Citations Affected: IC 4-4; IC 4-22; IC 8-14; IC 8-15; IC 8-15.5;
IC 8-15.7; IC 8-23; IC 9-13; IC 9-21; IC 34-13; IC 36-7.6; noncode.
January 10, 2006, read first time and referred to Committee on Ways and Means.
January 25, 2006, amended, reported _ Do Pass; Roll Call 42: yeas 50, nays 46.
January 31, 2006, read second time, amended, ordered engrossed.
Provides that the public-private agreements may be for any combination of the planning, acquisition, construction, improvement, extension, operation, repair, maintenance, and financing of projects. Provides that a public-private agreement is subject to the approval of the governor after review by the budget committee. Establishes procedures for selection of operators by the authority. Permits the authority to establish user fees and tolls, including maximum tolls and user fees and criteria for the adjustment of those maximums. Provides that, with the approval of the budget director after review by the budget committee, a public-private agreement may include a moral obligation of the state to pay certain costs incurred under the agreement. Provides that a public-private agreement may include provisions concerning electronic toll collection systems and photo or video based toll collection enforcement systems. Authorizes the authority to adopt emergency rules concerning user fees under a public-private agreement and enforcement procedures and assessments for failure to pay required tolls, including electronic and photo or video based collection enforcement. Provides that certain payments required to be made to the northwest Indiana regional development authority (RDA) upon the sale or lease of the Indiana toll road may be made from the state general fund or the proceeds of a public-private agreement (current law provides for payment only from the state general fund). Provides that property leased or acquired by an operator for a public-private project is exempt from property taxes. Provides that an operator's income from a public-private agreement is subject to taxation in the same manner as income received by other private entities. Provides that revenues from a public-private agreement with respect to a toll road shall be deposited in the toll road fund and used to: (1) retire certain outstanding bonds and pay amounts owed by the authority with respect to a public-private agreement; (2) fund projects identified in the department of transportation (INDOT) long range comprehensive transportation plan; (3) fund roads, bridges, public transit facilities and equipment, airports, and other projects designed to facilitate the movement of people, goods, services, and information in the counties that are traversed by a toll road project and the cities and towns in those counties; and (4) fund distributions to the RDA or fund other projects authorized to be undertaken by RDA under existing law. Provides that money remaining in the toll road fund after all other required distributions shall be transferred to the major moves construction fund. Provides for the distribution of revenues from a public-private agreement with respect to a tollway to the major moves construction fund, to the state highway fund, to INDOT for use on other projects designated by INDOT, or to the operator, the authority, or INDOT for debt reduction. Prohibits the operator under a public-private agreement or a person having an interest in the operator from making political contributions to state, local, or legislative candidates or certain political committees. Makes technical corrections and conforming amendments. Validates any action taken with respect to public-private agreements entered into by the authority before the effective date of this bill that would have been valid under this bill. Requires the state board of accounts to audit the accounts and records concerning the operation of each toll road project by the authority for each state fiscal year beginning after June 30, 1996, and ending before July 1, 2006.
A BILL FOR AN ACT to amend the Indiana Code concerning
transportation and to make an appropriation.
under IC 34-55-10-2.5.
(30) A rule adopted by the Indiana finance authority:
(A) under IC 8-15.5-7 approving user fees (as defined in
IC 8-15.5-2-10) provided for in a public-private agreement
under IC 8-15.5;
(B) under IC 8-15-2-17.2(a)(10):
(i) establishing enforcement procedures; and
(ii) making assessments for failure to pay required tolls;
or
(C) to make other changes to existing rules related to a toll
road project to accommodate the provisions of a
public-private agreement under IC 8-15.5.
(b) The following do not apply to rules described in subsection (a):
(1) Sections 24 through 36 of this chapter.
(2) IC 13-14-9.
(c) After a rule described in subsection (a) has been adopted by the
agency, the agency shall submit the rule to the publisher for the
assignment of a document control number. The agency shall submit the
rule in the form required by section 20 of this chapter and with the
documents required by section 21 of this chapter. The publisher shall
determine the number of copies of the rule and other documents to be
submitted under this subsection.
(d) After the document control number has been assigned, the
agency shall submit the rule to the secretary of state for filing. The
agency shall submit the rule in the form required by section 20 of this
chapter and with the documents required by section 21 of this chapter.
The secretary of state shall determine the number of copies of the rule
and other documents to be submitted under this subsection.
(e) Subject to section 39 of this chapter, the secretary of state shall:
(1) accept the rule for filing; and
(2) file stamp and indicate the date and time that the rule is
accepted on every duplicate original copy submitted.
(f) A rule described in subsection (a) takes effect on the latest of the
following dates:
(1) The effective date of the statute delegating authority to the
agency to adopt the rule.
(2) The date and time that the rule is accepted for filing under
subsection (e).
(3) The effective date stated by the adopting agency in the rule.
(4) The date of compliance with every requirement established by
law as a prerequisite to the adoption or effectiveness of the rule.
(g) Subject to subsection (h), IC 14-10-2-5, IC 14-22-2-6,
IC 22-8-1.1-16.1, and IC 22-13-2-8(c), and except as provided in
subsections (j), and (k), and (l), a rule adopted under this section
expires not later than ninety (90) days after the rule is accepted for
filing under subsection (e). Except for a rule adopted under subsection
(a)(13), (a)(24), (a)(25), or (a)(27), the rule may be extended by
adopting another rule under this section, but only for one (1) extension
period. The extension period for a rule adopted under subsection
(a)(28) may not exceed the period for which the original rule was in
effect. A rule adopted under subsection (a)(13) may be extended for
two (2) extension periods. Subject to subsection (j), a rule adopted
under subsection (a)(24), (a)(25), or (a)(27) may be extended for an
unlimited number of extension periods. Except for a rule adopted under
subsection (a)(13), for a rule adopted under this section to be effective
after one (1) extension period, the rule must be adopted under:
(1) sections 24 through 36 of this chapter; or
(2) IC 13-14-9;
as applicable.
(h) A rule described in subsection (a)(6), (a)(8), (a)(12), or (a)(29)
expires on the earlier of the following dates:
(1) The expiration date stated by the adopting agency in the rule.
(2) The date that the rule is amended or repealed by a later rule
adopted under sections 24 through 36 of this chapter or this
section.
(i) This section may not be used to readopt a rule under IC 4-22-2.5.
(j) A rule described in subsection (a)(24) or (a)(25) expires not later
than January 1, 2006.
(k) A rule described in subsection (a)(28) expires on the expiration
date stated by the board of the Indiana economic development
corporation in the rule.
(l) A rule described in subsection (a)(30) expires on the
expiration date stated by the Indiana finance authority in the rule.
meaning set forth in IC 8-23-1-41.
Sec. 5. (a) The major moves construction fund is established for
the purpose of:
(1) funding projects under IC 8-15.7 or IC 8-15-3;
(2) funding other projects in the department's transportation
plan; and
(3) funding other highway facilities and transportation
infrastructure considered appropriate by the department.
(b) The authority shall hold, administer, and manage the fund.
(c) Expenses of administering the fund shall be paid from money
in the fund or other sources considered appropriate by the
authority.
(d) The fund consists of the following:
(1) Distributions to the fund from the toll road fund under
IC 8-15.5-11.
(2) Payments made to the authority or the department from
operators under IC 8-15.7.
(3) Appropriations to the fund.
(4) Gifts, grants, loans, bond proceeds, and other money
received for deposit in the fund.
(5) Revenues arising from:
(A) a tollway under IC 8-15-3 or IC 8-23-7-22; or
(B) a toll road under IC 8-15-2 or IC 8-23-7-23;
that the department designates as part of, and deposits in, the
fund.
(6) Interest, premiums, or other earnings on the fund.
(e) Money in the fund shall be deposited, paid, and secured in
the manner provided by IC 4-4-11-32. Notwithstanding IC 5-13,
the authority shall invest the money in the fund that is not needed
to meet the obligations of the fund in the manner provided by an
investment policy established by resolution of the authority.
(f) The fund is not part of the state treasury and is considered
a trust fund for purposes of IC 4-9.1-1-7. Money may not be
transferred, assigned, or otherwise removed from the fund by the
state board of finance, the budget agency, or any other state
agency.
(g) Money in the fund at the end of a state fiscal year does not
revert to the state general fund.
Sec. 6. (a) The authority may distribute money from the fund
for any of the following purposes:
(1) The payment of any obligation incurred or amounts owed
by the authority, the department, or an operator under
IC 8-15-2, IC 8-15-3, IC 8-15.5, or IC 8-15.7 in connection
with the execution and performance of a public-private
agreement under IC 8-15.5 or IC 8-15.7, including
establishing reserves.
(2) Lease payments to the authority.
(3) To the treasurer of state for deposit in the state highway
fund, for the funding of any project in the department's
transportation plan.
(4) The funding of other highway facilities or transportation
infrastructure determined to be appropriate by the
department.
(b) In addition to the distributions permitted by subsection (a),
the authority shall distribute from the fund fifty million dollars
($50,000,000) per year during 2006, 2007, and 2008 to the treasurer
of state for deposit in the motor vehicle highway account
established by IC 8-14-1. Notwithstanding IC 8-14-1, the auditor
of state shall distribute the amounts deposited in the motor vehicle
highway account under this subsection to each of the counties,
cities, and towns eligible to receive a distribution from the motor
vehicle highway account under IC 8-14-1 and in the same
proportion among the counties, cities, and towns as funds are
distributed from the motor vehicle highway account under
IC 8-14-1. Money distributed under this subsection may be used
only for purposes that money distributed from the motor vehicle
highway account may be expended under IC 8-14-1.
Sec. 7. Money in the fund may be used for a purpose other than
a purpose that is specified in this chapter on the effective date of
this chapter only if the general assembly authorizes the purpose in
a statute approved by at least seventy-five percent (75%) of the
members of the house of representatives and by at least
seventy-five percent (75%) of the members of the senate.
bonds issued under this chapter and earnings thereon, or from all
three (3), for the purpose of paying all or any part of the cost of
any one (1) or more toll road projects or for the purpose of
refunding any other toll road revenue bonds.
(3) Establish reserves from the proceeds of the sale of bonds or
from other funds, or both, to secure the payment of the bonds.
(4) Fix and revise from time to time and charge and collect tolls
for transit over each toll road project constructed by it.
(5) Acquire in the name of the state by purchase or otherwise, on
such terms and conditions and in such manner as it may deem
proper, or by the exercise of the right of condemnation in the
manner as provided by this chapter, such public or private lands,
including public parks, playgrounds or reservations, or parts
thereof or rights therein, rights-of-way, property, rights,
easements, and interests, as it may deem necessary for carrying
out the provisions of this chapter. The authority may also:
(A) sell, transfer, and convey any such land or any interest
therein so acquired, or any portion thereof, whether by
purchase, condemnation, or otherwise, and whether such land
or interest therein had been public or private, when the same
shall no longer be needed for such purposes; and
(B) transfer and convey any such lands or interest therein as
may be necessary or convenient for the construction and
operation of any toll road project, or as otherwise required
under the provisions of this chapter.
