CHAPTER 23. MULTIPLE COUNTY INFRASTRUCTURE AUTHORITY
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 multiplejurisdiction 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 ofdirectors 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Repealed
(Repealed by P.L.86-1999, SEC.21.)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 countyparticipation; distribution of funds
Sec. 4. (a) A multiple jurisdiction infrastructure authority may beestablished under this chapter by:
(1) ordinance of the fiscal body of each unit participating in theauthority; and
(2) if a county is one (1) of the units participating in theauthority, the order of the executive of that county; and
(3) an agreement among the participating units, executed by theexecutive of each participating unit following the approval ofthe legislative body of each of the participating units.
(b) The authority is a public body corporate and politic. Theauthority is separate from the state, but the exercise by the authorityof 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 unitsparticipating in the authority.
(d) An authority may add additional participating units at any timeby 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 cooperationamong the units participating in the authority in order to assist thedevelopment of the units included in the agreement by doing thefollowing:
(1) Utilizing private and public sector resources to addressdevelopment problems and opportunities.
(2) Planning, developing, rehabilitating, and otherwisemanaging infrastructure located in the authority's jurisdiction.
(3) Supplementing, but not supplanting, traditional local or stateresponsibilities.
(4) Providing financial resources to local communities toaddress their infrastructure needs.
(5) Providing revenue bonding capacity and resources for bondretirement, or lease rental capacity and resources, that can bedirected to development or recapitalization of infrastructurelocated in the authority's jurisdiction.
(6) Providing the means to develop revenue producinginfrastructure ventures, where revenue can be rechanneled backinto the overall infrastructure development effort.
(7) Providing an overall balanced infrastructure investmentstrategy that addresses important needs of the participating unitsfor capital projects.
(8) Providing operating involvement appropriate to eachinfrastructure component.
(9) Providing for a continuing and stable source of publicfunding for infrastructure development for participating units.
(10) Providing the mechanism to address other regional servicesas 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 publicuse 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 politicalsubdivision 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 ofdirectors. The board is comprised of the following members:
(1) One (1) member appointed by the executive of each unitparticipating in the authority.
(2) One (1) member appointed by the fiscal body of each unitparticipating 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 chaptermust be a resident of the unit whose officials or representatives makethe appointment.
(b) A member appointed under section 9(1) or 9(2) of this chapterby a unit executive or unit fiscal body must be an elected official ofthe 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 ofthis chapter serves a term of four (4) years.
(b) The agreement establishing the authority under this chaptermust provide:
(1) that the terms of the initial members appointed under section9 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 ofthe initial members appointed under section 9 of this chapter toexpire in each of the first four (4) years that the agreement is ineffect.
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 theboard shall fill a vacancy on the board among the members appointedunder section 9 of this chapter by appointment for the unexpiredterm.
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 inconnection with the member's duties, as provided in the state travelpolicies and procedures established by the department ofadministration and approved by the budget agency.
(b) A member of the board is not entitled to either a salary or a perdiem 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 tofunction;
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 describedby 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 aquorum for the transaction of business. The affirmative vote of amajority of the board is necessary for an action to be taken by theboard.
(b) A member may vote by written proxy delivered in advance tothe chairman or secretary of the board.
(c) A vacancy in the membership of the board does not impair theright of a quorum to exercise all rights and perform all duties of theboard.
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 thechairman or at the request of at least three (3) members. The boardshall 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 ofits purposes, and issue revenue bonds, notes, or other evidencesof indebtedness, whether secured or unsecured (other thangeneral obligation bonds), to a person.
(2) Purchase, discount, sell, and negotiate notes and otherevidences of indebtedness.
(3) Procure insurance to guarantee, insure, coinsure, andreinsure against political and commercial risk of loss and anyother insurance the board considers necessary, includinginsurance to secure the payment of principal and interest onnotes or other obligations of the authority.
(4) Accept gifts, grants, or loans from, and enter into contractsor other transactions with, a federal or state agency,municipality, private organization, or other source.
(5) Adopt, amend, or rescind bylaws, rules, and regulationsnecessary or convenient for the performance of the authority'spowers and duties under this chapter.
(6) Sue and be sued.
