Delete the title and insert the following:
A BILL FOR AN ACT to amend the Indiana Code concerning
transportation and to make an appropriation.
members of the house of representatives and by at least
seventy-five percent (75%) of the members of the senate.".
Page 13, line 22, after "pay" insert ":
(1) for the calendar years 2006 and 2007,".
Page 13, line 24, beginning with "(1)", begin a new line double
block indented.
Page 13, line 24, strike "(1)" and insert " (A)".
Page 13, line 25, beginning with "(2)", begin a new line double
block indented.
Page 13, line 25, strike "(2)" and insert " (B)".
Page 13, line 28, after "IC 36-7.5-4-1" delete ". A payment required
by this".
Page 13, line 29, delete "subsection may be made".
Page 13, line 30, after "IC 8-15.5-11" delete "." and insert " ; and
(2) for each of the calendar years 2008 through 2015, an
amount equal to ten million dollars ($10,000,000) to the
development authority fund established under IC 36-7.5-4-1
from the toll road fund in accordance with IC 8-15.5-11.".
Page 13, between lines 35 and 36, begin a new paragraph and insert:
JULY 1, 2006]:
ARTICLE 7.6. NORTHEAST INDIANA REGIONAL
DEVELOPMENT AUTHORITY
Chapter 1. Definitions
Sec. 1. Except as otherwise provided, the definitions in this
chapter apply throughout this article.
Sec. 2. "Airport authority" refers to an airport authority
established under IC 8-22-3.
Sec. 3. "Airport authority project" means a project that can be
financed with the proceeds of bonds issued by an airport authority
under IC 8-22-3.
Sec. 4. "Bonds" means bonds, notes, or other evidences of
indebtedness issued by the development authority.
Sec. 5. "Development authority" refers to the northeast Indiana
regional development authority established by IC 36-7.6-2-1.
Sec. 6. "Development board" refers to the governing body
appointed under IC 36-7.6-2-3.
Sec. 7. "Economic development project" means an economic
development project described in IC 6-3.5-7-13.1(c).
Sec. 8. "Eligible county" refers to the following counties:
(1) A county having a population of more than one hundred
eighty-two thousand seven hundred ninety (182,790) but less
than two hundred thousand (200,000).
(2) A county having a population of more than thirty-four
thousand nine hundred (34,900) but less than thirty-four
thousand nine hundred fifty (34,950).
(3) A county having a population of more than thirty-three
thousand two hundred (33,200) but less than thirty-three
thousand six hundred (33,600).
Sec. 9. "Eligible political subdivision" means the following:
(1) An airport authority.
(2) A regional transportation authority.
Sec. 10. "Project" means an airport authority project, an
economic development project, or a regional transportation
authority project.
Sec. 11. "Regional transportation authority" means a regional
transportation authority established under IC 36-9-3-2.
Sec. 12. "Regional transportation authority project" means a
project that can be financed with the proceeds of bonds issued by
a regional transportation authority under IC 36-9-3.
Chapter 2. Development Authority and Board
Sec. 1. The northeast Indiana regional development authority is
established as a separate body corporate and politic to carry out
the purposes of this article by:
(1) acquiring, constructing, equipping, owning, leasing, and
financing projects and facilities for lease to or for the benefit
of eligible political subdivisions under this article; and
(2) funding and developing airport authority projects and
services, regional transportation authority projects and
services, and economic development projects in the eligible
counties.
Sec. 2. The development authority may carry out its powers and
duties under this article in an eligible county.
Sec. 3. (a) The development authority is governed by the
development board appointed under this section.
(b) The development board is composed of the following nine (9)
members:
(1) Three (3) members appointed by the governor.
(2) The following members from a county having a population
of more than one hundred eighty-two thousand seven hundred
ninety (182,790) but less than two hundred thousand
(200,000):
(A) One (1) member appointed by the county executive.
(B) One (1) member appointed by county fiscal body.
(3) The following members from a county having a population
of more than thirty-four thousand nine hundred (34,900) but
less than thirty-four thousand nine hundred fifty (34,950):
(A) One (1) member appointed by the county executive.
(B) One (1) member appointed by the county fiscal body.
(4) The following members from a county having a county
having a population of more than thirty-three thousand two
hundred (33,200) but less than thirty-three thousand six
hundred (33,600):
(A) One (1) member appointed by the county executive.
(B) One (1) member appointed by the county fiscal body.
(c) A member appointed to the development board must have
knowledge of and at least five (5) years professional work
experience in at least one (1) of the following:
(1) Air transportation.