(6) Designate the locations and establish, limit, and control such
points of ingress to and egress from each toll road project as may
be necessary or desirable in the judgment of the authority to
ensure the proper operation and maintenance of such projects, and
to prohibit entrance to such project from any point not so
designated. The authority shall not grant, for the operation of
transient lodging facilities, either ingress to or egress from any
project, including the service areas thereof on which are located
service stations and restaurants, and including toll plazas and
paved portions of the right-of-way. The authority shall cause to be
erected, at its cost, at all points of ingress and egress, large and
suitable signs facing traffic from each direction on the toll road.
Such signs shall designate the number and other designations, if
any, of all United States or state highways of ingress or egress, the
names of all Indiana municipalities with a population of five
thousand (5,000) or more within a distance of seventy-five (75)
miles on such roads of ingress or egress, and the distance in miles
to such designated municipalities.
(7) Make and enter into all contracts and agreements necessary or
incidental to the performance of its duties and the execution of its
powers under this chapter, or IC 8-9.5-8, or IC 8-15.5. When the
cost under any such contract or agreement, other than:
(A) a contract for compensation for personal services;
(B) a contract with the department under IC 8-9.5-8-7; or
(C) a lease with the department under IC 8-9.5-8-8; or
(D) a contract, lease, or other agreement under IC 8-15.5;
involves an expenditure of more than ten thousand dollars
($10,000), the authority shall make a written contract with the
lowest and best bidder after advertisement for not less than two
(2) consecutive weeks in a newspaper of general circulation in
Marion County, Indiana, and in such other publications as the
authority shall determine. Such notice shall state the general
character of the work and the general character of the materials to
be furnished, the place where plans and specifications therefor
may be examined, and the time and place of receiving bids. Each
bid shall contain the full name of every person or company
interested in it and shall be accompanied by a sufficient bond or
certified check on a solvent bank that if the bid is accepted a
contract will be entered into and the performance of its proposal
secured. The authority may reject any and all bids. A bond with
good and sufficient surety shall be required by the authority of all
contractors in an amount equal to at least fifty percent (50%) of
the contract price, conditioned upon the faithful performance of
the contract.
(8) Employ consulting engineers, superintendents, managers, and
such other engineers, construction and accounting experts, bond
counsel, other attorneys with the approval of the attorney general,
and other employees and agents as may be necessary in its
judgment to carry out the provisions of this chapter, and to fix
their compensation. However, all such expenses shall be payable
solely from the proceeds of toll road revenue bonds issued under
the provisions of this chapter or from revenues.
(9) Receive and accept from any federal agency, subject to
IC 8-23-3, grants for or in aid of the construction of any toll road
project, and receive and accept aid or contributions from any
source of either money, property, labor, or other things of value,
to be held, used, and applied only for the purposes for which such
grants and contributions may be made, and repay any grant to the
authority or to the department from a federal agency if such
repayment is necessary to free the authority from restrictions
which the authority determines to be in the public interest to
remove.
(10) Establish fees, charges, terms, or conditions for any
expenditures, loans, or other form of financial participation in
projects authorized as public improvements on arterial streets and
roads under section 1 of this chapter.
(11) Accept gifts, devises, bequests, grants, loans, appropriations,
revenue sharing, other financing and assistance, and any other aid
from any source and agree to and comply with conditions attached
to the aid.
(12) Accept transfer of a state highway to the authority under
IC 8-23-7-23 and pay the cost of conversion of the state highway
to a toll road project.
(13) Enter into contracts or leases with the department under
IC 8-9.5-8-7 or IC 8-9.5-8-8 and in connection with the contracts
or leases agree with the department for coordination of the
operation and the repair and maintenance of toll road projects and
tollways which are contiguous parts of the same public road,
including joint toll collection facilities and equitable division of
tolls.
(14) Enter into public-private agreements under IC 8-15.5 and
do all acts and things necessary or proper to carry out the
purposes set forth in IC 8-15.5.
(14) (15) Do all acts and things necessary or proper to carry out
this chapter.
adopted by the authority under IC 8-15-2-17.2(a)(10), global
positioning systems and photo or video based toll collection or
toll collection enforcement systems.
(b) Notwithstanding subsection (a), no toll or charge shall be made
by the authority for:
(1) the operation of temporary lodging facilities located upon or
adjacent to any project, nor may the authority itself operate or
gratuitously permit the operation of such temporary lodging
facilities by other persons without any toll or charge; or
(2) placing in, on, along, over, or under such project, such
telephone, telegraph, electric light or power lines, equipment, or
facilities as may be necessary to serve establishments located on
the project or as may be necessary to interconnect any public
utility facilities on one (1) side of the toll road project with those
on the other side.
(c) All contracts executed by the authority shall be preserved in the
principal office of the authority.
(d) In the case of a toll road project that is not leased to the
department under IC 8-9.5-8-7, the tolls shall be fixed and adjusted for
each toll road project so that the aggregate of the tolls from the project,
together with other revenues that are available to the authority without
prior restriction or encumbrance, will at least be adequate to pay:
(1) the cost of operating, maintaining, and repairing the toll road
project, including major repairs, replacements, and
improvements;
(2) the principal of and the interest on bonds issued in connection
with the toll road project, as the principal and interest becomes
due and payable, including any reserve or sinking fund required
for the project; and
(3) the payment of principal of and interest on toll road bonds
issued by the authority in connection with any other toll road
project, including any reserve or sinking fund required for the
project, but only to the extent that the authority provides by
resolution and subject to the provisions of any trust agreement
relating to the project.
(e) Not less than one (1) year before the date that final payment of
all such bonds, interest, and reimbursement is expected by the
chairman of the authority to be completed, the chairman shall notify the
state budget committee in writing of the expected date of final
payment.
(f) Such tolls shall not be subject to supervision or regulation by any
other commission, board, bureau, or agency of the state.
does not require the purchaser or lessee to continue making the
distributions required by subsection (b), the treasurer of state shall pay:
(1) for the calendar years 2006 and 2007, an amount equal to
the greater of zero (0) or the result of:
(1) (A) twenty million dollars ($20,000,000); minus
(2) (B) any amounts transferred to the development authority
under this subsection section before the sale or lease;
from the state general fund to the development authority fund
established under IC 36-7.5-4-1 from the state general fund or from
the toll road fund in accordance with IC 8-15.5-11; 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.
(g) Amounts distributed or paid to the development authority under
this section may be used for any purpose of the development authorized
under IC 36-7.5.
(h) The amounts necessary to make any distributions or payments
required or authorized by this section are appropriated.
subsection shall be distributed in equal quarterly amounts before
the last business day of January, April, July, and October of the
year. Any amounts distributed under this subsection shall be
deposited in the development authority fund established under
IC 36-7.6-4-1.
(d) A distribution may be made by the authority to the
development authority under subsection (c) only after the budget
committee has reviewed the development authority's
comprehensive strategic development plan under IC 36-7.6-3-4 and
the director of the office of management and budget has approved
the comprehensive strategic development plan.
(e) If the Indiana Toll Road is sold or leased before January 1,
2008 (other than a lease to the department), and the sale or lease
agreement does not require the purchaser or lessee to continue
making the distributions required by subsection (b), the treasurer
of state shall pay:
(1) for the calendar year 2007, an amount equal to the greater
of zero (0) or the result of:
(A) ten million dollars ($10,000,000); minus
(B) any amounts transferred to the development authority
under this section before the sale or lease;
to the development authority fund established under
IC 36-7.6-4-1 from the state general fund or from the toll road
fund in accordance with IC 8-15.5-11; and
(2) for each of the calendar years 2008 through 2016, an
amount equal to ten million dollars ($10,000,000) to the
development authority fund established under IC 36-7.6-4-1
from the toll road fund in accordance with IC 8-15.5-11.
(f) Amounts distributed or paid to the development authority
under this section may be used for any purpose of the development
authority authorized under IC 36-7.6.
(g) The amounts necessary to make any distributions or
payments required or authorized by this section are appropriated.
to whom, or any bank or trust company to which, such moneys shall be
paid shall:
(1) act as trustee of such moneys; and
(2) hold and apply the same for the purposes of this chapter,
subject to such regulations as this chapter and such resolution or
trust agreement may provide.
(c) This section does not apply to money paid or received with
respect to a toll road project that is the subject of a public-private
agreement under IC 8-15.5.
control signs and signals for motor vehicles in traffic lanes,
acceleration and deceleration lanes, toll plazas, and interchanges
on a toll road project.
(7) Determining the limitation of entry to and exit from a toll road
project to designated entrances and exits.
(8) Determining the limitation on use of a toll road project by
pedestrians and aircraft and by vehicles of a type specified in such
rules and regulations.
(9) Regulating commercial activity on a toll road project,
including but not limited to:
(A) the offering or display of goods or services for sale;
(B) the posting, distributing, or displaying of signs,
advertisements, or other printed or written material; and
(C) the operation of a mobile or stationary public address
system.
(10) Establishing enforcement procedures and making
assessments for the failure to pay required tolls.
(b) A person who violates a rule adopted under this section commits
a Class C infraction. However, a violation of a weight limitation
established by the authority under this section is:
(1) a Class B infraction if the total of all excesses of weight under
those limitations is more than five thousand (5,000) pounds but
not more than ten thousand (10,000) pounds; and
(2) a Class A infraction if the total of all excesses of weight under
those limitations is more than ten thousand (10,000) pounds.
(c) It is a defense to the charge of violating a weight limitation
established by the authority under this section that the total of all
excesses of weight under those limitations is less than one thousand
(1,000) pounds.
(d) The court may suspend the registration of a vehicle that violated:
(1) a size or weight limitation established by the authority under
this section; or
(2) a rule adopted under subsection (a)(10);
for a period of not more than ninety (90) days.
(e) Upon the conviction of a person for a violation of a weight or
size limitation established by the authority under this section, the court
may recommend suspension of the person's current chauffeur's license
only if the violation was committed knowingly.
road project constructed or operated by the authority, other than a toll
road project that is subject to a public-private agreement under
IC 8-15.5, should become a part of the system of state highways free
of tolls or become a tollway under IC 8-15-3.
(b) Any resolution as to any project described in subsection (a) shall
not become effective until all bonds to which the revenues of any
project were pledged for payment, together with all interest thereon, is
paid, or a sufficient amount for the payment of all bonds and the
interest thereon to maturity is set aside in trust for the benefit of
bondholders.
(c) Until any resolution is adopted by the authority under subsection
(a) and becomes effective as provided in subsection (b), and subject
to the terms of any public-private agreement under IC 8-15.5, any
project constructed by the authority or its predecessors remains under
the jurisdiction of the authority and the authority shall continue to
maintain and operate the project and levy and collect tolls as provided
in this chapter. Subject to any agreement entered into by the Secretary
of Commerce of the United States, acting by and through the federal
highway administrator, the Indiana toll road commission, and the state,
acting by and through the Indiana department of transportation, Tolls
on any project may be continued after the date of the payment of the
principal of and interest on bonds issued for the construction of that
project.
