided in section 3 of this chapter,5 thirty (30) days after the adoption of the joint resolution.6 (B) If the creation is accomplished after an election as7 provided in section 6 of this chapter, thirty (30) days after the8 election.9 (b) The members of the governing body shall:

10 (1) take an oath to faithfully discharge the duties of office; and11 (2) meet at least five (5) days before the time the new12 consolidated school corporation comes into existence to organize.13 (c) The governing body shall meet to reorganize on August 1 of14 each year and at any time the personnel of the board is changed. At the15 organization or reorganization meeting, the members of the governing16 body shall elect the following:17 (1) A president.18 (2) A secretary.19 (3) A treasurer.20 (d) The treasurer, before starting the duties of the treasurer's office,21 shall execute a bond to the acceptance of the county auditor. The fee22 for the bond shall be paid from the school general operations fund of23 the consolidated school corporation. Any vacancy occurring in the24 membership in any governing body, other than vacancy in the office of25 an ex officio member, shall be filled in the following manner:26 (1) If the membership was originally made by appointment, the27 vacancy shall be filled by appointment by the legislative body of28 the:29 (A) city;30 (B) town;31 (C) township; or32 (D) other body;33 or other official making the original appointment.34 (2) If the membership was elected, the vacancy shall be filled by35 a majority vote of the remaining members of the governing body36 of the consolidated school corporation.37 (e) The members of the governing body, other than the township38 executive or ex officio member, shall receive compensation for services39 as fixed by resolution of the governing body. The members, other than40 the township executive or any ex officio member, may not receive more41 than two hundred dollars ($200) annually. Any:42 (1) township executive; or

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1 (2) ex officio member of the governing body;2 shall serve without additional compensation.3 (f) The governing body of a consolidated school corporation may4 elect and appoint personnel it considers necessary.5 SECTION 28. IC 20-23-6-9, AS AMENDED BY P.L.220-2015,6 SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE7 JULY 1, 2018]: Sec. 9. (a) When any:8 (1) school town;9 (2) school city;

10 (3) school township;11 (4) joint school; or12 (5) consolidated school;13 has become consolidated by resolution or election and the new14 governing body has been appointed and legally organized, the former15 school township, school town, school city, joint school, or consolidated16 school is considered abandoned.17 (b) All school:18 (1) property;19 (2) rights;20 (3) privileges; and21 (4) any indebtedness;22 from the abandoned school is considered to accrue to and be assumed23 by the new consolidated school corporation.24 (c) The title of property shall pass to and become vested in the new25 consolidated school corporation. All debts of the former school26 corporations shall be assumed and paid by the new consolidated school27 corporation. All the privileges and rights conferred by law upon the28 former:29 (1) school town;30 (2) school city;31 (3) school township;32 (4) joint school; or33 (5) consolidated school;34 are granted to the newly consolidated school corporation.35 (d) This subsection applies when the consolidated governing body36 of a consolidated school corporation decides that property acquired37 under subsection (b) from a township is no longer needed for school38 purposes. The governing body shall offer the property as a gift to the39 township that owned the property before the school was consolidated.40 If the property contains a structure that the governing body wishes to41 demolish, the governing body shall give written notice of the proposed42 demolition to the township. The township shall, within ninety (90) days

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1 after receiving the notice, inform the governing body in writing as to2 whether the township wishes to retain the structure. If the township3 wishes to retain the structure, the governing body may not demolish the4 structure before transferring the property. The township may sell or5 lease the property to an Indiana nonprofit corporation that is exempt6 from federal income taxation under Section 501 of the Internal7 Revenue Code. If the township board accepts the offer, the governing8 body shall give the township a quitclaim deed to the property. If the9 township board refuses the offer, the governing body may sell the

10 property in the manner provided in subsection (e).11 (e) This subsection provides the procedure for the sale of school12 property that is no longer needed for school purposes by the governing13 body of a consolidated school corporation. The governing body shall14 cause the property to be appraised at a fair cash value by:15 (1) one (1) disinterested resident freeholder of the school16 corporation offering the property for sale; and17 (2) two (2) disinterested appraisers licensed under IC 25-34.1;18 who are residents of Indiana. One (1) of the appraisers described under19 subdivision (2) must reside not more than fifty (50) miles from the20 property. The appraisals shall be made under oath and spread of record21 upon the records of the governing body. A sale may not be made for22 less than the appraised value, and the sale must be made for cash. The23 sale shall take place after the governing body gives notice under24 IC 5-3-1 of the terms, date, time, and place of sale.25 (f) Proceeds from a sale under subsection (e) shall be placed in a26 capital projects the operations fund of the consolidated school27 corporation. or other fund designated as the fund that is available for28 capital outlay of the school corporation.29 (g) This subsection applies when the consolidated governing body30 of a consolidated school corporation decides that property acquired31 under subsection (b) from a city or town is no longer needed for school32 purposes. The governing body shall offer the property as a gift to the33 city or town that owned the property before the school was34 consolidated. If the property contains a structure that the governing35 body wishes to demolish, the governing body shall give written notice36 of the proposed demolition to the city or town. The city or town shall,37 within ninety (90) days after receiving the notice, inform the governing38 body in writing as to whether the city or town wishes to retain the39 structure. If the city or town wishes to retain the structure, the40 governing body may not demolish the structure before transferring the41 property. If the fiscal body of the city or town accepts the offer, the42 governing body shall give the city or town a quitclaim deed to the

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1 property. If the fiscal body of the city or town refuses the offer, the2 governing body may sell the property in the manner provided in3 subsection (e).4 SECTION 29. IC 20-23-7-2, AS AMENDED BY P.L.233-2015,5 SECTION 66, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE6 JULY 1, 2018]: Sec. 2. (a) In any county or adjoining counties at least7 two (2) school corporations, including school towns, school cities,8 consolidated school corporations, joint schools, metropolitan school9 districts, township school districts, or community school corporations,

10 regardless of whether the consolidating school corporations are of the11 same or of a different character, may consolidate into one (1)12 metropolitan school district. Subject to subsection (h), the13 consolidation must be initiated by following either of the following14 procedures:15 (1) The board of school trustees, board of education, or other16 governing body (the board or other governing body is referred to17 elsewhere in this section as the "governing body") of each school18 corporation to be consolidated shall:19 (A) adopt substantially identical resolutions providing for the20 consolidation; and21 (B) publish a notice setting out the text of the resolution one22 (1) time under IC 5-3-1.23 The resolution must set forth any provision for staggering the24 terms of the board members of the metropolitan school district25 elected under this chapter. If, not more than thirty (30) days after26 publication of the resolution, a petition of protest, signed by at27 least twenty percent (20%) of the registered voters residing in the28 school corporation is filed with the clerk of the circuit court of29 each county where the voters who are eligible to sign the petition30 reside, a referendum election shall be held as provided in31 subsection (c).32 (2) Instead of the adoption of substantially identical resolutions in33 each of the proposed consolidating school corporations under34 subdivision (1), a referendum election under subsection (c) shall35 be held on the occurrence of all of the following:36 (A) At least twenty percent (20%) of the registered voters37 residing in a particular school corporation sign a petition38 requesting that the school corporation consolidate with another39 school corporation (referred to in this subsection as "the40 responding school corporation").41 (B) The petition described in clause (A) is filed with the clerk42 of the circuit court of each county where the voters who are

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1 eligible to sign the petition reside.2 (C) Not more than thirty (30) days after the service of the3 petition by the clerk of the circuit court to the governing body4 of the responding school corporation under subsection (b) and5 the certification of signatures on the petition occurs under6 subsection (b), the governing body of the responding school7 corporation adopts a resolution approving the petition and8 providing for the consolidation.9 (D) An approving resolution has the same effect as the

10 substantially identical resolutions adopted by the governing11 bodies under subdivision (1), and the governing bodies shall12 publish the notice provided under subdivision (1) not more13 than fifteen (15) days after the approving resolution is adopted.14 However, if a governing body that is a party to the15 consolidation fails to publish notice within the required fifteen16 (15) day time period, a referendum election still must be held17 as provided in subsection (c).18 If the governing body of the responding school corporation does19 not act on the petition within the thirty (30) day period described20 in clause (C), the governing body's inaction constitutes a21 disapproval of the petition request. If the governing body of the22 responding school corporation adopts a resolution disapproving23 the petition or fails to act within the thirty (30) day period, a24 referendum election as described in subsection (c) may not be25 held and the petition requesting the consolidation is defeated.26 (b) Any petition of protest under subsection (a)(1) or a petition27 requesting consolidation under subsection (a)(2) must show in the28 petition the date on which each person has signed the petition and the29 person's residence on that date. The petition may be executed in several30 counterparts, the total of which constitutes the petition. Each31 counterpart must contain the names of voters residing within a single32 county and shall be filed with the clerk of the circuit court of the33 county. Each counterpart must have attached to it the affidavit of the34 person circulating the counterpart that each signature appearing on the35 counterpart was affixed in that person's presence and is the true and36 lawful signature of each person who made the signature. Any signer37 may file the petition or any counterpart of the petition. Each signer on38 the petition may before and may not after the filing with the clerk39 withdraw the signer's name from the petition. A name may not be40 added to the petition after the petition has been filed with the clerk.41 After the receipt of any counterpart of the petition, each circuit court42 clerk shall certify:

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1 (1) the number of persons signing the counterpart;2 (2) the number of persons who are registered voters residing3 within that part of the school corporation located within the4 clerk's county, as disclosed by the voter registration records in the5 office of the clerk or the board of registration of the county, or6 wherever registration records may be kept;7 (3) the total number of registered voters residing within the8 boundaries of that part of the school corporation located within9 the county, as disclosed in the voter registration records; and

10 (4) the date of the filing of the petition.11 Certification shall be made by each clerk of the circuit court not more12 than thirty (30) days after the filing of the petition, excluding from the13 calculation of the period any time during which the registration records14 are unavailable to the clerk, or within any additional time as is15 reasonably necessary to permit the clerk to make the certification. In16 certifying the number of registered voters, the clerk of the circuit court17 shall disregard any signature on the petition not made within the ninety18 (90) days immediately before the filing of the petition with the clerk as19 shown by the dates set out in the petition. The clerk of the circuit court20 shall establish a record of the certification in the clerk's office and shall21 serve the original petition and a copy of the certification on the county22 election board under IC 3-10-9-3 and the governing bodies of each23 affected school corporation. Service shall be made by mail or manual24 delivery to the governing bodies, to any officer of the governing bodies,25 or to the administrative office of the governing bodies, if any, and shall26 be made for all purposes of this section on the day of the mailing or the27 date of the manual delivery.28 (c) The county election board in each county where the proposed29 metropolitan school district is located, acting jointly where the30 proposed metropolitan school district is created and where it is located31 in more than one (1) county, shall cause any referendum election32 required under either subsection (a)(1) or (a)(2) to be held in the entire33 proposed metropolitan district at a special election. The special election34 shall be not less than sixty (60) days and not more than ninety (90) days35 after the service of the petition of protest and certification by each clerk36 of the circuit court under subsection (a)(1) or (a)(2) or after the37 occurrence of the first action requiring a referendum under subsection38 (a)(2). However, if a primary or general election at which county39 officials are to be nominated or elected, or at which city or town40 officials are to be elected in those areas of the proposed metropolitan41 school district that are within the city or town, is to be held after the42 sixty (60) days and not more than six (6) months after the service or the

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1 occurrence of the first action, each election board may hold the2 referendum election with the primary or general election.3 (d) Notice of the special election shall be given by each election4 board by publication under IC 5-3-1.5 (e) Except where it conflicts with this section or cannot be6 practicably applied, IC 3 applies to the conduct of the referendum7 election. If the referendum election is not conducted at a primary or8 general election, the cost of conducting the election shall be charged to9 each component school corporation included in the proposed

10 metropolitan school district in the same proportion as its assessed11 valuation bears to the total assessed valuation of the proposed12 metropolitan school district and shall be paid from any current13 operating the operations fund of each component school corporation14 not otherwise appropriated, without appropriation.15 (f) The question in the referendum election shall be placed on the16 ballot in the form prescribed by IC 3-10-9-4 and must state "Shall the17 school corporations of _________ be formed into one (1) metropolitan18 school district under IC 20-23-7?" (in which blanks the respective19 name of the school districts concerned will be inserted).20 (g) If:21 (1) a protest petition with the required signatures is not filed after22 the adoption of substantially identical resolutions of the governing23 bodies providing for or approving the consolidation as described24 in subsection (a)(1); or25 (2) a referendum election occurs in the entire proposed26 metropolitan district and a majority of the voters in each proposed27 consolidating school corporation vote in the affirmative;28 a metropolitan school district is created and comes into existence in the29 territory subject to the provisions and under the conditions described30 in this chapter. The boundaries include all of the territory within the31 school corporations, and it shall be known as "Metropolitan School32 District of _______, Indiana" (the name of the district concerned will33 be inserted in the blank). The name of the district shall be decided by34 a majority vote of the metropolitan governing board of the metropolitan35 school district at the first meeting. The metropolitan governing board36 of the new metropolitan school district shall be composed and elected37 under this chapter. The failure of any public official or body to perform38 any duty within the time provided in this chapter does not invalidate39 any proceedings taken by that official or body, but this provision shall40 not be construed to authorize a delay in the holding of a referendum41 election under this chapter.42 (h) If the governing body of a school corporation is involved in a

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1 consolidation proposal under subsection (a)(1) or (a)(2) that fails to2 result in a consolidation, the:3 (1) governing body of the school corporation may not initiate a4 subsequent consolidation with another school corporation under5 subsection (a)(1); and6 (2) residents of the school corporation may not file a petition7 requesting a consolidation with another school corporation under8 subsection (a)(2);9 for one (1) year after the date on which the prior consolidation proposal

10 failed.11 SECTION 30. IC 20-23-8-18, AS ADDED BY P.L.1-2005,12 SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE13 JULY 1, 2018]: Sec. 18. (a) The county election board shall give notice14 of an election under section 16 of this chapter after receiving the form15 of notice and ballot from the clerk. The county election board shall16 publish notice one (1) time in two (2) newspapers of general circulation17 in the school corporation, or if only one (1) newspaper is of general18 circulation, then in that newspaper. The publication may not be made19 less than ten (10) days nor more than forty-five (45) days before the20 election. Any other notice of the election or requirement for the time of21 printing ballots, whether prescribed by IC 3 or otherwise, is not22 required to be given or observed. A person may not vote at the special23 election unless the person is then qualified as a registered voter.24 (b) IC 3 applies to the conduct of an election under this chapter,25 except if the provisions of this chapter are in conflict with provisions26 of IC 3 or if IC 3 cannot be practicably applied.27 (c) If the special election is not conducted at a primary or general28 election, the school corporation shall pay the cost of conducting the29 election from the school corporation's general operations fund not30 otherwise appropriated without appropriation.31 SECTION 31. IC 20-23-8-25, AS ADDED BY P.L.1-2005,32 SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE33 JULY 1, 2018]: Sec. 25. (a) In implementing a plan adopted under this34 chapter, requiring the holding of a special election, the county election35 board, or county election boards in the case of a multicounty school36 corporation, shall hold, manage, and supervise a special election.37 (b) The county election board shall pay the costs of a special38 election.39 (c) A school corporation shall reimburse the county election board40 from the school corporation's general operations fund money not41 otherwise appropriated, without appropriation, if a special election42 occurs under this chapter.

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1 SECTION 32. IC 20-24-7-6, AS ADDED BY P.L.1-2005,2 SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE3 JULY 1, 2018]: Sec. 6. With the approval of a majority of the members4 of the governing body, a school corporation may distribute a5 proportionate share of the school corporation's capital project6 operations fund to a charter school.7 SECTION 33. IC 20-24-13-3, AS ADDED BY P.L.213-2015,8 SECTION 162, IS AMENDED TO READ AS FOLLOWS9 [EFFECTIVE JULY 1, 2018]: Sec. 3. (a) An annual grant program is

10 established to provide funding to a school for the following:11 (1) Capital improvements for the school, including the renovation12 or expansion of a facility, or for debt or lease payments owed on13 a facility, including advances from the common school fund under14 IC 20-49-9.15 (2) The purposes for which the capital projects school16 corporation's operations fund may be used by a school17 corporation under IC 20-40-8. IC 20-40-18.18 (3) The purposes for which a technology grant from the Senator19 David C. Ford educational technology fund may be used by a20 school corporation under IC 20-20-13-6.21 (4) Transportation and school buses.22 (b) The program shall be administered by the state board.23 (c) The state board shall establish a written application and24 procedure for providing grants under this chapter to a school described25 in section 5 of this chapter.26 SECTION 34. IC 20-24.2-4-4, AS AMENDED BY P.L.117-2016,27 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE28 JULY 1, 2018]: Sec. 4. The following provisions of this title and rules29 and guidelines adopted under the following provisions of this title30 apply to a qualified district or qualified high school:31 IC 20-20-1 (educational service centers).32 IC 20-20-8 (school corporation annual performance report).33 IC 20-23 (organization of school corporations).34 IC 20-26 (school corporation general administrative provisions).35 IC 20-27 (school transportation).36 IC 20-28-3-4 (teacher continuing education).37 IC 20-28-4-8 (hiring of transition to teaching participants;38 restrictions).39 IC 20-28-4-11 (transition to teaching participants; school40 corporation or subject area; transition to teaching permit).41 IC 20-28-5-8 (conviction of certain felonies; notice and hearing;42 permanent revocation of license; data base of school employees

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1 who have been reported).2 IC 20-28-6 (teacher contracts).3 IC 20-28-7.5 (cancellation of teacher contracts).4 IC 20-28-8 (contracts with school administrators).5 IC 20-28-9 (teacher salary and related payments).6 IC 20-28-10 (conditions of employment).7 IC 20-28-11.5 (staff performance evaluations).8 IC 20-29 (collective bargaining for teachers).9 IC 20-30-3-2 and IC 20-30-3-4 (patriotic commemorative

10 observances).11 IC 20-30-5-13 (human sexuality instructional requirements).12 IC 20-30-5-19 (personal financial responsibility instruction).13 IC 20-31 (accountability for school performance and14 improvement).15 IC 20-32-4, IC 20-32-5, and IC 20-32-8 (accreditation,16 assessment, and remediation), or any other statute, rule, or17 guideline related to standardized assessments.18 IC 20-33 (students: general provisions).19 IC 20-34-3 (health and safety measures).20 IC 20-35 (special education).21 IC 20-36 (high ability students).22 IC 20-39 (accounting and financial reporting procedures).23 IC 20-40 (government funds and accounts).24 IC 20-41 (extracurricular funds and accounts).25 IC 20-42.5 (allocation of expenditures to student instruction and26 learning).27 IC 20-43 (state tuition support).28 IC 20-44 (property tax levies).29 IC 20-45 (general fund levies).30 IC 20-46 (levies other than general fund levies).31 IC 20-47 (related entities; holding companies; lease agreements).32 IC 20-48 (borrowing and bonds).33 IC 20-49 (state management of common school funds; state34 advances and loans).35 IC 20-50 (homeless children and foster care children).36 SECTION 35. IC 20-25-3-11, AS ADDED BY P.L.1-2005,37 SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE38 JULY 1, 2018]: Sec. 11. (a) Except as provided in subsections39 subsection (b), and (c), a payment made from money of the board must40 be made in accordance with budget appropriations.41 (b) If a payment is from a fund of the board that is not subject to42 budgeting and appropriation but has been transferred to the board for

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1 specific purposes, the payment must be made:2 (1) in accordance with the terms of the fund being drawn upon3 that are made available to the board; and4 (2) after the superintendent has approved the proposed payment.5 (c) If a payment is from a fund of the board that is not subject to6 budgeting and appropriation and is unrestricted as to the purposes for7 which it may be expended, the payment must be made in accordance8 with the prior:9 (1) direction of the superintendent; or

10 (2) order of the board.11 (d) (c) Not later than thirty (30) days after a payment under12 subsection (b) or (c) is made from a fund of the board, the13 superintendent shall report the payment to the board for approval.14 SECTION 36. IC 20-25-3-13, AS ADDED BY P.L.1-2005,15 SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE16 JULY 1, 2018]: Sec. 13. (a) Money may not be drawn from the treasury17 of the board except for appropriations made:18 (1) by the board; and19 (2) upon an aye and nay vote recorded in the board's minutes.20 (b) An appropriation may not be made for a period extending21 beyond December 31 of the current calendar year.22 (c) Except as otherwise provided in this article, at the end of a fiscal23 year, all unexpended balances of all appropriations except24 appropriations from tuition funds and the capital projects fund, remain25 in the fund from which the appropriation was made and do not26 revert to the board's general any other fund.27 (d) General Education fund and operations fund money that has28 been obligated but not paid at the end of a fiscal year may be paid29 without a new appropriation. Except as otherwise provided in this30 article, money obligated under this subsection does not revert to the31 board's general fund at the end of the fiscal year in which the money is32 appropriated, unless the board by affirmative act causes the money to33 revert.34 SECTION 37. IC 20-25-4-13, AS ADDED BY P.L.1-2005,35 SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE36 JULY 1, 2018]: Sec. 13. (a) The expense of operating:37 (1) special schools under section 12(a)(7) of this chapter must be38 paid out of the board's education fund; and39 (2) playgrounds and vacation schools under section 12(a)(8) of40 this chapter must be paid out of the board's general operations41 fund.42 (b) The board may make and impose fees that the board considers

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1 reasonable for:2 (1) enrollment of any high school graduate in any class offered in3 a special school; and4 (2) enrollment by any person at least seventeen (17) years of age5 in any special school class that does not provide credit toward6 graduation or progression in the regularly maintained common7 schools in the school city.8 (c) The receipts from fees under this section become a part of the9 board's general education fund.

