CHAPTER 9. JURISDICTION OVER CERTAIN AIRPORT FACILITIES
IC 8-21-9
Chapter 9. Jurisdiction Over Certain Airport Facilities
IC 8-21-9-1
Repealed
(Repealed by Acts 1980, P.L.74, SEC.434.)
IC 8-21-9-1.5
Purpose of chapter
Sec. 1.5. The purpose of this chapter is to:
(1) promote the public welfare and national security;
(2) serve the public interest, convenience, and necessity;
(3) promote air navigation and transportation (international,national, state, and local) in and through Indiana;
(4) increase air commerce;
(5) promote the efficient, safe, and economical handling of aircommerce; and
(6) assure the inclusion of Indiana in national and internationalprograms of air transportation.
As added by P.L.1-1989, SEC.19.
IC 8-21-9-1.6
Liberal construction of chapter
Sec. 1.6. This chapter is necessary for the welfare of Indiana andits inhabitants and shall be liberally construed to effect its purposes.
As added by P.L.1-1989, SEC.20.
IC 8-21-9-2
Definitions
Sec. 2. (a) As used in this chapter, the term:
(1) "Airport" means any location on land, water or upon anybuilding or other structure which is used for the landing andtaking off of aircraft, which provides for the shelter, supply orcare of aircraft, or a place used for receiving or dischargingpassengers or cargo by air.
(2) "Airport facility" includes the following: lands, accessroads, parking facilities, railroad siding facilities, snow removalor impacting equipment, fire and ambulance equipment, motorvehicles, apparatus or equipment for disseminating weatherinformation, for signaling, for radio directional finding or forradio or other electrical communication, any structure ormechanism for guiding or controlling flight in the air or thelanding and take-off of aircraft or otherwise in aid of airnavigation, piers, docks, wharves, warehouses, sheds, transitsheds, elevators, compressors, refrigeration, storage plants,hangars, shops, buildings, structures and other facilities,appurtenances and equipment necessary or useful in connectionwith the operation of a modern airport and every kind ofterminal or storage structure or facility designed for use in thehandling, storage, loading or unloading of freight or passengers
at airports, and every kind of transportation facility designed foruse in connection with an airport. The term "airport facility"includes the term "airport".
(3) "Commissioner" refers to the commissioner of thedepartment.
(4) "Cost", as applied to an airport facility, includes the cost ofconstruction; the cost of acquisition of all land, rights-of-way,property, rights, easements and interests acquired by theauthority for the construction; the cost of demolishing orremoving buildings or structures on land so acquired, includingthe cost of acquiring lands to which buildings or structures maybe moved; the cost of relocating public roads, railroads, publicutility facilities, including the cost of land or easements, thecost of all machinery and equipment, financing charges, interestprior to and during construction and for not exceeding two (2)years after the estimated date of completion of construction;cost of engineering, architectural and legal expenses, plans,specifications, surveys, estimates of traffic and revenues; otherexpenses necessary or incident to determining the feasibility orpracticability of constructing any airport facility; administrativeexpenses; and other expenses as are necessary or incident to theconstruction of an airport facility, the financing of theconstruction, and the placing of the airport facility in operation.The term includes the payment or reimbursement of obligationsincurred or loans or advances made by or to the department forany of the foregoing. The cost of an airport facility may include,instead of the cost of the acquisition of the land constituting thesite of such facility, the value of the land as determined by thedepartment. The proceeds of revenue bonds representing thevalue of the land shall be deposited in the "Airport Fund".
(5) "Current expenses" means the department's reasonable andnecessary costs of maintaining, repairing and operating theprojects and includes all administrative expenses, insurancepremiums, engineering expenses relating to operation andmaintenance, legal expenses, charges of the paying agents, taxeslawfully imposed on the department or its income or operationsor the property under its control and reserves for taxes andpayments in lieu of taxes, ordinary and usual expenses ofmaintenance and repair, including expenses not annuallyrecurring, expenses incurred in the performance of the powersunder this chapter and other expenses required to be paid by thedepartment under a trust agreement securing revenue bonds orby law. The term does not include any allowance fordepreciation or transfers to the credit of the sinking fund for therevenue bonds.
(6) "Department" refers to the Indiana department oftransportation.
(7) "Existing airport facilities" means the properties which areacquired by the department from public or private entities underthis chapter. (8) "Project" means the existing airport facilities or any airportfacility acquired, constructed, controlled or operated by thedepartment, together with all property, rights, easements andinterest appertaining to the facility, acquired for theconstruction or operation of the facility.
(b) Other words and phrases when used in this chapter shall, forthe purposes of this chapter, have the meanings found in IC 8-21-1,except as otherwise provided in this chapter.
(Formerly: Acts 1971, P.L.105, SEC.2.) As amended by Acts 1980,P.L.74, SEC.342; P.L.18-1990, SEC.158.
IC 8-21-9-3
Repealed
(Repealed by Acts 1980, P.L.74, SEC.434.)
IC 8-21-9-4
Repealed
(Repealed by Acts 1980, P.L.74, SEC.434.)
IC 8-21-9-5
Repealed
(Repealed by Acts 1980, P.L.74, SEC.434.)
IC 8-21-9-6
Repealed
(Repealed by Acts 1980, P.L.74, SEC.434.)
IC 8-21-9-7
Repealed
(Repealed by Acts 1980, P.L.74, SEC.434.)
