CHAPTER 2. LOCAL BOARDS OF AVIATION COMMISSIONERS
IC 8-22-2
Chapter 2. Local Boards of Aviation Commissioners
IC 8-22-2-1
Department of aviation
Sec. 1. (a) Whenever the fiscal body of an eligible entity adoptsan ordinance or a resolution in favor of the acquisition, improvement,operation, or maintenance of an airport or landing field for the entityunder this chapter, and declaring a necessity for the airport or landingfield, then on the effective date of the ordinance or resolution, thereis established as an executive department of the entity a departmentof aviation, under the control of a board to be known as the board ofaviation commissioners.
(b) The following apply to a board of aviation commissionersestablished under this chapter:
(1) Except as provided in subsections (e), (f), and (g), the boardconsists of four (4) members.
(2) Except as provided in subsection (e), the executive of theentity shall appoint the members of the board.
(3) Except as provided in subsections (f) and (g), not more thantwo (2) of the members of the board may be of the samepolitical party.
(c) The fiscal body of the entity may provide a per diem for themembers of the board in any amount not exceeding thirty-five dollars($35) for each whole or part day a member is engaged in boardactivities. The members of the board shall also be paid their actualexpenses, which may include the expenses of the members oremployees of the board in attending meetings or conventions held todiscuss aviation matters.
(d) Before beginning the duties of office, each board membershall take and subscribe the usual oath of office, to be endorsed uponthe certificate of appointment, and shall cause that to be filed withthe clerk or other officer performing duties similar to that of clerk inthe entity. Any person who does not file the oath with the clerk orother officer performing duties similar to that of the clerk withinthirty (30) days after the beginning of the term for which the personhas been appointed, or at the date of the person's appointment, ifappointed after the beginning of the term, is considered to haverefused to serve and the office becomes vacant.
(e) Notwithstanding subsection (b), if a county having apopulation of more than two hundred thousand (200,000) but lessthan three hundred thousand (300,000) has established a board, thecounty council and the mayors of the two (2) cities in the countyhaving the largest populations may each appoint one (1) additionalmember to the board, thereby creating a board consisting of a totalof seven (7) members. The three (3) additional members serve in thesame manner, are accorded the same status, and perform the sameduties as the four (4) initial board members, and serve terms of four(4) years. If either the county council or either of the two (2) mayorsfails to make appointments to the board, that fact does not prejudice
appointments that may be made by the other appointing authority orauthorities.
(f) This subsection applies to the following:
(1) A county having a population of more than ninety thousand(90,000) but less than one hundred thousand (100,000).
(2) A county having a population of more than thirty-sixthousand (36,000) but less than thirty-six thousand seventy-five(36,075).
Notwithstanding subsection (b), if a county has established a boardunder this chapter, the county executive may add one (1) additionalmember to the board so that the board has a total of five (5)members. Not more than three (3) of the five (5) members of theboard may be of the same political party. The one (1) additionalmember shall serve in the same manner, be accorded the same status,and perform the same duties as the four (4) initial members, andserve a four (4) year term.
(g) This subsection does not apply to a board subject to subsection(e) or (f). Notwithstanding subsection (b), the fiscal body of aneligible entity may adopt an ordinance or a resolution providing thatthe board consists of five (5) members. If the board consists of five(5) members, not more than three (3) members may be of the samepolitical party.
As added by Acts 1980, P.L.8, SEC.73. Amended by Acts 1981,P.L.113, SEC.1; P.L.12-1992, SEC.66; P.L.58-1994, SEC.1;P.L.115-1995, SEC.2; P.L.116-1995, SEC.2; P.L.170-2002, SEC.68;P.L.134-2005, SEC.1.
IC 8-22-2-2
Members of board of aviation commissioners; qualifications;restrictions
Sec. 2. (a) This subsection applies only in counties that contain aconsolidated city or at least one (1) second class city. To be eligibleto be a member of the board of aviation commissioners, a personmust:
(1) be at least eighteen (18) years of age;
(2) be a resident of the county in which the eligible entity islocated;
(3) not be actively engaged or employed in commercialaeronautics;
(4) not hold any other governmental office (by appointment orelection) that has statutory fiscal or management review of theboard's actions; and
(5) not serve as a member of any other agency, board,commission, department, or other governmental entity that:
(A) is located within the jurisdiction of the department ofaviation; and
(B) has statutory fiscal or management review of the board'sactions.
(b) This subsection does not apply to a county if the countycontains a consolidated city or a second class city. To be eligible to
be a member of the board of aviation commissioners, a person must:
(1) be at least eighteen (18) years of age;
(2) be a resident of the county in which the eligible entity islocated; and
(3) not be actively engaged or employed in commercialaeronautics in a county that the board serves.