10 SECTION 38. IC 20-25-4-15, AS ADDED BY P.L.1-2005,11 SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE12 JULY 1, 2018]: Sec. 15. (a) The board may, subject to the board's rules,13 authorize a member of the board or an officer or individual employed14 by the board to be absent from the school city in the interest of the15 school city without loss of compensation.16 (b) The board may refund to an individual described in subsection17 (a) necessary expenses incurred during the individual's absence. The18 amount refunded under this subsection must be paid from the board's19 general operations fund.20 SECTION 39. IC 20-25-4-19, AS ADDED BY P.L.1-2005,21 SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE22 JULY 1, 2018]: Sec. 19. (a) If the board determines it will promote the23 health of school children and advance the educational work of the24 schools, the board may provide for the serving of lunches to the25 students attending designated schools.26 (b) The board may:27 (1) establish kitchens and lunch rooms;28 (2) provide equipment suitable for kitchens and lunch rooms;29 (3) make other necessary provision for furnishing and serving30 lunches; and31 (4) employ a director and other necessary assistants or employees;32 to provide lunches under subsection (a).33 (c) The board shall pay the expenses arising under subsection (b)34 out of the board's general operations fund. The expense of operating35 a lunch department shall, so far as practicable, be paid from charges36 paid by the students for the lunches. However, the board may, in the37 board's discretion, furnish lunches without cost to a student who is38 needy and unable to pay for the student's lunch.39 SECTION 40. IC 20-25-9-6, AS ADDED BY P.L.1-2005,40 SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE41 JULY 1, 2018]: Sec. 6. For all schools under this article, the report42 must include the following, in addition to the requirements of

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1 IC 20-20-8-8:2 (1) Student achievement information as follows:3 (A) For each elementary and middle school, grade4 advancement rates.5 (B) For each high school, the percentage of students who apply6 to, are accepted by, and attend a college, university, or other7 postsecondary educational institution after high school.8 (2) Administrative performance measures as follows:9 (A) School receipts and expenditures by source, compared

10 with budget amounts.11 (B) Total school enrollment.12 (C) The school's general education fund expenditures per13 student, operations fund expenditures per student, and total14 expenditures per student.15 (D) The amount and percentage of the school's general16 education fund expenditures and the amount and percentage17 of total expenditures directly reaching the classroom as18 determined by a formula to be established by the board. that19 are from the education fund.20 (E) Teacher/pupil ratios totaled by class, grade, and school.21 (F) Administrator/pupil ratio for the school.22 (G) Teacher attendance rates totaled by class, grade, and23 school.24 (3) Achievement on the annual performance objectives identified25 under IC 20-25-11.26 (4) The performance objectives established under IC 20-25-11 for27 the upcoming school year.28 (5) State and school city averages for each of the measures set29 forth in subdivisions (1) through (2), if available.30 SECTION 41. IC 20-25-11-1, AS AMENDED BY P.L.233-2015,31 SECTION 90, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE32 JULY 1, 2018]: Sec. 1. The board shall establish annual student33 performance improvement levels for each school that are not less34 rigorous than the student performance improvement levels under35 IC 20-31-1, IC 20-31-6, IC 20-31-7, IC 20-31-8, IC 20-31-9, and36 IC 20-31-10, including the following:37 (1) For students:38 (A) improvement in results on assessment tests and assessment39 programs;40 (B) improvement in attendance rates; and41 (C) improvement in progress toward graduation.42 (2) For teachers:

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1 (A) improvement in student results on assessment tests and2 assessment programs;3 (B) improvement in the number and percentage of students4 achieving:5 (i) state achievement standards; and6 (ii) if applicable, performance levels set by the board;7 on assessment tests;8 (C) improvement in student progress toward graduation;9 (D) improvement in student attendance rates for the school

10 year;11 (E) improvement in individual teacher attendance rates;12 (F) improvement in:13 (i) communication with parents; and14 (ii) parental involvement in classroom and extracurricular15 activities; and16 (G) other objectives developed by the board.17 (3) For the school and school administrators:18 (A) improvement in student results on assessment tests, totaled19 by class and grade;20 (B) improvement in the number and percentage of students21 achieving:22 (i) state achievement standards; and23 (ii) if applicable, performance levels set by the board;24 on assessment tests, totaled by class and grade;25 (C) improvement in:26 (i) student graduation rates; and27 (ii) progress toward graduation;28 (D) improvement in student attendance rates;29 (E) management of:30 (i) general education fund expenditures;31 (ii) operations fund expenditures; and32 (ii) (iii) total expenditures;33 per student;34 (F) improvement in teacher attendance rates; and35 (G) other objectives developed by the board.

SECTION 42. IC 20-25-12-5, AS AMENDED BY P.L.205-2013,36SECTION 239, IS AMENDED TO READ AS FOLLOWS37[EFFECTIVE JULY 1, 2018]: Sec. 5. The initial approved general fund38budget of the education fund for each school for a school year must39be, as nearly as is reasonable and practicable, proportionate to the total40general fund budget of the education fund for the school city in the41same ratio as the school's estimated current ADM for the fall count in42

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the school year compares to the school city's estimated current ADM1for the fall count for that school year.2

3 SECTION 43. IC 20-25-12-8, AS ADDED BY P.L.1-2005,4 SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE5 JULY 1, 2018]: Sec. 8. (a) If, as a result of a school's efforts to incur6 less expense than was budgeted in a fiscal year, the school has excess7 general education fund money after the school's expenses for the fiscal8 year are paid in full, the school retains control of the excess.9 (b) The school shall use excess general fund money retained under

10 this section during the following school year for:11 (1) professional development of the school's educators; and12 (2) other classroom instructional purposes;13 under the general guidelines developed by the board.14 (c) The board may not consider a school's excess general fund15 money retained under this section when setting or approving the16 school's budget for subsequent years.17 SECTION 44. IC 20-25-16-1, AS AMENDED BY P.L.5-2015,18 SECTION 46, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE19 JULY 1, 2018]: Sec. 1. To provide the board with the necessary20 flexibility and resources to carry out this article, the following apply:21 (1) The board may:22 (A) eliminate or modify existing policies;23 (B) create new policies; and24 (C) alter policies;25 subject to this article and the plan developed under IC 20-25-10.26 (2) IC 20-29 applies to the school city.27 (3) Notwithstanding any other law, a school city may do the28 following:29 (A) lease school transportation equipment to others for30 nonschool use when the equipment is not in use for a school31 city purpose.32 (B) Establish a professional development and technology fund33 to be used for:34 (i) professional development; or35 (ii) technology, including video distance learning.36 (C) Transfer funds obtained from sources other than state or37 local government taxation to any account of the school38 corporation, including a professional development and39 technology fund established under clause (B).40 (4) Transfer funds obtained from property taxation to the general41 fund and the school transportation fund, subject to the following:42 (A) The sum of the property tax rates for the general fund and

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1 the school transportation fund after a transfer occurs under this2 subdivision may not exceed the sum of the property tax rates3 for the general fund and the school transportation fund before4 a transfer occurs under this subdivision.5 (B) This subdivision does not allow a school corporation to6 transfer to any other fund money from the debt service fund.7 SECTION 45. IC 20-26-5-4, AS AMENDED BY P.L.121-2016,8 SECTION 25, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE9 JULY 1, 2018]: Sec. 4. (a) In carrying out the school purposes of a

10 school corporation, the governing body acting on the school11 corporation's behalf has the following specific powers:12 (1) In the name of the school corporation, to sue and be sued and13 to enter into contracts in matters permitted by applicable law.14 However, a governing body may not use funds received from the15 state to bring or join in an action against the state, unless the16 governing body is challenging an adverse decision by a state17 agency, board, or commission.18 (2) To take charge of, manage, and conduct the educational affairs19 of the school corporation and to establish, locate, and provide the20 necessary schools, school libraries, other libraries where21 permitted by law, other buildings, facilities, property, and22 equipment.23 (3) To appropriate from the school corporation's general24 operations fund an amount, not to exceed the greater of three25 thousand dollars ($3,000) per budget year or one dollar ($1) per26 pupil, not to exceed twelve thousand five hundred dollars27 ($12,500), based on the school corporation's ADM of the previous28 year (as defined in IC 20-43-1-7) to promote the best interests of29 the school corporation through:30 (A) the purchase of meals, decorations, memorabilia, or31 awards;32 (B) provision for expenses incurred in interviewing job33 applicants; or34 (C) developing relations with other governmental units.35 (4) To do the following:36 (A) Acquire, construct, erect, maintain, hold, and contract for37 construction, erection, or maintenance of real estate, real estate38 improvements, or an interest in real estate or real estate39 improvements, as the governing body considers necessary for40 school purposes, including buildings, parts of buildings,41 additions to buildings, rooms, gymnasiums, auditoriums,42 playgrounds, playing and athletic fields, facilities for physical

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1 training, buildings for administrative, office, warehouse, repair2 activities, or housing school owned buses, landscaping, walks,3 drives, parking areas, roadways, easements and facilities for4 power, sewer, water, roadway, access, storm and surface5 water, drinking water, gas, electricity, other utilities and6 similar purposes, by purchase, either outright for cash (or7 under conditional sales or purchase money contracts providing8 for a retention of a security interest by the seller until payment9 is made or by notes where the contract, security retention, or

10 note is permitted by applicable law), by exchange, by gift, by11 devise, by eminent domain, by lease with or without option to12 purchase, or by lease under IC 20-47-2, IC 20-47-3, or13 IC 20-47-5.14 (B) Repair, remodel, remove, or demolish, or to contract for15 the repair, remodeling, removal, or demolition of the real16 estate, real estate improvements, or interest in the real estate17 or real estate improvements, as the governing body considers18 necessary for school purposes.19 (C) Provide for conservation measures through utility20 efficiency programs or under a guaranteed savings contract as21 described in IC 36-1-12.5.22 (5) To acquire personal property or an interest in personal23 property as the governing body considers necessary for school24 purposes, including buses, motor vehicles, equipment, apparatus,25 appliances, books, furniture, and supplies, either by cash purchase26 or under conditional sales or purchase money contracts providing27 for a security interest by the seller until payment is made or by28 notes where the contract, security, retention, or note is permitted29 by applicable law, by gift, by devise, by loan, or by lease with or30 without option to purchase and to repair, remodel, remove,31 relocate, and demolish the personal property. All purchases and32 contracts specified under the powers authorized under subdivision33 (4) and this subdivision are subject solely to applicable law34 relating to purchases and contracting by municipal corporations35 in general and to the supervisory control of state agencies as36 provided in section 6 of this chapter.37 (6) To sell or exchange real or personal property or interest in real38 or personal property that, in the opinion of the governing body, is39 not necessary for school purposes, in accordance with IC 20-26-7,40 to demolish or otherwise dispose of the property if, in the opinion41 of the governing body, the property is not necessary for school42 purposes and is worthless, and to pay the expenses for the

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1 demolition or disposition.2 (7) To lease any school property for a rental that the governing3 body considers reasonable or to permit the free use of school4 property for:5 (A) civic or public purposes; or6 (B) the operation of a school age child care program for7 children who are at least five (5) years of age and less than8 fifteen (15) years of age that operates before or after the school9 day, or both, and during periods when school is not in session;

10 if the property is not needed for school purposes. Under this11 subdivision, the governing body may enter into a long term lease12 with a nonprofit corporation, community service organization, or13 other governmental entity, if the corporation, organization, or14 other governmental entity will use the property to be leased for15 civic or public purposes or for a school age child care program.16 However, if payment for the property subject to a long term lease17 is made from money in the school corporation's debt service fund,18 all proceeds from the long term lease must be deposited in the19 school corporation's debt service fund so long as payment for the20 property has not been made. The governing body may, at the21 governing body's option, use the procedure specified in22 IC 36-1-11-10 in leasing property under this subdivision.23 (8) To do the following:24 (A) Employ, contract for, and discharge superintendents,25 supervisors, principals, teachers, librarians, athletic coaches26 (whether or not they are otherwise employed by the school27 corporation and whether or not they are licensed under28 IC 20-28-5), business managers, superintendents of buildings29 and grounds, janitors, engineers, architects, physicians,30 dentists, nurses, accountants, teacher aides performing31 noninstructional duties, educational and other professional32 consultants, data processing and computer service for school33 purposes, including the making of schedules, the keeping and34 analyzing of grades and other student data, the keeping and35 preparing of warrants, payroll, and similar data where36 approved by the state board of accounts as provided below,37 and other personnel or services as the governing body38 considers necessary for school purposes.39 (B) Fix and pay the salaries and compensation of persons and40 services described in this subdivision that are consistent with41 IC 20-28-9-1.5.42 (C) Classify persons or services described in this subdivision

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1 and to adopt a compensation plan with a salary range that is2 consistent with IC 20-28-9-1.5.3 (D) Determine the number of the persons or the amount of the4 services employed or contracted for as provided in this5 subdivision.6 (E) Determine the nature and extent of the duties of the7 persons described in this subdivision.8 The compensation, terms of employment, and discharge of9 teachers are, however, subject to and governed by the laws

10 relating to employment, contracting, compensation, and discharge11 of teachers. The compensation, terms of employment, and12 discharge of bus drivers are subject to and governed by laws13 relating to employment, contracting, compensation, and discharge14 of bus drivers.15 (9) Notwithstanding the appropriation limitation in subdivision16 (3), when the governing body by resolution considers a trip by an17 employee of the school corporation or by a member of the18 governing body to be in the interest of the school corporation,19 including attending meetings, conferences, or examining20 equipment, buildings, and installation in other areas, to permit the21 employee to be absent in connection with the trip without any loss22 in pay and to reimburse the employee or the member the23 employee's or member's reasonable lodging and meal expenses24 and necessary transportation expenses. To pay teaching personnel25 for time spent in sponsoring and working with school related trips26 or activities.27 (10) Subject to IC 20-27-13, to transport children to and from28 school, when in the opinion of the governing body the29 transportation is necessary, including considerations for the safety30 of the children. The transportation must be otherwise in31 accordance with applicable law.32 (11) To provide a lunch program for a part or all of the students33 attending the schools of the school corporation, including the34 establishment of kitchens, kitchen facilities, kitchen equipment,35 lunch rooms, the hiring of the necessary personnel to operate the36 lunch program, and the purchase of material and supplies for the37 lunch program, charging students for the operational costs of the38 lunch program, fixing the price per meal or per food item. To39 operate the lunch program as an extracurricular activity, subject40 to the supervision of the governing body. To participate in a41 surplus commodity or lunch aid program.42 (12) To purchase curricular materials, to furnish curricular

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1 materials without cost or to rent curricular materials to students,2 and to participate in a curricular materials aid program, all in3 accordance with applicable law.4 (13) To accept students transferred from other school corporations5 and to transfer students to other school corporations in accordance6 with applicable law.7 (14) To make budgets, to appropriate funds, and to disburse the8 money of the school corporation in accordance with applicable9 law. To borrow money against current tax collections and

10 otherwise to borrow money, in accordance with IC 20-48-1.11 (15) To purchase insurance or to establish and maintain a12 program of self-insurance relating to the liability of the school13 corporation or the school corporation's employees in connection14 with motor vehicles or property and for additional coverage to the15 extent permitted and in accordance with IC 34-13-3-20. To16 purchase additional insurance or to establish and maintain a17 program of self-insurance protecting the school corporation and18 members of the governing body, employees, contractors, or agents19 of the school corporation from liability, risk, accident, or loss20 related to school property, school contract, school or school21 related activity, including the purchase of insurance or the22 establishment and maintenance of a self-insurance program23 protecting persons described in this subdivision against false24 imprisonment, false arrest, libel, or slander for acts committed in25 the course of the persons' employment, protecting the school26 corporation for fire and extended coverage and other casualty27 risks to the extent of replacement cost, loss of use, and other28 insurable risks relating to property owned, leased, or held by the29 school corporation. In accordance with IC 20-26-17, to:30 (A) participate in a state employee health plan under31 IC 5-10-8-6.7;32 (B) purchase insurance; or33 (C) establish and maintain a program of self-insurance;34 to benefit school corporation employees, including accident,35 sickness, health, or dental coverage, provided that a plan of36 self-insurance must include an aggregate stop-loss provision.37 (16) To make all applications, to enter into all contracts, and to38 sign all documents necessary for the receipt of aid, money, or39 property from the state, the federal government, or from any other40 source.41 (17) To defend a member of the governing body or any employee42 of the school corporation in any suit arising out of the

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1 performance of the member's or employee's duties for or2 employment with, the school corporation, if the governing body3 by resolution determined that the action was taken in good faith.4 To save any member or employee harmless from any liability,5 cost, or damage in connection with the performance, including the6 payment of legal fees, except where the liability, cost, or damage7 is predicated on or arises out of the bad faith of the member or8 employee, or is a claim or judgment based on the member's or9 employee's malfeasance in office or employment.

10 (18) To prepare, make, enforce, amend, or repeal rules,11 regulations, and procedures:12 (A) for the government and management of the schools,13 property, facilities, and activities of the school corporation, the14 school corporation's agents, employees, and pupils and for the15 operation of the governing body; and16 (B) that may be designated by an appropriate title such as17 "policy handbook", "bylaws", or "rules and regulations".18 (19) To ratify and approve any action taken by a member of the19 governing body, an officer of the governing body, or an employee20 of the school corporation after the action is taken, if the action21 could have been approved in advance, and in connection with the22 action to pay the expense or compensation permitted under23 IC 20-26-1 through IC 20-26-5, IC 20-26-7, IC 20-40-12, and24 IC 20-48-1 or any other law.25 (20) To exercise any other power and make any expenditure in26 carrying out the governing body's general powers and purposes27 provided in this chapter or in carrying out the powers delineated28 in this section which is reasonable from a business or educational29 standpoint in carrying out school purposes of the school30 corporation, including the acquisition of property or the31 employment or contracting for services, even though the power or32 expenditure is not specifically set out in this chapter. The specific33 powers set out in this section do not limit the general grant of34 powers provided in this chapter except where a limitation is set35 out in IC 20-26-1 through IC 20-26-5, IC 20-26-7, IC 20-40-12,36 IC 20-40-18, and IC 20-48-1 by specific language or by reference37 to other law.38 (b) A superintendent hired under subsection (a)(8):39 (1) is not required to hold a teacher's license under IC 20-28-5;40 and41 (2) is required to have obtained at least a master's degree from an42 accredited postsecondary educational institution.

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1 SECTION 46. IC 20-26-5-12, AS AMENDED BY P.L.2-2006,2 SECTION 118, IS AMENDED TO READ AS FOLLOWS3 [EFFECTIVE JULY 1, 2018]: Sec. 12. Except for IC 20-26-4-1,4 IC 20-26-4-4, and IC 20-26-4-5, the powers given each school5 corporation in IC 20-26-1 through IC 20-26-5, IC 20-26-7,6 IC 20-40-12, and IC 20-48-1 and the limitations on those powers set7 out in IC 20-26-1 through IC 20-26-5, IC 20-26-7, IC 20-40-12, and8 IC 20-48-1 may not be construed to limit the authority of the governing9 body given by any other statute or rule.

