2014 Indiana Code TITLE 36. LOCAL GOVERNMENT ARTICLE 7. PLANNING AND DEVELOPMENT CHAPTER 12. ECONOMIC DEVELOPMENT AND POLLUTION CONTROL
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IC 36-7-12
Chapter 12. Economic Development and Pollution Control
IC 36-7-12-1
Application of chapter
Sec. 1. This chapter applies to all units except townships.
As added by Acts 1981, P.L.309, SEC.31.
IC 36-7-12-2
Repealed
(Repealed by P.L.20-1985, SEC.18(a).)
IC 36-7-12-3
Declaration of public purpose
Sec. 3. The financing of single, identified economic development
or pollution control facilities and the provision of a program to
finance multiple, unidentified economic development or pollution
control facilities that promote a substantial likelihood of:
(1) creating or retaining opportunities for gainful employment;
(2) creating business opportunities;
(3) providing reliable water services;
(4) the abatement, reduction, or prevention of pollution; or
(5) the removal or treatment of substances in materials being
processed that otherwise would cause pollution when used;
serve a public purpose and will be of benefit to the health or general
welfare of the unit proposing to issue bonds for the financing or
program or of the unit where the facilities that are to be financed are
located.
As added by Acts 1981, P.L.309, SEC.31. Amended by P.L.25-1987,
SEC.46; P.L.35-1990, SEC.46.
IC 36-7-12-4
Economic development departments and commissions; creation
Sec. 4. If the fiscal body of a unit finds it necessary to finance
economic development or pollution control facilities under this
chapter, the fiscal body may establish a department of economic
development, to be controlled by a commission known as
"__________ Economic Development Commission", designating the
name of the municipality or county.
As added by Acts 1981, P.L.309, SEC.31.
IC 36-7-12-5
Second and third class cities; commission members; appointment;
terms of office
Sec. 5. (a) This section applies to second and third class cities that
establish a department of economic development.
(b) The members of the economic development commission shall
be appointed by the city executive. One (1) of the members shall be
selected by the city executive, one (1) shall be nominated by the
fiscal body of the county in which the city is located, and one (1)
shall be nominated by the city fiscal body.
(c) The economic development commissioners shall take office
upon their appointment, and their terms run from February 1 after
their original appointment, for a period of:
(1) three (3) years, if selected by the city executive;
(2) two (2) years, if nominated by the city fiscal body; and
(3) one (1) year, if nominated by the county fiscal body.
(d) If the ordinance of the city fiscal body establishing the
department of economic development provides for a five (5) member
commission, or if the fiscal body later adopts an ordinance increasing
the membership from three (3) to five (5), two (2) additional
members shall be selected and appointed by the city executive, one
(1) for a term of three (3) years and one (1) for a term of one (1) year
from February 1 after their appointment.
As added by Acts 1981, P.L.309, SEC.31. Amended by Acts 1981,
P.L.44, SEC.54.
IC 36-7-12-6
Towns; commission members; appointment; terms of office
Sec. 6. (a) This section applies to towns that establish a
department of economic development.
(b) The members of the economic development commission shall
be appointed by the town executive. One (1) of the members shall be
selected by the town executive, one (1) shall be nominated by the
fiscal body of the county in which the town is located, and one (1)
shall be nominated by the town fiscal body.
(c) The economic development commissioners shall take office
upon their appointment, and their terms run from February 1 after
their original appointment, for a period of:
(1) three (3) years, if selected by the town executive;
(2) two (2) years, if nominated by the town fiscal body; and
(3) one (1) year, if nominated by the county fiscal body.
As added by Acts 1981, P.L.309, SEC.31.
IC 36-7-12-7
Counties; commission members; appointment; terms of office
Sec. 7. (a) This section applies to counties that establish a
department of economic development.
(b) The members of the economic development commission shall
be appointed by the county executives. One (1) of the members shall
be selected by the county executive, one (1) shall be nominated by
the county fiscal body, and one (1) shall be nominated by the fiscal
body of the most populous municipality located in the county.
(c) The economic development commissioners shall take office
upon their appointment, and their terms run from February 1 after
their original appointment, for a period of:
(1) three (3) years, if selected by the county executive;
(2) two (2) years, if nominated by the county fiscal body; and
(3) one (1) year, if nominated by the fiscal body of the most
populous municipality.
As added by Acts 1981, P.L.309, SEC.31.
IC 36-7-12-8
Consolidated cities; commission members; appointment; terms of
office
Sec. 8. (a) This section applies to consolidated cities that establish
a department of economic development.
(b) The members of the economic development commission shall
be appointed by the city executive. One (1) of the members shall be
selected by the city executive, and two (2) shall be nominated by the
city fiscal body.