(2) Regional transportation development.
(3) Regional economic development.
(4) Business or finance.
(d) An individual or entity required to make an appointment
under subsection (b) must make the initial appointment before
September 1, 2006. If an individual or entity does not make an
initial appointment under subsection (b) before September 1, 2006,
the governor shall instead make the initial appointment.
Sec. 4. (a) Except as provided in subsection (b) for the initial
appointments to the development board, a member appointed to
the development board serves a four (4) year term. However, a
member serves at the pleasure of the appointing authority. A
member may be reappointed to subsequent terms.
(b) The terms of the initial members appointed to the
development board are as follows:
(1) Each initial member appointed by the governor shall serve
a term of four (4) years.
(2) The initial member appointed under section 3(b)(2)(A) of
this chapter shall serve a term of three (3) years.
(3) The initial member appointed under section 3(b)(3)(A) of
this chapter shall serve a term of three (3) years.
(4) The initial member appointed under section 3(b)(2)(B) of
this chapter shall serve a term of two (2) years.
(5) The initial member appointed under section 3(b)(3)(B) of
this chapter shall serve a term of two (2) years.
(c) If a vacancy occurs on the development board, the
appointing authority that made the initial appointment shall fill the
vacancy by appointing a new member for the remainder of the
vacated term.
(d) Each member appointed to the development board, before
entering upon the duties of office, must take and subscribe an oath
of office under IC 5-4-1, which shall be endorsed upon the
certificate of appointment and filed with the records of the
development board.
(e) A member appointed to the development board is not entitled
to receive any compensation for performance of the member's
duties. However, a member is entitled to a per diem from the
development authority for the member's participation in
development board meetings. The amount of the per diem is equal
to the amount of the per diem provided under IC 4-10-11-2.1(b).
Sec. 5. (a) The governor shall designate a member of the
development board appointed by the governor to serve as chair of
the development board until January 2013. At the election under
subsection (b) in 2013 and each year thereafter, the chair shall be
elected from among the members of the development board.
(b) In January of each year, the development board shall hold
an organizational meeting at which the development board shall
elect the following officers from the members of the development
board:
(1) After December 31, 2012, a chair.
(2) A vice chair.
(3) A secretary-treasurer.
(c) Not more than two (2) members from any particular county
may serve as an officer described in subsection (a) or elected under
subsection (b). The affirmative vote of at least five (5) members of
the development board is necessary to elect an officer under
subsection (b).
otherwise be subject to IC 5-22, the eligible political subdivision or
its purchasing agent must obtain or cause to be obtained a
purchase price for the property to be subject to the lease from the
lowest responsible and responsive bidder in accordance with the
requirements for the purchase of supplies under IC 5-22.
(b) In addition to the provisions of subsection (a), with respect
to projects undertaken by the development authority, the
development authority shall set a goal for participation by minority
business enterprises of fifteen percent (15%) and women's business
enterprises of five percent (5%), consistent with the goals of
delivering the project on time and within the budgeted amount
and, insofar as possible, using Indiana businesses for employees,
goods, and services. In fulfilling the goals under this subsection, the
authority shall take into account historical precedents in the same
market.
Sec. 9. The office of management and budget shall contract with
a certified public accountant for an annual financial audit of the
development authority. The certified public accountant may not
have a significant financial interest, as determined by the office of
management and budget, in a project, facility, or service funded by
or leased by or to the development authority. The certified public
accountant shall present an audit report not later than four (4)
months after the end of the development authority's fiscal year and
shall make recommendations to improve the efficiency of
development authority operations. The certified public accountant
shall also perform a study and evaluation of internal accounting
controls and shall express an opinion on the controls that were in
effect during the audit period. The development authority shall pay
the cost of the annual financial audit. In addition, the state board
of accounts may at any time conduct an audit of any phase of the
operations of the development authority. The development
authority shall pay the cost of any audit by the state board of
accounts.
Chapter 3. Development Authority Powers and Duties
Sec. 1. The development authority shall do the following:
(1) Assist in the coordination of local efforts concerning
projects.
(2) Assist an airport authority and a regional transportation
authority in coordinating regional transportation and
economic development efforts.
(3) Fund projects as provided in this article.
Sec. 2. (a) The development authority may do any of the
following:
(1) Finance, improve, construct, reconstruct, renovate,
purchase, lease, acquire, and equip land and projects located
in an eligible county.
(2) Lease land or a project to an eligible political subdivision.