As added by Acts 1980, P.L.8, SEC.73. Amended by P.L.129-1987,SEC.1; P.L.5-1988, SEC.53; P.L.134-2005, SEC.2.
IC 8-22-2-3
Terms of office of board members
Sec. 3. (a) The first members of the board hold office as follows:
(1) One (1) for the term of one (1) year.
(2) One (1) for the term of two (2) years.
(3) One (1) for the term of three (3) years.
(4) In the case of:
(A) a board initially established with four (4) members, one(1) for the term of four (4) years; or
(B) a board initially established with five (5) members, two(2) for the term of four (4) years.
The members serve under this subsection from twelve o'clock noonon the first Monday in January of the year of their appointment.
(b) On the expiration of the respective terms, the executive shallappoint a commissioner or commissioners to fill the vacanciescaused by the expiration, and the commissioner or commissioners soappointed hold office for a term of four (4) years, and until theirsuccessors are appointed and qualified, and if a vacancy occurs in theboard by resignation or otherwise, the executive shall appoint acommissioner for the remainder of the term. The executive of theeligible entity may, at any time, remove a commissioner from office,but only upon filing in writing with the clerk or other officerperforming duties similar to that of clerk in entities having no clerk,the reasons for the removal.
As added by Acts 1980, P.L.8, SEC.73. Amended by P.L.134-2005,SEC.3.
IC 8-22-2-4
Officers of board; office facilities; reports; expenditures; meetings
Sec. 4. The board shall choose, annually, at its first regularmeeting in January, one (1) of its members president, and another ofits members vice president to perform the duties of the presidentduring the absence or disability of the president. The eligible entityshall provide a suitable office for the board in the entity, or, at theoption of the board, at the airport, at the expense of the departmentof aviation, where its maps, plans, documents, records, and accountsshall be kept, subject to public inspection at all reasonable times.Before February 2 each year the board shall make a report to theexecutive of its proceedings with a full statement of its receipts anddisbursements for the preceding year, including a report of theacquisition of air navigation facilities and of other property that has
come under the control of the board, improvements made, generalcharacter of the work of the board, and progress of aviation and aircommerce under its control. Money received by the board shall bepaid into the entity's treasury and credited to the department ofaviation, and all expenditures relating to the property and businessunder the control of the department, except as otherwise provided,may be provided for by special levy of taxes under section 7 of thischapter, and shall be paid from the entity's treasury when ordered bythe board. A majority of the members constitutes a quorum, and anaction of the board must be taken by a majority of the members at aregular or duly called special meeting. In case of a tie vote on anyquestion, the executive shall decide. The board shall fix a time forholding regular meetings. Regular or special meetings shall be heldat the office of the board or at another public place in any countywhere the board owns or operates an airport. Special meetings of theboard may be called at any time by its president, or by any two (2) ofits members, upon a written request to the secretary. Whenever in theopinion of the president or of any two (2) members, a specialmeeting is necessary, he or they shall cause the secretary to notify themembers by mailing written notice of the time of the meeting, at leastone (1) day before the meeting. A member may waive notice inwriting and the presence of a member at a special meeting isconsidered a waiver of notice.
As added by Acts 1980, P.L.8, SEC.73. Amended by P.L.137-2000,SEC.1.
IC 8-22-2-5
Powers of board
Sec. 5. (a) The board may adopt and use a seal. Applications,assurances, contracts, and other instruments necessary in the board'sperformance of its duties and the exercise of its powers may beexecuted in its name or in the name of the eligible entity, as the casemay be, by the president or vice president of the board and attestedby its secretary or assistant secretary. However, the board may byresolution prescribe another method of execution.
(b) The board, on behalf of the eligible entity, exclusively has thefollowing powers:
(1) To acquire, establish, construct, improve, equip, maintain,control, lease, and regulate municipal airports and landing fieldsand other air navigation facilities, for the use of airplanes andother aircraft, either inside or outside the corporate limits of theentity, subject to statutory limitations; to acquire by lease (withor without the option to purchase) airports, landing fields, airnavigation facilities, and any other structures, equipment, andrelated improvements; and to erect, install, construct andmaintain at those airports facilities for the servicing of aircraftand for the comfort and accommodation of air travelers and thepublic; and the fiscal body of the entity may by ordinanceprovide that any land suitable for these purposes that is ownedby the entity shall be put under the control of the board of
aviation commissioners for aviation and public purposes.However, if at the time of the creation, appointment, andqualification of the board in an entity, the entity owns orcontrols an airport, landing field, or other air navigationfacilities, then the exclusive control, management, and authorityover the airport, landing field, or other air navigation facilitiesshall at once be transferred to the board without the adoption ofan ordinance; and the department, board, officer, or officers ofthe entity, or other persons having possession or control, shallat once turn over and deliver to the board all personal property,records, books, plans, maps, and other papers and documentsrelating to the aviation business of the entity. The unexpendedbalance of any fund or funds appropriated by the entity foraviation purposes becomes a part of the aviation fund of thedepartment of aviation. Before land may be purchased by anentity for the establishment of an airport or landing field or anairport or landing field may be established by an entity theaction or acquisition of land must be granted by the aeronauticscommission of Indiana.
