Duties of school corporations receiving fees; distribution and
report to county auditor; distribution and notice to school
corporations identifying recipient educational foundation
Sec. 7. (a) If an educational foundation that is exempt from
federal income taxation under Internal Revenue Code Section
501(c)(3) is established as an Indiana nonprofit corporation for the
benefit of a school corporation designated to receive a fee under
section 5(c) of this chapter, fees designated to go to the school
corporation shall be distributed to an educational foundation that
provides benefit to the designated school corporation. A school
corporation that receives benefit from an educational foundation that
meets the requirements of this section shall:
(1) obtain a certificate from the educational foundation that
certifies to the school corporation and the county auditor that
the educational foundation:
(A) is exempt from federal income taxation under Internal
Revenue Code Section 501(c)(3); and
(B) is established as an Indiana nonprofit corporation to
provide benefit to the school corporation; and
(2) provide a copy of the certificate described in subdivision (1)
to the county auditor.
(b) If a school corporation designated to receive a fee under
section 5(c) of this chapter does not receive benefit from an
educational foundation described under subsection (a), the fees
designated to go to the school corporation shall be distributed to the
school corporation and may only be used for purposes other than
salaries and related fringe benefits.
(c) Before the twentieth day of the calendar month following the
calendar month in which a fee was collected, the bureau shall
distribute the fees collected under this chapter to the county auditor
of the county in which the designated school corporation's
administration office is located. Each monthly distribution under this
subsection shall be accompanied by a report to the auditor that
shows:
(1) the total amount of the monthly distribution for all school
corporations in the county that were designated to receive an
education license plate fee under this chapter; and
(2) the amount of the fees that are to be distributed to each
designated school corporation in the county.
(d) Within thirty (30) days of receipt of a distribution from the
bureau under subsection (c), the county auditor shall distribute the
fees received to:
(1) an educational foundation under subsection (a), if the school
corporation has provided a copy of the certificate described in
subsection (a); or
(2) the school corporation under subsection (b);
whichever subsection is applicable. The county auditor shall
designate which school corporation is to receive benefit in
connection with a distribution to an educational foundation under
this subsection. If the school corporation receives benefit from more
than one (1) educational foundation, the superintendent of the
benefitted school corporation shall determine, and inform the auditor
in writing, how fees received are to be distributed to the educational
foundations. The county auditor shall, simultaneous with a
distribution to an educational foundation, send the school corporation
to receive benefit a notice of the distribution that identifies the
recipient educational foundation and the date and the amount of the
distribution.
(e) Funds received by an educational foundation under this
chapter must be used to provide benefit to the designated school
corporation within one (1) year of receipt from the county auditor.
As added by P.L.92-1996, SEC.1. Amended by P.L.68-2001, SEC.4.
Last modified: May 27, 2006