SECTION 1. IC 13-11-2-77 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 77. (a) "Facility", for purposes of IC 13-15-1-3, means a structure or an area of land used for the disposal, treatment, storage, recovery, processing, or transferring of solid waste, hazardous waste, or atomic radiation. The term includes the following:
        (1) A hazardous waste facility.
        (2) An incinerator.
        (3) A solid waste landfill.
        (4) A transfer station.
    (b) "Facility", for purposes of IC 13-17-7, means a single structure, piece of equipment, installation, or operation that:
        (1) emits; or
        (2) has the potential to emit;
a regulated air pollutant.
    (c) "Facility", for purposes of IC 13-18-5, means a building, a structure, equipment, or other stationary item that is located on:
        (1) a single site; or
        (2) contiguous or adjacent sites that are owned by, operated by, or under common control of the same person.

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    (d) "Facility", for purposes of IC 13-21, means a facility, a plant, a works, a system, a building, a structure, an improvement, machinery, equipment, a fixture, or other real or personal property of any nature that is to be used, occupied, or employed for the collection, storage, separation, processing, recovery, treatment, marketing, transfer, or disposal of solid waste.
    (e) "Facility", for purposes of IC 13-25-2, means all buildings, equipment, structures, and other stationary items that are:
        (1) located on a single site or on contiguous or adjacent sites; and
        (2) owned or operated by:
            (A) the same person; or
            (B) any person that controls, is controlled by, or is under common control with the same person.
For purposes of IC 13-25-2-6, the term includes motor vehicles, rolling stock, and aircraft.
     (f) "Facility", for purposes of IC 13-25-4, has the meaning set forth in 42 U.S.C. 9601(9).
    (f) (g) "Facility", for purposes of IC 13-29-1, means a parcel of land or site, together with the structures, equipment, and improvements on or appurtenant to the land or site, which is used or is being developed for the treatment, storage, or disposal of low-level radioactive waste.
    SECTION 2. IC 13-11-2-142.3 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 142.3. "Nonprofit corporation", for purposes of this chapter and IC 13-25-4-8, refers to a nonprofit corporation:
        (1) that is exempt from income taxation under 26 U.S.C. 501;
        (2) for which the primary purpose, as identified in the corporation's articles of incorporation, is to assist and support a political subdivision in a matter of public concern; and
        (3) that has no member affiliated with any other person that is potentially liable for response costs at a facility through any of the following:
            (A) A direct or an indirect familial relationship.
            (B) A contractual, corporate, or financial relationship other than a contractual, corporate, or financial relationship that is created:
                (i) by the instruments by which title to the facility is conveyed or financed; or
                (ii) by a contract for the sale of goods or services.
            (C) The result of a reorganization of a business entity that

was potentially liable for response costs at the facility.
    SECTION 3. IC 13-11-2-148 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 148. (a) "Operator", for purposes of IC 13-18-10, means the person in direct or responsible charge or control of one (1) or more confined feeding operations.
    (b) "Operator", for purposes of IC 13-18-11 and environmental management laws, means the person in direct or responsible charge and supervising the operation of:
        (1) a water treatment plant;
        (2) a wastewater treatment plant; or
        (3) a water distribution system.
    (c) "Operator", for purposes of IC 13-20-6, means a corporation, a limited liability company, a partnership, a business association, a unit, or an individual who is a sole proprietor that is one (1) of the following:
        (1) A broker.
        (2) A person who manages the activities of a transfer station that receives municipal waste.
        (3) A transporter.
    (d) "Operator", for purposes of IC 13-23, except as provided in subsection (e), means a person:
        (1) in control of; or
        (2) having responsibility for;
the daily operation of an underground storage tank.
    (e) "Operator", for purposes of IC 13-23-13, does not include the following:
        (1) A person who:
            (A) does not participate in the management of an underground storage tank;
            (B) is otherwise not engaged in the:
                (i) production;
                (ii) refining; and
                (iii) marketing;
            of regulated substances; and
            (C) holds evidence of ownership, primarily to protect the owner's security interest in the tank.
        (2) A person who:
            (A) does not own or lease, directly or indirectly, the facility or business at which the underground storage tank is located;
            (B) does not participate in the management of the facility or business described in clause (A); and
            (C) is engaged only in:

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                (i) filling;
                (ii) gauging; or
                (iii) filling and gauging;
            the product level in the course of delivering fuel to an underground storage tank.
        (3) A political subdivision (as defined in IC 36-1-2-13) or unit of federal or state government that:
            (A) acquires ownership or control of an underground storage tank on a brownfield because of:
                (i) bankruptcy;
                (ii) foreclosure;
                (iii) tax delinquency, including an acquisition under IC 6-1.1-24 or IC 6-1.1-25;
                (iv) abandonment;
                (v) the exercise of eminent domain, including any purchase of property once an offer to purchase has been tendered under IC 32-24-1-5;
                (vi) receivership;
                (vii) transfer from another political subdivision or unit of federal or state government;
                (viii) acquiring an area needing redevelopment (as defined in IC 36-7-1-3) or conducting redevelopment activities, specifically under IC 36-7-14-22.2, IC 36-7-14-22.5, IC 36-7-15.1-15.1, IC 36-7-15.1-15.2, and IC 36-7-15.1-15.5;
                (ix) other circumstances in which the political subdivision or unit of federal or state government involuntarily acquired an interest in the property because of the political subdivision's or unit's function as sovereign; or
                (x) any other means to conduct remedial actions on a brownfield; and
            (B) is engaged only in activities in conjunction with:
                (i) investigation or remediation of hazardous substances, petroleum, and other pollutants associated with a brownfield, including complying with land use restrictions and institutional controls; or
                (ii) monitoring or closure of an underground storage tank;
            unless existing contamination on the brownfield is exacerbated due to gross negligence or intentional

misconduct by the political subdivision or unit of federal or state government.
    (f) For purposes of subsection (e)(3)(B), reckless, willful, or wanton misconduct constitutes gross negligence.
    SECTION 4. IC 13-11-2-150, AS AMENDED BY P.L.208-2005, SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 150. (a) "Owner", for purposes of IC 13-23 (except as provided in subsections (b), and (c), and (d)) means:
        (1) for an underground storage tank that:
            (A) was:
                (i) in use on November 8, 1984; or
                (ii) brought into use after November 8, 1984;
            for the storage, use, or dispensing of regulated substances, a person who owns the underground storage tank; or
            (B) is:
                (i) in use before November 8, 1984; but
                (ii) no longer in use on November 8, 1984;
            a person who owned the tank immediately before the discontinuation of the tank's use; or
        (2) a person who conveyed ownership or control of the underground storage tank to a political subdivision (as defined in IC 36-1-2-13) or unit of federal or state government because of:
            (A) bankruptcy;
            (B) foreclosure;
            (C) tax delinquency, including a conveyance under IC 6-1.1-24 or IC 6-1.1-25;
            (D) abandonment;
            (E) the exercise of eminent domain, including any purchase of property once an offer to purchase has been tendered under IC 32-24-1-5;
            (F) receivership;
             (G) acquiring an area needing redevelopment (as defined in IC 36-7-1-3) or conducting redevelopment activities, specifically under IC 36-7-14-22.2, IC 36-7-14-22.5, IC 36-7-15.1-15.1, IC 36-7-15.1-15.2, and IC 36-7-15.1-15.5;
            (G) (H) other circumstances in which a political subdivision or unit of federal or state government involuntarily acquired ownership or control because of the political subdivision's or unit's function as sovereign; or
            (H) (I) any other means to conduct remedial actions on a

brownfield;
        if the person was a person described in subdivision (1) immediately before the person conveyed ownership or control of the underground storage tank.
    (b) "Owner", for purposes of IC 13-23-13, does not include a person who:
        (1) does not participate in the management of an underground storage tank;
        (2) is otherwise not engaged in the:
            (A) production;
            (B) refining; and
            (C) marketing;
        of regulated substances; and
        (3) holds indicia of ownership primarily to protect the owner's security interest in the tank.
    (c) "Owner", for purposes of IC 13-23, does not include a political subdivision (as defined in IC 36-1-2-13) or unit of federal or state government that acquired ownership or control of an underground storage tank because of:
        (1) bankruptcy;
        (2) foreclosure;
        (3) tax delinquency, including an acquisition under IC 6-1.1-24 or IC 6-1.1-25;
        (4) abandonment;
        (5) the exercise of eminent domain, including any purchase of property once an offer to purchase has been tendered under IC 32-24-1-5;
        (6) receivership;
        (7) other circumstances in which the political subdivision or unit of federal or state government involuntarily acquired ownership or control because of the political subdivision's or unit's function as sovereign;
        (8) (7) transfer from another political subdivision or unit of federal or state government; or
         (8) acquiring an area needing redevelopment (as defined in IC 36-7-1-3) or conducting redevelopment activities, specifically under IC 36-7-14-22.2, IC 36-7-14-22.5, IC 36-7-15.1-15.1, IC 36-7-15.1-15.2, and IC 36-7-15.1-15.5;
        (9) other circumstances in which the political subdivision or unit of federal or state government involuntarily acquired ownership or control because of the political subdivision's or

