CHAPTER 4. ADVANCEMENT FROM COMMON SCHOOL FUND; BUILDINGS; TECHNOLOGY PROGRAMS
IC 20-49-4
Chapter 4. Advancement From Common School Fund; Buildings;
Technology Programs
IC 20-49-4-1
Application; reorganized schools
Sec. 1. This chapter applies to school corporations organized and
formed through reorganization under IC 20-23-4, IC 20-23-6, or
IC 20-23-7 and school townships under IC 20-23-3.
As added by P.L.2-2006, SEC.172.
IC 20-49-4-2
Exemption for procedures; loss from disaster
Sec. 2. Sections 9, 12, and 13 of this chapter do not apply if a
school corporation sustains loss from a disaster.
As added by P.L.2-2006, SEC.172.
IC 20-49-4-3
"Advance"
Sec. 3. As used in this chapter, "advance" means an advance
under this chapter from the fund.
As added by P.L.2-2006, SEC.172.
IC 20-49-4-4
"Disaster"
Sec. 4. As used in this chapter, "disaster" refers to loss by:
(1) fire;
(2) wind;
(3) cyclone; or
(4) other disaster;
of all or a major part of a school building or school buildings.
As added by P.L.2-2006, SEC.172.
IC 20-49-4-5
"Educational technology program"
Sec. 5. As used in this chapter, "educational technology program"
means the:
(1) purchase, lease, or financing of educational technology
equipment;
(2) operation of the educational technology equipment; and
(3) training of teachers in the use of the educational technology
equipment.
As added by P.L.2-2006, SEC.172.
IC 20-49-4-6
"Fund"
Sec. 6. As used in this chapter, "fund" refers to the common
school fund in the custody of the treasurer of state.
As added by P.L.2-2006, SEC.172.
IC 20-49-4-7
"School building construction program"
Sec. 7. As used in this chapter, "school building construction
program" means the purchase, lease, or financing of land, the
construction and equipping of school buildings, and the remodeling,
repairing, or improving of school buildings by a school corporation:
(1) that sustained a loss from a disaster;
(2) whose adjusted assessed valuation (as determined under
IC 6-1.1-34-8) per ADM is within the lowest forty percent
(40%) of the assessed valuation per ADM when compared with
all school corporation adjusted assessed valuation (as adjusted
(if applicable) under IC 6-1.1-34-8) per ADM; or
(3) with an advance under this chapter outstanding on July 1,
1993, that bears interest of at least seven and one-half percent
(7.5%).
The term does not include facilities used or to be used primarily for
interscholastic or extracurricular activities.
As added by P.L.2-2006, SEC.172. Amended by P.L.113-2010,
SEC.99.
IC 20-49-4-8
Power; state board; advance; eligibility
Sec. 8. The state board may advance money to school
corporations to be used for:
(1) school building construction programs; and
(2) educational technology programs;
as provided in this chapter.
As added by P.L.2-2006, SEC.172.
IC 20-49-4-9
Priority of advances; school building contruction programs
Sec. 9. Priority of advances for school building construction
programs shall be made to school corporations that have the least
amount of adjusted assessed valuation (as determined under
IC 6-1.1-34-8) per student in ADM.
As added by P.L.2-2006, SEC.172.
IC 20-49-4-10
Priority of advances; educational technology programs
Sec. 10. Priority of advances for educational technology programs
shall be on whatever basis the state board, after consulting with the
department and the budget agency, periodically determines.
As added by P.L.2-2006, SEC.172.
IC 20-49-4-11
Application
Sec. 11. A school corporation desiring to obtain an advance must
submit an application to the state board in the form established by the
state board, after consulting with the department and the budget
agency.
As added by P.L.2-2006, SEC.172.
IC 20-49-4-12
Condition of advance; capital projects fund
Sec. 12. To qualify for an advance under this chapter, a school
corporation must establish a capital projects fund under IC 20-40-8.
The state board, after consulting with the department and the budget
agency, may waive or modify this requirement upon a showing of
good cause by the school corporation.
As added by P.L.2-2006, SEC.172.
IC 20-49-4-13
Maximum advance; school building construction program
Sec. 13. An advance to a school corporation for any school
building construction program may not exceed the greater of the
following:
(1) Fifteen million dollars ($15,000,000).
(2) The product of fifteen thousand dollars ($15,000) multiplied
by the number of students accommodated as a result of the
school building construction program.
However, if a school corporation has sustained loss by disaster, this
limitation may be waived by the state board after consulting with the
department and the budget agency.
As added by P.L.2-2006, SEC.172.
IC 20-49-4-14
Maximum advance; educational technology programs
Sec. 14. An advance for an educational technology program is
without limitation in amount other than the availability of funds in
the fund for this purpose and the ability of the school corporation
desiring an advance to pay the advance according to the terms of the
advance.
As added by P.L.2-2006, SEC.172.
IC 20-49-4-15
Maximum term of advance; school building construction program;
prepayment; interest rate
Sec. 15. (a) Money advanced to a school corporation for a school
building construction program may be advanced for a period not
exceeding twenty-five (25) years. The school corporation to which
money is advanced must pay interest on the advance. For advances
made before July 1, 1993, the state board may provide, either before
an advance is made or before an advance is fully paid, that the
payment of the advance may not be prepaid by more than six (6)
months. For advances made after June 30, 1993, for school building
construction programs, the state board may provide that the advances
are prepayable at any time.
(b) The state board of finance shall periodically establish the rate
or rates of interest payable on advances for school building
construction programs as long as:
(1) the established interest rate or rates do not exceed seven and
one-half percent (7.5%); and
(2) the interest rate or rates on advances made to school
corporations with advances outstanding on July 1, 1993, bearing
interest at seven and one-half percent (7.5%) or more shall not
exceed four percent (4%).
