SB 345 Summary

• Authorizes the Indiana Finance Authority to issue bonds to repay advances received from the federal unemployment trust fund before July 1, 2011, with a maximum principal amount of $2 billion per bond issue and maximum term of 20 years.

• Requires the general assembly to enact a separate law establishing an unemployment obligation assessment to pay bond obligations and administrative expenses before bonds can be issued.

• Establishes the obligation trust fund as a dedicated trust fund outside the state treasury to hold revenues from the unemployment obligation assessment and bond proceeds.

• Specifies that bonds issued are not a debt of the state or pledge of state faith and credit, are exempt from state taxation, and are payable solely from assessment revenues.

• Grants the Indiana Finance Authority power to determine bond sale methods, terms, and interest rates, and to enter into credit agreements to support bond issuance and repayment.