(c) The economic development commissioners shall take office
upon their appointment, and their terms run from February 1 after
their original appointment, for a period of:
(1) three (3) years, if selected by the city executive;
(2) two (2) years, for one (1) of the two (2) commissioners
nominated by the city fiscal body; and
(3) one (1) year, for the remaining commissioner nominated by
the city fiscal body.
(d) If the ordinance of the city fiscal body establishing the
department of economic development provides for a five (5) member
commission, or if the fiscal body later adopts an ordinance increasing
the membership from three (3) to five (5), two (2) additional
members shall be selected and appointed by the city executive, one
(1) for a term of three (3) years and one (1) for a term of one (1) year
from February 1 after their appointment.
As added by Acts 1981, P.L.309, SEC.31.
IC 36-7-12-9
Commissioners; selection and nomination; successors in office
Sec. 9. (a) After the adoption of an ordinance establishing a
department of economic development, the clerk of the fiscal body
establishing the department shall promptly notify the executives and
fiscal bodies required to make selections and nominations by this
chapter. The officers required to make selections and nominations
shall do so within fifteen (15) days after receiving that notice. Each
selectee and nominee shall be appointed by the appropriate executive
officer within ten (10) days after he receives the nominations.
(b) At the expiration of the respective terms of each of the original
economic development commissioners, their respective successors
shall be selected and nominated, before the expiration of the term, in
the same manner as the original commissioner, and each succeeding
commissioner shall serve for a term of four (4) years. A
commissioner shall hold over after the expiration of his term until his
successor is appointed and has qualified.
As added by Acts 1981, P.L.309, SEC.31.
IC 36-7-12-10
Commissioners; failure to nominate; vacancies
Sec. 10. (a) If a fiscal body fails to make a nomination within the
time specified by section 9 of this chapter, the executive may select
and appoint a person without a nomination.
(b) If a person appointed as an economic development
commissioner fails to take the oath of office required by section 11
of this chapter within ten (10) days after the notice of his appointment
is mailed to him, or if any commissioner, after qualifying, dies,
resigns, vacates his office, or is removed from office, a new
commissioner shall be appointed to fill the vacancy in the same
manner as the commissioner in respect to whom the vacancy occurs
was appointed. A commissioner appointed under this subsection shall
serve for the remainder of the vacated term.
As added by Acts 1981, P.L.309, SEC.31.
IC 36-7-12-11
Commissioners; oaths; certificates of appointment
Sec. 11. Before beginning his duties, each economic development
commissioner shall take and subscribe an oath of office in the usual
form, to be indorsed upon the certificate of his appointment. The
certificate shall be promptly filed with the clerk of the fiscal body
that established the department.
As added by Acts 1981, P.L.309, SEC.31.
IC 36-7-12-12
Commissions; organizational meetings; officers
Sec. 12. (a) An economic development commission shall meet
within thirty (30) days after its original appointment, at a time and
place designated by the executive of the unit, for the purpose of
organization, and shall meet to reorganize in February of each
succeeding year.
(b) At the meeting required by subsection (a), an economic
development commission shall elect one (1) of its members as
president, one (1) as vice president, and one (1) as secretary. Each
officer shall serve from the date of his election until January 31 after
his election, and until his successor is elected and qualified.
As added by Acts 1981, P.L.309, SEC.31.
IC 36-7-12-13
Commissions; rules; meetings; quorum; approval of actions;
records
Sec. 13. (a) An economic development commission may adopt the
bylaws, rules, and regulations that it considers necessary. Regular or
special meetings shall be held at times and upon notice fixed by the
commission, either by resolution or in accordance with the bylaws,
rules, and regulations adopted.
(b) A majority of the members of an economic development
commission constitutes a quorum.
(c) Actions of an economic development commission must be
approved by a majority of the members of the commission.
(d) The records of an economic development commission are
public records.
As added by Acts 1981, P.L.309, SEC.31. Amended by Acts 1981,
P.L.310, SEC.72.
IC 36-7-12-14
Removal of commissioners from office
Sec. 14. An economic development commissioner may be
removed from office for neglect of duty, incompetency, inability to
perform his duties, or any other good cause, by the executive or fiscal
body that selected or nominated him. The commissioner removed
may obtain judicial review of the removal by filing a complaint in a
circuit or superior court in the county, and the burden of proof is
upon the executive or fiscal body that removed the commissioner.
The cause shall be placed on the advanced calendar and be tried as
other civil causes are tried by the court, without a jury. The court's
judgment may be appealed in the same manner as any civil action.
As added by Acts 1981, P.L.309, SEC.31.
