Bill Text: IN SB0226 | 2012 | Regular Session | Amended
Bill Title: School corporation financial management.
Spectrum: Bipartisan Bill
Status: (Engrossed - Dead) 2012-02-16 - Representative Dermody added as cosponsor [SB0226 Detail]
Download: Indiana-2012-SB0226-Amended.html
Citations Affected: IC 4-12; IC 5-1; IC 6-1.1; IC 20-26; IC 20-27;
IC 20-40; IC 20-46; noncode.
Effective: Upon passage; July 1, 2012.
January 4, 2012, read first time and referred to Committee on Appropriations.
January 26, 2012, amended, reported favorably _ Do Pass.
January 30, 2012, read second time, amended, ordered engrossed.
Digest Continued
has had two successive general fund referenda fail. (3) The school corporation has been severely affected, as determined by the board, as a result of the granting of circuit breaker tax credits. Allows the board to authorize a loan to a distressed school corporation from the distressed school fund. Establishes the distressed school fund. Provides that a loan from the distressed school fund is subject to review by the state budget committee and approval by the budget agency. Provides that the budget agency may not make such a loan after December 31, 2015. Appropriates $10,000,000 from the state general fund to the distressed school fund. Provides that the amounts appropriated may be used by the budget agency only for the purposes of making loans authorized from the distressed school fund. Provides that a school corporation that carried out a general program in at least one school year beginning after June 30, 2010, to provide transportation to and from school for eligible students must carry out a program to provide transportation to and from school, unless the governing body of the school corporation: (1) approves the termination of the transportation program; and (2) provides public notice of the termination; at least three years before the date after which the transportation will no longer be provided. Allows the department of education to waive these requirements if the department determines that a transportation plan presented by the school corporation, with or without revisions required by the department: (1) will protect the safety of eligible students enrolled in the school corporation; and (2) is otherwise in accordance with applicable law. Provides that the department of local government finance may upon petition by a school corporation adjust the school corporation's levy for the school bus replacement fund to reflect the school corporation's school bus acquisition plan. Specifies that in addition to the amount that a school corporation may levy for a year under the school corporation's school bus replacement fund maximum levy, the school corporation may also levy an additional amount for 2013, 2014, and 2015 equal to a percentage of the pension neutrality line item, if any, for the school corporation's school bus replacement fund budget order for the 2011 budget year.
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A BILL FOR AN ACT to amend the Indiana Code concerning
education and to make an appropriation.
Chapter 15. Distressed School Fund
Sec. 1. As used in this chapter, "board" refers to the distressed unit appeals board established by IC 6-1.1-20.3-4.
Sec. 2. As used in this chapter, "distressed school corporation" refers to a school corporation designated as a distressed school corporation by the board under IC 6-1.1-20.3-6.5.
Sec. 3. As used in this chapter, "fund" refers to the distressed school fund established by section 4 of this chapter.
Sec. 4. The distressed school fund is established. The fund shall be administered by the budget agency.
Sec. 5. (a) The fund consists of the following:
(1) appropriations made to the fund by the general assembly;
(2) grants, gifts, and donations intended for deposit in the fund; and
(3) principal repaid to the fund from a loan granted under this chapter.
(b) Money in the fund is appropriated for the purposes of the fund.
Sec. 6. Expenses of administering the fund shall be paid from money in the fund.
Sec. 7. The treasurer of state shall invest the money in the fund not currently needed to meet the obligations of the fund in the same manner as other public money may be invested. Interest that accrues from these investments shall be deposited in the fund.
Sec. 8. (a) Except as provided in subsection (b), money in the fund at the end of a fiscal year does not revert to the state general fund.
(b) Money in the fund at the end of the state fiscal year ending June 30, 2016, and at the end of each state fiscal year thereafter reverts to the state general fund.
Sec. 9. The fund shall be used as a revolving fund to make loans to school corporations that are designated by the board as distressed school corporations.
Sec. 10. If the board authorizes under IC 6-1.1-20.3-6.5 a loan from the fund to a distressed school corporation, the distressed school corporation may apply for a loan in a form approved by the budget agency. As part of the application, the school corporation shall submit a plan for the distressed school corporation's use of the loan proceeds and for the repayment of the loan. Within sixty (60) days after receipt of each application, the budget agency shall, after review by the budget committee, make a final determination concerning the application.