IC 8-21-9-8
Repealed
(Repealed by Acts 1980, P.L.74, SEC.434.)
IC 8-21-9-9
Repealed
(Repealed by Acts 1980, P.L.74, SEC.434.)
IC 8-21-9-10
Repealed
(Repealed by Acts 1980, P.L.74, SEC.434.)
IC 8-21-9-11
Repealed
(Repealed by Acts 1980, P.L.74, SEC.434.)
IC 8-21-9-12
Jurisdiction; powers and duties
Sec. 12. (a) The department has jurisdiction only over two (2)
major new continental or intercontinental airport facilities designedand constructed to serve a part of Indiana or adjacent states.
(b) The department may designate the location and character of allairport facilities which the department may hold, own, or over whichit is authorized to act and to regulate all matters related to thelocation and character of the airport facilities.
(c) The department may designate the location and establish,limit, and control points of ingress to and egress from any airportproperty.
(d) The department may lease to others for development oroperation the parts of any airport or airport facility on terms andconditions as the department considers necessary.
(e) The department may make directly, or through hiring of expertconsultants, investigations, and surveys of whatever nature,including, but not limited to, studies of business conditions, freightrates, airport services, physical surveys of the conditions ofstructures, and the necessity for additional airports or for additionalairport facilities for the development and improvement of commerceand for the more expeditious handling of commerce, and to makestudies, surveys, and estimates as are necessary for the execution ofits powers under this chapter.
(f) The department may make and enter into all contracts,undertakings, and agreements necessary or incidental to theperformance of its duties and the execution of its powers under thischapter. When the cost of any such contract for construction, or forthe purchase of equipment, materials or supplies, involves anexpenditure of more than five thousand dollars ($5,000), thedepartment shall make a written contract with the lowest and bestbidder after advertisement for not less than two (2) consecutiveweeks in a newspaper of general circulation in Marion County,Indiana, and in such other publications as the department shalldetermine. Such notice shall state the general character of thematerials to be furnished, the place where plans and specificationstherefor may be examined, and the time and place of receiving bids.Each bid shall contain the full name of every person or companyinterested in it and shall be accompanied by a sufficient bond orcertified check on a solvent bank that if the bid is accepted a contractwill be entered into and the performance of its proposal secured. Thedepartment may reject any and all bids. A bond with good andsufficient surety, as shall be approved by the department, shall berequired of all contractors in an amount equal to at least fifty percent(50%) of the contract price conditioned upon the faithfulperformance of the contract.
(g) The department may fix and revise periodically and chargeand collect equitable rates, fees, rentals, or other charges for the useof any airport facility or airport facilities under its control, whichrates, fees, rentals, or other charges shall be in amounts reasonablyrelated to the cost of providing and maintaining the particular airportfacility or airport facilities for which these rates, fees, rentals, andother charges are established. (h) The department may make application for, receive, and acceptfrom any federal agency, grants for or in aid of the planning,construction, operating, or financing of any airport facility, and toreceive and accept contributions from any source of either money,property, labor, or other things of value, to be held, used and appliedfor the purposes for which made, in each case on such terms andconditions as the department considers necessary or desirable. Thedepartment may enter into and carry out contracts and agreements inconnection with this subsection.
(i) The department may appear in its own behalf before boards,commissions, departments, or other agencies of the federalgovernment or of any state or international conference and beforecommittees of the Congress of the United States and the generalassembly of Indiana in all matters relating to the designs,establishment, construction, extension, operations, improvements,repair, or maintenance of any airport or airport facility operated andmaintained by the department under this chapter, and to appearbefore any federal or state agencies in matters relating to air rates,airport services and charges, differentials, discriminations, laborrelations, trade practices, and all other matters affecting the physicaldevelopment of and the business interest of the department and thoseit serves.
(j) The department may contract for the services of consultingengineers, architects, attorneys, accountants, construction andfinancial experts, and such other individuals as are necessary in itsjudgment. However, the employment of an attorney shall be subjectto such approval of the attorney general as may be required by law.
(k) The department may do all things necessary and proper topromote and increase commerce within its territorial jurisdiction,including cooperation with civic, technical, professional, andbusiness organizations and associations, the office of tourismdevelopment, and the Indiana economic development corporation.
(l) The department may establish and maintain a traffic bureau forthe purpose of advising the department as to the airport's competitiveeconomic position with other airports.
(m) The department may contract for the use of any license,process, or device, whether patented or not, which the departmentfinds is necessary for the operation of any airport facility, and maypermit the use thereof by any lessee on such terms and conditions asthe department may determine. The cost of such license, process, ordevice may be included as part of the cost of the airport facility.
(n) The department may issue airport revenue bonds and airportrevenue funding bonds.
(o) The department may do all acts and things necessary or properto carry out the powers expressly granted in this chapter.
(Formerly: Acts 1971, P.L.105, SEC.2; Acts 1973, P.L.73, SEC.1;Acts 1975, P.L.34, SEC.8.) As amended by Acts 1980, P.L.74,SEC.343; Acts 1981, P.L.41, SEC.60; P.L.4-2005, SEC.116;P.L.229-2005, SEC.7.
IC 8-21-9-13
Regulations
Sec. 13. The department may adopt such rules as it may deemadvisable for the control and regulation of any airport or airportfacility or traffic on any airport or airport facility, for the protectionof and preservation of property under its jurisdiction and control, andfor the maintenance and preservation of good order within theproperty under its control. However, such rules must provide thatpublic officers shall be afforded ready access, while in performanceof their official duty, to all property under the jurisdiction or controlof the department without the payment of tolls.
