CHAPTER 29. LOCAL ENVIRONMENTAL RESPONSE FINANCING
IC 36-7-29
Chapter 29. Local Environmental Response Financing
IC 36-7-29-1
Application of chapter
Sec. 1. This chapter applies to the following units:
(1) A city having a population of more than seven thousand(7,000) but less than seven thousand three hundred (7,300).
(2) A county having a population of more than one hundredforty-eight thousand (148,000) but less than one hundredseventy thousand (170,000).
As added by P.L.44-1994, SEC.11. Amended by P.L.170-2002,SEC.161.
IC 36-7-29-2
"Board" defined
Sec. 2. As used in this chapter, "board" refers to the localenvironmental response financing board established by section 10 ofthis chapter.
As added by P.L.44-1994, SEC.11.
IC 36-7-29-3
"District" defined
Sec. 3. As used in this chapter, "district" refers to the specialtaxing district established by section 9 of this chapter.
As added by P.L.44-1994, SEC.11.
IC 36-7-29-4
"Qualified site" defined
Sec. 4. As used in this chapter, "qualified site" means a site thatis wholly or partially located in the district and on July 1, 1994, is:
(1) a site at which solid waste or substances are present ordeposited in or on the ground as an intended place of finallocation; or
(2) an industrial site where a substance is present in or on theground.
As added by P.L.44-1994, SEC.11.
IC 36-7-29-5
"Remedial action" defined
Sec. 5. As used in this chapter, "remedial action" has the meaningset forth in IC 13-11-2-185.
As added by P.L.44-1994, SEC.11. Amended by P.L.1-1996, SEC.87.
IC 36-7-29-6
"Removal" defined
Sec. 6. As used in this chapter, "removal" has the meaning setforth in IC 13-11-2-187.
As added by P.L.44-1994, SEC.11. Amended by P.L.1-1996, SEC.88.
IC 36-7-29-7
"Responsible person" defined
Sec. 7. As used in this chapter, "responsible person" has themeaning set forth in IC 13-11-2-192(b).
As added by P.L.44-1994, SEC.11. Amended by P.L.1-1996, SEC.89.
IC 36-7-29-8
"Substance" defined
Sec. 8. As used in this chapter, "substance" has the meaning setforth in IC 13-11-2-98 for the term "hazardous substance".
As added by P.L.44-1994, SEC.11. Amended by P.L.1-1996, SEC.90.
IC 36-7-29-9
Local environmental response taxing districts
Sec. 9. (a) A special taxing district to be known as the localenvironmental response taxing district is created in a city describedin section 1(1) of this chapter and in a county described in section1(2) of this chapter for the purpose of funding substance removal orremedial action for a qualified site. The district shall exist for thepublic purpose of protecting the health, safety, and welfare ofresidents in the district by substance removal or remedial action. Thegeneral assembly finds that the actions and purposes set forth in thischapter are public purposes.
(b) The district is coterminous with the territory of the unit.
As added by P.L.44-1994, SEC.11.
IC 36-7-29-10
Local environmental response financing boards
Sec. 10. (a) The district shall be governed by a localenvironmental response financing board.
(b) If the unit is a city described in section 1(1) of this chapter, theboard consists of five (5) members appointed by the city executive.
(c) If the unit is a county described in section 1(2) of this chapter,the board consists of the following six (6) members:
(1) Two (2) members appointed by the county executive.
(2) One (1) member appointed by the county fiscal body.
(3) Two (2) members appointed by the executive of themunicipality having the largest population in the district.
(4) One (1) member appointed by the executive of themunicipality that has the second largest population in thedistrict.
All board members appointed under this subsection must be localelected officials. A board member appointed under this subsectionwho ceases to be a local elected official forfeits membership on theboard.
(d) The term of office of a board member is four (4) years. Theappointing authority shall fill a vacancy on the board for theunexpired term.
