CHAPTER 2. OPERATION AND FINANCING OF TOLL ROADS
IC 8-15-2
Chapter 2. Operation and Financing of Toll Roads
IC 8-15-2-1
Purpose; powers; applicability to the authority
Sec. 1. (a) In order to remove the handicaps and hazards on thecongested highways in Indiana, to facilitate vehicular trafficthroughout the state, to promote the agricultural and industrialdevelopment of the state, and to provide for the general welfare bythe construction of modern express highways embodying safetydevices, including center division, ample shoulder widths, long sightdistances, multiple lanes in each direction, and grade separations atintersections with other highways and railroads, the authority may:
(1) subject to subsection (d), construct, reconstruct, maintain,repair, and operate toll road projects at such locations as shallbe approved by the governor;
(2) in accordance with such alignment and design standards asshall be approved by the authority and subject to IC 8-9.5-8-10,issue toll road revenue bonds of the state payable solely fromfunds pledged for their payment, as authorized by this chapter,to pay the cost of such projects;
(3) finance, develop, construct, reconstruct, improve, ormaintain improvements for manufacturing, commercial, orpublic transportation activities within a county through whicha toll road passes;
(4) in cooperation with the Indiana department of transportationor a political subdivision, construct, reconstruct, or finance theconstruction or reconstruction of an arterial highway or anarterial street that is located within a county through which atoll road passes and that:
(A) interchanges with a toll road project; or
(B) intersects with a road or a street that interchanges witha toll road project;
(5) finance improvements necessary for developingtransportation corridors in northwestern Indiana; and
(6) exercise these powers in participation with anygovernmental entity or with any individual, partnership, limitedliability company, or corporation.
(b) Notwithstanding subsection (a), the authority shall notconstruct, maintain, operate, nor contract for the construction,maintenance, or operation of transient lodging facilities on, oradjacent to, such toll road projects.
(c) This chapter:
(1) applies to the authority only when acting for the purposesset forth in this chapter; and
(2) does not apply to the authority when acting under any otherstatute for any other purpose.
(d) Notwithstanding any other law, neither the authority nor anoperator selected under IC 8-15.5 may carry out any of the followingactivities under this chapter unless the general assembly enacts a
statute authorizing that activity:
(1) Carrying out construction for Interstate Highway 69 in atownship having a population of more than seventy-fivethousand (75,000) and less than ninety-three thousand fivehundred (93,500).
(2) Imposing tolls on motor vehicles for use of the part of aninterstate highway that connects a consolidated city and a cityhaving a population of more than eleven thousand five hundred(11,500) but less than eleven thousand seven hundred forty(11,740).
(Formerly: Acts 1951, c.281, s.1; Acts 1959, c.285, s.1.) As amendedby Acts 1980, P.L.74, SECS.222, 223; P.L.109-1983, SEC.4;P.L.48-1986, SEC.3; P.L.18-1990, SEC.128; P.L.8-1993, SEC.143;P.L.89-1997, SEC.1; P.L.235-2005, SEC.115; P.L.214-2005,SEC.51; P.L.47-2006, SEC.8; P.L.1-2006, SEC.156; P.L.1-2007,SEC.80.
IC 8-15-2-1.1
Mandatory transfer of funds
Sec. 1.1. (a) A written agreement between the authority and a city,town, or county under section 1 of this chapter, or a similargovernment cooperative statute, may provide for a mandatorytransfer of funds by the auditor of state under this section if one (1)of the parties becomes more than sixty (60) days late in making apayment required by the agreement.
(b) To obtain a mandatory transfer of funds, the party to whom thefunds were to be paid under the terms of the written agreement mustcertify in writing to the auditor of state:
(1) that a written agreement between the parties authorizes themandatory transfer of funds as provided in subsection (a);
(2) that the owing party was notified in writing of the amountowed;
(3) that the payment is more than sixty (60) days past due;
(4) the names of the parties; and
(5) the amount of the payment due.
(c) Upon receipt of a certificate as specified in subsection (b), theauditor of state shall:
(1) immediately notify the delinquent party of the claim; and
(2) if proof of payment is not furnished to the auditor of statewithin thirty (30) days after the delinquent party has beennotified, transfer the unpaid amount from the delinquent party'sallocations from the motor vehicle highway account to the otherparty.
(d) Transfers shall be made under subsection (c) until the unpaidamount has been paid in full under the terms of the agreement.However, the agreement may be amended if both the department andthe unit agree to amortize the transfer over a period of time not toexceed five (5) years.
As added by P.L.116-1989, SEC.2.
IC 8-15-2-1.3
Procedures for allocation of money; considerations in prioritizingand selecting projects
Sec. 1.3. (a) The authority shall establish a written procedure forallocating money to projects described in section 1(a)(3) and 1(a)(4)of this chapter.
(b) The procedure established under this section must include atleast the following:
(1) An application procedure to identify projects that qualify forfunding.
(2) Criteria for prioritizing projects.
(3) Procedures for selecting projects.
(4) Procedures for reporting the results of the selection processand the status of projects to the commission on state tax andfinancing policy.
(c) The prioritization and selection process under this sectionmust give consideration to the following:
(1) The impact of the project on toll road usage.
(2) Consistency of the project with local transportation plans.
(3) The extent to which the project will have local financialparticipation relative to local available resources.
(4) The amount of vehicular traffic served.
(5) The potential local economic impact.
(6) Whether the project is deemed to be an emergency by theapplicant and the authority.
As added by P.L.83-1996, SEC.2.