(Formerly: Acts 1971, P.L.105, SEC.2.) As amended by Acts 1980,P.L.74, SEC.344; P.L.1-2009, SEC.72.
IC 8-21-9-14
Promotion of airport facilities; cooperation with federalgovernment; title to airport property
Sec. 14. The department shall prepare sketches, plans anddescriptive material relating to any such airport, or airport facility, asin its discretion may seem feasible; to compile data and prepareliterature as to the necessity or advisability thereof; and to do otheracts and things which it considers necessary to promote any suchairport or airport facility and deems to be in the public interest; tocarry on in its discretion negotiations and enter into agreements andcontracts with the federal government or agencies thereof for orrelating to the building and construction of any airport or airportfacility to be located within the State of Indiana; to locate andacquire a suitable site for any such airport or airport facility; and toconstruct, develop, maintain and operate the same in cooperationwith the federal government, or any agency thereof, or otherwise, insuch manner and on such terms as will, in the discretion of thedepartment, best serve the commercial, industrial and agriculturalinterests of the state. The title to all property included in any suchairport or airport facility shall be taken in the name of the state ofIndiana.
(Formerly: Acts 1971, P.L.105, SEC.2.) As amended by Acts 1980,P.L.74, SEC.345.
IC 8-21-9-15
Acquisition and disposition of land
Sec. 15. (a) If the department considers a purchase expedient, thedepartment may acquire by purchase any land, property, rights,rights-of-way, franchises, easements, and other interest in lands,including lands under water and riparian rights, as it considersnecessary or convenient for the construction and operation of anyairport or airport facility.
(b) The appropriation and condemnation of lands and easementsin lands authorized by this chapter must be made under the terms andconditions of and in the manner prescribed in IC 32-24-1.
(c) The department shall take title in the name of the state of
Indiana.
(d) The department may:
(1) sell, transfer, and convey any land or any interest in landacquired, or any part of the land or interest in land if the land orinterest in land is no longer needed for such purposes; and
(2) transfer and convey any lands or interests in lands as may benecessary or convenient for the construction and operation ofany airport or airport facility, or as otherwise required underthis chapter. However, a sale may not be made without theapproval of the governor first obtained and at not less than theappraised value established by three (3) independent appraisersappointed by the governor.
The department may restrict the use of any land sold by it andprovide for a reversion to the department if the land is not used forthe purpose represented by the purchaser. Provisions concerningrestrictions and reversions must be set out in appropriate covenantsin the deeds of conveyance. The deeds must be approved by thegovernor.
(e) The department may lease to others for development or useany part of the land owned by the department, together with anyairport facility on the land or to be constructed on the land, on termsthe department determines to be advantageous. Leases covering aperiod of more than four (4) years must be approved by the governor.Leases of lands under the jurisdiction or control of the departmentmay be made only for uses and purposes as are calculated tocontribute to the growth and development of the airport and airportfacilities under the jurisdiction or control of the department.
(f) If the department leases to others for a period of more thanfour (4) years an airport facility financed by the issuance of revenuebonds, the rental must be in an amount at least sufficient to pay theinterest on and principal of the amount of the bonds representing thecost of the airport facility to the extent the interest and principal ispayable during the term of the lease. The lease must provide for thepayment by the lessee of all costs of maintenance, repair, andinsurance.
(g) The department may acquire or purchase an existing airportfacility if:
(1) the facility is located on land acquired for the purpose ofconstructing a continental or an intercontinental airport; or
(2) operation of the airport would be detrimental to the safe useof the airport facility.
(h) The department may enter into contracts, leases and other useagreements with air carriers, airport concessionaires, airport tenants,and other airport users under agreed terms, conditions, charges, andfees for a term not exceeding twenty (20) years. However, leaseagreements for land rental may be entered into for a term notexceeding ninety-nine (99) years if the lessee will use the leased landfor the construction of buildings or other facilities at the lessee'sexpense.
(Formerly: Acts 1971, P.L.105, SEC.2.) As amended by Acts 1980,
P.L.74, SEC.346; P.L.2-2002, SEC.44.
IC 8-21-9-16
Eminent domain
Sec. 16. The department may acquire by appropriation, under theprovisions of the eminent domain law of the state, any land,including lands under water and riparian rights, property, rights,rights-of-way, franchises, easements or other property necessary orproper for the construction or the efficient operation of any airportor airport facility. The department is empowered to exercise suchpowers of eminent domain as may be conferred upon the authority byan Act of Congress of the United States now in force, or which mayhereafter be enacted. Title to the property condemned shall be takenin the name of the state of Indiana. Nothing herein shall authorize thedepartment to acquire by appropriation 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 such public utility or commoncarrier, unless provision is made for the restoration, relocation orduplication of such property or facilities elsewhere at the sole cost ofthe authority excepting, however, cases in which such equipment orfacilities are located within the limits of existing highways or publicthoroughfares.
(Formerly: Acts 1971, P.L.105, SEC.2.) As amended by Acts 1980,P.L.74, SEC.347.