unit's function as sovereign; or
        (9) (10) any other means to conduct remedial actions on a brownfield;
unless the political subdivision or unit of federal or state government causes or contributes to the release or threatened release of a regulated substance, in which case the political subdivision or unit of federal or state government is subject to IC 13-23 in the same manner and to the same extent as a nongovernmental entity under IC 13-23.
     (d) "Owner", for purposes of IC 13-23, does not include a nonprofit corporation that acquired ownership or control of an underground storage tank to assist and support a political subdivision's revitalization and reuse of a brownfield for noncommercial purposes, including conservation, preservation, and recreation, unless the nonprofit corporation causes or contributes to the release or threatened release of a regulated substance, in which case the nonprofit corporation is subject to IC 13-23 in the same manner and to the same extent as any other nongovernmental entity under IC 13-23.
    SECTION 5. IC 13-11-2-151, AS AMENDED BY P.L.208-2005, SECTION 11, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 151. (a) "Owner or operator", for purposes of IC 13-24-1, means the following:
        (1) For a petroleum facility, a person who owns or operates the facility.
        (2) For a petroleum facility where title or control has been conveyed because of:
            (A) bankruptcy;
            (B) foreclosure;
            (C) tax delinquency, including a conveyance under IC 6-1.1-24 or IC 6-1.1-25;
            (D) abandonment;
            (E) the exercise of eminent domain, including any purchase of property once an offer to purchase has been tendered under IC 32-24-1-5;
            (F) receivership;
             (G) acquiring an area needing redevelopment (as defined in IC 36-7-1-3) or conducting redevelopment activities, specifically under IC 36-7-14-22.2, IC 36-7-14-22.5, IC 36-7-15.1-15.1, IC 36-7-15.1-15.2, and IC 36-7-15.1-15.5;
            (G) (H) other circumstances in which a political subdivision

(as defined in IC 36-1-2-13) or unit of federal or state government involuntarily acquired title or control because of the political subdivision's or unit's function as sovereign; or
            (H) (I) any other means to conduct remedial actions on a brownfield;
        to a political subdivision or unit of federal or state government, a person who owned, operated, or otherwise controlled the petroleum facility immediately before title or control was conveyed.
    (b) Subject to subsection (c), the term does not include a political subdivision or unit of federal or state government that acquired ownership or control of the facility through:
        (1) bankruptcy;
        (2) foreclosure;
        (3) tax delinquency, including an acquisition under IC 6-1.1-24 or IC 6-1.1-25;
        (4) abandonment;
        (5) the exercise of eminent domain, including any purchase of property once an offer to purchase has been tendered under IC 32-24-1-5;
        (6) receivership;
        (7) other circumstances in which the political subdivision or unit of federal or state government involuntarily acquired title because of the political subdivision's or unit's function as sovereign;
        (8) (7) transfer from another political subdivision or unit of federal or state government; or
         (8) acquiring an area needing redevelopment (as defined in IC 36-7-1-3) or conducting redevelopment activities, specifically under IC 36-7-14-22.2, IC 36-7-14-22.5, IC 36-7-15.1-15.1, IC 36-7-15.1-15.2, and IC 36-7-15.1-15.5;
        (9) other circumstances in which the political subdivision or unit of federal or state government involuntarily acquired ownership or control because of the political subdivision's or unit's function as sovereign; or
        (9) (10) any other means to conduct remedial actions on a brownfield.
    (c) The term includes a political subdivision or unit of federal or state government that causes or contributes to the release or threatened release of a regulated substance, in which case the political subdivision or unit of federal or state government is subject to IC 13-24-1:

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        (1) in the same manner; and
        (2) to the same extent;
as a nongovernmental entity under IC 13-24-1.
    (d) The term does not include a person who:
        (1) does not participate in the management of a petroleum facility;
        (2) is otherwise not engaged in the:
            (A) production;
            (B) refining; and
            (C) marketing;
        of petroleum; and
        (3) holds evidence of ownership in a petroleum facility, primarily to protect the owner's security interest in the petroleum facility.
     (e) The term does not include a nonprofit corporation that acquired ownership or control of a facility to assist and support a political subdivision's revitalization and reuse of a brownfield for noncommercial purposes, including conservation, preservation, and recreation, unless the nonprofit corporation causes or contributes to the release or threatened release of a regulated substance, in which case the nonprofit corporation is subject to IC 13-24-1 in the same manner and to the same extent as any other nongovernmental entity under IC 13-24-1.
    SECTION 6. IC 13-11-2-183 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 183. "Regulated substance", for purposes of this chapter and IC 13-23, includes the following:
        (1) Any substance defined in section 98 of this chapter as a hazardous substance, but excluding any substance regulated as a hazardous waste under:
            (A) Subtitle C of the federal Solid Waste Disposal Act, as amended (42 U.S.C. 6921 through 6939(a)); or
            (B) IC 13-22-2-3.
        (2) Petroleum.
        (3) Any other substance designated by rules adopted by the solid waste management board under IC 13-23-1-2.
    SECTION 7. IC 13-19-5-1, AS AMENDED BY P.L.235-2005, SECTION 171, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 1. The environmental remediation revolving loan program is established to assist in the remediation of brownfields to encourage the rehabilitation, redevelopment, and reuse of real property by political subdivisions by providing grants, loans, forgivable loans, or other financial assistance to political subdivisions

to conduct any of the following activities:
        (1) Identification and acquisition of brownfields within a political subdivision as suitable candidates for redevelopment following the completion of remediation activities.
        (2) Environmental assessment of identified brownfields, including assessment of petroleum contamination, and other activities necessary or convenient to complete the environmental assessments.
        (3) Remediation activities conducted on brownfields, including:
             (A) remediation of petroleum contamination; and
            (B) other activities necessary or convenient to complete remediation activities conducted on brownfields, including clearance of real property.
        (4) The clearance of real property under IC 36-7-14-12.2 or IC 36-7-15.1-7 in connection with remediation activities.
        (5) (4) Other activities in conjunction with assessment and remediation activities necessary or convenient to complete remediation activities on brownfields. prepare a brownfield for redevelopment.
    SECTION 8. IC 13-19-5-2, AS AMENDED BY P.L.235-2005, SECTION 172, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 2. (a) The environmental remediation revolving loan fund is established for the purpose of providing money for loans and other financial assistance, including grants, to or for the benefit of political subdivisions under this chapter. The authority shall administer, hold, and manage the fund.
    (b) Expenses of administering the fund shall be paid from money in the fund.
    (c) The fund consists of the following:
        (1) Appropriations made by the general assembly.
        (2) Grants and gifts intended for deposit in the fund.
        (3) Repayments of loans and other financial assistance, including premiums, interest, and penalties.
        (4) Proceeds from the sale of loans and other financial assistance under section 9 of this chapter.
        (5) Interest, premiums, gains, or other earnings on the fund.
        (6) Money transferred from the hazardous substances response trust fund under IC 13-25-4-1(a)(9).
         (7) Fees collected under section 7 of this chapter.
    (d) The authority shall invest the money in the fund not currently needed to meet the obligations of the fund in accordance with an

investment policy adopted by the authority. Interest, premiums, gains, or other earnings from these investments shall be credited to the fund.
    (e) As an alternative to subsection (d), the authority may invest or cause to be invested all or a part of the fund in a fiduciary account with a trustee that is a financial institution. Notwithstanding any other law, any investment may be made by the trustee in accordance with at least one (1) trust agreement or indenture. A trust agreement or indenture may allow disbursements by the trustee to:
        (1) the authority;
        (2) a political subdivision;
        (3) the Indiana bond bank; or
        (4) any person to which the authority, the Indiana bond bank, or a political subdivision is obligated, including a trustee that is a financial institution for a grantor trust;
as provided in the trust agreement or indenture. The budget agency must approve any trust agreement or indenture before its execution.
    SECTION 9. IC 13-19-5-3, AS AMENDED BY P.L.235-2005, SECTION 173, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 3. (a) The authority shall do the following under this chapter:
        (1) Be responsible for the management of all aspects of the program.
        (2) Prepare and provide program information.
        (3) Negotiate the negotiable aspects of each financial assistance agreement and submit the agreement to the budget agency for approval.
        (4) Sign each financial assistance agreement.
        (5) Review each proposed project and financial assistance agreement to determine if the project meets the credit, economic, or fiscal criteria established by guidelines of the authority.
        (6) Periodically inspect or cause to be inspected projects to determine compliance with this chapter.
        (7) Conduct or cause to be conducted an evaluation concerning the financial ability of a political subdivision to:
            (A) pay a loan or other financial assistance and other obligations evidencing loans or other financial assistance, if required to be paid; and
            (B) otherwise comply with terms of the financial assistance agreement.
        (8) Evaluate or cause to be evaluated the technical aspects of the political subdivision's:

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            (A) environmental assessment of potential brownfield properties;
            (B) proposed remediation; and
            (C) remediation activities conducted on brownfield properties.
        (9) Inspect or cause to be inspected remediation activities conducted under this chapter.
        (10) Act as a liaison with the department to the United States Environmental Protection Agency regarding the program.
        (11) Be a point of contact for political subdivisions concerning questions about the program.
        (12) Enter into memoranda of understanding, as necessary, with the department and the budget agency concerning the administration and management of the fund and the program.
     (b) The authority may do the following under this chapter:
        (1) Undertake activities to make private environmental insurance products available to encourage and facilitate the cleanup and redevelopment of brownfield properties.
        (2) Enter into agreements with political subdivisions to manage any of the following conducted on brownfield properties:
            (A) Environmental assessment activities.
            (B) Environmental remediation activities.
    (c) The authority may:
        (1) negotiate with;
        (2) select; and
        (3) contract with;
one (1) or more insurers to provide insurance products as described in subsection (b)(1).
    (d) Notwithstanding IC 13-23, IC 13-24-1, and IC 13-25-4, the authority is not liable for any contamination addressed by the authority under an agreement under subsection (b)(2) unless existing contamination on the brownfield is exacerbated due to gross negligence or intentional misconduct by the authority.
    (e) For purposes of subsection (d), reckless, willful, or wanton misconduct constitutes gross negligence.
    (f) The authority is entitled to the same governmental immunity afforded a political subdivision under IC 34-13-3-3(23) for any act taken to investigate or remediate hazardous substances, petroleum, or other pollutants associated with a brownfield under an agreement under subsection (b)(2).
    SECTION 10. IC 13-19-5-7, AS AMENDED BY P.L.235-2005,

SECTION 175, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 7. (a) The authority may provide services to a political subdivision person (as defined in IC 13-11-2-158(a)) in connection with a loan or other financial assistance, including advisory and other services, technical assistance, and liability clarification, and may charge assess and collect a fee for:
        (1) services provided to offset the costs of providing the services; and
        (2) costs and services incurred in the review or consideration of an application for a proposed loan or other financial assistance to or for the benefit of a political subdivision under this chapter, regardless of whether the application is approved or rejected.
    (b) A political subdivision may pay fees charged under this section.
     (c) The authority shall adopt guidelines for the assessment and collection of fees under this section.
    (d) Fees collected under this section shall be deposited in the fund.
    SECTION 11. IC 13-19-5-8, AS AMENDED BY P.L.235-2005, SECTION 176, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 8. The authority may use a priority ranking system in making loans and providing other financial assistance under this chapter based on the following:
        (1) Socioeconomic distress in an area, as determined by the poverty level and unemployment rate in the area.
        (2) The technical evaluation by the department under section 3(8)(A) and 3(8)(B) of this chapter.
        (3) Other factors determined by the authority, including the following:
            (A) The number and quality of jobs that would be generated by a project.
            (B) Housing, recreational, and educational needs of communities.
            (C) Any other factors the authority determines will assist in the implementation of this chapter.
    SECTION 12. IC 13-19-5-9, AS AMENDED BY P.L.235-2005, SECTION 177, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 9. (a) A loan or other financial assistance must be used for at least one (1) of the purposes under section 1 of this chapter and may be used for any of the following purposes:

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        (1) To:
            (A) establish guaranties, reserves, or sinking funds, including guaranties, reserves, or sinking funds to secure and pay, in whole or in part, loans or other financial assistance made from sources other than the fund (including financial institutions) for a purpose permitted by this chapter; or
            (B) provide interest subsidies.
        (2) To pay financing charges, including interest on the loan or other financial assistance during remediation and for a reasonable period after the completion of remediation.
        (3) To pay consultant, advisory, and legal fees, and any other costs or expenses resulting from:
            (A) the assessment, planning, or remediation of a brownfield; or
            (B) the loan or other financial assistance.
    (b) The authority shall establish the interest rate or parameters for establishing the interest rate on each loan made under this chapter, including parameters for establishing the amount of interest subsidies.
    (c) The authority, in setting the interest rate or parameters for establishing the interest rate on each loan, may take into account the following:
        (1) Credit risk.
        (2) Environmental enforcement and protection.
        (3) Affordability.
        (4) Other fiscal factors the authority considers relevant, including the program's cost of funds and whether the financial assistance provided to a particular political subdivision is taxable or tax exempt under federal law.
Based on the factors set forth in subdivisions (1) through (4), more than one (1) interest rate may be established and used for loans or other financial assistance to different political subdivisions or for different loans or other financial assistance to the same political subdivision.
    (d) Not more than ten fifty percent (10%) (50%) of the money available in the fund during a state fiscal year may be loaned or otherwise provided to any one (1) political subdivision during that fiscal year.
    (e) Before a political subdivision may receive a loan or other financial assistance, including grants, from the fund, a political subdivision must submit the following:
        (1) Documentation of community and neighborhood comment concerning the use of a brownfield on which remediation

activities will be undertaken after remediation activities are completed.
        (2) A plan for repayment of the loan or other financial assistance, if applicable.
        (3) An approving opinion of a nationally recognized bond counsel if required by the authority.
        (4) A summary of the environmental objectives of the proposed project.
    (f) A political subdivision that receives a loan or other financial assistance from the fund shall enter into a financial assistance agreement. A financial assistance agreement is a valid, binding, and enforceable agreement of the political subdivision.
    (g) The authority may sell or assign:
        (1) loans or evidence of other financial assistance; and
        (2) other obligations of political subdivisions evidencing the loans or other financial assistance from the fund;
at any price and on terms acceptable to the authority. Proceeds of sales or assignments under this subsection shall be deposited in the fund. A sale or an assignment under this subsection does not create a liability or an indebtedness of the state or the authority except, in the case of the authority, strictly in accordance with the sale or assignment terms.
    (h) The authority may pledge loans or evidences of other financial assistance and other obligations of political subdivisions evidencing the loans or other financial assistance from the fund to secure other loans or financial assistance from the fund to or for the benefit of political subdivisions. The terms of a pledge under this subsection must be approved by the budget agency. Notwithstanding any other law, a pledge of property made by the authority and approved by the budget agency under this subsection is binding from the time the pledge is made. Revenues, other money, or other property pledged and then received are immediately subject to the lien of the pledge without any further act. The lien of a pledge is binding against all parties having claims of any kind in tort, contract, or otherwise against the authority, a trustee, or the fund, regardless of whether the parties have notice of a lien. A resolution, an indenture, or other instrument by which a pledge is created is not required to be filed or recorded, except in the records of the authority. An action taken to enforce a pledge under this subsection and to realize the benefits of the pledge is limited to the property pledged. A pledge under this subsection does not create a liability or an indebtedness of the state or the authority except, in the case of the authority, strictly in accordance with the pledge terms.