IC 36-7-12-15
Commissioners; expenses and per diem
Sec. 15. An economic development commissioner is not entitled
to any salary, but is entitled to:
(1) reimbursement for expenses necessarily incurred in the
performance of his duties; and
(2) a per diem allowance for each day he attends a commission
meeting, if that allowance:
(A) does not exceed the per diem allowance for members of the
general assembly; and
(B) is authorized by the fiscal body that established the
commission.
As added by Acts 1981, P.L.309, SEC.31.
IC 36-7-12-16
Commissioners; pecuniary interests in matters considered by
commissions
Sec. 16. (a) An economic development commissioner shall
disclose any pecuniary interest in any employment, financing
agreement, or other contract made under this chapter before any
action by the commission on it, and shall not vote on any such matter.
(b) Notwithstanding any other law, a member of the fiscal body of
a unit may have a pecuniary interest in any employment, financing
agreement, or other contract made under this chapter if he discloses
his pecuniary interest before any action by the fiscal body on it and
does not vote on any such matter.
(c) If any property in which an economic development
commissioner or member of a fiscal body of a unit has a pecuniary
interest is property required for the purposes of this chapter, that
property may be acquired, but only by gift or condemnation.
As added by Acts 1981, P.L.309, SEC.31.
IC 36-7-12-17
Commissions; investigatory duties
Sec. 17. (a) An economic development commission shall
investigate, study, and survey the need for additional job
opportunities, industrial diversification, water services, and pollution
control facilities in the unit, and shall recommend action to improve
or promote job opportunities, industrial diversification, water
services, and availability of pollution control facilities in the unit.
(b) As part of an investigation under subsection (a), an economic
development commission may participate in the financing of business
appraisals and financial feasibility studies of the possible purchase of
a business with operations in the commission's jurisdiction by the
employees of that operation through an employee stock ownership
plan (ESOP). The employees must agree to repay the commission's
contribution to the cost of the appraisals and studies if such a
purchase is successful.
As added by Acts 1981, P.L.309, SEC.31. Amended by P.L.169-1990,
SEC.1; P.L.35-1990, SEC.47.
IC 36-7-12-18
Powers of units
Sec. 18. (a) A unit may:
(1) enter into agreements concerning, and acquire by any lawful
means, land or interests in land and personal property needed
for the purposes of this chapter;
(2) exercise its power of eminent domain to acquire unimproved
land, unoccupied economic development facilities, or pollution
control facilities and the land relating to those facilities, for the
purposes of this chapter;
(3) purchase, lease as lessee, construct, remodel, rebuild,
enlarge, or substantially improve economic development or
pollution control facilities, including land, machinery, or
equipment;
(4) lease economic development or pollution control facilities to
users or developers, with or without an option to purchase;
(5) sell economic development or pollution control facilities to
users or developers, for consideration to be paid in installments
or otherwise;
(6) make direct loans to users or developers for the cost of
acquisition, construction, or installation of economic
development or pollution control facilities, including land,
machinery, or equipment, with the loans to be secured by the
pledge of one (1) or more taxable or tax-exempt bonds or other
secured or unsecured debt obligations of the users or
developers;
(7) enter into agreements with users or developers to allow the
users or developers to wholly or partially construct economic
development or pollution control facilities to be acquired by the
unit;
(8) issue taxable or tax-exempt bonds under this chapter for
single or multiple, identified or unidentified, economic
development or pollution control facilities to accomplish the
purposes of this chapter, and secure their payment as provided
in this chapter;
(9) establish reserves from the proceeds of the sale of taxable or
tax-exempt bonds, other funds, or both, to secure the payment
of the principal and interest on the bonds;
(10) lend or deposit the proceeds of bonds to or with a lender for
the purpose of furnishing funds to the lender for the purpose of
making a loan to a specifically identified developer or user for
the financing of specifically identified economic development
or pollution control facilities under this chapter; and
(11) reimburse from bond proceeds expenditures for pollution
control facilities or economic development facilities.
(b) This chapter does not authorize the financing of economic
development facilities for a developer unless any written agreement
that may exist between the developer and the user is fully disclosed
to, and approved by, the economic development commission or the
fiscal body of the unit.
As added by Acts 1981, P.L.309, SEC.31. Amended by P.L.40-1983,
SEC.3; P.L.25-1987, SEC.47; P.L.24-1995, SEC.28.
IC 36-7-12-18.5
Bonding powers
Sec. 18.5. A unit may initiate a program for financing economic
development or pollution control facilities for developers and users
in Indiana through the issuance of taxable or tax-exempt bonds. In
furtherance of this objective, the unit may do any of the following:
(1) Establish eligibility standards for developers and users,
without complying with IC 4-22-2. However, these standards
have the force of law if the standards are adopted after a public
hearing for which notice has been given by publication under
IC 5-3-1.
(2) Contract with any entity securing the payment of bonds
issued under this chapter and authorizing the entity to approve
the developers and users that can finance or refinance economic
development or pollution control facilities with proceeds from
the bond issue secured by that entity.