IC 8-21-9-17
Political subdivisions authorized to transfer real property
Sec. 17. All counties, cities, towns, townships and other politicalsubdivisions and all public agencies and commissions of the state,notwithstanding any contrary provision of law, are hereby authorizedand empowered to lease, lend, grant, or convey to the department atits request upon such terms and conditions as the proper authoritiesof such counties, cities, towns, townships, other politicalsubdivisions or public agencies and commissions of the state maydeem reasonable and fair and without the necessity for anadvertisement, order of court or other action or formality, other thanthe regular and formal action of the authorities concerned, and anyreal property owned by any such municipality or governmentalsubdivision which may be necessary or convenient to the effectuationof the authorized purposes of the department.
(Formerly: Acts 1971, P.L.105, SEC.2.) As amended by Acts 1980,P.L.74, SEC.348.
IC 8-21-9-18
Relocation or removal of road, railroads, or public utility facilities
Sec. 18. If the department finds it necessary to change the locationof any portion of any public road, railroad or public utility facility,it shall cause the same to be reconstructed at such location as thedivision of government having jurisdiction over such road, highway,
railroad or public utility facility shall deem most favorable and ofsubstantially the same type and in as good condition as the originalroad, highway or railroad or public utility facility. The cost of suchreconstruction, relocation or removal and any damage incurred inchanging the location of any such road, highway, railroad or publicutility facility, shall be ascertained and paid by the department as apart of the cost of such airport or airport facility. The departmentmay petition the circuit court of the county wherein is situated anypublic road or part thereof, affected by the location therein of anyairport or airport facility, for the vacation or relocation of such roador any part thereof with the same force and effect as is now given byexisting laws to the inhabitants of any municipality or governmentalsubdivision of the state. The proceedings upon such petition, whetherit be for the appointment of appraisers or otherwise, shall be thesame as provided by existing laws for similar proceedings upon suchpetitions. In addition to the foregoing powers, the department and itsauthorized agents and employees, after proper notice, may enter uponany lands, waters and premises in the state for the purpose of makingsurveys, soundings, drillings, and examinations as are necessary orproper for the purposes of this chapter; and such entry shall not bedeemed a trespass, nor shall an entry for such purpose be deemed anentry under any condemnation proceedings which may be thenpending; however, before entering upon the premises of any railroad,notice shall be given to the superintendent of such railroad involvedat least five (5) days in advance of such entry. No survey, sounding,drilling and examination shall be made between the rails or so closeto a railroad track as would render said track unusable. Thedepartment may make reimbursement for any actual damageresulting to such lands, waters and premises and to private propertylocated in, on, along, over or under such lands, waters and premises,as a result of such activities. The State of Indiana, subject to theapproval of the governor, hereby consents to the use of lands ownedby it, including lands lying under water and riparian rights, which arenecessary or proper for the construction or operation of any airportor airport facility, provided adequate compensation is made for suchuse. The department may also make reasonable regulations for theinstallation, construction, maintenance, repair, renewal, relocationand removal of tracks, pipes, mains, conduits, cables, wires, towers,poles and other equipment and appliances (herein called "publicutility facilities") of any public utility in, on, along, over or under anyairport or airport facility. Whenever the department shall determinethat it is necessary that any such public utility facilities which noware, or hereafter may be, located in, on, along, over or under any suchairport or airport facility should be relocated, or should be removedfrom such airport or airport facility, the public utility owning oroperating such facilities shall relocate or remove the same inaccordance with the order of the department; however, the cost andexpenses of such relocation or removal including the cost ofinstalling such facilities in a new location or new locations and thecost of any lands, or any rights or interest in lands, and any other
rights, acquired to accomplish such relocations or removal, shall beascertained and paid by the department as a part of the cost of suchairport or airport facility, excepting, however, cases in which suchequipment or facilities are located within the limits of existinghighways or public thoroughfares being constructed, reconstructedor improved under the provisions of this chapter. In case of any suchrelocation or removal of facilities, the public utility owning oroperating the same, its successors or assigns, may maintain andoperate such facilities, with the necessary appurtenances, in the newlocation or new locations, for as long a period, and upon the sameterms and conditions, as it had the right to maintain and operate suchfacilities in their former location or locations subject, however, to thestate's right of regulation under its police powers.
(Formerly: Acts 1971, P.L.105, SEC.2.) As amended by Acts 1980,P.L.74, SEC.349.
IC 8-21-9-19
Maintenance, policing, and operation of airport facilities
Sec. 19. Each airport or airport facility or airport facilities whenconstructed and opened to traffic shall be maintained and kept ingood condition and repair by the department. Each such airportfacility or airport facilities shall also be policed and operated by suchforce of police, toll-takers and other operating employees as thedepartment may, in its discretion, employ. All public or privateproperty damaged or destroyed in carrying out the powers granted bythis chapter shall be restored or repaired and placed in its originalcondition as nearly as practicable or adequate compensation madetherefor out of funds provided under this chapter.
(Formerly: Acts 1971, P.L.105, SEC.2.) As amended by Acts 1980,P.L.74, SEC.350.