IC 8-15-2-2
Pledge state faith and credit
Sec. 2. (a) Toll road revenue bonds issued under the provisions ofthis chapter:
(1) shall not be deemed to constitute a debt of the state or of anypolitical subdivision thereof or a pledge of the faith and creditof the state or of any such political subdivision; and
(2) shall be payable soley from an allocation of money from therural transportation road fund under IC 8-9.5-8-16 or from thefunds pledged for their payment as authorized by this chapter,unless such bonds are refunded by refunding bonds issuedunder the provisions of this chapter, which refunding bondsshall be payable solely from funds pledged for their payment asauthorized by this chapter.
(b) All such revenue bonds shall contain on the face thereof astatement to the effect that the bonds, as to both principal andinterest, are not an obligation of the state of Indiana, or of anypolitical subdivision thereof, but are payable solely from fundspledged for their payment, as authorized by this chapter.
(c) All expenses incurred in carrying out the provisions of thischapter shall be payable solely from an allocation of money from therural transportation road fund under IC 8-9.5-8-16 or from fundsprovided under this chapter and nothing contained in this chapter
shall be construed to authorize the authority to incur indebtedness orliability on behalf of or payable by the state or any politicalsubdivision thereof.
(Formerly: Acts 1951, c.281, s.2.) As amended by Acts 1980, P.L.74,SECS.224, 225; P.L.109-1983, SEC.5; P.L.386-1987(ss), SEC.7.
IC 8-15-2-3
Repealed
(Repealed by P.L.109-1983, SEC.50.)
IC 8-15-2-4
Definitions
Sec. 4. As used in this chapter, the following words and termsshall have the following meanings, unless the context shall indicateanother or different meaning or intent:
(1) "Authority" refers to the Indiana finance authorityestablished under IC 4-4-11.
(2) "Capitalized interest" means:
(A) interest costs on toll road revenue bonds before andduring the period of construction of the project for thepayment of the cost of which the bonds were issued, and forone (1) year after completion of construction; and
(B) interest costs on succeeding lien bonds authorized bythis chapter for the period from the date of such bonds untilthe date when the prior outstanding toll road revenue bonds,for which revenues are pledged, are retired, but not later thanten (10) years from the date of issue of the succeeding lienbonds.
(3) "Department" refers to the Indiana department oftransportation.
(4) "Project" or "toll road project" means any new or existingexpress highway, limited access facility, superhighway, ormotorway constructed under the provisions of this chapter oraccepted as a toll road under IC 8-23-7, including all bridges,tunnels, overpasses, underpasses, interchanges, entrance plazas,approaches, tollhouses, service stations, and administration,storage, and other buildings and facilities which the authoritymay deem necessary or desirable for the operation of theproject, together with all property, rights, easements, andinterests which may be acquired by the authority for theconstruction or the operation of the project. "Project" or "tollroad project" includes any subsequent improvement,betterment, enlargement, extension, or reconstruction of anexisting project. "Project" or "toll road project" also includes aproject connecting the state of Indiana with an adjacent state.Each project or toll road project may be constructed or extendedin such sections as the authority may from time to timedetermine, and shall be separately designated by name ornumber, which designation shall also apply to any project whichis a subsequent improvement, betterment, enlargement,
extension, or reconstruction of such project. The construction,maintenance, or operation, of transient lodging facilities on, oradjacent to any such project, or the contracting therefor, shallnot be considered as within the definition of "project" or "tollroad project".
(5) "Cost" as applied to a toll road project or any part of a tollroad project includes:
(A) the cost of construction, including bridges over or underexisting highways and railroads;
(B) the cost of acquisition of all land, rights-of-way,property, rights, easements, and interests acquired by theauthority for such construction;
(C) the cost of demolishing or removing any buildings orstructures on land so acquired, including the cost ofacquiring any lands to which such buildings or structuresmay be moved;
(D) the cost of diverting highways, interchange of highways,and access roads to private property, including the cost ofland or easements therefor;
(E) the cost of all machinery and equipment;
(F) financing charges and capitalized interest;
(G) the cost of funding any reserves to secure the paymentof toll road revenue bonds;
(H) the cost of traffic estimates and of engineering and legalexpenses, plans, specifications, surveys, estimates of costand revenues;
(I) other expenses necessary or incident to determining thefeasibility or practicability of constructing any such project;
(J) administrative expense;
(K) such other expenses as may be necessary or incident tothe construction of the project, the financing of suchconstruction, and the placing of the project in operation; and
(L) the cost of conversion to a toll road project of a statehighway or part of a highway accepted as a toll road projectunder IC 8-23-7.
Any obligation or expense incurred by the department forsurveys, borings, preparation of plans and specifications, andother engineering services in connection with the constructionof a project under this chapter or for the repayment of a grantfrom a federal agency which the authority itself would beauthorized to repay under section 5(9) of this chapter inconnection with such project or with the issuance of bonds forthe payment of the cost of such project, shall be regarded as apart of the cost of such project and shall be reimbursed to thestate out of the proceeds of toll road revenue bonds asauthorized.
(6) "Owner" includes all individuals, copartnerships,associations, limited liability companies, or corporations havingany title or interest in any property, rights, easements, andinterests authorized to be acquired by this chapter. (7) "Revenues" means all tolls, rentals, gifts, grants, money, andall other funds and property coming into the possession orunder the control of the authority by virtue of the terms andprovisions of this chapter, except the proceeds from the sale ofbonds issued under the provisions of this chapter and earningsthereon.
(8) "Public roads" includes all public highways, roads, andstreets in the state, whether maintained by the state, county,city, township, or other political subdivision.
(9) "Transient lodging facility" means accommodations forovernight or temporary habitation, including, but not limited to,hotels, motels, motor courts, lodges, and inns, for persons usingany toll road project.
(10) "Toll road bonds" means all bonds issued under theprovisions of this chapter, including refunding bonds andsucceeding lien bonds.
(11) "State highway" means a public road for which thedepartment is responsible under IC 8-23-2.