(2) To elect a secretary from its membership or to employ asecretary, and to employ superintendents, managers, engineers,surveyors, attorneys, clerks, guards, mechanics, laborers, and allemployees the board considers expedient, and to prescribe andassign their respective duties and authorities and to fix andregulate their compensation, in accordance with theappropriations made by the fiscal body of the entity. Allemployees shall be selected irrespective of their politicalaffiliations.
(3) To make rules and regulations, consistent with law, for themanagement and control of its airports, landing fields, airnavigation facilities, and other property under its control. Theboard may require a special detail of police or hire guards toexecute the orders and enforce the rules and regulations.
(4) To acquire by lease the use of an airport or landing field foraircraft pending the acquisition and improvement of an airportor landing field. However, a lease must be approved byordinance or resolution of the fiscal body of the entity before ittakes effect.
(5) To manage and operate all airports, landing fields, and otherair navigation facilities acquired or maintained by the entity;and to lease all or part of an airport, landing field, or anybuildings or other structures to fix, charge, and collect rentals,tolls, fees, and charges to be paid for the use of the whole or apart of the airports, landing fields, or other air navigationfacilities by aircraft landing there and for the servicing of theaircraft; to construct public recreational facilities that will notinterfere with air operational facilities; to fix, charge, andcollect fees for public admissions and privileges; to makecontracts for the operation and management of the airports,landing fields, and other air navigation facilities; and to provide
for the use, management, and operation of the air navigationfacilities through lessees, through its own employees, orotherwise. Contracts or leases for the maintenance, operation,or use of the airport or any part of it may be made for a term notexceeding fifteen (15) years, and may be extended for similarterms of years, except that any parcels of the land of the airportmay be leased for any use connected with the operation andconvenience of the airport for an initial term not exceedingforty (40) years, and may be extended for a period not to exceedten (10) years. If a person whose character, experience, andfinancial responsibility has been determined satisfactory by theboard offers to erect a permanent structure that facilitates andis consistent with the operation, use, and purpose of the airport,on land belonging to the airport. A lease may be entered into fora period not to exceed ninety-nine (99) years. However, thefiscal body must pass an ordinance authorizing the board toenter into such a lease. The board may not grant an exclusiveright for the use of a landing area under its jurisdiction.However, this does not prevent the making of leases inaccordance with other provisions of this chapter. All contractsand leases are subject to restrictions and conditions that theboard prescribes.
(6) To sell machinery, equipment, or material under the controlof the board belonging to the eligible entity that is not requiredfor aviation purposes. The proceeds shall be deposited with theentity's treasurer or controller to the credit of the department ofaviation.
(7) To negotiate and execute contracts of sale or purchase,lease, personal services, materials, supplies, equipment, or anyother transaction or business relative to an airport under theboard's control. However, whenever the board determines to sellpart or all of aviation lands or improvements owned by theeligible entity, the sale must be in accordance with section 8 ofthis chapter.
(8) To vacate all or parts of roads, highways, streets, or alleysin land under control of the board in the manner provided bystatute.
(9) To approve, together with the fiscal body of the entity, anystate, county, city, or other highway, road, street, or other publicway, railroad, power line, or other right of way that may be laidout or opened across an airport or in such proximity as to affectthe safe operation of the airport.
(10) To construct drainage and sanitary sewers withconnections and outlets as are necessary for the proper drainageand maintenance of an airport or landing field acquired ormaintained under this chapter, including the necessary buildingsand improvements and for the public use of them, in the samemanner that the eligible entity may construct sewers and drains.However, with respect to the construction of drains and sanitarysewers beyond the boundaries of the airport or landing field, the
board shall proceed in the same manner as private owners ofproperty and may institute proceedings and negotiate with thedepartments, bodies, and officers of the entity to secure theproper orders and approvals.