IC 8-21-9-20
Restricted zones in airports; air pollution restrictions
Sec. 20. In order to provide free air space for the safe descent,landing and ascent of aircraft and for the proper and safe use of anyairport or landing field acquired or maintained under this chapter, thedepartment is hereby given the right, powers and authority toestablish and fix by ordinance or ordinances a restricted zone orzones for such distance in any direction from the boundaries of suchairport or landing field, within which zone or zones so established,as in the opinion of the department is necessary and practicable, nobuilding or other structure shall be erected high enough to interferewith the descent of an aircraft at such approach angle as may bedeemed reasonably necessary for the safety for the type of operationthat is, or is anticipated to be, conducted at such landing field;however, the department may by ordinance, establish standardsregulating, within said zone or zones, the emission of air pollutantssuch as, but not limited to, smoke, dust, noxious fumes, glare andelectrical radiation which would compromise the safety of aircraft byinterfering with visability, operation of electrical equipment or any
other condition necessary for safe flight.
(Formerly: Acts 1971, P.L.105, SEC.2.) As amended by Acts 1980,P.L.74, SEC.351.
IC 8-21-9-21
Airport fund
Sec. 21. A special and distinct revolving fund is hereby created,to be known as the "Airport Fund." Expenditures from the fund shallbe made only for the acquisition of land including lands under waterand riparian rights, or options for the purchase of such land for anairport or airport facility site, and incidental expenses incurred inconnection with such acquisition, for the preparation of plans andspecifications for any part or all of the airport or airport facility, forstudies in connection with the airport or airport facility, and foradministrative expenses of the department. The fund shall be held inthe name of the department, shall be administered by the department,and all expenditures therefrom shall be made by the department,subject, however, to the approval by the governor, the state budgetagency, and the state budget committee of all expenditures of moneysadvanced to the fund by the State of Indiana. Requests for suchapproval shall be made in such form as shall be prescribed by thebudget agency, but expenditures for acquisition of land includinglands under water and riparian rights, or options for the purchase ofsuch land, shall be specifically requested and approved as to the landto be acquired and the amount to be expended. No transfers from saidfund to any other fund of the state shall be made except pursuant tolegislative action.
Upon the sale of airport revenue bonds for any airport facility orairport facilities, the funds expended from the "Airport Fund" inconnection with the development of such airport facility or airportfacilities and any obligation or expense incurred by the departmentfor surveys, preparation of plans and specifications, and otherengineering or other services in connection with development of suchproject shall be reimbursed to the "Airport Fund" from the proceedsof such bonds.
(Formerly: Acts 1971, P.L.105, SEC.2.) As amended by Acts 1980,P.L.74, SEC.352.
IC 8-21-9-22
Revenue bonds
Sec. 22. Airport revenue bonds issued under the provisions of thischapter shall not be deemed to constitute a debt of the state or of anypolitical subdivision thereof or a pledge of the faith and credit of thestate or of any such political subdivision, but such bonds shall bepayable solely from the funds pledged for their payment asauthorized under this chapter, unless such bonds are refunded byrefunding bonds, issued under this chapter, which refunding bondsshall be payable solely from funds pledged for their payment asauthorized herein. All such revenue bonds shall contain on the facethereof a statement to the effect that the bonds, as to both principal
and interest, are not an obligation of the State of Indiana, or of anypolitical subdivision thereof, but are payable solely from revenuespledged for their payment. All expenses incurred in carrying out thischapter shall be payable solely from funds provided under theauthority of this chapter, and nothing in this chapter contained shallbe construed to authorize the department to incur indebtedness orliability on behalf of or payable by the state or any politicalsubdivision thereof.
(Formerly: Acts 1971, P.L.105, SEC.2.) As amended by Acts 1980,P.L.74, SEC.353.
IC 8-21-9-23
Issuance of revenue bonds
Sec. 23. (a) The department may, subject to IC 8-9.5-5-8(6)(repealed), provide for the issuance of airport revenue bonds of thestate for the purpose of paying all or any part of the cost of an airportfacility or airport facilities. The principal of and the interest on thebonds shall be payable solely from the revenues specifically pledgedto the payment as authorized by section 27 of this chapter.
(b) The bonds of each issue shall be dated, shall bear interest atsuch rate or rates, and shall mature at such time or times notexceeding fifty (50) years from the date thereof, all as may bedetermined by the department, and may be made redeemable beforematurity, at the option of the department, at a price or prices andunder terms and conditions as may be fixed by the commissioner inan executive order providing for the issue.
(c) The department shall determine the form of the bonds,including attached interest coupons, and shall fix the denominationor denominations of the bonds and the place or places of payment ofprincipal and interest which may be at any bank or trust companywithin or without the state. The bonds shall be signed in the name ofthe department by the commissioner and the official seal of thedepartment shall be affixed thereto. Any coupons attached theretoshall bear the facsimile signature of the commissioner of thedepartment. If the commissioner whose signature or facsimile ofwhose signature shall appear on any bonds or coupons shall cease tobe the commissioner before the delivery of such bonds, suchsignature or such facsimile shall, nevertheless, be valid and sufficientfor all purposes as if the commissioner had remained in office untildelivery.
(d) All bonds issued under this chapter have all the qualities andincidents of negotiable instruments under the law of Indiana.
(e) The bonds may be issued in coupon or in registered form, orboth, as the department may determine. Provision may be made forthe registration of any coupon bonds as to principal alone and also asto both principal and interest and for the reconversion into couponbonds of any bonds registered as to both principal and interest.
(f) The bonds shall be sold at public sale in accordance with theprovisions of IC 21-32-3.
(g) The department may issue bonds in connection with a
self-liquidating airport facility or airport facilities without regard tomaximum interest rate limitation in this chapter or any other law andsell the bonds either at public or private sale as the department maydetermine. The provisions of IC 21-32-3 shall not be applicable tosuch sale.
