§ 5-13-10.5-19 — Investment in capital improvement board obligations; repayment using restricted deposits and certain tax revenue; terms

Indiana § 5-13-10.5-19

• Jurisdiction: Indiana
• Title 5: STATE AND LOCAL ADMINISTRATION
• Art. 13: INVESTMENT OF PUBLIC FUNDS
• Ch. 10.5: State Investments

Text

(a) This section applies after July 1, 2025,
if:
(1) the:
(A) capital improvement board of managers; and
(B) a professional sports franchise that is part of the National
Basketball Association;
enter into a new agreement of at least twenty-five (25) years
before April 20, 2019;
(2) the increase in the tax rate imposed under IC 6-6-9.7-7(e) by
the city-county council continues in effect through December 31,
2040;
(3) the increase in the tax rate imposed under IC 6-9-13-2(c) by
the city-county council continues in effect through December 31,
2040; and
(4) the tax rate in effect under IC 6-9-8-3 is ten percent (10%).
(b) As used in this section, "capital improvement board" refers to a
capital improvement board of managers established under IC 36-10-9.
(c) As used in this section, "restricted deposits" refers to any amount
deposited into an excess revenues account established under an
agreement described in IC 5-1-17-28.
(d) For each state fiscal year beginning after June 30, 2025, and
ending before July 1, 2037, the state budget director shall, before
August 1, certify the amount of restricted deposits for the state fiscal
year to the treasurer of state.
(e) To qualify for an investment under this section, the capital
improvement board must submit a request to the treasurer of state in
the form and manner required by the treasurer of state. As part of the
request, the capital improvement board shall include the agreement
described in subsection (a)(1) and commit to repay the capital
improvement board's obligation to the treasurer of state from:
(1) all restricted deposits as restricted deposits are available to the
capital improvement board; and
(2) if, after the payment of all obligations owed by the capital
improvement board to the office of management and budget under
all subleases of capital improvements under IC 5-1-17-26, the
restricted deposits are insufficient to fully repay the capital
improvement board's obligation to the treasurer of state, each of
the following, which shall be transferred to the treasurer of state
until, in each case, the capital improvement board's obligation to
the treasurer of state is fully paid:
(A) All county supplemental auto rental excise tax revenues
collected under IC 6-6-9.7-7(b) and IC 6-6-9.7-7(c).
(B) All county innkeeper's tax revenues collected under IC 6-9-8-3(b) and IC 6-9-8-3(c).
(C) All county food and beverage tax revenues collected under
IC 6-9-12-5(a) and IC 6-9-12-5(b).
If the capital improvement board fails to pay all of its obligations to the
treasurer of state when due, the remaining amount owed shall be
withheld by the state comptroller from any money available to the
capital improvement board. The amount withheld shall be transferred
to the treasurer of state to the credit of the capital improvement board.
(f) If the capital improvement board makes a request under
subsection (e), after review by the state budget committee, the treasurer
of state shall approve the request and enter into an agreement with the
capital improvement board under this section.
(g) After the capital improvement board and the treasurer of state
enter into an agreement under subsection (f), and after determining that
restricted deposits have been deposited as described in subsection (e),
the treasurer of state shall invest or reinvest funds from the state
general fund in obligations issued by the capital improvement board.
The terms of each investment and the capital improvement board's
obligation must include the following items:
(1) The duration of the agreement may begin not earlier than July
1, 2025, and terminate no later than July 1, 2037.
(2) Before September 1 of each state fiscal year of the agreement,
the treasurer of state shall invest or reinvest funds from the state
general fund in obligations issued by the capital improvement
board in amounts requested by the capital improvement board but
not to exceed the amount of restricted deposits certified by the
budget director for the state fiscal year to the capital improvement
board and the amount shall be included in the capital
improvement board's obligation under this section.
(3) In no event may the amount invested or reinvested under
subdivision (2) exceed the excess of the amount then on deposit
in the excess revenues account described in subsection (c) over
the aggregate of any prior investments by the treasurer of state,
including any accrued and unpaid interest on the prior
investments by the treasurer of state, but not including the
principal amount on any prior investments that have been repaid
by the capital improvement board.
(4) The rate of interest shall be set by the treasurer of state, at a
rate then currently applicable to a United States Treasury note that
has payment terms that are substantially the same as the
obligation being issued by the capital improvement board.
(5) The capital improvement board shall pay its total obligation,
with interest, to the treasurer of state no later than June 30, 2040.
(h) The capital improvement board may issue obligations under this
section by adoption of a resolution and, as set forth in IC 5-1-14, may
use any source of revenue to satisfy the obligation to the treasurer of
state under this section. This section constitutes complete authority for
the capital improvement board to issue obligations to the treasurer of
state.
(i) The capital improvement board's obligations to the treasurer of
state entered into under this section shall not be considered debt for
purposes of IC 36-1-15.
(j) This section expires on the later of:
(1) July 1, 2041; or
(2) the date on which all obligations owed by the capital
improvement board to the treasurer of state under this section are
paid in full.

Legislative History

As added by P.L.109-2019, SEC.3. Amended by P.L.9-2024, SEC.140.