(e) Board members are not entitled to compensation orreimbursement for any services or expenses.As added by P.L.44-1994, SEC.11.
IC 36-7-29-11
Resolutions
Sec. 11. The board may by its resolutions provide the procedurefor its actions, the manner of selection of the board's chairperson,treasurer, secretary, and the other officers or employees of thedistrict, their titles, terms of office, duties, number, andqualifications, and any other lawful subject necessary to theoperation of the district and the exercise of the power granted underthis chapter. Actions of a legislative nature must be by resolutionadopted by a majority of the board. Resolutions proposed may beread by title only unless a reading in full is requested by a memberof the board. Actions of an administrative or executive nature may betaken by a majority of the board or by officers of the board oremployees of the district as authorized by the board.
As added by P.L.44-1994, SEC.11.
IC 36-7-29-12
Powers and duties of boards
Sec. 12. (a) The board may:
(1) receive and disburse funds;
(2) sue and be sued;
(3) plan, finance, and manage substance removal or remedialaction at qualified sites;
(4) make and contract for plans, surveys, studies, andinvestigations necessary for the purpose of substance removalor remedial action at qualified sites;
(5) enter upon property to make surveys, soundings, borings,and examinations;
(6) acquire by negotiation any property or rights or interest inproperty reasonably required for substance removal or remedialaction under the bond resolution without following any otherstatutory procedures for that acquisition;
(7) accept gifts, grants, or loans of money, other property, orservices from any source, public or private, and comply with theterms of the gift, grant, or loan;
(8) borrow in anticipation of taxes;
(9) contract for professional services;
(10) enter into an interlocal cooperation agreement underIC 36-1-7 to obtain funds for:
(A) fiscal;
(B) administrative;
(C) managerial; or
(D) operational;
services from a county or municipality;
(11) conduct or contract for ongoing site maintenance, leachatecollection, and long term monitoring at a qualified site after thesubstance removal or remedial action is complete;
(12) enter into an agreement with a state or federal agency that
regulates remedial action or removal;
(13) pursue all legal remedies available as to other responsiblepersons who are not participating in the financing of thesubstance removal or remedial action through payment ofproperty taxes that, in the sole judgment of the board, arecommensurate with the responsible person's past use of thequalified site; and
(14) otherwise do all things necessary or proper to accomplishthe purposes of this chapter.
(b) This subsection applies to a district located in a countydescribed in section 1(2) of this chapter. In addition to the powers setforth in subsection (a), the board may levy a tax within the district topay the costs of operation of the district, subject to regular budgetand tax levy procedures. However, the maximum amount of taxeslevied each year may not exceed fifty thousand dollars ($50,000).The tax described in this subsection shall not be levied aftersubstance removal and remedial action at a qualified site have beencompleted.
(c) Money recovered by the district from responsible persons shallbe used for any of the following:
(1) To redeem bonds issued under section 13 of this chapter.
(2) To pay debt service on bonds issued under section 13 of thischapter.
(3) To reimburse a unit in the district for costs associated withremoval or remediation at the qualified site prior to the issuanceof bonds issued under section 13 of this chapter.
(4) To pay ongoing costs of the district associated withremediation or removal.
As added by P.L.44-1994, SEC.11.
IC 36-7-29-13
Issuance of bonds
Sec. 13. (a) Subject to section 15 of this chapter, the board mayissue district bonds under this section for the payment of the cost ofsubstance removal or remedial action at a qualified site.
(b) On adopting a resolution ordering the issuance of districtbonds, the board shall certify a copy of the resolution and a copy ofthe approval to the treasurer of the district, who shall prepare thedistrict bonds.