(11) To order a public utility or public service corporation orother person to remove or to install in underground conduits,wires, cables, and power lines passing through or over theairport or landing field or along the borders or within areasonable distance that may be determined to be necessary forthe safety of operations of the airport or landing field, uponpayment to the utility or other person due compensation for theexpense of the removal or reinstallation. The board mustconsent to any franchise granted by state or local authorities forthe construction or maintenance of any railway, telephone,telegraph, electric power, pipe, or conduit line upon, over, orthrough land under the control of the board or within areasonable distance of land that is necessary for the safety ofoperation. The board must also consent to the installation ofoverhead electric power lines carrying a voltage of overforty-four hundred (4,400) volts and having poles, standards, orsupports over thirty (30) feet in height within one-half (1/2)mile of a landing area acquired or maintained under thischapter.
(12) To contract with any other state agency or instrumentalityor any political subdivision for the rendition of services, therental or use of equipment or facilities, or the joint purchase anduse of equipment or facilities that are necessary for theoperation, maintenance, or construction of an airport operatedunder this chapter.
As added by Acts 1980, P.L.8, SEC.73. Amended by Acts 1981,P.L.57, SEC.28; P.L.130-1987, SEC.1; P.L.29-1999, SEC.1.
IC 8-22-2-6
Contract procedures; emergencies
Sec. 6. For all contracts for improvements and purchases, otherthan those for professional services and those for the acquisition ofland, structures, easements, and rights-of-way, IC 5-22 andIC 36-1-9.5 apply. In case of an emergency being declared by theboard, the board may purchase necessary materials under IC 5-22-10without advertising for bids.
As added by Acts 1980, P.L.8, SEC.73. Amended by P.L.130-1987,SEC.2; P.L.85-1991, SEC.1; P.L.49-1997, SEC.35.
IC 8-22-2-7
Breach of agreements; rules and regulations; taxation; reports ofestimated appropriations; reserve or depreciation account
Sec. 7. (a) The board may, in the name of the eligible entity, takeaction to recover damages for the breach of an agreement, express orimplied, relating to the operation, control, leasing, management, orimprovement of the property under its control, to impose the
penalties for the violation of ordinances of the entity or of its rulesor regulations, and for injury to the personal or real property underits control, and to recover possession of any such property. All rulesand regulations that the board adopts under this chapter shall bepublished in accordance with IC 5-3-1.
(b) In addition to other taxes of the eligible entity, a tax may belevied annually by the fiscal body for aviation purposes, and theentity's treasurer shall collect the taxes as other taxes are collected.When the taxes are collected they shall be deposited in the treasuryof the entity in a separate fund known as the "aviation fund". Onlyone (1) tax levy for aviation purposes may be imposed upon theassessed property in a county, city, or town unless that unit approvesby ordinance the levy of more than one (1) tax for aviation purposes.The fiscal body of the entity may appropriate and transfer to theaviation fund any sum or sums out of the general funds of the entity,in accordance with statutes providing for additional appropriationsfor the entities, and the fiscal body may borrow money and issuebonds of the entity for aviation purposes and shall turn the proceedsfrom the bonds into the aviation fund of the entity.
(c) The board of aviation commissioners shall prepare and filewith the executive of the eligible entity annually, at the time theexecutive designates, a full and detailed estimate of theappropriations required during the ensuing year for the maintenanceand operation of the airports and landing fields showing the numberof employees, including manager and secretary, and the amount ofsalary and wages recommended for each. Expenditures for themaintenance and operation of the airports or landing fields arelimited to the appropriations of money made in advance by the fiscalbody upon furnished estimates. Purchases and expenditures shall bemade and allowable claims shall be paid by the board in the samemanner as provided for the allowance of other claims against theentity. The fiscal body of the entity may appropriate a sufficientamount for the help, supplies, and equipment necessary for theequipment and maintenance of the airports or landing fields. Thefiscal body of the entity may appropriate a sufficient amount as arotary fund to be used by the board for the purchase of fuels andlubricants to be sold to the general public in the operation of theairport. All funds received from the sale of fuels and lubricantspurchased with funds from a rotary fund shall be turned over at leastonce a month to the treasurer of the entity to remain in the rotaryfund to be checked against by the board as other appropriations aredisbursed, for the sole purpose of purchasing fuels and lubricants forsale to the public in the operation of the airport. At the end of eachfiscal year, the board shall make a detailed statement to the fiscalbody showing the amount of money received and paid over to thetreasurer to the credit of the rotary fund and also showing the amountof fuels and lubricants on hand. If at the end of a fiscal year theaccumulated rotary fund plus value of inventory of fuels andlubricants on hand exceeds the total previous appropriation to thefund by twenty-five percent (25%), the excess shall be turned over
to the aviation fund. The board may incur obligations or liability ofany sort on behalf of the entity only if it falls within theappropriation specifically made for that purpose. All moneyremaining in the treasury to the credit of the board at the end of thecalendar year belongs to the general aviation fund to be used by theboard for aviation purposes. All funds received by the board fromwhatever source, except funds received from the sale of fuels andlubricants purchased by funds from the rotary fund, shall bedeposited in the treasury of the entity to the credit of the aviationfund.