Sec. 11. The budget agency shall establish procedures for application to the fund for a loan.
Sec. 12. Subject to this chapter, the budget agency, after review by the budget committee, may loan money to a distressed school corporation on the terms established by the budget agency. The budget agency may not make a loan under this chapter after December 31, 2015.
Sec. 13. The budget agency may authorize a loan to a school corporation that makes an application if:
(1) the applicant has been designated as a distressed school corporation by the board;
(2) the board has authorized a loan to the school corporation from the fund;
(3) the budget agency approves the accuracy and
completeness of the application;
(4) the budget agency determines that there is a need for the
loan;
(5) the budget agency determines that there is an adequate
method of repayment for the loan; and
(6) there is sufficient money in the fund to make the loan.
Sec. 14. The amount of a loan under this chapter may not exceed
the amount of the loan recommended by the board.
Sec. 15. The following apply to a loan under this chapter:
(1) Interest must be charged on the loan, but the rate of
interest on the loan may not exceed a rate equal to the prime
rate minus one percent (1%).
(2) A distressed school corporation may repay the loan in
equal installments over a term specified by the budget agency,
but not more than ten (10) years.
(3) The outstanding balance of the loan may be prepaid
without penalty.
Sec. 16. In establishing the terms of a loan under this chapter,
the budget agency shall consider the plan developed by the board
and the distressed school corporation to move the distressed school
corporation out of its distressed status.
Sec. 17. If a distressed school corporation fails to make a loan
repayment under this chapter when due, the treasurer of state and
the budget agency shall take appropriate action to collect the loan
repayment. However, the treasurer of state and the budget agency
may not impair the rights of the distressed school corporation's
bondholders.
Sec. 18. Money repaid on a loan under this chapter shall be
deposited in the fund.
(b) As used in this section, "increment" means the annual difference between:
(1) the annual debt service payment for the bonds proposed to be retired or refunded; and
(2) the annual debt service payment for the proposed refunding bonds;
for each year that the bonds that are being retired or refunded would have been outstanding.
(c) In order for a school corporation to be an eligible school corporation under this section, the school corporation must determine that the percentage computed under this subsection for the school corporation is at least thirty percent (30%) regarding the year for which the latest certified levies have been determined. A school corporation shall compute its percentage as follows:
(1) Compute the amount of credits granted under IC 6-1.1-20.6 against the school corporation's combined levy for the school corporation's:
(A) debt service fund, as described in IC 20-46-7-15;
(B) capital projects fund;
(C) transportation fund;
(D) school bus replacement fund; and
(E) racial balance fund.
(2) Compute the school corporation's combined levy for the school corporation's:
(A) capital projects fund;
(B) transportation fund;
(C) school bus replacement fund; and
(D) racial balance fund.
(3) Divide the amount computed under subdivision (1) by the amount computed under subdivision (2) and express it as a percentage.
(d) A school corporation that desires to be an eligible school corporation under this section must satisfy the following conditions:
(1) The school corporation shall conduct a public hearing and provide notice of the time, date, and place of the hearing, published as required by IC 5-3-1, before the school corporation may adopt an ordinance under this section. At the public hearing, the governing body must provide the following information:
(A) The annual debt service payments, applicable debt service tax rate, and total debt service payments for the bonds proposed to be retired or refunded.
(B) The annual debt service payments, applicable debt service fund tax rate, and total debt service payments for the proposed refunding bonds.
(C) The annual increment for each year that the bonds that are being retired or refunded would have been outstanding and any other benefits to be derived from issuing the refunding bonds.
(2) The requirements of this subdivision do not apply to a school corporation that adopts an ordinance under subsection
(e) before January 1, 2016. If the amount determined under
subsection (c)(3) is:
(A) more than forty-five percent (45%), notwithstanding
IC 6-1.1-20-3.1(a) and IC 6-1.1-20-3.2(a), the school
corporation shall use the petition and remonstrance process
prescribed by IC 6-1.1-20-3.1(b) and IC 6-1.1-20-3.2(b) and
more individuals must sign the petition for the bond refunding
under this section than the number of individuals signing a
remonstrance against the bond refunding; or
(B) at least thirty percent (30%) but not more than forty-five
percent (45%), the school corporation shall conduct a
referendum on a public question regarding the bond refunding
using the process for a referendum tax levy under IC 20-46-1
and the bond refunding must be approved by the eligible
voters of the school corporation. The question to be submitted
to the voters in the referendum must read as follows:
"Shall ________ (insert the name of the school corporation)
issue refunding bonds to refund not more than fifty percent
(50%) of its outstanding bonds to provide an annual savings
to the school's debt service fund that can be transferred from
the school's debt service fund to the school's capital projects
fund, transportation fund, or school bus replacement fund?".