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    SECTION 13. IC 13-23-5-1 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 1. (a) Subject to section 2 of this chapter, and except as provided in subsection (b), an underground storage tank, whether of single or double wall construction, may not be installed before the effective date of the rules adopted under IC 13-23-1-2 for the purpose of storing regulated substances unless:
        (1) the tank will prevent releases due to corrosion or structural failure for the operational life of the tank;
        (2) the tank is:
            (A) cathodically protected against corrosion;
            (B) constructed of noncorrosive material;
            (C) steel clad with a noncorrosive material; or
            (D) designed to prevent the release or threatened release of any stored substance; and
        (3) the material used in the construction or lining of the tank is compatible with the substance to be stored; and
        (4) after July 1, 2007, all newly installed or replaced piping connected to the tank meets the secondary containment requirements adopted by the board.
    (b) An underground storage tank system that contains alcohol blended fuels composed of greater than fifteen percent (15%) alcohol is a petroleum UST system (as defined in 329 IAC 9-1-36 as in effect January 1, 2007) and may be installed during the period referred to in subsection (a) if the system is otherwise in compliance with rules adopted by the board concerning technical and safety requirements relating to the physical characteristics of underground petroleum storage tanks and ancillary equipment, including dispensing equipment, used in the storing or dispensing of alcohol blended fuels for purposes of:
        (1) IC 13-23-8-3(1)(A); and
        (2) all other provisions of this article.
    (c) Owners and operators of underground storage tank systems that store, carry, or dispense alcohol blended fuels composed of greater than fifteen percent (15%) alcohol that comply with subsection (b) are considered to meet the standards of:
        (1) compatibility under subsection (a)(3); and
        (2) compliance for purposes of:
            (A) IC 13-23-8-3; and
            (B) all other provisions of this article.
    SECTION 14. IC 13-23-8-3, AS AMENDED BY SEA 155-2007,

SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 3. For the purposes of section 2 of this chapter, the following amounts shall be used:
        (1) If the underground petroleum storage tank that is involved in the occurrence for which claims are made:
            (A) is not in compliance with rules adopted by the board concerning technical and safety requirements relating to the physical characteristics of underground petroleum storage tanks before the date the tank is required to be in compliance with the requirements; and
            (B) is in compliance on a date required under the requirements described under section 4 of this chapter at the time a release was discovered;
        the amount is thirty-five thousand dollars ($35,000).
        (2) If the underground petroleum storage tank that is involved in the occurrence for which claims are made:
            (A) is in compliance with rules adopted by the board concerning technical and safety requirements relating to the physical characteristics of underground petroleum storage tanks before the date the tank is required to be in compliance with the requirements; and
            (B) is not a double walled underground petroleum storage tank; with and
            (C) has piping that has does not have secondary containment;
        the amount is twenty-five thousand dollars ($25,000).
         (3) If the underground petroleum storage tank that is involved in the occurrence for which claims are made:
            (A) is in compliance with rules adopted by the board concerning technical and safety requirements relating to the physical characteristics of underground petroleum storage tanks before the date the tank is required to be in compliance with the requirements;
            (B) is not a double walled underground petroleum storage tank; and
            (C) has piping that has secondary containment;
        the amount is twenty-five thousand dollars ($25,000).
        (4) If the underground petroleum storage tank that is involved in the occurrence for which claims are made:
            (A) is in compliance with rules adopted by the board concerning technical and safety requirements relating to the physical characteristics of underground petroleum

storage tanks before the date the tank is required to be in compliance with the requirements;
            (B) is a double walled underground petroleum storage tank; and
            (C) has piping that does not have secondary containment;
        the amount is twenty-five thousand dollars ($25,000).
        (3) (5) If the underground petroleum storage tank that was involved in the occurrence for which claims are made:
            (A) is in compliance with rules adopted by the board concerning technical and safety requirements relating to the physical characteristics of underground petroleum storage tanks before the date the tank is required to be in compliance with the requirements; and
            (B) is a double walled underground petroleum storage tank; with and
            (C) has piping that has secondary containment;
        the amount is twenty thousand dollars ($20,000).
    SECTION 15. IC 13-23-13-16 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 16. (a) A political subdivision or unit of federal or state government that acquired ownership or control of an underground storage tank on a brownfield by any of the means listed in IC 13-11-2-150(c) and IC 13-11-2-151(b) may undertake any activity in conjunction with:
        (1) investigation or remediation of hazardous substances, petroleum, and other pollutants associated with a brownfield, including complying with land use restrictions and institutional controls; or
        (2) monitoring or closure of an underground storage tank;
without being considered as contributing to the existing release or threatened release of a regulated substance on, in, or at the brownfield unless existing contamination on the brownfield is exacerbated due to gross negligence or intentional misconduct by the political subdivision or unit of federal or state government.
    (b) For purposes of subsection (a), reckless, willful, or wanton misconduct constitutes gross negligence.
    SECTION 16. IC 13-23-16 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2007]:
     Chapter 16. Notice of Release, Spill, or Overfill
    Sec. 1. A citation in this chapter to a rule refers to the rule as in

effect on January 1, 2007.
    Sec. 2. If the department receives a report concerning:
        (1) the discovery of released regulated substances at an underground storage tank site or in the surrounding area under 329 IAC 9-4-1(1); or
        (2) a spill or overfill under 329 IAC 9-4-4(a);
the department shall, not more than seven (7) days after receiving the report, provide notice of the release, spill, or overfill to the county health officer of each county in which the release, spill, or overfill occurred.
    Sec. 3. Not more than seven (7) days after receiving a notice from the department under section 2 of this chapter, a county health officer shall do the following:
        (1) Publish notice of the release, spill, or overfill in a newspaper of general circulation in the county health officer's county.
        (2) Provide any other notice of the release, spill, or overfill the county health officer considers necessary or appropriate.
    Sec. 4. Notice provided by a county health officer under section 3 of this chapter must include:
        (1) the same information reported to the department under 329 IAC 9-4-1(1) or 329 IAC 9-4-4(a); and
        (2) any other information the county health officer considers necessary or appropriate.
    SECTION 17. IC 13-25-4-8, AS AMENDED BY P.L.1-2006, SECTION 205, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 8. (a) Except as provided in subsection (b), (c), or (d), a person that is liable under Section 107(a) of CERCLA (42 U.S.C. 9607(a)) for:
        (1) the costs of removal or remedial action incurred by the commissioner consistent with the national contingency plan;
        (2) the costs of any health assessment or health effects study carried out by or on behalf of the commissioner under Section 104(i) of CERCLA (42 U.S.C. 9604(i)); or
        (3) damages for:
            (A) injury to;
            (B) destruction of; or
            (C) loss of;
        natural resources of Indiana;
is liable, in the same manner and to the same extent, to the state under this section.

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    (b) The exceptions provided by Sections 107(b), 107(q), and 107(r) of CERCLA (42 U.S.C. 9607(b), 42 U.S.C. 9607(q), and 42 U.S.C. 9607(r)) to liability otherwise imposed by Section 107(a) of CERCLA (42 U.S.C. 9607(a)) are equally applicable to any liability otherwise imposed under subsection (a).
    (c) Notwithstanding any liability imposed by the environmental management laws, a lender, a secured or unsecured creditor, or a fiduciary is not liable under the environmental management laws, in connection with the release or threatened release of a hazardous substance from a facility unless the lender, the fiduciary, or creditor has participated in the management of the hazardous substance at the facility.
    (d) Notwithstanding any liability imposed by the environmental management laws, the liability of a fiduciary for a release or threatened release of a hazardous substance from a facility that is held by the fiduciary in its fiduciary capacity may be satisfied only from the assets held by the fiduciary in the same estate or trust as the facility that gives rise to the liability.
    (e) Except as provided in subsection (g), a political subdivision (as defined in IC 36-1-2-13) or unit of federal or state government is not liable to the state under this section for costs or damages associated with the presence of a hazardous substance on, in, or at a property in which the political subdivision or unit of federal or state government acquired an interest in the property because of:
        (1) bankruptcy;
        (2) foreclosure;
        (3) tax delinquency, including an acquisition under IC 6-1.1-24 or IC 6-1.1-25;
        (4) abandonment;
        (5) the exercise of eminent domain, including any purchase of property once an offer to purchase has been tendered under IC 32-24-1-5;
        (6) receivership;
        (7) other circumstances in which the political subdivision or unit of federal or state government involuntarily acquired an interest in the property because of the political subdivision's or unit's function as sovereign;
        (8) (7) transfer from another political subdivision or unit of federal or state government; or
         (8) acquiring an area needing redevelopment (as defined in IC 36-7-1-3) or conducting redevelopment activities,

