CHAPTER 12. ECONOMIC DEVELOPMENT AND POLLUTION CONTROL
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Repealed
(Repealed by P.L.20-1985, SEC.18(a).)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 developmentor pollution control facilities and the provision of a program tofinance multiple, unidentified economic development or pollutioncontrol 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 beingprocessed that otherwise would cause pollution when used;
serve a public purpose and will be of benefit to the health or generalwelfare of the unit proposing to issue bonds for the financing orprogram or of the unit where the facilities that are to be financed arelocated.
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 financeeconomic development or pollution control facilities under thischapter, the fiscal body may establish a department of economicdevelopment, to be controlled by a commission known as"__________ Economic Development Commission", designating thename 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 thatestablish a department of economic development.
(b) The members of the economic development commission shallbe appointed by the city executive. One (1) of the members shall beselected by the city executive, one (1) shall be nominated by thefiscal 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 officeupon their appointment, and their terms run from February 1 aftertheir 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 thedepartment of economic development provides for a five (5) membercommission, or if the fiscal body later adopts an ordinance increasingthe membership from three (3) to five (5), two (2) additionalmembers 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) yearfrom 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 adepartment of economic development.
(b) The members of the economic development commission shallbe appointed by the town executive. One (1) of the members shall beselected by the town executive, one (1) shall be nominated by thefiscal 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 officeupon their appointment, and their terms run from February 1 aftertheir 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 adepartment of economic development.
(b) The members of the economic development commission shallbe appointed by the county executives. One (1) of the members shallbe selected by the county executive, one (1) shall be nominated bythe county fiscal body, and one (1) shall be nominated by the fiscalbody of the most populous municipality located in the county.
(c) The economic development commissioners shall take officeupon their appointment, and their terms run from February 1 aftertheir 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 mostpopulous municipality.As added by Acts 1981, P.L.309, SEC.31.
IC 36-7-12-8
Consolidated cities; commission members; appointment; terms ofoffice
Sec. 8. (a) This section applies to consolidated cities that establisha department of economic development.
(b) The members of the economic development commission shallbe appointed by the city executive. One (1) of the members shall beselected by the city executive, and two (2) shall be nominated by thecity fiscal body.
(c) The economic development commissioners shall take officeupon their appointment, and their terms run from February 1 aftertheir 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) commissionersnominated by the city fiscal body; and
(3) one (1) year, for the remaining commissioner nominated bythe city fiscal body.
(d) If the ordinance of the city fiscal body establishing thedepartment of economic development provides for a five (5) membercommission, or if the fiscal body later adopts an ordinance increasingthe membership from three (3) to five (5), two (2) additionalmembers 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) yearfrom 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 adepartment of economic development, the clerk of the fiscal bodyestablishing the department shall promptly notify the executives andfiscal bodies required to make selections and nominations by thischapter. The officers required to make selections and nominationsshall do so within fifteen (15) days after receiving that notice. Eachselectee and nominee shall be appointed by the appropriate executiveofficer within ten (10) days after he receives the nominations.
(b) At the expiration of the respective terms of each of the originaleconomic development commissioners, their respective successorsshall be selected and nominated, before the expiration of the term, inthe same manner as the original commissioner, and each succeedingcommissioner shall serve for a term of four (4) years. Acommissioner shall hold over after the expiration of his term until hissuccessor 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 selectand appoint a person without a nomination.
(b) If a person appointed as an economic developmentcommissioner fails to take the oath of office required by section 11of this chapter within ten (10) days after the notice of hisappointment is mailed to him, or if any commissioner, afterqualifying, dies, resigns, vacates his office, or is removed fromoffice, a new commissioner shall be appointed to fill the vacancy inthe same manner as the commissioner in respect to whom thevacancy occurs was appointed. A commissioner appointed under thissubsection 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 developmentcommissioner shall take and subscribe an oath of office in the usualform, to be indorsed upon the certificate of his appointment. Thecertificate shall be promptly filed with the clerk of the fiscal bodythat 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 meetwithin thirty (30) days after its original appointment, at a time andplace designated by the executive of the unit, for the purpose oforganization, and shall meet to reorganize in February of eachsucceeding year.