(Formerly: Acts 1951, c.281, s.4; Acts 1959, c.285, s.2.) As amendedby Acts 1980, P.L.74, SECS.226, 227; Acts 1981, P.L.41, SEC.52;P.L.109-1983, SEC.6; P.L.386-1987(ss), SEC.8; P.L.68-1988,SEC.13; P.L.18-1990, SEC.129; P.L.8-1993, SEC.144;P.L.235-2005, SEC.116; P.L.85-2010, SEC.1.
IC 8-15-2-5
Powers
Sec. 5. The authority may do the following:
(1) Construct, maintain, repair, police, and operate toll roadprojects (as defined in this chapter), public improvements, andarterial streets and roads under section 1 of this chapter andestablish rules for the use of any such toll road project, publicimprovement, or arterial street or road.
(2) Issue toll road revenue bonds of the state, payable solelyfrom an allocation of money from the rural transportation roadfund under IC 8-9.5-8-16 or from revenues or from the proceedsof bonds issued under this chapter and earnings thereon, or fromall three (3), for the purpose of paying all or any part of the costof any one (1) or more toll road projects or for the purpose ofrefunding any other toll road revenue bonds.
(3) Establish reserves from the proceeds of the sale of bonds orfrom other funds, or both, to secure the payment of the bonds.
(4) Fix and revise from time to time and charge and collect tollsfor transit over each toll road project constructed by it.
(5) Acquire in the name of the state by purchase or otherwise,on such terms and conditions and in such manner as it maydeem proper, or by the exercise of the right of condemnation inthe manner as provided by this chapter, such public or privatelands, including public parks, playgrounds or reservations, orparts thereof or rights therein, rights-of-way, property, rights,easements, and interests, as it may deem necessary for carrying
out the provisions of this chapter. The authority may also:
(A) sell, transfer, and convey any such land or any interesttherein so acquired, or any portion thereof, whether bypurchase, condemnation, or otherwise, and whether suchland or interest therein had been public or private, when thesame shall no longer be needed for such purposes; and
(B) transfer and convey any such lands or interest therein asmay be necessary or convenient for the construction andoperation of any toll road project, or as otherwise requiredunder the provisions of this chapter to a state agency orpolitical subdivision.
(6) Designate the locations and establish, limit, and control suchpoints of ingress to and egress from each toll road project asmay be necessary or desirable in the judgment of the authorityto ensure the proper operation and maintenance of suchprojects, and to prohibit entrance to such project from any pointnot so designated. The authority shall not grant, for theoperation of transient lodging facilities, either ingress to oregress from any project, including the service areas thereof onwhich are located service stations and restaurants, and includingtoll plazas and paved portions of the right-of-way. The authorityshall cause to be erected, at its cost, at all points of ingress andegress, large and suitable signs facing traffic from eachdirection on the toll road. Such signs shall designate the numberand other designations, if any, of all United States or statehighways of ingress or egress, the names of all Indianamunicipalities with a population of five thousand (5,000) ormore within a distance of seventy-five (75) miles on such roadsof ingress or egress, and the distance in miles to suchdesignated municipalities.
(7) Make and enter into all contracts and agreements necessaryor incidental to the performance of its duties and the executionof its powers under this chapter, IC 8-9.5-8, or IC 8-15.5. Whenthe cost under any such contract or agreement, other than:
(A) a contract for compensation for personal services;
(B) a contract with the department under IC 8-9.5-8-7;
(C) a lease with the department under IC 8-9.5-8-8; or
(D) a contract, a lease, or another agreement underIC 8-15.5;
involves an expenditure of more than ten thousand dollars($10,000), the authority shall make a written contract with thelowest and best bidder after advertisement for not less than two(2) consecutive weeks in a newspaper of general circulation inMarion County, Indiana, and in such other publications as theauthority shall determine. Such notice shall state the generalcharacter of the work and the general character of the materialsto be furnished, the place where plans and specificationstherefor may be examined, and the time and place of receivingbids. Each bid shall contain the full name of every person orcompany interested in it and shall be accompanied by a
sufficient bond or certified check on a solvent bank that if thebid is accepted a contract will be entered into and theperformance of its proposal secured. The authority may rejectany and all bids. A bond with good and sufficient surety shallbe required by the authority of all contractors in an amountequal to at least fifty percent (50%) of the contract price,conditioned upon the faithful performance of the contract. Theauthority shall require a bid, performance, and payment bondfrom a contractor for a project if the estimated cost of theproject is more than two hundred thousand dollars ($200,000).The authority may require a bid, performance, or payment bondfrom a contractor for a project if the estimated cost of theproject is not more than two hundred thousand dollars($200,000).
(8) Employ consulting engineers, superintendents, managers,and such other engineers, construction and accounting experts,bond counsel, other attorneys with the approval of the attorneygeneral, and other employees and agents as may be necessary inits judgment to carry out the provisions of this chapter, and tofix their compensation. However, all such expenses shall bepayable solely from the proceeds of toll road revenue bondsissued under the provisions of this chapter or from revenues.
(9) Receive and accept from any federal agency, subject toIC 8-23-3, grants for or in aid of the construction of any tollroad project, and receive and accept aid or contributions fromany source of either money, property, labor, or other things ofvalue, to be held, used, and applied only for the purposes forwhich such grants and contributions may be made, and repayany grant to the authority or to the department from a federalagency if such repayment is necessary to free the authority fromrestrictions which the authority determines to be in the publicinterest to remove.
(10) Establish fees, charges, terms, or conditions for anyexpenditures, loans, or other form of financial participation inprojects authorized as public improvements on arterial streetsand roads under section 1 of this chapter.
(11) Accept gifts, devises, bequests, grants, loans,appropriations, revenue sharing, other financing and assistance,and any other aid from any source and agree to and comply withconditions attached to the aid.
(12) Accept transfer of a state highway to the authority underIC 8-23-7-23 and pay the cost of conversion of the statehighway to a toll road project.
