2014 Indiana Code TITLE 36. LOCAL GOVERNMENT ARTICLE 7. PLANNING AND DEVELOPMENT CHAPTER 23. MULTIPLE COUNTY INFRASTRUCTURE AUTHORITY
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IC 36-7-23
Chapter 23. Multiple County Infrastructure Authority
IC 36-7-23-1
"Authority" defined
Sec. 1. As used in this chapter, "authority" refers to a multiple
jurisdiction infrastructure authority established under this chapter.
As added by P.L.346-1989(ss), SEC.7. Amended by P.L.86-1999,
SEC.5.
IC 36-7-23-2
"Board" defined
Sec. 2. As used in this chapter, "board" refers to the board of
directors of the authority.
As added by P.L.346-1989(ss), SEC.7.
IC 36-7-23-3
Repealed
(Repealed by P.L.86-1999, SEC.21.)
IC 36-7-23-3.7
Applicability of chapter
Sec. 3.7. This chapter applies to all units except townships.
As added by P.L.86-1999, SEC.6.
IC 36-7-23-4
Establishment; public body corporate and politic; multiple county
participation; distribution of funds
Sec. 4. (a) A multiple jurisdiction infrastructure authority may be
established under this chapter by:
(1) ordinance of the fiscal body of each unit participating in the
authority; and
(2) if a county is one (1) of the units participating in the
authority, the order of the executive of that county; and
(3) an agreement among the participating units, executed by the
executive of each participating unit following the approval of
the legislative body of each of the participating units.
(b) The authority is a public body corporate and politic. The
authority is separate from the state, but the exercise by the authority
of its powers is an essential governmental function.
(c) An agreement to establish an authority must include:
(1) more than one (1) unit as a participant; and
(2) a formula for distributing funds contributed by the units
participating in the authority.
(d) An authority may add additional participating units at any time
by following the procedures set forth in subsection (a).
(e) A unit may participate in more than one (1) authority.
As added by P.L.346-1989(ss), SEC.7. Amended by P.L.86-1999,
SEC.7.
IC 36-7-23-5
Purpose; activities
Sec. 5. The purpose of the authority is to promote cooperation
among the units participating in the authority in order to assist the
development of the units included in the agreement by doing the
following:
(1) Utilizing private and public sector resources to address
development problems and opportunities.
(2) Planning, developing, rehabilitating, and otherwise
managing infrastructure located in the authority's jurisdiction.
(3) Supplementing, but not supplanting, traditional local or state
responsibilities.
(4) Providing financial resources to local communities to
address their infrastructure needs.
(5) Providing revenue bonding capacity and resources for bond
retirement, or lease rental capacity and resources, that can be
directed to development or recapitalization of infrastructure
located in the authority's jurisdiction.
(6) Providing the means to develop revenue producing
infrastructure ventures, where revenue can be rechanneled back
into the overall infrastructure development effort.
(7) Providing an overall balanced infrastructure investment
strategy that addresses important needs of the participating units
for capital projects.
(8) Providing operating involvement appropriate to each
infrastructure component.
(9) Providing for a continuing and stable source of public
funding for infrastructure development for participating units.
(10) Providing the mechanism to address other regional services
as determined to be appropriate by the board.
As added by P.L.346-1989(ss), SEC.7. Amended by P.L.86-1999,
SEC.8.
IC 36-7-23-6
Repealed
(Repealed by P.L.11-1993, SEC.8.)
IC 36-7-23-7
Eminent domain
Sec. 7. The authority may exercise the power of eminent domain,
with the approval of the executive of the unit affected, for any public
use in the manner provided by IC 32-24-1.
As added by P.L.346-1989(ss), SEC.7. Amended by P.L.2-2002,
SEC.116.
IC 36-7-23-8
Contracts with political subdivisions
Sec. 8. The authority may enter into contracts with a political
subdivision to carry out the purposes of this chapter.
As added by P.L.346-1989(ss), SEC.7.
IC 36-7-23-9
Board of directors
Sec. 9. The powers of the authority are vested in a board of
directors. The board is comprised of the following members:
(1) One (1) member appointed by the executive of each unit
participating in the authority.
(2) One (1) member appointed by the fiscal body of each unit
participating in the authority.
As added by P.L.346-1989(ss), SEC.7. Amended by P.L.86-1999,
SEC.9.