(b) At the meeting required by subsection (a), an economicdevelopment commission shall elect one (1) of its members aspresident, one (1) as vice president, and one (1) as secretary. Eachofficer shall serve from the date of his election until January 31 afterhis 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 thebylaws, rules, and regulations that it considers necessary. Regular orspecial meetings shall be held at times and upon notice fixed by thecommission, either by resolution or in accordance with the bylaws,rules, and regulations adopted.
(b) A majority of the members of an economic developmentcommission constitutes a quorum.
(c) Actions of an economic development commission must beapproved by a majority of the members of the commission.
(d) The records of an economic development commission arepublic 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 beremoved from office for neglect of duty, incompetency, inability toperform his duties, or any other good cause, by the executive orfiscal body that selected or nominated him. The commissionerremoved may obtain judicial review of the removal by filing acomplaint in a circuit or superior court in the county, and the burdenof proof is upon the executive or fiscal body that removed thecommissioner. The cause shall be placed on the advanced calendarand be tried as other civil causes are tried by the court, without ajury. The court's judgment may be appealed in the same manner asany 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 entitledto any salary, but is entitled to:
(1) reimbursement for expenses necessarily incurred in theperformance of his duties; and
(2) a per diem allowance for each day he attends a commissionmeeting, if that allowance:
(A) does not exceed the per diem allowance for members of thegeneral assembly; and
(B) is authorized by the fiscal body that established thecommission.
As added by Acts 1981, P.L.309, SEC.31.
IC 36-7-12-16
Commissioners; pecuniary interests in matters considered bycommissions
Sec. 16. (a) An economic development commissioner shalldisclose any pecuniary interest in any employment, financingagreement, or other contract made under this chapter before anyaction by the commission on it, and shall not vote on any suchmatter.
(b) Notwithstanding any other law, a member of the fiscal bodyof a unit may have a pecuniary interest in any employment, financingagreement, or other contract made under this chapter if he discloseshis pecuniary interest before any action by the fiscal body on it anddoes not vote on any such matter.
(c) If any property in which an economic developmentcommissioner or member of a fiscal body of a unit has a pecuniaryinterest is property required for the purposes of this chapter, thatproperty 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 shallinvestigate, study, and survey the need for additional jobopportunities, industrial diversification, water services, and pollutioncontrol facilities in the unit, and shall recommend action to improveor promote job opportunities, industrial diversification, waterservices, and availability of pollution control facilities in the unit.
(b) As part of an investigation under subsection (a), an economicdevelopment commission may participate in the financing ofbusiness appraisals and financial feasibility studies of the possiblepurchase of a business with operations in the commission'sjurisdiction by the employees of that operation through an employeestock ownership plan (ESOP). The employees must agree to repaythe commission's contribution to the cost of the appraisals andstudies 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 lawfulmeans, land or interests in land and personal property neededfor the purposes of this chapter;
(2) exercise its power of eminent domain to acquire unimprovedland, unoccupied economic development facilities, or pollutioncontrol facilities and the land relating to those facilities, for thepurposes of this chapter;
(3) purchase, lease as lessee, construct, remodel, rebuild,enlarge, or substantially improve economic development orpollution control facilities, including land, machinery, orequipment;
(4) lease economic development or pollution control facilitiesto users or developers, with or without an option to purchase;
(5) sell economic development or pollution control facilities tousers or developers, for consideration to be paid in installmentsor otherwise;
(6) make direct loans to users or developers for the cost ofacquisition, construction, or installation of economicdevelopment or pollution control facilities, including land,machinery, or equipment, with the loans to be secured by thepledge of one (1) or more taxable or tax-exempt bonds or othersecured or unsecured debt obligations of the users ordevelopers;
(7) enter into agreements with users or developers to allow theusers or developers to wholly or partially construct economicdevelopment or pollution control facilities to be acquired by theunit;
(8) issue taxable or tax-exempt bonds under this chapter for
single or multiple, identified or unidentified, economicdevelopment or pollution control facilities to accomplish thepurposes of this chapter, and secure their payment as providedin this chapter;
(9) establish reserves from the proceeds of the sale of taxable ortax-exempt bonds, other funds, or both, to secure the paymentof the principal and interest on the bonds;
(10) lend or deposit the proceeds of bonds to or with a lenderfor the purpose of furnishing funds to the lender for the purposeof making a loan to a specifically identified developer or userfor the financing of specifically identified economicdevelopment or pollution control facilities under this chapter;and
(11) reimburse from bond proceeds expenditures for pollutioncontrol facilities or economic development facilities.