10 SECTION 47. IC 20-26-5-13, AS AMENDED BY P.L.2-2006,11 SECTION 119, IS AMENDED TO READ AS FOLLOWS12 [EFFECTIVE JULY 1, 2018]: Sec. 13. Except as provided in section13 12 of this chapter, IC 20-26-1 through IC 20-26-5, IC 20-26-7,14 IC 20-40-12, and IC 20-48-1 are supplemental to all other statutes and15 rules. The powers given to any school corporation under IC 20-26-116 through IC 20-26-5, IC 20-26-7, IC 20-40-12, and IC 20-48-1 are in17 addition to those given by any other statute or rule and are not subject18 to any limitations set out in those statutes or to comply with those19 statutes, except to the extent provided in IC 20-26-1 through20 IC 20-26-5, IC 20-26-7, IC 20-40-12, and IC 20-48-1 by specific21 reference to a designated statute or the statute or rule relating to a given22 subject.23 SECTION 48. IC 20-26-5-14, AS AMENDED BY P.L.2-2006,24 SECTION 120, IS AMENDED TO READ AS FOLLOWS25 [EFFECTIVE JULY 1, 2018]: Sec. 14. IC 20-26-1 through IC 20-26-5,26 IC 20-26-7, IC 20-40-12, and IC 20-48-1 shall be liberally construed to27 permit the governing body of a school corporation to conduct its affairs28 in a manner consistent with sound business practice to the ends that the29 authority of the governing body is clarified and that it is permitted to30 operate with the maximum efficiency consistent with accountability.31 SECTION 49. IC 20-26-5-18, AS AMENDED BY P.L.118-2016,32 SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE33 JULY 1, 2018]: Sec. 18. For purposes of section 1 of this chapter and34 under the powers of section 4(a)(20) of this chapter, the governing35 body of any school corporation may join and associate with groups of36 other school corporations within Indiana in regional school study37 councils to examine common school problems and exchange38 educational information of mutual benefit, and dues to the study39 councils shall be paid by the school corporation from the general40 operations fund.41 SECTION 50. IC 20-26-5-20, AS AMENDED BY P.L.2-2006,42 SECTION 121, IS AMENDED TO READ AS FOLLOWS

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1 [EFFECTIVE JULY 1, 2018]: Sec. 20. The governing body of any2 school corporation may:3 (1) permit any of its facilities to be used by any person in4 situations and at times that do not interfere with use of the facility5 for school purposes, including:6 (A) use of a swimming pool or other athletic facility; or7 (B) use of classrooms or other space in a school for purposes8 of school age childcare; and9 (2) incur any necessary expense in the use or operation of the

10 facility.11 The governing body may set up and charge a schedule of fees for12 admission to or use of any facility outside the school corporation's13 regular school program. Fees shall be deposited in the general14 operations fund or the extracurricular account of the school15 corporation.16 SECTION 51. IC 20-26-5-22.5, AS ADDED BY P.L.214-2005,17 SECTION 64, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE18 JULY 1, 2018]: Sec. 22.5. (a) A school corporation may participate in19 the establishment of a public school foundation.20 (b) The governing body of a school corporation may receive the21 proceeds of a grant, a restricted gift, an unrestricted gift, a donation, an22 endowment, a bequest, a trust, an agreement to share tax revenue23 received by a city or county under IC 4-33-12-6 or IC 4-33-13, or other24 funds not generated from taxes levied by the school corporation to25 create a foundation under the following conditions:26 (1) The foundation is:27 (A) exempt from federal income taxation under Section28 501(c)(3) of the Internal Revenue Code; and29 (B) organized as an Indiana nonprofit corporation for the30 purposes of providing educational funds for scholarships,31 teacher education, capital programs, and special programs for32 school corporations.33 (2) Except as provided in subdivision (3), the foundation retains34 all rights to a donation, including investment powers. The35 foundation may hold a donation as a permanent endowment.36 (3) The foundation agrees to do the following:37 (A) Distribute the income from a donation only to the school38 corporation.39 (B) Return a donation to the general operations fund of the40 school corporation if the foundation:41 (i) loses the foundation's status as a foundation exempt from42 federal income taxation under Section 501(c)(3) of the

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1 Internal Revenue Code;2 (ii) is liquidated; or3 (iii) violates any condition set forth in this subdivision.4 (c) A school corporation may use the proceeds received under this5 section from a foundation only for educational purposes of the school6 corporation described in subsection (b)(1)(B).7 (d) The governing body of the school corporation may appoint8 members to the foundation.9 (e) The treasurer of the governing body of the school corporation

10 may serve as the treasurer of the foundation.11 SECTION 52. IC 20-26-7-1, AS AMENDED BY P.L.5-2015,12 SECTION 47, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE13 JULY 1, 2018]: Sec. 1. (a) As used in this section, "charter school" has14 the meaning set forth in IC 20-24-1-4 and includes a group or entity15 seeking approval from an authorizer to operate a charter school under16 IC 20-24-3.17 (b) Except as otherwise provided in this section, if a governing body18 of a school corporation determines that any real or personal property:19 (1) is no longer needed for school purposes; or20 (2) should, in the interests of the school corporation, be21 exchanged for other property;22 the governing body may sell or exchange the property in accordance23 with IC 36-1-11.24 (c) Money derived from the sale or exchange of property under this25 section shall be placed in any the school corporation's operations26 fund.27 (1) established under applicable law; and28 (2) that the governing body considers appropriate.29 (d) A governing body may not make a covenant that prohibits the30 sale of real property to another educational institution.31 (e) This subsection does not apply to a school building that on July32 1, 2011, is leased or loaned by the school corporation that owns the33 school building to another entity, if the entity is not a building34 corporation or other entity that is related in any way to, or created by,35 the school corporation or the governing body. Except as provided in36 subsections (k) through (n), a governing body shall make available for37 lease or purchase to any charter school any school building owned by38 the school corporation or any other entity that is related in any way to,39 or created by, the school corporation or the governing body, including40 but not limited to a building corporation, that:41 (1) either:42 (A) is not used in whole or in part for classroom instruction at

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1 the time the charter school seeks to lease the building; or2 (B) appears on the list compiled by the department under3 subsection (f); and4 (2) was previously used for classroom instruction;5 in order for the charter school to conduct classroom instruction.6 (f) Not later than August 1 each calendar year, each governing body7 shall inform the department if a school building that was previously8 used for classroom instruction is closed, unused, or unoccupied. The9 department shall maintain a list of closed, unused, or unoccupied

10 school buildings and make the list available on the department's11 Internet web site. Each school corporation shall provide a list of closed,12 unused, or unoccupied buildings to the department by the date set by13 the department. The department must update the list not later than14 fifteen (15) days after being notified of a closed, unused, or unoccupied15 building.16 (g) A school building that appears for the first time on the17 department's list under subsection (f) shall be designated as18 "Unavailable until (a date two (2) years after the school building first19 appears on the list)" if the governing body of the school corporation20 that owns the school building indicates to the department, on a form21 prescribed by the department, that the school building may be22 reclaimed during that period for classroom instruction. If a governing23 body does not indicate that a school building may be reclaimed, the24 governing body shall designate the school building as "Available" on25 the department's list. The governing body may change the designation26 of a building from unavailable to available at any time. If a school27 building that is designated as unavailable on the department's list28 remains unused for classroom instruction one (1) year after being29 reclaimed under this subsection, the governing body shall designate the30 school building as "Available" on the department's list. A governing31 body may reclaim a school building only one (1) time under this32 subsection.33 (h) If a charter school wishes to use a school building on the list34 created under subsection (f), the charter school shall send a letter of35 intent to the department. Within thirty (30) days after receiving a letter36 from a charter school, the department shall notify the school37 corporation of the charter school's intent, and, within thirty (30) days38 after receiving notification from the department, the school corporation39 that owns the school building shall lease the school building to the40 charter school for one dollar ($1) per year for as long as the charter41 school uses the school building for classroom instruction or for a term42 at the charter school's discretion, or sell the school building to the

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1 charter school for one dollar ($1). The charter school must begin to use2 the school building for classroom instruction not later than two (2)3 years after acquiring the school building. If the school building is not4 used for classroom instruction within two (2) years after acquiring the5 school building, the school building shall be placed on the department's6 list under subsection (f). If during the term of the lease the charter7 school closes or ceases using the school building for classroom8 instruction, the school building shall be placed on the department's list9 under subsection (f). If a school building is sold to a charter school

10 under this subsection and the charter school or any entity related to the11 charter school subsequently sells or transfers the school building to a12 third party, the charter school or related entity must transfer an amount13 equal to the gain in the property minus the adjusted basis (including14 costs of improvements to the school building) to the school corporation15 that initially sold the vacant school building to the charter school. Gain16 and adjusted basis shall be determined in the manner prescribed by the17 Internal Revenue Code and the applicable Internal Revenue Service18 regulations and guidelines.19 (i) During the term of a lease under subsection (h), the charter20 school is responsible for the direct expenses related to the school21 building leased, including utilities, insurance, maintenance, repairs,22 and remodeling. The school corporation is responsible for any debt23 incurred for or liens that attached to the school building before the24 charter school leased the school building.25 (j) Notwithstanding anything to the contrary in this section, and with26 the sole exception of a waiver provided in subsection (n), when a27 school building is designated as "Available" under subsection (g), the28 school building must remain designated as "Available" and may not be29 sold or otherwise disposed of for at least two (2) years. When the two30 (2) year period has elapsed, the school corporation may sell or31 otherwise dispose of the school building in accordance with32 IC 36-1-11.33 (k) Notwithstanding subsection (e), a governing body may request34 a waiver from the department from the requirements of subsection (e).35 In order for a governing body to receive a waiver under subsection (n),36 the governing body must apply to the department, on a form prescribed37 by the department, for the waiver. The application must include a38 statement that the governing body believes that a charter school would39 not be interested in leasing or purchasing the vacant or unused school40 building.41 (l) If the department receives a waiver request under subsection (k),42 the department, within five (5) days after receiving the waiver request

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1 under subsection (k), shall notify each charter school authorizer and2 statewide organization representing charter schools in Indiana by3 certified mail of the waiver request received under subsection (k). The4 notice must include a copy of the governing body's waiver request.5 (m) Not later than thirty (30) days after a charter school authorizer6 or statewide organization representing charter schools in Indiana7 receives a notice described in subsection (l), the charter school8 authorizer or a statewide organization representing charter schools may9 submit a qualified objection to the governing body's request for a

10 waiver under subsection (k). The qualified objection must be submitted11 to the department in writing. In order for an objection to be considered12 a qualified objection by the department, the objection must include:13 (1) the name of the charter school that is interested in leasing or14 purchasing the vacant or unused school building; and15 (2) a time frame, which may not exceed one (1) year from the date16 of the objection, in which the charter school intends to begin17 providing classroom instruction in the vacant or unused school18 building.19 (n) If the department receives a qualified objection under subsection20 (m), the vacant or unused school building shall remain on the21 department's list under subsection (f) with the designation with which22 the building is listed under subsection (g) at the time the department23 receives the waiver request. If the department does not receive a24 qualified objection, the department shall grant the governing body's25 request for a waiver. A governing body that receives a waiver under26 this subsection may sell or otherwise dispose of the unused or vacant27 school building in accordance with IC 36-1-11.28 SECTION 53. IC 20-26-7-2, AS ADDED BY P.L.1-2005,29 SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE30 JULY 1, 2018]: Sec. 2. A governing body of a school corporation may31 shall deposit insurance proceeds received as a result of damage to real32 or personal property in any the school corporation's operations fund.33 (1) established under applicable law; and34 (2) that the governing body considers appropriate.35 SECTION 54. IC 20-26-10-8, AS AMENDED BY P.L.2-2006,36 SECTION 129, IS AMENDED TO READ AS FOLLOWS37 [EFFECTIVE JULY 1, 2018]: Sec. 8. (a) The governing bodies of38 participating school corporations may pay into a joint fund, known as39 the joint services, leasing, construction, and supply operations fund,40 an amount set forth in the written agreement under section 3 of this41 chapter. Each governing body shall budget and appropriate funds for42 the joint program from the school corporation's general operations

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1 fund in accordance with laws governing the use of the general2 operations fund.3 (b) The joint services, leasing, construction, and supply operations4 fund shall be held by the governing body of the school corporation5 designated in the written agreement to administer and supervise the6 joint program. The designated governing body shall receive, disburse,7 and maintain an account for the fund in the same manner as prescribed8 for other funds of the governing body and under the written agreement9 but without any further or additional appropriation of the funds. The

10 designated governing body shall:11 (1) make a complete and detailed financial report of all receipts12 and disbursements not later than thirty (30) days after the end of13 each school year; and14 (2) furnish copies of the report to the governing bodies of all other15 participating school corporations.16 The reports required under this section are supplementary to and do not17 supersede or repeal the requirements for publication of annual reports18 of certain school corporations as provided by IC 5-3-1.19 SECTION 55. IC 20-26-11-13, AS AMENDED BY P.L.197-2016,20 SECTION 117, IS AMENDED TO READ AS FOLLOWS21 [EFFECTIVE JULY 1, 2018]: Sec. 13. (a) As used in this section, the22 following terms have the following meanings:23 (1) "Class of school" refers to a classification of each school or24 program in the transferee corporation by the grades or special25 programs taught at the school. Generally, these classifications are26 denominated as kindergarten, elementary school, middle school27 or junior high school, high school, and special schools or classes,28 such as schools or classes for special education, career and29 technical education, or career education.30 (2) "Special equipment" means equipment that during a school31 year:32 (A) is used only when a child with disabilities is attending33 school;34 (B) is not used to transport a child to or from a place where the35 child is attending school;36 (C) is necessary for the education of each child with37 disabilities that uses the equipment, as determined under the38 individualized education program for the child; and39 (D) is not used for or by any child who is not a child with40 disabilities.41 (3) "Student enrollment" means the following:42 (A) The total number of students in kindergarten through

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1 grade 12 who are enrolled in a transferee school corporation2 on a date determined by the state board.3 (B) The total number of students enrolled in a class of school4 in a transferee school corporation on a date determined by the5 state board.6 However, a kindergarten student shall be counted under clauses7 (A) and (B) as one-half (1/2) student. The state board may select8 a different date for counts under this subdivision. However, the9 same date shall be used for all school corporations making a count

10 for the same class of school.11 (b) Each transferee corporation is entitled to receive for each school12 year on account of each transferred student, except a student13 transferred under section 6 of this chapter, transfer tuition from the14 transferor corporation or the state as provided in this chapter. Transfer15 tuition equals the amount determined under STEP THREE of the16 following formula:17 STEP ONE: Allocate to each transfer student the capital18 expenditures for any special equipment used by the transfer19 student and a proportionate share of the operating costs incurred20 by the transferee school for the class of school where the transfer21 student is enrolled.22 STEP TWO: If the transferee school included the transfer student23 in the transferee school's current ADM, allocate to the transfer24 student a proportionate share of the following general education25 fund revenues of the transferee school:26 (A) State tuition support distributions received during the27 calendar year in which the school year ends.28 (B) Property tax levies under IC 20-45-7 and IC 20-45-8 for29 the calendar year in which the school year ends.30 (C) The sum of the following excise tax revenue received for31 deposit in the calendar year in which the school year begins:32 (i) Financial institution excise tax revenue (IC 6-5.5).33 (ii) Motor vehicle excise taxes (IC 6-6-5).34 (iii) Commercial vehicle excise taxes (IC 6-6-5.5).35 (iv) Boat excise tax (IC 6-6-11).36 (v) Aircraft license excise tax (IC 6-6-6.5).37 (D) Allocations to the transferee school under IC 6-3.6.38 STEP THREE: Determine the greater of:39 (A) zero (0); or40 (B) the result of subtracting the STEP TWO amount from the41 STEP ONE amount.42 If a child is placed in an institution or facility in Indiana by or with the

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1 approval of the department of child services, the institution or facility2 shall charge the department of child services for the use of the space3 within the institution or facility (commonly called capital costs) that is4 used to provide educational services to the child based upon a prorated5 per student cost.6 (c) Operating costs shall be determined for each class of school7 where a transfer student is enrolled. The operating cost for each class8 of school is based on the total expenditures of the transferee9 corporation for the class of school from its general education fund and

10 operations fund expenditures as specified in the classified budget11 forms prescribed by the state board of accounts. This calculation12 excludes:13 (1) capital outlay;14 (2) debt service;15 (3) costs of transportation;16 (4) salaries of board members;17 (5) contracted service for legal expenses; and18 (6) any expenditure that is made from extracurricular account19 receipts;20 for the school year.21 (d) The capital cost of special equipment for a school year is equal22 to:23 (1) the cost of the special equipment; divided by24 (2) the product of:25 (A) the useful life of the special equipment, as determined26 under the rules adopted by the state board; multiplied by27 (B) the number of students using the special equipment during28 at least part of the school year.29 (e) When an item of expense or cost described in subsection (c)30 cannot be allocated to a class of school, it shall be prorated to all31 classes of schools on the basis of the student enrollment of each class32 in the transferee corporation compared with the total student33 enrollment in the school corporation.34 (f) Operating costs shall be allocated to a transfer student for each35 school year by dividing:36 (1) the transferee school corporation's operating costs for the class37 of school in which the transfer student is enrolled; by38 (2) the student enrollment of the class of school in which the39 transfer student is enrolled.40 When a transferred student is enrolled in a transferee corporation for41 less than the full school year of student attendance, the transfer tuition42 shall be calculated by the part of the school year for which the

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1 transferred student is enrolled. A school year of student attendance2 consists of the number of days school is in session for student3 attendance. A student, regardless of the student's attendance, is enrolled4 in a transferee school unless the student is no longer entitled to be5 transferred because of a change of residence, the student has been6 excluded or expelled from school for the balance of the school year or7 for an indefinite period, or the student has been confirmed to have8 withdrawn from school. The transferor and the transferee corporation9 may enter into written agreements concerning the amount of transfer

10 tuition due in any school year. If an agreement cannot be reached, the11 amount shall be determined by the state board, and costs may be12 established, when in dispute, by the state board of accounts.13 (g) A transferee school shall allocate revenues described in14 subsection (b) STEP TWO to a transfer student by dividing:15 (1) the total amount of revenues received during a period; by16 (2) the current ADM of the transferee school for the period in17 which the revenues are received.18 However, for state tuition support distributions or any other state19 distribution computed using less than the total current ADM of the20 transferee school, the transferee school shall allocate the revenues to21 the transfer student by dividing the revenues that the transferee school22 is eligible to receive during the period by the student count used to23 compute the state distribution.24 (h) Instead of the payments provided in subsection (b), the25 transferor corporation or state owing transfer tuition may enter into a26 long term contract with the transferee corporation governing the27 transfer of students. The contract may:28 (1) be entered into for a period of not more than five (5) years29 with an option to renew;30 (2) specify a maximum number of students to be transferred; and31 (3) fix a method for determining the amount of transfer tuition32 and the time of payment, which may be different from that33 provided in section 14 of this chapter.34 (i) A school corporation may negotiate transfer tuition agreements35 with a neighboring school corporation that can accommodate additional36 students. Agreements under this section may:37 (1) be for one (1) year or longer; and38 (2) fix a method for determining the amount of transfer tuition or39 time of payment that is different from the method, amount, or40 time of payment that is provided in this section or section 14 of41 this chapter.42 A school corporation may not transfer a student under this section

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1 without the prior approval of the child's parent.2 SECTION 56. IC 20-26-11-14, AS ADDED BY P.L.1-2005,3 SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE4 JULY 1, 2018]: Sec. 14. (a) Not later than March 1, a school5 corporation shall estimate the:6 (1) transfer tuition payments that the school corporation is7 required to pay for students transferring from the school8 corporation; and9 (2) transfer tuition payments that the school corporation is entitled

10 to receive on behalf of students transferring to the school11 corporation.12 A school corporation shall send a preliminary statement of the amount13 of transfer tuition due to the state agency and to any school corporation14 that owes transfer tuition to the school corporation.15 (b) Not later than October 1 following the end of a school year, a16 school corporation shall send a final statement of the amount of transfer17 tuition due to the state agency and to any school corporation that owes18 transfer tuition to the school corporation.19 (c) A statement sent under subsection (a) or (b) must include the20 following:21 (1) A statement, to the extent known, of all transfer tuition costs22 chargeable to the state or school corporation for the school year23 ending in the current calendar year.24 (2) A statement of any transfer tuition costs chargeable to the state25 or school corporation and not previously billed for the school year26 ending in the immediately preceding calendar year.27 (3) A statement of any transfer tuition costs previously billed to28 the state or school corporation and not yet paid.29 (d) Transfer tuition for each school year shall be paid by the30 transferor corporation or state, if the entity is obligated to pay the31 tuition, in not more than four (4) installments. These installments must32 be paid not later than October 30, January 10, April 10, and July 1033 following the school year in which the obligation is incurred, unless34 another schedule is mutually agreed upon.35 (e) Payment of operating costs shall be paid from and receipted to36 the respective general operations funds of the transferor and transferee37 corporations. Payment of capital costs shall be made by the transferor38 corporation at its discretion from any the operations fund or debt39 service fund or source and shall be receipted by the transferee40 corporation at its discretion either to the capital projects operations41 fund or to the debt service fund, or if the transferee corporation has42 neither of these two (2) funds, to its general fund. in the same

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1 proportion as the payments were made from each fund.2 SECTION 57. IC 20-26-12-23, AS AMENDED BY P.L.128-2016,3 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE4 JULY 1, 2018]: Sec. 23. A school corporation may:5 (1) borrow money to buy curricular materials; and6 (2) issue notes, maturing serially in not more than four (4) years7 and payable from its general education fund, to secure the loan.8 SECTION 58. IC 20-26-15-6, AS AMENDED BY P.L.2-2006,9 SECTION 135, IS AMENDED TO READ AS FOLLOWS

10 [EFFECTIVE JULY 1, 2018]: Sec. 6. Except as provided in this11 chapter and notwithstanding any other law, a freeway school12 corporation or a freeway school may do the following during the13 contract period:14 (1) Disregard the observance of any statute or rule that is listed in15 the contract.16 (2) Lease school transportation equipment to others for nonschool17 use when the equipment is not in use for a school corporation18 purpose, if the lessee has not received a bid from a private entity19 to provide transportation equipment or services for the same20 purpose.21 (3) Replace the budget and accounting system that is required by22 law with a budget or accounting system that is frequently used in23 the private business community. The state board of accounts may24 not go beyond the requirements imposed upon the state board of25 accounts by statute in reviewing the budget and accounting26 system used by a freeway school corporation or a freeway school.27 (4) Establish a professional development and technology fund to28 be used for:29 (A) professional development; or30 (B) technology, including video distance learning.31 However, any money deposited in the professional development32 and technology fund for technology purposes must be transferred33 to the school technology fund.34 (5) Subject to subdivision (4), transfer funds obtained from35 sources other than state or local government taxation among any36 accounts of the school corporation, including a professional37 development and technology fund established under subdivision38 (4).39 (6) Transfer funds obtained from property taxation and from state40 distributions among the general fund and the school41 transportation fund, subject to the following:42 (A) The sum of the property tax rates for the general fund and

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1 the school transportation fund after a transfer occurs under this2 subdivision may not exceed the sum of the property tax rates3 for the general fund and the school transportation fund before4 a transfer occurs under this subdivision.5 (B) This subdivision does not allow a school corporation to6 transfer to any other fund money from the:7 (i) capital projects fund; or8 (ii) debt service fund.9 (7) (4) Establish a locally adopted assessment program to replace

10 the assessment of students under the ISTEP program established11 under IC 20-32-5-15, subject to the following:12 (A) A locally adopted assessment program must be established13 by the governing body and approved by the department.14 (B) A locally adopted assessment program may use a locally15 developed test or a nationally developed test.16 (C) Results of assessments under a locally adopted assessment17 program are subject to the same reporting requirements as18 results under the ISTEP program.19 (D) Each student who completes a locally adopted assessment20 program and the student's parent have the same rights to21 inspection and rescoring as set forth in IC 20-32-5-9.22 SECTION 59. IC 20-28-9-19, AS ADDED BY P.L.1-2005,23 SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE24 JULY 1, 2018]: Sec. 19. (a) If a governing body of a school corporation25 agrees to a retirement, savings, or severance pay plan with a teacher or26 with an exclusive representative under IC 20-29, the benefits may be27 paid to:28 (1) the teacher who is eligible under a negotiated retirement,29 savings, or severance pay plan; or30 (2) in the case of the teacher's death:31 (A) the teacher's designated beneficiary; or32 (B) the teacher's estate, if there is no designated beneficiary.33 Payments may be made in a lump sum or in installments as agreed34 upon by the parties or to a savings plan established under35 IC 5-10-1.1-1(2).36 (b) Notwithstanding IC 6-1.1-20, the payments under this section37 shall be made from the general education fund of the school38 corporation and may be made for a period exceeding one (1) year.39 SECTION 60. IC 20-29-2-6, AS AMENDED BY P.L.48-2011,40 SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE41 JULY 1, 2018]: Sec. 6. "Deficit financing" for a budget year means42 actual expenditures exceeding the employer's current year actual

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1 general education fund revenue and, for a school employer for2 which the voters have passed an operating tax levy referendum3 under IC 20-46-1, the amount of revenue certified by the4 department of local government finance. Revenue does not include5 money estimated to be or actually transferred from the school6 corporation's operating fund to its education fund or local income7 tax revenue deposited in the education fund.8 SECTION 61. IC 20-29-6-3, AS AMENDED BY P.L.48-2011,9 SECTION 13, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE

10 JULY 1, 2018]: Sec. 3. (a) It is unlawful for a school employer to enter11 into any agreement that would place the employer in a position of12 deficit financing due to a reduction in the employer's actual general13 education fund revenue or an increase in the employer's expenditures14 when the expenditures exceed the employer's current year actual15 general education fund revenue. Revenue does not include money16 estimated to be or actually transferred from the school17 corporation's operating fund to its education fund or local income18 tax revenue deposited in the education fund.19 (b) A contract that provides for deficit financing is void to that20 extent, and an individual teacher's contract executed under the contract21 is void to that extent.22 SECTION 62. IC 20-29-6-12.5, AS AMENDED BY P.L.213-2015,23 SECTION 190, IS AMENDED TO READ AS FOLLOWS24 [EFFECTIVE JULY 1, 2018]: Sec. 12.5. (a) Before August 1 of the25 first year of the state budget biennium, the department shall provide the26 parties with an estimate of the general education fund revenue27 available for bargaining in the school corporation from the school28 funding formula. Estimated revenue may not include money29 estimated to be or actually transferred from the school30 corporation's operating fund to its education fund or local income31 tax revenue deposited in the education fund.32 (b) Within thirty (30) days after the date of the fall count of ADM33 of the school year in the first year of the state budget biennium, the34 department shall provide the parties with a certification of estimated35 general education fund revenue available for bargaining from the36 school funding formula. A school employer that has for which the37 voters have passed a general fund an operating tax levy referendum38 under IC 20-46-1 must have that amount certified by the department of39 local government finance. The school corporation must obtain the40 certification before the conclusion of bargaining. These certifications41 must be the basis for determinations throughout impasse proceedings42 under this chapter.