specifically under IC 36-7-14-22.2, IC 36-7-14-22.5, IC 36-7-15.1-15.1, IC 36-7-15.1-15.2, and IC 36-7-15.1-15.5;
         (9) other circumstances in which the political subdivision or unit of federal or state government involuntarily acquired ownership or control because of the political subdivision's or unit's function as sovereign; or
        (9) (10) any other means to conduct remedial actions on a brownfield.
    (f) If a transfer of an interest in property as described in subsection (e) occurs, a person who owned, operated, or otherwise controlled the property immediately before the political subdivision or unit of federal or state government acquired the interest in the property remains liable under this section:
        (1) in the same manner; and
        (2) to the same extent;
as the person was liable immediately before the person's interest in the property was acquired by the political subdivision or unit of federal or state government.
    (g) Notwithstanding subsection (e), a political subdivision or unit of federal or state government that causes or contributes to the release or threatened release of a hazardous substance on, in, or at a property remains subject to this section:
        (1) in the same manner; and
        (2) to the same extent;
as a nongovernmental entity under this section.
    (h) Except as provided in subsection (i), a nonprofit corporation is not liable to the state under this section for costs or damages associated with the presence of a hazardous substance on, in, or at a property in which the nonprofit corporation acquired an interest to assist and support a political subdivision's revitalization and reuse of a brownfield for noncommercial purposes, including conservation, preservation, and recreation.
    (i) Notwithstanding subsection (h), a nonprofit corporation that causes or contributes to a release or threatened release of a hazardous substance on, in, or at a property remains subject to this section:
        (1) in the same manner; and
        (2) to the same extent;
as any other nongovernmental entity under this section.
    (j) A political subdivision or unit of federal or state government that establishes an exemption or defense under subsection (b) or (e)

may undertake any activity related to:
        (1) investigation, removal, or remedial action on a brownfield, including complying with land use restrictions and institutional controls; or
        (2) monitoring or closure of an underground storage tank;
without being considered as contributing to the existing release or threatened release of hazardous substances on, in, or at the brownfield unless existing contamination on the brownfield is exacerbated due to gross negligence or intentional misconduct by the political subdivision or unit of federal or state government.
    (k) For purposes of subsection (j), reckless, willful, or wanton misconduct constitutes gross negligence.
    SECTION 18. IC 13-26-5-2 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 2. A district may do the following:
        (1) Sue or be sued.
        (2) Make contracts in the exercise of the rights, powers, and duties conferred upon the district.
        (3) Adopt and alter a seal and use the seal by causing the seal to be impressed, affixed, reproduced, or otherwise used. However, the failure to affix a seal does not affect the validity of an instrument.
        (4) Adopt, amend, and repeal the following:
            (A) Bylaws for the administration of the district's affairs.
            (B) Rules and regulations for the following:
                (i) The control of the administration and operation of the district's service and facilities.
                (ii) The exercise of all of the district's rights of ownership.
        (5) Construct, acquire, lease, operate, or manage works and obtain rights, easements, licenses, money, contracts, accounts, liens, books, records, maps, or other property, whether real, personal, or mixed, of a person or an eligible entity.
        (6) Assume in whole or in part any liability or obligation of:
            (A) a person;
            (B) a nonprofit water, sewage, or solid waste project system; or
            (C) an eligible entity;
        including a pledge of part or all of the net revenues of a works to the debt service on outstanding bonds of an entity in whole or in part in the district and including a right on the part of the district to indemnify and protect a contracting party from loss or liability

by reason of the failure of the district to perform an agreement assumed by the district or to act or discharge an obligation.
        (7) Fix, alter, charge, and collect reasonable rates and other charges in the area served by the district's facilities to every person whose premises are, whether directly or indirectly, supplied with water or provided with sewage or solid waste services by the facilities for the purpose of providing for the following:
            (A) The payment of the expenses of the district.
            (B) The construction, acquisition, improvement, extension, repair, maintenance, and operation of the district's facilities and properties.
            (C) The payment of principal or interest on the district's obligations.
            (D) To fulfill the terms of agreements made with:
                (i) the purchasers or holders of any obligations; or
                (ii) a person or an eligible entity.
        (8) Except as provided in section 2.5 of this chapter, require connection to the district's sewer system of property producing sewage or similar waste, and require the discontinuance of use of privies, cesspools, septic tanks, and similar structures if:
            (A) there is an available sanitary sewer within three hundred (300) feet of the property line; and
            (B) the district has given written notice by certified mail to the property owner at the address of the property at least ninety (90) days before a date for connection to be stated in the notice; and
            (C) if the property is located outside the district's territory:
                (i) the district has obtained and provided to the property owner (along with the notice required by clause (B)) a letter of recommendation from the local health department that there is a possible threat to the public's health; and
                (ii) if the property is also located within the extraterritorial jurisdiction of a municipal sewage works under IC 13-9-23 or a public sanitation department under IC 36-9-25, the municipal works board or department of public sanitation has acknowledged in writing that the property is within the municipal sewage works or department of public sanitation's

extraterritorial jurisdiction, but the municipal works board or department of public sanitation is unable to provide sewer service.
         However, a district may not require the owner of a property described in this subdivision to connect to the district's sewer system if the property is already connected to a sewer system that has received an NPDES permit and has been determined to be functioning satisfactorily.
        (9) Provide by ordinance for reasonable penalties for failure to connect and also apply to the circuit or superior court of the county in which the property is located for an order to force connection, with the cost of the action, including reasonable attorney's fees of the district, to be assessed by the court against the property owner in the action.
        (10) Refuse the services of the district's facilities if the rates or other charges are not paid by the user.
        (11) Control and supervise all property, works, easements, licenses, money, contracts, accounts, liens, books, records, maps, or other property rights and interests conveyed, delivered, transferred, or assigned to the district.
        (12) Construct, acquire by purchase or otherwise, operate, lease, preserve, and maintain works considered necessary to accomplish the purposes of the district's establishment within or outside the district and enter into contracts for the operation of works owned, leased, or held by another entity, whether public or private.
        (13) Hold, encumber, control, acquire by donation, purchase, or condemnation, construct, own, lease as lessee or lessor, use, and sell interests in real and personal property or franchises within or outside the district for:
            (A) the location or protection of works;
            (B) the relocation of buildings, structures, and improvements situated on land required by the district or for any other necessary purpose; or
            (C) obtaining or storing material to be used in constructing and maintaining the works.
        (14) Upon consent of two-thirds (2/3) of the members of the board, merge or combine with another district into a single district on terms so that the surviving district:
            (A) is possessed of all rights, franchises, and authority of the constituent districts; and
            (B) is subject to all the liabilities, obligations, and duties of

each of the constituent districts, with all rights of creditors of the constituent districts being preserved unimpaired.
        (15) Provide by agreement with another eligible entity for the joint construction of works the district is authorized to construct if the construction is for the district's own benefit and that of the other entity. For this purpose the cooperating entities may jointly appropriate land either within or outside their respective borders if all subsequent proceedings, actions, powers, liabilities, rights, and duties are those set forth by statute.
        (16) Enter into contracts with a person, an eligible entity, the state, or the United States to provide services to the contracting party for any of the following:
            (A) The distribution or purification of water.
            (B) The collection or treatment of sanitary sewage.
            (C) The collection, disposal, or recovery of solid waste.
        (17) Make provision for, contract for, or sell the district's byproducts or waste.
        (18) Exercise the power of eminent domain.
        (19) Remove or change the location of a fence, building, railroad, canal, or other structure or improvement located within or outside the district. If:
            (A) it is not feasible or economical to move the building, structure, or improvement situated in or upon land acquired; and
            (B) the cost is determined by the board to be less than that of purchase or condemnation;
        the district may acquire land and construct, acquire, or install buildings, structures, or improvements similar in purpose to be exchanged for the buildings, structures, or improvements under contracts entered into between the owner and the district.
        (20) Employ consulting engineers, superintendents, managers, and other engineering, construction, and accounting experts, attorneys, bond counsel, employees, and agents that are necessary for the accomplishment of the district's purpose and fix their compensation.
        (21) Procure insurance against loss to the district by reason of damages to the district's properties, works, or improvements resulting from fire, theft, accident, or other casualty or because of the liability of the district for damages to persons or property occurring in the operations of the district's works and improvements or the conduct of the district's activities.

