of return through tolls or user fees.
        (4) The Indiana finance authority should be authorized to test the feasibility of entering into agreements with the private sector for the purposes described in subdivision (3) and should be authorized to solicit, evaluate, negotiate, and administer such agreements.
        (5) It is necessary to serve the public interest and to provide for the public welfare by adopting this article for the purposes described in this article.
    Sec. 2. 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. 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.
    Chapter 3. Authority to Enter Into Public-Private Agreements
    Sec. 1. Subject to the other provisions of this article, the authority and a private entity may enter into a public-private agreement with respect to a toll road project. Subject to the requirements of this article, a public-private agreement may provide that the private entity is partially or entirely responsible for any combination of the following activities with respect to the project:
        (1) Planning.
        (2) Design.
        (3) Acquisition.
        (4) Construction.
        (5) Reconstruction.
        (6) Improvement.
        (7) Extension or expansion.
        (8) Operation.
        (9) Repair.
        (10) Management.
        (11) Maintenance.
        (12) Financing.
    Chapter 4. Selection of Operator by Request for Proposals
    Sec. 1. Before entering into a public-private agreement under this article, the authority must issue a request for proposals as set forth in this chapter. A request for proposals for a toll road project may be issued by the authority in one (1) or more phases and may include a request for qualifications.
    Sec. 2. A request for proposals issued by the authority must include the following:
        (1) The factors or criteria that will be used in evaluating the

proposals.
        (2) A statement that a proposal must be accompanied by evidence of financial responsibility as considered appropriate and satisfactory by the authority.
        (3) A statement concerning whether discussions may be conducted with the offerors for the purpose of clarification to assure full understanding of and responsiveness to the solicitation requirements.
        (4) A statement concerning any other information that the authority may consider in evaluating the proposals.
        (5) A statement that, except as otherwise required by law or under order from a court of competent jurisdiction, the authority may not disclose the contents of proposals during:
            (A) discussions; or
            (B) negotiations;
        with eligible offerors to other eligible offerors.
    Sec. 3. Notice of a request for proposals shall be given by publication in accordance with IC 5-3-1.
    Sec. 4. As provided in a request for proposals, discussions may be conducted with the offerors for the purpose of clarification to assure full understanding of and responsiveness to the solicitation requirements.
    Sec. 5. Eligible offerors must be accorded fair and equal treatment with respect to any opportunity for discussion and revision of proposals.
    Sec. 6. (a) The authority may not disclose the contents of proposals during discussions or negotiations with eligible offerors.
    (b) The authority may, in its discretion in accordance with IC 5-14-3, treat as confidential all records relating to discussions or negotiations between the authority and eligible offerors if those records are created while discussions or negotiations are in progress.
    (c) Notwithstanding subsections (a) and (b), and with the exception of portions that are confidential under IC 5-14-3, the terms of the selected offer negotiated under this article shall be available for inspection and copying under IC 5-14-3 after negotiations with the offerors have been completed.
    (d) When disclosing the terms of the selected offer under subsection (c), the authority shall certify that the information being disclosed accurately and completely represents the terms of the selected offer.
    Sec. 7. The authority shall negotiate with one (1) or more

responsible offerors who submit proposals that are determined to be reasonably capable of being selected for a public-private agreement and may seek to obtain a final offer from one (1) or more responsible offerors.
    Sec. 8. After the final offers from responsible offerors have been negotiated under section 7 of this chapter, the authority shall:
        (1) make a preliminary selection of an offeror as the operator for the related toll road project, whose final offer shall be referred to in this article as the "selected offer"; or
        (2) terminate the request for proposal process.
    Sec. 9. If the authority makes a preliminary selection of an operator under section 8 of this chapter, the authority shall schedule a public hearing on the preliminary selection 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 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 selected offeror commences operations under the public-private agreement.
    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.