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1 SECTION 63. IC 20-29-6-16, AS AMENDED BY P.L.239-2015,2 SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE3 JULY 1, 2018]: Sec. 16. (a) If an agreement has not been reached on4 the items to be bargained collectively by November 1, as provided in5 IC 6-1.1-17-5, the parties shall continue the terms of the current6 contract that is in effect, and the school employer may issue tentative7 individual contracts and prepare its budget on that basis. During this8 period, in order to allow the successful resolution of the dispute, the9 school employer may not unilaterally change the terms or conditions of

10 employment that are issues in dispute.11 (b) Upon the expiration of the current contract that is in effect,12 except for performance stipends and additions to base salary provided13 under IC 20-43-10-3, the school employer shall continue under the14 terms of the current contract that is in effect, with no increase or15 increment in salary, wages, or benefits for any bargaining unit16 employee until a new contract is executed, unless continuation would17 put the school employer in a position of deficit financing due to:18 (1) a reduction in the employer's actual general education fund19 revenue or, for an employer for which the voters have passed20 an operating tax levy referendum under IC 20-46-1, a21 reduction in the amount of revenue from the tax levy; or22 (2) an increase in an employer's expenditures when the23 expenditures exceed the current year actual general education24 fund revenue.25 Revenue does not include money estimated to be or actually26 transferred from the school corporation's operating fund to its27 education fund or local income tax revenue deposited in the28 education fund.29 (c) The only parts of the contract that must continue under this30 section are the items contained in the contract and listed in section 4 of31 this chapter.32 (d) This section may not be construed as relieving the school33 employer or the school employee organization from the duty to bargain34 collectively until a mutual agreement has been reached and a contract35 entered as called for in this chapter.36 SECTION 64. IC 20-29-8-7, AS AMENDED BY P.L.219-2015,37 SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE38 JULY 1, 2018]: Sec. 7. (a) When a factfinder is requested or required39 under IC 20-29-6, the board shall appoint a factfinder from the staff or40 panel established under section 6 of this chapter.41 (b) The factfinder shall make an investigation and hold hearings as42 the factfinder considers necessary in connection with a dispute.

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1 (c) The factfinder:2 (1) may restrict the factfinder's findings to those issues that the3 factfinder determines significant;4 (2) must restrict the findings to the items listed in IC 20-29-6-4;5 and6 (3) may not impose terms beyond those proposed by the parties in7 their last, best offers.8 (d) The factfinder may use evidence furnished to the factfinder by:9 (1) the parties;

10 (2) the board;11 (3) the board's staff; or12 (4) any other state agency.13 (e) The factfinder shall conduct the factfinding hearing in public in14 a room or facility owned by the county or local unit of government15 located in the county in which the school employer is located, or if the16 school employer is located in more than one (1) county, in the county17 in which the greatest number of students who attend the school18 employer's schools reside. The public hearing may begin not earlier19 than October 1 in the first year of the state budget biennium and must20 be concluded by December 31 of the same year.21 (f) The factfinding process may not exceed thirty (30) days from22 beginning to end, and not more than two (2) of those days may be used23 for public testimony, which may be taken at the discretion of the24 factfinder. During the public hearing, each party shall present fully its25 last, best offer, including the fiscal rationale for the offer. Only general26 operating funds and those funds certified by the department of27 education and the department of local government finance may be28 considered as a source of the funding for items, unless the school29 funding formula allows other funds to be used for certain items. Only30 education fund revenue and, for a school employer for which the31 voters have passed an operating tax levy referendum under32 IC 20-46-1, the amount of revenue certified by the department of33 local government finance, may be considered a source of the34 funding for items. Education fund revenue does not include money35 estimated to be or actually transferred from the school36 corporation's operating fund to its education fund or local income37 tax revenue deposited in the education fund.38 (g) The factfinder shall make a recommendation as to the settlement39 of the disputes over which the factfinder has jurisdiction.40 (h) The factfinder shall:41 (1) make the investigation, hearing, and findings as expeditiously42 as the circumstances permit; and

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1 (2) deliver the findings to the parties and to the board.2 (i) The board, after receiving the findings and recommendations,3 may make additional findings and recommendations to the parties4 based on information in:5 (1) the report; or6 (2) the board's own possession.7 The board may not make any recommendations to the parties related to8 any items not specifically identified in IC 20-29-6-4.9 (j) At any time within five (5) days after the findings and

10 recommendations are delivered to the board, the board may make the11 findings and recommendations of the factfinder and the board's12 additional findings and recommendations, if any, available to the13 public through news media and other means the board considers14 effective.15 (k) The board shall make the findings and recommendations16 described in subsection (j) available to the public not later than ten (10)17 days after the findings and recommendations are delivered to the board.18 SECTION 65. IC 20-30-12-3, AS ADDED BY P.L.1-2005,19 SECTION 14, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE20 JULY 1, 2018]: Sec. 3. Expenditure for equipment necessary to21 implement this chapter by a school corporation may be paid:22 (1) through technology loans from the common school fund; or23 (2) from the school corporation's capital projects operations fund.24 SECTION 66. IC 20-30-15-8, AS ADDED BY P.L.1-2005,25 SECTION 14, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE26 JULY 1, 2018]: Sec. 8. (a) A governing body shall pay contractual27 obligations under this chapter. However, a contract is not valid unless28 the governing body has made an appropriation from the school29 corporation's general education fund for the contractual obligations30 before making the contract.31 (b) A governing body may appropriate from the school corporation's32 general operations fund for any one (1) year an amount equal to the33 total funds raised by school patrons during the year in which the34 appropriation is made to purchase band uniforms for high school bands35 sponsored by high schools located within and operated by the school36 corporation.37 SECTION 67. IC 20-32-8-7, AS ADDED BY P.L.1-2005,38 SECTION 16, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE39 JULY 1, 2018]: Sec. 7. A school corporation qualifies to receive a40 grant when the governing body of the school corporation appropriates41 money from the general education fund of the school corporation for42 a:

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1 (1) remediation program; or2 (2) preventive remediation program;3 that meets the state board's standards for funding under the program,4 and, if the program is a preventive remediation program, that has been5 approved by the state board.6 SECTION 68. IC 20-35-5-4, AS AMENDED BY P.L.38-2014,7 SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE8 JULY 1, 2018]: Sec. 4. An agreement adopted under section 2 of this9 chapter may include the following:

10 (1) An agreement to acquire sites, buildings, and equipment for11 the sites and buildings by:12 (A) purchase;13 (B) lease from any of the participating school corporations or14 charter schools for the term of the agreement; or15 (C) lease under the provisions of IC 20-47-2 or IC 20-47-3.16 (2) An agreement to repair, equip, and maintain school buildings17 and equipment.18 (3) An agreement that participating school corporations may use19 funds from their respective capital projects fund operations20 funds to pay for the costs under subdivision (1) or (2) or for any21 other purposes authorized under IC 20-40-8. IC 20-40-18.22 (4) An agreement with a charter school to exchange any23 consideration for special education services.24 SECTION 69. IC 20-35-5-5, AS AMENDED BY P.L.38-2014,25 SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE26 JULY 1, 2018]: Sec. 5. The amount of money used from a participating27 school corporation's capital projects operations fund shall be28 determined by agreement among the participating school parties.29 SECTION 70. IC 20-40-1-5, AS AMENDED BY P.L.233-2015,30 SECTION 289, IS AMENDED TO READ AS FOLLOWS31 [EFFECTIVE JULY 1, 2018]: Sec. 5. Statutes outside this article that32 permit or require the establishment of a joint funds program or fund33 include the following:34 (1) IC 20-26-10-3 (joint fund for a (joint program).35 (2) IC 20-26-10-8 (joint services, leasing, construction, and36 supply operations fund).37 (3) IC 20-26-10-9 (joint investment fund).38 SECTION 71. IC 20-40-1-6 IS REPEALED [EFFECTIVE JULY 1,39 2018]. Sec. 6. IC 20-26-15-6 permits a freeway school or freeway40 school corporation to establish and use a professional development and41 technology fund.42 SECTION 72. IC 20-40-2-1, AS ADDED BY P.L.2-2006,

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1 SECTION 163, IS AMENDED TO READ AS FOLLOWS2 [EFFECTIVE JULY 1, 2018]: Sec. 1. As used in this chapter, "fund"3 refers to a school corporation's general education fund established4 under section 2 of this chapter.5 SECTION 73. IC 20-40-2-2, AS ADDED BY P.L.2-2006,6 SECTION 163, IS AMENDED TO READ AS FOLLOWS7 [EFFECTIVE JULY 1, 2018]: Sec. 2. The governing body of each8 school corporation shall establish a general an education fund for the9 operation and maintenance of local schools. payment of expenses that

10 are allocated to student instruction and learning under IC 20-42.5.11 SECTION 74. IC 20-40-2-3, AS ADDED BY P.L.2-2006,12 SECTION 163, IS AMENDED TO READ AS FOLLOWS13 [EFFECTIVE JULY 1, 2018]: Sec. 3. Except as otherwise provided by14 law, all receipts and disbursements authorized by law for school funds15 and tax levies Distributions of tuition support shall be received in16 and disbursed from the education fund.17 SECTION 75. IC 20-40-2-4, AS AMENDED BY P.L.257-2013,18 SECTION 36, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE19 JULY 1, 2018]: Sec. 4. (a) Except as provided by subsection (b) or any20 other law, any lawful school expenses payable from any other fund of21 a school corporation, including debt service and capital outlay, may be22 budgeted in and paid from the fund.23 (b) Before January 1, 2018, costs attributable to transportation (as24 defined in IC 20-40-6-1) may be budgeted in and paid from the fund.25 After December 31, 2017, costs attributable to transportation (as26 defined in IC 20-40-6-1) may not be budgeted in and paid from the27 fund. After June 30, 2013, A school corporation may also transfer28 money from its general fund to its transportation fund (IC 20-40-6) if29 it qualifies under subsection (c).30 (c) A school corporation may make a transfer from its general fund31 to its transportation fund if the amount of revenue loss from:32 (1) the credits for excessive property taxes granted under33 IC 6-1.1-20.6-7.5 in the amount that affects the school34 corporation's transportation fund; plus35 (2) allocations to the school transportation fund resulting from the36 granting of credits under IC 6-1.1-20.6-7.5 to protect the37 protected taxes as provided in IC 6-1.1-20.6-9.8;38 is more than seventy-five percent (75%) of the school corporation's39 transportation fund levy for the year for which the latest certified levies40 have been determined. The amount of the transfer may not exceed fifty41 percent (50%) of revenue lost by the school corporation's transportation42 fund.

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1 (d) A school corporation may make a transfer from its general fund2 to its school bus replacement fund (IC 20-40-7) if the revenue lost3 from:4 (1) the credits for excessive property taxes granted under5 IC 6-1.1-20.6-7.5 in the amount that affects the school6 corporation's school bus replacement fund; plus7 (2) allocations to the school bus replacement fund resulting from8 the granting of credits under IC 6-1.1-20.6-7.5 to protect the9 protected taxes as provided in IC 6-1.1-20.6-9.8;

10 is more than seventy-five percent (75%) of the school corporation's11 school bus replacement fund levy for the year for which the latest12 certified levies have been determined. The amount of the transfer may13 not exceed fifty percent (50%) of revenue lost by the school14 corporation's school bus replacement fund. The education fund is the15 exclusive fund to pay for expenses allocated to student instruction16 and learning under IC 20-42.5. The fund may not be used to pay17 directly any expenses that are not allocated to student instruction18 and learning under IC 20-42.5 or expenses permitted to be paid19 from the school corporation's operations fund.20 SECTION 76. IC 20-40-2-5, AS ADDED BY P.L.2-2006,21 SECTION 163, IS AMENDED TO READ AS FOLLOWS22 [EFFECTIVE JULY 1, 2018]: Sec. 5. Remuneration for athletic23 coaches, whether or not the athletic coaches are:24 (1) otherwise employed by the school corporation; and25 (2) licensed under IC 20-28-4 or IC 20-28-5;26 may must be budgeted in the education fund and must be paid from27 the operations fund under IC 20-40-18.28 SECTION 77. IC 20-40-2-6 IS ADDED TO THE INDIANA CODE29 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY30 1, 2018]: Sec. 6. (a) Money in the education fund may be31 transferred to the operations fund to cover expenditures that are32 not allocated to student instruction and learning under IC 20-42.5.33 The amount transferred from the education fund to the operations34 fund shall be reported by the school corporation to the department.35 The transfers made during the:36 (1) first six (6) months of each state fiscal year shall be37 reported before January 31 of the following year; and38 (2) last six (6) months of each state fiscal year shall be39 reported before July 31 of that year.40 (b) The report shall include a short description of each purpose41 for which a transfer is being made and the amount of the transfer42 that corresponds to each purpose.

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1 (c) The department must post the report submitted under2 subsection (a) on the department's Internet web site.3 SECTION 78. IC 20-40-2-7 IS ADDED TO THE INDIANA CODE4 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY5 1, 2018]: Sec. 7. (a) On July 1, 2018, the balance, as of June 30,6 2018, in the school corporation's general fund shall be transferred7 to the education fund in proportion to the general fund allocations8 to student instruction and learning under IC 20-42.5 for the9 2017-2018 school year. Any remaining balance shall be transferred

10 to the school corporation's operations fund.11 (b) This section expires June 30, 2020.12 SECTION 79. IC 20-40-3-1, AS ADDED BY P.L.2-2006,13 SECTION 163, IS AMENDED TO READ AS FOLLOWS14 [EFFECTIVE JULY 1, 2018]: Sec. 1. As used in this chapter, "fund"15 refers to a an operating referendum tax levy fund established under16 section 3 of this chapter.17 SECTION 80. IC 20-40-3-3, AS ADDED BY P.L.2-2006,18 SECTION 163, IS AMENDED TO READ AS FOLLOWS19 [EFFECTIVE JULY 1, 2018]: Sec. 3. The governing body of each20 school corporation for which a levy is:21 (1) transferred; or22 (2) approved;23 under IC 20-46-1 shall establish a an operating referendum tax levy24 fund.25 SECTION 81. IC 20-40-3-5, AS ADDED BY P.L.2-2006,26 SECTION 163, IS AMENDED TO READ AS FOLLOWS27 [EFFECTIVE JULY 1, 2018]: Sec. 5. Money in the fund may be used28 for any lawful school expenses, including making a transfer to the29 school corporation's education fund (IC 20-40-2) or operations30 fund (IC 20-40-18).31 SECTION 82. IC 20-40-6 IS REPEALED [EFFECTIVE JULY 1,32 2018]. (School Transportation Fund).33 SECTION 83. IC 20-40-7 IS REPEALED [EFFECTIVE JULY 1,34 2018]. (School Bus Replacement Fund).35 SECTION 84. IC 20-40-8 IS REPEALED [EFFECTIVE JULY 1,36 2018]. (Capital Projects Fund).37 SECTION 85. IC 20-40-8-19, AS AMENDED BY P.L.151-2016,38 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE39 JULY 1, 2017]: Sec. 19. Money in the fund may be used before January40 1, 2018, to pay for up to one hundred percent (100%) of the following41 costs of a school corporation:42 (1) Utility services.

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1 (2) Property or casualty insurance.2 (3) Both utility services and property or casualty insurance.3 A school corporation's expenditures under this section may not in a4 calendar year exceed three and five-tenths percent (3.5%) of the school5 corporation's 2005 calendar year distribution.6 SECTION 86. IC 20-40-9-6, AS AMENDED BY THE7 TECHNICAL CORRECTIONS BILL OF THE 2017 GENERAL8 ASSEMBLY, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE9 JULY 1, 2018]: Sec. 6. (a) Money in the debt service fund may be

10 used for payment of the following:11 (1) All debt and other obligations arising out of funds borrowed12 or advanced for school buildings when purchased from the13 proceeds of a bond issue for capital construction.14 (2) A lease to provide capital construction.15 (3) Interest on emergency and temporary loans.16 (4) All debt and other obligations arising out of funds borrowed17 or advanced for the purchase or lease of school buses when18 purchased or leased from the proceeds of a bond issue, or from19 money obtained from a loan made under IC 20-27-4-5, for that20 purpose.21 (5) All debt and other obligations arising out of funds borrowed22 to pay judgments against the school corporation.23 (6) All debt and other obligations arising out of funds borrowed24 to purchase equipment.25 (b) A school corporation may before July 1, 2015, transfer excess26 money in the fund to the school corporation's transportation fund, if the27 transfer is approved by the distressed unit appeal board under28 IC 6-1.1-20.3-8.4.29 SECTION 87. IC 20-40-9-7, AS AMENDED BY P.L.286-2013,30 SECTION 118, IS AMENDED TO READ AS FOLLOWS31 [EFFECTIVE JULY 1, 2018]: Sec. 7. (a) Money in the fund may be32 used for payment of all unreimbursed costs of curricular materials for33 the school corporation's students who were eligible for free or reduced34 lunches in the previous school year.35 (b) Money in the fund may not be used for payment of debt36 service, lease payments, or similar obligations for a controlled37 project that is approved by the voters in a referendum under38 IC 6-1.1-20.39 (b) (c) The governing body may transfer the amount levied to cover40 unreimbursed costs of curricular materials under this section to the41 curricular materials rental fund or extracurricular account. education42 fund.

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1 SECTION 88. IC 20-40-9-8, AS ADDED BY P.L.2-2006,2 SECTION 163, IS AMENDED TO READ AS FOLLOWS3 [EFFECTIVE JULY 1, 2018]: Sec. 8. (a) Lease rental obligations on4 account of leases entered into under IC 21-5-11 (before its repeal),5 IC 20-47-2, IC 21-5-12 (before its repeal), or IC 20-47-3 may be paid6 by a school corporation from the debt service fund.7 (b) Payments described in subsection (a) must be provided for in the8 annual budget for the fund from which the payment is made.9 (c) This section does not prohibit The payment of lease rental

10 obligations from the general education fund is prohibited.11 SECTION 89. IC 20-40-9-11, AS ADDED BY P.L.2-2006,12 SECTION 163, IS AMENDED TO READ AS FOLLOWS13 [EFFECTIVE JULY 1, 2018]: Sec. 11. An amount equal to deductions14 made or to be made in the current year for the payment of principal and15 interest on an advancement from any state fund (including the common16 school fund and the veterans memorial school construction fund) may17 be included in debt service and appropriated and paid to the general18 operations fund.19 SECTION 90. IC 20-40-10 IS REPEALED [EFFECTIVE JULY 1,20 2018]. (Levy Excess Fund).21 SECTION 91. IC 20-40-11 IS REPEALED [EFFECTIVE JULY 1,22 2018]. (Repair and Replacement Fund).23 SECTION 92. IC 20-40-12 IS REPEALED [EFFECTIVE JULY 1,24 2018]. (Self-Insurance Fund).25 SECTION 93. IC 20-40-14 IS REPEALED [EFFECTIVE JULY 1,26 2018]. (Special Purpose Funds Without Local Tax).27 SECTION 94. IC 20-40-15 IS REPEALED [EFFECTIVE JULY 1,28 2018]. (School Technology Fund).29 SECTION 95. IC 20-40-18 IS ADDED TO THE INDIANA CODE30 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE31 JULY 1, 2018]:32 Chapter 18. School Corporation Operations Fund33 Sec. 1. The governing body of each school corporation shall34 create an operations fund.35 Sec. 2. The operations fund shall be used to deposit the36 following:37 (1) Revenue from the school corporation's operations fund38 property tax levy under IC 20-46-8.39 (2) The sum of the following excise tax revenue received for40 deposit in the fund in the calendar year in which the school41 year begins:42 (A) Financial institution excise tax (IC 6-5.5).