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 2.5. "Operator" refers to one (1) or more
private individuals or entities that enter into a public-private
agreement to do one (1) or more of the following with respect to
one (1) or more tollways:
(1) Planning.
(2) Design.
(3) Development.
(4) Construction.
(5) Reconstruction.
(6) Maintenance.
(7) Repair.
(8) Financing.
(9) Operation.
A public entity may provide services to an operator as a
subcontractor or subconsultant without affecting the private status
of the operator and the entity's or operator's ability to enter into
a public-private agreement.
which is one (1) or more items described in this section,
including any nontolled part, that are separately designated by
name or number.
grants for or in aid of the planning, design, construction, financing,
repair, rehabilitation, expansion, improvement, operation, or
maintenance of all or part of any tollway, and receive and accept aid
or contributions from any source of either money, property, labor, or
other things of value, to be held, used, and applied only for the
purposes for which those loan proceeds, proceeds from lines of
credit, proceeds from credit guarantees, grants, or contributions are
made. The department may distribute any part of loan proceeds,
proceeds from lines of credit, proceeds from credit guarantees, and
grants received under this section to an operator as permitted by
the terms of the loan, line of credit, credit guarantee, or grant. The
department, the authority, or an operator, as required by a
public-private agreement, shall repay any loan, line of credit, credit
guarantee, or grant from a federal, state, or local agency, if a
repayment is necessary to free the department from restrictions that the
department determines to be in the public interest to remove.
or property interest acquired by the operator under a
public-private agreement, or any possessory interest in the tollway
or in property granted or created by the public-private agreement
under this chapter or IC 8-15.7.
(d) An operator or any other person purchasing tangible
personal property for incorporation or improvement of a structure
or facility constituting or becoming part of the land included in:
(1) a tollway; or
(2) property granted or created by the public-private
agreement;
is entitled to the exemption from gross retail tax and use tax
provided under IC 6-2.5-4-9(b) and IC 6-2.5-3-2(c), respectively,
with respect to that tangible personal property.
maintain the balance of funds in the account specified by
the department.
(B) Hold and use any device provided to register use of a
tollway that is chargeable to the participant's account in
the manner specified in the rules and participant's
agreement.
(C) Pay the fees, charges, and tolls specified by the
department or an operator, as permitted under a
public-private agreement.
(D) Comply with any other necessary or appropriate terms
and conditions specified by the department or an operator,
as permitted under a public-private agreement.
(3) A method for resolving disputed charges with account
holders, including an agreement by the account holder to hold
the department and its agents harmless for the payment of
any unpaid financial obligation incurred by the account
holder.
(4) The program will comply with all applicable federal and
state laws, regulations, and rules regulating credit
transactions between the entity holding the account and the
account holder.
(5) Notice will be provided to the participant of all federal and
state privacy, credit, and other laws, regulations, and policies
applicable to an account and the program.
(b) The department may establish reasonable fees and charges
to be charged to account holders and business entities participating
in the electronic tolling program and to recover costs of
administration, account initiation and maintenance, late payments,
credit card and other electronic transactions, enforcement, and
improvement of the program. The fees and charges shall be
deposited in the appropriate special funds account for the tollways
covered by the program, as specified by the department, or used,
retained, or deposited as permitted under a public-private
agreement.
(c) The identifying credit and tollway use information of an
electronic tolling program participant may not be used by the
department or an operator for commercial purposes not related to
the tollway.
issuing an order and after receiving the governor's approval, at any time
determine that a tollway under its jurisdiction should become a part of
the system of state highways free of tolls.
toll collection facility.
article is controlling as to any public-private agreement entered
into under this article.
Sec. 3. This article contains full and complete authority for
public-private agreements between the authority and a private
entity. Except as provided in this article, no law, procedure,
proceeding, publication, notice, consent, approval, order, or act by
the authority or any other officer, department, agency, or
instrumentality of the state or any political subdivision is required
for the authority to enter into a public-private agreement with a
private entity under this article, or for a toll road project that is the
subject of a public-private agreement to be constructed, acquired,
maintained, repaired, operated, financed, transferred, or conveyed.
Chapter 2. Definitions
Sec. 1. The definitions in this chapter apply throughout this
article.
Sec. 2. "Authority" refers to the Indiana finance authority.
Sec. 3. "Department" refers to the Indiana department of
transportation.
Sec. 4. "Offeror" means a private entity that has submitted a
proposal for a public-private agreement under this article.
Sec. 5. "Operator" means a private entity that has entered into
a public-private agreement with the authority.
Sec. 6. "Private entity" means any individual, sole
proprietorship, corporation, limited liability company, joint
venture, general partnership, limited partnership, nonprofit entity,
or other private legal entity. A public agency may provide services
to a private entity without affecting the private status of the private
entity and the ability to enter into a public-private agreement.
Sec. 7. "Project" or "toll road project" has the meaning set
forth in IC 8-15-2-4(4).
Sec. 8. "Public-private agreement" means an agreement under
this article between a private entity and the authority under which
the private entity, acting on behalf of the authority as lessee,
licensee, or franchisee, will plan, design, acquire, construct,
reconstruct, improve, extend, expand, lease, operate, repair,
manage, maintain, or finance a toll road project.
Sec. 9. "Request for proposals" means all materials and
documents prepared by or on behalf of the authority to solicit
proposals from offerors to enter into a public-private agreement.
Sec. 10. "User fees" means the rates, tolls, or fees imposed for
the use of, or incidental to, all or any part of a toll road project
under a public-private agreement.
notice of the hearing one (1) time in accordance with IC 5-3-1 at
least seven (7) days before the hearing. The notice must include the
following:
(1) The date, time, and place of the hearing.
(2) The subject matter of the hearing.
(3) A description of the related toll road project and of the
public-private agreement to be awarded.
(4) The identity of the offeror that has been preliminarily
selected as the operator for the project.
(5) The address and telephone number of the authority.
(6) A statement indicating that, subject to section 6 of this
chapter, and except for those portions that are confidential
under IC 5-14-3, the selected offer and an explanation of the
basis upon which the preliminary selection was made are
available for public inspection and copying at the principal
office of the authority during regular business hours.
Sec. 10. (a) Subject to section 6 of this chapter, and except for
those parts that are confidential under IC 5-14-3, the selected offer
and a written explanation of the basis upon which the preliminary
selection was made shall be made available for inspection and
copying in accordance with IC 5-14-3 at least seven (7) days before
the hearing scheduled under section 9 of this chapter.
(b) At the hearing, the authority shall allow the public to be
heard on the preliminary selection.
Sec. 11. (a) After the procedures required in this chapter have
been completed, the authority shall make a determination as to
whether the offeror that submitted the selected offer should be
designated as the operator for the related toll road project and
shall submit its determination to the governor and the budget
committee.
(b) After review of the authority's determination by the budget
committee, the governor may accept or reject the determination of
the authority. If the governor accepts the determination of the
authority, the governor shall designate the offeror who submitted
the selected offer as the operator for the related toll road project.
The authority shall publish notice of the designation of the
operator for the related toll road project one (1) time, in
accordance with IC 5-3-1.
(c) After the designation of the operator for the related toll road
project, the authority may execute the public-private agreement
with that operator.
Sec. 12. Any action to contest the validity of a public-private
agreement entered into under this chapter may not be brought
after the fifteenth day following the publication of the notice of the
designation of an operator under the public-private agreement as
provided in section 11 of this chapter.
Sec. 13. The authority shall disclose the contents of all
proposals, except the portions of the proposals that may be treated
as confidential in accordance with IC 5-14-3, when either:
(1) the request for proposal process is terminated under
section 8 of this chapter; or
(2) the public-private agreement has been executed and the
closing for each financing transaction required to provide
funding to carry out the agreement has been conducted.
Chapter 5. Terms and Conditions of Public-Private Agreements
Sec. 1. (a) Before developing or operating a toll road project, a
private entity that has been selected as the operator of a toll road
project under this article shall enter into a public-private
agreement with the authority setting forth the rights and duties of
the operator under this article.
(b) A public-private agreement entered into under this article
must be approved by the governor before its execution.
Sec. 2. A public-private agreement entered into under this
article must provide for the following:
(1) The original term of the public-private agreement, which
may not exceed ninety-nine (99) years.
(2) Provisions for a:
(A) lease, franchise, or license of the toll road project and
the real property owned by the authority upon which the
toll road project is located or is to be located; or
(B) management agreement or other contract to operate
the toll road project and the real property owned by the
authority upon which the toll road project is located or is
to be located;
for a predetermined period. The public-private agreement
must provide for ownership of all improvements and real
property by the authority in the name of the state.
(3) Monitoring of the operator's maintenance practices by the
authority and the taking of actions by the authority that it
considers appropriate to ensure that the toll road project is
properly maintained.
(4) The basis upon which user fees that may be collected by
the operator, as determined under this article, are established.
(5) Compliance with applicable state and federal laws and
local ordinances.
(6) Grounds for termination of the public-private agreement
by the authority or the operator.
(7) The date of termination of the operator's authority and
duties under this article.
(8) Procedures for amendment of the agreement.
Sec. 3. In addition to the requirements of section 2 of this
chapter, a public-private agreement may include additional
provisions concerning:
(1) Review and approval by the authority of the operator's
plans for the development and operation of the toll road
project.
(2) Inspection by the authority of construction of or
improvements to the toll road project.
(3) Maintenance by the operator of a policy or policies of
public liability insurance (copies of which shall be filed with
the authority, accompanied by proofs of coverage) or
self-insurance, each in a form and amount satisfactory to the
authority to insure coverage of tort liability to the public and
employees and to enable the continued operation of the toll
road project.
(4) Filing by the operator, on a periodic basis, of appropriate
financial statements in a form acceptable to the authority.
(5) Filing by the operator, on a periodic basis, of appropriate
traffic reports in a form acceptable to the authority.
(6) Payments to the operator. These payments may consist of
one (1) or more of the following:
(A) The retention by the operator of the revenues collected
by the operator in the operation and management of the
toll road project.
(B) Payments made to the operator by the authority.
(C) Other sources of payment or revenue to the operator,
if any.
(7) Financing obligations of the operator and the authority,
including entering into agreements for the benefit of the
financing parties.
(8) Apportionment of expenses between the operator and the
authority.
(9) The rights and duties of the operator, the authority, and
other state and local governmental entities with respect to use
of the toll road project, including the state police department
and other law enforcement and public safety agencies.
operator.
Sec. 5. Notwithstanding any contrary provision of this article,
the authority may enter into a public-private agreement with
multiple private entities if the authority determines in writing that
it is in the public interest to do so.
