Introduced Version
HOUSE BILL No. 1421
_____
DIGEST OF INTRODUCED BILL
Citations Affected:
IC 4-4-10.9-6.2
;
IC 4-4-11.
Synopsis: IDFA educational facility projects. Expands the definition
of "educational facility project" for purposes of the Indiana
development finance authority (IDFA) law to permit the authority to
provide funding to certain nonprofit corporations for real property and
improvements, personal property, and noncapital costs to fund a
judgment, settlement, or other cost or liability.
Effective: Upon passage.
Bauer
January 11, 2001, read first time and referred to Committee on Ways and Means.
Introduced
First Regular Session 112th General Assembly (2001)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in
this style type, and deletions will appear in
this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in
this style type. Also, the
word
NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in
this style type or
this style type reconciles conflicts
between statutes enacted by the 2000 General Assembly.
HOUSE BILL No. 1421
A BILL FOR AN ACT to amend the Indiana Code concerning state
offices and administration.
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 4-4-10.9-6.2; (01)IN1421.1.1. -->
SECTION 1.
IC 4-4-10.9-6.2
IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 6.2. (a)
"Educational facility project" includes:
(1) the acquisition of land, site improvements, infrastructure
improvements, buildings, or structures, the rehabilitation,
renovation, and enlargement of buildings and structures,
machinery, equipment, furnishings, or facilities (or any
combination of these):
(1) (A) comprising or being functionally related and
subordinate to any aquaria, botanical societies, historical
societies, libraries, museums, performing arts associations or
societies, scientific societies, zoological societies, and
independent elementary, secondary, or postsecondary schools
(or any combination of these) that engages in the cultural,
intellectual, scientific, educational, or artistic enrichment of
the people of the state the development or expansion of which
serves the purposes set forth in
IC 4-4-11-2
;
(2) (B) is not used or to be used primarily for sectarian
instruction or study or as a place for devotional activities; and
(3) (C) is not used or to be used primarily in connection with
any part of the program of a school or department of divinity
for any religious denomination; or
(2) funding (including reimbursement or refinancing) by a
nonprofit organization described in subsection (b) of:
(A) real property and improvements;
(B) personal property; or
(C) noncapital costs to fund a judgment, settlement, or
other cost or liability, other than an ordinary and
recurring operating cost or expenditure.
(b) For purposes of subsection (a)(2), a nonprofit organization
must be:
(1) qualified as tax exempt under Section 501(c)(3) of the
Internal Revenue Code; and
(2) have headquarters or a primary educational or exhibit
facility located on property owned by or titled in the name of
the state of Indiana or an agency, commission, or
instrumentality of the state of Indiana that serves the
purposes set forth in
IC 4-4-11-2.
SOURCE: IC 4-4-11-2; (01)IN1421.1.2. -->
SECTION 2.
IC 4-4-11-2
, AS AMENDED BY P.L.273-1999,
SECTION 195, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 2. (a) The legislature makes the
following findings of fact:
(1) That there currently exists in certain areas of the state critical
conditions of unemployment or environmental pollution,
including water pollution, air pollution, sewage and solid waste,
radioactive waste, thermal pollution, radiation contamination, and
noise pollution, and that these conditions may well exist, from
time to time, in other areas of the state.
(2) That in some areas of the state such conditions are chronic and
of long standing and that without remedial measures they may
become so in other areas of the state.
(3) That economic insecurity due to unemployment or
environmental pollution is a menace to the health, safety, morals,
and general welfare of not only the people of the affected areas
but of the people of the entire state.
(4) That involuntary unemployment and its resulting burden of
indigency falls with crushing force upon the unemployed worker
and ultimately upon the state in the form of public assistance and
unemployment compensation.
(5) That security against unemployment and the resulting spread
of indigency and economic stagnation in the areas affected can
best be provided by:
(A) the promotion, attraction, stimulation, rehabilitation, and
revitalization of industrial development projects, rural
development projects, mining operations, and agricultural
operations that involve the processing of agricultural products;
(B) the promotion and stimulation of international exports; and
(C) the education, both formal and informal, of people of all
ages throughout the state by the promotion, attraction,
construction, renovation, rehabilitation, and revitalization of
and assistance to educational facility projects.