(13) Enter into contracts or leases with the department underIC 8-9.5-8-7 or IC 8-9.5-8-8 and in connection with thecontracts or leases agree with the department for coordinationof the operation and the repair and maintenance of toll roadprojects and tollways which are contiguous parts of the samepublic road, including joint toll collection facilities andequitable division of tolls. (14) Enter into public-private agreements under IC 8-15.5 anddo all acts and things necessary or proper to carry out thepurposes set forth in IC 8-15.5.
(15) Do all acts and things necessary or proper to carry out thischapter.
(Formerly: Acts 1951, c.281, s.5; Acts 1957, c.273, s.1; Acts 1959,c.285, s.3; Acts 1969, c.86, s.1.) As amended by Acts 1977, P.L.112,SEC.1; Acts 1980, P.L.74, SECS.228, 229; Acts 1981, P.L.41,SEC.53; Acts 1982, P.L.62, SEC.10; P.L.109-1983, SEC.7;P.L.48-1986, SEC.4; P.L.386-1987(ss), SEC.9; P.L.18-1990,SEC.130; P.L.47-2006, SEC.9; P.L.133-2007, SEC.9.
IC 8-15-2-5.2
Prohibition of sale, conveyance, or mortgage
Sec. 5.2. The authority may not sell, convey, or mortgage a tollroad project.
As added by P.L.47-2006, SEC.10.
IC 8-15-2-5.5
Policing of toll roads
Sec. 5.5. (a) The authority may, if it determines to do so:
(1) employ its own police officers for the purpose of policingany toll road under its jurisdiction;
(2) designate one (1) or more of such officers for the purpose ofpolicing any toll road under its jurisdiction; and
(3) designate one (1) of such officers as chief or superintendent.
(b) The police officers so employed by the authority are vestedwith all necessary police powers to enforce the provisions of the lawsof the state of Indiana and without writ or warrant for violationthereof when committed in their presence. To this end, policeofficers employed by the authority shall be peace officers and shallhave within the property limits of the toll road project the samepowers with respect to the enforcement of laws as have sheriffs,constables, and police officers in their respective jurisdictions. Anywarrant of arrest or search warrant issued by proper authority of thestate may be executed by any police officers employed by theauthority within the property limits of the toll road project.
(c) All uniformed police officers employed by the authority shallcarry arms, and nonuniformed police officers employed by theauthority may carry arms if in the performance of their duties.
(Formerly: Acts 1971, P.L.99, SEC.8.) As amended by Acts 1981,P.L.41, SEC.54; P.L.109-1983, SEC.8.
IC 8-15-2-6
Additional powers
Sec. 6. (a) The authority may:
(1) construct grade separations at intersections of any toll roadproject with public roads, state highways, and railroads; and
(2) change and adjust the lines and grades of such public roads,state highways, railroads, and public utility facilities.The change and adjustment of lines and grades of public roads andstate highways is subject to the approval of the division ofgovernment having jurisdiction of that road or highway. The cost ofsuch grade separation and any damage incurred in changing andadjusting the lines and grades of such roads, highways, railroads, andpublic utility facilities, shall be ascertained and paid by the authorityas a part of the cost of such toll road project.
(b) If the authority shall find it necessary to change the locationof any portion of any public road, state highway, railroad, or publicutility facility, it shall cause the same to be reconstructed at suchlocation as the division of government having jurisdiction over suchroad, highway, railroad, or public utility facility shall deem mostfavorable and of substantially the same type and in as good conditionas the original road, highway or railroad, or public utility facility.The cost of such reconstruction, relocation, or removal and anydamage incurred in changing the location of any such road, highway,railroad, or public utility facility shall be ascertained and paid by theauthority as a part of the cost of such toll road project.
(c) The authority shall have authority to petition, in the mannerprescribed in IC 36-7-3-12, the legislative body of the municipalityor of the county wherein is situated any public road or part thereof,affected by the location therein of any toll road project, for thevacation or relocation of such road or any part thereof.
(d) In addition, the authority and its authorized agents andemployees after proper notice may enter upon any lands, waters, andpremises in the state for the purpose of making surveys, soundings,drillings, and examinations as are necessary or proper for thepurposes of this chapter, and such entry shall not be deemed atrespass, nor shall an entry for such purposes be deemed an entryunder any condemnation proceedings which may be then pending.However, before entering upon the premises of any railroad, noticeshall be given to the superintendent of such railroad involved, at leastfive (5) days in advance of such entry, that survey, sounding, drilling,and examination shall be made between the rails, or so close to arailroad track as would render said track unusable. The authorityshall make reimbursement for any actual damage resulting to suchlands, waters, and premises and to private property located in, on,along, over, or under such lands, waters, and premises as a result ofsuch activities. The state of Indiana, subject to the approval of thegovernor, consents to the use of all lands owned by it, includinglands lying under water, which are necessary or proper for theconstruction or operation of any toll road project, provided adequatecompensation is made for such use.
(e) The authority shall also have power to make reasonableregulations for the installation, construction, maintenance, repair,renewal, relocation, and removal of tracks, pipes, mains, conduits,cables, wires, towers, poles, and other equipment and appliances(referred to in this subsection as "public utility facilities") of anypublic utility in, on, along, over, or under any toll road project.Whenever the authority shall determine that it is necessary that any
such public utility facilities which are located in, on, along, over, orunder any such project should be relocated in such project, or shouldbe removed from such project, the public utility owning or operatingsuch facilities shall relocate or remove the same in accordance withthe order of the authority; however, the cost and expenses of suchrelocation or removal, including the cost of installing such facilitiesin a new location or new locations, and the cost of any lands, or anyrights or interests in lands, and any other rights, acquired toaccomplish such relocation or removal, shall be ascertained and paidby the authority as a part of the cost of such project excepting casesin which such equipment or facilities are located within the limits ofexisting highways or public thoroughfares being constructed,reconstructed, or improved under the provisions of this chapter. Incase of any such relocation or removal of facilities, the public utilityowning or operating the same, its successors or assigns, maymaintain and operate such facilities, with the necessaryappurtenances, in the new location or new locations for as long aperiod, and upon the same terms and conditions, as it had the right tomaintain and operate such facilities in their former location orlocations subject, however, to the state's right of regulation under itspolice powers.