Except as provided in subdivision (2)(A), IC 6-1.1-20 does not apply
to bonds issued under this section.
(e) A school corporation that desires to be an eligible school
corporation under this section must, before July 1, 2013, and
notwithstanding any other law, adopt an ordinance that sets forth the
following:
(1) The determinations made under subsection (c).
(2) The requirements of this subdivision do not apply to an
ordinance adopted under this subdivision before January 1,
2016. The result of the petition remonstrance process under
subsection (d)(2)(A) or the result of the vote on the public
question under subsection (d)(2)(B), whichever applies.
(3) A determination providing for the:
(A) issuance of bonds to refund not more than fifty percent
(50%) of outstanding bonds or leases issued by or on behalf of
the school corporation; and
(B) payment of redemption premiums and the costs of the
refunding.
(4) With respect to the refunding bonds, the following:
(A) The maximum principal amount.
(B) The maximum interest rate.
(C) The annual lease or debt service payment.
(D) The final maturity date.
(E) The estimated amount of the increment that will occur for each year that the bonds that are being retired or refunded by the issuance of refunding bonds would have been outstanding.
(F) A finding that the annual debt service or lease payment on the refunding bonds will not increase the annual debt service or lease payment above the annual debt service or lease payment approved by the school corporation for the original project.
If the governing body adopts an ordinance under this section, the governing body must publish notice of the adoption of the ordinance as required by IC 5-3-1.
(f) An eligible school corporation may issue refunding bonds as permitted by this section. In addition, an eligible school corporation may extend the repayment period beyond the repayment period for the bonds that are being retired or refunded by the issuance of refunding bonds. However, the repayment period may be extended only once for a particular bond, and the extension may not exceed ten (10) years.
(g) Property taxes imposed by an eligible school corporation to pay debt service for bonds permitted by this section shall be considered for purposes of calculating the limits to property tax liability under Article 10, Section 1 of the Constitution of the State of Indiana and for calculating a person's credit under IC 6-1.1-20.6-7.5. However, property taxes imposed by an eligible school corporation through December 31, 2019, to pay debt service for bonds permitted by this section may not be considered in an eligible county, as used in Article 10, Section 1(h) of the Constitution of the State of Indiana, for purposes of calculating the limits to property tax liability under Article 10, Section 1 of the Constitution of the State of Indiana or for calculating a person's credit under IC 6-1.1-20.6-7.5.
(b) The distressed unit appeal board consists of the following members:
(1) The director of the office of management and budget or the director's designee. The director or the director's designee shall serve as chairperson of the distressed unit appeal board.
(2) The commissioner of the department of local government finance or the commissioner's designee.
(4) The state superintendent of public instruction or the superintendent's designee.
(5) An individual appointed by the chairman of the legislative council.
(1) traveling expenses as provided under IC 4-13-1-4; and
(2) other expenses actually incurred in connection with the member's duties as provided in the state policies and procedures established by the Indiana department of administration and approved by the budget agency.
(1) The school corporation has:
(A) issued refunding bonds under IC 5-1-5-2.5; or
(B) adopted an ordinance under IC 5-1-5-2.5 making the determinations and including the information specified in IC 5-1-5-2.5(e).
(2) The school corporation has had two (2) successive general fund referenda fail.
(3) The school corporation has been severely affected, as determined by the board, as a result of the granting of property tax credits under IC 6-1.1-20.6.
(b) If the board designates a school corporation as a distressed school corporation under subsection (a), the board shall immediately notify:
(1) the school corporation; and
(2) the budget agency;
that the board has designated the school corporation as a distressed political subdivision.
(c) The board may before January 1, 2016, authorize a loan to the school corporation from the distressed school fund under IC 4-12-15. If the board authorizes a loan to the school corporation under this subsection, the board shall recommend to the state budget committee and the budget agency:
(1) the term of the loan, not to exceed ten (10) years; and
(2) the rate of interest that will be charged on the loan.
