Bill Text: IN HB1089 | 2011 | Regular Session | Introduced
Bill Title: Referenda on hospital bonds and leases.
Spectrum: Partisan Bill (Republican 3-0)
Status: (Introduced - Dead) 2011-01-25 - Representatives Knollman and Ubelhor added as coauthors [HB1089 Detail]
Download: Indiana-2011-HB1089-Introduced.html
Citations Affected: IC 6-1.1-20-3.9.
Synopsis: Referenda on hospital bonds and leases. Requires a
referendum on a capital project of a local hospital authority or
corporation in Dearborn County, Harrison County, Orange County,
Switzerland County, or Ohio County if: (1) money from a riverboat is
reasonably expected to be used to pay the cost of the project; (2)
property taxes are pledged to pay debt or lease payments if other funds
are insufficient to pay the obligations; and (3) the referendum is
requested by at least 100 property owners or 5% of the registered voters
residing within the political subdivision.
Effective: Upon passage.
January 5, 2011, read first time and referred to Committee on Ways and Means.
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(1) that is not a controlled project;
(2) that is a project of a local hospital authority or corporation that is located in any part in Dearborn County, Harrison County, Orange County, Switzerland County, or Ohio County, which the general assembly finds to be counties in which riverboats (as defined in IC 4-33-2-17) are located but each of which has less than one percent (1%) of the population and net assessed value of tangible property in Indiana;
(3) for which the local hospital authority or corporation adopts a resolution or ordinance authorizing:
(A) the issuance of bonds, notes, or warrants; or
(B) the execution of a lease;
after May 8, 2011;
(4) that will cost the local hospital authority or corporation more than the lesser of:
(A) two million dollars ($2,000,000); or
(B) an amount equal to one percent (1%) of the total gross assessed value of property within the political subdivision on the last assessment date, if that amount is at least one million dollars ($1,000,000);
(5) for which the local hospital authority or corporation reasonably expects to pay debt service or lease rentals in any part from funds directly or indirectly derived from a tax or fee imposed under IC 4-33, a development agreement (as defined in IC 36-1-8-9.5), or another agreement with a licensed owner (as defined in IC 4-33-2-13) or a riverboat (as defined in IC 4-33-2-17), including funds received from a community foundation; and
(6) for which the local hospital authority or corporation or another political subdivision pledges to levy property taxes to pay the debt service or lease rentals if other funds are insufficient to meet the obligations for the project.
(b) Notwithstanding sections 1, 1.1, and 1.3 of this chapter, for purposes of this section:
(1) "bonds" includes bonds payable from a source other than property taxes;
(2) a reference in this chapter to "controlled project" includes a project described in subsection (a);
(3) "lease" includes leases payable from a source other than property taxes; and
(4) "local hospital authority or corporation" refers to a municipal corporation (as defined in IC 36-1-2-10) established under IC 5-1-4, IC 16-22, or IC 16-23 or otherwise supported in any part by property taxes.
(c) A local hospital authority or corporation may not authorize the use of funds or pledge property taxes to pay or guarantee the payment of debt service on bonds or lease rentals on a lease for a project described in subsection (a) without completing the procedures described in section 3.5 of this chapter. Section 3.5 of this chapter applies to a capital project described in this section, except as follows:
(1) In addition to the information that section 3.5 of this chapter requires a political subdivision to make available to the public at the public hearing on the preliminary
determination, a local hospital authority or corporation shall
disclose the amount of current and projected annual revenue
that the local hospital authority or corporation expects to
receive from each source that the local hospital authority or
corporation reasonably expects to use to pay debt service or
lease payments for the capital project.
(2) In addition to the information that section 3.5 of this
chapter requires a political subdivision to include in a notice
of the preliminary determination, a local hospital authority or
corporation shall include information describing:
(A) each source of revenue and the amount from each
source of revenue that the local hospital authority or
corporation reasonably expects to use to pay debt service
or lease payments for the capital project;
(B) whether and in which years, over the proposed term of
the bonds or lease, there is a reasonable possibility that
receipts from the sources described in clause (A) may be
less than one and twenty-five hundredths (1.25) times the
amount needed to cover the proposed obligations of the
local hospital authority or corporation for that year; and
(C) if a deficiency is identified under clause (B), the
amount of the potential deficiency in each year.
(3) In addition to the information that section 3.5 of this
chapter requires in a petition requesting the application of the
local public question process, each petition must indicate that
the local hospital authority or corporation proposes to pledge
to levy property taxes to pay debt service or lease rentals for
the capital project if those other funds are insufficient.
(4) In addition to the information that section 3.5 of this
chapter requires a political subdivision to post at least thirty
(30) days before the election on the department of local
government finance's Internet web site, the information
described in subdivision (2) must be posted on the department
of local government finance's Internet web site.
(d) If a sufficient petition requesting the application of the local
public question process has been filed as set forth in section 3.5 of
this chapter (as modified by this section), a local hospital authority
or corporation may not authorize the use of funds or pledge
property taxes to pay debt service on bonds or lease rentals on a
lease for the capital project described in a notice of preliminary
determination unless the local hospital authority or corporation's
proposed debt service or lease rental is approved in an election on
a local public question held under section 3.6 of this chapter.
Section 3.6 of this chapter applies to a capital project described in
this section, except the following question shall be submitted to the
eligible voters at the election conducted under this section:
"Shall ________ (insert the name of the local hospital
authority or corporation) issue bonds or enter into a lease to
finance ___________ (insert a brief description of the capital
project), which is estimated to cost not more than _______
(insert the total cost of the project) and pledge to levy
property taxes to pay the debt service or lease rentals if other
funds are insufficient?".
(e) A political subdivision may not artificially divide a capital
project into multiple capital projects in order to avoid the
requirements of this section.
(f) Sections 3.7 and 3.8 of this chapter do not apply to a project
to which this section applies.