(Formerly: Acts 1951, c.281, s.6.) As amended by Acts 1980, P.L.74,SEC.230; P.L.109-1983, SEC.9; P.L.5-1988, SEC.51.
IC 8-15-2-7
Powers to purchase
Sec. 7. The authority may:
(1) acquire by purchase, whenever it shall deem such purchaseexpedient, any land, property, rights, rights-of-way, franchises,easements, and other interests in lands as it may deem necessaryor convenient for the construction and operation of any toll roadproject upon such terms and at such price as may be consideredby it to be reasonable and can be agreed upon between theauthority and the owner thereof, and to take title thereto in thename of the state;
(2) sell, transfer, and convey any such land or any interesttherein so acquired, or any portion thereof, when the same shallno longer be needed for such purposes; and
(3) transfer and convey any such lands or interests therein asmay be necessary or convenient for the construction andoperation of any toll road project, or as otherwise requiredunder this chapter.
(Formerly: Acts 1951, c.281, s.7; Acts 1957, c.273, s.2.) As amendedby Acts 1980, P.L.74, SEC.231; P.L.109-1983, SEC.10.
IC 8-15-2-8
Powers to appropriate
Sec. 8. The authority may acquire by appropriation any land,property, rights, rights-of-way, franchises, easements, or otherproperty necessary or proper for the construction or the efficient
operation of any toll road project in the manner provided byIC 8-23-7. However, a compensation for the property so taken shallfirst be made in money as provided by law. Nothing in this chaptershall authorize the authority to take or disturb property or facilitiesbelonging to any public utility or to a common carrier engaged ininterstate commerce, which property or facilities are required for theproper and convenient operation of the public utility or commoncarrier, unless provision is made for the restoration, relocation, orduplication of the property or facilities elsewhere at the sole cost ofthe authority excepting, however, cases in which the equipment orfacilities are located within the limits of existing highways or publicthoroughfares being constructed, reconstructed, or improved underthe provisions of this chapter.
(Formerly: Acts 1951, c.281, s.8.) As amended by Acts 1980, P.L.74,SEC.232; P.L.109-1983, SEC.11; P.L.18-1990, SEC.131.
IC 8-15-2-9
Toll road revenue bonds
Sec. 9. (a) Subject to IC 8-9.5-8-10, the authority is authorized toprovide by a resolution at one (1) time or from time to time for theissuance of toll road revenue bonds of the state for the purpose ofpaying all or any part of the cost of any one (1) or more toll roadprojects. The principal of and the interest on such bonds shall bepayable solely from an allocation of money from the ruraltransportation road fund under IC 8-9.5-8-16 or from the revenues orfrom the proceeds of bonds issued under the provisions of thischapter and earnings thereon, or from all three (3).
(b) The bonds of each issue shall:
(1) be dated;
(2) bear interest at such rate or rates as shall be established bythe authority;
(3) mature at such time or times not exceeding forty (40) yearsfrom their date or dates, as may be determined by the authority;and
(4) be made redeemable before maturity at the option of theauthority at such price or prices and under such terms andconditions as may be fixed by the authority prior to the issuanceof the bonds.
(c) The authority shall:
(1) determine the form of the bonds, including any interestcoupons to be attached thereto;
(2) fix the denomination or denominations of the bonds; and
(3) fix the place or places of payment of principal and interest,which may be at any bank or trust company within or withoutthe state.
(d) The bonds shall be signed by the chairman of the authority orby his facsimile signature, and attested to by the manual or thefacsimile signature of the public finance director, and any couponsattached thereto shall bear the facsimile signature of the chairman ofthe authority. In case any officer whose signature or a facsimile of
whose signature shall appear on any bonds or coupons shall cease tobe such officer before the delivery of such bonds, such signature orsuch facsimile shall nevertheless be valid and sufficient for allpurposes the same as if he had remained in office until such delivery.The authority may also provide for the authentication of the bonds bya trustee or fiscal agent.
(e) All bonds issued under the provisions of this chapter shallhave and are declared to have all the qualities and incidents ofnegotiable instruments under the negotiable instruments law of thestate of Indiana.
(f) The bonds may be issued in coupon or in registered form, orboth, as the authority may determine, and provisions may be madefor the registration of any coupon bonds as to principal alone andalso as to both principal and interest, and for the reconversion intocoupon bonds of any bonds registered as to both principal andinterest.
(g) The authority may sell such bonds in such manner and forsuch price as it may determine to be for the best interests for thestate, either at a public or private sale.
(h) The proceeds of the bonds of each issue shall be:
(1) used solely for the payment of the cost of the toll roadproject or projects for which such bonds shall have been issued;and
(2) disbursed in such manner and under such restrictions, if any,as the authority may provide in authorizing the issuance of suchbonds or in the trust agreement mentioned securing the same.
(i) If the proceeds of the bonds of any issue, by error of estimatesor otherwise, shall be less than such cost, additional bonds may inlike manner be issued to provide the amount of such deficit, and,unless otherwise provided in the resolution authorizing the issuanceof such bonds or in the trust agreement securing the same, shall bedeemed to be of the same issue and shall be entitled to payment fromthe same fund without preference or priority of the bonds first issued.