IC 36-7-23-10
Appointed members of board of directors
Sec. 10. (a) A member appointed under section 9 of this chapter
must be a resident of the unit whose officials or representatives make
the appointment.
(b) A member appointed under section 9(1) or 9(2) of this chapter
by a unit executive or unit fiscal body must be an elected official of
the unit whose officials or representatives make the appointment.
As added by P.L.346-1989(ss), SEC.7. Amended by P.L.86-1999,
SEC.10.
IC 36-7-23-11
Terms of office
Sec. 11. (a) A member of the board appointed under section 9 of
this chapter serves a term of four (4) years.
(b) The agreement establishing the authority under this chapter
must provide:
(1) that the terms of the initial members appointed under section
9 of this chapter expire after one (1), two (2), three (3), or four
(4) years; and
(2) for approximately twenty-five percent (25%) of the terms of
the initial members appointed under section 9 of this chapter to
expire in each of the first four (4) years that the agreement is in
effect.
As added by P.L.346-1989(ss), SEC.7. Amended by P.L.86-1999,
SEC.11.
IC 36-7-23-12
Vacancy on board of directors
Sec. 12. The officials responsible for appointing members of the
board shall fill a vacancy on the board among the members appointed
under section 9 of this chapter by appointment for the unexpired
term.
As added by P.L.346-1989(ss), SEC.7. Amended by P.L.86-1999,
SEC.12.
IC 36-7-23-13
Compensation and expenses of board members
Sec. 13. (a) A member of the board is entitled to reimbursement
for traveling expenses and other expenses actually incurred in
connection with the member's duties, as provided in the state travel
policies and procedures established by the department of
administration and approved by the budget agency.
(b) A member of the board is not entitled to either a salary or a per
diem for services rendered in connection with the member's duties.
As added by P.L.346-1989(ss), SEC.7. Amended by P.L.86-1999,
SEC.13.
IC 36-7-23-14
Repealed
(Repealed by P.L.86-1999, SEC.21.)
IC 36-7-23-15
Officers of board of directors
Sec. 15. The members shall elect:
(1) a chairman;
(2) a vice chairman;
(3) a secretary; and
(4) other officers determined to be necessary for the board to
function;
at the first meeting of the board in January of each year.
As added by P.L.346-1989(ss), SEC.7. Amended by P.L.86-1999,
SEC.14.
IC 36-7-23-16
Vacancies in offices of board of directors
Sec. 16. The members shall fill a vacancy in an office described
by section 15 of this chapter for the unexpired term.
As added by P.L.346-1989(ss), SEC.7.
IC 36-7-23-17
Quorum; proxies
Sec. 17. (a) A majority of the members of the board constitutes a
quorum for the transaction of business. The affirmative vote of a
majority of the board is necessary for an action to be taken by the
board.
(b) A member may vote by written proxy delivered in advance to
the chairman or secretary of the board.
(c) A vacancy in the membership of the board does not impair the
right of a quorum to exercise all rights and perform all duties of the
board.
As added by P.L.346-1989(ss), SEC.7. Amended by P.L.86-1999,
SEC.15.
IC 36-7-23-18
Meetings
Sec. 18. Meetings of the board shall be held at the call of the
chairman or at the request of at least three (3) members. The board
shall meet at least once every three (3) months to attend to the
business of the authority.
As added by P.L.346-1989(ss), SEC.7.
IC 36-7-23-19
Powers and duties
Sec. 19. The board may do the following:
(1) Borrow money or otherwise incur indebtedness for any of
its purposes, and issue revenue bonds, notes, or other evidences
of indebtedness, whether secured or unsecured (other than
general obligation bonds), to a person.
(2) Purchase, discount, sell, and negotiate notes and other
evidences of indebtedness.
(3) Procure insurance to guarantee, insure, coinsure, and
reinsure against political and commercial risk of loss and any
other insurance the board considers necessary, including
insurance to secure the payment of principal and interest on
notes or other obligations of the authority.
(4) Accept gifts, grants, or loans from, and enter into contracts
or other transactions with, a federal or state agency,
municipality, private organization, or other source.
(5) Adopt, amend, or rescind bylaws, rules, and regulations
necessary or convenient for the performance of the authority's
powers and duties under this chapter.
(6) Sue and be sued.