(b) This chapter does not authorize the financing of economicdevelopment facilities for a developer unless any written agreementthat may exist between the developer and the user is fully disclosedto, and approved by, the economic development commission or thefiscal 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 economicdevelopment or pollution control facilities for developers and usersin Indiana through the issuance of taxable or tax-exempt bonds. Infurtherance 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 standardshave the force of law if the standards are adopted after a publichearing for which notice has been given by publication underIC 5-3-1.
(2) Contract with any entity securing the payment of bondsissued under this chapter and authorizing the entity to approvethe developers and users that can finance or refinance economicdevelopment or pollution control facilities with proceeds fromthe bond issue secured by that entity.
(3) Lease to a developer or user economic development orpollution control facilities upon terms and conditions that theunit considers proper and, with respect to the lease:
(A) charge and collect rents;
(B) terminate the lease upon the failure of the lessee tocomply with any of its obligations under the lease orotherwise as the lease provides;
(C) include in the lease provisions that the lessee has theoption to renew the term of the lease for such periods and atsuch rents as may be determined by the unit or to purchaseany 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 unitconsiders proper, to a developer or user under an installmentpurchase contract or loan agreement to:
(A) finance, reimburse, or refinance the cost of economicdevelopment or pollution control facilities; and
(B) take back a secured or unsecured promissory noteevidencing such a loan or a security interest in the economicdevelopment or pollution control facilities financed orrefinanced with the loan.
(5) Sell or otherwise dispose of any unneeded or obsoleteeconomic development or pollution control facilities underterms and conditions determined by the unit.
(6) Maintain, repair, replace, and otherwise improve or cause tobe maintained, repaired, replaced, and otherwise improved anyeconomic development or pollution control facilities owned bythe unit.
(7) Require any type of security that the unit considersreasonable and necessary.
(8) Obtain or aid in obtaining property insurance on alleconomic development or pollution control facilities owned orfinanced, or accept payment if any economic development orpollution control facilities are damaged or destroyed.
(9) Enter into any agreement, contract, or other instrument withrespect to any insurance, guarantee, letter of credit, or otherform of credit enhancement, accepting payment in such mannerand form as provided in the instrument if a developer or userdefaults, and assign any such insurance, guarantee, letter ofcredit, or other form of credit enhancement as security forbonds issued by the unit.
(10) Finance for eligible developers and users the cost ofeconomic development or pollution control facilities as set forthin 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 economicdevelopment; adoption and submission of proposed budget
Sec. 19. (a) The fiscal body of a unit may levy a special tax to paythe costs of operation of its economic development commission, butthis tax may not be used to pay any of the costs attributable to theacquisition and leasing or sale of economic development or pollutioncontrol facilities, except for advancements to be reimbursed frombond proceeds.
(b) Any unit having money raised by taxation for any type ofindustrial aid or development as authorized by any other statute maytransfer that money to its department of economic development tocarry out the purposes of this chapter.
(c) Before a tax is levied under subsection (a) or money istransferred under subsection (b), the economic development
commission must:
(1) adopt a proposed budget for the use of the money it willreceive from the levy or transfer; and
(2) submit the budget to the fiscal body of the unit thatestablished 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 theeconomic development commission shall be deposited, held, andsecured in accordance with the statutes relating to the handling andinvesting of public funds. The handling and expenditure of thismoney is subject to audit and supervision by the state board ofaccounts.
(b) Contracts for construction and equipment of economicdevelopment or pollution control facilities need not be let inaccordance with IC 5-16, IC 5-17, or any other statute relating topublic contracts. However, the construction of waterworks facilitiesfinanced for the public purpose of providing reliable water servicesubject to IC 5-16-7.