(6) That the present and prospective health, safety, morals, right
to gainful employment, and general welfare of the people of the
state require as a public purpose the abatement or control of
pollution, the promotion of increased educational enrichment
(including cultural, intellectual, scientific, or artistic
opportunities) for people of all ages through new, expanded, or
revitalized educational facility projects
or through assisting
educational facility projects, and the promotion of employment
creation or retention through development of new and expanded
industrial development projects, rural development projects,
mining operations, and agricultural operations that involve the
processing of agricultural products.
(7) That there is a need to stimulate a larger flow of private
investment funds from commercial banks, investment bankers,
insurance companies, other financial institutions, and individuals
into such industrial development projects, rural development
projects, mining operations, international exports, and agricultural
operations that involve the processing of agricultural products in
the state.
(8) That the authority can encourage the making of loans or leases
for creation or expansion of industrial development projects, rural
development projects, mining operations, international exports,
and agricultural operations that involve the processing of
agricultural products, thus putting a larger portion of the private
capital available in Indiana for investment to use in the general
economic development of the state.
(9) That the issuance of bonds of the authority to create a
financing pool for industrial development projects promoting a
substantial likelihood of opportunities for:
(A) gainful employment;
(B) business opportunities;
(C) educational enrichment (including cultural, intellectual,
scientific, or artistic opportunities);
(D) the abatement, reduction, or prevention of pollution;
(E) the removal or treatment of any substances in materials
being processed that otherwise would cause pollution when
used; or
(F) increased options for and availability of child care;
will improve the health, safety, morals, and general welfare of the
people of the state and constitutes a public purpose for which the
authority shall exist and operate.
(10) That the issuance of bonds of the authority to create a
funding source for the making of guaranteed participating loans
will promote and encourage an expanding international exports
market and international exports sales and will promote the
general welfare of all of the people of Indiana by assisting Indiana
businesses through stimulation of the expansion of international
exports sales for Indiana products and services, especially those
of small and medium-sized businesses, by providing financial
assistance through the authority.
(b) The Indiana development finance authority shall exist and
operate for the public purposes of:
(1) promoting opportunities for gainful employment and business
opportunities by the promotion and development of industrial
development projects, rural development projects, mining
operations, international exports, and agricultural operations that
involve the processing of agricultural products, in any areas of the
state;
(2) promoting the educational enrichment (including cultural,
intellectual, scientific, or artistic opportunities) of all the people
of the state by the promotion,
and development,
and assistance
of educational facility projects;
(3) promoting affordable farm credit and agricultural loan
financing at interest rates that are consistent with the needs of
borrowers for farming and agricultural enterprises;
(4) preventing and remediating environmental pollution,
including water pollution, air pollution, sewage and solid waste
disposal, radioactive waste, thermal pollution, radiation
contamination, and noise pollution affecting the health and well
being of the people of the state by the promotion and development
of industrial development projects; and
(5) promoting affordable and accessible child care for the people
of the state by the promotion and development of child care
facilities.
SOURCE: IC 4-4-11-15; (01)IN1421.1.3. -->
SECTION 3.
IC 4-4-11-15
IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 15. (a) The
authority is granted all powers necessary or appropriate to carry out and
effectuate its public and corporate purposes under this chapter,
IC 4-4-21
, and
IC 15-7-5
, including but not limited to the following:
(1) Have perpetual succession as a body politic and corporate and
an independent instrumentality exercising essential public
functions.
(2) Without complying with
IC 4-22-2
, adopt, amend, and repeal
bylaws, rules, and regulations not inconsistent with this chapter,
IC 4-4-21
, and
IC 15-7-5
and necessary or convenient to regulate
its affairs and to carry into effect the powers, duties, and purposes
of the authority and conduct its business.
(3) Sue and be sued in its own name.
(4) Have an official seal and alter it at will.
(5) Maintain an office or offices at a place or places within the
state as it may designate.
(6) Make and execute contracts and all other instruments
necessary or convenient for the performance of its duties and the
exercise of its powers and functions under this chapter,
IC 4-4-21
,
and
IC 15-7-5.
(7) Employ architects, engineers, attorneys, inspectors,
accountants, agriculture experts, silviculture experts, aquaculture
experts, and financial experts, and such other advisors,
consultants, and agents as may be necessary in its judgment and
to fix their compensation.