Sec. 6. The department or any other state agency may perform
any duties and exercise any powers of the authority under this
article or the public-private agreement that have been assigned,
subcontracted, or delegated to it by the authority.
Chapter 6. Construction and Operating Standards for Toll
Road Projects
Sec. 1. The plans and specifications for each toll road project
constructed under this article must comply with:
(1) the authority's standards for other projects of a similar
nature, except as otherwise provided in the public-private
agreement; and
(2) any other applicable state or federal standards.
Sec. 2. Unless otherwise provided by federal law, the operator
or any contractor or subcontractor of the operator engaged in the
construction of a toll road project is not required to comply with
IC 4-13.6 or IC 5-16 concerning state public works, IC 5-17
concerning purchases of materials and supplies, or other statutes
concerning procedures for procurement of public works or
personal property as a condition of being awarded and performing
work on the project.
Sec. 3. The operator or any contractor or subcontractor of the
operator engaged in the construction of a toll road project is
subject to:
(1) the provisions of 25 IAC 5 concerning equal opportunities
for minority business enterprises and women's business
enterprises to participate in procurement and contracting
processes; and
(2) the provisions that may be established by the authority in
a public-private agreement with respect to awarding
contracts to Indiana businesses (as defined in
IC 5-22-15-20.5).
Sec. 4. Each toll road project constructed or operated under this
article is considered to be part of the state highway system
designated under IC 8-23-4-2 for purposes of identification,
maintenance standards, and enforcement of traffic laws.
Sec. 5. An operator may enter into agreements for maintenance
or other services under this article with the authority, the
department, or other state agencies. The authority may:
(1) with the assistance of all applicable state agencies,
establish a unified permitting and licensing process for the
processing and issuance of all necessary permits and licenses
for toll road projects under this article, including, but not
limited to, all environmental permits and business and tax
licenses; and
(2) provide other services for which the authority is
reimbursed, including, but not limited to, preliminary
planning, environmental certification (including the
procurement of all necessary environmental permits), and
preliminary design of toll road projects under this article.
Sec. 6. The authority shall seek the cooperation of federal and
local agencies to expedite all necessary federal and local permits,
licenses, and approvals necessary for toll road projects under this
article.
Chapter 7. User Fees
Sec. 1. (a) Notwithstanding IC 8-9.5-8 and IC 8-15-2-14(j), and
subject to section 8 of this chapter, the authority may fix and revise
the amounts of user fees that an operator may charge and collect
for the use of any part of a toll road project in accordance with the
public-private agreement.
(b) In fixing the amounts referred to in subsection (a), the
authority may:
(1) establish maximum amounts for the user fees; and
(2) provide for increases or decreases of the user fees or the
maximum amounts established based upon the indices,
methodologies, or other factors that the authority considers
appropriate.
Sec. 2. A schedule of the current user fees shall be made
available by the operator to any member of the public on request.
Sec. 3. User fees established by the authority under this article
are not subject to supervision or regulation by any other
commission, board, bureau, or agency of the state, or by any
political subdivision.
Sec. 4. (a) Subject to section 8 of this chapter, user fees
established by the authority under section 1 of this chapter for the
use of a toll road project must be nondiscriminatory and may:
(1) include different user fees based on categories such as
vehicle class, vehicle size, vehicle axles, vehicle weight,
volume, location, or traffic congestion or such other means or
classification as the authority determines to be appropriate;
authority may:
(1) continue to charge user fees for the use of the toll road
project; or
(2) delegate to a third party the authority to continue to
collect the user fees.
(b) Revenues collected under this section must first be used for
operations and maintenance of the toll road project. Any revenues
determined by the authority to be excess must be paid to the
authority for deposit in the toll road fund established by
IC 8-15.5-11-5.
Sec. 7. Any action to contest the validity of user fees fixed under
this chapter may not be brought after the fifteenth day following
the effective date of a rule fixing such user fees adopted under
IC 4-22-2-37.1(a)(30).
Sec. 8. (a) As used in this section, "passenger motor vehicle"
means:
(1) a passenger motor vehicle (as defined in IC 9-13-2-123); or
(2) a truck (as defined in IC 9-13-2-188) that has a declared
gross weight of not more than seven thousand (7,000) pounds;
that is owned or leased by an individual and is not used for
commercial purposes.
(b) The user fees charged by the operator of the Indiana Toll
Road under a public-private agreement for the use of the Indiana
Toll Road by passenger motor vehicles that are owned or leased by
individuals who reside in a county traversed by the Indiana Toll
Road may not exceed the user fees for passenger motor vehicles
that were in effect January 1, 2006.
(c) The operator of the Indiana Toll Road under a
public-private agreement shall take the steps necessary to
implement this section. The bureau of motor vehicles and other
state agencies shall cooperate with the operator as necessary to
implement this section.
(d) This section expires July 1, 2016.
Chapter 8. Taxation of Operators
Sec. 1. A toll road project and tangible personal property used
exclusively in connection with a toll road project that are:
(1) owned by the authority and leased, franchised, licensed or
otherwise conveyed to an operator; or
(2) acquired, constructed, or otherwise provided by an
operator in connection with the toll road project;
under the terms of a public-private agreement are considered to be
public property devoted to an essential public and governmental
function and purpose and the property, and an operator's
leasehold estate, franchise, license, and other interests in the
property are exempt from all ad valorem property taxes and
special assessments levied against property by the state or any
political subdivision of the state.
Sec. 2. Income received by an operator under the terms of a
public-private agreement is subject to taxation in the same manner
as income received by other private entities.
Sec. 3. An operator or any other person purchasing tangible
personal property for incorporation into or improvement of a
structure or facility constituting or becoming part of the land
included in the toll road project is not exempt from the application
of the gross retail or use tax under IC 6-2.5 with respect to such a
purchase.
Chapter 9. Records of Operators
Sec. 1. Records that are provided by an operator to the
authority that relate to compliance by an operator with the terms
of a public-private agreement are subject to inspection and copying
in accordance with IC 5-14-3.
Chapter 10. Additional Powers of the Authority Concerning
Toll Road Projects
Sec. 1. The authority may exercise any powers provided under
this article in participation or cooperation with the department or
any other governmental entity and enter into any contracts to
facilitate that participation or cooperation without compliance
with any other statute.
Sec. 2. (a) The authority may make and enter into all contracts
and agreements necessary or incidental to the performance of the
authority's duties and the execution of the authority's powers
under this article. These contracts or agreements are not subject
to any approvals other than the approval of the authority and may
be for any term of years and contain any terms that are considered
reasonable by the authority.
(b) The:
(1) department; and
(2) any other state agency;
may make and enter into all contracts and agreements necessary
or incidental to the performance of the duties and the execution of
the powers granted to the department or the state agency in
accordance with this article or the public-private agreement. These
contracts or agreements are not subject to any approvals other
than the approval of the department or state agency and may be
for any term of years and contain any terms that are considered
reasonable the department or the state agency.
Sec. 3. (a) The authority may pay any amounts owed by the
authority under a public-private agreement entered into under this
article from any funds available to the authority under this article
or any other statute.
(b) Subject to review by the budget committee established by
IC 4-12-1-3 and approval by the budget director appointed under
IC 4-12-1-3, a public-private agreement entered into under this
article may:
(1) establish a procedure for the authority or a person acting
on behalf of the authority to certify to the general assembly
the amount needed to pay any amounts owed by the authority
under a public-private agreement; or
(2) otherwise create a moral obligation of the state to pay any
amounts owed by the authority under the public-private
agreement.
(c) The authority may issue bonds under IC 4-4-11 or IC 8-15-2
to provide funds for any amounts identified under this section
without complying with IC 8-9.5-8-10.
Sec. 4. For purposes of this article, the authority may authorize
an operator under a public-private agreement to perform any of its
duties under IC 8-15-2-1, IC 8-15-2-6, IC 8-15-2-18, and
IC 8-15-2-24.
Sec. 5. The authority may exercise any of its powers under
IC 8-15-2 or any other provision of Indiana Code as necessary or
desirable for the performance of the authority's duties and the
execution of the authority's powers under this article.
Sec. 6. The authority may not take any action under this chapter
that would impair the public-private agreement entered into under
this article.
Sec. 7. (a) The authority shall enter into an agreement between
and among the operator, the authority, and the state police
department concerning the provision of law enforcement assistance
with respect to a toll road project that is the subject of a
public-private agreement under this article.
(b) The authority may enter into arrangements with the state
police department related to costs incurred in providing law
enforcement assistance under this article.
(c) All law enforcement officers of the state and any political
subdivision have the same powers and jurisdiction within the limits
of a toll road project as they have in their respective areas of
jurisdiction, including the roads and highways of the state. These
law enforcement officers shall have access to a toll road project
that is the subject of a public-private agreement to exercise their
powers and jurisdiction.
Chapter 11. Toll Road Fund
Sec. 1. As used in this chapter, "account" refers to an account
established within the fund.
Sec. 2. As used in this chapter, "eligible political subdivision"
refers to:
(1) counties through which a toll road project traverses; and
(2) cities and towns in those counties.
Sec. 3. As used in this chapter, "eligible project" means:
(1) with respect to an eligible political subdivision, the
acquisition, construction, renovation, improvement, and
equipping of projects designed to facilitate the movement of
people, goods, services, and information, including, but not
limited to:
(A) roads;
(B) trails and bike paths;
(C) intermodal freight facilities;
(D) airports;
(E) bridges;
(F) public transit facilities and equipment;
(G) pipes and pumping stations for the transportation of
gases and liquids; and
(H) cabling and other transmission equipment for data,
voice, and electricity;
(2) with respect to the northwest Indiana regional
development authority:
(A) all or part of a distribution described in IC 8-15-2-14.7;
and
(B) the acquisition, construction, renovation, improvement,
and equipping of a project (as defined in IC 36-7.5-1);
(3) with respect to the northeast Indiana regional
development authority:
(A) all or part of a distribution described in IC 8-15-2-14.8;
and
(B) the acquisition, construction, renovation, improvement,
and equipping of a project (as defined in IC 36-7.6-1); and
(4) with respect to the department, the acquisition,
construction, renovation, improvement, and equipping of
projects identified in the department's current long range
comprehensive transportation plan.
Sec. 4. As used in this chapter, "fund" refers to the toll road
fund established by section 5 of this chapter.
Sec. 5. (a) The toll road fund is established to provide funds to:
(1) pay or defease certain bonds in the manner provided by
this chapter;
(2) pay amounts owed by the authority in connection with the
execution and performance of a public-private agreement
under this article; and
(3) make distributions for eligible projects to:
(A) the department;
(B) the northwest Indiana regional development authority
established in IC 36-7.5-2;
(C) the northeast Indiana regional development authority
established in IC 36-7.6-2; and
(D) eligible political subdivisions.
(b) The authority shall hold, administer, and manage the fund.
(c) Expenses of administering the fund shall be paid from money
in the fund.
(d) The fund consists of the following:
(1) Money received from an operator under a public-private
agreement.