(7) Purchase, receive, take by grant, gift, devise, bequest, orotherwise, lease or otherwise acquire, own, hold, improve,employ, use, and otherwise deal in and with, real and personalproperty, or an interest in real or personal property, whereversituated.
(8) Sell, convey, lease, exchange, transfer, or otherwise disposeof all its property or an interest in its property, whereversituated.
(9) Adopt a seal.
(10) Cooperate with other public and private organizations tocarry out the purposes of the authority.
(11) Exercise all other powers and functions necessary orappropriate to carry out the duties and purposes set forth in thischapter.
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 regulationswithout 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 interpretedbroadly 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 andselling revenue bonds under this chapter. The amount of the bondsissued under a resolution may not exceed the total, as estimated bythe board, of all expenses reasonably incurred in connection with thepurpose 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 issuancecosts, and interest accruing on the bonds before and during theconstruction period and for a reasonable period of time afterconstruction.
(3) Expenses such as legal fees and engineering fees.
(4) All other expenses necessary or incidental to accomplishingthe 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 ofeach bond:
(1) The denomination of the bond.
(2) The maturity date or dates, not exceeding fifty (50) yearsfrom the date of issue.
(3) The interest rate or rates if fixed rates are used, or themanner in which the interest rate will be determined if variableor adjustable rates are used.
(4) The registration privileges.
(5) That the bond does not constitute a debt of the state or apolitical subdivision within the meaning or application of aconstitutional provision or limitation, but that the bond ispayable solely as to both principal and interest from all or partof the revenues of the authority, as set forth in the resolution ofthe authority.
(6) The conditions and terms under which the bonds may beredeemed 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 thechairman of the board;
(2) shall be attested by the manual or facsimile signature of thesecretary of the board;
(3) shall be imprinted or impressed with the seal of theauthority;
(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 orfacsimile signature appears on the bond, no longer hold thoseoffices.
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 ofnegotiable instruments under IC 26, subject to their provisions forregistration, and are incontestable in the hands of a bona fidepurchaser 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 theboard at a public or private sale at a time or times determined by theboard.
As added by P.L.346-1989(ss), SEC.7.
IC 36-7-23-28
Disposition of bond proceeds; bond maturities; rights ofbondholders; rights and duties of directors
Sec. 28. The proceeds of bonds issued under this chapter areappropriated for the purpose for which the bonds are issued. Theproceeds shall be deposited and disbursed in accordance with anyprovisions and restrictions that the board provides in the resolutionor trust indenture authorizing the issuance of the bonds in the firstinstance and the issuance of any refunding bonds, or in a trustindenture authorized and approved by resolution of the board. Thematurities of the bonds, the rights of the holders, and the rights,duties, and obligations of the board are governed in all respects bythis 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 thecorporate obligations only of the authority and are payable solelyfrom and secured exclusively by the pledge of all or part of therevenues 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 hasbeen made under this chapter, the general assembly convenants withthe authority and the purchasers or owners of those bonds that thischapter will not be repealed or amended in any manner that willadversely affect the imposition of a tax in which revenue was thebasis of the pledge as long as the principal of, or interest on, any ofthose 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 longterm 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 theauthority.
(b) If the board determines to appoint an executive director, theboard shall appoint a nominating committee composed of membersof the board. The committee must submit a recommendation to theboard concerning the individuals qualified to serve as executivedirector.
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 ofthe authority in accordance with the policies of the board andunder the control and direction of the board;
(2) maintain and be custodian of all books, documents, andpapers filed with the authority and the official seal of theauthority; and
(3) perform other duties directed by the members to carry outthe 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 forsalaries, allowable expenses of the board or of an employee or
consultant, and the expenses incidental to the operation of theauthority.
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 anddocuments of the authority; and
(2) give certificates under the seal of the authority to the effect thatthe 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 attorneygeneral or any other state officer, employ legal counsel, technicalexperts, and permanent or temporary officers, agents, and employeesthat the board determines necessary to carry out the efficientoperation of the authority. The board shall determine thequalification, duties, compensation, and terms of office of personsemployed 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 oremployees of the authority the administrative duties the boardconsiders 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 theemployees 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 thestate.