(h) "Self-liquidating airport facility or airport facilities" means anairport facility or airport facilities for which a lease or leases havebeen executed providing for payment of rental in an amount at leastsufficient to pay the interest and principal of the bonds to be issuedto finance the cost of the airport facility or airport facilities andproviding for the payment of the lessee or lessees of all costs ofmaintenance, repair, and insurance of the airport facility or airportfacilities.
(Formerly: Acts 1971, P.L.105, SEC.2.) As amended by Acts 1980,P.L.74, SEC.354; P.L.18-1990, SEC.159; P.L.2-2007, SEC.137;P.L.1-2009, SEC.73.
IC 8-21-9-24
Proceeds of revenue bonds; interim receipts or temporary bonds;placement of lost or destroyed bonds
Sec. 24. The proceeds of the bonds of each issue shall be usedsolely for the payment of the cost of the airport facility or airportfacilities for which the bonds have been issued, and shall bedisbursed in the manner and under the restrictions, if any, as may beprovided in the resolution authorizing the issuance of the bonds or ina trust agreement securing the issue. If the proceeds of the bonds ofany issue, by error of estimates or otherwise, are less than the cost,additional bonds may in like manner be issued, subject toIC 8-9.5-5-8(6) (repealed), to provide the amount of the deficit, and,unless otherwise provided in the commissioner's executive orderauthorizing the issuance of the bonds or in the trust agreementsecuring the issue, are deemed to be of the same issue and entitled topayment from the same fund without preference or priority of thebonds first issued. If the proceeds of the bonds of any issue shallexceed the cost of the airport facility or airport facilities for whichthe bonds have been issued, the surplus shall be deposited to thecredit of the sinking fund for the bonds. Prior to the preparation ofdefinitive bonds, the department may, subject to IC 8-9.5-5-8(6)(repealed), issue interim receipts or temporary bonds, with or withoutcoupons, exchangeable for definitive bonds when the bonds havebeen executed and are available for delivery. The department mayalso provide for the replacement of any bonds which shall becomemutilated or shall be destroyed or lost.
(Formerly: Acts 1971, P.L.105, SEC.2.) As amended by Acts 1980,P.L.74, SEC.355; P.L.18-1990, SEC.160; P.L.1-2009, SEC.74.
IC 8-21-9-25
Refunding bonds
Sec. 25. The commissioner may, subject to IC 8-9.5-5-8(6)(repealed), provide for the issuance of airport revenue refunding
bonds of the state payable solely from revenues for the purpose ofrefunding any bonds then outstanding which have been issued underthis chapter, including the payment of any redemption premiumthereon and any interest accrued or to accrue to the date ofredemption of such bonds, and, if deemed advisable by thedepartment, for the additional purpose of constructing improvements,extensions, or enlargements of the airport facility or airport facilitiesin connection with which the bonds to be refunded have been issued.The issuance of the bonds, the maturities and other details thereof,the rights of the holders thereof and the rights, duties, and obligationsof the authority in respect of the same shall be governed by thischapter insofar as this chapter is applicable.
(Formerly: Acts 1971, P.L.105, SEC.2.) As amended by Acts 1980,P.L.74, SEC.356; P.L.18-1990, SEC.161; P.L.1-2009, SEC.75.
IC 8-21-9-26
Trust agreement to secure bonds
Sec. 26. (a) In the discretion of the department, any bonds issuedunder the provisions of this chapter may be secured by a trustagreement between the department and a corporate trustee, whichmay be any trust company or bank having the powers of a trustcompany within the state.
(b) An executive order issued by the commissioner providing forthe issuance of bonds for any airport facility or airport facilities, andany trust agreement pursuant to which such bonds are issued, maypledge or assign:
(1) all or any portion of the revenues received or to be receivedby the department from an airport facility or airport facilitiesexcept the part as may be necessary to pay the cost of theoperation, maintenance, and repair of the airport facility orairport facilities to the extent airport facility or airport facilitiesand to provide reserves therefor and depreciation reserves if andto the extent required by any bond resolution adopted or trustagreement executed by the department; and
(2) the net revenues of the department from other airportfacilities to the extent the net revenues are not otherwisepledged or assigned.
The department shall not convey or mortgage any airport, airportfacility or any part thereof.
(c) In authorizing the issuance of bonds for any particular airportfacility or airport facilities undertaken in connection with thedevelopment of an airport, the department may limit the amount ofbonds that may be issued as a first lien and charge against therevenues pledged to the payment of the bonds. The department mayauthorize the issuance from time to time of additional bonds securedby the same lien to provide funds for the completion of the airportfacility or airport facilities on account of which the original bondswere issued, or to provide funds to pay the cost of additional airportfacilities undertaken in connection with the development of theairport, or for both purposes. The additional bonds shall be issued on
terms and conditions as provided in the resolution authorizing theissuance of the bonds or in the trust agreement or a supplementalagreement and may be secured equally and ratably withoutpreference, priority, or distinction with the original issue of bonds ormay be made junior.
(d) Any pledge or assignment made by the department is valid andbinding from the time that the pledge or assignment is made, and therevenues pledged and received by the department shall immediatelybe subject to the lien of the pledge or assignment without physicaldelivery or further act. The lien of the pledge or assignment is validand binding against all parties having claims of any kind in tort,contract or otherwise against the department whether or not theparties have notice.
