Authors: Representative Edmond Soliday
Co-authors: Representative Mike Aylesworth, Representative Julie Olthoff, Representative Edward DeLaney
Sponsors: Senator Ed Charbonneau, Senator Carlin Yoder
Co-Sponsors: Senator Karen Tallian, Senator Lonnie Randolph
Provides that a political subdivision (other than a township) is not required to deposit funds on the next business day following receipt of the funds if the funds on hand do not exceed $500. (Under current law, a political subdivision (other than a township) must deposit funds not later than the next business day following the receipt of the funds regardless of the amount.) Increases the current threshold amount for the legislative branch to be required to deposit funds on the next business day from $100 to $500. Provides that if the proceeds from the sale of a capital asset owned by a political subdivision exceed $50,000,000, the fiscal body of the political subdivision may do the following: (1) Require some or all of the proceeds to be deposited into a separate fund. (2) Authorize the proceeds to be invested in the same manner as money in the next generation trust fund may be invested, and if so invested, all money that is in a deposit account and not in some other form of investment must be deposited in one or more designated depositories of the political subdivision in the same manner as other public funds of the political subdivision are deposited. Specifies that an expenditure or transfer of any money that is part of the principal of the fund may be made only if the expenditure or transfer is approved by each member of the fiscal body of the political subdivision and by each member of the executive of the political subdivision. Provides that in the case of a county that receives or will receive at least $50,000,000 from the sale of a capital asset, the county legislative body and the county fiscal body may, by adopting substantially similar ordinances, establish a charitable nonprofit foundation to hold some or all of the proceeds of the sale of the capital asset in trust for the benefit of the county. Requires the political subdivision and the foundation to enter into an agreement with a registered investment advisor regarding investment of the proceeds and the agreement must be a fee-for-service agreement. Specifies that the board of trustees of the foundation consists of the members of the county legislative body and the members of the county fiscal body. Provides the following if a foundation is established: (1) Money must be invested in accordance with the terms of an investment policy statement developed by the board of trustees with the investment advisor. (2) The investment policy statement must require diversification, risk management, and other fiduciary requirements common to the management of charitable foundations, including that the funds of the foundation must be invested according to the prudent investor rule. The investment policy statement may not allow the foundation to invest in any investments in which the political subdivision that established the foundation is not permitted to invest under the Constitution of the State of Indiana. (3) Money held by the foundation may be invested in any legal, marketable securities, and is not subject to any other investment limitations in the law (other than the limitations contained in the statute authorizing such an investment and the restrictions contained in the investment policy statement). (4) The total amount of the funds invested by the foundation in equity securities may not exceed 55% of the total portfolio value. (5) The foundation must be audited annually by an independent third party auditor. (6) The board of trustees must meet at least quarterly to receive a quarterly compliance and performance update from the investment advisor. (7) Three nonvoting advisors who are officers of different county designated depositories shall be appointed by those depositories to attend the quarterly meetings and assist the board of trustees in reviewing the compliance and performance report and the annual audit. Provides that an expenditure or transfer of any money that is part of the principal of the donation may be made only upon unanimous approval of the board of trustees. Provides that to the extent that investment income earned on the principal amount of the donation during a calendar year exceeds 5% of the amount of the principal at the beginning of the calendar year, that excess investment income shall be added to and be considered a part of the principal amount of the donation.