(8) Procure insurance against any loss in connection with its
property and other assets, including loans and loan notes in
amounts and from insurers as it may consider advisable.
(9) Borrow money, make guaranties, issue bonds, and otherwise
incur indebtedness for any of the authority's purposes, and issue
debentures, notes, or other evidences of indebtedness, whether
secured or unsecured, to any person, as provided by this chapter,
IC 4-4-21
, and
IC 15-7-5.
(10) Procure insurance or guaranties from any public or private
entities, including any department, agency, or instrumentality of
the United States, for payment of any bonds issued by the
authority or for reinsurance on amounts paid from the industrial
development project guaranty fund, including the power to pay
premiums on any insurance or reinsurance.
(11) Purchase, receive, take by grant, gift, devise, bequest, or
otherwise, and accept, from any source, aid or contributions of
money, property, labor, or other things of value to be held, used,
and applied to carry out the purposes of this chapter,
IC 4-4-21
,
and
IC 15-7-5
, subject to the conditions upon which the grants or
contributions are made, including but not limited to gifts or grants
from any department, agency, or instrumentality of the United
States, and lease or otherwise acquire, own, hold, improve,
employ, use, and otherwise deal in and with real or personal
property or any interest in real or personal property, wherever
situated, for any purpose consistent with this chapter,
IC 4-4-21
,
or
IC 15-7-5.
(12) Enter into agreements with any department, agency, or
instrumentality of the United States or this state and with lenders
and enter into loan agreements, sales contracts, and leases with
contracting parties, including borrowers, lenders, developers, or
users, for the purpose of planning, regulating, and providing for
the financing and refinancing of any agricultural enterprise (as
defined in
IC 15-7-4.9-2
), rural development project (as defined
in
IC 15-7-4.9-19.5
), industrial development project, or
international exports, and distribute data and information
concerning the encouragement and improvement of agricultural
enterprises and agricultural employment, rural development
projects, industrial development projects, international exports,
and other types of employment in the state undertaken with the
assistance of the authority under this chapter.
(13) Enter into contracts or agreements with lenders and lessors
for the servicing and processing of loans and leases pursuant to
this chapter,
IC 4-4-21
, and
IC 15-7-5.
(14) Provide technical assistance to local public bodies and to
profit and nonprofit entities in the development or operation of
agricultural enterprises, rural development projects, and industrial
development projects.
(15) To the extent permitted under its contract with the holders of
the bonds of the authority, consent to any modification with
respect to the rate of interest, time, and payment of any
installment of principal or interest, or any other term of any
contract, loan, loan note, loan note commitment, contract, lease,
or agreement of any kind to which the authority is a party.
(16) To the extent permitted under its contract with the holders of
bonds of the authority, enter into contracts with any lender
containing provisions enabling it to reduce the rental or carrying
charges to persons unable to pay the regular schedule of charges
when, by reason of other income or payment by any department,
agency, or instrumentality of the United States of America or of
this state, the reduction can be made without jeopardizing the
economic stability of the agricultural enterprise, rural
development project, or industrial development project being
financed.
(17) Invest any funds not needed for immediate disbursement,
including any funds held in reserve, in direct and general
obligations of or obligations fully and unconditionally guaranteed
by the United States, obligations issued by agencies of the United
States, obligations of this state, or any obligations or securities
which may from time to time be legally purchased by
governmental subdivisions of this state pursuant to IC 5-13, or
any obligations or securities which are permitted investments for
bond proceeds or any construction, debt service, or reserve funds
secured under the trust indenture or resolution pursuant to which
bonds are issued.
(18) Collect fees and charges, as the authority determines to be
reasonable, in connection with its loans, guarantees, advances,
insurance, commitments, and servicing.
(19) Cooperate and exchange services, personnel, and information
with any federal, state, or local government agency, or
instrumentality of the United States or this state.
(20) Sell, at public or private sale, with or without public bidding,
any loan or other obligation held by the authority.
(21) Enter into agreements concerning, and acquire, hold, and
dispose by any lawful means, land or interests in land, building
improvements, structures, personal property, franchises, patents,
accounts receivable, loans, assignments, guarantees, and
insurance needed for the purposes of this chapter,
IC 4-4-21
, or
IC 15-7-5.