(c) Any employee of the economic development commissionauthorized to receive, disburse, or in any other way handle money ornegotiable securities of the commission shall execute a bond payableto the state, with surety to consist of a surety or guaranty corporationqualified to do business in the state. The bond must be in an amountdetermined by the commission, and must be conditioned upon theemployee's faithful performance of his duties and the accounting forall monies and property that may come into his hands or under hiscontrol. 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 intonegotiations with one (1) or more persons concerning the terms andconditions for financing of economic development or pollutioncontrol facilities.
(b) The commission shall consider whether a proposed economicdevelopment facility may have an adverse competitive effect onsimilar facilities already constructed or operating in the unit. In thecase of economic development facilities that are identified at the timeof issuance of the bonds, the adverse competitive effect questionmust be considered before issuance of the bonds. In the case of aprogram financing under section 18.5 of this chapter, the adversecompetitive effect question need not be considered before the
issuance of the bonds except for those economic developmentfacilities that are identified at the time of issuance of the bonds, butit must be considered before financing any proposed economicdevelopment facilities from program funds.
(c) Preliminary expenses in connection with negotiations underthis section may be paid from:
(1) money furnished by the proposed user or developer;
(2) money made available by the state or federal government, orby 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 offacilities
Sec. 22. (a) Economic development or pollution control facilitiesare subject to applicable zoning laws. If a fiscal body of a unitestablishes a department of development, the unit and its economicdevelopment commission have jurisdiction under this chapterthroughout the county, both inside and outside the corporateboundaries of any municipality.
(b) Notwithstanding subsection (a), economic developmentfacilities that are to be located within the corporate boundaries of amunicipality may not be financed by a county without the consent ofthe fiscal body of the municipality, and economic developmentfacilities that are to be located outside the corporate boundaries of amunicipality may not be financed by the municipality without theconsent of the fiscal body of the unit in which facilities are to belocated.
(c) Notwithstanding subsection (a), pollution control facilities thatare to be located within the corporate boundaries of a municipalitymay not be financed by another unit unless:
(1) the user has applied to the economic developmentcommission and fiscal body of the municipality for thefinancing of the facilities, and the municipality has failed toadopt a bond, note, or warrant ordinance for the facilities withinsixty (60) days after the date of the application; or
(2) the fiscal body of the municipality has consented to thefinancing 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 preparea report that:
(1) briefly describes the proposed economic development orpollution control facilities;
(2) estimates the number and expense of public works orservices 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 numberof jobs and the payroll to be created or saved, or describes thepublic benefits provided by a waterworks facility; and
(5) for pollution control facilities, describes the facilities andhow they will abate, reduce, or prevent pollution.
(b) The report shall be submitted to the executive director orchairman of the plan commission, if any, and if the number of newjobs estimated exceeds one hundred (100), to the superintendent ofthe school corporation where the facilities will be located. Theexecutive director or chairman of the plan commission and theschool superintendent may formulate their written commentsconcerning the report and transmit their comments, if any, to thecommission within five (5) days from the receipt of the report.
(c) In the case of a program financing under section 18.5 of thischapter, the requirements of this section need be complied with onlywhen and as a condition precedent to financing proposed economicdevelopment 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 bycommission
Sec. 24. (a) The economic development commission shall hold apublic hearing, for itself and on behalf of the fiscal body of the unitproposing to issue the bonds, on the proposed financing of theeconomic development or pollution control facilities, after givingnotice by publication in accordance with IC 5-3-1 in the unitproposing to issue the bonds and in the municipality, if any, wherethe facilities are to be located. However, in the case of a programfinancing under section 18.5 of this chapter that is funded withtaxable bonds, the public hearing requirement of this section neednot be complied with until the economic development or pollutioncontrol facilities to be financed with program funds have beenidentified.
(b) Upon findings by the commission that:
(1) the proposed financing will be of benefit to the health orgeneral welfare of the unit proposing to issue the bonds, or theunit 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, includingthe form and terms of the financing agreement, the bonds and thetrust indenture (if any). The secretary of the commission shalltransmit the resolution to the fiscal body of the unit proposing toissue 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 bondissuance; approval of changes
Sec. 25. (a) If the fiscal body of the unit proposing to issue thebonds finds that the financing approved under section 24 of thischapter will be of benefit to the health or general welfare of the unitproposing to issue the bonds the unit where the facilities are to belocated, or both, and complies with this chapter, it may adopt anordinance approving the proposed financing in the form that thefinancing was approved by the economic development commissionor as modified by the fiscal body in its discretion.