(e) Neither the resolution nor any trust agreement by which apledge is created or assignment made need be filed or recordedexcept in the records of the department. A trust agreement orresolution providing for the issuance of bonds may containprovisions for protecting and enforcing the rights and remedies of thebondholders as may be reasonable and proper and not in violation oflaw, including covenants setting forth the duties of the department inrelation to the acquisition of property and the construction,improvements, maintenance, repair, operation, and insurance of theairport facility or airport facilities in connection with which suchbonds shall have been authorized, the rates of fees, tolls, rentals, orother charges to be collected for the use of the airport facility orairport facilities, and the custody, safeguarding, and application of allmoney and provisions for the employment of consulting engineers inconnection with the construction or operation of such airport facilityor airport facilities.
(f) It is lawful for any bank or trust company incorporated underthe laws of the state that may act as depository of the proceeds ofbonds or other funds of the department to furnish indemnifyingbonds or to pledge securities as required by the department. A trustagreement may set forth the rights and remedies of the bondholdersand of the trustee and may restrict the individual right of action bybondholders as is customary in trust agreements or trust indenturessecuring bonds or debentures of private corporations. In addition, atrust agreement may contain other provisions as the department maydeem reasonable and proper for the security of the bondholders. Allexpenses incurred in carrying out the provisions of a trust agreementmay be treated as a part of the cost of the operation of the airportfacility or airport facilities.
(Formerly: Acts 1971, P.L.105, SEC.2.) As amended by Acts 1980,P.L.74, SEC.357; P.L.18-1990, SEC.162.
IC 8-21-9-27
Rights of bondholders
Sec. 27. 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 herein givel
may be restricted by the authmrizing resolution or trust agreement,may, either at law or in equity, by suit, action, mandamus or otherproceedings, protect and enforce any and all rights under the laws ofthe state or granted hereunder or under such trust agreement, or theresolution authorizing the issuance of such bonds, and may enforceand compel the performance of all duties required by this chapter orby such trust agreement or resolution to be performed by thedepartment or by any officer thereof, including the fixing, chargingand collecting of fees, tolls, rentals or other charges for the use of theairport or airport facility or airport facilities.
(Formerly: Acts 1971, P.L.105, SEC.2.) As amended by Acts 1980,P.L.74, SEC.358.
IC 8-21-9-28
Revenue bonds to constitute legal investments for variousinstitutions and fiduciaries
Sec. 28. Revenue bonds issued by the department under theprovisions of this chapter shall constitute legal investments for anyprivate trust funds, and the funds of any banks, trust companies,insurance companies, building and loan associations, credit unions,banks of discount and deposit, savings banks, loan and trust and safedeposit companies, rural loan and savings associations, mortgageguaranty companies, small loan companies and industrial loan andinvestment companies, and any other financial institutions organizedunder the laws of the state of Indiana. Such bonds are hereby madesecurities in which all public officers and public agencies of the stateand its political subdivisions may legally and properly invest fundsand such bonds may be properly and legally deposited with andreceived by any state or municipal officer or any agency or politicalsubdivision of the state for any purpose for which the deposit ofbonds or other obligations of the state is now or may hereafter beauthorized by law.
(Formerly: Acts 1971, P.L.105, SEC.2.) As amended by Acts 1980,P.L.74, SEC.359; P.L.42-1993, SEC.9.
IC 8-21-9-29
Fixing and collecting fees, tolls, rentals, and other charges
Sec. 29. The department may fix, review, revise, charge andcollect fees, tolls, rentals and other charges for the use of the airport,airport facility, airport facilities and lands under the jurisdiction orcontrol of the authority or services rendered by the department, andcontract with any person, partnership, association, limited liabilitycompany, or corporation desiring the use of any airport facility orairport facilities and appurtenances for any proper purpose, and fixthe terms, conditions, rentals, and rates of charges for such use. Suchfees, tolls, rentals and other charges shall be reasonably related to thecost of operation, maintenance and repair of the particular airportfacility or airport facilities for which the fees, tolls, rentals and othercharges are fixed, including a proper allocation of the administrativeexpenses of the department and in case revenue bonds are issued to
finance such airport facility or airport facilities, the fees, tolls, rentalsand other charges relating to that airport facility or airport facilitiesshall be established in an amount sufficient to pay the interest on andprincipal of the bonds in accordance with their terms, and alsosufficient to establish and maintain reserves created for all suchpurposes and for depreciation purposes. The fixing and collection ofsuch fees, tolls, rentals and other charges and the expenditure of therevenues derived therefrom shall not be subject to the supervision orregulation by any other officer, commission, board, bureau or agencyof the state. After such bonds have been duly paid and dischargedand all obligations under any trust agreement securing the same havebeen performed or satisfied, any remaining surplus net revenues andall surplus net revenues thereafter derived from the operation of suchairport or airports shall be paid into a sinking fund to be created bythe department and used only for the purpose of improving andmaintaining airport facilities under the jurisdiction of the department.
(Formerly: Acts 1971, P.L.105, SEC.2.) As amended by Acts 1980,P.L.74, SEC.360; P.L.8-1993, SEC.149.
