February 8, 2005





SENATE BILL No. 571

_____


DIGEST OF SB 571 (Updated February 7, 2005 11:37 am - DI 113)



Citations Affected: IC 36-1; IC 36-7.

Synopsis: Multi-jurisdictional economic development. Authorizes various economic development entities to enter into written agreements for jointly undertaken economic development projects.

Effective: July 1, 2005.





Simpson, Ford, Hume




    January 20, 2005, read first time and referred to Committee on Economic Development and Technology.
    February 7, 2005, reported favorably _ Do Pass.






February 8, 2005

First Regular Session 114th General Assembly (2005)


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 2004 Regular Session of the General Assembly.

SENATE BILL No. 571



    A BILL FOR AN ACT to amend the Indiana Code concerning economic development.

Be it enacted by the General Assembly of the State of Indiana:

SOURCE: IC 36-1-7-15; (05)SB0571.1.1. -->         SECTION 1. IC 36-1-7-15 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 15. (a) This section applies only to political subdivisions in the following:
        (1) A city having a population of more than ninety thousand (90,000) but less than one hundred five thousand (105,000).
        (2) A county having a population of more than one hundred five thousand (105,000) but less than one hundred ten thousand (110,000).
        (3) A county having a population of more than three hundred thousand (300,000) but less than four hundred thousand (400,000).
    (b) (a) As used in this section, "economic development entity" means a department of redevelopment organized under IC 36-7-14, a department of metropolitan development under IC 36-7-15.1, a port authority organized under IC 8-10-5, or an airport authority organized under IC 8-22-3.
    (c) (b) Notwithstanding section 2 of this chapter, two (2) or more

economic development entities may enter into a written agreement under section 3 of this chapter if the agreement is requested by the executive of a city or county described in subsection (a) and if the agreement is approved by each entity's governing body. and by the executive of a city or county described in subsection (a).
    (d) (c) A party to an agreement under this section may do one (1) or more of the following:
        (1) Except as provided in subsection (e), (d), grant one (1) or more of its powers to another party to the agreement.
        (2) Exercise any power granted to it by a party to the agreement.
        (3) Pledge any of its revenues, including taxes or allocated taxes under IC 36-7-14, IC 36-7-15.1, or IC 8-22-3.5, to the bonds or lease rental obligations of another party to the agreement under IC 5-1-14-4.
    (e) (d) An economic development entity may not grant to another entity the power to tax or to establish an allocation area under IC 8-22-3.5, or IC 36-7-14-39, or IC 36-7-15.1.
    (f) (e) An agreement under this section does not have to comply with section 3(a)(5) or 4 of this chapter.
    (g) (f) An action to challenge the validity of an agreement under this section must be brought within thirty (30) days after the agreement has been approved by all the parties to the agreement. After that period has passed, the agreement is not contestable for any cause.

SOURCE: IC 36-7-13-4; (05)SB0571.1.2. -->     SECTION 2. IC 36-7-13-4 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 4. (a) To provide money for the purposes set forth in section 3 of this chapter, the unit shall create a special revolving fund to be known as the industrial development fund, into which any available and unappropriated money of the unit may be transferred by the unit's legislative body.
    (b) The legislative body may also by ordinance levy a tax not to exceed one and sixty-seven hundredths cents ($0.0167) on each one hundred dollars ($100) of assessed value of all personal and real property within its jurisdiction. The proceeds of this tax shall be deposited in the industrial development fund. The unit may collect the tax as other municipal or county taxes are collected, or may set up a system for the collection and enforcement of the tax in the unit. The proceeds of the tax Money in the industrial development fund may be used for any purpose authorized by this chapter and may be pledged for the payment of principal and interest on bonds or other obligation obligations issued under this chapter.
SOURCE: IC 36-7-13-21; (05)SB0571.1.3. -->     SECTION 3. IC 36-7-13-21 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY

1, 2005]: Sec. 21. (a) Two (2) or more:
        (1) advisory commissions; or
        (2) legislative bodies;
or any combination of advisory commissions and legislative bodies may enter into a written agreement under this section to jointly undertake economic development projects.
    (b) A party to an agreement under this section may do one (1) or more of the following:
        (1) Except as provided in subsection (c), grant one (1) or more of its powers to another party to the agreement.
        (2) Exercise any power granted to it by a party to the agreement.
        (3) Pledge any of its revenues to the bonds or lease rental obligations of another party to the agreement under IC 5-1-14-4.
    (c) A party to an agreement under this section may not grant another party to the agreement the power to tax or to establish a district under this chapter.
    (d) An action to challenge the validity of an agreement under this section must be brought not more than thirty (30) days after the agreement has been approved by all the parties to the agreement. After that period has passed, the agreement is not contestable for any cause.