(3) Finance and construct additional improvements to projects
or other capital improvements owned by the development
authority and lease them to or for the benefit of an eligible
political subdivision.
(4) Acquire land or all or a part of one (1) or more projects
from an eligible political subdivision by purchase or lease and
lease the land or projects back to the eligible political
subdivision, with any additional improvements that may be
made to the land or projects.
(5) Acquire all or a part of one (1) or more projects from an
eligible political subdivision by purchase or lease to fund or
refund indebtedness incurred on account of the projects to
enable the eligible political subdivision to make a savings in
debt service obligations or lease rental obligations or to obtain
relief from covenants that the eligible political subdivision
considers to be unduly burdensome.
(6) Make loans, loan guarantees, and grants or provide other
financial assistance to or on behalf of an airport authority or
a regional transportation authority.
(7) Provide funding to assist an airport authority located in an
eligible county in the construction, reconstruction, renovation,
purchase, lease, acquisition, and equipping of an airport
facility or airport project.
(8) Provide funding for economic development projects in an
eligible county.
(9) Hold, use, lease, rent, purchase, acquire, and dispose of by
purchase, exchange, gift, bequest, grant, condemnation, lease,
or sublease, on the terms and conditions determined by the
development authority, any real or personal property located
in an eligible county.
(10) After giving notice, enter upon any lots or lands for the
purpose of surveying or examining them to determine the
location of a project.
(11) Make or enter into all contracts and agreements
necessary or incidental to the performance of the development
authority's duties and the execution of the development
authority's powers under this article.
(12) Sue, be sued, plead, and be impleaded.
(13) Design, order, contract for, construct, reconstruct, and
renovate a project or improvements to a project.
(14) Appoint an executive director and employ appraisers,
real estate experts, engineers, architects, surveyors, attorneys,
accountants, auditors, clerks, construction managers, and any
consultants or employees that are necessary or desired by the
development authority in exercising its powers or carrying out
its duties under this article.
(15) Accept loans, grants, and other forms of financial
assistance from the federal government, the state government,
a political subdivision, or any other public or private source.
(16) Use the development authority's funds to match federal
grants or make loans, loan guarantees, or grants to carry out
the development authority's powers and duties under this
article.
(17) Except as prohibited by law, take any action necessary to
carry out this article.
(b) If the development authority is unable to agree with the
owners, lessees, or occupants of any real property selected for the
purposes of this article, the development authority may proceed
under IC 32-24-1 to procure the condemnation of the property. The
development authority may not institute a proceeding until it has
adopted a resolution that:
(1) describes the real property sought to be acquired and the
purpose for which the real property is to be used;
(2) declares that the public interest and necessity require the
acquisition by the development authority of the property
involved; and
(3) sets out any other facts that the development authority
considers necessary or pertinent.
The resolution is conclusive evidence of the public necessity of the
proposed acquisition.
Sec. 3. The development authority shall before November 1 of
each year issue a report to the legislative council, the budget
committee, and the governor concerning the operations and
activities of the development authority during the preceding state
fiscal year. The report to the legislative council must be in an
electronic format under IC 5-14-6.
Sec. 4. (a) The development authority shall prepare a
comprehensive strategic development plan that includes detailed
information concerning the following:
(1) The proposed projects to be undertaken or financed by the
development authority.
(2) The following information for each project included under
subdivision (1):
(A) Timeline and budget.
(B) The return on investment.
(C) The projected or expected need for an ongoing subsidy.
(D) Any projected or expected federal matching funds.
(b) The development authority shall before January 1, 2009,
submit the comprehensive strategic development plan for review by
the budget committee and approval by the director of the office of
management and budget.
Chapter 4. Financing; Issuance of Bonds; Leases
Sec. 1. (a) The development board shall establish and administer
a development authority fund.
(b) The development authority fund consists of the following:
(1) Amounts distributed under IC 8-15-2-14.8.
(2) Funds received from the federal government.
(3) Appropriations to the fund by the general assembly.
(4) Other local revenue appropriated to the fund by a political
subdivision.
(5) Gifts, donations, and grants to the fund.
(c) The development authority fund shall be administered by the
development authority.
(d) Money in the development authority fund shall be used by
the development authority to carry out this article and does not
revert to any other fund.
Sec. 2. (a) Subject to subsection (h), the development authority
may issue bonds for the purpose of obtaining money to pay the cost
of:
(1) acquiring real or personal property, including existing
capital improvements;
(2) acquiring, constructing, improving, reconstructing, or
renovating one (1) or more projects; or
(3) funding or refunding bonds issued under this chapter,
IC 8-22-3, IC 36-9-3, or prior law.