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1 (B) Motor vehicle excise taxes (IC 6-6-5).2 (C) Commercial vehicle excise taxes (IC 6-6-5.5).3 (D) Boat excise tax (IC 6-6-11).4 (E) Aircraft license excise tax (IC 6-6-6.5).5 (3) Transfers from the education fund (IC 20-40-2) or the6 operating referendum tax levy fund (IC 20-40-3), if any.7 (4) Allocations of local income taxes to the school corporation8 under IC 6-3.6-6, if any.9 Sec. 3. Expenditures from the operations fund may be made

10 only after appropriation in the school corporation's annual budget11 or by an additional appropriation under IC 6-1.1-18-5.12 Sec. 4. (a) Any balance in the operations fund may be invested13 in the manner provided for investment of money by a political14 subdivision. The net proceeds from the investment become a part15 of the operations fund.16 (b) Any balance remaining in the operations fund at the end of17 a year remains in the operations fund.18 Sec. 5. The operations fund may be used only to do the19 following:20 (1) Carry out a capital projects plan approved under section21 6 of this chapter for facility expenditures described in section22 7 of this chapter.23 (2) Pay transportation costs described in section 8 of this24 chapter.25 (3) Carry out a school bus replacement plan approved under26 section 9 of this chapter.27 (4) Pay expenses that are allocated to overhead and28 operational expenditures or to nonoperational expenditures29 under IC 20-42.5.30 (5) Provide funds to an art association or a historical society31 as provided in IC 36-10-13.32 (6) Establish, maintain, and equip a public playground under33 IC 36-10-14.34 Sec. 6. (a) A school corporation's capital projects expenditure35 plan or amended plan must limit proposed expenditures to those36 described in section 7 of this chapter.37 (b) The department of local government finance shall prescribe38 the format of the plan. A plan must:39 (1) apply to at least the three (3) years immediately following40 the year the plan is adopted;41 (2) estimate for each year to which the plan applies the nature42 and amount of proposed expenditures from the fund; and

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1 (3) estimate:2 (A) the source of all revenue to be dedicated to the3 proposed expenditures in the upcoming calendar year; and4 (B) the amount of property taxes to be collected in the5 upcoming calendar year and retained in the fund for6 expenditures proposed for a later year.7 (c) If a school corporation wants to use money in the operations8 fund during the year to pay for any items listed in section 7 of this9 chapter, the governing body must adopt a resolution approving the

10 plan or amended plan. The governing body must hold a hearing on11 the adoption of the resolution as follows:12 (1) For a school corporation that has not elected to adopt a13 budget under IC 6-1.1-17-5.6 or for which a resolution14 adopted under IC 6-1.1-17-5.6(d) is in effect, the school15 corporation must hold the hearing and adopt the resolution16 after January 1 and not later than November 1 of the17 immediately preceding year.18 (2) For a school corporation that elects to adopt a budget19 under IC 6-1.1-17-5.6, the school corporation must hold the20 hearing and adopt the resolution after January 1 and not later21 than April 1 of the immediately preceding school fiscal year.22 The governing body shall publish a notice of the hearing in23 accordance with IC 5-3-1-2(b). The governing body may hold the24 hearing and include the notice as part of a regular governing body25 meeting or part of the same hearing and notice for a school bus26 replacement plan. If an amendment to a capital projects27 expenditure plan is being proposed, the governing body must28 declare the nature of and the need for the amendment in the29 resolution to adopt the amendment to the plan. The plan, as30 proposed to be amended, must comply with the requirements for31 a plan under this section.32 (d) If a governing body adopts the resolution specified in33 subsection (c), the school corporation must then submit the34 resolution to the department of local government finance in the35 manner prescribed by the department.36 (e) This subsection applies to an amendment to a plan that is37 required because of an emergency that results in costs that exceed38 the amount accumulated in the fund for repair, replacement, or39 site acquisition that is necessitated by an emergency. The40 governing body is not required to comply with subsection (c) or (d).41 If the governing body determines that an emergency exists, the42 governing body may adopt a resolution to amend the plan. An

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1 amendment to the plan is not subject to the deadline and the2 procedures for adoption described in this section.3 Sec. 7. (a) This section sets forth an exclusive list of the4 expenditures that may be made from the operations fund under5 section 5(1) of this chapter, as set forth in the school corporation's6 plan or amended plan.7 (b) Subject to the expenditures that are identified in the school8 corporation's plan or amended plan, the operations fund shall be9 used for the following:

10 (1) Site acquisition.11 (2) Site development.12 (3) Building acquisition, construction, replacement,13 renovation, remodeling, improvement, and maintenance,14 including building materials and employment services15 described in subsection (c).16 (4) Rental of real estate, buildings, facilities, and equipment.17 However, the fund may not be used for payments authorized18 under IC 20-47-2 and IC 20-47-3.19 (5) To repair and replace buildings and to repair and replace20 building fixtures that are:21 (A) owned or leased by the school corporation; and22 (B) of a type constituting loss capable of being covered by23 casualty insurance.24 (6) Purchase, lease, repair, or maintenance of equipment,25 including maintenance vehicles to be used by the school26 corporation. However, the fund may not be used to pay for27 the following:28 (A) The purchase, lease, repair, or maintenance of vehicles29 that are not maintenance vehicles.30 (B) Except as provided in subdivision (7), equipment to be31 used primarily for interscholastic or extracurricular32 activities.33 (7) Service contracts for janitorial and custodial services,34 maintenance services, snow and ice removal services, trash35 removal services, mowing and lawn care services, pest control36 services, and any other routine services normally required in37 the maintenance or upkeep of school facilities.38 (8) Repair, replacement, or site acquisition that is necessitated39 by an emergency.40 (9) Construction, repair, replacement, remodeling, or41 maintenance of a school sports facility. However, the42 maximum expenditures under this subdivision in a calendar

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1 year may not exceed two and seven tenths percent (2.7%) of2 the property tax revenues levied for the fund in the calendar3 year.4 (10) Utilities.5 (11) Property and casualty insurance.6 (12) Purchase, lease, upgrade, maintain, or repair technology7 that will not be allocated to student instruction and learning8 under IC 20-42.5, including the following:9 (A) Computer hardware, computer software, wiring and

10 computer networks, and communication access systems11 used to connect with computer networks or electronic12 gateways.13 (B) Services of full-time or part-time computer14 maintenance employees.15 (C) Conducting nonrecurring inservice technology training16 of school employees.17 (D) Implementing the technology preparation curriculum18 under IC 20-30-12.19 (E) Participating in a program to provide educational20 technologies, including:21 (i) computers in the homes of students (commonly22 referred to as "the buddy system project") under23 IC 20-20-13-6;24 (ii) the 4R's technology program; or25 (iii) any other program under the educational technology26 program described in IC 20-20-13.27 (F) Obtaining any combination of equipment or services28 described in clauses (D) and (E).29 (13) To pay advances, together with interest on the advances,30 from the common school fund for educational technology31 programs under IC 20-49-4.32 (14) To pay for energy saving contracts entered into by a33 school corporation under IC 36-1-12.5.34 (15) To maintain a joint school established with a school35 corporation in an adjacent state under IC 20-23-11 as is36 otherwise provided by law for maintaining the public schools37 in Indiana.38 (16) To pay a judgment rendered against the school39 corporation, or rendered against an officer or employee of the40 school corporation for which the school corporation is liable41 under IC 34-13-2, IC 34-13-3, or IC 34-13-4 (or IC 34-4-16.5,42 IC 34-4-16.6, or IC 34-4-16.7 before their repeal).

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1 (17) To pay a claim or settlement for which the school2 corporation is liable under IC 34-13-2, IC 34-13-3, or3 IC 34-13-4 (or IC 34-4-16.5, IC 34-4-16.6, or IC 34-4-16.74 before their repeal).5 (18) To pay a premium, management fee, claim, or settlement6 for which the school corporation is liable under a federal or7 state statute, including IC 22-3 and IC 22-4.8 (19) To pay a settlement or claim for which insurance9 coverage is permitted under IC 20-26-5-4(a)(15).

10 (20) All other lawful expenses that are not expenses described11 in IC 20-40-2-4.12 (21) To pay for expenses incurred as a result of unusual13 circumstances.14 (c) The fund shall be used to pay for services of school15 corporation employees who perform services considered to be a16 skilled trade by the United States Department of Labor,17 Employment and Training Administration. For purposes of this18 subsection, skilled trade services do not include janitorial or19 comparable routine services normally provided in the daily20 operation of school facilities or equipment. Payment may be made21 for employee services only if the employees perform:22 (1) construction of;23 (2) renovation of;24 (3) remodeling of;25 (4) repair of; or26 (5) maintenance on;27 the facilities and equipment of the school corporation.28 Sec. 8. (a) A school corporation shall use the operations fund to29 pay the transportation costs attributable to transportation of30 school children as specified in subsection (b).31 (b) Only the following costs are payable from the fund:32 (1) Salaries paid to bus drivers, transportation supervisors,33 mechanics and garage employees, clerks, and other34 transportation related employees.35 (2) Contracted transportation services.36 (3) Wages of independent contractors.37 (4) Contracts with common carriers.38 (5) Student fares.39 (6) Transportation related insurance.40 (7) Other expenses of operating the school corporation's41 transportation service, including gasoline, lubricants, tires,42 repairs, contracted repairs, parts, supplies, equipment, and

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1 other related expenses.2 (c) Percentages or parts of salaries of teaching personnel or3 principals are not attributable to transportation. However, parts4 of salaries of instructional aides who are assigned to assist with the5 school transportation program are attributable to transportation.6 The costs described in this subsection (other than instructional aide7 costs) may not be budgeted for payment or paid from the fund.8 (d) Costs for a calendar year are those costs attributable to9 transportation for students during the school year ending in the

10 calendar year.11 Sec. 9. (a) Before a school corporation may use money in the12 operations fund for replacing school buses, a resolution approving13 the school bus replacement plan or amended plan must be14 submitted to the department of local government finance.15 (b) The department of local government finance shall prescribe16 the format of the plan. A plan must apply to at least the five (5)17 budget years immediately following the year the plan is adopted18 and include at least the following:19 (1) An estimate for each year to which it applies of the nature20 and amount of proposed expenditures from the fund.21 (2) An identification of:22 (A) the source of all revenue to be dedicated to the23 proposed expenditures in the upcoming budget year; and24 (B) the amount of property taxes to be collected in that25 year and the unexpended balance to be retained in the fund26 for expenditures proposed for a later year.27 (3) If the school corporation is seeking to:28 (A) acquire; or29 (B) contract for transportation services that will provide;30 additional school buses or school buses with a larger seating31 capacity as compared with the number and type of school32 buses from the prior school year, evidence of a demand for33 increased transportation services within the school34 corporation. Clause (B) does not apply if contracted35 transportation services are not paid from the fund.36 (4) If the school corporation is seeking to require a contractor37 to replace a school bus, evidence that the need exists for the38 replacement of the school bus. This subdivision does not apply39 if contracted transportation services are not paid from the40 operations fund.41 (5) Evidence that the school corporation that seeks to acquire42 additional school buses under this section is acquiring or

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1 contracting for the school buses only for the purposes2 specified in subdivision (3) or for replacement purposes.3 (c) If a school corporation wants to use money in the operations4 fund during the year to pay for school bus replacement, the5 governing body must adopt a resolution approving the bus6 replacement plan or amended plan. The governing body must hold7 a hearing on the adoption of the resolution as follows:8 (1) For a school corporation that has not elected to adopt a9 budget under IC 6-1.1-17-5.6 or for which a resolution

10 adopted under IC 6-1.1-17-5.6(d) is in effect, the school11 corporation must hold the hearing and adopt the resolution12 after January 1 and not later than November 1 of the13 immediately preceding year.14 (2) For a school corporation that elects to adopt a budget15 under IC 6-1.1-17-5.6, the school corporation must hold the16 hearing and adopt the resolution after January 1 and not later17 than April 1 of the immediately preceding school fiscal year.18 The governing body shall publish a notice of the hearing in19 accordance with IC 5-3-1-2(b). The governing body may hold the20 hearing and include the notice as part of a regular governing body21 meeting or part of the same hearing and notice for a capital22 projects expenditure plan. If an amendment to a bus replacement23 plan is being proposed, the governing body must declare the nature24 of and the need for the amendment in the resolution to adopt the25 amendment to the plan. The plan, as proposed to be amended, must26 comply with the requirements for a plan under this section.27 (d) If a governing body adopts the resolution specified in28 subsection (c), the school corporation must then submit the29 resolution to the department of local government finance in the30 manner prescribed by the department.31 (e) The operations fund is the exclusive fund to be used to pay32 for the replacement of school buses, either through a purchase33 agreement or under a lease agreement.34 (f) Before the last Thursday in August in the year preceding the35 first school year in which a proposed contract commences, the36 governing body of a school corporation may elect to designate a37 part of a:38 (1) transportation contract (as defined in IC 20-27-2-12);39 (2) fleet contract (as defined in IC 20-27-2-5); or40 (3) common carrier contract (as defined in IC 20-27-2-3);41 as an expenditure payable from the fund. An election under this42 subsection must be included in the resolution approving the school

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1 bus replacement plan or amended plan. The election applies2 throughout the term of the contract.3 (g) The amount that may be paid from the fund under this4 section in a school year is equal to the fair market lease value in the5 school year of each school bus, school bus chassis, or school bus6 body used under the contract, as substantiated by invoices,7 depreciation schedules, and other documented information8 available to the school corporation.9 (h) The allocation of costs under this section to the fund must

10 comply with the accounting standards prescribed by the state11 board of accounts.12 Sec. 10. (a) For purposes of section 7 of this chapter, an13 emergency when used with respect to repair or replacement is:14 (1) a fire;15 (2) a flood;16 (3) a windstorm;17 (4) a mechanical failure of any part of a structure; or18 (5) an unforeseeable circumstance.19 (b) For purposes of section 7 of this chapter, an emergency when20 used with respect to site acquisition is the unforeseeable21 availability of real property for purchase.22 Sec. 11. (a) Money in the operations fund may be transferred to23 the education fund to cover expenditures that are allocated to24 student instruction and learning under IC 20-42.5. The amount25 transferred from the operations fund to the education fund shall be26 reported by the school corporation to the department. The27 transfers made during the:28 (1) first six (6) months of each state fiscal year shall be29 reported before January 31 of the following year; and30 (2) last six (6) months of each state fiscal year shall be31 reported before July 31 of that year.32 (b) The report must include a short description of each purpose33 for which a transfer is being made and the amount of the transfer34 that corresponds to each purpose.35 (c) The department must post the report submitted under36 subsection (a) on the department's Internet web site.37 Sec. 12. (a) On July 1, 2018, the balances in the funds listed in38 subsections (b) and (c) shall be transferred to the operations fund.39 (b) The balances, as of June 30, 2018, shall be transferred to the40 operations fund from the following statutory funds:41 The school transportation fund (IC 20-40-6) (repealed).42 The school bus replacement fund (IC 20-40-7) (repealed).

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1 The capital projects fund (IC 20-40-8) (repealed).2 The repair and replacement fund (IC 20-40-11) (repealed).3 The self-insurance fund (IC 20-40-12) (repealed).4 The special purpose funds (IC 20-40-14) (repealed).5 The school technology fund (IC 20-40-15) (repealed).6 The school corporation's rainy day fund (IC 36-1-8-5.1).7 The school corporation's art association or historical society8 fund (IC 36-10-13).9 The school corporation's playground fund under

10 (IC 36-10-14).11 (c) The balances, as of June 30, 2018, shall be transferred to the12 operations fund from any fund or account that is not transferred13 to the school corporation's education fund under IC 20-40-2-7,14 including balances in the following funds or accounts:15 21st century scholars16 21st century learning center17 Access Indiana18 Adult and continuing education19 Alternative education20 Art association21 Career incentive22 Challenge grant for technology23 Child development association scholarship24 Child care program25 Child care and development block grant26 Community conservation27 Computer consortium and educational technology28 advancement29 Construction30 Construction, remodel, and equipment31 Construction, remodel, equipment, and building32 Cultural arts33 Dependent care34 Department of education drug education35 Drug free communities36 Early childhood intervention (first steps)37 Early intervention grant38 Economic education mini grant39 Educational license plates40 Electronic map generation41 Enhance alternative education programs42 Enhanced access

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1 Excess property tax replacement credit distribution2 Historical society3 Indiana school academic improvement program4 Innovative school improvement grant5 Instructional support6 ISTA settlement (2013)7 Joint service and supply area vocational8 Joint service and supply special education cooperative9 Joint services and supply other

10 Judgments11 Levy excess12 Local reading improvement13 Migrant farm workers14 Miscellaneous programs15 Performance based awards16 Playground17 Police continuing education18 Principal leadership academy19 Project lead the way20 Race to the top21 Reading recovery22 Recreational activities23 Removal of barriers to handicapped24 Repair and replacement25 Rural schools and low income program26 Safe school haven27 Scholarships and awards28 School-to-work implementation29 School intervention and career counseling30 School bus replacement31 School lunch32 School technology33 School library printed material34 School transportation35 School-to-work development act36 Secured schools safety grant37 Self-insurance38 Senator David C. Ford technology39 Serve America40 Step Ahead41 Summer youth employment42 Teacher quality improvement program

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1 Technology preparation2 Technology assistance for disabled individuals3 Technology planning grant4 Technology plan buddy5 Tutorial assistance6 Vocational & technology board grants7 Welfare activities8 Youth employment training9 (d) This section expires June 30, 2020.

10 Sec. 13. (a) After June 30, 2018, any property taxes collected11 from a levy imposed under any of the following shall be deposited12 in the operations fund:13 (2) IC 20-46-4 (school transportation fund levy) (repealed).14 (3) IC 20-46-5 (school bus replacement levy) (repealed).15 (4) IC 20-46-6 (capital projects levy) (repealed).16 (5) IC 36-10-13 (art association and historical society levies).17 (6) IC 36-10-14 (public playground levy).18 (b) This section expires June 30, 2020.19 SECTION 96. IC 20-40-19 IS ADDED TO THE INDIANA CODE20 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE21 JULY 1, 2018]:22 Chapter 19. School Corporation Referendum Controlled Project23 Tax Levy Fund24 Sec. 1. A referendum controlled project tax levy fund shall be25 created by each school corporation for which a controlled project26 was approved by the voters in a referendum under IC 6-1.1-20.27 Sec. 2. The referendum controlled project tax levy fund shall be28 used to deposit the following:29 (1) Revenue from the school corporation's property tax levy30 that is imposed as a result of being approved by the voters in31 a referendum of a controlled project for the school32 corporation under IC 6-1.1-20.33 (2) The sum of the following excise tax revenue received for34 deposit in the fund in the calendar year in which the school35 year begins:36 (A) Financial institution excise tax (IC 6-5.5).37 (B) Motor vehicle excise taxes (IC 6-6-5).38 (C) Commercial vehicle excise taxes (IC 6-6-5.5).39 (D) Boat excise tax (IC 6-6-11).40 (E) Aircraft license excise tax (IC 6-6-6.5).41 (3) Allocations of local income taxes to the school corporation42 under IC 6-3.6, if any.