(b) The ordinance may also authorize the issuance of bondspayable solely from revenues and receipts derived from the financingagreement or from payments made under a guaranty agreement bydevelopers, users, or related persons. The bonds are not in anyrespect a general obligation of the unit, nor are they payable in anymanner from revenues raised by taxation.
(c) The financing agreements, trust indentures (if any), and bondsmust be executed by the:
(1) executive; and
(2) clerk of the fiscal body;
of the unit approving the financing. These officials may by theirexecution approve changes therein without further approval of thefiscal body or the economic development commission of the unit ifsuch changes do not affect terms contained in the ordinance pursuantto section 27(a)(1) through (a)(10) of this chapter and if theordinance 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 chaptermust provide for payments in an amount sufficient to pay theprincipal of, premium (if any), and interest on the bonds authorizedfor and allocable to the financing of the facilities. However, interestpayments for the anticipated construction period, plus a period of notmore 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 financingagreement. However, a financing agreement does not terminate afterforty (40) years if a default under that agreement remains uncured,unless the termination is authorized by the terms of the financingagreement.
(c) If the unit retains an interest in the facilities, the financingagreement must require the user or the developer to pay all costs ofmaintenance, repair, taxes, assessments, insurance premiums,trustee's fees, and any other expenses relating to the facilities, so thatthe unit will not incur any expenses on account of the facilities otherthan 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; findingsof fact concerning coal gasification powerplant
Sec. 27. (a) Bonds issued by a unit under section 25 of thischapter may be issued as serial bonds, term bonds, or a combinationof both types. The ordinance of the fiscal body authorizing bonds,notes, or warrants, or the financing agreement or the trust indentureapproved by the ordinance, must provide:
(1) the manner of their execution, either by the manual orfacsimile signatures of the executive of the unit and the clerk ofthe 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 themanner in which the interest rate will be determined if variableor 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 thischapter 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. Theunit may advance all expenses, premiums, and commissions that itconsiders necessary or advantageous in connection with theirissuance.
(c) The bonds, notes, or warrants and their authorization,issuance, sale, and delivery are not subject to any general statuteconcerning bonds, notes, or warrants of units.
(d) An action to contest the validity of bonds, notes, or warrantsissued under section 25 of this chapter may not be commenced morethan thirty (30) days after the adoption of the ordinance approvingthem under section 25 of this chapter.
(e) This subsection applies only to bonds, notes, or warrantsissued under this chapter after June 30, 2008, that are wholly orpartially payable from tax increment revenues derived from propertytaxes. 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 warrantswere:
(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 tofulfill the terms of agreements or pledges entered into beforeJuly 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 therights 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 issuedafter June 30, 2008, to finance:
(A) an integrated coal gasification powerplant (as defined byIC 6-3.1-29-6);
(B) a part of an integrated coal gasification powerplant (asdefined by IC 6-3.1-29-6); or
(C) property used in the operation or maintenance of anintegrated coal gasification powerplant (as defined byIC 6-3.1-29-6);
that received a certificate of public convenience and necessityfrom the Indiana utility regulatory commission under IC 8-1-8.5et seq. before July 1, 2008.
(f) The general assembly makes the following findings of factwith respect to an integrated coal gasification powerplant (as definedin IC 6-3.1-29-6) that received a certificate of public convenienceand necessity from the Indiana utility regulatory commission underIC 8-1-8.5 et seq. before July 1, 2008:
(1) The health, safety, general welfare, and economic andenergy security of the people of the state of Indiana require asa public purpose of the state the promotion of clean energy,including clean coal, technologies in Indiana.
(2) These technologies include the integrated coal gasificationpowerplant contemplated by this chapter, IC 6-1.1-20-1.1, andIC 36-7-14.
(3) Investment in the integrated coal gasification powerplantcontemplated by this chapter, IC 6-1.1-20-1.1, and IC 36-7-14will result in substantial financial and other benefits to the stateand its political subdivisions and the people of Indiana,including increased employment, tax revenue, and use ofIndiana coal.