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        (22) Exercise the powers of the district without obtaining the consent of other eligible entities. However, the district shall:
            (A) restore or repair all public or private property damaged in carrying out the powers of the district and place the property in the property's original condition as nearly as practicable; or
            (B) pay adequate compensation for the property.
        (23) Dispose of, by public or private sale or lease, real or personal property determined by the board to be no longer necessary or needed for the operation or purposes of the district.
    SECTION 19. IC 13-26-11-8 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 8. (a) The board shall, by ordinance, establish just and equitable rates or charges for the use of and the service provided by a works. The rates or charges are payable by the owner of each lot, parcel of land, or building that:
        (1) is connected with and uses a works; or
        (2) in any way uses or is served by a works.
    (b) Subject to section 15 of this chapter, the board may periodically change and readjust the rates or charges as provided in this article.
    SECTION 20. IC 13-26-11-14 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 14. (a) The rates or charges established for a class of users of property served shall be extended to cover any additional premises served after the rates or charges are established that are in the same class, without the necessity of hearing or notice.
    (b) Subject to section 15 of this chapter, a change or readjustment of the rates or charges may be made in the same manner as the rates or charges were originally established.
    SECTION 21. IC 13-26-11-15 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 15. (a) A district authority is established in each regional sewage district established under this article.
    (b) The district authority of a regional sewage district consists of the following:
        (1) In the case of a regional sewage district located in one (1) county:
            (A) except as provided in clause (B), the county executive of that county; or
            (B) if the members of the county executive are trustees of the regional sewage district, the members of the county fiscal body.

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        (2) In the case of a regional sewage district located in more than one (1) county, one (1) county executive member, appointed by that member's county executive, from each county in which the district is located.
However, a person who serves on the board of trustees of a district may not be a member of the district authority.
    (c) If a district adopts an ordinance increasing sewer rates and charges at a rate that is greater than five percent (5%) per year, as calculated from the rates and charges in effect from the date of the district's last rate increase before January 1, 2001, the district shall mail, either separately or along with a periodic billing statement, a notice of the new rates and charges to each user of the sewer system who is affected by the increase. The notice:
        (1) shall be mailed not later than seven (7) days after the district adopts the ordinance increasing the rates and charges; and
        (2) must include a statement of a freeholder's rights under this section.
     (d) If subsection (c) applies, fifty (50) freeholders of the district or ten percent (10%) of the district's freeholders, whichever is fewer, may file a written petition objecting to the rates and charges of the district. A petition filed under this subsection must:
        (1) contain the name and address of each petitioner;
        (2) be filed with a member of the district authority, in the county where at least one (1) petitioner resides, not later than thirty (30) days after the district adopts the ordinance establishing the rates and charges; and
        (3) set forth the grounds for the freeholders' objection.
(d) If a petition meeting the requirements of this subsection (c) is filed, the district authority shall investigate and conduct a public hearing on the petition. If more than one (1) petition concerning a particular increase in rates and charges is filed, the district authority shall consider the objections set forth in all the petitions at the same public hearing.
    (e) The district authority shall set the matter for public hearing not less than ten (10) business days but not later than twenty (20) business days after the petition has been filed. The district authority shall send notice of the hearing by certified mail to the district and the petitioner and publish the notice of the hearing in a newspaper of general circulation in each county in the district.
    (f) Upon the date fixed in the notice, the district authority shall hear

the evidence produced and determine whether the increased sewer rates and charges established by the board by ordinance are just and equitable rates and charges, according to the standards set forth in section 9 of this chapter. The district authority, by a majority vote, shall:
        (1) sustain the ordinance establishing the rates and charges;
        (2) sustain the petition; or
        (3) make any other ruling appropriate in the matter.
    (g) The order of the district authority may be appealed by the district or a petitioner to the circuit court of the county in which the district is located. The court shall try the appeal without a jury and shall determine one (1) or both of the following:
        (1) Whether the board of trustees of the district, in adopting the ordinance increasing sewer rates and charges, followed the procedure required by this chapter.
        (2) Whether the increased sewer rates and charges established by the board by ordinance are just and equitable rates and charges, according to the standards set forth in section 9 of this chapter.
Either party may appeal the circuit court's decision in the same manner that other civil cases may be appealed.
    SECTION 22. IC 13-30-9-1 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 1. This chapter applies to actions brought by the state or a private person. However, this chapter does not apply to an action brought by the state if the action arises from a site that:
        (1) is listed on the National Priorities List for hazardous substance response sites (40 CFR 300 et seq.);
        (2) scores at least twenty-five (25) under the Indiana scoring model under 329 IAC 7; or
        (3) is deemed by the commissioner to pose an imminent threat to human health or the environment.
    SECTION 23. IC 13-30-9-2 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 2. A person may, bring an environmental legal action against a regardless of whether the person who caused or contributed to the release of a hazardous substance or petroleum into the surface or subsurface soil or groundwater that poses a risk to human health and the environment, bring an environmental legal action against a person that caused or contributed to the release to recover reasonable costs of a removal or remedial action involving the hazardous substances or petroleum.
    SECTION 24. IC 36-1-7-1 IS AMENDED TO READ AS

FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 1. This chapter applies to the following:
        (1) The state.
        (2) All political subdivisions.
        (3) All state agencies.
         (4) Any of the following created by state law:
            (A) Public instrumentalities.
            (B) Public corporate bodies.
        (4) (5) Another state to the extent authorized by the law of that state.
        (5) (6) Political subdivisions of states other than Indiana, to the extent authorized by laws of the other states.
        (6) (7) Agencies of the federal government, to the extent authorized by federal laws.
    SECTION 25. IC 36-1-7-4 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 4. (a) If an agreement under section 3 of this chapter:
        (1) involves as parties:
             (A) only Indiana political subdivisions; or
            (B) an Indiana political subdivision and:
                (i) a public instrumentality; or
                (ii) a public corporate body;
            created by state law;

        Indiana political subdivision either before or after it the agreement is entered into by the executives executive of the parties; party; and
        (3) delegates to the treasurer or disbursing officer of one (1) of the parties that is an Indiana political subdivision the duty to receive, disburse, and account for all monies of the joint undertaking;
then the approval of the attorney general is not required.
    (b) If subsection (a) does not apply, an agreement under section 3 of this chapter must be submitted to the attorney general for his the attorney general's approval. The attorney general shall approve the agreement unless he the attorney general finds that it does not comply with the statutes, in which case he the attorney general shall detail in writing for the executives of the parties the specific respects in which the agreement does not comply. If the attorney general fails to disapprove the agreement within sixty (60) days after it is submitted to him, the attorney general, it is considered approved.

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    SECTION 26. IC 36-1-7-15, AS AMENDED BY P.L.203-2005, SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 15. (a) As used in this section, "economic development entity" means any of the following:
        (1) A department of redevelopment organized under IC 36-7-14.
         (2) A department of metropolitan development under IC 36-7-15.1.
         (3) A port authority organized under IC 8-10-5. or
         (4) An airport authority organized under IC 8-22-3.
         (5) The Indiana finance authority.
    (b) Notwithstanding section 2 of this chapter, two (2) or more economic development entities may enter into a written agreement under section 3 of this chapter if the agreement is approved by each entity's governing body.
    (c) A party to an agreement under this section may do one (1) or more of the following:
        (1) Except as provided in subsection (d), grant one (1) or more of its powers to another party to the agreement.
        (2) Exercise any power granted to it by a party to the agreement.
        (3) Pledge any of its revenues, including taxes or allocated taxes under IC 36-7-14, IC 36-7-15.1, or IC 8-22-3.5, to the bonds or lease rental obligations of another party to the agreement under IC 5-1-14-4.
    (d) An economic development entity may not grant to another entity the power to tax or to establish an allocation area under IC 8-22-3.5, IC 36-7-14-39, or IC 36-7-15.1.
    (e) An agreement under this section does not have to comply with section 3(a)(5) or 4 of this chapter.
    (f) An action to challenge the validity of an agreement under this section must be brought within thirty (30) days after the agreement has been approved by all the parties to the agreement. After that period has passed, the agreement is not contestable for any cause.
    SECTION 27. IC 36-7-1-3, AS AMENDED BY P.L.185-2005, SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 3. "Area needing redevelopment" means an area in which normal development and occupancy are undesirable or impossible because of any of the following:
        (1) Lack of development.
        (2) Cessation of growth.
        (3) Deteriorated or deteriorating improvements.
         (4) Environmental contamination.