(j) If the proceeds of the bonds of any issue shall exceed the costof the toll road project or projects for which the same shall have beenissued, the surplus shall be deposited to the credit of the sinking fundfor such bonds.
(k) Prior to the preparation of definitive bonds, the authority mayunder like restrictions, issue interim receipts or temporary bonds,with or without coupons, exchangeable for definitive bonds whensuch bonds shall have been executed and are available for delivery.The authority may also provide for the replacement of any bondswhich shall become mutilated or shall be destroyed or lost.
(l) Except as provided by IC 8-9.5-8-10, bonds may be issuedunder the provisions of this chapter without:
(1) obtaining the consent of any department, division,commission, board, bureau, or agency of the state; and
(2) any other proceedings or the happening of any otherconditions or things than those proceedings, conditions, orthings which are specifically required by this chapter.(Formerly: Acts 1951, c.281, s.9; Acts 1969, c.86, s.2; Acts 1971,P.L.99, SEC.2.) As amended by Acts 1980, P.L.74, SECS.233, 234;P.L.109-1983, SEC.12; P.L.386-1987(ss), SEC.10; P.L.5-1988,SEC.52; P.L.162-2007, SEC.32.
IC 8-15-2-10
Toll road revenue refunding bonds
Sec. 10. (a) Subject to IC 8-9.5-8-10, the authority may providefor the issuance of toll road revenue refunding bonds of the statepayable solely from the funds provided by this chapter for paymentfor the purpose of:
(1) refunding any bonds then outstanding which shall have beenissued under the provisions of this chapter, including thepayment of any redemption premium thereon and any interestaccrued or to accrue to the date of redemption of such bonds;and
(2) if deemed advisable by the authority, for the additionalpurpose of constructing improvements, extensions, orenlargements of the toll road project in connection with whichthe bonds to be refunded shall have been issued.
(b) The issuance of such bonds, the maturities and other detailsthereof, the rights of the holders thereof, and the rights, duties, andobligations of the authority in respect of the same, shall be governedby the provisions of this chapter insofar as the same may beapplicable.
(Formerly: Acts 1951, c.281, s.10.) As amended by Acts 1980,P.L.74, SECS.235, 236; P.L.109-1983, SEC.13.
IC 8-15-2-10.5
Toll road succeeding lien bonds
Sec. 10.5. (a) If at any time all revenues are pledged to secure thepayment of any toll road revenue bonds then outstanding, theauthority, rather than providing for the issuance of another series ofbonds equally secured by a pledge of such revenues or for immediaterefunding of such bonds, may as it considers it advisable, provide byresolution for the issuance of toll road succeeding lien bonds of thestate for the purpose of paying all or any part of the cost of any one(1) or more toll road projects, or for the present or future refundingof part or all of the outstanding toll road revenue bonds, or for bothpurposes.
(b) Notwithstanding any other provision of this chapter, revenuesshall not be considered to be pledged for the payment of suchsucceeding lien bonds, including the interest thereon, so long as anyof such prior bonds are outstanding but, upon retirement of suchprior bonds, such revenues shall be subjected immediately to apledge securing the succeeding lien bonds by the terms of the trustagreement under which such succeeding lien bonds are issuedwithout any further action by the authority.
(c) Succeeding lien bonds must provide that, pending payment ofall such prior outstanding bonds, interest on the succeeding lien
bonds shall be paid solely from the portion of the proceeds of thesucceeding lien bonds designated for the payment of capitalizedinterest and from the earnings on such proceeds. After such prioroutstanding bonds have been redeemed or retired, the principal of,premium, if any, and the interest on, the succeeding lien bonds shallbe payable solely from the revenues and other funds pledged for suchpayment.
(d) The issuance and sale of succeeding lien bonds, the maturitiesand other details thereof, the rights of the holders thereof, and therights, duties and obligations of the authority with respect thereto,shall be governed by the provisions of this chapter insofar as thesame may be applicable, and the authority need not comply with therequirements of any other law applicable to the issuance of bondsother than as set forth in this chapter.
As added by Acts 1980, P.L.74, SEC.237. Amended by Acts 1981,P.L.41, SEC.55; P.L.109-1983, SEC.14.
IC 8-15-2-11
Journal of authority
Sec. 11. All final actions of the authority shall be journalized, andthe journal shall be open to the inspection of the public at allreasonable times.
(Formerly: Acts 1951, c.281, s.11.) As amended by P.L.109-1983,SEC.15.
IC 8-15-2-12
Taxation
Sec. 12. (a) The exercise of the powers granted by this chapterwill be in all respects for:
(1) the benefit of the people of the state;
(2) the increase of their commerce and prosperity; and
(3) the improvement of their health and living conditions.
(b) As the operation and maintenance of toll road projects by theauthority will constitute the performance of essential governmentalfunctions, the authority shall not be required to pay any taxes orassessments upon any toll road project or any property acquired orused by the authority under the provisions of this chapter or upon theincome therefrom.
(c) The bonds issued under the provisions of this chapter, theirtransfer, and the income therefrom (including any profit made on thesale thereof) shall at all times be free from taxation within the state.
(Formerly: Acts 1951, c.281, s.12.) As amended by Acts 1980,P.L.74, SEC.238; P.L.109-1983, SEC.16.
IC 8-15-2-13
Trust agreements securing bond issue
Sec. 13. (a) In the discretion of the authority, any bonds issuedunder the provisions of this chapter may be secured by a trustagreement by and between the authority and a corporate trustee,which may be any trust company or bank having the powers of a trust
company within or without the state.
(b) Any such trust agreement may pledge or assign the tolls andother revenue to be received from such project or any other projector projects constructed under the provisions of this chapter, subjectonly to valid prior pledges and except as provided by this chapterwith respect to succeeding lien bonds, but shall not convey ormortgage any toll road project or any part thereof.