(3) Lease to a developer or user economic development or
pollution control facilities upon terms and conditions that the
unit considers proper and, with respect to the lease:
(A) charge and collect rents;
(B) terminate the lease upon the failure of the lessee to
comply with any of its obligations under the lease or
otherwise as the lease provides;
(C) include in the lease provisions that the lessee has the
option to renew the term of the lease for such periods and at
such rents as may be determined by the unit or to purchase
any or all of the economic development or pollution control
facilities to which the lease applies.
(4) Lend money, upon such terms and conditions as the unit
considers proper, to a developer or user under an installment
purchase contract or loan agreement to:
(A) finance, reimburse, or refinance the cost of economic
development or pollution control facilities; and
(B) take back a secured or unsecured promissory note
evidencing such a loan or a security interest in the economic
development or pollution control facilities financed or
refinanced with the loan.
(5) Sell or otherwise dispose of any unneeded or obsolete
economic development or pollution control facilities under
terms and conditions determined by the unit.
(6) Maintain, repair, replace, and otherwise improve or cause to
be maintained, repaired, replaced, and otherwise improved any
economic development or pollution control facilities owned by
the unit.
(7) Require any type of security that the unit considers
reasonable and necessary.
(8) Obtain or aid in obtaining property insurance on all
economic development or pollution control facilities owned or
financed, or accept payment if any economic development or
pollution control facilities are damaged or destroyed.
(9) Enter into any agreement, contract, or other instrument with
respect to any insurance, guarantee, letter of credit, or other
form of credit enhancement, accepting payment in such manner
and form as provided in the instrument if a developer or user
defaults, and assign any such insurance, guarantee, letter of
credit, or other form of credit enhancement as security for bonds
issued by the unit.
(10) Finance for eligible developers and users the cost of
economic development or pollution control facilities as set forth
in section 29 of this chapter.
As added by P.L.25-1987, SEC.48.
IC 36-7-12-19
Special tax levy; transfer of money to department of economic
development; adoption and submission of proposed budget
Sec. 19. (a) The fiscal body of a unit may levy a special tax to pay
the costs of operation of its economic development commission, but
this tax may not be used to pay any of the costs attributable to the
acquisition and leasing or sale of economic development or pollution
control facilities, except for advancements to be reimbursed from
bond proceeds.
(b) Any unit having money raised by taxation for any type of
industrial aid or development as authorized by any other statute may
transfer that money to its department of economic development to
carry out the purposes of this chapter.
(c) Before a tax is levied under subsection (a) or money is
transferred under subsection (b), the economic development
commission must:
(1) adopt a proposed budget for the use of the money it will
receive from the levy or transfer; and
(2) submit the budget to the fiscal body of the unit that
established the commission.
The fiscal body may review and modify the proposed budget.
As added by Acts 1981, P.L.309, SEC.31. Amended by Acts 1981,
P.L.310, SEC.73.
IC 36-7-12-20
Use of funds; procedures for letting contracts; employees' bonds
Sec. 20. (a) All tax revenues coming into possession of the
economic development commission shall be deposited, held, and
secured in accordance with the statutes relating to the handling and
investing of public funds. The handling and expenditure of this
money is subject to audit and supervision by the state board of
accounts.
(b) Contracts for construction and equipment of economic
development or pollution control facilities need not be let in
accordance with IC 5-16, IC 5-17, or any other statute relating to
public contracts. However, the construction of waterworks facilities
financed for the public purpose of providing reliable water service
subject to IC 5-16-7.
(c) Any employee of the economic development commission
authorized to receive, disburse, or in any other way handle money or
negotiable securities of the commission shall execute a bond payable
to the state, with surety to consist of a surety or guaranty corporation
qualified to do business in the state. The bond must be in an amount
determined by the commission, and must be conditioned upon the
employee's faithful performance of his duties and the accounting for
all monies and property that may come into his hands or under his
control. The cost of these bonds shall be paid by the commission.
As added by Acts 1981, P.L.309, SEC.31. Amended by P.L.35-1990,
SEC.48.
IC 36-7-12-21
Negotiation of financing terms; adverse competitive effect studies;
preliminary expenses
Sec. 21. (a) An economic development commission may enter into
negotiations with one (1) or more persons concerning the terms and
conditions for financing of economic development or pollution
control facilities.
(b) The commission shall consider whether a proposed economic
development facility may have an adverse competitive effect on
similar facilities already constructed or operating in the unit. In the
case of economic development facilities that are identified at the time
of issuance of the bonds, the adverse competitive effect question must
be considered before issuance of the bonds. In the case of a program
financing under section 18.5 of this chapter, the adverse competitive
effect question need not be considered before the issuance of the
bonds except for those economic development facilities that are
identified at the time of issuance of the bonds, but it must be
considered before financing any proposed economic development
facilities from program funds.