(4) It is in the best interest of the state and its citizens topromote and preserve financial and other incentives for theintegrated 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 developmentcommission, neither he nor a member of his firm or professionalcorporation may also represent an applicant for a bond issue from the
commission.
(b) A person who violates this section commits a Class Amisdemeanor.
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 thischapter may secure them by a trust indenture between the unit and acorporate 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 onaccount 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 theholders of the bonds, including provisions restricting theindividual right of action of the holders;
(4) contain provisions considered reasonable for protecting andenforcing the rights and remedies of the holders or lenders,including covenants setting forth duties of the unit and theeconomic development commission regarding:
(A) the construction of the facilities; and
(B) the custody, safeguarding, application, and investmentof revenues received or to be received by the unit on accountof the facilities financed by the issuance of the bonds;
(5) contain provisions regarding the investment of money, thesale, exchange, or disposal of property, and the manner ofauthorizing and making payments, notwithstanding any generalstatute relating to these matters; and
(6) provide for the establishment of reserve funds from theproceeds of the bonds or from other sources to secure theprompt 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 bereimbursed from the proceeds of bonds issued under this chapter. Aneconomic development commission may provide for a maximum feeof one percent (1%) of the total amount of the issue to be paid to thecommission from the proceeds of the issue to help in covering itscosts of operation. However, the fee charged by a commission tocover 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 section18.5 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 andpollution control facilities on account of which the bonds areissued, including both direct financing of such facilities andprogram 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 theanticipated construction period of the facilities being financed,plus interest on bonds authorized by this chapter for a period ofone (1) year after that.
(4) Funding a reserve fund for payment of the principal of,premium (if any), and interest on bonds issued under thischapter.
(5) Working capital when financed in conjunction witheconomic development or pollution control facilities financedpursuant to program financing authorized under section 18.5 ofthis chapter if the program is funded with proceeds of taxablebonds.
Until the money is applied under subdivision (1), it is subject to alien in favor of the holders of the bonds or the trustee under the trustindenture, 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 ofoutstanding bonds issued under this chapter would be of benefit tothe health and general welfare of the unit and would comply with thischapter, it may authorize the issuance of bonds in accordance withIC 5-1-5 to refund those outstanding bonds. A savings to the issuingbody as provided in IC 5-1-5-2 is not required for the issuance of therefunding bonds, or the issuance of bonds to refund refunding bonds.
(b) Refunding bonds issued under this section are payable solelyfrom revenues and receipts derived from:
(1) financing agreements with the users or developers of thefacilities originally financed by the outstanding bonds, orrelated persons; or
(2) from payments made under guaranty agreements bydevelopers, users, or related persons.
The financing agreements or guaranties may be new financingagreements or guaranties or amendments of the original financingagreements or guaranties.
(c) Refunding bonds issued under this section are not in anyrespect a general obligation of the unit, nor are they payable in anymanner from revenues raised by taxation.
(d) Sections 18(b), 23, and 24 of this chapter do not apply to theissuance 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 fromstate taxes
Sec. 31. Bonds, notes, or warrants issued under this chapter and:
(1) proceeds received from their sale by a holder, to the extentof 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 connectionwith a financing under this chapter, is exempt from the registrationrequirements 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 economicdevelopment or pollution control facilities.
(b) A developer or user is liable for property taxes on economicdevelopment or pollution control facilities as provided by statute.However, this section does not deny any tax exemption a developeror user may have under other statutes because of the nature of thefacilities 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 agreementsauthorized 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 andmaintaining all approvals and permits required for the constructionof economic development or pollution control facilities under thischapter.
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 alleconomic development commissions;
(2) provide for efficient operations of all commissions; and
(3) allow the Indiana economic development corporation, on arecommendation basis, to assist all commissions in theirendeavors;
each commission shall file a report, within thirty (30) days after itsinitial meeting and on each subsequent January 31, with the fiscalbody that it serves and with the director of the Indiana economicdevelopment corporation. These reports must be in writing on a formprescribed by the Indiana economic development corporation andmust 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 ofthis chapter by a resolution adopted under section 24 of this chapterbefore June 1, 1985, remain valid regardless of any amendmentsmade to this chapter by P.L.20-1985.
As added by P.L.25-1987, SEC.59.