(c) Any such trust agreement or any resolution providing for theissuance of such bonds may contain such provisions for protectingand enforcing the rights and remedies of the bondholders as may bereasonable and proper and not in violation of law, includingcovenants setting forth the duties of the authority in relation to:
(1) the acquisition of property and the construction,improvement, maintenance, repair, operation, and insurance ofthe toll road project or projects in connection with which suchbonds shall have been authorized, or of which the revenues arepledged;
(2) the rates of toll to be charged, and the custody,safeguarding, and application of all moneys; and
(3) the employment of consulting engineers in connection withthe construction or operation of such project or projects.
(d) It shall be lawful for any bank or trust company incorporatedunder the laws of the state which may act as depository of theproceeds of bonds or of revenue to furnish such indemnifying bondsor to pledge such securities as may be required by the authority.
(e) Any such trust agreement may set forth the rights and remediesof the bondholders and of the trustee, and may restrict the individualright of action by bondholders as is customary in trust agreements ortrust indentures securing bonds or debentures of corporations. Inaddition, any such trust agreement may contain such other provisionsas the authority may deem reasonable and proper for the security ofthe bondholders.
(f) All expenses incurred in carrying out the provisions of anysuch trust agreement may be treated as a part of the cost of theoperation of the toll road project or projects.
(Formerly: Acts 1951, c.281, s.13; Acts 1971, P.L.99, SEC.3.) Asamended by Acts 1980, P.L.74, SECS.239, 240; P.L.109-1983,SEC.17.
IC 8-15-2-14
Toll collection
Sec. 14. (a) The authority may:
(1) fix, revise, charge, and collect tolls for the use of each tollroad project by any person, partnership, association, limitedliability company, or corporation desiring the use of any partthereof, including the right-of-way adjoining the paved portionand for placing thereon telephone, telegraph, electric light, orpower lines;
(2) fix the terms, conditions, and rates of charge for such use,including assessments for the failure to pay required tolls,
subject, however, to the state's police power; and
(3) collect tolls, user fees, or other charges through manual ornonmanual methods, including, but not limited to, automaticvehicle identification systems, electronic toll collectionsystems, and, to the extent permitted by law, including rulesadopted by the authority under IC 8-15-2-17.2(a)(10), globalpositioning systems and photo or video based toll collection ortoll collection enforcement systems.
(b) Notwithstanding subsection (a), no toll or charge shall bemade by the authority under this section or under a public-privateagreement entered into under IC 8-15.5 for:
(1) the operation of temporary lodging facilities located upon oradjacent to any project, nor may the authority itself operate orgratuitously permit the operation of such temporary lodgingfacilities by other persons without any toll or charge; or
(2) placing in, on, along, over, or under such project, suchtelephone, telegraph, electric light or power lines, equipment,or facilities as may be necessary to serve establishments locatedon the project or as may be necessary to interconnect any publicutility facilities on one (1) side of the toll road project withthose on the other side.
(c) All contracts executed by the authority shall be preserved inthe principal office of the authority.
(d) In the case of a toll road project that is not leased to thedepartment under IC 8-9.5-8-7, the tolls shall be fixed and adjustedfor each toll road project so that the aggregate of the tolls from theproject, together with other revenues that are available to theauthority without prior restriction or encumbrance, will at least beadequate to pay:
(1) the cost of operating, maintaining, and repairing the tollroad project, including major repairs, replacements, andimprovements;
(2) the principal of and the interest on bonds issued inconnection with the toll road project, as the principal andinterest becomes due and payable, including any reserve orsinking fund required for the project; and
(3) the payment of principal of and interest on toll road bondsissued by the authority in connection with any other toll roadproject, including any reserve or sinking fund required for theproject, but only to the extent that the authority provides byresolution and subject to the provisions of any trust agreementrelating to the project.
(e) Not less than one (1) year before the date that final paymentof all such bonds, interest, and reimbursement is expected by thechairman of the authority to be completed, the chairman shall notifythe state budget committee in writing of the expected date of finalpayment.
(f) Such tolls shall not be subject to supervision or regulation byany other commission, board, bureau, or agency of the state.
(g) The tolls, rents, and all other revenues derived by the authority
from the toll road project, except those received in accordance witha public-private agreement under IC 8-15.5, shall be used as follows:
(1) To pay the cost of operating, maintaining, and repairing thetoll road project, including major repairs, replacements, andimprovements, to the extent that those costs are not paid out ofother funds.
(2) To the extent provided for in the resolution authorizing theissuance of bonds under this chapter or in the trust agreementsecuring the bonds, to pay:
(A) the principal of and interest on any bonds as theprincipal and interest become due; or
(B) the redemption price or purchase price of the bondsretired by call or purchase.
(3) Except as prohibited by the resolution authorizing theissuance of bonds under this chapter or the trust agreementsecuring them, for any purpose relating to any toll road project,including the subject toll road project, as the authority providesby resolution.
(h) Neither the resolution nor any trust agreement by which apledge is created needs to be filed or recorded except in the recordsof the authority.
(i) The use and disposition of moneys to the credit of any sinkingfund shall be subject to the provisions of any resolution orresolutions authorizing the issuance of any bonds or of any trustagreement. Except as may otherwise be provided in this chapter orin any resolution or any trust agreement, any sinking fund shall be afund for all bonds without distinction or priority of one over another,subject, however, to such priorities as may arise from prior pledges.
(j) In the case of a toll road project that is leased to the departmentunder IC 8-9.5-8-8, the lease must require that the department fixtolls for the toll road project that comply with IC 8-9.5-8-8(c)(6).
(k) User fees (as defined in IC 8-15.5-2-10) for a toll road projectthat is subject to a public-private agreement under IC 8-15.5 shall beset in accordance with IC 8-15.5-7.
