Department of local government finance approval of school
financing matters; department action; appeals
Sec. 8. (a) A school corporation must file a petition requesting
approval from the department of local government finance to incur
bond indebtedness, enter into a lease rental agreement, or repay from
the debt service fund loans made for the purchase of school buses
under IC 20-27-4-5 not later than twenty-four (24) months after the
first date of publication of notice of a preliminary determination
under IC 6-1.1-20-3.1(2), unless the school corporation demonstrates
that a longer period is reasonable in light of the school corporation's
facts and circumstances. A school corporation must obtain approval
from the department of local government finance before the school
corporation may:
(1) incur the indebtedness;
(2) enter into the lease agreement; or
(3) repay the school bus purchase loan.
This restriction does not apply to ad valorem property taxes which a
school corporation levies to pay or fund bond or lease rental
indebtedness created or incurred before July 1, 1974.
(b) The department of local government finance may either
approve, disapprove, or modify then approve a school corporation's
proposed lease rental agreement, bond issue or school bus purchase
loan. Before it approves or disapproves a proposed lease rental
agreement, bond issue or school bus purchase loan, the department
of local government finance may seek the recommendation of the tax
control board.
(c) The department of local government finance shall render a
decision not more than three (3) months after the date it receives a
request for approval under subsection (a). However, the department
of local government finance may extend this three (3) month period
by an additional three (3) months if, at least ten (10) days before the
end of the original three (3) month period, the department sends
notice of the extension to the executive officer of the school
corporation. A school corporation may petition for judicial review of
the final determination of the department of local government
finance under this section. The petition must be filed in the tax court
not more than forty-five (45) days after the department enters its
order under this section.
(d) After December 31, 1995, the department of local government
finance may not approve a school corporation's proposed lease rental
agreement or bond issue to finance the construction of additional
classrooms unless the school corporation first:
(1) establishes that additional classroom space is necessary; and
(2) conducts a feasibility study, holds public hearings, and hears
public testimony on using a twelve (12) month school term
(instead of the nine (9) month school term (as defined in
IC 20-30-2-7)) rather than expanding classroom space.
(e) This section does not apply to school bus purchase loans made
by a school corporation which will be repaid solely from the general
fund of the school corporation.
(f) A taxpayer may petition for judicial review of the final
determination of the department of local government finance under
this section. The petition must be filed in the tax court not more than
thirty (30) days after the department enters its order under this
section.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by Acts 1980,
P.L.44, SEC.1; P.L.41-1993, SEC.20; P.L.25-1995, SEC.38;
P.L.90-2002, SEC.189; P.L.256-2003, SEC.21; P.L.1-2005, SEC.90.
Last modified: May 28, 2006