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1 Sec. 3. The referendum controlled project tax levy may be used2 only for debt service, lease payments, and similar obligations3 actually due for a controlled project approved by the voters in a4 referendum under IC 6-1.1-20.5 SECTION 97. IC 20-41-2-5, AS AMENDED BY P.L.118-2016,6 SECTION 18, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE7 JULY 1, 2018]: Sec. 5. (a) A governing body in operating a curricular8 materials rental program under IC 20-26-5-4(a)(12) may use either of9 the following accounting methods:

10 (1) The governing body may supervise and control the program11 through the school corporation account, establishing a curricular12 materials rental corporation's education fund.13 (2) If curricular materials have not been purchased and financial14 commitments or guarantees for the purchases have not been made15 by the school corporation, the governing body may cause the16 program to be operated by the individual schools of the school17 corporation through the school corporation's extracurricular18 account or accounts in accordance with IC 20-41-1.19 (b) If the governing body determines that a hardship exists due to20 the inability of a student's family to purchase or rent curricular21 materials, taking into consideration the income of the family and the22 demands on the family, the governing body may furnish curricular23 materials to the student without charge, without reference to the24 application of any other statute or rule except IC 20-26-1 through25 IC 20-26-5, IC 20-26-7, IC 20-40-12, and IC 20-48-1.26 SECTION 98. IC 20-41-2-6, AS AMENDED BY P.L.286-2013,27 SECTION 123, IS AMENDED TO READ AS FOLLOWS28 [EFFECTIVE JULY 1, 2018]: Sec. 6. (a) If a school lunch fund is29 established under section 4 of this chapter and a curricular materials30 rental the school corporation's education fund is established used31 under section 5 of this chapter, the receipts and expenditures from a32 fund for the program to which the fund relates shall be made to and33 from the appropriate fund without appropriation or the application of34 other statutes and rules relating to the budgets of municipal35 corporations.36 (b) If either the lunch program or the curricular materials rental37 program is handled through the extracurricular account, the governing38 body of the school corporation shall approve the amount of the bond of39 the treasurer of the extracurricular account in an amount the governing40 body considers sufficient to protect the account for all funds coming41 into the hands of the treasurer of the account.42 SECTION 99. IC 20-42-1-5, AS ADDED BY P.L.2-2006,

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1 SECTION 165, IS AMENDED TO READ AS FOLLOWS2 [EFFECTIVE JULY 1, 2018]: Sec. 5. Any balance remaining in a fund3 shall be transferred to the debt service funds of the school corporations4 in the county. The amount transferred may be appropriated and paid to5 a school corporation's general operations fund.6 SECTION 100. IC 20-44-2-4, AS ADDED BY P.L.2-2006,7 SECTION 167, IS AMENDED TO READ AS FOLLOWS8 [EFFECTIVE JULY 1, 2018]: Sec. 4. A school corporation may impose9 a levy for a its operations fund, as permitted in IC 20-48-1-7, to repay

10 an emergency loan to the operations fund.11 SECTION 101. IC 20-44-3 IS REPEALED [EFFECTIVE JULY 1,12 2018]. (Application of Levy Excess to Reduce Property Taxes).13 SECTION 102. IC 20-45-7-29, AS ADDED BY P.L.2-2006,14 SECTION 168, IS AMENDED TO READ AS FOLLOWS15 [EFFECTIVE JULY 1, 2018]: Sec. 29. Receipts from the fund shall be16 credited by each qualified school corporation to its general operations17 fund. The budgets of each qualified school corporation shall reflect the18 anticipated receipts from the tax. Appropriations shall be made from19 the general operations fund by the qualified school corporations as20 other appropriations are made either in the annual budgets or by21 additional appropriations.22 SECTION 103. IC 20-45-8-26, AS ADDED BY P.L.2-2006,23 SECTION 168, IS AMENDED TO READ AS FOLLOWS24 [EFFECTIVE JULY 1, 2018]: Sec. 26. Receipts from the fund shall25 be credited by each qualified school corporation to its operations26 fund. In making its budget, each qualified school corporation shall take27 into account its anticipated receipts from the fund. The county auditor,28 before July 15 of each year, shall certify to each qualified school29 corporation the amount of its entitlement from the fund to be used in30 the preparation of its budget. Any qualified school corporation may31 also appropriate its entitlement by emergency appropriation in the same32 manner as any property tax receipt.33 SECTION 104. IC 20-46-1-3, AS ADDED BY P.L.2-2006,34 SECTION 169, IS AMENDED TO READ AS FOLLOWS35 [EFFECTIVE JULY 1, 2018]: Sec. 3. As used in this chapter, "fund"36 refers to the operating referendum tax levy fund.37 SECTION 105. IC 20-46-1-6, AS ADDED BY P.L.2-2006,38 SECTION 169, IS AMENDED TO READ AS FOLLOWS39 [EFFECTIVE JULY 1, 2018]: Sec. 6. A school corporation may impose40 a an operating referendum tax levy for the school corporation's fund41 in the amount allowed under:42 (1) section 7 of this chapter;

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1 (2) sections 8 through 19 of this chapter; or2 (3) both subdivisions (1) and (2).3 SECTION 106. IC 20-46-1-9, AS AMENDED BY P.L.146-2008,4 SECTION 496, IS AMENDED TO READ AS FOLLOWS5 [EFFECTIVE JULY 1, 2018]: Sec. 9. A An operating referendum tax6 levy under this chapter may be put into effect only if a majority of the7 individuals who vote in a referendum that is conducted in accordance8 with this section and sections 10 through 19 of this chapter approves9 the appellant school corporation's making a levy for the ensuing

10 calendar year.11 SECTION 107. IC 20-46-1-19, AS AMENDED BY P.L.155-2014,12 SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE13 JULY 1, 2018]: Sec. 19. If a majority of the persons who voted in the14 referendum did not vote "yes" on the referendum question:15 (1) the school corporation may not make any levy for its16 operating referendum tax levy fund; and17 (2) another referendum under this section may not be held earlier18 than three hundred fifty (350) days after the date of the19 referendum.20 SECTION 108. IC 20-46-3-6, AS AMENDED BY P.L.137-2012,21 SECTION 112, IS AMENDED TO READ AS FOLLOWS22 [EFFECTIVE JULY 1, 2018]: Sec. 6. Subject to IC 6-1.1-18.5-9.923 (before its repeal), The department of local government finance may24 allow a school corporation to establish a levy. The amount of the levy25 shall be determined each year and the levy may not exceed the lesser26 of the following:27 (1) The revenue derived from a tax rate of eight and thirty-three28 hundredths cents ($0.0833) for each one hundred dollars ($100)29 of assessed valuation within the school corporation.30 (2) The revenue derived from a tax rate levy equal to the31 difference between the maximum rate levy allowed for the school32 corporation's capital projects operations fund under IC 20-46-633 IC 20-46-8 minus the actual capital projects operations fund rate34 levy that will be in effect for the school corporation for a35 particular year.36 SECTION 109. IC 20-46-4 IS REPEALED [EFFECTIVE JULY 1,37 2018]. (School Transportation Levy).38 SECTION 110. IC 20-46-5 IS REPEALED [EFFECTIVE JULY 1,39 2018]. (School Bus Replacement Levy).40 SECTION 111. IC 20-46-6 IS REPEALED [EFFECTIVE JULY 1,41 2018]. (Capital Projects Levy).42 SECTION 112. IC 20-46-7-8, AS AMENDED BY P.L.146-2008,

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1 SECTION 509, IS AMENDED TO READ AS FOLLOWS2 [EFFECTIVE JULY 1, 2018]: Sec. 8. (a) This section does not apply3 to the following:4 (1) Bonds or lease rental agreements for which a school5 corporation:6 (A) after June 30, 2008, makes a preliminary determination as7 described in IC 6-1.1-20-3.1 or IC 6-1.1-20-3.5 or a decision8 as described in IC 6-1.1-20-5; or9 (B) in the case of bonds or lease rental agreements not subject

10 to IC 6-1.1-20-3.1, IC 6-1.1-20-3.5, or IC 6-1.1-20-5, adopts a11 resolution or ordinance authorizing the bonds or lease rental12 agreement after June 30, 2008.13 (2) Repayment from the debt service fund of loans made after14 June 30, 2008, for the purchase of school buses under15 IC 20-27-4-5.16 (b) A school corporation must file a petition requesting approval17 from the department of local government finance to:18 (1) incur bond indebtedness;19 (2) enter into a lease rental agreement; or20 (3) repay from the debt service fund loans made for the purchase21 of school buses under IC 20-27-4-5;22 not later than twenty-four (24) months after the first date of publication23 of notice of a preliminary determination under IC 6-1.1-20-3.1(2),24 unless the school corporation demonstrates that a longer period is25 reasonable in light of the school corporation's facts and circumstances.26 (c) A school corporation must obtain approval from the department27 of local government finance before the school corporation may:28 (1) incur the indebtedness;29 (2) enter into the lease agreement; or30 (3) repay the school bus purchase loan.31 (d) This restriction does not apply to property taxes that a school32 corporation levies to pay or fund bond or lease rental indebtedness33 created or incurred before July 1, 1974. In addition, this restriction does34 not apply to a lease agreement or a purchase agreement entered into35 between a school corporation and the Indiana bond bank for the lease36 or purchase of a school bus under IC 5-1.5-4-1(a)(5), if the lease37 agreement or purchase agreement conforms with the school38 corporation's ten (10) year school bus replacement plan. approved by39 the department of local government finance under IC 21-2-11.5-3.140 (before its repeal), or IC 20-46-5.41 (e) This section does not apply to school bus purchase loans made42 by a school corporation that will be repaid solely from the general

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1 operations fund of the school corporation.2 SECTION 113. IC 20-46-7-15, AS ADDED BY P.L.229-2011,3 SECTION 221, IS AMENDED TO READ AS FOLLOWS4 [EFFECTIVE JULY 1, 2018]: Sec. 15. (a) As used in this section,5 "debt service fund" includes the separate debt service fund for the6 payment of debt service on bonds used to implement solutions to a7 contractual retirement or severance liability.8 (b) As used in this section, "eligible school corporation" has the9 meaning set forth in IC 5-1-5-2.5.

10 (c) As used in this section, "increment" refers to the annual11 increment computed under IC 5-1-5-2.5 with respect to bonds issued12 to retire or otherwise refund other bonds for each year that the bonds13 that are being retired or refunded would have been outstanding.14 (d) A school corporation may make a request to continue to impose15 a debt service fund levy in the amount that the school corporation16 would have been able to impose to pay debt service on bonds that were17 retired or refunded by the issuance of refunding bonds. A school18 corporation must include in its request a copy of the ordinance adopted19 under IC 5-1-5-2.5.20 (e) The department of local government finance shall grant the21 school corporation permission to continue to impose such a debt22 service fund levy if the department finds that the school corporation23 qualifies to issue refunding bonds under IC 5-1-5-2.5.24 (f) An eligible school corporation that is granted permission to25 impose a debt service fund levy as described in this section may26 transfer the lesser of the amount of credits granted under IC 6-1.1-20.627 against the school corporation's combined levy for all the school28 corporation's funds or the amount of the increment from the debt29 service fund to30 (1) the capital projects operations fund.31 (2) the transportation fund;32 (3) the school bus replacement fund; or33 (4) a combination of the funds in subdivisions (1) through (3).34 SECTION 114. IC 20-46-8 IS ADDED TO THE INDIANA CODE35 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE36 JULY 1, 2018]:37 Chapter 8. School Corporation Operations Fund Property Tax38 Levy39 Sec. 1. A school corporation may impose a property tax levy for40 its school corporation operations fund (IC 20-40-18). The41 operations fund levy replaces the authority to impose property42 taxes under the following property tax levy provisions:

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1 (1) The school transportation fund levy (IC 20-46-4)2 (repealed).3 (2) The school bus replacement fund levy (IC 20-46-5)4 (repealed).5 (3) The capital projects fund levy (IC 20-46-6) (repealed).6 (4) The levy under IC 36-10-13 to provide funding for an art7 association or a historical society.8 (5) The levy under IC 36-10-14 to provide funding for a public9 playground.

10 Sec. 2. For property taxes first due and payable after 2019, the11 maximum permissible ad valorem property tax levy for a school12 corporation's operations fund for an ensuing calendar year is:13 (1) the product of:14 (A) the school corporation's maximum permissible ad15 valorem property tax levy for the school corporation's16 operations fund for the current calendar year; multiplied17 by18 (B) the assessed value growth quotient determined under19 IC 6-1.1-18.5-2(b) for the ensuing calendar year; minus20 (2) the part of the property tax levy actually collected by a21 school corporation for taxes first due and payable during a22 particular calendar year that exceeds the school corporation's23 total levy, as approved by the department of local government24 finance under IC 6-1.1-17, for those property taxes.25 Sec. 3. (a) For property taxes first due and payable in 2019, the26 department of local government finance shall establish a maximum27 permissible ad valorem property tax levy for a school corporation's28 operations fund as follows:29 (1) Determine the following for 2018:30 (A) The maximum permissible ad valorem property tax31 levy for the school transportation fund (IC 20-46-4)32 (repealed).33 (B) The maximum permissible ad valorem property tax34 levy for the school bus replacement fund (IC 20-46-5)35 (repealed).36 (C) The capital projects fund levy (IC 20-46-6) (repealed),37 determined by using the maximum property tax rate38 determined under IC 6-1.1-18-12 that could have been used39 in determining the levy for 2018, including the levy amount40 that could have been used for qualified utility and41 insurance costs under IC 20-46-6-6 (repealed) for 2018.42 (D) The levy for an art association or a historical society

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1 under IC 36-10-13.2 (E) The levy for a playground fund under IC 36-10-14.3 (2) Multiply the amount determined under subdivision (1) by4 the assessed value growth quotient determined under5 IC 6-1.1-18.5-2(b).6 The department of local government finance may adjust the7 maximum levy for 2019 for the operations fund to account for any8 adjustments that would have been made for 2019 to the maximum9 levies listed in subdivision (1).

10 (b) This section expires June 30, 2020.11 SECTION 115. IC 20-47-1-5, AS AMENDED BY P.L.142-2009,12 SECTION 30, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE13 JULY 1, 2018]: Sec. 5. (a) The governing body of a school corporation14 may donate the proceeds of a grant, a gift, a donation, an endowment,15 a bequest, a trust, an agreement to share tax revenue received by a city16 or county under IC 4-33-12-6 or IC 4-33-13, or an agreement to share17 revenue received by a political subdivision under IC 4-35-8.5, or other18 funds not generated from taxes levied by the school corporation, to a19 foundation under the following conditions:20 (1) The foundation is a charitable nonprofit community21 foundation.22 (2) The foundation retains all rights to the donation, including23 investment powers, except as provided in subdivision (3).24 (3) The foundation agrees to do the following:25 (A) Hold the donation as a permanent endowment.26 (B) Distribute the income from the donation only to the school27 corporation as directed by resolution of the governing body of28 the school corporation.29 (C) Return the donation to the general operations fund of the30 school corporation if the foundation:31 (i) loses the foundation's status as a public charitable32 organization;33 (ii) is liquidated; or34 (iii) violates any condition of the endowment set by the35 governing body of the school corporation.36 (b) A school corporation may use income received under this37 section from a community foundation only for purposes of the school38 corporation.39 SECTION 116. IC 20-47-2-20, AS ADDED BY P.L.2-2006,40 SECTION 170, IS AMENDED TO READ AS FOLLOWS41 [EFFECTIVE JULY 1, 2018]: Sec. 20. A school corporation that42 executes a lease under this chapter shall annually appropriate from its

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1 debt service fund or general operations fund an amount sufficient to2 pay the lease rental required under the lease. The appropriation is3 reviewable by other bodies vested by law with such authority to4 ascertain that the specified amount is sufficient to meet the lease rental5 required under the lease. The first specific appropriation shall be made6 at the first budget period following the date of the execution of the7 lease, and the first annual appropriation must be sufficient to pay the8 estimated amount of the first annual lease rental payment to be made9 under the lease. Thereafter, the annual appropriations provided for in

10 this section shall be made, and payments shall be made from the debt11 service fund.12 SECTION 117. IC 20-47-2-23, AS ADDED BY P.L.2-2006,13 SECTION 170, IS AMENDED TO READ AS FOLLOWS14 [EFFECTIVE JULY 1, 2018]: Sec. 23. (a) Upon the termination of a15 lease entered into under this chapter, the lessor corporation shall return16 to the school corporation any money held by the lessor corporation that17 exceeds the amount needed to retire bonds issued under this chapter18 and to dissolve the lessor corporation.19 (b) A school corporation shall deposit the money received under20 subsection (a) in its debt service fund or capital projects operations21 fund.22 SECTION 118. IC 20-47-3-18, AS ADDED BY P.L.2-2006,23 SECTION 170, IS AMENDED TO READ AS FOLLOWS24 [EFFECTIVE JULY 1, 2018]: Sec. 18. (a) Upon the termination of a25 lease entered into under this chapter, the lessor corporation shall return26 to the school corporation any money held by the lessor corporation that27 exceeds the amount needed to retire bonds issued under this chapter28 and to dissolve the lessor corporation.29 (b) A school corporation shall deposit the money received under30 subsection (a) in its debt service fund or its capital projects operations31 fund.32 SECTION 119. IC 20-47-4-10, AS ADDED BY P.L.2-2006,33 SECTION 170, IS AMENDED TO READ AS FOLLOWS34 [EFFECTIVE JULY 1, 2018]: Sec. 10. A school corporation that sells35 an existing school building under section 6 of this chapter shall deposit36 the proceeds of the sale in the school corporation's capital projects37 operations fund and use the proceeds only for:38 (1) new construction of school buildings;39 (2) related site acquisition; and40 (3) related site development.41 However, any amount of the proceeds of the sale that are not used for42 a purpose described in subdivisions (1) through (3) within one (1) year

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1 after the school corporation receives the proceeds must be transferred2 to the school corporation's debt service fund.3 SECTION 120. IC 20-48-1-2, AS AMENDED BY P.L.145-2012,4 SECTION 27, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE5 JULY 1, 2018]: Sec. 2. (a) As used in this section, "retirement or6 severance liability" means the payments anticipated to be required to7 be made to employees of a school corporation upon or after termination8 of the employment of the employees by the school corporation under9 an existing or previous employment agreement.

10 (b) This section applies to each school corporation that:11 (1) did not issue bonds under IC 20-5-4-1.7 before its repeal; or12 (2) issued bonds under IC 20-5-4-1.7 (repealed):13 (A) before April 14, 2003; or14 (B) after April 13, 2003, if an order approving the issuance of15 the bonds was issued by the department of local government16 finance before April 14, 2003.17 (c) In addition to the purposes set forth in section 1 of this chapter,18 a school corporation described in subsection (b) may issue bonds to19 implement solutions to contractual retirement or severance liability.20 The issuance of bonds for this purpose is subject to the following21 conditions:22 (1) The school corporation may issue bonds under this section23 only one (1) time.24 (2) A school corporation described in subsection (b)(1) or25 (b)(2)(A) must issue the bonds before July 1, 2006.26 (3) The solution to which the bonds are contributing must be27 reasonably expected to reduce the school corporation's unfunded28 contractual liability for retirement or severance payments as it29 existed on June 30, 2001.30 (4) The amount of the bonds that may be issued for the purpose31 described in this section may not exceed:32 (A) two percent (2%) of the true tax value of property in the33 school corporation, for a school corporation that did not issue34 bonds under IC 20-5-4-1.7 (before its repeal); or35 (B) the remainder of:36 (i) two percent (2%) of the true tax value of property in the37 school corporation as of the date that the school corporation38 issued bonds under IC 20-5-4-1.7 (before its repeal); minus39 (ii) the amount of bonds that the school corporation issued40 under IC 20-5-4-1.7 (before its repeal);41 for a school corporation that issued bonds under IC 20-5-4-1.742 (repealed) as described in subsection (b)(2).

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1 (5) Each year that a debt service levy is needed under this section,2 the school corporation shall reduce the total property tax levy for3 the school corporation's transportation, school bus replacement,4 capital projects, and art association and historical society funds,5 as appropriate, operations fund in an amount equal to6 (A) the property tax levy needed for the debt service under this7 section. multiplied by8 (B) the adjustment percentage set forth in subsection (f) or (g),9 as applicable.

10 The property tax rate for each of these funds the operations fund11 shall be reduced each year until the bonds are retired.12 (6) The school corporation shall establish a separate debt service13 fund for repayment of the bonds issued under this section.14 (d) Bonds issued for the purpose described in this section shall be15 issued in the same manner as other bonds of the school corporation.16 (e) Bonds issued under this section are not subject to the petition17 and remonstrance process under IC 6-1.1-20 or to the limitations18 contained in IC 36-1-15.19 (f) This subsection applies only if the governing body of a school20 corporation adopts a resolution specifying that the adjustment21 percentages under this subsection apply to the school corporation. The22 adjustment percentage under this subsection is the following:23 (1) For property taxes first due and payable in 2013, twenty-five24 percent (25%).25 (2) For property taxes first due and payable in 2014, fifty percent26 (50%).27 (3) For property taxes first due and payable in 2015, seventy-five28 percent (75%).29 (4) For property taxes first due and payable after 2015, one30 hundred percent (100%).31 (g) If the governing body of a school corporation does not adopt a32 resolution specifying that the adjustment percentages under subsection33 (f) apply to the school corporation, the adjustment percentage is one34 hundred percent (100%).35 SECTION 121. IC 20-48-1-2.5, AS ADDED BY P.L.220-2011,36 SECTION 340, IS AMENDED TO READ AS FOLLOWS37 [EFFECTIVE JULY 1, 2018]: Sec. 2.5. Notwithstanding the repeal of38 IC 20-5-4-1.7, as added by P.L.253-2001, the following provisions39 apply to bonds issued under IC 20-5-4-1.7, as added by P.L.253-2001,40 before December 31, 2004:41 (1) The bonds remain valid and binding obligations of the school42 corporation that issued them, as if IC 20-5-4-1.7 had not been

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1 repealed.2 (2) Each year that a debt service levy is needed for the bonds, the3 school corporation that issued the bonds shall reduce its total4 property tax levy for the school corporation's other funds5 operations fund in an amount equal to the property tax levy6 needed for the debt service on the bonds.7 SECTION 122. IC 20-48-1-6, AS ADDED BY P.L.2-2006,8 SECTION 171, IS AMENDED TO READ AS FOLLOWS9 [EFFECTIVE JULY 1, 2018]: Sec. 6. (a) The governing body shall

10 provide for the payment of principal and interest on bonds executed11 under section 5 of this chapter by levying annually a tax for its debt12 service fund that is sufficient to pay the principal and interest as the13 bonds become due.14 (b) The bodies charged with the review of budgets and tax levies15 shall review a levy for principal and interest described in subsection (a)16 to determine whether the levy is sufficient.17 SECTION 123. IC 20-48-1-9, AS AMENDED BY P.L.146-2008,18 SECTION 524, IS AMENDED TO READ AS FOLLOWS19 [EFFECTIVE JULY 1, 2018]: Sec. 9. (a) If the governing body of a20 school corporation finds and declares that an emergency exists to21 borrow money with which to pay current expenses from a particular22 fund before the receipt of revenues from taxes levied or state tuition23 support distributions for the fund, the governing body may issue24 warrants in anticipation of the receipt of the revenues.25 (b) The principal of warrants issued under subsection (a) is payable26 solely from the fund for which the taxes are levied or from the school27 corporation's general education fund in the case of anticipated state28 tuition support distributions. However, the interest on the warrants may29 be paid from the debt service fund, from the operations fund, for30 which the taxes are levied, or the general education fund in the case of31 anticipated state tuition support distributions.32 (c) The amount of principal of temporary loans maturing on or33 before June 30 for any fund may not exceed eighty percent (80%) of34 the amount of taxes and state tuition support distributions estimated to35 be collected or received for and distributed to the fund at the June36 settlement.37 (d) The amount of principal of temporary loans maturing after June38 30 and on or before December 31 may not exceed eighty percent (80%)39 of the amount of taxes and state tuition support distributions estimated40 to be collected or received for and distributed to the fund at the41 December settlement.42 (e) The county auditor or the auditor's deputy shall determine the

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1 estimated amount of taxes and state tuition support distributions to be2 collected or received and distributed. The warrants evidencing a loan3 in anticipation of tax revenue or state tuition support distributions may4 not be delivered to the purchaser of the warrant and payment may not5 be made on the warrant before January 1 of the year the loan is to be6 repaid. However, the proceedings necessary for the loan may be held7 and carried out before January 1 and before the approval. The loan may8 be made even though a part of the last preceding June or December9 settlement has not been received.