(c) Preliminary expenses in connection with negotiations under
this section may be paid from:
(1) money furnished by the proposed user or developer;
(2) money made available by the state or federal government, or
by any of their departments or agencies; or
(3) money of the commission.
As added by Acts 1981, P.L.309, SEC.31. Amended by P.L.25-1987,
SEC.49.
IC 36-7-12-22
Applicability of zoning laws; consent necessary for financing of
facilities
Sec. 22. (a) Economic development or pollution control facilities
are subject to applicable zoning laws. If a fiscal body of a unit
establishes a department of development, the unit and its economic
development commission have jurisdiction under this chapter
throughout the county, both inside and outside the corporate
boundaries of any municipality.
(b) Notwithstanding subsection (a), economic development
facilities that are to be located within the corporate boundaries of a
municipality may not be financed by a county without the consent of
the fiscal body of the municipality, and economic development
facilities that are to be located outside the corporate boundaries of a
municipality may not be financed by the municipality without the
consent of the fiscal body of the unit in which facilities are to be
located.
(c) Notwithstanding subsection (a), pollution control facilities that
are to be located within the corporate boundaries of a municipality
may not be financed by another unit unless:
(1) the user has applied to the economic development
commission and fiscal body of the municipality for the
financing of the facilities, and the municipality has failed to
adopt a bond, note, or warrant ordinance for the facilities within
sixty (60) days after the date of the application; or
(2) the fiscal body of the municipality has consented to the
financing of the facilities by another unit.
As added by Acts 1981, P.L.309, SEC.31.
IC 36-7-12-23
Evaluative report; exception
Sec. 23. (a) The economic development commission shall prepare
a report that:
(1) briefly describes the proposed economic development or
pollution control facilities;
(2) estimates the number and expense of public works or
services that would be made necessary or desirable by the
proposed facilities, including public ways, schools, water,
sewers, street lights, and fire protection;
(3) estimates the total project costs of the proposed facilities;
(4) for economic development facilities, estimates the number
of jobs and the payroll to be created or saved, or describes the
public benefits provided by a waterworks facility; and
(5) for pollution control facilities, describes the facilities and
how they will abate, reduce, or prevent pollution.
(b) The report shall be submitted to the executive director or
chairman of the plan commission, if any, and if the number of new
jobs estimated exceeds one hundred (100), to the superintendent of
the school corporation where the facilities will be located. The
executive director or chairman of the plan commission and the school
superintendent may formulate their written comments concerning the
report and transmit their comments, if any, to the commission within
five (5) days from the receipt of the report.
(c) In the case of a program financing under section 18.5 of this
chapter, the requirements of this section need be complied with only
when and as a condition precedent to financing proposed economic
development or pollution control facilities from the program funds.
As added by Acts 1981, P.L.309, SEC.31. Amended by P.L.25-1987,
SEC.50; P.L.35-1990, SEC.49.
IC 36-7-12-24
Hearing on proposed financing of facilities; approval by
commission
Sec. 24. (a) The economic development commission shall hold a
public hearing, for itself and on behalf of the fiscal body of the unit
proposing to issue the bonds, on the proposed financing of the
economic development or pollution control facilities, after giving
notice by publication in accordance with IC 5-3-1 in the unit
proposing to issue the bonds and in the municipality, if any, where
the facilities are to be located. However, in the case of a program
financing under section 18.5 of this chapter that is funded with
taxable bonds, the public hearing requirement of this section need not
be complied with until the economic development or pollution
control facilities to be financed with program funds have been
identified.
(b) Upon findings by the commission that:
(1) the proposed financing will be of benefit to the health or
general welfare of the unit proposing to issue the bonds, or the
unit where the facilities are to be located, or both; and
(2) the proposed financing complies with this chapter;
the commission shall, by resolution, approve the financing, including
the form and terms of the financing agreement, the bonds and the
trust indenture (if any). The secretary of the commission shall
transmit the resolution to the fiscal body of the unit proposing to
issue the bonds.
As added by Acts 1981, P.L.309, SEC.31. Amended by Acts 1981,
P.L.45, SEC.28; P.L.25-1987, SEC.51.
IC 36-7-12-25
Approval of proposed financing by unit; authorization bond
issuance; approval of changes
Sec. 25. (a) If the fiscal body of the unit proposing to issue the
bonds finds that the financing approved under section 24 of this
chapter will be of benefit to the health or general welfare of the unit
proposing to issue the bonds the unit where the facilities are to be
located, or both, and complies with this chapter, it may adopt an
ordinance approving the proposed financing in the form that the
financing was approved by the economic development commission
or as modified by the fiscal body in its discretion.