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), 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) 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;
        (2) vary by time of day or year; or
        (3) be based on one (1) or more factors considered relevant by the authority, which may include any combination of:
            (A) the costs of:
                (i) operation;
                (ii) maintenance; and
                (iii) repair and rehabilitation;
            (B) debt service payments on bonds or other obligations;
            (C) adequacy of working capital;
            (D) depreciation;
            (E) payment of user fees, any state, federal, or local taxes, or payments in lieu of taxes; and
            (F) the sufficiency of income to:
                (i) maintain the toll road project in a sound physical and financial condition to render adequate and efficient service; and
                (ii) induce an operator to enter into a public-private agreement.
    Sec. 5. A public-private agreement may:
        (1) grant an operator a license or franchise to charge and collect tolls for the use of the toll road project;
        (2) authorize the operator to adjust the user fees charged and collected for the use of the toll road project, so long as the amounts charged and collected by the operator do not exceed the maximum amounts established by the authority under section 1 of this chapter;
        (3) provide that any adjustment by the operator permitted under subdivision (2) may be based on such indices, methodologies, or other factors as described in the public-private agreement or as approved by the authority;
        (4) authorize the operator to charge and collect user fees through manual and nonmanual methods, including, but not limited to, automatic vehicle identification systems, electronic toll collection systems, and, to the extent permitted by law, including rules 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; and
        (5) authorize the collection of user fees charges by a third party.
    Sec. 6. (a) After expiration of a public-private agreement, the 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).
    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.

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); and
        (3) 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; and
            (C) 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.

chapter.
    (d) After making the allocations required by subsections (b) and (c), all remaining money received under a public-private agreement under this article shall be allocated to the eligible project account. Money in this account may only be used for the purposes described in section 5(a)(2) and 5(a)(3) of this chapter. The authority may periodically determine that additional amounts are necessary for the purposes described in section 5(a)(2) and transfer those amounts to the administration account.
    Sec. 7. (a) Thirty-four percent (34%) of the money allocated to the eligible project account must be used to make distributions to the department, the northwest Indiana regional development authority, and eligible political subdivisions for eligible projects located in eligible political subdivisions.
    (b) Before July 1, 2006, and each year thereafter, the 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

operation of transportation facilities in Indiana that address the needs identified by the department, through the department's transportation plan and otherwise, by accelerating project delivery, improving safety, reducing congestion, increasing mobility, improving connectivity, increasing capacity, enhancing economic efficiency, promoting economic development, or any combination of those methods.
        (2) This public need may not be wholly satisfied by existing methods of procurement and project delivery in which transportation facilities are developed, financed, or operated.
        (3) Authorizing private entities to do all or part of the development, planning, design, construction, maintenance, repair, rehabilitation, expansion, financing, and operation of one (1) or more transportation facilities may result in the availability of the transportation facilities to the public in a more timely, more efficient, or less costly fashion, thereby serving the public safety and welfare.
    Sec. 2. An action, other than an approval by the authority or the 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.

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;
        (7) bond proceeds;
        (8) equity investments; or
        (9) other receipts;
arising out of or in connection with a qualifying project, including the development, financing, and operation of a qualifying project. The term includes money received as grants, loans, lines of credit, credit guarantees, or otherwise in aid of a qualifying project from the federal government, the state, a political subdivision, or any agency or instrumentality of the federal government, the state, or a political subdivision.
    Sec. 19. "Transportation plan" has the meaning set forth in IC 8-23-1-41.
    Sec. 20. "User fees" means the rates, tolls, or fees imposed for use of, or incidental to, all or part of a qualifying project under a public-private agreement.
    Chapter 3. Formation of an Agreement
    Sec. 1. The authority may exercise the powers granted by this article to carry out:
        (1) the development;
        (2) the financing;
        (3) the operation; or

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 or publication in a newspaper of general circulation, or both, 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 or publication in a newspaper of general circulation, or both, in the manner provided by IC 5-3-1. In addition, proposals may be

solicited directly from potential offerors.
    (g) 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
        (2) the use by the unsuccessful offeror of any part of the work product contained in the proposal is at the sole risk of the unsuccessful offeror and does not confer liability on the authority or the department.
    Sec. 5. In addition to any other rights under this article, in connection with any procurement under this chapter, the authority may:
        (1) withdraw a request for qualifications or a request for proposals at any time and, in its discretion, publish a new request for qualifications or request for proposals;
        (2) decline to award a public-private agreement for any reason;
        (3) request clarifications to any qualification submittal or request for proposals or seek one (1) or more revised proposals or one (1) or more best and final offers;
        (4) modify the terms, provisions, and conditions of a request for qualification, request for proposals, technical specifications, or form of public-private agreement during the pendency of a procurement; and
        (5) interview offerors.
    Sec. 6. (a) After the execution of a public-private agreement and the completion of the process of negotiating all phases or aspects of the agreement, the authority shall make available, upon request, procurement records in accordance with this section. Before the