(c) The district bonds are special obligations of indebtedness ofthe district. The district bonds issued under this section, and intereston the district bonds, are payable solely out of a special tax levied onall of the property of the district or other funds that may, under thischapter, or under any other law, be used to pay debt service onbonds. The district bonds must recite the terms on the face of thedistrict bonds together with the purpose for which the district bondsare issued. For the purpose of raising money to pay district bondsissued under this section, the board shall levy each year a special taxon all of the property in the district in the amount and the mannernecessary to meet and pay the principal of the district bonds as they
severally mature, together with all accruing interest on them. The taxis declared to constitute the amount of benefits resulting to all of theproperty of the district.
(d) All proceeds from the sale of district bonds shall be kept as aseparate and specific fund, to pay the cost of substance removal orremedial action, and no part of the proceeds may be used for anyother purpose, except as provided in IC 5-1-13 and IC 5-1-14.
(e) The tax levied each year shall be certified to the treasurer ofthe district and to the county auditor. The tax levied and certifiedshall be estimated and entered upon the tax duplicate by the countyauditor and shall be collected and enforced. As the tax is collected bythe county treasurer, the tax shall be transferred to the treasurer ofthe district, kept in a separate fund to be known as the district bondfund, and applied to the payment of the principal of and interest onthe district bonds as the district bonds become due and to no otherpurpose, except as provided in IC 5-1-13 and IC 5-1-14.
(f) The special tax described in this section may not be leviedafter the last of the principal and interest on bonds issued under thischapter have been completely paid.
As added by P.L.44-1994, SEC.11.
IC 36-7-29-14
Form of bonds
Sec. 14. (a) All district bonds issued under this chapter may:
(1) be issued as serial or term bonds or as a combination ofboth;
(2) be executed and delivered by the district at any time andfrom time to time;
(3) bear the date or dates;
(4) bear the maximum interest rates, if fixed rates are used, orspecify any manner in which the interest rate will bedetermined, if variable or adjustable rates are used;
(5) be redeemable before their stated maturities on the termsand conditions and at premiums as determined by the board;
(6) be issued in any denomination of not less than five thousanddollars ($5,000);
(7) be in a form, either book entry or registered, or both;
(8) carry registration conversion privileges;
(9) be payable in a medium of payment and at a place or places,which may be at any one (1) or more banks or trust companieswithin or outside Indiana;
(10) provide for the replacement of mutilated, destroyed, stolen,or lost bonds;
(11) be authenticated in a manner and upon compliance withconditions;
(12) establish reserves from the proceeds of the sale of bonds orfrom other funds, or both, to secure the payment of the principaland interest on the district bonds issued under this chapter; and
(13) contain other terms and covenants;
as provided in the resolution of the board authorizing the district
bonds.
(b) The district bonds issued under this chapter may mature at thetime or times not to exceed forty (40) years.
(c) The district bonds issued under this chapter may bear eitherthe impressed or facsimile seal of the district and shall be executedby the manual or facsimile signature of the chairperson of the boardand attested by the manual or facsimile signature of the treasurer ofthe district, if one (1) of these signatures is manual. However, anysignatures may be facsimiles if the bonds are to be manuallyauthenticated by a fiduciary.
(d) The district bonds and the interest coupons appertaining tothem, if any, issued under this chapter are valid and bindingobligations of the district for all purposes in accordance with theterms of this chapter, notwithstanding that before delivery of thedistrict bonds and any appertaining interest coupons, any of thepersons whose signatures appear on the district bonds and anyappertaining interest coupons have ceased to be officers of thedistrict, as if the persons had continued to be officers of the districtuntil after delivery.
(e) The district bonds issued under this chapter may be sold atpublic or private sale for the price or prices that may be provided inthe resolution authorizing their issuance.
As added by P.L.44-1994, SEC.11.
IC 36-7-29-15
Amount of bonds
Sec. 15. (a) Except as provided in subsection (b) or (c), theamount of the district bonds issued under this chapter may notexceed the total amount that the board determines is reasonablynecessary to be incurred in connection with the substance removal orremedial action. The board shall base a determination under thissubsection on the best estimates available before the district bondsare issued.