(b) The ordinance may also authorize the issuance of bonds
payable solely from revenues and receipts derived from the financing
agreement or from payments made under a guaranty agreement by
developers, users, or related persons. The bonds are not in any respect
a general obligation of the unit, nor are they payable in any manner
from revenues raised by taxation.
(c) The financing agreements, trust indentures (if any), and bonds
must be executed by the:
(1) executive; and
(2) clerk of the fiscal body;
of the unit approving the financing. These officials may by their
execution approve changes therein without further approval of the
fiscal body or the economic development commission of the unit if
such changes do not affect terms contained in the ordinance pursuant
to section 27(a)(1) through (a)(10) of this chapter and if the ordinance
authorizes these officials to approve such changes.
As added by Acts 1981, P.L.309, SEC.31. Amended by Acts 1982,
P.L.28, SEC.5; P.L.25-1987, SEC.52.
IC 36-7-12-26
Financing agreements; terms
Sec. 26. (a) A financing agreement approved under this chapter
must provide for payments in an amount sufficient to pay the
principal of, premium (if any), and interest on the bonds authorized
for and allocable to the financing of the facilities. However, interest
payments for the anticipated construction period, plus a period of not
more than one (1) year, may be funded in the issue.
(b) The term of a financing agreement may not exceed forty (40)
years from the date of any bonds issued under the financing
agreement. However, a financing agreement does not terminate after
forty (40) years if a default under that agreement remains uncured,
unless the termination is authorized by the terms of the financing
agreement.
(c) If the unit retains an interest in the facilities, the financing
agreement must require the user or the developer to pay all costs of
maintenance, repair, taxes, assessments, insurance premiums,
trustee's fees, and any other expenses relating to the facilities, so that
the unit will not incur any expenses on account of the facilities other
than those that are covered by the payments provided for in the
financing agreement.
As added by Acts 1981, P.L.309, SEC.31. Amended by Acts 1982,
P.L.28, SEC.6; P.L.25-1987, SEC.53.
IC 36-7-12-27
Bonds, notes, or warrants; issuance; terms and procedure; findings
of fact concerning coal gasification powerplant
Sec. 27. (a) Bonds issued by a unit under section 25 of this chapter
may be issued as serial bonds, term bonds, or a combination of both
types. The ordinance of the fiscal body authorizing bonds, notes, or
warrants, or the financing agreement or the trust indenture approved
by the ordinance, must provide:
(1) the manner of their execution, either by the manual or
facsimile signatures of the executive of the unit and the clerk of
the fiscal body;
(2) their date;
(3) their term or terms, which may not exceed forty (40) years,
except as otherwise provided by subsection (e);
(4) their maximum interest rate if fixed rates are used or the
manner in which the interest rate will be determined if variable
or adjustable rates are used;
(5) their denominations;
(6) their form, either coupon or registered;
(7) their registration privileges;
(8) the medium of their payment;
(9) the place or places of their payment;
(10) the terms of their redemption; and
(11) any other provisions not inconsistent with this chapter.
(b) Bonds, notes, or warrants issued under section 25 of this
chapter may be sold at public or private sale for the price or prices,
in the manner, and at the time or times determined by the unit. The
unit may advance all expenses, premiums, and commissions that it
considers necessary or advantageous in connection with their
issuance.
(c) The bonds, notes, or warrants and their authorization, issuance,
sale, and delivery are not subject to any general statute concerning
bonds, notes, or warrants of units.
(d) An action to contest the validity of bonds, notes, or warrants
issued under section 25 of this chapter may not be commenced more
than thirty (30) days after the adoption of the ordinance approving
them under section 25 of this chapter.
(e) This subsection applies only to bonds, notes, or warrants issued
under this chapter after June 30, 2008, that are wholly or partially
payable from tax increment revenues derived from property taxes.
The maximum term or repayment period for the bonds, notes, or
warrants may not exceed:
(1) twenty-five (25) years, unless the bonds, notes, or warrants
were:
(A) issued or entered into before July 1, 2008;
(B) issued or entered into after June 30, 2008, but authorized
by a resolution adopted before July 1, 2008; or
(C) issued or entered into after June 30, 2008, in order to
fulfill the terms of agreements or pledges entered into before
July 1, 2008, with the holders of the bonds, notes, warrants,
or other contractual obligations by or with developers,
lenders, or units, or otherwise prevent an impairment of the
rights or remedies of the holders of the bonds, notes,
warrants, or other contractual obligations; or
(2) thirty (30) years, if the bonds, notes, or warrants were issued
after June 30, 2008, to finance:
(A) an integrated coal gasification powerplant (as defined by
IC 6-3.1-29-6);
(B) a part of an integrated coal gasification powerplant (as
defined by IC 6-3.1-29-6); or
(C) property used in the operation or maintenance of an
integrated coal gasification powerplant (as defined by
IC 6-3.1-29-6);
that received a certificate of public convenience and necessity
from the Indiana utility regulatory commission under IC 8-1-8.5
et seq. before July 1, 2008.