(7) Purchase, receive, take by grant, gift, devise, bequest, or
otherwise, lease or otherwise acquire, own, hold, improve,
employ, use, and otherwise deal in and with, real and personal
property, or an interest in real or personal property, wherever
situated.
(8) Sell, convey, lease, exchange, transfer, or otherwise dispose
of all its property or an interest in its property, wherever
situated.
(9) Adopt a seal.
(10) Cooperate with other public and private organizations to
carry out the purposes of the authority.
(11) Exercise all other powers and functions necessary or
appropriate to carry out the duties and purposes set forth in this
chapter.
As added by P.L.346-1989(ss), SEC.7.
IC 36-7-23-20
Bylaws, rules, and regulations
Sec. 20. The board may adopt bylaws, rules, and regulations
without complying with IC 4-22-2.
As added by P.L.346-1989(ss), SEC.7.
IC 36-7-23-21
Broad construction of board's powers
Sec. 21. The board's powers under this chapter shall be interpreted
broadly to effectuate the purposes of this chapter and may not be
construed as a limitation of powers.
As added by P.L.346-1989(ss), SEC.7.
IC 36-7-23-22
Revenue bond resolutions
Sec. 22. The board must adopt a resolution before issuing and
selling revenue bonds under this chapter. The amount of the bonds
issued under a resolution may not exceed the total, as estimated by
the board, of all expenses reasonably incurred in connection with the
purpose for which the bonds were issued.
As added by P.L.346-1989(ss), SEC.7.
IC 36-7-23-23
Amount of bonds sold
Sec. 23. In determining the amount of bonds to be issued and sold,
the board may include the costs of the following:
(1) Acquisition and construction of infrastructure.
(2) Financing charges, bond sale discount, reasonable issuance
costs, and interest accruing on the bonds before and during the
construction period and for a reasonable period of time after
construction.
(3) Expenses such as legal fees and engineering fees.
(4) All other expenses necessary or incidental to accomplishing
the purposes of the authority.
As added by P.L.346-1989(ss), SEC.7.
IC 36-7-23-24
Disclosures on face of bond
Sec. 24. The bonds must indicate the following on the face of
each bond:
(1) The denomination of the bond.
(2) The maturity date or dates, not exceeding fifty (50) years
from the date of issue.
(3) The interest rate or rates if fixed rates are used, or the
manner in which the interest rate will be determined if variable
or adjustable rates are used.
(4) The registration privileges.
(5) That the bond does not constitute a debt of the state or a
political subdivision within the meaning or application of a
constitutional provision or limitation, but that the bond is
payable solely as to both principal and interest from all or part
of the revenues of the authority, as set forth in the resolution of
the authority.
(6) The conditions and terms under which the bonds may be
redeemed before maturity.
As added by P.L.346-1989(ss), SEC.7.
IC 36-7-23-25
Execution, attestation, and authentication of bonds
Sec. 25. The bonds:
(1) shall be executed by the manual or facsimile signature of the
chairman of the board;
(2) shall be attested by the manual or facsimile signature of the
secretary of the board;
(3) shall be imprinted or impressed with the seal of the
authority;
(4) may be authenticated by a trustee, registrar, or paying agent;
and
(5) constitute valid and binding obligations of the authority,
even if the chairman, the secretary, or both, whose manual or
facsimile signature appears on the bond, no longer hold those
offices.
As added by P.L.346-1989(ss), SEC.7.
IC 36-7-23-26
Negotiability of bonds
Sec. 26. The bonds, when issued, have all the qualities of
negotiable instruments under IC 26, subject to their provisions for
registration, and are incontestable in the hands of a bona fide
purchaser or holder of bonds for value.
As added by P.L.346-1989(ss), SEC.7.
IC 36-7-23-27
Sale of bonds
Sec. 27. The bonds issued under this chapter may be sold by the
board at a public or private sale at a time or times determined by the
board.
As added by P.L.346-1989(ss), SEC.7.
IC 36-7-23-28
Disposition of bond proceeds; bond maturities; rights of
bondholders; rights and duties of directors
Sec. 28. The proceeds of bonds issued under this chapter are
appropriated for the purpose for which the bonds are issued. The
proceeds shall be deposited and disbursed in accordance with any
provisions and restrictions that the board provides in the resolution
or trust indenture authorizing the issuance of the bonds in the first
instance and the issuance of any refunding bonds, or in a trust
indenture authorized and approved by resolution of the board. The
maturities of the bonds, the rights of the holders, and the rights,
duties, and obligations of the board are governed in all respects by
this chapter.