(b) This subsection applies to a district located in a city describedin section 1(1) of this chapter. Notwithstanding any other law, thetotal amount of the district bonds issued under this chapter, includingdistrict bonds already issued and outstanding under this chapter, maynot exceed four percent (4%) of the total adjusted value of taxableproperty in the district as determined under IC 36-1-15 of the districtafter deducting all mortgage exemptions in the district.
(c) This subsection applies to a district located in a countydescribed in section 1(2) of this chapter. Notwithstanding any otherlaw, the total amount of the district bonds issued under this chapter,including district bonds already issued and outstanding under thischapter, may not exceed two percent (2%) of the total adjusted valueof taxable property in the district as determined under IC 36-1-15.
As added by P.L.44-1994, SEC.11. Amended by P.L.6-1997,SEC.212.
IC 36-7-29-16 Procedures for issuance of bonds
Sec. 16. (a) District bonds may be issued by a board under thischapter without following any procedures set forth in any otherstatute except that the board must:
(1) adopt a bond resolution after a public hearing followingpublic notice of the hearing published in accordance withIC 5-3-1;
(2) publish notice of the determination to issue district bonds inaccordance with IC 6-1.1-20-5;
(3) obtain the approval for the appropriation of the proceeds ofthe district bonds as set forth in IC 6-1.1-18-5 if theappropriation is an additional appropriation; and
(4) obtain the approval of the department of local governmentfinance for a tax levy under IC 6-1.1-18.5-8.
(b) The bond resolution must contain a finding that substanceremoval or remedial action at the qualified site will be of publicutility and benefit because the conditions at the qualified site aredetrimental to the social and economic interests of the district.
As added by P.L.44-1994, SEC.11. Amended by P.L.90-2002,SEC.485.
IC 36-7-29-17
Notes of indebtedness
Sec. 17. (a) A district:
(1) pending receipt of any grant; or
(2) in anticipation of the issuance of district bonds under thischapter;
may borrow money from any person and evidence the debt by a noteor notes executed by the chairperson of the board and the treasurerof the district. The note or notes must contain the terms andprovisions prescribed by the board.
(b) An issuance of a note or notes or evidence of indebtednessunder this section may be sold at a public or private negotiated sale.
(c) A note or notes issued or renewed under this section mustmature not more than five (5) years from the date of issuance of theoriginal note and must pledge for the payment of the principal andinterest the proceeds of the grant or district bonds.
(d) The board shall apply the proceeds of any note or notes issuedunder this section to the cost of the substance removal or remedialaction for which the grant is to be made or bonds issued, but nopurchaser of any obligations is liable for the proper application of theproceeds.
(e) Notes issued under this section must be approved by aresolution of the board.
As added by P.L.44-1994, SEC.11.
IC 36-7-29-18
Bond and note registration requirements
Sec. 18. A district bond or note issued in connection with afinancing under this chapter is exempt from the registration
requirements of IC 23.
As added by P.L.44-1994, SEC.11.
IC 36-7-29-19
Tax exemptions for bonds and notes
Sec. 19. All district bonds, as well as bond anticipation notes,issued under this chapter and the interest on them are exempt fromtaxation in accordance with IC 6-8-5.
As added by P.L.44-1994, SEC.11.
IC 36-7-29-20
Actions to contest bonds
Sec. 20. An action to contest the validity of the district bonds orto prevent their issuance must be brought within thirty (30) daysfollowing the publication of the public notice under section 16(a)(1)of this chapter.
As added by P.L.44-1994, SEC.11.
IC 36-7-29-21
Authority granted by chapter
Sec. 21. This chapter constitutes full authority for the issuance ofdistrict bonds. No procedure, proceedings, publications, notices,consents, approvals, orders, acts, or things by a board, an officer, acommission, a department, an agency, or an instrumentality of thestate is required to issue district bonds or to do any act or performanything under this chapter, except as may be prescribed in thischapter. The powers conferred by this chapter are in addition to, andnot in substitution for, and the limitations imposed by this chapter donot affect the powers conferred by any other statute.
