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IN SB0196
Bill
AI Summary
Senate Enrolled Act No. 196 Summary
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Amends Indiana Code Section 20-48-1-11 to expand the definition of "debt service obligations" to include principal and interest payable to a school corporation's designated paying agent under written agreements related to general obligation bonds.
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Requires the State Treasurer to pay unpaid school debt service obligations within 5 business days of notification by a claimant, deducting payments from state funds appropriated for the school corporation.
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Establishes a priority order for funding debt service payments: first from current year appropriations, second from excess tuition support funds, and third from biennial budget appropriations for the succeeding fiscal year.
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Requires state agencies to transfer necessary funds to the State Treasurer within 3 business days upon receiving notice of a school corporation's inability to pay debt obligations when due.
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Mandates that state agencies recover transferred amounts by deducting them from future distributions to the school corporation, prioritizing non-tuition support funds first, and clarifies that this mechanism does not create a state debt obligation.
Legislative Description
School debt service obligations. Provides the following for purposes of the school bond payment intercept statute: (1) The term "debt service obligations" also includes principal and interest payable to a school corporation's designated paying agent under a written agreement entered into in connection with the issuance of a school corporation's general obligation bonds. (2) Upon being notified of a school corporation's failure to pay debt service obligations when due, the treasurer of state shall within five days pay the unpaid debt service obligations that are due from state funds, in an amount equal to the amount of the unpaid debt
Last Action
Public Law 167
4/25/2017