1. (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 4(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. (1) obtain a certificate from the educational foundation that certifies to the school corporation and the county auditor that the educational foundation:

      1. (A) is exempt from federal income taxation under Internal Revenue Code Section 501(c)(3); and
      2. (B) is established as an Indiana nonprofit corporation to provide benefit to the school corporation; and
   2. (2) provide a copy of the certificate described in subdivision (1) to the county auditor.
2. (b) If a school corporation designated to receive a fee under section 4(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 be used only for purposes other than salaries and related fringe benefits.

3. (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. (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. (2) the amount of the fees that are to be distributed to each designated school corporation in the county.

4. (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. (1) an educational foundation under subsection (a), if the school corporation has provided a copy of the certificate described in subsection (a); or

   2. (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 benefited 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, simultaneously 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.

5. (e) Funds received by an educational foundation under this chapter must be used to provide benefit to the designated school corporation.

   [Pre-2016 Revision Citation: 9-18-31-7.]

As added by P.L.198-2016, SEC.327.