(Formerly: Acts 1951, c.281, s.14; Acts 1959, c.285, s.4; Acts 1971,P.L.99, SEC.4.) As amended by Acts 1980, P.L.74, SECS.241, 242;P.L.109-1983, SEC.18; P.L.386-1987(ss), SEC.11; P.L.8-1993,SEC.145; P.L.47-2006, SEC.11.
IC 8-15-2-14.5
Tolls
Sec. 14.5. (a) Subject to the provisions and requirements of anytrust agreement providing for the issuance of toll road revenue bondsand only to the extent permitted by such trust agreement, theauthority shall fix the tolls for any toll road under its jurisdiction.
(b) Subsection (a) does not apply to tolls fixed, authorized, orestablished in accordance with a public-private agreement underIC 8-15.5.
(Formerly: Acts 1971, P.L.99, SEC.9.) As amended by Acts 1980,P.L.74, SECS.243, 244; P.L.109-1983, SEC.19; P.L.214-2005,
SEC.52; P.L.47-2006, SEC.12.
IC 8-15-2-14.7
Appropriations to development authority
Sec. 14.7. (a) As used in this section, "development authority"refers to the development authority established under IC 36-7.5-2-1.
(b) An appropriation made by the general assembly to thedevelopment authority may be distributed to the developmentauthority only if all transfers required from cities and counties to thedevelopment authority under IC 36-7.5-4-2 have been made.
(c) An appropriation made by the general assembly to thedevelopment authority may be distributed to the developmentauthority only after:
(1) the budget committee has reviewed; and
(2) the director of the office of management and budget hasapproved;
the comprehensive strategic development plan submitted inaccordance with IC 36-7.5-3-4.
(d) If the Indiana Toll Road is sold or leased before January 1,2008 (other than a lease to the department), and the sale or leaseagreement does not require the purchaser or lessee to continuemaking the distributions required by subsection (b), the treasurer ofstate shall pay the amount, if any, appropriated by the generalassembly to the development authority fund established underIC 36-7.5-4-1.
(e) Amounts distributed or paid to the development authorityunder this section may be used for any purpose of the developmentauthorized under IC 36-7.5.
As added by P.L.214-2005, SEC.53. Amended by P.L.47-2006,SEC.13.
IC 8-15-2-15
Deposit of funds
Sec. 15. (a) All moneys received pursuant to the authority of thischapter, whether as proceeds from the sale of bonds or as revenues,shall be deemed to be trust funds, to be held and applied solely asprovided in this chapter. Such funds shall be kept in depositories asselected by the authority and may be invested until expended, all asprovided by law.
(b) The resolution authorizing the issuance of bonds of any issueor the trust agreement securing such bonds shall provide that anyofficer to whom, or any bank or trust company to which, suchmoneys shall be paid shall:
(1) act as trustee of such moneys; and
(2) hold and apply the same for the purposes of this chapter,subject to such regulations as this chapter and such resolutionor trust agreement may provide.
(c) This section does not apply to money paid or received withrespect to a toll road project that is the subject of a public-privateagreement under IC 8-15.5.(Formerly: Acts 1951, c.281, s.15.) As amended by Acts 1980,P.L.74, SECS.245, 246; P.L.109-1983, SEC.20; P.L.47-2006,SEC.14.
IC 8-15-2-16
Rights of bondholders
Sec. 16. Any holder of bonds issued under the provisions of thischapter or any of the coupons appertaining thereto, and the trusteeunder any trust agreement, except to the extent the rights granted bythis chapter may be restricted by any applicable trust agreement,may:
(1) either at law or in equity, by suit, action, mandamus, orother proceedings, protect and enforce any and all rights underthe laws of the state or granted by this chapter or under anyapplicable trust agreement or the resolution authorizing theissuance of such bonds; and
(2) enforce and compel the performance of all duties requiredby this chapter or by any applicable trust agreement orresolution to be performed by the authority or by any officerthereof, including the fixing, charging, and collecting of tolls.
(Formerly: Acts 1951, c.281, s.16; Acts 1971, P.L.99, SEC.5.) Asamended by Acts 1980, P.L.74, SEC.247; P.L.109-1983, SEC.21.
IC 8-15-2-17
Power to adopt rules and regulations
Sec. 17. The authority shall have power to adopt bylaws and,under IC 4-22-2, rules and regulations as it may deem advisable for:
(1) the control and regulation of traffic on any toll road project;
(2) the protection and preservation of property under itsjurisdiction and control; and
(3) the maintenance and preservation of good order within theproperty under its control.
However, such rules and regulations shall provide that public policeofficers shall be afforded ready access, while in the performance oftheir official duty, to all property under the jurisdiction of theauthority without the payment of tolls.
(Formerly: Acts 1951, c.281, s.17.) As amended by Acts 1978, P.L.2,SEC.855; Acts 1980, P.L.74, SEC.248; P.L.109-1983, SEC.22.
IC 8-15-2-17.1
Repealed
(Repealed by Acts 1980, P.L.74, SEC.434.)
IC 8-15-2-17.2
Scope of rules; violations; offenses; penalties
Sec. 17.2. (a) Notwithstanding IC 9, the authority may adoptrules:
(1) Establishing weight and size limitations for vehicles usinga toll road project, subject to the following:
(A) The operator of any vehicle exceeding any of the
maximum allowable dimensions or weights as set out by theauthority in rules and regulations shall apply to the authorityin writing, for an application for a special hauling permit,which application must be in compliance with all the termsthereof, and which application must be received at leastseven (7) days prior to the time of permitted entry shouldsuch permit be granted. Such permit, if granted, will bereturned to the applicant in duplicate, properly completedand numbered, and the driver of the vehicle shall have acopy to present to the toll attendant on duty at the point ofentry.
(B) The authority shall assess a fee for issuing a specialhauling permit. In assessing the fee, the authority shall takeinto consideration the following factors:
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