(22) Take assignments of accounts receivable, loans, guarantees,
insurance, notes, mortgages, security agreements securing notes,
and other forms of security, attach, seize, or take title by
foreclosure or conveyance to any industrial development project
when a guaranteed loan thereon is clearly in default and when in
the opinion of the authority such acquisition is necessary to
safeguard the industrial development project guaranty fund, and
sell, or on a temporary basis, lease, or rent such industrial
development project for any use.
(23) Expend money, as the authority considers appropriate, from
the industrial development project guaranty fund created by
section 16 of this chapter.
(24) Purchase, lease as lessee, construct, remodel, rebuild,
enlarge, or substantially improve industrial development projects,
including land, machinery, equipment, or any combination
thereof.
(25) Lease industrial development projects to users or developers,
with or without an option to purchase.
(26) Sell industrial development projects to users or developers,
for consideration to be paid in installments or otherwise.
(27) Make direct loans from the proceeds of the bonds to users or
developers for:
(A) the cost of acquisition, construction, or installation of
industrial development projects, including land, machinery,
equipment, or any combination thereof; or
(B) eligible expenditures for an educational facility project
described in
IC 4-4-10.9-6.2
(a)(2);
with the loans to be secured by the pledge of one (1) or more
bonds, notes, warrants, or other secured or unsecured debt
obligations of the users or developers.
(28) Lend or deposit the proceeds of bonds to or with a lender for
the purpose of furnishing funds to such lender to be used for
making a loan to a developer or user for the financing of industrial
development projects under this chapter.
(29) Enter into agreements with users or developers to allow the
users or developers, directly or as agents for the authority, to
wholly or partially construct industrial development projects to be
leased from or to be acquired by the authority.
(30) Establish reserves from the proceeds of the sale of bonds,
other funds, or both, in the amount determined to be necessary by
the authority to secure the payment of the principal and interest on
the bonds.
(31) Adopt rules governing its activities authorized under this
chapter,
IC 4-4-21
, and
IC 15-7-5.
(32) Use the proceeds of bonds to make guaranteed participating
loans.
(33) Purchase, discount, sell, and negotiate, with or without
guaranty, notes and other evidences of indebtedness.
(34) Sell and guarantee securities.
(35) Make guaranteed participating loans under
IC 4-4-21-26.
(36) Procure insurance to guarantee, insure, coinsure, and
reinsure against political and commercial risk of loss, and any
other insurance the authority considers necessary, including
insurance to secure the payment of principal and interest on notes
or other obligations of the authority.
(37) Provide performance bond guarantees to support eligible
export loan transactions, subject to the terms of this chapter or
IC 4-4-21.
(38) Provide financial counseling services to Indiana exporters.
(39) Accept gifts, grants, or loans from, and enter into contracts
or other transactions with, any federal or state agency,
municipality, private organization, or other source.
(40) Sell, convey, lease, exchange, transfer, or otherwise dispose
of property or any interest in property, wherever the property is
located.
(41) Cooperate with other public and private organizations to
promote export trade activities in Indiana.
(42) Make guarantees and administer the agricultural loan and
rural development project guarantee fund established by
IC 15-7-5.
(43) Take assignments of notes and mortgages and security
agreements securing notes and other forms of security, and attach,
seize, or take title by foreclosure or conveyance to any
agricultural enterprise or rural development project when a
guaranteed loan to the enterprise or rural development project is
clearly in default and when in the opinion of the authority the
acquisition is necessary to safeguard the agricultural loan and
rural development project guarantee fund, and sell, or on a
temporary basis, lease or rent the agricultural enterprise or rural
development project for any use.
(44) Expend money, as the authority considers appropriate, from
the agricultural loan and rural development project guarantee
fund created by
IC 15-7-5-19.5.
(45) Reimburse from bond proceeds expenditures for industrial
development projects under this chapter.
(46) Do any act necessary or convenient to the exercise of the
powers granted by this chapter,
IC 4-4-21
, or
IC 15-7-5
, or
reasonably implied from those statutes, including but not limited
to compliance with requirements of federal law imposed from
time to time for the issuance of bonds.