(2) Appropriations, if any, made by the general assembly.
(3) Grants and gifts intended for deposit in the fund.
(4) Interest, premiums, gains, or other earnings on the fund.
(e) The authority shall establish the following separate accounts
within the fund:
(1) The bond retirement account.
(2) The administration account.
(3) The eligible project account.
(f) Money in the fund shall be deposited, paid, and secured in
the manner provided by IC 4-4-11-32. Notwithstanding IC 5-13,
the authority shall invest the money in the fund that is not needed
to meet the obligations of the fund in the manner provided by an
investment policy established by resolution of the authority.
(g) The fund is not part of the state treasury and is considered
a trust fund for purposes of IC 4-9.1-1-7. Money may not be
transferred, assigned, or otherwise removed from the fund by the
state board of finance, the budget agency, or any other state
agency.
(h) Money in the fund at the end of a state fiscal year does not
revert to the state general fund.
department shall submit to the authority a list of the eligible
projects that:
(1) are to be carried out by the department during the state
fiscal year beginning on July 1 of that year; and
(2) require a distribution of money from the eligible project
account.
The list must include the amount of distributions required for each
project during the fiscal year, the total amount of distributions
required for all projects during the fiscal year, and the schedule of
distributions required for each project. Upon a determination by
the authority that the department's request complies with this
chapter, the authority shall make the distributions in the amounts
and in accordance with the schedule of projects provided by the
department. The authority shall pay the distributions from the
eligible project account to the treasurer of state for deposit in the
state highway fund.
(c) Before July 1, 2006, and every year thereafter, the northwest
Indiana regional development authority may submit to the
authority a request for a distribution from the eligible project
account. The request must include a list of the eligible projects
that:
(1) are to be carried out by the northwest Indiana regional
development authority during the state fiscal year beginning
on July 1 of that year; and
(2) require a distribution of money from the eligible project
account.
The list must include the amount of distributions requested for
each project during the fiscal year, the total amount of
distributions requested for all projects during the fiscal year, and
the proposed schedule of distributions for each project. The
authority may approve, modify and approve, or reject a request
made under this section. The authority shall make any
distributions in the amounts and in accordance with the schedule
as approved by the authority and shall pay the distributions from
the eligible project account to the northwest Indiana regional
development authority for deposit in the general account of the
development authority fund established under IC 36-7.5-4-1.
(d) Before July 1, 2006, and every year thereafter, the northeast
Indiana regional development authority may submit to the
authority a request for a distribution from the eligible project
account. The request must include a list of the eligible projects
that:
pursuant to IC 8-15-2-14.8, must be made by an act passed by at
least seventy-five percent (75%) of the members of the house of
representatives and by at least seventy-five percent (75%) of the
members of the senate, and the use or withdrawal may not occur
until the bill is enacted and becomes effective.
Sec. 8. Money in the fund may be used for a purpose other than
a purpose that is specified in this chapter on the effective date of
this chapter only if the general assembly authorizes the purpose in
a statute approved by at least seventy-five percent (75%) of the
members of the house of representatives and by at least
seventy-five percent (75%) of the members of the senate.
Chapter 12. Prohibited Local Action
Sec. 1. A political subdivision (as defined in IC 36-1-2-13) may
not take any action that would have the effect of impairing a
public-private agreement under this article.
Chapter 13. Prohibited Political Contributions
Sec. 1. The definitions in IC 3-5-2 apply to this chapter to the
extent they do not conflict with the definitions in this article.
Sec. 2. As used in this chapter, "candidate" refers to any of the
following:
(1) A candidate for a state office.
(2) A candidate for a legislative office.
(3) A candidate for a local office.
Sec. 3. As used in this chapter, "committee" refers to any of the
following:
(1) A candidate's committee.
(2) A regular party committee.
(3) A committee organized by a legislative caucus of the house
of representatives of the general assembly.
(4) A committee organized by a legislative caucus of the senate
of the general assembly.
Sec. 4. As used in this chapter, "officer" refers only to either of
the following:
(1) An individual listed as an officer of a corporation in the
corporation's most recent annual report.
(2) An individual who is a successor to an individual described
in subdivision (1).
Sec. 5. For purposes of this chapter, a person is considered to
have an interest in an operator if the person satisfies any of the
following:
(1) The person holds any interest in an operator.
(2) The person is an officer of an operator.
(3) The person is an officer of a person that holds any interest
in an operator.
(4) The person is a political action committee of an operator.
Sec. 6. An operator is considered to have made a contribution
if a contribution is made by a person who has an interest in the
operator.
Sec. 7. An operator or a person who has an interest in an
operator may not make a contribution to a candidate or a
committee during the following periods:
(1) The term during which the operator is a party to a
public-private agreement entered into under this article.
(2) The three (3) years following the final expiration or
termination of the public-private agreement described in
subdivision (1).
Sec. 8. A person who knowingly or intentionally violates this
chapter commits a Class D felony.
department under IC 8-15.7-4, serves the public purpose of this
article if the action facilitates the timely development, planning,
design, construction, maintenance, repair, rehabilitation,
expansion, financing, or operation of a qualifying project.
Sec. 3. It is the intent of this article to:
(1) encourage investment in Indiana by private entities that
facilitates the development, planning, design, construction,
maintenance, repair, rehabilitation, expansion, financing, and
operation of transportation facilities; and
(2) grant public and private entities the greatest possible
flexibility in contracting with each other for the provision of
the public services that are the subject of this article.
Sec. 4. The powers conferred by this article shall be liberally
construed in order to accomplish their purposes and are in
addition and supplemental to the powers conferred by any other
law. If any other law or rule is inconsistent with this article, this
article is controlling as to any public-private agreement entered
into under this article.
Sec. 5. This article contains full and complete authority for
agreements and leases with private entities to carry out the
activities described in this article. No procedure, proceeding,
publication, notice, consent, approval, order, or act by the
authority, the department, or any other state or local agency or
official is required to enter into an agreement or lease, and no law
to the contrary affects, limits, or diminishes the authority for
agreements and leases with private entities, except as provided by
this article.
Sec. 6. To the extent that this article permits or requires the
authority, the department, or a private entity to carry out any law
other than this article under a public-private agreement, the action
shall be carried out in conformity with this article.
Chapter 2. Definitions
Sec. 1. The definitions in this chapter apply throughout this
article.
Sec. 2. "Affected jurisdiction" means the following:
(1) Any county, city, or town in which all or a part of a
qualifying project is located.
(2) Any other public entity directly affected by the qualifying
project.
Sec. 3. "Authority" or "Indiana finance authority" refers to the
Indiana finance authority established by IC 4-4-11-4.
Sec. 4. "Develop" or "development" means to do one (1) or
more of the following:
(1) Plan.
(2) Design.
(3) Develop.
(4) Lease.
(5) Acquire.
(6) Install.
(7) Construct.
(8) Reconstruct.
(9) Rehabilitate.
(10) Extend.
(11) Expand.
Sec. 5. "Highway, street, or road" has the meaning set forth in
IC 8-23-1-23.
Sec. 6. "Law enforcement officer" has the meaning set forth in
IC 35-41-1-17.
Sec. 7. "Maintenance" includes ordinary maintenance, repair,
rehabilitation, capital maintenance, maintenance replacement, and
any other categories of maintenance that may be designated by the
authority.
Sec. 8. "Offeror" means a private entity that has submitted a
qualification submittal or a proposal for a public-private
agreement under this article.
Sec. 9. "Operate" or "operation" means to do one (1) or more
of the following:
(1) Maintain.
(2) Improve.
(3) Equip.
(4) Modify.
(5) Otherwise operate.
Sec. 10. "Operator" means a private entity that has entered into
a public-private agreement with the authority to provide services
to or on behalf of the authority.
Sec. 11. "Political subdivision" has the meaning set forth in
IC 36-1-2-13.
Sec. 12. "Private entity" means any combination of one (1) or
more individuals, corporations, general partnerships, limited
liability companies, limited partnerships, joint ventures, business
trusts, nonprofit entities, or other business entities that are parties
to a proposal for a qualifying project or a public-private agreement
related to a qualifying project. A public agency may provide
services to an operator as a subcontractor or subconsultant
without affecting the private status of the private entity and the
entity's or operator's ability to enter into a public-private
agreement.
Sec. 13. "Project" means all or part of the following:
(1) A limited access facility (as defined in IC 8-23-1-28).
(2) A tollway (as defined in IC 8-15-3-7).
(3) Roads and bridges.
(4) All or part of a bridge, tunnel, overpass, underpass,
interchange, structure, ramp, access road, service road,
entrance plaza, approach, tollhouse, utility corridor, toll
gantry, rest stop, service area, or administration, storage, or
other building or facility, including temporary facilities and
buildings or facilities and structures that will not be tolled,
that the authority determines is appurtenant, necessary, or
desirable for the development, financing, or operation of the
facilities described in subdivisions (1), (2) and (3).
(5) An improvement, betterment, enlargement, extension, or
reconstruction of all or part of any of the facilities described
in this section, including a nontolled part, that is separately
designated by name or number.
Sec. 14. "Public-private agreement" means the public-private
agreement between the operator and the authority that relates to
any combination of the development, financing, or operation of a
qualifying project and is entered into under this article.
Sec. 15. "Qualifying project" means one (1) or more projects
developed, financed, or operated by an operator under this article.
Sec. 16. "Request for proposals" means all materials and
documents prepared by or on behalf of the authority to solicit
proposals from offerors to enter into a public-private agreement.
Sec. 17. "Request for qualifications" means all materials and
documents prepared by or on behalf of the authority to solicit
qualification submittals from offerors to enter into a public-private
agreement.
Sec. 18. "Revenues" means all revenues, including any
combination of:
(1) income;
(2) earnings and interest;
(3) user fees;
(4) lease payments;
(5) allocations;
(6) federal, state, and local appropriations, grants, loans, lines
of credit, and credit guarantees;
user fee rates are not subject to supervision or regulation by any
commission, board, bureau, or agency of the state or any
municipality, other than the authority to the extent set forth in the
public-private agreement.
Sec. 3. The operator may own, lease, or acquire any property
interest or other right to develop, finance, or operate the qualifying
project.
Sec. 4. In operating the qualifying project, the operator may do
the following:
(1) Make user classifications as permitted in the
public-private agreement.
(2) As permitted in the public-private agreement or otherwise
with the consent of the authority or the department, as
applicable, make and enforce reasonable rules to the same
extent that the authority or the department may make and
enforce rules with respect to a similar project.
Sec. 5. The authority shall establish a program to facilitate
participation in qualifying projects by:
(1) small businesses that qualify for a small business set-aside
under IC 4-13.6-2-11;
(2) businesses certified under IC 4-13-16.5 as a minority
business enterprise;
(3) businesses certified under IC 4-13-16.5 as a women's
business enterprise;
(4) businesses treated as disadvantaged business enterprises
under federal or state law; and
(5) businesses defined under IC 5-22-15-20.5 as Indiana
businesses, to the extent permitted by applicable federal and
state law and regulations.