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 whohas, will have, or later acquires an interest, direct or indirect, in atransaction with the authority shall immediately disclose the natureand extent of the interest in writing to the board as soon as themember 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 beannounced at the first meeting of the board following the disclosureand entered upon the minutes of that meeting. Upon disclosure, themember or employee shall not participate in an action by the boardor authority authorizing the transaction. However, an interestdescribed under section 40 of this chapter does not invalidate anaction by the board or authority with the participation of thedisclosing member before the time when the member became awareof the interest or should reasonably have become aware of theinterest.
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 ofthe state or a political subdivision does not forfeit that office oremployment by reason of acceptance of membership on the board orof 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 oraccountability 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 anddesirable 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 thischapter, shall be deposited as soon as practicable in a separateaccount or accounts in one (1) or more financial institutions. Themoney in these accounts shall be paid on checks signed by thechairman or other officers or employees of the authority or by wiretransfer or other electronic means that the board authorizes. Alldeposits of money shall, if required by the board, be secured in amanner 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 theauthority under this chapter are trust funds to be held and appliedsolely 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 anannual 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 orheld by the authority under this chapter is public property used forpublic and governmental purposes. All the property, along with theincome from the property, is exempt from all taxes imposed by thestate or a political subdivision, except for the financial institutionstax imposed under IC 6-5.5 or a state inheritance tax imposed underIC 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 politicalsubdivision
Sec. 49. All expenses incurred by the board in carrying out thischapter are payable solely from funds provided under this chapter.This chapter does not authorize the board to incur indebtedness orliability on behalf of or payable by the state or a politicalsubdivision.
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, submitin an electronic format under IC 5-14-6 an annual report of itsactivities for the preceding year to the legislative council. Eachmember of the general assembly may receive a copy of the report bysubmitting a request to the executive director of the legislativecouncil.
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 fortha 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 chaptermay be adopted by the board after a public hearing. Notice of thehearing must be published one (1) time, at least ten (10) days beforethe hearing, in one (1) newspaper published in each county in whicha participating unit is located in accordance with IC 5-3-1. The noticemust provide a summary of the resolution.
(b) Fees, rates, and charges adopted by the authority for aparticular infrastructure shall comply with statutes authorizing unitsto adopt fees, rates, and charges for that particular type ofinfrastructure 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 anyinfrastructure that could be financed with the proceeds of bondsissued 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 theauthority from any revenues of the authority.
(b) A lease may provide that payments by the authority to thelessor are required only to the extent and only for the period that thelessor is able to provide the leased infrastructure in accordance withthe lease. The terms of each lease must be based upon the value ofthe infrastructure leased and may not create a debt of the authority ora member for purposes of the Constitution of the State of Indiana.
(c) A lease may be entered into by the authority only after a publichearing by the board at which all interested parties are provided theopportunity to be heard. After the public hearing, the board mayadopt a resolution authorizing the execution of the lease on behalf ofthe authority if the board finds that the service to be providedthroughout the term of the lease will serve the public purpose of theauthority 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 sothat the obligations of the authority to make the lease rental paymentsare not considered debt of the authority or a member for purposes ofthe Constitution of the State of Indiana.
(f) Except as provided in this section, no approvals of anygovernmental 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 underIndiana law or admitted to do business in Indiana may lease facilitiesreferred to in section 53 of this chapter to an authority under thischapter.
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 underthis chapter is exempt from the registration requirements of IC 23-19or 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 thebonds 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 chapterare 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 befinanced under this chapter, may be financed by any one (1) or moreor any combination of one (1) or more of the methods provided forin this chapter. The authority may pledge any money or mortgage orpledge property available to it under this chapter as set forth inIC 5-1-14-4 and any member may pledge any money or mortgage orpledge property available to it to the authority as set forth in theagreement creating the authority. Any such pledge or mortgage by amember to the authority shall be governed by and binding underIC 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 ofbonds. 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 toissue bonds or to do any act or perform anything under this chapterexcept as prescribed by this chapter. The powers conferred by thischapter are in addition to, and not a subsitute for, and the limitationsimposed by this chapter do not affect, the powers conferred by anyother statute.
As added by P.L.346-1989(ss), SEC.7.