10 (f) Proceedings for the issuance and sale of warrants for more than11 one (1) fund may be combined. Separate warrants for each fund must12 be issued, and each warrant must state on the face of the warrant the13 fund from which the warrant's principal is payable. An action to contest14 the validity of a warrant may not be brought later than fifteen (15) days15 after the first publication of notice of sale.16 (g) An issue of tax or state tuition support anticipation warrants may17 not be made if the total of all tax or state tuition support anticipation18 warrants exceeds twenty thousand dollars ($20,000) until the issuance19 is advertised for sale, bids are received, and an award is made by the20 governing body as required for the sale of bonds, except that the21 publication of notice of the sale is not necessary:22 (1) outside the county; or23 (2) more than ten (10) days before the date of sale.24 SECTION 124. IC 20-48-3-5, AS ADDED BY P.L.2-2006,25 SECTION 171, IS AMENDED TO READ AS FOLLOWS26 [EFFECTIVE JULY 1, 2018]: Sec. 5. (a) The board may, if the board's27 general school corporation's operations fund is exhausted or in the28 board's judgment is in danger of exhaustion, make temporary loans for29 the use of the board's general operations fund to be paid out of the30 proceeds of taxes levied by the school city for the board's general31 operations fund. The amount borrowed for the general operations32 fund must be paid into the board's general operations fund and may be33 used for any purpose for which the board's general operations fund34 lawfully may be used. A temporary loan must:35 (1) be evidenced by the promissory note or notes of the school36 city;37 (2) bear interest that is payable, according to the note or notes,38 periodically or at the maturity of the note or notes and at not more39 than seven percent (7%) per annum; and40 (3) mature at a time or times determined by the board, but not41 later than one (1) year after the date of the note or notes.42 Loans made in a calendar year may not be for a sum greater than the

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1 amount estimated by the board as proceeds to be received by the board2 from the levy of taxes made by the school city for the board's general3 operations fund. Successive loans may be made to aid the general4 operations fund in a calendar year, but the total amount of successive5 loans outstanding at any time may not exceed the estimated proceeds6 of taxes levied for the board's general operations fund.7 (b) A loan under this section may not be made until notice asking8 for bids is given by newspaper publication. Notice must be made one9 (1) time in a newspaper published in the school city at least seven (7)

10 days before the time the bids for the loans will be opened. A bidder11 shall name the amount of interest the bidder agrees to accept, not12 exceeding seven percent (7%) per annum. The loan shall be made to13 the bidder or bidders bidding the lowest rate of interest. The note,14 notes, or warrants may not be delivered until the full price of the face15 of the loan is paid to the treasurer of the school city, and interest does16 not accrue on the loan until delivery.17 SECTION 125. IC 20-48-3-6, AS ADDED BY P.L.2-2006,18 SECTION 171, IS AMENDED TO READ AS FOLLOWS19 [EFFECTIVE JULY 1, 2018]: Sec. 6. (a) A school city wishing to make20 a temporary loan for its general operations fund under this section may21 temporarily borrow money, without payment of interest, from the22 school city's treasury if the school city has in its treasury money derived23 from the sale of bonds that cannot or will not in the due course of the24 business of the school city be expended in the near future. A school city25 shall, by its board, take the following steps required by law to obtain a26 temporary loan under this section:27 (1) Present to the department of local government finance and the28 state board of accounts:29 (A) a copy of the corporate action of the school city30 concerning the school city's desire to make a temporary loan;31 (B) a petition showing the particular need for a temporary32 loan;33 (C) the amount and the date or dates when the general34 operations fund will need the temporary loan or the35 installments of the loan;36 (D) the date on which the loan and each installment of the loan37 will be needed;38 (E) the estimated amounts from taxes to come into the general39 operations fund;40 (F) the dates when it is expected the proceeds of taxes will be41 received by the school city for the general operations fund;42 (G) the amount of money the school city has in each deposited

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1 in the operations fund that is derived from the proceeds of2 the sale of bonds that cannot or will not be expended in the3 near future; and4 (H) a showing of when, to what extent, and why money5 deposited in the bond service operations fund under clause6 (G) will not be expended in the near future.7 (2) Request the department of local government finance and the8 state board of accounts to authorize a temporary loan from the9 bond service fund for the general operations fund.

10 (b) If:11 (1) the department of local government finance finds and orders12 that there is need for a temporary loan and that it should be made;13 (2) the state board of accounts finds that the money proposed to14 be borrowed will not be needed during the period of the15 temporary loan by the fund from which it is to be borrowed; and16 (3) the state board of accounts and the department of local17 government finance approve the loan;18 the business manager and treasurer of the school city shall, upon the19 approval of the state board of accounts and the department of local20 government finance, take all steps necessary to transfer the amount of21 the loans as a temporary loan from the fund to be borrowed from to the22 general operations fund of the school city. The loan is a debt of the23 school city chargeable against its constitutional debt limit.24 (c) The state board of accounts and the department of local25 government finance:26 (1) may fix the total amount that may be borrowed on a petition;27 and28 (2) shall determine:29 (A) at what time or times;30 (B) in what installments; and31 (C) for what periods;32 the money may be borrowed.33 The treasurer and business manager of the school city, as money is34 collected from taxes levied on behalf of the general operations fund,35 shall credit the amount of money collected from taxes levied to the loan36 until the amount borrowed is fully repaid to the fund from which the37 loan was made. The treasurer and business manager of the school city38 shall at the end of each calendar month report to the board the amounts39 applied from taxes to the payment of the loan.40 (d) The school city shall, as often as once a month, report to both the41 state board of accounts and the department of local government42 finance:

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1 (1) the amount of money borrowed and unpaid;2 (2) any anticipated similar borrowings for the current month;3 (3) the amount left in the general operations fund; and4 (4) the anticipated drafts on the bond service operations fund for5 the purposes for which the fund was created.6 (e) The state board of accounts and the department of local7 government finance, or either acting independently:8 (1) if it appears that the fund from which the loan was made9 requires the repayment of all or part of the loan before maturity;

10 or11 (2) if the general operations fund no longer requires all or part of12 the proceeds of the loan;13 may require the school city to repay all or part of the loan. A school14 city shall, if necessary to repay all or part of a loan under this15 subsection, exercise its power to obtain a temporary loan from others16 under section 5 of this chapter to raise the money needed to repay the17 bond service fund the amount ordered repaid.18 SECTION 126. IC 20-49-2-16, AS ADDED BY P.L.2-2006,19 SECTION 172, IS AMENDED TO READ AS FOLLOWS20 [EFFECTIVE JULY 1, 2018]: Sec. 16. A school corporation receiving21 an advancement under this chapter may annually levy a tax in the debt22 service fund to replace the amount deducted in the current year from23 the distribution of state tuition support under this chapter. The amount24 received from the tax shall be transferred from the debt service fund to25 the general operations fund.26 SECTION 127. IC 20-49-4-12, AS ADDED BY P.L.2-2006,27 SECTION 172, IS AMENDED TO READ AS FOLLOWS28 [EFFECTIVE JULY 1, 2018]: Sec. 12. To qualify for an advance under29 this chapter, a school corporation must establish a capital projects an30 operations fund under IC 20-40-8. IC 20-40-18. The state board, after31 consulting with the department and the budget agency, may waive or32 modify this requirement upon a showing of good cause by the school33 corporation.34 SECTION 128. IC 20-49-4-21, AS ADDED BY P.L.2-2006,35 SECTION 172, IS AMENDED TO READ AS FOLLOWS36 [EFFECTIVE JULY 1, 2018]: Sec. 21. A school corporation to which37 an advance is made for a school building construction program may38 annually levy a property tax in the debt service fund to replace the39 amount deducted under this chapter in the current year from the40 distribution of state tuition support. The amount received from the tax41 must be transferred from the debt service fund to the general education42 fund.

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1 SECTION 129. IC 20-49-4-22, AS ADDED BY P.L.2-2006,2 SECTION 172, IS AMENDED TO READ AS FOLLOWS3 [EFFECTIVE JULY 1, 2018]: Sec. 22. A school corporation to which4 an advance is made for an educational technology program may5 annually levy a property tax in the capital projects operations fund or6 the debt service fund to replace the amount deducted under this chapter7 in the current year from the distribution of state tuition support. The8 amount received from the tax must be transferred from the capital9 projects fund or the debt service fund, as applicable, if used, to the

10 general education fund.11 SECTION 130. IC 36-1-8-5, AS AMENDED BY P.L.233-2015,12 SECTION 328, IS AMENDED TO READ AS FOLLOWS13 [EFFECTIVE JULY 1, 2018]: Sec. 5. (a) This section applies to all14 funds raised by a general or special tax levy on all the taxable property15 of a political subdivision.16 (b) Whenever the purposes of a tax levy have been fulfilled and an17 unused and unencumbered balance remains in the fund, the fiscal body18 of the political subdivision shall order the balance of that fund to be19 transferred as follows, unless a statute provides that it be transferred20 otherwise:21 (1) Funds of a county, to the general fund or rainy day fund of the22 county, as provided in section 5.1 of this chapter.23 (2) Funds of a municipality, to the general fund or rainy day fund24 of the municipality, as provided in section 5.1 of this chapter.25 (3) Funds of a township for redemption of township assistance26 obligations, to the township assistance fund of the township or27 rainy day fund of the township, as provided in section 5.1 of this28 chapter.29 (4) Funds of any other political subdivision, to the general fund or30 rainy day fund of the political subdivision, as provided in section31 5.1 of this chapter. However, if the political subdivision is32 dissolved or does not have a general fund or rainy day fund and33 is not a school corporation, then to the general fund of each of34 the units located in the political subdivision in the same35 proportion that the assessed valuation of the unit bears to the total36 assessed valuation of the political subdivision. In the case of a37 school corporation, the school corporation may transfer the38 amount received to any of its funds.39 (c) Whenever an unused and unencumbered balance remains in the40 civil township fund of a township and a current tax levy for the fund is41 not needed, the township fiscal body may order any part of the balance42 of that fund transferred to the debt service fund of the school

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1 corporation located in or partly in the township. However, if more than2 one (1) school corporation is located in or partly in the township, then3 any sum transferred shall be transferred to the debt service fund of each4 of those school corporations in the same proportion that the part of the5 assessed valuation of the school corporation in the township bears to6 the total assessed valuation of the township.7 (d) Whenever any township has collected any fund for the special8 or specific purpose of erecting or constructing a school building and9 the township trustee of the township decides to abandon the proposed

10 work of erecting or constructing the school building, the township11 trustee of the township shall transfer the fund collected for the special12 or specific purpose to the township fund of the township, upon the13 order of the township board to make the transfer. It is lawful thereafter14 to use the funds for any purpose for which the township funds of the15 township may be used.16 (e) Transfers to a political subdivision's rainy day fund may be made17 at any time during the political subdivision's fiscal year.18 SECTION 131. IC 36-1-8-5.1, AS AMENDED BY P.L.197-2016,19 SECTION 120, IS AMENDED TO READ AS FOLLOWS20 [EFFECTIVE JULY 1, 2018]: Sec. 5.1. (a) A political subdivision,21 other than a school corporation, may establish a rainy day fund by22 the adoption of:23 (1) an ordinance, in the case of a county, city, or town; or24 (2) a resolution, in the case of any other political subdivision.25 (b) An ordinance or a resolution adopted under this section must26 specify the following:27 (1) The purposes of the rainy day fund.28 (2) The sources of funding for the rainy day fund, which may29 include the following:30 (A) Unused and unencumbered funds under:31 (i) section 5 of this chapter; or32 (ii) IC 6-3.6-9-15.33 (B) Any other funding source:34 (i) specified in the ordinance or resolution adopted under35 this section; and36 (ii) not otherwise prohibited by law.37 (c) The rainy day fund is subject to the same appropriation process38 as other funds that receive tax money.39 (d) In any fiscal year, a political subdivision may, at any time, do the40 following:41 (1) Transfer any unused and unencumbered funds specified in42 subsection (b)(2)(A) from any fiscal year to the rainy day fund.

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1 (2) Transfer any other unobligated cash balances from any fiscal2 year that are not otherwise identified in subsection (b)(2)(A) or3 section 5 of this chapter to the rainy day fund as long as the4 transfer satisfies the following requirements:5 (A) The amount of the transfer is authorized by and identified6 in an ordinance or resolution.7 (B) The amount of the transfer is not more than ten percent8 (10%) of the political subdivision's total annual budget9 adopted under IC 6-1.1-17 for that fiscal year.

10 (C) The transfer is not made from a debt service fund.11 (e) A political subdivision may use only the funding sources12 specified in subsection (b)(2)(A) or in the ordinance or resolution13 establishing the rainy day fund. The political subdivision may adopt a14 subsequent ordinance or resolution authorizing the use of another15 funding source.16 (f) The department of local government finance may not reduce the17 actual or maximum permissible levy of a political subdivision as a18 result of a balance in the rainy day fund of the political subdivision.19 (g) A county, city, or town may at any time, by ordinance or20 resolution, transfer to:21 (1) its general fund; or22 (2) any other appropriated funds of the county, city, or town;23 money that has been deposited in the rainy day fund of the county, city,24 or town.25 SECTION 132. IC 36-10-13-4 IS REPEALED [EFFECTIVE JULY26 1, 2018]. Sec. 4. (a) This section does not apply to a school corporation27 in a county having a population of more than two hundred fifty28 thousand (250,000) but less than two hundred seventy thousand29 (270,000).30 (b) The governing body of a school corporation may annually31 appropriate, from the school corporation's general fund, a sum of not32 more than five-tenths of one cent ($0.005) on each one hundred dollars33 ($100) of assessed valuation in the school corporation to be paid to a34 historical society, subject to section 6 of this chapter.35 SECTION 133. IC 36-10-13-5, AS AMENDED BY P.L.119-2012,36 SECTION 244, IS AMENDED TO READ AS FOLLOWS37 [EFFECTIVE JULY 1, 2018]: Sec. 5. (a) This section applies only to38 a school corporation in a county having a population of more than two39 hundred fifty thousand (250,000) but less than two hundred seventy40 thousand (270,000).41 (b) To provide funding for a historical society under this section, the42 governing body of a school corporation may impose a tax of not more

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1 than five-tenths of one cent ($0.005) on each one hundred dollars2 ($100) of assessed valuation in the school corporation.3 (c) The school corporation shall deposit the proceeds of the tax in4 a fund. to be known as the historical society fund. The historical society5 fund is separate and distinct from the school corporation's general fund6 and may be used only to provide funds for a historical society under7 this section.8 (d) (b) Subject to section 6 of this chapter, the governing body of the9 school corporation may annually appropriate the money in the

10 operations fund to be paid in semiannual installments to a historical11 society having facilities in the county.12 SECTION 134. IC 36-10-13-6, AS ADDED BY P.L.1-2005,13 SECTION 48, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE14 JULY 1, 2018]: Sec. 6. Before a historical society may receive15 payments under sections 4 and 5 of this chapter, money from a school16 corporation, the historical society's governing board must adopt a17 resolution that entitles:18 (1) the governing body of the school corporation to appoint the19 school corporation's superintendent and one (1) history teacher as20 visitors who may attend all meetings of the society's governing21 board;22 (2) the governing body of the school corporation to nominate two23 (2) individuals for membership on the society's governing board;24 (3) the school corporation to use the society's facilities and25 equipment for educational purposes consistent with the society's26 purposes;27 (4) the students and teachers of the school corporation to tour the28 society's museum, if any, free of charge; and29 (5) the school corporation to borrow artifacts from the society's30 collection, if any, for temporary exhibit in the schools.31 SECTION 135. IC 36-10-13-7, AS AMENDED BY P.L.119-2012,32 SECTION 245, IS AMENDED TO READ AS FOLLOWS33 [EFFECTIVE JULY 1, 2018]: Sec. 7. (a) This section applies to school34 corporations in a county containing a city having a population of:35 (1) more than one hundred fifty thousand (150,000) but less than36 five hundred thousand (500,000);37 (2) more than one hundred ten thousand (110,000) but less than38 one hundred fifty thousand (150,000);39 (3) more than eighty thousand (80,000) but less than eighty40 thousand four hundred (80,400);41 (4) more than one hundred thousand (100,000) but less than one42 hundred ten thousand (110,000); or

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1 (5) more than eighty thousand five hundred (80,500) but less than2 one hundred thousand (100,000).3 (b) To provide funding for an art association under this section, the4 governing body of a school corporation may impose a tax of not more5 than five-tenths of one cent ($0.005) on each one hundred dollars6 ($100) of assessed valuation in the school corporation.7 (c) (b) The school corporation shall deposit the proceeds of the tax8 imposed under subsection (b) in a fund to be known as the art9 association fund. The art association fund is separate and distinct from

10 the school corporation's general fund and may be used only to provide11 funds for an art association under this section. The governing body of12 the school corporation may annually appropriate the money in the13 operations fund to be paid in semiannual installments to an art14 association having facilities in a city that is described in subsection (a),15 subject to subsection (d). (c).16 (d) (c) Before an art association may receive payments under this17 section, the association's governing board must adopt a resolution that18 entitles:19 (1) the governing body of the school corporation to appoint the20 school corporation's superintendent and director of art instruction21 as visitors who may attend all meetings of the association's22 governing board;23 (2) the governing body of the school corporation to nominate24 individuals for membership on the association's governing board,25 with at least two (2) of the nominees to be elected;26 (3) the school corporation to use the association's facilities and27 equipment for educational purposes consistent with the28 association's purposes;29 (4) the students and teachers of the school corporation to tour the30 association's museum and galleries free of charge;31 (5) the school corporation to borrow materials from the32 association for temporary exhibit in the schools;33 (6) the teachers of the school corporation to receive normal34 instruction in the fine and applied arts at half the regular rates35 charged by the association; and36 (7) the school corporation to expect exhibits in the association's37 museum that will supplement the work of the students and38 teachers of the corporation.39 A copy of the resolution, certified by the president and secretary of the40 association, must be filed in the office of the school corporation before41 payments may be received.42 (e) (d) A resolution filed under subsection (d) (c) is not required to

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1 be renewed annually. The resolution continues in effect until rescinded.2 An art association that complies with this section is entitled to continue3 to receive payments under this section as long as the art association4 complies with the resolution.5 (f) (e) If more than one (1) art association in a city that is described6 in subsection (a) qualifies to receive payments under this section, the7 governing body of the school corporation shall select the one (1) art8 association best qualified to perform the services described in9 subsection (d). (c). A school corporation may select only one (1) art

10 association to receive payments under this section.11 SECTION 136. IC 36-10-14-4 IS REPEALED [EFFECTIVE JULY12 1, 2018]. Sec. 4. Subject to IC 6-1.1-18-12, the board may levy a tax13 not exceeding sixty-seven hundredths of one cent ($0.0067) on each14 one hundred dollars ($100) of assessed valuation of the property in the15 city to create a fund to carry out this chapter.16 SECTION 137. [EFFECTIVE UPON PASSAGE] (a) The17 department of local government finance shall make available to 18 each school corporation guidance needed by the school corporation19 to make the transition on July 1, 2018, from the school20 corporation's funds as they existed on June 30, 2018, to the funds21 specified under this act. The department of local government22 finance shall make its guidance available to the extent the23 department has expertise with the fund or funds. The department24 of local government finance may refer a school corporation to the25 Indiana department of education or the state board of accounts for26 additional guidance.27 (b) The department of local government finance shall prepare28 a report documenting identified issues in making the conversion29 required by this act and whether legislation is needed to address30 these issues. The department of local government finance shall31 submit the report before November 1, 2017, to the members of the32 budget committee established by IC 4-12-1-3 and to the legislative33 services agency in an electronic format under IC 5-14-6.34 (c) This SECTION expires June 30, 2018.35 SECTION 138. [EFFECTIVE JULY 1, 2017] (a) IC 6-1.1-20.6-9.9,36 as amended by this act, applies only to the allocation of credits37 against property taxes first due and payable in 2018 and 2019.38 (b) This SECTION expires June 30, 2020.39 SECTION 139. [EFFECTIVE UPON PASSAGE] (a) The general40 assembly recognizes that this act amends IC 20-40-8-19 and that41 this act repeals IC 20-40-8. The general assembly intends to repeal42 IC 20-40-8 effective July 1, 2018.

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1 (b) This SECTION expires December 31, 2018.2 SECTION 140. An emergency is declared for this act.

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COMMITTEE REPORT

Mr. Speaker: Your Committee on Education, to which was referredHouse Bill 1009, has had the same under consideration and begs leaveto report the same back to the House with the recommendation that saidbill be amended as follows:

Page 5, delete lines 1 through 12, begin a new paragraph and insert:"SECTION 2. IC 5-10.1-6-1 IS AMENDED TO READ AS

FOLLOWS [EFFECTIVE JULY 1, 2018]: Sec. 1. (a) The state shallpay the employer contributions for state employees.

(b) After June 30, 1987, 2018, a school corporation may transferfrom its general fund, without an appropriation, to its employment taxfund an amount necessary to make the employer contributions.Notwithstanding IC 36-1-8-4, a school corporation is not required toreimburse its general fund due to any transfers under this subsection.only pay the employer contributions, without an appropriation,from the school corporation's education fund.

(c) If state employees receive compensation from federal funds,contributions shall be made from the federal funds equal to thematching contribution which would be due on the compensation.".