Chapter 4. Procurement Process
Sec. 1. The authority may request proposals from private
entities for all or part of the development, financing, and operation
of one (1) or more projects.
Sec. 2. (a) This section establishes the competitive proposal
procedure that the authority shall use to enter into a public-private
agreement with an operator under this article.
(b) The authority may pursue a competitive proposal procedure
using a request for qualifications and a request for proposals
process or proceed directly to a request for proposals.
(c) If the authority elects to use a request for qualifications
phase, it must provide a public notice of the request for
qualifications, for the period considered appropriate by the
authority, before the date set for receipt of submittals in response
to the solicitation. The authority shall provide the notice by posting
in a designated public area and publication in a newspaper of
general circulation, in the manner provided by IC 5-3-1. In
addition, submittals in response to the solicitation may be solicited
directly from potential offerors.
(d) The authority shall evaluate qualification submittals based
on the requirements and evaluation criteria set forth in the request
for qualifications.
(e) If the authority has undertaken a request for qualifications
phase resulting in one (1) or more prequalified or shortlisted
offerors, the request for proposals shall be limited to those offerors
that have been prequalified or shortlisted.
(f) If the authority has not issued a request for qualifications
and intends to use only a one (1) phase request for proposals
procurement, the authority must provide a public notice of the
request for proposals for the period considered appropriate by the
authority, before the date set for receipt of proposals. The
authority shall provide the notice by posting in a designated public
area and publication in a newspaper of general circulation, in the
manner provided by IC 5-3-1. In addition, proposals may be
solicited directly from potential offerors.
(g) The authority shall submit a draft of the request for
proposals to the budget committee for its review before the
issuance by the authority of the request for proposals to potential
offerors. The request for proposals must:
(1) indicate in general terms the scope of work, goods, and
services sought to be procured;
(2) contain or incorporate by reference the specifications and
contractual terms and conditions applicable to the
procurement and the qualifying project;
(3) specify the factors, criteria, and other information that
will be used in evaluating the proposals;
(4) specify any requirements or goals for use of:
(A) minority business enterprises and women's business
enterprises certified under IC 4-13-16.5;
(B) disadvantaged business enterprises under federal or
state law;
(C) businesses defined under IC 5-22-15-20.5 as Indiana
businesses, to the extent permitted by applicable federal
and state law and regulations; and
(D) businesses that qualify for a small business set aside
under IC 4-13.6-2-11;
(5) contain or incorporate by reference the other applicable
contractual terms and conditions; and
(6) contain or incorporate by reference any other provisions,
materials, or documents that the authority considers
appropriate.
(h) The authority shall determine the evaluation criteria that
are appropriate for each project and shall set those criteria forth
in the request for proposals. The authority may use a selection
process that results in selection of the proposal offering the best
value to the public, a selection process that results in selection of
the proposal offering the lowest price or cost or the highest
payment to, or revenue sharing with, the authority, or any other
selection process that the authority determines is in the best
interests of the state and the public.
(i) The authority shall evaluate proposals based on the
requirements and evaluation criteria set forth in the request for
proposals.
(j) The authority may select one (1) or more offerors for
negotiations based on the evaluation criteria set forth in the
request for proposals. If the authority believes that negotiations
with the selected offeror or offerors are not likely to result in a
public-private agreement, or, in the case of a best value selection
process, no longer reflect the best value to the state and the public,
the authority may commence negotiations with other responsive
offerors, if any, and may suspend, terminate, or continue
negotiations with the original offeror or offerors. If negotiations
are unsuccessful, the authority shall terminate the procurement,
may not award the public-private agreement, and may commence
a new procurement for a public-private agreement. If the authority
determines that negotiations with an offeror have been successfully
completed, the authority shall, subject to the other requirements of
this article, award the public-private agreement to the offeror.
(k) Before awarding a public-private agreement to an operator,
the authority shall schedule a public hearing on the proposed
public-private agreement and publish notice of the hearing one (1)
time in accordance with IC 5-3-1 at least seven (7) days before the
hearing. The notice must include the following:
(1) The date, time, and place of the hearing.
(2) The subject matter of the hearing.
(3) A description of the agreement to be awarded.
(4) The recommendation that has been made to award the
agreement to an identified offeror or offerors.
(5) The address and telephone number of the authority.
(l) At the hearing, the authority shall allow the public to be
heard on the proposed public-private agreement.
(m) When the terms and conditions of multiple awards are
specified in the request for proposals, awards may be made to
more than one (1) offeror.
Sec. 3. (a) After the procedures required in this chapter have
been completed, the authority shall make a determination as to
whether the successful offeror should be designated as the operator
for the project and shall submit its decision to the governor and the
budget committee.
(b) After review of the authority's determination by the budget
committee, the governor may accept or reject the determination of
the authority. If the governor accepts the determination of the
authority, the governor shall designate the successful offeror as the
operator for the project. The authority shall publish notice of the
designation of the operator one (1) time, in accordance with
IC 5-3-1.
(c) After the designation of the successful offeror as the operator
for the project, the authority may execute the public-private
agreement.
(d) An action to contest the validity of a public-private
agreement entered into under this chapter may not be brought
after the fifteenth day following the publication of the notice of the
designation of the operator under the public-private agreement
under subsection (b).
Sec. 4. The authority may pay a stipulated amount to an
unsuccessful offeror that submits a responsive proposal in response
to a request for proposals under this chapter, in exchange for the
work product contained in that proposal. The use by the authority
or the department of any design element contained in an
unsuccessful proposal is at the sole risk and discretion of the
authority or the department and does not confer liability on the
recipient of the stipulated amount under this section. After
payment of the stipulated amount:
(1) the authority, the department, and the unsuccessful offeror
jointly own the rights to, and may make use of any work
product contained in, the proposal, including the technologies,
techniques, methods, processes, ideas, and information
contained in the proposal, project design, and project
financial plan; and
chapter, if the authority determines that if the records were
made public, the financial or competitive interest of the
authority or offeror would be adversely affected.
(c) Before the authority may consider whether information
submitted by an offeror or under this section is confidential, the
offeror must do the following:
(1) Invoke the exclusion upon submission of the data or other
materials for which protection from disclosure is sought.
(2) Identify the data or other materials for which protection
is sought.
(3) State the reasons why protection is necessary.
(d) Procurement records shall not be interpreted to include
proprietary, commercial, or financial information, balance sheets,
financial statements, escrowed proposal or bid documents,
financial models, or trade secrets provided by the operator with or
in connection with its qualification submittal or proposal. All such
materials:
(1) shall be considered confidential;
(2) are not subject to disclosure, inspection, or copying under
IC 5-14-3; and
(3) are not subject to disclosure, discovery, subpoena, or other
means of legal compulsion for their release.
(e) An inspection of procurement records under this section is
subject to reasonable restrictions to ensure the security and
integrity of the records.
Sec. 7. (a) This section applies to a metropolitan statistical area,
as defined by the United States Office of Management and Budget,
in Indiana that is served by more than one (1) interstate system
highway, street, or road.
(b) As used in this section, "interstate system" has the meaning
set forth in IC 8-23-1-25.
(c) In establishing the route of a qualified project through a
metropolitan statistical area, the authority shall consider routes
that have the least disruptive influence on established businesses
and residents. To the extent practicable, the authority shall
consider using:
(1) an established interstate system highway, street, or road
in the metropolitan statistical area; or
(2) a route that is west of established business corridors in a
less densely used part of the metropolitan statistical area;
as the route of a qualified project to avoid the disruption of
neighborhoods and business areas.
agreement or are otherwise acceptable to the authority.
(4) Maintenance of:
(A) one (1) or more policies of public liability insurance
(copies of which shall be filed with the authority
accompanied by proofs of coverage); or
(B) self-insurance;
each in the form and amount required by the public-private
agreement or otherwise satisfactory to the authority as
reasonably sufficient to insure coverage of tort liability to the
public and employees and to enable the continued operation
of the qualifying project.
(5) If operations are included within the operator's obligations
under the public-private agreement, monitoring of the
maintenance practices of the operator by the authority or
another entity designated by the authority or under the
public-private agreement, and the taking of the actions that
the authority finds appropriate to ensure that the qualifying
project is properly maintained.
(6) Reimbursement to be paid to the authority as set forth in
the public-private agreement for services provided by the
authority.
(7) Filing of appropriate financial statements and reports as
set forth in the public-private agreement or as otherwise in a
form acceptable to the authority on a periodic basis.
(8) Compensation or payments to the operator. Compensation
or payments may include one (1) or more of the following:
(A) A development fee, payable on a lump sum basis,
progress payment basis, time and materials basis, or any
other basis considered appropriate by the authority.
(B) An operations fee, payable on a lump sum basis, time
and material basis, periodic basis, or any other basis
considered appropriate by the authority.
(C) All or part of the revenues, if any, arising out of
operation of the qualifying project.
(D) A maximum rate of return on investment or return on
equity or a combination of the two (2).
(E) In kind services, materials, property, equipment, or
other items.
(F) Compensation in the event of any termination.
(G) Other compensation set forth in the public-private
agreement or otherwise considered appropriate by the
authority.
supplement to the public-private agreement that:
(A) sets forth the complete price or cost to, or payment to
or revenue sharing with, the authority; and
(B) may include the provisions described in section 1 of this
chapter and other provisions required or permitted under
this chapter; and
(3) contain any other provisions related to any aspect of the
development, financing, and operation of a qualifying project
that the parties determine to be appropriate.
(c) Until a supplement to the public-private agreement
described in subsection (b)(2) has been executed, the operator may
not commence active construction, complete development, or
commence operation of a qualifying project or acquire any
leasehold rights or other real property rights in a qualifying
project.
Sec. 3. (a) The authority may fix and revise the amounts of user
fees that an operator may charge and collect for the use of any part
of a qualifying project in accordance with the public-private
agreement. In fixing these amounts, the authority may:
(1) establish maximum amounts for the user fees; and
(2) provide for increases or decreases of the maximum
amounts based upon the indices, methodologies, or other
factors that the authority considers appropriate.
(b) User fees established by the authority for the use of a
qualifying project must be nondiscriminatory and may:
(1) include different user fees based on categories such as
vehicle class, vehicle size, vehicle axles, vehicle weight,
volume, location, traffic congestion, or other means or
classification that the authority determines to be appropriate;
(2) vary by time of day or year; and
(3) be based on one (1) or more factors considered relevant by
the authority, which may include any combination of:
(A) lease payments;
(B) financing costs and charges;
(C) debt repayment, including principal and interest;
(D) costs of development;
(E) costs of operation;
(F) working capital;
(G) reserves;
(H) depreciation;
(I) compensation to the operator;
(J) compensation to the authority; and
qualifying project. The public-private agreement may contain any
other lawful term or condition to which the operator and the
authority mutually agree, including provisions regarding change
orders, dispute resolution, required upgrades to the qualifying
project, tolling policies, changes and modifications to the qualifying
project, unavoidable delays, or provisions for a loan or grant of
public funds for the development or operation, or both, of one (1)
or more qualifying projects.
