Bill Text: IN SB0346 | 2010 | Regular Session | Introduced
Bill Title: Oversight of public money.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2010-01-12 - First reading: referred to Committee on Appropriations [SB0346 Detail]
Download: Indiana-2010-SB0346-Introduced.html
Citations Affected: IC 4-33; IC 5-11; IC 36-1-8-9.5.
Effective: July 1, 2010.
January 12, 2010, read first time and referred to Committee on Appropriations.
Digest Continued
entered into by the municipality; or (3) an enterprise zone business;
that is used as compensation to or reimbursement of expenditures of a
member of the governing body or chief executive officer of a municipal
benefit entity. Specifies that these reporting and review requirements
do not require the disclosure of trade secrets or certain information
regarding economic development negotiations that may be excepted
from disclosure under the public records law. Provides that the
definition of "development agreement" also applies to agreements
between a holder of an operating agent contract and a unit. Provides
that examinations of public entities by the state board of accounts shall
be conducted on a schedule determined by the board, except as
specifically required by Indiana law. (Current law requires certain
entities to be examined on an annual basis and other entities to be
examined on a biennial basis.) Specifies that examinations of certain
entities must be conducted at least biennially.
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) 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
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A BILL FOR AN ACT to amend the Indiana Code concerning state
and local administration.
payments, and disbursements of incentive payment money
received:
(1) comport with the purposes of this article; and
(2) do not adversely affect the integrity of the riverboat
gambling industry in Indiana.
(b) The commission may not, under the commission's continuing
jurisdiction over development agreements, redirect an otherwise
lawful payment of money under the development agreement.
(1) The total dollar amounts and recipients of incentive payments made.
(2) Any other items related to
(b) The commission shall prescribe, with respect to
(1) the format of the report;
(2) the deadline by which the report must be filed; and
(3) the manner in which the report must be maintained and filed.
(c) A recipient of an incentive payment shall annually report to the commission a verified accounting of:
(1) the incentive payment received by the recipient; and
(2) any disbursements of incentive payment money received.
(d) A report required under subsection (c) must include:
(1) the legal name of the recipient of each disbursement;
(2) the date, amount, and purpose of each disbursement; and
(3) any other information required by the commission.
(e) Upon request of the commission, a recipient of an incentive payment shall furnish to the commission sufficient documentation to prove the validity of a transaction described in a report required under subsection (c).
(f) A report submitted under subsection (c) must be made available electronically through the computer gateway administered by the office of technology established by IC 4-13.1-2-1.
(g) This section does not require the reporting of:
(1) any trade secret (as defined in IC 24-2-3-2); or
(2) any information that may be excepted from disclosure as a public record under IC 5-14-3-4(b)(5).
on a schedule determined by the state board of accounts. The state board of accounts may not establish an audit schedule for the examination of an entity that is inconsistent with any federal audit guidelines that govern the entity.
(b) Subject to section 9 of this chapter, examinations under this chapter shall be conducted at least biennially for:
(1) schools that require a federal audit;
(2) towns with a population of less than five thousand (5,000) that require a federal audit; and
Chapter 20. Management and Use of Public Money by Municipal Benefit Entities
Sec. 1. This chapter applies only to a municipal benefit entity in a year in which the municipal benefit entity receives or holds public money.
Sec. 2. As used in this chapter, "contributing municipality" means a municipality that:
(1) gives public money to a municipal benefit entity;
(2) enters into an agreement under which a municipal benefit entity receives public money; or
(3) is a city, town, or county where a zone business (as defined in IC 5-28-15-3) received a benefit that resulted in a fee or assistance that was paid to a municipal benefit entity.
Sec. 3. As used in this chapter, "local economic development organization" has the meaning set forth in IC 5-28-11-2.
Sec. 4. (a) As used in this chapter, "municipal benefit entity" refers to any of the following:
(1) An instrumentality of a municipality.
(2) A local economic development organization that is maintained in whole or in part at public expense.
(3) A nonprofit corporation or charitable trust that:
(A) is not described in subdivision (1) or (2);
(B) has a principal purpose of making grants to unrelated organizations or institutions or to individuals for scientific, educational, cultural, or other governmental and municipal purposes; and
(C) is:
(i) maintained in whole or in part at public expense; or
(ii) supported in whole or in part by appropriations, public funds, taxation, or other public money.
(b) The term does not include the state, a municipality, a public foundation for a nonpublic school (as defined in IC 20-18-2-12), a state educational institution, or a private postsecondary educational institution.
Sec. 5. As used in this chapter, "public money" means the following:
(1) Appropriations by the state or a municipality.
(2) Public funds.
(3) Taxes and other sources of public funds.