As added by P.L.346-1989(ss), SEC.7.
IC 36-7-23-29
Bonds payable from and secured by authority revenues only
Sec. 29. The bonds issued under this chapter constitute the
corporate obligations only of the authority and are payable solely
from and secured exclusively by the pledge of all or part of the
revenues of the authority, as set forth in the resolution of the
authority.
As added by P.L.346-1989(ss), SEC.7.
IC 36-7-23-30
Covenant not to impair taxes pledged to bonds
Sec. 30. With respect to bonds for which a pledge of revenue has
been made under this chapter, the general assembly convenants with
the authority and the purchasers or owners of those bonds that this
chapter will not be repealed or amended in any manner that will
adversely affect the imposition of a tax in which revenue was the
basis of the pledge as long as the principal of, or interest on, any of
those bonds is unpaid.
As added by P.L.346-1989(ss), SEC.7.
IC 36-7-23-31
Long term management plan
Sec. 31. The board shall adopt, and may amend or repeal, a long
term management plan for the authority.
As added by P.L.346-1989(ss), SEC.7.
IC 36-7-23-32
Executive director
Sec. 32. (a) The board may appoint an executive director of the
authority.
(b) If the board determines to appoint an executive director, the
board shall appoint a nominating committee composed of members
of the board. The committee must submit a recommendation to the
board concerning the individuals qualified to serve as executive
director.
As added by P.L.346-1989(ss), SEC.7. Amended by P.L.86-1999,
SEC.16.
IC 36-7-23-33
Powers and duties of executive director
Sec. 33. The executive director shall:
(1) administer, manage, and direct the affairs and activities of
the authority in accordance with the policies of the board and
under the control and direction of the board;
(2) maintain and be custodian of all books, documents, and
papers filed with the authority and the official seal of the
authority; and
(3) perform other duties directed by the members to carry out
the purposes of this chapter.
As added by P.L.346-1989(ss), SEC.7. Amended by P.L.86-1999,
SEC.17.
IC 36-7-23-34
Salaries; expenses of board, authority, employees, and consultants
Sec. 34. The executive director must approve all accounts for
salaries, allowable expenses of the board or of an employee or
consultant, and the expenses incidental to the operation of the
authority.
As added by P.L.346-1989(ss), SEC.7.
IC 36-7-23-35
Minutes of board; records and documents of authority
Sec. 35. The secretary of the board may:
(1) make copies of the minutes of the board and other records
and documents of the authority; and
(2) give certificates under the seal of the authority to the effect
that the copies are true copies.
As added by P.L.346-1989(ss), SEC.7.
IC 36-7-23-36
Officers, agents, and employees; legal counsel; technical experts
Sec. 36. The board may, without the approval of the attorney
general or any other state officer, employ legal counsel, technical
experts, and permanent or temporary officers, agents, and employees
that the board determines necessary to carry out the efficient
operation of the authority. The board shall determine the
qualification, duties, compensation, and terms of office of persons
employed under this section.
As added by P.L.346-1989(ss), SEC.7.
IC 36-7-23-37
Delegation of administrative duties
Sec. 37. The board may delegate to one (1) or more agents or
employees of the authority the administrative duties the board
considers proper.
As added by P.L.346-1989(ss), SEC.7.
IC 36-7-23-38
Personnel policies
Sec. 38. The board shall adopt personnel policies governing the
employees of the authority.
As added by P.L.346-1989(ss), SEC.7.
IC 36-7-23-39
Authority employees not employees of state
Sec. 39. An employee of the authority is not an employee of the
state.
As added by P.L.346-1989(ss), SEC.7.
IC 36-7-23-40
Conflict of interest disclosure
Sec. 40. A member of the board or employee of the authority who
has, will have, or later acquires an interest, direct or indirect, in a
transaction with the authority shall immediately disclose the nature
and extent of the interest in writing to the board as soon as the
member or employee has knowledge of the actual or prospective
interest.
As added by P.L.346-1989(ss), SEC.7.