Interest must be charged on a loan authorized under this subsection, but the rate of interest on the loan may not exceed a rate equal to the prime rate minus one percent (1%). A loan authorized under this subsection is subject to review by the state budget committee and approval by the budget agency under IC 4-12-15.
the county that is affected by the financial plan has adopted a resolution
agreeing to the terms of the financial plan.
(b) If the conditions of subsection (a) are satisfied, the board may,
notwithstanding IC 6-1.1-20.6, do any of the following:
(1) Increase the percentage thresholds (specified as a percentage
of gross assessed value) at which the credit under IC 6-1.1-20.6
applies to a person's property tax liability in the political
subdivision.
(2) Provide for percentage reductions to credits otherwise
provided under IC 6-1.1-20.6 in the political subdivision.
(3) Provide that some or all of the property taxes that:
(A) are being imposed to pay bonds, leases, or other debt
obligations; and
(B) would otherwise be included in the calculation of the
credit under IC 6-1.1-20.6 in the political subdivision;
shall not be included for purposes of calculating a person's credit
under IC 6-1.1-20.6.
(c) If the board provides relief described in subsection (b), the board
shall conduct audits and reviews as necessary to determine whether the
affected political subdivision is abiding by the terms of the financial
plan agreed to under subsection (a).
(1) In the name of the school corporation, to sue and be sued and to enter into contracts in matters permitted by applicable law. However, a governing body may not use funds received from the state to bring or join in an action against the state, unless the governing body is challenging an adverse decision by a state
agency, board, or commission.
(2) To take charge of, manage, and conduct the educational affairs
of the school corporation and to establish, locate, and provide the
necessary schools, school libraries, other libraries where
permitted by law, other buildings, facilities, property, and
equipment.
(3) To appropriate from the school corporation's general fund an
amount, not to exceed the greater of three thousand dollars
($3,000) per budget year or one dollar ($1) per pupil, not to
exceed twelve thousand five hundred dollars ($12,500), based on
the school corporation's previous year's ADM, to promote the best
interests of the school corporation through:
(A) the purchase of meals, decorations, memorabilia, or
awards;
(B) provision for expenses incurred in interviewing job
applicants; or
(C) developing relations with other governmental units.
(4) To:
(A) Acquire, construct, erect, maintain, hold, and contract for
construction, erection, or maintenance of real estate, real estate
improvements, or an interest in real estate or real estate
improvements, as the governing body considers necessary for
school purposes, including buildings, parts of buildings,
additions to buildings, rooms, gymnasiums, auditoriums,
playgrounds, playing and athletic fields, facilities for physical
training, buildings for administrative, office, warehouse, repair
activities, or housing school owned buses, landscaping, walks,
drives, parking areas, roadways, easements and facilities for
power, sewer, water, roadway, access, storm and surface
water, drinking water, gas, electricity, other utilities and
similar purposes, by purchase, either outright for cash (or
under conditional sales or purchase money contracts providing
for a retention of a security interest by the seller until payment
is made or by notes where the contract, security retention, or
note is permitted by applicable law), by exchange, by gift, by
devise, by eminent domain, by lease with or without option to
purchase, or by lease under IC 20-47-2, IC 20-47-3, or
IC 20-47-5.
(B) Repair, remodel, remove, or demolish, or to contract for
the repair, remodeling, removal, or demolition of the real
estate, real estate improvements, or interest in the real estate
or real estate improvements, as the governing body considers
necessary for school purposes.
(C) Provide for conservation measures through utility
efficiency programs or under a guaranteed savings contract as
described in IC 36-1-12.5.
(5) To acquire personal property or an interest in personal
property as the governing body considers necessary for school
purposes, including buses, motor vehicles, equipment, apparatus,
appliances, books, furniture, and supplies, either by cash purchase
or under conditional sales or purchase money contracts providing
for a security interest by the seller until payment is made or by
notes where the contract, security, retention, or note is permitted
by applicable law, by gift, by devise, by loan, or by lease with or
without option to purchase and to repair, remodel, remove,
relocate, and demolish the personal property. All purchases and
contracts specified under the powers authorized under subdivision
(4) and this subdivision are subject solely to applicable law
relating to purchases and contracting by municipal corporations
in general and to the supervisory control of state agencies as
provided in section 6 of this chapter.