(f) The general assembly makes the following findings of fact with
respect to an integrated coal gasification powerplant (as defined in
IC 6-3.1-29-6) that received a certificate of public convenience and
necessity from the Indiana utility regulatory commission under
IC 8-1-8.5 et seq. before July 1, 2008:
(1) The health, safety, general welfare, and economic and
energy security of the people of the state of Indiana require as
a public purpose of the state the promotion of clean energy,
including clean coal, technologies in Indiana.
(2) These technologies include the integrated coal gasification
powerplant contemplated by this chapter, IC 6-1.1-20-1.1, and
IC 36-7-14.
(3) Investment in the integrated coal gasification powerplant
contemplated by this chapter, IC 6-1.1-20-1.1, and IC 36-7-14
will result in substantial financial and other benefits to the state
and its political subdivisions and the people of Indiana,
including increased employment, tax revenue, and use of
Indiana coal.
(4) It is in the best interest of the state and its citizens to
promote and preserve financial and other incentives for the
integrated coal gasification powerplant.
As added by Acts 1981, P.L.309, SEC.31. Amended by Acts 1982,
P.L.28, SEC.7; P.L.40-1983, SEC.4; P.L.20-1985, SEC.15;
P.L.1-1991, SEC.209; P.L.146-2008, SEC.722.
IC 36-7-12-27.5
Legal representation of commission; conflict of interest; offense
Sec. 27.5. (a) If an attorney represents an economic development
commission, neither he nor a member of his firm or professional
corporation may also represent an applicant for a bond issue from the
commission.
(b) A person who violates this section commits a Class A
misdemeanor.
As added by Acts 1981, P.L.310, SEC.74.
IC 36-7-12-28
Trust indentures securing bonds
Sec. 28. (a) The fiscal body of a unit issuing bonds under this
chapter may secure them by a trust indenture between the unit and a
corporate trustee. The corporate trustee may be any trust company,
national bank, or state bank that is in Indiana and has trust powers.
(b) A trust indenture under this section may:
(1) mortgage the land, any interest in land, or the facilities on
account of which the bonds are issued;
(2) pledge all or part of the payments to be received by the unit;
(3) set forth the rights and remedies of the trustee and the
holders of the bonds, including provisions restricting the
individual right of action of the holders;
(4) contain provisions considered reasonable for protecting and
enforcing the rights and remedies of the holders or lenders,
including covenants setting forth duties of the unit and the
economic development commission regarding:
(A) the construction of the facilities; and
(B) the custody, safeguarding, application, and investment of
revenues received or to be received by the unit on account of
the facilities financed by the issuance of the bonds;
(5) contain provisions regarding the investment of money, the
sale, exchange, or disposal of property, and the manner of
authorizing and making payments, notwithstanding any general
statute relating to these matters; and
(6) provide for the establishment of reserve funds from the
proceeds of the bonds or from other sources to secure the
prompt payment of the principal and interest on them.
As added by Acts 1981, P.L.309, SEC.31. Amended by Acts 1982,
P.L.28, SEC.8; P.L.25-1987, SEC.54.
IC 36-7-12-29
Application of bond proceeds
Sec. 29. (a) Preliminary expenses advanced by a person may be
reimbursed from the proceeds of bonds issued under this chapter. An
economic development commission may provide for a maximum fee
of one percent (1%) of the total amount of the issue to be paid to the
commission from the proceeds of the issue to help in covering its
costs of operation. However, the fee charged by a commission to
cover the costs of operation may not exceed ten thousand dollars
($10,000) per issue for a single project issue or ten thousand dollars
($10,000) per project in the case of program financing under section
18.5 of this chapter.
(b) Any money received from bonds issued under this chapter,
after reimbursement and payment under subsection (a), may be used
for the following purposes:
(1) The payment of the costs of economic development and
pollution control facilities on account of which the bonds are
issued, including both direct financing of such facilities and
program financing under section 18.5 of this chapter.
(2) Issuance expenses for bonds authorized by this chapter.
(3) Interest on bonds authorized by this chapter for the
anticipated construction period of the facilities being financed,
plus interest on bonds authorized by this chapter for a period of
one (1) year after that.
(4) Funding a reserve fund for payment of the principal of,
premium (if any), and interest on bonds issued under this
chapter.
(5) Working capital when financed in conjunction with
economic development or pollution control facilities financed
pursuant to program financing authorized under section 18.5 of
this chapter if the program is funded with proceeds of taxable
bonds.