As added by P.L.2-2006, SEC.172.
IC 20-49-4-16
Maximum term of advance; educational technology program;
prepayment; interest rate
Sec. 16. (a) Money advanced to a school corporation for an
educational technology program may be for a period not exceeding
five (5) years. The school corporation to which an advance is made
shall pay interest on the advance. Advances for educational
technology programs may be prepaid at any time.
(b) The state board of finance shall periodically establish the rate
or rates of interest payable on advances for educational technology
programs as long as the established interest rate or rates:
(1) are not less than one percent (1%); and
(2) do not exceed four percent (4%).
As added by P.L.2-2006, SEC.172.
IC 20-49-4-17
Statutory construction; advance not treated as debt of school
corporation
Sec. 17. An advance is not an obligation of the school corporation
within the meaning of the limitation on or prohibition against
indebtedness under the Constitution of the State of Indiana. Nothing
in this chapter relieves the governing body of a school corporation
receiving an advance of any obligation under Indiana law to qualify
the school corporation for state tuition support. The school
corporation shall continue to perform all acts necessary to obtain
these funds.
As added by P.L.2-2006, SEC.172.
IC 20-49-4-18
Repayment of advance; terms; state tuition support
Sec. 18. To ensure timely payment of advances according to the
terms, the state may in its sole discretion withhold from funds due to
school corporations to which advances are made amounts necessary
to pay the advances and the interest on the advances in accordance
with their respective terms. The terms of the advances shall be
established by the state board after consulting with the department
and upon the approval of the budget agency in advance of the time
the respective advances are made. However, in the case of school
corporations with advances outstanding on July 1, 1993, the
withholding may be adjusted to conform with this chapter. To the
extent available, funds shall first be withheld from the distribution of
state tuition support. However, if this distribution is not available or
is inadequate, funds may be withheld from the distribution of other
state funds to the school corporation to which the advance is made.
As added by P.L.2-2006, SEC.172.
IC 20-49-4-19
Terms of agreement; right to offset advance against state tuition
support
Sec. 19. A school corporation receiving an advance shall agree to
have the money advanced, together with the interest on the advance,
deducted from the distribution of state tuition support until all the
money advanced, together with the interest on the advance, has been
paid. The state board and the state board of finance shall reduce each
distribution of state tuition support to each school corporation to
which an advance is made in an amount to be agreed upon by the
state and the school corporation.
As added by P.L.2-2006, SEC.172.
IC 20-49-4-20
Statutory construction; advance not treated as debt of state
Sec. 20. An agreement with the state board or state board of
finance under section 23 of this chapter to collect and pay over
amounts deducted from state tuition support for the benefit of
another party is not a debt of the state within the meaning of the
limitation on or prohibition against state indebtedness under the
Constitution of the State of Indiana.
As added by P.L.2-2006, SEC.172.
IC 20-49-4-21
Power; levy; school building construction program; replacement
of amount deducted from state tuition support
Sec. 21. A school corporation to which an advance is made for a
school building construction program may annually levy a property
tax in the debt service fund to replace the amount deducted under this
chapter in the current year from the distribution of state tuition
support. The amount received from the tax must be transferred from
the debt service fund to the general fund.
As added by P.L.2-2006, SEC.172.
IC 20-49-4-22
Power; levy; educational technology program; replacement of
amount deducted from state tuition support
Sec. 22. A school corporation to which an advance is made for an
educational technology program may annually levy a property tax in
the capital projects fund or the debt service fund to replace the
amount deducted under this chapter in the current year from the
distribution of state tuition support. The amount received from the
tax must be transferred from the capital projects fund or the debt
service fund, as applicable, to the general fund.
As added by P.L.2-2006, SEC.172.
IC 20-49-4-23
Power; state board; sell, transfer, or liquidate agreements;
conditions
Sec. 23. (a) Upon request of the state board, acting upon the
advice of the department, the state board of finance may periodically
sell, transfer, or liquidate agreements, in whole or in part, including
without limitation the sale, transfer, or liquidation of all or any part
of the principal or interest to be received at any time under one (1)
or more agreements that evidence the right of the state to make
deductions from state tuition support to pay advances under this
chapter under the terms and conditions that the state board of finance
considers necessary and appropriate.
(b) Each sale, transfer, or liquidation under this section is subject
to the following conditions:
(1) Each sale, transfer, or liquidation may be made only to a
department, an agency, a commission, an instrumentality, or a
public body of the state, including the Indiana bond bank.
(2) Each sale, transfer, or liquidation of agreements may be
made only for cash.
(3) Payments under the sale, transfer, or liquidation must be
made to the treasurer of state for the fund and reported to the
state board of finance.
(4) The total amount of cash received by the fund from the sale
may not be less than the outstanding principal amount of all or
a part of the agreements sold plus accrued interest owed.
(5) If necessary to facilitate a sale, transfer, or liquidation, the
state board or the state board of finance may agree to act on
behalf of an entity described in subdivision (1) by collecting
payment on advances that are:
(A) received directly from a school corporation, if any direct
payments are received; or
(B) deducted from amounts appropriated and made available
for state tuition support.
An agreement by the state board or the state board of finance
under this subdivision is a valid and enforceable contractual
obligation but is not a debt of the state within the meaning of
the limitation against indebtedness under the Constitution of the
State of Indiana.
(6) Each proposed sale, transfer, or liquidation must be
reviewed by the budget committee and approved by the budget
agency.
As added by P.L.2-2006, SEC.172.