Sec. 6. To the extent that the authority receives any payment or
compensation under the public-private agreement other than
repayment of a loan or grant or reimbursement for services
provided by the authority or the department to the operator, the
payment or compensation shall be distributed at the direction of
the authority to the:
(1) major moves construction fund established under
IC 8-14-14;
(2) department for deposit in the state highway fund
established by IC 8-23-9-54;
(3) department for use on other projects designated by the
department; or
(4) operator or the authority for debt reduction.
Sec. 7. (a) Upon the termination or expiration of the
public-private agreement, including a termination for default, the
authority may take over the qualifying project and succeed to all
of the right, title, and interest in the qualifying project. The
authority may agree to accept the qualifying project subject to any
liens on revenues previously granted by the operator to any person
providing financing for the qualifying project.
(b) If the authority elects to take over a qualifying project, the
authority may do all or part of the following:
(1) Develop, finance, or operate the project.
(2) Impose, collect, retain, and use user fees, if any, for the
project.
(c) The authority may use any revenues collected under this
section for any lawful purpose, including:
(1) making payments to individuals or entities in connection
with the financing of the qualifying project;
(2) paying development costs of the project;
(3) paying current operation costs of the project or facilities,
including compensation to the authority or the department for
the services of the authority or the department in operating
the qualifying project;
reports prepared by the operator or others, on behalf of the
authority as provided under the public-private agreement;
(5) preparing, negotiating, and executing any change orders
and amendments to the public-private agreement, except
where the authority is the contracting party, in which case the
authority shall execute the change orders and amendments
prepared and negotiated by the department;
(6) issuing other written correspondence and communications
on behalf of the authority as provided under the
public-private agreement;
(7) preparing and issuing noncompliance letters and reports,
warning notices, and default letters to the operator on behalf
of the authority as provided under the public-private
agreement; and
(8) exercising rights and remedies for a breach or default by
the operator on behalf of the authority as provided under the
public-private agreement, except for rights and remedies
relating to financial matters that the department is not
permitted to exercise under applicable law, in which case the
authority shall exercise the rights and remedies.
Chapter 6. Development and Operations Standards for Projects
Sec. 1. The plans and specifications, if any, for each project
developed under this article must comply with:
(1) the department's standards for other projects of a similar
nature, except as otherwise provided in the public-private
agreement; and
(2) any other applicable state or federal standards.
Sec. 2. Unless otherwise provided by federal law, the operator
or any contractor or subcontractor of the operator engaged in the
construction of a project is not required to comply with IC 4-13.6
or IC 5-16 concerning state public works, IC 5-17 concerning
purchases of materials and supplies, or other statutes concerning
procedures for procurement of public works or personal property
as a condition of being awarded and performing work on the
project.
Sec. 3. Each project constructed or operated under this article
is considered to be part of the state highway system designated
under IC 8-23-4-2 for purposes of identification, maintenance
standards, and enforcement of traffic laws.
Sec. 4. An operator may enter into agreements for maintenance
or other services under this article with the department and other
local or state agencies. The authority or the department may:
under this article, including grants, loans, lines of credit, and
guarantees.
Sec. 2. The authority or the department may take any action to
obtain federal, state, or local assistance for a qualifying project
that serves the public purpose of this article and may enter into
any contracts required to receive the assistance. The authority or
the department may determine that it serves the public purpose of
this article for all or part of the costs of a qualifying project to be
paid, directly or indirectly, from the proceeds of a grant, loan, line
of credit, or loan guarantee made by a local, state, or federal
government or any agency or instrumentality of a local, state, or
federal government.
Sec. 3. The authority or the department may agree to make
grants or loans for any combination of the development, financing,
or operation of a qualifying project from amounts received from
the federal, state, or local government or any agency or
instrumentality of the federal, state, or local government.
Sec. 4. The financing of a qualifying project may be in the
amounts and upon the terms and conditions that are determined by
the parties to the public-private agreement.
Sec. 5. For the purpose of financing a qualifying project, the
operator and the authority or the department may do the
following:
(1) Propose to use all or part of the revenues available to
them.
(2) Enter into grant agreements.
(3) Access any designated transportation trust funds.
(4) Access any other funds available to the authority or the
department and the operator.
(5) Accept grants from the authority, the port commission,
any other state infrastructure bank, or any other agency or
entity.
Sec. 6. (a) For the purpose of financing a qualifying project, the
authority may enter into agreements, leases, or subleases with the
department or an operator, or both, and do the following:
(1) Issue bonds, debt, or other obligations under IC 4-4-11,
IC 8-15-2, or IC 8-15.7-9.
(2) Enter into loan agreements or other credit facilities.
(3) Secure any financing with a pledge of, security interest in,
or lien on all or part of a property subject to the agreement,
including all of the party's property interests in the qualifying
project.
must comply with IC 8-14.5-5 except that:
(1) the lease is not required to comply with
IC 8-14.5-5-3(a)(1); and
(2) notwithstanding IC 8-14.5-5-2(a)(2), a lease under this
chapter may be extended from biennium to biennium, with
the extensions not to exceed a lease term of ninety-nine (99)
years unless the department gives notice of nonextension at
least six (6) months before the end of the biennium, in which
event the lease expires at the end of the biennium in which the
notice is given.
Sec. 3. The department shall pay lease rentals for leases that the
department has entered into under this chapter that secure bonds
issued under this chapter from any legally available revenues,
including:
(1) payments received from an operator;
(2) federal highway revenues, subject to the limitations in
IC 8-14.5-7;
(3) distributions from the motor vehicle highway account
under IC 8-14-1-3; and
(4) other funds available to the department for such purpose.
Sec. 4. The bonds or notes issued under this chapter:
(1) constitute the corporate obligations of the authority;
(2) do not constitute an indebtedness of the state within the
meaning or application of any constitutional provision or
limitation; and
(3) are payable solely as to both principal and interest from:
(A) the revenues from a lease to the department, if any;
(B) proceeds of bonds or notes, if any;
(C) investment earnings on proceeds of bonds or notes; or
(D) other funds available to the authority for such purpose.
Chapter 10. Acquisition of Property
Sec. 1. (a) A public entity may dedicate any property interest
that it has for public use as a qualifying project if the public entity
finds that dedication of the property interest will serve the public
purpose of this article. In connection with the dedication, a public
entity may convey any property interest that the public entity has
to the operator, subject to the:
(1) conditions imposed by general law governing conveyances;
and
(2) provisions of this article;
for the consideration that the public entity considers appropriate.
(b) Consideration for a transfer under this section may include
an agreement with the operator to develop, finance, or operate the
qualifying project. The property interests that the public entity
may convey to the operator in connection with a dedication under
this section may include licenses, franchises, easements, or any
other right or interest that the public entity considers appropriate.
Sec. 2. The authority, the department, and an operator may
enter into the leases, licenses, easements, and other grants of
property interests that the authority determines necessary to carry
out this article.
Chapter 11. Law Enforcement
Sec. 1. All law enforcement officers of the state and of each
affected jurisdiction have the same powers and jurisdiction within
the limits of the qualifying project as they have in their respective
areas of jurisdiction.
Sec. 2. Law enforcement officers shall have access to the
qualifying project at any time for the purpose of exercising the law
enforcement officer's powers and jurisdiction. This authority does
not extend to the private offices, buildings, garages, and other
improvements of the operator to any greater degree than the police
power extends to any other private buildings and improvements.
Sec. 3. (a) The traffic and motor vehicle laws of Indiana or, if
applicable, any local jurisdiction apply to conduct on a qualifying
project to the same extent as they apply to conduct on similar
projects in Indiana or the local jurisdiction.
(b) Punishment for infractions and offenses shall be as
prescribed by law for conduct occurring on similar projects in
Indiana or the local jurisdiction.
Chapter 12. Resolution of Disputes
Sec. 1. The authority has exclusive jurisdiction to adjudicate all
matters specifically committed to the authority's jurisdiction by
this article.
Sec. 2. The authority shall establish an expedited method for
resolving disputes between the authority and the parties to a
public-private agreement and shall set forth that method in the
public-private agreement.
Sec. 3. The authority may pay, pursue, mediate, and settle any
claim arising out of a public-private agreement.
Sec. 4. A public-private agreement may permit a party to the
agreement to submit any claim arising under the agreement to
arbitration or alternative dispute resolution under IC 34-57.
Chapter 13. Term of Agreement; Reversion of Property to State
Sec. 1. The term of a public-private agreement, including all
extensions, may not exceed ninety-nine (99) years. For purposes of
measuring the term, the term begins on the date on which
operations of a part of the qualifying project by the operator
commences.
Sec. 2. The authority shall terminate the operator's authority
and duties under the public-private agreement on the date set forth
in the public-private agreement.
Sec. 3. Upon termination of the public-private agreement, the
authority and duties of the operator under this article cease, except
for any duties and obligations that extend beyond the termination
as set forth in the public-private agreement, and the qualifying
project reverts to the authority and shall be dedicated to the
authority for public use.
Chapter 14. Additional Powers of the Authority and the
Department With Respect to Qualifying Projects
Sec. 1. The authority or the department may exercise any
powers provided under this article in participation or cooperation
with any governmental entity and enter into any contracts to
facilitate that participation or cooperation without compliance
with any other statute.
Sec. 2. The authority or the department may make and enter
into all contracts and agreements necessary or incidental to the
performance of the authority's or department's duties and the
execution of the authority's or department's powers under this
article. These contracts or agreements are not subject to any
approvals other than the approval of the authority or the
department, as applicable, and may be for any term of years and
contain any terms that are considered reasonable by the authority
or the department.
Sec. 3. The authority or the department may pay the costs
incurred under a public-private agreement entered into under this
article from any funds legally available to the authority or the
department under this article or any other statute.
Sec. 4. For purposes of this article, the authority or the
department may authorize an operator under a public-private
agreement to perform any of its duties under IC 8-15-3-9,
IC 8-15-3-16, IC 8-15-3-29, IC 8-15-3-30, and IC 8-15-3-33.
Sec. 5. The authority may exercise any of its powers under
IC 8-15-3 as necessary or desirable for the performance of its
duties and the execution of the its powers under this article.
Sec. 6. The department may exercise any of its powers under
IC 8-15-3 as necessary or desirable for the performance of its
duties and the execution of its powers under this article.
Sec. 7. The authority or the department may not take any action
under this chapter that would impair the public-private agreement
entered into under this article.
Sec. 8. (a) The authority may enter into an agreement between
and among the operator, the authority, and the state police
department concerning the provision of law enforcement assistance
with respect to a qualifying project that is the subject of a
public-private agreement under this article.