IC 36-7-23-41
Nonparticipation of director or employer with conflicting interest
Sec. 41. A disclosure under section 40 of this chapter shall be
announced at the first meeting of the board following the disclosure
and entered upon the minutes of that meeting. Upon disclosure, the
member or employee shall not participate in an action by the board
or authority authorizing the transaction. However, an interest
described under section 40 of this chapter does not invalidate an
action by the board or authority with the participation of the
disclosing member before the time when the member became aware
of the interest or should reasonably have become aware of the
interest.
As added by P.L.346-1989(ss), SEC.7.
IC 36-7-23-42
Officers and employees of state or political subdivisions
Sec. 42. Notwithstanding any other law, an officer or employee of
the state or a political subdivision does not forfeit that office or
employment by reason of acceptance of membership on the board or
of providing services to the authority.
As added by P.L.346-1989(ss), SEC.7.
IC 36-7-23-43
Personal liability of directors, officers, employees, and agents
Sec. 43. The members of the board and the officers, employees,
and agents of the authority are not subject to personal liability or
accountability by reason of an act authorized by this chapter.
As added by P.L.346-1989(ss), SEC.7.
IC 36-7-23-44
Funds and accounts
Sec. 44. The board may create funds and accounts necessary and
desirable for its purposes.
As added by P.L.346-1989(ss), SEC.7.
IC 36-7-23-45
Deposit of funds
Sec. 45. All money of the authority, except as provided in this
chapter, shall be deposited as soon as practicable in a separate
account or accounts in one (1) or more financial institutions. The
money in these accounts shall be paid on checks signed by the
chairman or other officers or employees of the authority or by wire
transfer or other electronic means that the board authorizes. All
deposits of money shall, if required by the board, be secured in a
manner that the board determines to be prudent.
As added by P.L.346-1989(ss), SEC.7.
IC 36-7-23-46
Authority funds as trust funds
Sec. 46. Notwithstanding any other law, funds received by the
authority under this chapter are trust funds to be held and applied
solely as provided by this chapter.
As added by P.L.346-1989(ss), SEC.7.
IC 36-7-23-47
Audit of funds and accounts
Sec. 47. The funds and accounts of the authority are subject to an
annual audit by the state board of accounts.
As added by P.L.346-1989(ss), SEC.7.
IC 36-7-23-48
Authority property as public property; tax exemption
Sec. 48. All property, both tangible and intangible, acquired or
held by the authority under this chapter is public property used for
public and governmental purposes. All the property, along with the
income from the property, is exempt from all taxes imposed by the
state or a political subdivision, except for the financial institutions
tax imposed under IC 6-5.5 or a state inheritance tax imposed under
IC 6-4.1.
As added by P.L.346-1989(ss), SEC.7. Amended by P.L.21-1990,
SEC.55; P.L.254-1997(ss), SEC.32.
IC 36-7-23-49
Payment of expenses; indebtedness or liability of state or political
subdivision
Sec. 49. All expenses incurred by the board in carrying out this
chapter are payable solely from funds provided under this chapter.
This chapter does not authorize the board to incur indebtedness or
liability on behalf of or payable by the state or a political
subdivision.
As added by P.L.346-1989(ss), SEC.7.
IC 36-7-23-50
Annual report
Sec. 50. The board shall, at the close of each fiscal year, submit
in an electronic format under IC 5-14-6 an annual report of its
activities for the preceding year to the legislative council. Each
member of the general assembly may receive a copy of the report by
submitting a request to the executive director of the legislative
council.
As added by P.L.346-1989(ss), SEC.7. Amended by P.L.28-2004,
SEC.182.
IC 36-7-23-51
Operating and financial statement
Sec. 51. A report under section 50 of this chapter must set forth
a complete operating and financial statement for the authority during
the fiscal year covered by the report.
As added by P.L.346-1989(ss), SEC.7.
IC 36-7-23-52
Fees, rates, and charges for use of infrastructures
Sec. 52. (a) A resolution establishing just and reasonable fees,
rates, and charges for the use of infrastructures under this chapter
may be adopted by the board after a public hearing. Notice of the
hearing must be published one (1) time, at least ten (10) days before
the hearing, in one (1) newspaper published in each county in which
a participating unit is located in accordance with IC 5-3-1. The notice
must provide a summary of the resolution.
