Note: This version of section effective until 1-1-2019. See also following version of this section, effective 1-1-2019.

1. (b) This section applies to each school corporation that:

   1. (1) did not issue bonds under IC 20-5-4-1.7 before its repeal; or

   2. (2) issued bonds under IC 20-5-4-1.7 (repealed):

      1. (A) before April 14, 2003; or
      2. (B) after April 13, 2003, if an order approving the issuance of the bonds was issued by the department of local government finance before April 14, 2003.

2. (c) In addition to the purposes set forth in section 1 of this chapter, a school corporation described in subsection (b) may issue bonds to implement solutions to contractual retirement or severance liability. The issuance of bonds for this purpose is subject to the following conditions:

   1. (1) The school corporation may issue bonds under this section only one (1) time.
   2. (2) A school corporation described in subsection (b)(1) or (b)(2)(A) must issue the bonds before July 1, 2006.
   3. (3) The solution to which the bonds are contributing must be reasonably expected to reduce the school corporation's unfunded contractual liability for retirement or severance payments as it existed on June 30, 2001.

   4. (4) The amount of the bonds that may be issued for the purpose described in this section may not exceed:

      1. (A) two percent (2%) of the true tax value of property in the school corporation, for a school corporation that did not issue bonds under IC 20-5-4-1.7 (before its repeal); or

      2. (B) the remainder of:

         1. (i) two percent (2%) of the true tax value of property in the school corporation as of the date that the school corporation issued bonds under IC 20-5-4-1.7 (before its repeal); minus

         2. (ii) the amount of bonds that the school corporation issued under IC 20-5-4-1.7 (before its repeal);

            for a school corporation that issued bonds under IC 20-5-4-1.7 (repealed) as described in subsection (b)(2).

   5. (5) Each year that a debt service levy is needed under this section, the school corporation shall reduce the total property tax levy for the school corporation's transportation, school bus replacement, capital projects, and art association and historical society funds, as appropriate, in an amount equal to:

      1. (A) the property tax levy needed for the debt service under this section; multiplied by

      2. (B) the adjustment percentage set forth in subsection (f) or (g), as applicable.

         The property tax rate for each of these funds shall be reduced each year until the bonds are retired.

   6. (6) The school corporation shall establish a separate debt service fund for repayment of the bonds issued under this section.
3. (d) Bonds issued for the purpose described in this section shall be issued in the same manner as other bonds of the school corporation.
4. (e) Bonds issued under this section are not subject to the petition and remonstrance process under IC 6-1.1-20 or to the limitations contained in IC 36-1-15 .

5. (f) This subsection applies only if the governing body of a school corporation adopts a resolution specifying that the adjustment percentages under this subsection apply to the school corporation. The adjustment percentage under this subsection is the following:

   1. (1) For property taxes first due and payable in 2013, twenty-five percent (25%).
   2. (2) For property taxes first due and payable in 2014, fifty percent (50%).
   3. (3) For property taxes first due and payable in 2015, seventy-five percent (75%).
   4. (4) For property taxes first due and payable after 2015, one hundred percent (100%).
6. (g) If the governing body of a school corporation does not adopt a resolution specifying that the adjustment percentages under subsection

7. (f) apply to the school corporation, the adjustment percentage is one hundred percent (100%).

   [Pre-2006 Recodification Citation: 21-2-21-1.8.]

Sec. 2. (a) As used in this section, "retirement or severance liability" means the payments anticipated to be required to be made to employees of a school corporation upon or after termination of the employment of the employees by the school corporation under an existing or previous employment agreement.

As added by P.L.2-2006, SEC.171. Amended by P.L.1-2007, SEC.155; P.L.1-2010, SEC.83; P.L.145-2012, SEC.27.