(b) The authority may enter into arrangements with the state
police department related to costs incurred in providing law
enforcement assistance under this article.
Chapter 15. Prohibited Local Action
Sec. 1. A political subdivision (as defined in IC 36-1-2-13) may
not take any action that would impair a public-private agreement
under this article.
Chapter 16. Prohibited Political Contributions
Sec. 1. The definitions in IC 3-5-2 apply to this chapter to the
extent they do not conflict with the definitions in this article.
Sec. 2. As used in this chapter, "candidate" refers to any of the
following:
(1) A candidate for a state office.
(2) A candidate for a legislative office.
(3) A candidate for a local office.
Sec. 3. As used in this chapter, "committee" refers to any of the
following:
(1) A candidate's committee.
(2) A regular party committee.
(3) A committee organized by a legislative caucus of the house
of representatives of the general assembly.
(4) A committee organized by a legislative caucus of the senate
of the general assembly.
Sec. 4. As used in this chapter, "officer" refers only to either of
the following:
(1) An individual listed as an officer of a corporation in the
corporation's most recent annual report.
(2) An individual who is a successor to an individual described
in subdivision (1).
Sec. 5. For purposes of this chapter, a person is considered to
have an interest in an operator if the person satisfies any of the
following:
(1) The person holds any interest in an operator.
(2) The person is an officer of an operator.
(3) The person is an officer of a person that holds any interest
in an operator.
(4) The person is a political action committee of an operator.
Sec. 6. An operator is considered to have made a contribution
if a contribution is made by a person who has an interest in the
operator.
Sec. 7. An operator or a person who has an interest in an
operator may not make a contribution to a candidate or a
committee during the following periods:
(1) The term during which the operator is a party to a
public-private agreement entered into under this article.
(2) The three (3) years following the final expiration or
termination of the public-private agreement described in
subdivision (1).
Sec. 8. A person who knowingly or intentionally violates this
chapter commits a Class D felony.
maintenance, reconstruction, repair, and control of public
highways, as provided under this chapter.
(5) All money that on May 22, 1933, was to be paid into the state
highway fund under contemplation of any statute in force as of
May 22, 1933.
(6) All money that may at any time be appropriated from the state
treasury.
(7) Any part of the state highway fund unexpended at the
expiration of any fiscal year, which shall remain in the fund and
be available for the succeeding years.
(8) Any money credited to the state highway fund from the motor
vehicle highway account under IC 8-14-1-3(4).
(9) Any money credited to the state highway fund from the
highway road and street fund under IC 8-14-2-3.
(10) Any money credited to the state highway fund under
IC 6-6-1.1-801.5, IC 6-6-4.1-5, or IC 8-16-1-17.1.
(11) Any money distributed to the state highway fund under
IC 8-14-14, IC 8-15.5, or IC 8-15.7.
(b) All expenses incurred in carrying out this chapter shall be paid
out of the state highway fund.
project, or toll road.
Sec. 3. As used in this chapter, "department" refers to the
Indiana department of transportation.
Sec. 4. As used in this chapter, "operator" has the meaning set
forth in IC 8-15.5-2-5 or IC 8-15.7-2-10.
Sec. 5. As used in this chapter, "owner" means a person in
whose name a motor vehicle is registered under:
(1) IC 9-18;
(2) the laws of another state;
(3) the laws of a foreign country; or
(4) the International Registration Plan.
Sec. 6. As used in this chapter, "qualifying project" has the
meaning set forth in IC 8-15.7-2-15.
Sec. 7. As used in this chapter, "toll road" has the meaning set
forth in IC 8-15-2-4(4).
Sec. 8. As used in this chapter, "tollway" has the meaning set
forth in IC 8-15-3-7.
Sec. 9. The owner of a motor vehicle, other than an authorized
emergency vehicle, that is driven or towed through a toll collection
facility on a toll road, tollway, or qualifying project shall pay the
proper toll.
Sec. 10. The department or the authority may adopt and enforce
rules concerning:
(1) the placement and use of automated traffic law
enforcement systems to enforce collection of user fees;
(2) required notification to owners of toll violations;
(3) the process for collection and enforcement of unpaid
amounts;
(4) the amount of fines, charges, and assessments for toll
violations; and
(5) other matters relating to automated traffic law
enforcement systems that the department or the authority
considers appropriate.
Sec. 11. Before enforcing a rule adopted under section 10 of this
chapter, the department, the authority, or an operator must install
advance warning signs along the tollways, toll roads, or qualifying
projects proceeding to the location at which an automated traffic
law enforcement system is located.
Sec. 12. (a) In the prosecution of a toll violation, proof that the
motor vehicle was driven or towed through the toll collection
facility without payment of the proper toll may be shown by a
video recording, a photograph, an electronic recording, or other
appropriate evidence, including evidence obtained by an
automated traffic law enforcement system.
(b) In the prosecution of a toll violation:
(1) it is presumed that any notice of nonpayment was received
on the fifth day after the date of mailing; and
(2) a computer record of the department, the authority, or the
operator of the registered owner of the vehicle is prima facie
evidence of its contents and that the toll violator was the
registered owner of the vehicle at the time of the underlying
event of nonpayment.
Sec. 13. (a) For purposes of this section, "transponder" means
a device, placed on or within a motor vehicle, that is capable of
transmitting information used to assess or collect tolls. A
transponder is "insufficiently funded" when there are no
remaining funds in the account in connection with which the
transponder was issued.
(b) Any police officer of this state may seize a stolen or
insufficiently funded transponder and return it to the department,
the authority, or an operator, except that an insufficiently funded
transponder may not be seized from the holder of an account
sooner than the thirtieth day after the date the department, the
authority, or an operator has sent a notice of delinquency to the
holder of the account.
(c) The department or the authority may enter into an
agreement with one (1) or more persons to market and sell
transponders for use on tollways, toll roads, or qualifying projects.
(d) The department, the authority, or an operator may charge
reasonable fees for initiating, administering, and maintaining
electronic toll collection customer accounts.
(e) Electronic toll collection customer account information,
including contact and payment information and trip data, is
confidential and not subject to disclosure under IC 5-14-3. A
contract for the acquisition, construction, maintenance, or
operation of a tollway, toll road, or qualifying project must ensure
the confidentiality of all electronic toll collection customer account
information.
impliedly authorized by law.
(14) Misrepresentation if unintentional.
(15) Theft by another person of money in the employee's official
custody, unless the loss was sustained because of the employee's
own negligent or wrongful act or omission.
(16) Injury to the property of a person under the jurisdiction and
control of the department of correction if the person has not
exhausted the administrative remedies and procedures provided
by section 7 of this chapter.
(17) Injury to the person or property of a person under supervision
of a governmental entity and who is:
(A) on probation; or
(B) assigned to an alcohol and drug services program under
IC 12-23, a minimum security release program under
IC 11-10-8, a pretrial conditional release program under
IC 35-33-8, or a community corrections program under
IC 11-12.
(18) Design of a highway (as defined in IC 9-13-2-73), toll road
project (as defined in IC 8-15-2-4(4)), tollway (as defined in
IC 8-15-3-7), or project (as defined in IC 8-15.7-2-13) if the
claimed loss occurs at least twenty (20) years after the public
highway, toll road project, tollway, or project was designed or
substantially redesigned; except that this subdivision shall not be
construed to relieve a responsible governmental entity from the
continuing duty to provide and maintain public highways in a
reasonably safe condition.
(19) Development, adoption, implementation, operation,
maintenance, or use of an enhanced emergency communication
system.
(20) Injury to a student or a student's property by an employee of
a school corporation if the employee is acting reasonably under a
discipline policy adopted under IC 20-33-8-7(b).
(21) An error resulting from or caused by a failure to recognize
the year 1999, 2000, or a subsequent year, including an incorrect
date or incorrect mechanical or electronic interpretation of a date,
that is produced, calculated, or generated by:
(A) a computer;
(B) an information system; or
(C) equipment using microchips;
that is owned or operated by a governmental entity. However, this
subdivision does not apply to acts or omissions amounting to
gross negligence, willful or wanton misconduct, or intentional
misconduct. For purposes of this subdivision, evidence of gross
negligence may be established by a party by showing failure of a
governmental entity to undertake an effort to review, analyze,
remediate, and test its electronic information systems or by
showing failure of a governmental entity to abate, upon notice, an
electronic information system error that caused damage or loss.
However, this subdivision expires June 30, 2003.
(22) An act or omission performed in good faith under the
apparent authority of a court order described in IC 35-46-1-15.1
that is invalid, including an arrest or imprisonment related to the
enforcement of the court order, if the governmental entity or
employee would not have been liable had the court order been
valid.
(23) An act taken to investigate or remediate hazardous
substances, petroleum, or other pollutants associated with a
brownfield (as defined in IC 13-11-2-19.3) unless:
(A) the loss is a result of reckless conduct; or
(B) the governmental entity was responsible for the initial
placement of the hazardous substances, petroleum, or other
pollutants on the brownfield.
SECTION 43. IC 36-7.6 IS ADDED TO THE INDIANA CODE AS
A NEW ARTICLE TO READ AS FOLLOWS [EFFECTIVE 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).
(d) An officer elected under subsection (b) serves from the date
of the officer's election until the officer's successor is elected and
qualified.
Sec. 6. (a) The development board shall meet at least quarterly.
(b) The chair of the development board or any two (2) members
of the development board may call a special meeting of the
development board.
(c) Five (5) members of the development board constitute a
quorum.
(d) The affirmative votes of at least five (5) members of the
development board are necessary to authorize any action of the
development authority.
(e) Notwithstanding any other provision of this article, the
minimum of five (5) affirmative votes required under subsection
(d) to take any of the following actions before January 1, 2013,
must include the affirmative vote of the member designated by the
governor to serve as the chair of the board:
(1) Making loans, loan guarantees, or grants or providing any
other funding or financial assistance for projects.
(2) Acquiring or condemning property.
(3) Entering into contracts.
(4) Employing an executive director or any consultants or
technical experts.
(5) Issuing bonds or entering into a lease of a project.
Sec. 7. The development board may adopt the bylaws and rules
that the development board considers necessary for the proper
conduct of the development board's duties and the safeguarding of
the development authority's funds and property.
Sec. 8. (a) The development authority must comply with
IC 5-16-7 (common construction wage), IC 5-22 (public
purchasing), IC 36-1-12 (public work projects), and any applicable
federal bidding statutes and regulations. An eligible political
subdivision that receives a loan, a grant, or other financial
assistance from the development authority or enters into a lease
with the development authority must comply with applicable
federal, state, and local public purchasing and bidding laws and
regulations. However, a purchasing agency (as defined in
IC 5-22-2-25) of an eligible political subdivision may:
(1) assign or sell a lease for property to the development
authority; or
(2) enter into a lease for property with the development
authority;
at any price and under any other terms and conditions as may be
determined by the eligible political subdivision and the
development authority. However, before making an assignment or
sale of a lease or entering into a lease under this section that would
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.