As added by P.L.44-1994, SEC.11.
IC 36-7-29-22
Guaranty of rights
Sec. 22. The general assembly covenants and agrees with theholders of any district bonds that as long as any district bonds issuedunder this chapter are outstanding and unpaid, the state:
(1) will not limit or alter the rights of the district to fulfill theterms of any agreements made with the holders of the districtbonds; and
(2) will not in any way impair the rights and remedies of theholders of the district bonds;
until the district bonds, together with interest on the district bonds,interest on any unpaid installment of interest, and all costs andexpenses in connection with any action or proceedings by or onbehalf of the bondholders are fully paid, met, and discharged.
As added by P.L.44-1994, SEC.11.
IC 36-7-29-22.5
Lien on property
Sec. 22.5. (a) After removal or remedial action is initiated under
this chapter, the district may impose a lien on the property on whichthe removal or remedial action is undertaken. The lien may securethe payment to the district of an amount of money equal to theamount of money expended periodically by the district to finance theremoval or remedial action.
(b) In order to perfect a lien arising under subsection (a), thedistrict must file notice of the lien in the office of the countyrecorder. At least thirty (30) days before filing notice of the lien inthe office of the county recorder, the district must provide bycertified mail to:
(1) the owner of the real property that would be subject to thelien, at the owner's last known address; or
(2) the tenant or other person having control of the real propertythat would be subject to the lien, at the last known address ofthe tenant or other person, if the owner of record cannot beidentified;
a written notice of the date on which the district intends to impose alien under subsection (a). The district shall also provide the countyrecorder with a copy of the written notice required by this subsection.
(c) When a notice of a lien arising under subsection (a) ispresented to the county recorder for filing, the county recorder shallenter the lien appropriately in the entry book and in themiscellaneous record. The entries made under this subsection mustshow the following:
(1) The date of filing.
(2) The book and page number or instrument number.
(3) The name of the person named in the notice.
(4) A legal description of the property if appropriate.
(5) A serial number or other identifying number given in thenotice.
(d) After a notice of a lien is filed with the county recorder undersubsection (c), the district shall provide notice of the filing of the lienby certified mail to:
(1) the owner of the property that is subject to the lien, at theowner's last known address; or
(2) the tenant or other person having control of the property thatis subject to the lien, at the last known address of the tenant orother person, if the owner of record cannot be identified.
(e) Subject to subsection (f), when a certificate of discharge of alien arising under this section is:
(1) issued by the board or its designated representative; and
(2) presented for filing in the office of the county recorder;
the county recorder shall record the certificate of discharge as arelease of the lien.
(f) To be recorded under subsection (e), the certificate must referto the county recorder's book and page number or instrument numberunder which the lien was recorded.
(g) When recording a release of a lien under subsection (e), thecounty recorder shall inscribe, in the margin of each entry made torecord the lien under subsection (d), a reference to the place where
the release is recorded.
(h) Upon:
(1) the recording of the certificate of discharge as a releaseunder subsection (e); and
(2) the inscribing of the references to the release under thissection;
a certificate of discharge of a lien arising under subsection (a)operates as a full discharge and satisfaction of the lien unless thereferences to the release inscribed under subsection (e) specificallynote the release as a partial lien release.
(i) A lien created under subsection (a) continues until the earlierof the following:
(1) The full discharge and satisfaction of the lien.
(2) The expiration of a twenty (20) year period from the date ofthe creation of the lien, unless an action to foreclose the lien ispending.
As added by P.L.60-1999, SEC.1.
IC 36-7-29-23
Construction of chapter
Sec. 23. This chapter is supplemental to all other statutes coveringthe funding of substance removal or remedial action.
As added by P.L.44-1994, SEC.11.