(4) Anything of value derived from any of the following sources to the extent the amount would not otherwise qualify as public money under subdivisions (1) through (3):
(A) An interest in a grant, gift, donation, endowment, bequest, or trust that is transferred by a municipality.
(B) An agreement to share tax revenue received by a county or city under IC 4-33-12-6 or IC 4-33-13.
(C) An agreement with a municipality to share or designate the recipient of any payment from:
(i) a licensed owner (as defined in IC 4-33-2-13);
(ii) an operating agent (as defined in IC 4-33-2-14.5); or
(iii) a shareholder, partner, or member of a licensed owner (as defined in IC 4-33-2-13) or an operating agent (as defined in IC 4-33-2-14.5).
(D) Other funds not generated from a tax.
(E) Assistance or fees described in IC 5-28-15-5.
Sec. 6. (a) A contributing municipality shall after June 30, 2010, contractually require, as a condition of providing public money to a municipal benefit entity that is not required to be audited annually by the state board of accounts, that the municipal benefit
entity must be audited by an independent accounting firm
acceptable to the contributing municipality.
(b) A municipal benefit entity shall provide the results of an
audit by an independent accounting firm under this section to the
contributing municipality and, in the case of a municipal benefit
entity that receives money described in section 5(4)(C) of this
chapter, to the Indiana gaming commission.
(c) A municipal benefit entity shall pay the costs of an audit
required by this section.
(d) Providing an audit under this section by a municipal benefit
entity may not result in the municipal benefit entity being
considered a public agency for purposes of IC 5-14-1.5-2(a) or
IC 5-14-3-2(m).
Sec. 7. A contributing municipality shall after June 30, 2010,
contractually require, as a condition of providing public money to
a municipal benefit entity, that:
(1) the members of the governing body; or
(2) if the municipal benefit entity is not governed by a board,
the chief executive officer;
of the municipal benefit entity shall annually file a verified written
certification with each contributing municipality stating that a
written statement of accounts has been prepared showing at least
the items listed in section 8 of this chapter. The certification must
state that the statement of accounts is available to the contributing
municipality and any member of the public upon request. A
municipal benefit entity may not be exempted from these
requirements by a provision in articles of incorporation, bylaws, a
will, a trust agreement or other organizing agreement, an
indenture, or another governing instrument. The written statement
of accounts must be signed under penalty of perjury by each of the
individuals described in subdivision (1) or (2), as appropriate. This
section does not apply to an organization that is not required to file
a federal information return under Section 6033(a)(3)(A) of the
Internal Revenue Code.
Sec. 8. (a) A verified written statement of accounts under section
7 of this chapter must show the following:
(1) The period covered by the account.
(2) The amount of public money held by the municipal benefit
entity according to:
(A) the last preceding written statement of accounts; or
(B) the original amount received if there is no preceding
statement.
(3) An itemized schedule of all public money received and disbursed, distributed, or otherwise disposed of during the period.
(4) The balance of all public money remaining at the close of the period, a description of how the public money was invested, and both the inventory and current market values of all the investments.
(5) A statement that the municipal benefit entity has been administered according to all laws and any articles of incorporation, bylaws, wills, trust agreements or other organizing agreements, indentures, and other governing instruments governing the municipal benefit entity.
(6) A statement that all public money was held, invested, and expended according to all laws and other conditions applicable to receipt of the public money.
(7) The business addresses, if any, or the residence addresses of all the members of the governing board for the municipal benefit entity.
(8) The compensation received in the period by:
(A) each member of the governing board; or
(B) if the municipal benefit entity is not governed by a board, the chief executive officer;
of the municipal benefit entity.
(b) This chapter does not require the reporting of:
(1) any trade secret (as defined in IC 24-2-3-2); or
(2) any information that may be excepted from disclosure as a public record under IC 5-14-3-4(b)(5).
Sec. 9. The fiscal body of a contributing municipality shall review the amount of public money attributable to the municipality, an agreement entered into by the municipality, or a zone business (as defined in IC 5-28-15-3) in a district or zone established by the municipality that is used as compensation to or reimbursement of expenditures of:
(1) a member of the governing body; or
(2) if the municipal benefit entity is not governed by a board, the chief executive officer;
of a municipal benefit entity.
unit setting forth the licensed owner's or holder's financial
commitments to support economic development in the unit.
(b) Funds received by a unit under a development agreement are
public funds (as defined in IC 5-13-4-20).
(c) Funds received under a development agreement:
(1) may not be used to reduce the unit's maximum levy under
IC 6-1.1-18.5 but may be used at the discretion of the unit to
reduce the property tax levy of the unit for a particular year;
(2) may be used for any legal or corporate purpose of the unit,
including the pledge of money to bonds, leases, or other
obligations under IC 5-1-14-4; and
(3) are considered miscellaneous revenue.