Page 12, between lines 41 and 42, begin a new paragraph and insert:"SECTION 9. IC 6-1.1-20.6-9.9, AS AMENDED BY P.L.151-2016,

SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVEJULY 1, 2017]: Sec. 9.9. (a) If:

(1) a school corporation in 2017, or 2018, or 2019 issues newbonds or enters into a new lease rental agreement for which theschool corporation is imposing or will impose a debt service levyother than:

(A) to refinance or renew prior bond or lease rental obligationsexisting before January 1, 2017; or(B) indebtedness that is approved in a local public question orreferendum under IC 6-1.1-20 or any other law; and

(2) the school corporation's:(A) total debt service levy in 2017 or 2018 or 2019 is greaterthan the school corporation's total debt service levy in 2016;and(B) total debt service tax rate in 2018 or 2019 is greaterthan the school corporation's total debt service tax rate in2016;

the school corporation is not eligible to allocate credits proportionatelyunder this section.

(b) Subject to subsection (a), a school corporation is eligible to

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allocate credits proportionately under this section for 2016, 2017, or2018, or 2019 if the school corporation's percentage computed underthis subsection is at least ten percent (10%) for its transportation fundlevy for that year (for 2017 and 2018) or operations fund levy after2018, as certified by the department of local government finance. Aschool corporation shall compute its percentage under this subsectionas follows:

(1) Compute the amount of credits granted under this chapteragainst the school corporation's levy for the school corporation'stransportation fund (for 2017 and 2018) or operations fundafter 2018.(2) Compute the school corporation's levy for the schoolcorporation's transportation fund (for 2017 and 2018) oroperations fund levy after 2018.(3) Divide the amount computed under subdivision (1) by theamount computed under subdivision (2) and express it as apercentage.

The computation must be made by taking into account the requirementsof section 9.8 of this chapter regarding protected taxes and the impactof credits granted under this chapter on the revenue to be distributed tothe school corporation's transportation fund (for 2017 and 2018) oroperations fund after 2018 for the particular year.

(c) A school corporation that desires to be an eligible schoolcorporation under this section must, before May 1 of the year for whichit wants a determination, submit a written request for a certification bythe department of local government finance that the computation of theschool corporation's percentage under subsection (b) is correct. Thedepartment of local government finance shall, not later than June 1 ofthat year, determine whether the percentage computed by the schoolcorporation is accurate and certify whether the school corporation iseligible under this section.

(d) For a school corporation that is certified as eligible under thissection, the school corporation may allocate the effect of the creditsgranted under this chapter proportionately among all the schoolcorporation's property tax funds that are not exempt under section7.5(b) or 7.5(c) of this chapter, based on the levy for each fund andwithout taking into account the requirements of section 9.8 of thischapter regarding protected taxes.".

Page 59, between lines 32 and 33, begin a new paragraph and insert:"SECTION 60. IC 20-29-8-7, AS AMENDED BY P.L.219-2015,

SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVEJULY 1, 2018]: Sec. 7. (a) When a factfinder is requested or required

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under IC 20-29-6, the board shall appoint a factfinder from the staff orpanel established under section 6 of this chapter.

(b) The factfinder shall make an investigation and hold hearings asthe factfinder considers necessary in connection with a dispute.

(c) The factfinder:(1) may restrict the factfinder's findings to those issues that thefactfinder determines significant;(2) must restrict the findings to the items listed in IC 20-29-6-4;and(3) may not impose terms beyond those proposed by the parties intheir last, best offers.

(d) The factfinder may use evidence furnished to the factfinder by:(1) the parties;(2) the board;(3) the board's staff; or(4) any other state agency.

(e) The factfinder shall conduct the factfinding hearing in public ina room or facility owned by the county or local unit of governmentlocated in the county in which the school employer is located, or if theschool employer is located in more than one (1) county, in the countyin which the greatest number of students who attend the schoolemployer's schools reside. The public hearing may begin not earlierthan October 1 in the first year of the state budget biennium and mustbe concluded by December 31 of the same year.

(f) The factfinding process may not exceed thirty (30) days frombeginning to end, and not more than two (2) of those days may be usedfor public testimony, which may be taken at the discretion of thefactfinder. During the public hearing, each party shall present fully itslast, best offer, including the fiscal rationale for the offer. Only generaloperating funds and those funds certified by the department ofeducation and the department of local government finance may beconsidered as a source of the funding for items, unless the schoolfunding formula allows other funds to be used for certain items. Onlyeducation fund revenue may be considered a source of the fundingfor items. The education fund revenue does not include moneyestimated to be or actually transferred from the schoolcorporation's operating fund to its education fund or local incometax revenue deposited in the education fund.

(g) The factfinder shall make a recommendation as to the settlementof the disputes over which the factfinder has jurisdiction.

(h) The factfinder shall:(1) make the investigation, hearing, and findings as expeditiously

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as the circumstances permit; and(2) deliver the findings to the parties and to the board.

(i) The board, after receiving the findings and recommendations,may make additional findings and recommendations to the partiesbased on information in:

(1) the report; or(2) the board's own possession.

The board may not make any recommendations to the parties related toany items not specifically identified in IC 20-29-6-4.

(j) At any time within five (5) days after the findings andrecommendations are delivered to the board, the board may make thefindings and recommendations of the factfinder and the board'sadditional findings and recommendations, if any, available to thepublic through news media and other means the board considerseffective.

(k) The board shall make the findings and recommendationsdescribed in subsection (j) available to the public not later than ten (10)days after the findings and recommendations are delivered to theboard.".

Page 62, delete lines 35 through 41, begin a new paragraph andinsert:

"SECTION 71. IC 20-40-2-5, AS ADDED BY P.L.2-2006,SECTION 163, IS AMENDED TO READ AS FOLLOWS[EFFECTIVE JULY 1, 2018]: Sec. 5. Remuneration for athleticcoaches, whether or not the athletic coaches are:

(1) otherwise employed by the school corporation; and(2) licensed under IC 20-28-4 or IC 20-28-5;

may must be budgeted in the education fund and must be paid fromthe operations fund under IC 20-40-18.".

Page 63, between lines 14 and 15, begin a new paragraph and insert:"(c) The department must post the report submitted under

subsection (a) on the department's Internet web site.".Page 63, between lines 36 and 37, begin a new paragraph and insert:"SECTION 76. IC 20-40-3-5, AS ADDED BY P.L.2-2006,

SECTION 163, IS AMENDED TO READ AS FOLLOWS[EFFECTIVE JULY 1, 2018]: Sec. 5. Money in the fund may be usedfor any lawful school expenses, including making a transfer to theschool corporation's education fund (IC 20-40-2) or operationsfund (IC 20-40-18).".

Page 63, after line 42, begin a new paragraph and insert:"SECTION 79. IC 20-40-8-19, AS AMENDED BY P.L.151-2016,

SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE

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JULY 1, 2017]: Sec. 19. Money in the fund may be used before January1, 2018, to pay for up to one hundred percent (100%) of the followingcosts of a school corporation:

(1) Utility services.(2) Property or casualty insurance.(3) Both utility services and property or casualty insurance.

A school corporation's expenditures under this section may not in acalendar year exceed three and five-tenths percent (3.5%) of the schoolcorporation's 2005 calendar year distribution.".

Page 65, line 41, after "(IC 20-40-2)" insert "or the operatingreferendum tax levy fund (IC 20-40-3)".

Page 66, between lines 19 and 20, begin a new line block indentedand insert:

"(4) Pay expenses that are allocated to overhead andoperational expenditures or to nonoperational expendituresunder IC 20-42.5.".

Page 66, line 20, delete "(4)" and insert "(5)".Page 66, line 22, delete "(5)" and insert "(6)".Page 73, between lines 9 and 10, begin a new paragraph and insert:"(c) The department must post the report submitted under

subsection (a) on the department's Internet web site.".Page 95, between lines 38 and 39, begin a new paragraph and insert:"SECTION 130. [EFFECTIVE JULY 1, 2017] (a)

IC 6-1.1-20.6-9.9, as amended by this act, applies only to theallocation of credits against property taxes first due and payablein 2018 and 2019.

(b) This SECTION expires June 30, 2020.SECTION 131. [EFFECTIVE UPON PASSAGE] (a) The general

assembly recognizes that this act amends IC 20-40-8-19 and thatthis act repeals IC 20-40-8. The general assembly intends to repealIC 20-40-8 effective July 1, 2018.

(b) This SECTION expires December 31, 2018.".Renumber all SECTIONS consecutively.

and when so amended that said bill do pass.

(Reference is to HB 1009 as introduced.)

BEHNING

Committee Vote: yeas 12, nays 0.

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COMMITTEE REPORT

Mr. Speaker: Your Committee on Ways and Means, to which wasreferred House Bill 1009, has had the same under consideration andbegs leave to report the same back to the House with therecommendation that said bill be amended as follows:

Page 5, between lines 13 and 14, begin a new paragraph and insert:"SECTION 3. IC 5-11-10.5-5 IS AMENDED TO READ AS

FOLLOWS [EFFECTIVE JULY 1, 2018]: Sec. 5. (a) Upon thepreparation and transmission of the copies of the list of the outstandingwarrants or checks, the treasurer of the political subdivision shall enterthe amounts so listed as a receipt into the fund or funds from whichthey were originally drawn and shall also remove the warrants orchecks from the record of outstanding warrants or checks.

(b) If the disbursing officer does not serve also as treasurer of thepolitical subdivision, the disbursing officer shall also enter the amountsso listed as a receipt into the fund or funds from which the warrants orchecks were originally drawn. If the fund from which the warrant orcheck was originally drawn is not in existence, or cannot beascertained, the amount of the outstanding warrant or check shall bereceipted into the general fund of the political subdivision. However,in the case of a school corporation, the warrant or check shall bereceipted into the operations fund.".

Page 6, between lines 15 and 16, begin a new paragraph and insert:"SECTION 5. IC 5-14-3.8-8, AS ADDED BY P.L.84-2014,

SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVEJULY 1, 2018]: Sec. 8. (a) The department shall develop indicators offiscal health for evaluating the fiscal health of a political subdivision.The department may consider including any of the following in theindicators developed under this subsection:

(1) The cash balance of a political subdivision.(2) The debt to revenue ratio of a political subdivision.(3) The condition of a political subdivision's property tax base andincome tax base, if any, as measured by both the assessed valueof the political subdivision and the amount of per capita revenuegenerated from the political subdivision's tax bases.(4) The per capita amount of a political subdivision's general fundoperating revenue or in the case of a school corporation, theschool corporation's education fund and operations fundrevenue.(5) Any trends in the amount of a political subdivision's taxrevenue.

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(6) Whether a political subdivision maintains a structural deficitor a structural surplus.(7) The number and size of the tax increment financing districtsdesignated by a redevelopment commission established by thepolitical subdivision, if any.(8) The extent that the political subdivision is affected by taxincrement financing districts.(9) The extent that the political subdivision's property tax base isaffected by exempt properties.(10) The political subdivision's bond rating.(11) The amount of retiree benefits paid by the politicalsubdivision.(12) The amount of pension contributions paid on behalf of thepolitical subdivision's employees.(13) Any other factor that the department considers relevant toevaluating the fiscal health of a political subdivision.

(b) The department shall use the indicators developed undersubsection (a) and the associated fiscal data to present the informationfor evaluating the fiscal health of a political subdivision on the Indianatransparency Internet web site. The information must be presented ina manner that:

(1) can be conveniently and easily accessed from a single webpage; and(2) is commonly known as an Internet dashboard.

The information must be available on the Indiana transparency Internetweb site in the format required by this subsection before July 1, 2015.

(c) Neither the department of local government finance nor anyother state agency may use the fiscal health indicators developed underthis section to assign a political subdivision a summative grade.".

Page 19, between lines 12 and 13, begin a new paragraph and insert:"SECTION 18. IC 6-3.6-9-17, AS AMENDED BY THE

TECHNICAL CORRECTIONS BILL OF THE 2017 GENERALASSEMBLY, IS AMENDED TO READ AS FOLLOWS [EFFECTIVEJULY 1, 2018]: Sec. 17. (a) As used in this section, "fiscal body" hasthe meaning set forth in IC 36-1-2-6.

(b) This section refers to a county's trust account maintained underthe former local income tax laws set forth in IC 6-3.5-1.1, IC 6-3.5-6,and IC 6-3.5-7 (all as repealed January 1, 2017).

(c) Before May 1, 2016, the budget agency shall make a one (1)time special distribution to each county having a positive balance in thecounty's trust account as of December 31, 2014.

(d) The amount of the special distribution from a county's trust

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account is one hundred percent (100%) of the balance in the county'strust account as of December 31, 2014, as determined by the budgetagency.

(e) Before May 1, 2016, the budget agency and the department oflocal government finance shall do the following:

(1) For any county having a positive balance in the county's trustaccount as of December 31, 2014, determine the amount of thetrust account balance as of December 31, 2014 (referred to as thecounty's trust balance amount).(2) Determine each taxing unit's share of the county's trustbalance amount (referred to as the taxing unit's allocationamount), using the following allocation method for each formertax:

(A) For county adjusted gross income taxes (IC 6-3.5-1.1)(repealed) as follows:

(i) First, the taxing units that would have received propertytax replacement credits shall be allocated that part of thecounty's allocation amount that would have been consideredproperty tax replacements under IC 6-3.5-1.1 (repealed).(ii) The remaining amount of the county's allocation amountshall be allocated in the same manner as certified sharesunder IC 6-3.5-1.1 (repealed).

(B) For county option income taxes (IC 6-3.5-6) (repealed),the county's allocation amount shall be allocated in the samemanner as certified shares under IC 6-3.5-6 (repealed).(C) For county economic development income taxes, thecounty's allocation amount shall be allocated in the samemanner as a certified distribution under IC 6-3.5-7-12(b)(repealed) or IC 6-3.5-7-12(c) (repealed), whichever applies.

(f) Before May 1, 2016, the budget agency and the department oflocal government finance shall jointly determine and provide to thecounty auditor the following:

(1) The county's trust balance amount.(2) Each taxing unit's allocation amount.

(g) Before June 1, 2016, the county auditor shall distribute to eachtaxing unit an amount equal to the taxing unit's allocation amount.

(h) Money distributed to a county, city, or town may be expendedonly upon an appropriation by the county's, city's, or town's fiscal bodyas follows:

(1) At least seventy-five percent (75%) of the special distributionmust be:

(A) used exclusively by the county, city, or town for:

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(i) engineering, land acquisition, construction, resurfacing,maintenance, restoration, or rehabilitation of both local andarterial road and street systems;(ii) the payment of principal and interest on bonds soldprimarily to finance road, street, or thoroughfare projects;(iii) any local costs required to undertake a recreational orreservoir road project under IC 8-23-5;(iv) the purchase, rental, or repair of highway equipment;(v) providing a match for a grant from the local road andbridge matching grant fund under IC 8-23-30; or(vi) capital projects for aviation related property or facilities,including capital projects of a board of aviationcommissioners established under IC 8-22-2 or an airportauthority established under IC 8-22-3-1; or

(B) deposited in the county's, city's, or town's rainy day fundestablished under IC 36-1-8-5.1. The money deposited in arainy day fund under this clause may not be appropriated fromthe rainy day fund or transferred to another fund underIC 36-1-8-5.1(g), unless the money will be used exclusivelyfor purposes set forth in clause (A).

(2) The remaining part of the special distribution may be used bythe county, city, or town for any of the purposes of the county,city, or town.

The amount received by a taxing unit that is not a county, city, or townshall be deposited in the taxing unit's rainy day fund established underIC 36-1-8-5.1. However, in the case of a school corporation, theschool corporation may deposit the amount received in any of itsfunds.".

Page 59, line 24, after "revenue" delete "." and insert "and, for aschool employer for which the voters have passed an operating taxlevy referendum under IC 20-46-1, the amount of revenue certifiedby the department of local government finance.".

Page 60, line 14, strike "that has" and insert "for which the votershave".

Page 60, line 15, after "operating" insert "tax levy".Page 60, line 36, after "to" insert ":

(1)".Page 60, line 37, after "revenue" insert "or, for an employer for

which the voters have passed an operating tax levy referendumunder IC 20-46-1, a reduction in the amount of revenue from thetax levy;".

Page 60, line 37, delete "or" and insert "or

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(2)".Page 60, line 40, beginning with "Revenue" begin a new line

blocked left.Page 62, line 3, after "revenue" insert "and, for a school employer

for which the voters have passed an operating tax levy referendumunder IC 20-46-1, the amount of revenue certified by thedepartment of local government finance,".

Page 62, line 4, delete "The education" and insert "Education".Page 67, delete lines 41 through 42.Page 68, delete lines 1 through 11, begin a new paragraph and

insert:"SECTION 84. IC 20-40-9-7, AS AMENDED BY P.L.286-2013,

SECTION 118, IS AMENDED TO READ AS FOLLOWS[EFFECTIVE JULY 1, 2018]: Sec. 7. (a) Money in the fund may beused for payment of all unreimbursed costs of curricular materials forthe school corporation's students who were eligible for free or reducedlunches in the previous school year.

(b) Money in the fund may not be used for payment of debtservice, lease payments, or similar obligations for a controlledproject that is approved by the voters in a referendum underIC 6-1.1-20.

(b) (c) The governing body may transfer the amount levied to coverunreimbursed costs of curricular materials under this section to thecurricular materials rental fund or extracurricular account. educationfund.".

Page 70, line 22, delete "resolution:" and insert "resolution asfollows:".

Page 70, delete lines 23 through 24, begin a new line block indentedand insert:

(1) For a school corporation that has not elected to adopt abudget under IC 6-1.1-17-5.6 or for which a resolutionadopted under IC 6-1.1-17-5.6(d) is in effect, the schoolcorporation must hold the hearing and adopt the resolutionafter January 1 and not later than November 1 of theimmediately preceding year.(2) For a school corporation that elects to adopt a budgetunder IC 6-1.1-17-5.6, the school corporation must hold thehearing and adopt the resolution after January 1 and not laterthan April 1 of the immediately preceding school fiscal year.".

Page 70, line 25, delete "of the immediately preceding year.".Page 75, line 10, delete "resolution:" and insert "resolution as

follows:".

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Page 75, delete lines 11 through 12, begin a new line block indentedand insert:

"(1) For a school corporation that has not elected to adopt abudget under IC 6-1.1-17-5.6 or for which a resolutionadopted under IC 6-1.1-17-5.6(d) is in effect, the schoolcorporation must hold the hearing and adopt the resolutionafter January 1 and not later than November 1 of theimmediately preceding year.(2) For a school corporation that elects to adopt a budgetunder IC 6-1.1-17-5.6, the school corporation must hold thehearing and adopt the resolution after January 1 and not laterthan April 1 of the immediately preceding school fiscal year.".

Page 75, line 13, delete "of the immediately preceding year.".Page 95, between lines 6 and 7, begin a new paragraph and insert:"SECTION 130. IC 36-1-8-5, AS AMENDED BY P.L.233-2015,

SECTION 328, IS AMENDED TO READ AS FOLLOWS[EFFECTIVE JULY 1, 2018]: Sec. 5. (a) This section applies to allfunds raised by a general or special tax levy on all the taxable propertyof a political subdivision.

(b) Whenever the purposes of a tax levy have been fulfilled and anunused and unencumbered balance remains in the fund, the fiscal bodyof the political subdivision shall order the balance of that fund to betransferred as follows, unless a statute provides that it be transferredotherwise:

(1) Funds of a county, to the general fund or rainy day fund of thecounty, as provided in section 5.1 of this chapter.(2) Funds of a municipality, to the general fund or rainy day fundof the municipality, as provided in section 5.1 of this chapter.(3) Funds of a township for redemption of township assistanceobligations, to the township assistance fund of the township orrainy day fund of the township, as provided in section 5.1 of thischapter.(4) Funds of any other political subdivision, to the general fund orrainy day fund of the political subdivision, as provided in section5.1 of this chapter. However, if the political subdivision isdissolved or does not have a general fund or rainy day fund andis not a school corporation, then to the general fund of each ofthe units located in the political subdivision in the sameproportion that the assessed valuation of the unit bears to the totalassessed valuation of the political subdivision. In the case of aschool corporation, the school corporation may transfer theamount received to any of its funds.

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(c) Whenever an unused and unencumbered balance remains in thecivil township fund of a township and a current tax levy for the fund isnot needed, the township fiscal body may order any part of the balanceof that fund transferred to the debt service fund of the schoolcorporation located in or partly in the township. However, if more thanone (1) school corporation is located in or partly in the township, thenany sum transferred shall be transferred to the debt service fund of eachof those school corporations in the same proportion that the part of theassessed valuation of the school corporation in the township bears tothe total assessed valuation of the township.

(d) Whenever any township has collected any fund for the specialor specific purpose of erecting or constructing a school building andthe township trustee of the township decides to abandon the proposedwork of erecting or constructing the school building, the townshiptrustee of the township shall transfer the fund collected for the specialor specific purpose to the township fund of the township, upon theorder of the township board to make the transfer. It is lawful thereafterto use the funds for any purpose for which the township funds of thetownship may be used.

(e) Transfers to a political subdivision's rainy day fund may be madeat any time during the political subdivision's fiscal year.".

Page 99, line 6, delete "provide" and insert "make available to".Page 99, line 7, delete "with the".Page 99, line 10, after "act." insert "The department of local

government finance shall make its guidance available to the extentthe department has expertise with the fund or funds. Thedepartment of local government finance may refer a schoolcorporation to the Indiana department of education or the stateboard of accounts for additional guidance.".

Page 99, delete lines 12 through 13 and insert "a reportdocumenting identified issues in making the conversion requiredby this act".

Renumber all SECTIONS consecutively.

and when so amended that said bill do pass.

(Reference is to HB 1009 as printed January 31, 2017.)

BROWN T

Committee Vote: yeas 20, nays 1.

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