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        (4) (5) Character of occupancy.
        (5) (6) Age.
        (6) (7) Obsolescence.
        (7) (8) Substandard buildings. or
        (8) (9) Other factors that impair values or prevent a normal use or development of property.
    SECTION 28. IC 36-7-1-18, AS AMENDED BY P.L.185-2005, SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 18. "Redevelopment" includes the following activities:
        (1) Acquiring real property in areas needing redevelopment.
        (2) Replatting and determining the proper use of real property acquired.
        (3) Opening, closing, relocating, widening, and improving public ways.
        (4) Relocating, constructing, and improving sewers, utility services, offstreet parking facilities, and levees.
        (5) Laying out and constructing necessary public improvements, including parks, playgrounds, and other recreational facilities.
        (6) Restricting the use of real property acquired according to law.
        (7) Repairing and maintaining buildings acquired, if demolition of those buildings is not considered necessary to carry out the redevelopment plan.
        (8) Rehabilitating real or personal property whether or not acquired, to carry out the redevelopment or urban renewal plan, regardless of whether the real or personal property is acquired by the unit.
         (9) Investigating and remediating environmental contamination on real property to carry out the redevelopment or urban renewal plan, regardless of whether the real property is acquired by the unit.
        (9) (10) Disposing of property acquired on the terms and conditions and for the uses and purposes that best serve the interests of the units served by the redevelopment commission.
        (10) (11) Making payments required or authorized by IC 8-23-17.
        (11) (12) Performing all acts incident to the statutory powers and duties of a redevelopment commission.
    SECTION 29. IC 36-7-1-18.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 18.5. "Remediation" has the meaning set forth in IC 13-11-2-186.

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    SECTION 30. IC 36-7-14-2.5 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 2.5. (a) The assessment, planning, replanning, remediation, development, and redevelopment of economic development areas:
         (1) are public and governmental functions that cannot be accomplished through the ordinary operations of private enterprise because of:
            (1) (A) the necessity for requiring the proper use of the land so as to best serve the interests of the county and its citizens; and
            (2) (B) the costs of these projects;
    (b) The planning, replanning, development, and redevelopment of economic development areas
         (2) will:
            (1) (A) benefit the public health, safety, morals, and welfare;
            (2) (B) increase the economic well-being of the unit and the state; and
            (3) (C) serve to protect and increase property values in the unit and the state;
    (c) The planning, replanning, development, and redevelopment of economic development areas under this chapter
         (3) are public uses and purposes for which public money may be spent and private property may be acquired.
    (d) (b) This section and sections 41 and 43 of this chapter shall be liberally construed to carry out the purposes of this section.
    SECTION 31. IC 36-7-14-11, AS AMENDED BY P.L.185-2005, SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 11. The redevelopment commission shall:
        (1) investigate, study, and survey areas needing redevelopment within the corporate boundaries of the unit;
        (2) investigate, study, determine, and, to the extent possible, combat the causes of areas needing redevelopment;
        (3) promote the use of land in the manner that best serves the interests of the unit and its inhabitants;
        (4) cooperate:
             (A) with the departments and agencies of:
                 (i) the unit; and of
                 (ii) other governmental entities; and
            (B) with:
                (i) public instrumentalities; and
                (ii) public corporate bodies;
            created by state law;

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        in the manner that best serves the purposes of this chapter;
        (5) make findings and reports on their activities under this section, and keep those reports open to inspection by the public at the offices of the department;
        (6) select and acquire the areas needing redevelopment to be redeveloped under this chapter; and
        (7) replan and dispose of the areas needing redevelopment in the manner that best serves the social and economic interests of the unit and its inhabitants.
    SECTION 32. IC 36-7-14-12.2, AS AMENDED BY P.L.185-2005, SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 12.2. (a) The redevelopment commission may do the following:
        (1) Acquire by purchase, exchange, gift, grant, condemnation, or lease, or any combination of methods, any personal property or interest in real property needed for the redevelopment of areas needing redevelopment that are located within the corporate boundaries of the unit.
        (2) Hold, use, sell (by conveyance by deed, land sale contract, or other instrument), exchange, lease, rent, or otherwise dispose of property acquired for use in the redevelopment of areas needing redevelopment on the terms and conditions that the commission considers best for the unit and its inhabitants.
        (3) Sell, lease, or grant interests in all or part of the real property acquired for redevelopment purposes to any other department of the unit or to any other governmental agency for public ways, levees, sewerage, parks, playgrounds, schools, and other public purposes on any terms that may be agreed on.
        (4) Clear real property acquired for redevelopment purposes.
         (5) Enter on or into, inspect, investigate, and assess real property and structures acquired or to be acquired for redevelopment purposes to determine the existence, source, nature, and extent of any environmental contamination, including the following:
            (A) Hazardous substances.
            (B) Petroleum.
            (C) Other pollutants.
        (6) Remediate environmental contamination, including the following, found on any real property or structures acquired for redevelopment purposes:
            (A) Hazardous substances.

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            (B) Petroleum.
            (C) Other pollutants.
        (5) (7) Repair and maintain structures acquired for redevelopment purposes.
        (6) (8) Remodel, rebuild, enlarge, or make major structural improvements on structures acquired for redevelopment purposes.
        (7) (9) Survey or examine any land to determine whether it should be included within an area needing redevelopment to be acquired for redevelopment purposes and to determine the value of that land.
        (8) (10) Appear before any other department or agency of the unit, or before any other governmental agency in respect to any matter affecting:
            (A) real property acquired or being acquired for redevelopment purposes; or
            (B) any area needing redevelopment within the jurisdiction of the commissioners.
        (9) (11) Institute or defend in the name of the unit any civil action.
        (10) (12) Use any legal or equitable remedy that is necessary or considered proper to protect and enforce the rights of and perform the duties of the department of redevelopment.
        (11) (13) Exercise the power of eminent domain in the name of and within the corporate boundaries of the unit in the manner prescribed by section 20 of this chapter.
        (12) (14) Appoint an executive director, appraisers, real estate experts, engineers, architects, surveyors, and attorneys.
        (13) (15) Appoint clerks, guards, laborers, and other employees the commission considers advisable, except that those appointments must be made in accordance with the merit system of the unit if such a system exists.
        (14) (16) Prescribe the duties and regulate the compensation of employees of the department of redevelopment.
        (15) (17) Provide a pension and retirement system for employees of the department of redevelopment by using the Indiana public employees' retirement fund or a retirement plan approved by the United States Department of Housing and Urban Development.
        (16) (18) Discharge and appoint successors to employees of the department of redevelopment subject to subdivision (13); (15).
        (17) (19) Rent offices for use of the department of redevelopment, or accept the use of offices furnished by the unit.

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        (18) (20) Equip the offices of the department of redevelopment with the necessary furniture, furnishings, equipment, records, and supplies.
        (19) (21) Expend, on behalf of the special taxing district, all or any part of the money of the special taxing district.
        (20) (22) Contract for the construction of:
            (A) local public improvements (as defined in IC 36-7-14.5-6) or structures that are necessary for redevelopment of areas needing redevelopment or economic development within the corporate boundaries of the unit; or
            (B) any structure that enhances development or economic development.
        (21) (23) Contract for the construction, extension, or improvement of pedestrian skyways.
        (22) (24) Accept loans, grants, and other forms of financial assistance from the federal government, the state government, a municipal corporation, a special taxing district, a foundation, or any other source.
        (23) (25) Provide financial assistance (including grants and loans) to enable individuals and families to purchase or lease residential units within the district. However, financial assistance may be provided only to individuals and families whose income is at or below the unit's median income for individuals and families, respectively.
        (24) (26) Provide financial assistance (including grants and loans) to neighborhood development corporations to permit them to:
            (A) provide financial assistance for the purposes described in subdivision (23); (25); or
            (B) construct, rehabilitate, or repair commercial property within the district. and
        (25) (27) Require as a condition of financial assistance to the owner of a multiple unit residential structure that any of the units leased by the owner must be leased:
            (A) for a period to be determined by the commission, which may not be less than five (5) years;
            (B) to families whose income does not exceed eighty percent (80%) of the unit's median income for families; and
            (C) at an affordable rate.
    (b) Conditions imposed by the commission under subsection (a)(25) (a)(27) remain in force throughout the period determined under subsection (a)(25)(A), (a)(27)(A), even if the owner sells, leases, or