completion of a procurement under this article, all procurement records are confidential and are not subject to disclosure or inspection under IC 5-14-3. Except as provided by this section, all proceedings, records, contracts, and other records relating to procurement under this article are public records.
    (b) The authority shall declare as confidential under IC 5-14-3-4 and take appropriate action to protect:
        (1) confidential proprietary records that are:
            (A) voluntarily provided by an offeror under a qualifications submittal or proposal filed with the authority or an affected jurisdiction under this chapter under a promise of confidentiality from the authority or affected jurisdiction; and
            (B) used by the authority or affected jurisdiction for purposes related to the development, financing, or operation of a qualifying project; and
        (2) memoranda, working papers, or other records related to qualification submittals and proposals filed under this 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.
    Chapter 5. Public-Private Agreements
    Sec. 1. (a) Before beginning:
        (1) the development;
        (2) the financing;
        (3) the operation; or
        (4) any combination of the development, financing, or operation;
of a qualifying project, the operator must enter into a public-private agreement with the authority. Subject to the other provisions of this article, the authority and a private entity may enter into a public-private agreement with respect to a project. Subject to the requirements of this article, a public-private agreement may provide that the private entity, acting on behalf of the authority, is partially or entirely responsible for any combination of developing, financing, or operating the qualifying project.
    (b) The public-private agreement may, as determined appropriate by the authority for the particular qualifying project, provide for all or part of the following:
        (1) Delivery of performance and payment bonds or other performance security determined suitable by the authority, including letters of credit, United States bonds and notes, parent guaranties, and cash collateral, in connection with the development, financing, or operation of the qualifying project, in the forms and amounts set forth in the public-private agreement or otherwise determined as satisfactory by the authority to protect the authority and payment bond beneficiaries who have a direct contractual relationship with the operator or a subcontractor of the operator to supply labor or material. A payment or performance bond or alternative form of performance security required under a public-private agreement shall not be required for the part of a public-private agreement that includes only design, planning, or financing services, the performance of preliminary studies, or the acquisition of real property.
        (2) Review of plans for any development or operation, or both, of the qualifying project by the authority.
        (3) Inspection of any construction of or improvements to the qualifying project by the authority or another entity designated by the authority or under the public-private agreement to ensure that the construction or improvements

conform to the standards set forth in the public-private 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.
        (9) Compensation or payments to the authority, if any. Compensation or payments may include one (1) or more of the following:
            (A) A concession payment, lease payment, or other fee, which may be payable in a lump sum, on a periodic basis, or on any other basis considered appropriate by the authority.
            (B) Sharing of revenues, if any, from the operation of the qualifying project.
            (C) Payment for any services, materials, equipment, personnel, or other items provided by the authority to the operator under the public-private agreement or in connection with the qualifying project.
            (D) Other compensation set forth in the public-private agreement or otherwise considered appropriate by the authority.
        (10) The date and terms of termination of the operator's authority and duties under this article, and circumstances under which the operator's authority and duties may be terminated before that date.
        (11) Reversion of the qualifying project to the authority at the termination or expiration of the public-private agreement.
        (12) Rights and remedies of the authority if the operator defaults or otherwise fails to comply with the terms of the public-private agreement.
    Sec. 2. (a) In addition to the authority's rights under section 1 of this chapter, the authority may enter into a public-private agreement that is preliminary and that does not include a complete price or cost to, or payment to or revenue sharing with, the authority.
    (b) A public-private agreement described in subsection (a) must:
        (1) include within the operator's scope of services all or part of the:
            (A) project planning;
            (B) advance right-of-way acquisition;
            (C) design and engineering;
            (D) environmental analysis and mitigation;
            (E) surveying;
            (F) conducting transportation and revenue studies; and
            (G) ascertaining the availability of financing;
        for the proposed qualifying project;