(b) The bonds are payable solely from:
(1) the lease rentals from the lease of the projects for which
the bonds were issued, insurance proceeds, and any other
funds pledged or available; and
(2) except as otherwise provided by law, revenue received by
the development authority and amounts deposited in the
development authority fund.
(c) The bonds must be authorized by a resolution of the
development board.
(d) The terms and form of the bonds must either be set out in
the resolution or in a form of trust indenture approved by the
resolution.
(e) The bonds must mature within forty (40) years.
(f) The board shall sell the bonds only to the Indiana finance
authority established by IC 4-4-11-4 upon the terms determined by
the development board and the Indiana finance authority.
(g) All money received from any bonds issued under this chapter
shall be applied solely to the payment of the cost of acquiring,
constructing, improving, reconstructing, or renovating one (1) or
more projects, or the cost of refunding or refinancing outstanding
bonds, for which the bonds are issued. The cost may include:
(1) planning and development of equipment or a facility and
all buildings, facilities, structures, equipment, and
improvements related to the facility;
(2) acquisition of a site and clearing and preparing the site for
construction;
(3) equipment, facilities, structures, and improvements that
are necessary or desirable to make the project suitable for use
and operations;
(4) architectural, engineering, consultant, and attorney's fees;
(5) incidental expenses in connection with the issuance and
sale of bonds;
(6) reserves for principal and interest;
(7) interest during construction;
(8) financial advisory fees;
(9) insurance during construction;
(10) municipal bond insurance, debt service reserve insurance,
letters of credit, or other credit enhancement; and
(11) in the case of refunding or refinancing, payment of the
principal of, redemption premiums (if any) for, and interest
on the bonds being refunded or refinanced.
(h) The development authority may not issue bonds under this
article unless the development authority first finds that each
contract for the construction of a facility and all buildings,
facilities, structures, and improvements related to that facility to be
financed in whole or in part through the issuance of the bonds
requires payment of the common construction wage required by
IC 5-16-7.
Sec. 3. This chapter contains full and complete authority for the
issuance of bonds. No law, procedure, proceedings, publications,
notices, consents, approvals, orders, or acts by the development
board or any other officer, department, agency, or instrumentality
of the state or of any political subdivision is required to issue any
bonds, except as prescribed in this article.
Sec. 4. (a) The development authority may secure bonds issued
under this chapter by a trust indenture between the development
authority and a corporate trustee, which may be any trust
company or national or state bank in Indiana that has trust
powers.
(b) The trust indenture may:
(1) pledge or assign revenue received by the development
authority, amounts deposited in the development authority
fund, and lease rentals, receipts, and income from leased
projects, but may not mortgage land or projects;
(2) contain reasonable and proper provisions for protecting
and enforcing the rights and remedies of the bondholders,
including covenants setting forth the duties of the
development authority and development board;
(3) set forth the rights and remedies of bondholders and
trustees; and
(4) restrict the individual right of action of bondholders.
(c) Any pledge or assignment made by the development
authority under this section is valid and binding in accordance with
IC 5-1-14-4 from the time that the pledge or assignment is made,
against all persons whether they have notice of the lien or not. Any
trust indenture by which a pledge is created or an assignment made
need not be filed or recorded. The lien is perfected against third
parties in accordance with IC 5-1-14-4.
Sec. 5. (a) Bonds issued under IC 8-22-3, IC 36-9-3, or prior law
may be refunded as provided in this section.
(b) An eligible political subdivision may:
(1) lease all or a part of land or a project or projects to the
development authority, which may be at a nominal lease
rental with a lease back to the eligible political subdivision,
conditioned upon the development authority assuming bonds
issued under IC 8-22-3, IC 36-9-3, or prior law and issuing its
bonds to refund those bonds; and
(2) sell all or a part of land or a project or projects to the
development authority for a price sufficient to provide for the
refunding of those bonds and lease back the land or project or
projects from the development authority.
Sec. 6. (a) Before a lease may be entered into by an eligible
political subdivision under this chapter, the eligible political
subdivision must find that the lease rental provided for is fair and
reasonable.