conveys the property. The subsequent owner or lessee is bound by the conditions for the remainder of the period.
    (c) As used in this section, "pedestrian skyway" means a pedestrian walkway within or outside of the public right-of-way and through and above public or private property and buildings, including all structural supports required to connect skyways to buildings or buildings under construction. Pedestrian skyways constructed, extended, or improved over or through public or private property constitute public property and public improvements, constitute a public use and purpose, and do not require vacation of any public way or other property.
    (d) All powers that may be exercised under this chapter by the redevelopment commission may also be exercised by the redevelopment commission in carrying out its duties and purposes under IC 36-7-14.5.
    SECTION 33. IC 36-7-14-12.3 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 12.3. IC 5-16-7 applies to:
        (1) a person that enters into a contract with a redevelopment commission to perform construction work referred to in section 12.2(a)(4), 12.2(a)(6), 12.2(a)(20), or 12.2(a)(21), 12.2(a)(7), 12.2(a)(22), or 12.2(a)(23) of this chapter; and
        (2) a subcontractor of a person described in subdivision (1);
with respect to the construction work referred to in subdivision (1).
    SECTION 34. IC 36-7-14-14 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 14. (a) A county may contract with a city within the county to have any of the duties and powers listed in sections 11 and 12.2 of this chapter performed by the redevelopment commission of the city.
    (b) A city may contract with the county in which it is located to have any of the duties and powers listed in sections 11 and 12.2 of this chapter performed by the redevelopment commission of the county.
     (c) A city or county may contract with:
        (1) a public instrumentality; or
        (2) a public corporate body;
created by state law to have the powers listed in section 12.2(a)(4) through 12.2(a)(7) of this chapter performed by the public instrumentality or public corporate body.
    (c) (d) A contract made under this section must be for a stated and limited period and may be renewed.
    (d) (e) Whenever a city official acts under a contract made under this section, or whenever permits or other writings are used under such

a contract, the action or use must be in the name of the county redevelopment commission.
    SECTION 35. IC 36-7-14-15, AS AMENDED BY P.L.185-2005, SECTION 11, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 15. (a) Whenever the redevelopment commission finds that:
        (1) an area in the territory under their jurisdiction is an area needing redevelopment;
        (2) the conditions described in IC 36-7-1-3 cannot be corrected in the area by regulatory processes or the ordinary operations of private enterprise without resort to this chapter; and
        (3) the public health and welfare will be benefited by the acquisition and redevelopment of the area under this chapter;
the commission shall cause to be prepared the data described in subsection (b).
    (b) After making a finding under subsection (a), the commission shall cause to be prepared:
        (1) maps and plats showing:
            (A) the boundaries of the area needing redevelopment, the location of the various parcels of property, streets, alleys, and other features affecting the acquisition, clearance, remediation, replatting, replanning, rezoning, or redevelopment of the area, indicating any parcels of property to be excluded from the acquisition; and
            (B) the parts of the area acquired that are to be devoted to public ways, levees, sewerage, parks, playgrounds, and other public purposes under the redevelopment plan;
        (2) lists of the owners of the various parcels of property proposed to be acquired; and
        (3) an estimate of the cost of acquisition and redevelopment.
    (c) After completion of the data required by subsection (b), the redevelopment commission shall adopt a resolution declaring that:
        (1) the area needing redevelopment is a menace to the social and economic interest of the unit and its inhabitants;
        (2) it will be of public utility and benefit to acquire the area and redevelop it under this chapter; and
        (3) the area is designated as a redevelopment project area for purposes of this chapter.
The resolution must state the general boundaries of the redevelopment project area, and that the department of redevelopment proposes to acquire all of the interests in the land within the boundaries, with

certain designated exceptions, if there are any.
    (d) For the purpose of adopting a resolution under subsection (c), it is sufficient to describe the boundaries of the redevelopment project area by its location in relation to public ways or streams, or otherwise, as determined by the commissioners. Property excepted from the acquisition may be described by street numbers or location.
    SECTION 36. IC 36-7-14-21 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 21. (a) The redevelopment commission may proceed with the clearing and replanning of the area described in the resolution before the acquisition of all of that area. It may also proceed with the repair and maintenance of buildings that have been acquired and are not to be cleared, and with the following with respect to environmental contamination:
        (1) Investigation.
        (2) Remediation.
This clearance, repair, and maintenance The redevelopment commission may be carried carry out activities under this subsection by labor employed directly by the commission or by contract. Contracts for clearance may provide that the contractor is entitled to retain and dispose of salvaged material, as a part of the contract price or on the basis of stated prices for the amounts of the various materials actually salvaged.
    (b) All contracts for material or labor under this section shall be let under IC 36-1.
    (c) In the planning and rezoning of the real property acquired, the opening, closing, relocation, and improvement of public ways, and the construction, relocation, and improvement of levees, sewers, parking facilities, and utility services, the redevelopment commission shall proceed in the same manner as private owners of the property. It may negotiate with the proper officers and agencies of the unit to secure the proper orders, approvals, and consents.
    (d) Any construction work required in connection with improvements in the area described in the resolution may be carried out by:
        (1) the appropriate municipal or county department or agency; or
        (2) the department of redevelopment, if:
            (A) all plans, specifications, and drawings are approved by the appropriate department or agency; and
            (B) the statutory procedures for the letting of contracts by the appropriate department or agency are followed by the department of redevelopment.

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    (e) The redevelopment commission may pay any charges or assessments made on account of orders, approval, consents, and construction work under this section, or may agree to pay these assessments in installments as provided by statute in the case of private owners. The commission may:
        (1) by special waiver filed with the municipal works board or county executive, waive the statutory procedure and notices required by law in order to create valid liens on private property; and
        (2) cause any assessments to be spread on a different basis than that provided by statute.
    (f) None of the real property acquired under this chapter may be set aside and dedicated for public ways, parking facilities, sewers, levees, parks, or other public purposes until the redevelopment commission has obtained the consent and approval of the department or agency under whose jurisdiction the property will be placed.
    SECTION 37. IC 36-7-14-30, AS AMENDED BY P.L.185-2005, SECTION 18, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 30. In addition to its authority under any other section of this chapter, the redevelopment commission may plan and undertake urban renewal projects. For purposes of this chapter, an urban renewal project includes undertakings and activities for the elimination and the prevention of the conditions described in IC 36-7-1-3, and may involve any work or undertaking that is performed for those purposes and is related to a redevelopment project, or any rehabilitation or conservation work, or any combination of such an undertaking or work, such as the following:
        (1) Carrying out plans for a program of voluntary or compulsory repair and rehabilitation of buildings or other improvements.
        (2) Acquisition of real property and demolition, removal, or rehabilitation of buildings and improvements on the property when necessary for the following:
            (A) To eliminate unhealthful, unsanitary, or unsafe conditions.
             (B) To mitigate or eliminate environmental contamination.
            (C) To do any of the following:
                (i) Lessen density.
                 (ii) Reduce traffic hazards.
                 (iii) Eliminate uses that are obsolete or otherwise detrimental to the public welfare.
                 (iv) Otherwise remove or prevent the spread of the conditions described in IC 36-7-1-3. or

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                 (v) Provide land for needed public facilities.
        (3) Installation, construction, or reconstruction of streets, utilities, parks, playgrounds, and other improvements necessary for carrying out the objectives of the urban renewal project. and
        (4) The disposition, for uses in accordance with the objectives of the urban renewal project, of any property acquired in the area of the project.
    SECTION 38. IC 36-7-14-32, AS AMENDED BY P.L.185-2005, SECTION 19, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 32. (a) In connection with the planning and undertaking of an urban renewal plan or urban renewal project, the redevelopment commission, municipal, county, public, and private officers, agencies, and bodies have all the rights, powers, privileges, duties, and immunities that they have with respect to a redevelopment plan or redevelopment project, as if all of the provisions of this chapter applicable to a redevelopment plan or redevelopment project were applicable to an urban renewal plan or urban renewal project.
    (b) In addition to its other powers, the redevelopment commission may also:
        (1) make plans for carrying out a program of voluntary repair and rehabilitation of buildings and improvements;
        (2) make plans for the enforcement of laws and regulations relating to the use of land and the use and occupancy of buildings and improvements, and to the compulsory repair, rehabilitation, demolition, or removal of buildings and improvements;
        (3) make preliminary plans outlining urban renewal activities for neighborhoods to embrace two (2) or more urban renewal areas;
        (4) make preliminary surveys, including environmental assessments, to determine if the undertaking and carrying out of an urban renewal project are feasible;
        (5) make plans for the relocation of persons (including families, business concerns, and others) displaced by an urban renewal project;
        (6) make relocation payments to or with respect to persons (including families, business concerns, and others) displaced by an urban renewal project, for moving expenses and losses of property for which reimbursement or compensation is not otherwise made, including the making of payments financed by the federal government; and
        (7) develop, test, and report methods and techniques, and carry out demonstrations and other activities, for the prevention and the

elimination of the conditions described in IC 36-7-1-3 in urban areas