(6) To sell or exchange real or personal property or interest in real
or personal property that, in the opinion of the governing body, is
not necessary for school purposes, in accordance with IC 20-26-7,
to demolish or otherwise dispose of the property if, in the opinion
of the governing body, the property is not necessary for school
purposes and is worthless, and to pay the expenses for the
demolition or disposition.
(7) To lease any school property for a rental that the governing
body considers reasonable or to permit the free use of school
property for:
(A) civic or public purposes; or
(B) the operation of a school age child care program for
children who are at least five (5) years of age and less than
fifteen (15) years of age that operates before or after the school
day, or both, and during periods when school is not in session;
if the property is not needed for school purposes. Under this
subdivision, the governing body may enter into a long term lease
with a nonprofit corporation, community service organization, or
other governmental entity, if the corporation, organization, or
other governmental entity will use the property to be leased for
civic or public purposes or for a school age child care program.
However, if payment for the property subject to a long term lease
is made from money in the school corporation's debt service fund,
all proceeds from the long term lease must be deposited in the
school corporation's debt service fund so long as payment for the
property has not been made. The governing body may, at the
governing body's option, use the procedure specified in
IC 36-1-11-10 in leasing property under this subdivision.
(8) To:
(A) Employ, contract for, and discharge superintendents,
supervisors, principals, teachers, librarians, athletic coaches
(whether or not they are otherwise employed by the school
corporation and whether or not they are licensed under
IC 20-28-5), business managers, superintendents of buildings
and grounds, janitors, engineers, architects, physicians,
dentists, nurses, accountants, teacher aides performing
noninstructional duties, educational and other professional
consultants, data processing and computer service for school
purposes, including the making of schedules, the keeping and
analyzing of grades and other student data, the keeping and
preparing of warrants, payroll, and similar data where
approved by the state board of accounts as provided below,
and other personnel or services as the governing body
considers necessary for school purposes.
(B) Fix and pay the salaries and compensation of persons and
services described in this subdivision that are consistent with
IC 20-28-9-1.
(C) Classify persons or services described in this subdivision
and to adopt schedules of salaries or compensation that are
consistent with IC 20-28-9-1.
(D) Determine the number of the persons or the amount of the
services employed or contracted for as provided in this
subdivision.
(E) Determine the nature and extent of the duties of the
persons described in this subdivision.
The compensation, terms of employment, and discharge of
teachers are, however, subject to and governed by the laws
relating to employment, contracting, compensation, and discharge
of teachers. The compensation, terms of employment, and
discharge of bus drivers are subject to and governed by laws
relating to employment, contracting, compensation, and discharge
of bus drivers. The forms and procedures relating to the use of
computer and data processing equipment in handling the financial
affairs of the school corporation must be submitted to the state
board of accounts for approval so that the services are used by the
school corporation when the governing body determines that it is
in the best interest of the school corporation while at the same
time providing reasonable accountability for the funds expended.
(9) Notwithstanding the appropriation limitation in subdivision
(3), when the governing body by resolution considers a trip by an
employee of the school corporation or by a member of the
governing body to be in the interest of the school corporation,
including attending meetings, conferences, or examining
equipment, buildings, and installation in other areas, to permit the
employee to be absent in connection with the trip without any loss
in pay and to reimburse the employee or the member the
employee's or member's reasonable lodging and meal expenses
and necessary transportation expenses. To pay teaching personnel
for time spent in sponsoring and working with school related trips
or activities.
(10) Subject to IC 20-27-13, to transport children to and from
school, when in the opinion of the governing body the
transportation is necessary, including considerations for the safety
of the children and without regard to the distance the children live
from the school. The transportation must be otherwise in
accordance with applicable law.
(11) To provide a lunch program for a part or all of the students
attending the schools of the school corporation, including the
establishment of kitchens, kitchen facilities, kitchen equipment,
lunch rooms, the hiring of the necessary personnel to operate the
lunch program, and the purchase of material and supplies for the
lunch program, charging students for the operational costs of the
lunch program, fixing the price per meal or per food item. To
operate the lunch program as an extracurricular activity, subject
to the supervision of the governing body. To participate in a
surplus commodity or lunch aid program.
(12) To purchase textbooks, to furnish textbooks without cost or
to rent textbooks to students, to participate in a textbook aid
program, all in accordance with applicable law.
(13) To accept students transferred from other school corporations
and to transfer students to other school corporations in accordance
with applicable law.