SOURCE: IC 36-7-13-22; (05)SB0571.1.4. -->     SECTION 4. IC 36-7-13-22 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 22. An agreement described in section 21 of this chapter must provide for the following:
        (1) The duration of the agreement.
        (2) The purpose of the agreement.
        (3) The manner of financing, staffing, and supplying the joint undertaking and of establishing and maintaining a budget for the joint undertaking.
        (4) The methods that may be employed in accomplishing the partial or complete termination of the agreement and for disposing of property upon partial or complete termination of the agreement.
        (5) The manner of acquiring, holding, and disposing of real and personal property used in the joint undertaking.
        (6) Any other appropriate matters.

SOURCE: IC 36-7-32-23; (05)SB0571.1.5. -->     SECTION 5. IC 36-7-32-23 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 23. (a) Each redevelopment commission that establishes a certified technology park

under this chapter shall establish a certified technology park fund to receive:
        (1) property tax proceeds allocated under section 17 of this chapter; and
        (2) money distributed to the redevelopment commission under section 22 of this chapter.
    (b) Money deposited in the certified technology park fund may be used by the redevelopment commission only for one (1) or more of the following purposes:
        (1) Acquisition, improvement, preparation, demolition, disposal, construction, reconstruction, remediation, rehabilitation, restoration, preservation, maintenance, repair, furnishing, and equipping of public facilities.
        (2) Operation of public facilities described in section 9(2) of this chapter.
        (3) Payment of the principal of and interest on any obligations that are payable solely or in part from money deposited in the fund and that are incurred by the redevelopment commission for the purpose of financing or refinancing the development of public facilities in the certified technology park.
        (4) Establishment, augmentation, or restoration of the debt service reserve for obligations described in subdivision (3).
        (5) Payment of the principal of and interest on bonds issued by the unit to pay for public facilities in or serving the certified technology park.
        (6) Payment of premiums on the redemption before maturity of bonds described in subdivision (3).
        (7) Payment of amounts due under leases payable from money deposited in the fund.
        (8) Reimbursement to the unit for expenditures made by it for public facilities in or serving the certified technology park.
        (9) Payment of expenses incurred by the redevelopment commission for public facilities that are in the certified technology park or serving the certified technology park.
         (10) For any purpose authorized by an agreement between redevelopment commissions entered into under section 26 of this section.
    (c) The certified technology park fund may not be used for operating expenses of the redevelopment commission.

SOURCE: IC 36-7-32-26; (05)SB0571.1.6. -->     SECTION 6. IC 36-7-32-26 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 26. (a) Two (2) or more redevelopment commissions

may enter into a written agreement under this section to jointly undertake economic development projects in the certified technology parks established by the redevelopment commissions that are parties to the agreement.
    (b) A party to an agreement under this section may do one (1) or more of the following:
        (1) Except as provided in subsection (c), grant one (1) or more of its powers to another party to the agreement.
        (2) Exercise any power granted to it by a party to the agreement.
        (3) Pledge any of its revenues, including taxes or allocated taxes under section 17 of this chapter, to the bonds or lease rental obligations of another party to the agreement under IC 5-1-14-4.
    (c) A redevelopment commission may not grant to another redevelopment commission the power to tax or to establish an allocation area under this chapter.
    (d) An action to challenge the validity of an agreement under this section must be brought not more than thirty (30) days after the agreement has been approved by all the parties to the agreement. After that period has passed, the agreement is not contestable for any cause.

SOURCE: IC 36-7-32-27; (05)SB0571.1.7. -->     SECTION 7. IC 36-7-32-27 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 27. An agreement described in section 26 of this chapter must provide for the following:
        (1) The duration of the agreement.
        (2) The purpose of the agreement.
        (3) The manner of financing, staffing, and supplying the joint undertaking and of establishing and maintaining a budget for the joint undertaking.
        (4) The methods that may be employed in accomplishing the partial or complete termination of the agreement and for disposing of property upon partial or complete termination of the agreement.
        (5) The manner of acquiring, holding, and disposing of real and personal property used in the joint undertaking.
        (6) Any other appropriate matters.