(b) Fees, rates, and charges adopted by the authority for a
particular infrastructure shall comply with statutes authorizing units
to adopt fees, rates, and charges for that particular type of
infrastructure or, if there is no statute authorizing units to adopt fees,
rates, and charges for that particular type of infrastructure, the fees,
rates, and charges must comply with IC 36-1-3.
As added by P.L.346-1989(ss), SEC.7. Amended by P.L.86-1999,
SEC.18.
IC 36-7-23-53
Lease of infrastructures
Sec. 53. (a) An authority may enter into a lease of any
infrastructure that could be financed with the proceeds of bonds
issued under this chapter with a lessor for a term not to exceed fifty
(50) years, and the lease may provide for payments to be made by the
authority from any revenues of the authority.
(b) A lease may provide that payments by the authority to the
lessor are required only to the extent and only for the period that the
lessor is able to provide the leased infrastructure in accordance with
the lease. The terms of each lease must be based upon the value of
the infrastructure leased and may not create a debt of the authority or
a member for purposes of the Constitution of the State of Indiana.
(c) A lease may be entered into by the authority only after a public
hearing by the board at which all interested parties are provided the
opportunity to be heard. After the public hearing, the board may
adopt a resolution authorizing the execution of the lease on behalf of
the authority if the board finds that the service to be provided
throughout the term of the lease will serve the public purpose of the
authority and is in the best interests of its residents.
(d) The authority may:
(1) pledge revenues to make payments under the lease; and
(2) establish a special fund to make the payments.
(e) Lease rentals may be limited to money in the special fund so
that the obligations of the authority to make the lease rental payments
are not considered debt of the authority or a member for purposes of
the Constitution of the State of Indiana.
(f) Except as provided in this section, no approvals of any
governmental body or agency are required before the authority enters
into a lease under this section.
As added by P.L.346-1989(ss), SEC.7. Amended by P.L.86-1999,
SEC.19.
IC 36-7-23-54
Corporations permitted to lease infrastructures to authorities
Sec. 54. A nonprofit or for profit corporation organized under
Indiana law or admitted to do business in Indiana may lease facilities
referred to in section 53 of this chapter to an authority under this
chapter.
As added by P.L.346-1989(ss), SEC.7. Amended by P.L.179-1991,
SEC.33.
IC 36-7-23-55
Securities exempt from registration laws
Sec. 55. Any security issued in connection with a financing under
this chapter is exempt from the registration requirements of IC 23-19
or any other securities registration law.
As added by P.L.346-1989(ss), SEC.7. Amended by P.L.27-2007,
SEC.34.
IC 36-7-23-56
Bonds exempt from taxation
Sec. 56. All bonds issued under this chapter and the interest on the
bonds are exempt from taxation in accordance with IC 6-8-5.
As added by P.L.346-1989(ss), SEC.7.
IC 36-7-23-57
Revenues of authority exempt from taxation
Sec. 57. All revenues received by the authority under this chapter
are exempt from all taxation.
As added by P.L.346-1989(ss), SEC.7.
IC 36-7-23-58
Financing methods
Sec. 58. The infrastructure, or any part of the infrastructure, to be
financed under this chapter, may be financed by any one (1) or more
or any combination of one (1) or more of the methods provided for
in this chapter. The authority may pledge any money or mortgage or
pledge property available to it under this chapter as set forth in
IC 5-1-14-4 and any member may pledge any money or mortgage or
pledge property available to it to the authority as set forth in the
agreement creating the authority. Any such pledge or mortgage by a
member to the authority shall be governed by and binding under
IC 5-1-14-4.
As added by P.L.346-1989(ss), SEC.7. Amended by P.L.86-1999,
SEC.20.
IC 36-7-23-59
Full authority to issue bonds without state approval; construction
with other statutes conferring powers
Sec. 59. This chapter constitutes full authority for the issuance of
bonds. No procedure, proceedings, publications, notices, consents,
approvals, orders, acts, or things, by a board, officer, commission,
department, agency, or instrumentality of the state is required to
issue bonds or to do any act or perform anything under this chapter
except as prescribed by this chapter. The powers conferred by this
chapter are in addition to, and not a subsitute for, and the limitations
imposed by this chapter do not affect, the powers conferred by any
other statute.
As added by P.L.346-1989(ss), SEC.7.
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