(14) To make budgets, to appropriate funds, and to disburse the
money of the school corporation in accordance with applicable
law. To borrow money against current tax collections and
otherwise to borrow money, in accordance with IC 20-48-1.
(15) To purchase insurance or to establish and maintain a
program of self-insurance relating to the liability of the school
corporation or the school corporation's employees in connection
with motor vehicles or property and for additional coverage to the
extent permitted and in accordance with IC 34-13-3-20. To
purchase additional insurance or to establish and maintain a
program of self-insurance protecting the school corporation and
members of the governing body, employees, contractors, or agents
of the school corporation from liability, risk, accident, or loss
related to school property, school contract, school or school
related activity, including the purchase of insurance or the
establishment and maintenance of a self-insurance program
protecting persons described in this subdivision against false
imprisonment, false arrest, libel, or slander for acts committed in
the course of the persons' employment, protecting the school
corporation for fire and extended coverage and other casualty
risks to the extent of replacement cost, loss of use, and other
insurable risks relating to property owned, leased, or held by the
school corporation. In accordance with IC 20-26-17, to:
(A) participate in a state employee health plan under
IC 5-10-8-6.6 or IC 5-10-8-6.7;
(B) purchase insurance; or
(C) establish and maintain a program of self-insurance;
to benefit school corporation employees, including accident,
sickness, health, or dental coverage, provided that a plan of
self-insurance must include an aggregate stop-loss provision.
(16) To make all applications, to enter into all contracts, and to
sign all documents necessary for the receipt of aid, money, or
property from the state, the federal government, or from any other
source.
(17) To defend a member of the governing body or any employee
of the school corporation in any suit arising out of the
performance of the member's or employee's duties for or
employment with, the school corporation, if the governing body
by resolution determined that the action was taken in good faith.
To save any member or employee harmless from any liability,
cost, or damage in connection with the performance, including the
payment of legal fees, except where the liability, cost, or damage
is predicated on or arises out of the bad faith of the member or
employee, or is a claim or judgment based on the member's or
employee's malfeasance in office or employment.
(18) To prepare, make, enforce, amend, or repeal rules,
regulations, and procedures:
(A) for the government and management of the schools, property, facilities, and activities of the school corporation, the school corporation's agents, employees, and pupils and for the operation of the governing body; and
(B) that may be designated by an appropriate title such as "policy handbook", "bylaws", or "rules and regulations".
(19) To ratify and approve any action taken by a member of the governing body, an officer of the governing body, or an employee of the school corporation after the action is taken, if the action could have been approved in advance, and in connection with the action to pay the expense or compensation permitted under IC 20-26-1 through IC 20-26-5, IC 20-26-7, IC 20-40-12, and IC 20-48-1 or any other law.
(20) To exercise any other power and make any expenditure in carrying out the governing body's general powers and purposes provided in this chapter or in carrying out the powers delineated in this section which is reasonable from a business or educational standpoint in carrying out school purposes of the school corporation, including the acquisition of property or the employment or contracting for services, even though the power or expenditure is not specifically set out in this chapter. The specific powers set out in this section do not limit the general grant of powers provided in this chapter except where a limitation is set out in IC 20-26-1 through IC 20-26-5, IC 20-26-7, IC 20-40-12, and IC 20-48-1 by specific language or by reference to other law.
Chapter 13. Termination of Transportation; Waiver
Sec. 1. As used in this chapter, "eligible student" means an individual who in any part of a school year:
(1) is enrolled in a school corporation;
(2) has legal settlement in the school corporation;
(3) attended school in the school corporation's taxing district; and
(4) is not required by federal or state law to receive transportation services to and from school.
Sec. 2. This chapter applies to a school corporation that carried out a general program in at least one (1) school year beginning after June 30, 2010, to provide transportation to and from school for eligible students.
Sec. 3. Except as provided in section 7 of this chapter, a school
corporation described in section 2 of this chapter shall carry out a
program to provide transportation to and from school for all
eligible students in any part of a school year beginning after June
30, 2012, unless the governing body of the school corporation:
(1) approves the termination of the transportation program;
and
(2) provides public notice of the date after which the
transportation will no longer be provided under the
transportation program;
at least three (3) years before the date after which the
transportation will no longer be provided under the transportation
program.
Sec. 4. Transportation provided in a transportation program
required under section 3 of this chapter may be limited by the
school corporation's governing body to children residing a
minimum distance from a school if the governing body includes
facts in the resolution setting the minimum distance that
demonstrate that each child residing less than the minimum
distance for the school can safely walk to and from the school
unattended by an adult during the regular hours that the child
would ordinarily be coming to or from the school.