(b) A lease of land or a project from the development authority
to an eligible political subdivision:
(1) may not have a term exceeding forty (40) years;
(2) may not require payment of lease rentals for a newly
constructed project or for improvements to an existing project
until the project or improvements to the project have been
completed and are ready for occupancy or use;
(3) may contain provisions:
(A) allowing the eligible political subdivision to continue to
operate an existing project until completion of the
acquisition, improvements, reconstruction, or renovation
of that project or any other project; and
(B) requiring payment of lease rentals for land, for an
existing project being used, reconstructed, or renovated, or
for any other existing project;
(4) may contain an option to renew the lease for the same or
a shorter term on the conditions provided in the lease;
(5) must contain an option for the eligible political subdivision
to purchase the project upon the terms stated in the lease
during the term of the lease for a price equal to the amount
required to pay all indebtedness incurred on account of the
project, including indebtedness incurred for the refunding of
that indebtedness;
(6) may be entered into before acquisition or construction of
a project;
(7) may provide that the eligible political subdivision shall
agree to:
(A) pay any taxes and assessments on the project;
(B) maintain insurance on the project for the benefit of the
development authority;
(C) assume responsibility for utilities, repairs, alterations,
and any costs of operation; and
(D) pay a deposit or series of deposits to the development
authority from any funds legally available to the eligible
political subdivision before the commencement of the lease
to secure the performance of the eligible political
subdivision's obligations under the lease; and
(8) must provide that the lease rental payments by the eligible
political subdivision shall be made from the development
authority fund established under section 1 of this chapter and
may provide that the lease rental payments by the eligible
political subdivision shall be made from:
(A) net revenues of the project;
(B) any other funds available to the eligible political
subdivision; or
(C) both sources described in clauses (A) and (B).
Sec. 7. This chapter contains full and complete authority for
leases between the development authority and an eligible political
subdivision. No law, procedure, proceedings, publications, notices,
consents, approvals, orders, or acts by the development authority
or the eligible political subdivision or any other officer,
department, agency, or instrumentality of the state or any political
subdivision is required to enter into any lease, except as prescribed
in this article.
Sec. 8. If the lease provides for a project or improvements to a
project to be constructed by the development authority, the plans
and specifications shall be submitted to and approved by all
agencies designated by law to pass on plans and specifications for
public buildings.
Sec. 9. The development authority and an eligible political
subdivision may enter into common wall (party wall) agreements
or other agreements concerning easements or licenses. These
agreements shall be recorded with the recorder of the county in
which the project is located.
Sec. 10. (a) An eligible political subdivision may lease for a
nominal lease rental, or sell to the development authority, one (1)
or more projects or parts of a project or land upon which a project
is located or is to be constructed.
(b) Any lease of all or a part of a project by an eligible political
subdivision to the development authority must be for a term equal
to the term of the lease of that project back to the eligible political
subdivision.
(c) An eligible political subdivision may sell property to the
development authority for the amount the eligible political
subdivision determines to be in the best interest of the eligible
political subdivision. The development authority may pay that
amount from the proceeds of bonds of the development authority.
Sec. 11. If an eligible political subdivision exercises its option to
purchase leased property, the eligible political subdivision may
issue its bonds as authorized by statute.
Sec. 12. (a) All:
(1) property owned by the development authority;
(2) revenues of the development authority; and
(3) bonds issued by the development authority, the interest on
the bonds, the proceeds received by a holder from the sale of
bonds to the extent of the holder's cost of acquisition, proceeds
received upon redemption before maturity, proceeds received
at maturity, and the receipt of interest in proceeds;
are exempt from taxation in Indiana for all purposes except the
financial institutions tax imposed under IC 6-5.5 or a state
inheritance tax imposed under IC 6-4.1.
(b) All securities issued under this chapter are exempt from the
registration requirements of IC 23-2-1 and other securities
registration statutes.
Sec. 13. Bonds issued under this chapter are legal investments
for private trust funds and the funds of banks, trust companies,
insurance companies, building and loan associations, credit unions,
savings banks, private banks, loan and trust and safe deposit
companies, rural loan and savings associations, guaranty loan and
savings associations, mortgage guaranty companies, small loan
companies, industrial loan and investment companies, and other
financial institutions organized under Indiana law.
Sec. 14. An action to contest the validity of bonds to be issued
under this chapter may not be brought after the time limitations set
forth in IC 5-1-14-13.
Sec. 15. The general assembly covenants that it will not:
(1) repeal or amend this article in a manner that would
adversely affect owners of outstanding bonds, or the payment
of lease rentals, secured by the amounts pledged under this
chapter; or
(2) in any way impair the rights of owners of bonds of the
development authority, or the owners of bonds secured by
lease rentals, secured by a pledge of revenues under this
chapter.".