2023 Indiana Code › Title 5. State and Local Administration › Article 13. Investment of Public Funds › Chapter 10.5. State Investments › 5-13-10.5-19. Investment in Capital Improvement Board Obligations; Repayment Using Restricted Deposits and Certain Tax Revenue; Terms

Sec. 19. (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 auditor of state 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.
As added by P.L.109-2019, SEC.3.