Sec. 5. Transportation provided under a transportation
program required under section 3 of this chapter may be limited
by the school corporation's governing body to providing
transportation to school immediately before the beginning of an
instructional day (described in IC 20-30-2-2) and from school
immediately after the end of an instructional day (described in
IC 20-30-2-2) without additional accommodations for participation
in extracurricular activities.
Sec. 6. Transportation provided under a transportation
program required under section 3 of this chapter must be
otherwise in accordance with applicable law.
Sec. 7. (a) A school corporation may petition the department in
writing to waive the requirement imposed by section 3 of this
chapter.
(b) A petition under subsection (a) must:
(1) demonstrate that the waiver request was approved by the
governing body for the school corporation;
(2) describe the transportation services that will be provided
to students who are required by federal or state law to receive
transportation services to and from school;
(3) present a written plan that provides for the safe movement
of eligible students to and from school; and
(4) include any other information required by the department.
Sec. 8. If a petition complies with section 7 of this chapter, the
department shall conduct a public hearing on the petition in the
district served by the school corporation after giving notice of the
public hearing under IC 5-3-1.
Sec. 9. If, based on the information contained in the petition and
provided in the public hearing or otherwise made available to the
department, the department determines that the plan presented by
the school corporation, with or without revisions required by the
department:
(1) will protect the safety of eligible students enrolled in the
school corporation; and
(2) is otherwise in accordance with applicable law;
the department may waive the requirements imposed by section 3
of this chapter.
Sec. 10. The department may condition a waiver under section
9 of this chapter on the terms and conditions specified by the
department. If a school corporation fails to comply with a term or
condition of a waiver or the department discovers facts that
indicate that the school corporation's plan:
(1) is not protecting the safety of eligible students enrolled in
the school corporation; or
(2) is not otherwise in accordance with applicable law;
the department may issue an order under IC 4-21.5-3 or an
emergency or temporary order under IC 4-21.5-4 specifying the
actions that must be taken by the school corporation to correct the
deficiency. The order may suspend or terminate the waiver
granted under section 9 of this chapter beginning on the date
specified by the department.
(b) Before January 1, 2016, costs attributable to transportation (as defined in IC 20-40-6-1) may be budgeted in and paid from the fund. After December 31, 2015, costs attributable to transportation (as defined in IC 20-40-6-1) may not be budgeted in and paid from the fund.
(b) Contracted transportation service costs transferred to the school bus replacement fund under IC 20-40-7 are payable from the school bus replacement fund.
(1) the school corporation's maximum permissible levy determined under this section for the previous year, after eliminating the effects of temporary excessive levy appeals and any other temporary adjustments made to the levy for the calendar year (regardless of whether the school corporation imposed the entire amount of the maximum permissible levy in the immediately preceding year); by
(2) the assessed value growth quotient determined under IC 6-1.1-18.5-2.
(b) The department of local government finance may, upon petition by a school corporation, adjust the school corporation's levy for the fund to reflect the school corporation's plan adopted
or amended under this chapter.
(c) In addition to the amount that a school corporation may levy
for a year under the school corporation's maximum permissible
levy determined under subsection (a), the school corporation may
also levy an amount equal to the following:
(1) For property taxes first due and payable in 2013, an
amount equal to:
(A) seventy-five percent (75%); multiplied by
(B) the amount of the pension neutrality line item, if any,
for the school corporation's school bus replacement fund
budget order for the 2011 budget year.
(2) For property taxes first due and payable in 2014, an
amount equal to:
(A) fifty percent (50%); multiplied by
(B) the amount of the pension neutrality line item, if any,
for the school corporation's school bus replacement fund
budget order for the 2011 budget year.
(3) For property taxes first due and payable in 2015, an
amount equal to:
(A) twenty-five percent (25%); multiplied by
(B) the amount of the pension neutrality line item, if any,
for the school corporation's school bus replacement fund
budget order for the 2011 budget year.
Any additional amounts that may be levied or are levied by a
school corporation under this subsection for a year shall not be
considered for purposes of determining the school corporation's
maximum permissible levy under subsection (a) for the following
year. This subsection expires January 1, 2017.
(b) This SECTION expires July 1, 2016.