Until the money is applied under subdivision (1), it is subject to a lien
in favor of the holders of the bonds or the trustee under the trust
indenture, if any.
As added by Acts 1981, P.L.309, SEC.31. Amended by Acts 1982,
P.L.28, SEC.9; P.L.25-1987, SEC.55; P.L.35-1990, SEC.50.
IC 36-7-12-30
Refunding bonds
Sec. 30. (a) If the fiscal body of the unit finds that a refunding of
outstanding bonds issued under this chapter would be of benefit to
the health and general welfare of the unit and would comply with this
chapter, it may authorize the issuance of bonds in accordance with
IC 5-1-5 to refund those outstanding bonds. A savings to the issuing
body as provided in IC 5-1-5-2 is not required for the issuance of the
refunding bonds, or the issuance of bonds to refund refunding bonds.
(b) Refunding bonds issued under this section are payable solely
from revenues and receipts derived from:
(1) financing agreements with the users or developers of the
facilities originally financed by the outstanding bonds, or related
persons; or
(2) from payments made under guaranty agreements by
developers, users, or related persons.
The financing agreements or guaranties may be new financing
agreements or guaranties or amendments of the original financing
agreements or guaranties.
(c) Refunding bonds issued under this section are not in any
respect a general obligation of the unit, nor are they payable in any
manner from revenues raised by taxation.
(d) Sections 18(b), 23, and 24 of this chapter do not apply to the
issuance of refunding bonds under this section.
As added by Acts 1981, P.L.309, SEC.31. Amended by Acts 1982,
P.L.28, SEC.10; P.L.25-1987, SEC.56.
IC 36-7-12-31
Bonds, notes, warrants, proceeds, and interest; exemption from
state taxes
Sec. 31. Bonds, notes, or warrants issued under this chapter and:
(1) proceeds received from their sale by a holder, to the extent
of the holder's cost of acquisition;
(2) proceeds received on their redemption before maturity;
(3) proceeds received at their maturity; and
(4) interest received on them;
are exempt from state taxes as provided by IC 6-8-5.
As added by Acts 1981, P.L.309, SEC.31. Amended by Acts 1982,
P.L.28, SEC.11.
IC 36-7-12-32
Repealed
(Repealed by P.L.2-1987, SEC.53.)
IC 36-7-12-32.1
Exemption from securities registration
Sec. 32.1. Any security, including bonds issued in connection with
a financing under this chapter, is exempt from the registration
requirements of IC 23-19 and other securities registration statutes.
As added by P.L.25-1987, SEC.57. Amended by P.L.27-2007,
SEC.33.
IC 36-7-12-33
Property taxes; liability and exemptions
Sec. 33. (a) A unit is exempt from all property taxes on economic
development or pollution control facilities.
(b) A developer or user is liable for property taxes on economic
development or pollution control facilities as provided by statute.
However, this section does not deny any tax exemption a developer
or user may have under other statutes because of the nature of the
facilities or the developer or user.
As added by Acts 1981, P.L.309, SEC.31. Amended by P.L.25-1987,
SEC.58.
IC 36-7-12-34
Payments received by units; exemption from tax
Sec. 34. Payments received by units under financing agreements
authorized by this chapter are exempt from all taxation.
As added by Acts 1981, P.L.309, SEC.31.
IC 36-7-12-35
Responsibility for construction approval
Sec. 35. The user or developer is responsible for obtaining and
maintaining all approvals and permits required for the construction
of economic development or pollution control facilities under this
chapter.
As added by Acts 1981, P.L.309, SEC.31.
IC 36-7-12-36
Commissions; annual reports
Sec. 36. In order to:
(1) disseminate information describing the benefits of all
economic development commissions;
(2) provide for efficient operations of all commissions; and
(3) allow the Indiana economic development corporation, on a
recommendation basis, to assist all commissions in their
endeavors;
each commission shall file a report, within thirty (30) days after its
initial meeting and on each subsequent January 31, with the fiscal
body that it serves and with the director of the Indiana economic
development corporation. These reports must be in writing on a form
prescribed by the Indiana economic development corporation and
must contain all information required in that form.
As added by Acts 1981, P.L.309, SEC.31. Amended by P.L.1-2006,
SEC.563.
IC 36-7-12-37
Repealed
(Repealed by P.L.40-1983, SEC.6.)
IC 36-7-12-38
Repealed
(Repealed by P.L.25-1987, SEC.60.)
IC 36-7-12-39
Validation of prior authorized bonds
Sec. 39. Any bonds authorized to be issued under the authority of
this chapter by a resolution adopted under section 24 of this chapter
before June 1, 1985, remain valid regardless of any amendments
made to this chapter by P.L.20-1985.
As added by P.L.25-1987, SEC.59.
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