IC 8-21-9-30
Deposit of funds
Sec. 30. All money received from any facility, pursuant to theauthority of this chapter, whether as proceeds from the sale of bonds,from revenues, or otherwise, shall be held and accounted for by thedepartment separate and apart from any other money of thedepartment and shall be deemed to be trust funds to be held andapplied solely and exclusively for the benefit of that facility asprovided in this chapter, but prior to the time when needed for use bythat facility may be invested by the department to the extent and inthe manner provided by IC 5-13, insofar as applicable. Such fundsshall be kept in depositories designated as depositories for funds ofthe state as selected by the department, in the manner provided by thegoverning statutes insofar as applicable. The resolution authorizingthe issuance of bonds or the trust agreement securing such bondsshall provide that any officer to whom, or any bank or trust companyto which money shall be entrusted, shall act as trustees of suchmoney and shall hold and apply the same for the purposes of thischapter, subject to the provisions of this chapter and of theauthorizing resolution or trust agreement.
(Formerly: Acts 1971, P.L.105, SEC.2.) As amended by Acts 1980,P.L.74, SEC.361; P.L.19-1987, SEC.25; P.L.3-1990, SEC.33.
IC 8-21-9-31
Tax exemptions; tax assessments
Sec. 31. (a) The exercise of the powers granted by this chapterwill be in all respects for the benefit of the people of the state, for theincrease of their commerce and prosperity, and for the improvementof their health and living conditions, and as the operation andmaintenance of an airport facility or airport facilities by thedepartment will constitute the performance of essential governmental
functions, the department shall not be required to pay any taxes orassessments upon any airport facility or airport facilities or anyproperty acquired or used by the department under the provisions ofthis chapter, or upon the income therefrom, and the bonds issuedunder the provisions of this chapter, the interest thereon, theproceeds received by a holder from the sale of such bonds to theextent of the holder's cost of acquisition, or proceeds received uponredemption prior to maturity or proceeds received at maturity, andthe receipt of such interest and proceeds shall be exempt fromtaxation in the state of Indiana for all purposes except the financialinstitutions tax imposed under IC 6-5.5 or a state inheritance taximposed under IC 6-4.1.
(b) All properties both real and personal owned and operated bythe department or leased by the department for proprietary purposesshall be assessed and added to the local tax rolls as any other privateproperty. Such proprietary operations, under control of either theauthority or a lessee of the department, shall be subject to Indianaadjusted gross income and sales tax laws.
(Formerly: Acts 1971, P.L.105, SEC.2.) As amended by Acts 1980,P.L.74, SEC.362; P.L.21-1990, SEC.41; P.L.254-1997(ss), SEC.15;P.L.192-2002(ss), SEC.145.
IC 8-21-9-32
Repealed
(Repealed by Acts 1980, P.L.74, SEC.434.)
IC 8-21-9-33
Repealed
(Repealed by Acts 1980, P.L.74, SEC.434.)
IC 8-21-9-34
Regional plan commissions; membership; powers and duties
Sec. 34. (a) In the event that there is in existence or is later createda regional plan commission having jurisdiction over any portion ofthe airport site purchased or otherwise controlled by the department:
(1) a representative appointed by the commissioner of thedepartment shall become a voting member of the regional plancommission with all rights and privileges of regularmembership, except that the department member shall bepermitted to claim no compensation or reimbursement forpersonal expenses or per diem from the regional plancommission; and
(2) upon appointment of a department representative to theregional plan commission, all requests or proposals for zoningamendments, subdivision plats, conditional use permits,exceptions, or variances from any zoning ordinance as well asfor the development of public facilities including requests andproposals for airports, parks, thoroughfares, hospitals, andschools within the zone or zones provided for in section 21 ofthis chapter shall be forwarded to the regional plan commission
by the appropriate public body for review and comment.
(b) The regional plan commission shall review proposalsdescribed in subsection (a)(2) and give consideration to aircraftsafety, public safety, and regional plans relating to the aircraftvicinity. If the regional plan commission does not return itscomments to the appropriate public body within thirty (30) days, thepublic body may proceed on the basis that the regional plancommission concurs with the proposals. Comment made by theregional plan commission shall be considered to be of an advisorynature only.
(Formerly: Acts 1971, P.L.105, SEC.2.) As amended by Acts 1980,P.L.74, SEC.363; P.L.3-1989, SEC.70; P.L.18-1990, SEC.163.
IC 8-21-9-35
Conflicts of interest; void contracts; offense
Sec. 35. A member, agent, or employee of the department whoknowingly is interested in any contract with the department or in thesale of any property, either real or personal, to the departmentcommits a Class A misdemeanor. All such contracts are void. Thissection does not apply to contracts for purchases of property, real orpersonal, between the department and other departments,municipalities, or subdivisions of state government.
(Formerly: Acts 1971, P.L.105, SEC.2.) As amended by Acts 1978,P.L.2, SEC.865; Acts 1980, P.L.74, SEC.364.
IC 8-21-9-36
Repealed
(Repealed by Acts 1980, P.L.74, SEC.434.)
IC 8-21-9-37
Powers and duties of department; application to chapter
Sec. 37. The powers, duties, and functions of the departmentunder IC 8-21-1 shall not apply to the operation of any airportcreated under the authority of this chapter. However, statewideregulatory powers of the department shall appertain thereto inaviation communications, air safety, or enforcement of IC 8-21-10,the high structure safety law.
(Formerly: Acts 1971, P.L.105, SEC.2; Acts 1973, P.L.73, SEC.2.)As amended by Acts 1980, P.L.74, SEC.365; P.L.3-1990, SEC.34.