Enrolled Senate Bill (S)

DIGEST

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 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 service obligations that are due to the claimant (but only to the extent that amounts are available to the treasurer of state to fulfill this requirement). (3) The treasurer of state shall provide notice of the request by a claimant to the budget director, the auditor of state, and any department or agency of the state responsible for distributing funds appropriated by the general assembly for distribution to the school corporation from state funds, and such a department or agency of the state shall transfer those funds to the treasurer of state for purposes of paying the unpaid debt service obligations. (4) The amounts made available to the treasurer of state for this purpose shall be made from the following sources and in the following order of priority: (A) First, from amounts appropriated by the general assembly for the state fiscal year for distribution to the school corporation from state funds. (B) Second, from any remaining amounts appropriated by the general assembly for distribution for tuition support in each state fiscal year in excess of the aggregate amount of tuition support needed for distribution to school corporations. (C) Third, to the extent that the general assembly has adopted a biennial budget appropriating amounts in the immediately succeeding state fiscal year for distribution to the school corporation from state funds, then from such fund or account, as determined by the state budget director (from which fund or account there is appropriated to the treasurer of state an amount equal to the lesser of: (i) the unpaid debt service obligations not paid from the other sources; or (ii) the amount appropriated by the general assembly for the immediately succeeding state fiscal year for distribution to the school corporation). (5) If any amounts are transferred to the treasurer of state to pay the unpaid debt service obligations of the school corporation, the applicable department or agency shall recover those amounts by deducting an amount equal to the transfer from any future amounts to be distributed to the school corporation from state funds. ... View more