(b) The authority's powers under this chapter shall be interpreted
broadly to effectuate the purposes of this chapter and may not be
construed as a limitation of powers.
(c) This chapter does not authorize the financing of industrial
development projects for a developer unless any written agreement that
may exist between the developer and the user at the time of the bond
resolution is fully disclosed to and approved by the authority.
SOURCE: IC 4-4-11-17; (01)IN1421.1.4. -->
SECTION 4.
IC 4-4-11-17
, AS AMENDED BY P.L.273-1999,
SECTION 196, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 17. (a) The authority may enter
into negotiations with one (1) or more persons concerning the terms
and conditions of financing agreements for industrial development
projects. The authority shall consider whether a proposed industrial
development project may have an adverse competitive effect on similar
industrial development projects already constructed or operating in the
local governmental unit where the industrial development project will
be located. Preliminary expenses in connection with negotiations under
this section may be paid from:
(1) money furnished by the proposed user or developer;
(2) money made available by the state or federal government, or
by any of their departments or agencies; or
(3) money of the authority, exclusive of the industrial
development project guaranty fund.
(b) The authority shall prepare a report that:
(1) briefly describes the proposed industrial development project;
(2) estimates the number and expense of public works or services
that would be made necessary or desirable by the proposed
industrial development project, including public ways, schools,
water, sewers, street lights, and fire protection;
(3) estimates the total costs of the proposed industrial
development project;
(4) for an industrial development project that is not exclusively
either a pollution control facility or an educational facility project,
estimates the number of jobs and the payroll to be created or
saved by the project;
(5) for pollution control facilities, describes the facilities and how
they will abate, reduce, or prevent pollution;
(6) for educational facility projects, describes
the facilities and
how the
facilities promote project promotes the educational
enrichment (including cultural, intellectual, scientific, or artistic
opportunities) of the people of the state; and
(7) for child care facility projects, describes the facilities and how
the facilities promote accessibility to and increased options for
child care for the people of the state.
The report shall be submitted to the executive director or chairman of
the plan commission, if any, having jurisdiction over the industrial
development project and, if the number of new jobs estimated exceeds
one hundred (100), to the superintendent of the school corporation
where the industrial development project will be located. The executive
director or chairman of the plan commission and the school
superintendent may formulate their written comments concerning the
report and transmit their comments, if any, to the authority within five
(5) days from the receipt of the report.
(c) The authority shall hold a public hearing, which may be
conducted by the authority, or any officer, member, or agent designated
thereby, on the proposed financing agreement for the industrial
development project, after giving notice by publication in one (1)
newspaper of general circulation in the city, town, or county where the
industrial development project is to be located at least ten (10) days in
advance of this public hearing.
(d) If the authority finds that the industrial development project will
be of benefit to the health, safety, morals, and general welfare of the
area where the industrial development project is to be located, and
complies with the purposes and provisions of this chapter, it may by
resolution approve the proposed financing agreement. This resolution
may also authorize the issuance of bonds payable solely from revenues
and receipts derived from the financing agreement or from payments
made under an agreement to guarantee obligations of the developer, a
user, a related person, or the authority by a developer, a user, a related
person thereto, or the authority pursuant to the industrial development
project guaranty fund. The bonds are not in any respect a general
obligation of the state, nor are they payable in any manner from
revenues raised by taxation.
(e) A financing agreement approved under this section must provide
for payments in an amount sufficient to pay the principal of, premium,
if any, and interest on the bonds authorized for the financing of the
industrial development project. However, interest payments for the
anticipated construction period, plus a period of not more than one (1)
year, may be funded in the bond issue. The term of a financing
agreement may not exceed fifty (50) years from the date of any bonds
issued under the financing agreement. However, a financing agreement
does not terminate after fifty (50) years if a default under that financing
agreement remains uncured, unless the termination is authorized by the
terms of the financing agreement. If the authority retains an interest in
the industrial development project, the financing agreement must
require the user or the developer to pay all costs of maintenance, repair,
taxes, assessments, insurance premiums, trustee's fees, and any other
expenses relating to the industrial development projects, so that the
authority will not incur any expenses on account of the industrial
development projects other than those that are covered by the payments
provided for in the financing agreement.
SOURCE: ; (01)IN1421.1.5. -->
SECTION 5.
An emergency is declared for this act.