public-private agreement that are providing financing for the 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;
        (4) paying the operator for any compensation or payment owing upon termination; and
        (5) paying for all or part of the development, financing, or operation of any other project the authority considers appropriate.
    (d) The full faith and credit of the state or any political subdivision or the authority is not pledged to secure any financing of the operator by the election to take over the qualifying project. Assumption of development or operation, or both, of the qualifying project does not obligate the state or any political subdivision or the authority to pay any obligation of the operator.
    Sec. 8. Any changes in the terms of the public-private agreement agreed to by the parties shall be added to the public-private agreement by written amendment.
    Sec. 9. Notwithstanding any other 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. 10. The public-private agreement may provide for all or part of the development, financing, or operation of phases or segments of the qualifying project.
    Sec. 11. The department and the authority may enter into one (1) or more memoranda of understanding with respect to the implementation and administration of a public-private agreement. The memoranda may provide that the department has responsibility for, and shall administer and oversee certain aspects of the implementation of, the public-private agreement under this article, including:
        (1) undertaking any oversight and monitoring of the operator on behalf of the authority as provided under the public-private agreement;
        (2) reviewing plans for development and operation, as applicable, on behalf of the authority as provided under the public-private agreement;
        (3) granting or denying all consents and approvals on behalf of the authority as provided under the public-private agreement, except for consents and approvals relating to financial matters that the department is not permitted to grant or deny under applicable law, in which case the authority shall execute the consents and approvals prepared by the department;

local or state agencies. The authority or the department may:
        (1) with the assistance of all applicable local and state agencies, establish a unified permitting and licensing process for the processing and issuance of all necessary permits and licenses for 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 or the department may be reimbursed, including, but not limited to, preliminary planning, environmental certification (including the procurement of all necessary environmental permits), right-of-way acquisition, utility relocations and adjustments, and preliminary design of projects under this article.
    Sec. 5. The authority shall seek the cooperation of federal and local agencies to expedite all necessary federal and local permits, licenses, and approvals necessary for projects under this article.
    Chapter 7. Taxation of Operators
    Sec. 1. A project under this article and tangible personal property used exclusively in connection with a project that are:
        (1) owned by the authority or the department and leased, licensed, financed, or otherwise conveyed to an operator; or
        (2) acquired, constructed, or otherwise provided by an operator on behalf of the authority or the department;
under the terms of a public-private agreement are considered to be public property devoted to an essential public and governmental function and purpose. The property, and an operator's leasehold estate or 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. 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 a project 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.
    Sec. 3. 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.
    Chapter 8. Financial Arrangements
    Sec. 1. The authority or the department may do any combination of applying for, executing, or endorsing applications submitted by private entities to obtain federal, state, or local credit

assistance for qualifying projects developed, financed, or operated 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.
        (4) Subject to review by the budget committee established in IC 4-12-1-3 and approval by the budget director appointed under IC 4-12-1-3:
            (A) 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 costs incurred under a public-private agreement; or
            (B) otherwise create a moral obligation of the state to pay all or part of any costs incurred by the authority under a public-private agreement.
    (b) The department and an operator may transfer any interest in property that the department or operator has to the authority to secure the financing.
    Sec. 7. Public funds may be used for the purpose of financing a qualifying project and may be mixed and aggregated with funds provided by or on behalf of the operator or other private entities.
    Sec. 8. For the purpose of financing a qualifying project, the authority, the department, and the operator may apply for, obtain, issue, and use private activity bonds available under any federal law or program.
    Sec. 9. Any bonds, debt, other securities, or other financing issued for the purposes of this article shall not be considered to constitute a debt of the state or any political subdivision of the state or a pledge of the faith and credit of the state or any political subdivision.
    Chapter 9. Issuance of Debt by Authority
    Sec. 1. (a) The authority may, by resolution, issue and sell bonds or notes of the authority for the purpose of providing funds to carry out the provisions of this article with respect to the development, financing, or operation of a project or projects or the refunding of any bonds or notes, together with any costs associated with a transaction.
    (b) Bonds or notes issued under this chapter shall be issued in accordance with IC 8-14.5-6 except that the bonds or notes are not required to comply with IC 8-14.5-6-2, IC 8-14.5-6-3, or IC 8-14.5-6-5(b).
    Sec. 2. (a) The authority may enter into a lease with the department or the operator, or both, of a project or projects financed under this chapter. The department may lease a project financed under this chapter to the authority or an operator under a public-private agreement.

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