(d) The board may create a reserve or depreciation account for thepurpose of capital improvements or replacements out of operatingprofits from the operation of the airport.
As added by Acts 1980, P.L.8, SEC.73. Amended by P.L.81-1996,SEC.10.
IC 8-22-2-8
Sale of aviation land or improvements; ordinances
Sec. 8. (a) If the board wishes to sell part or the whole of theaviation land or improvements owned by the eligible entity, it mayprepare an ordinance authorizing the sale and submit it to the fiscalbody of the entity. If the fiscal body passes the ordinance, the land orimprovements shall be sold as other lands or improvements of theentity are sold, and the proceeds of the sale shall be deposited in theaviation fund of the entity.
(b) If the board negotiates an agreement to sell trees situated inwoods or forest areas owned by the board, the trees are consideredto be personal property of the board for severance or sale.
As added by Acts 1980, P.L.8, SEC.73. Amended by P.L.98-2001,SEC.1.
IC 8-22-2-9
Establishment of restricted zones; approaches to airport; zoningjurisdiction
Sec. 9. (a) In order to provide free air space for the safe descentand ascent of aircraft and for the proper and safe use of an airport orlanding field acquired or maintained under this chapter, the boardmay, subject to approval and adoption by the fiscal body of theeligible entity, establish and fix a restricted zone or zones for adistance in any direction from the boundaries of the airport orlanding field so that no building or other structure is erected highenough to interfere with the descent of an aircraft at the gliding anglenecessary for safety for the usual type of operation that is conductedat the airport or landing field. The board may, in the name of theentity, acquire by condemnation, upon the payment of duecompensation as provided in this chapter, the right to prevent theerection of, and to require the removal of, all buildings, towers,poles, wires, cables, other structures, and trees within the zone orzones which interfere with the gliding angle or as much of anystructure or trees that interferes with the gliding angle. When so
condemned a permit issued by a department or office of the entity orby any state or other authority for the erection of any structure insidethe zone or zones is effective only if approved by the board.
(b) Establishment of a restricted zone or zones outside of anairport or landing field in connection with the condemnation of rightsin the land constitutes condemnation and the perpetual annihilationof all rights of the owners of the property within the zone or zones toerect or maintain any building or structure that will interfere with thegliding angle. This result may also be accomplished by absolutecondemnation of the land, with perpetual and irrevocable free licenseto use and occupy the land within the zone for all purposes exceptthe erection of buildings or other structures above the heightprescribed.
(c) The jurisdiction of each eligible entity is extended to thepromulgation, administering, and enforcement of airport zoningregulations to protect the approaches of an airport that is owned bythe entity but located wholly or partially outside the corporate limitsof the entity. In case of conflict with any airport zoning or otherregulations promulgated by an entity, the regulations adopted underthis section prevail.
(d) The zoning jurisdiction granted in this section is exclusiveagainst jurisdiction granted by any other statute unless any otherstatute specifically provides otherwise.
(e) All airport zoning regulations adopted under this chapter mustbe reasonable and may not impose a requirement or restriction thatis not reasonably necessary to effectuate the purposes of this chapter.In determining what regulations to adopt, each eligible entity andjoint airport zoning board shall consider, among other things, thecharacter of the flying operations expected to be conducted at theairport, the nature of the terrain within the airport hazard area, thecharacter of the neighborhood, and the uses to which the property tobe zoned is put and adaptable.
As added by Acts 1980, P.L.8, SEC.73.
IC 8-22-2-10
Eminent domain
Sec. 10. (a) The board of an eligible entity:
(1) may exercise the power of eminent domain for the purposeof carrying out this chapter;
(2) may award damages to landowners for real property rightsappropriated; and
(3) if the board cannot agree with the owners, lessees, oroccupants of real property selected by the board for thepurposes in this chapter, may procure the condemnation of theproperty.
The board may proceed under IC 32-24-1. IC 32-24-1 applies toairports, landing fields, and restricted zones adjoining them to theextent that it is not inconsistent with this chapter.
(b) If the land on or across which it is necessary to establish andfix a restricted zone is already in use for another public purpose or
has been condemned or appropriated for a use authorized by statute,and is being used for that purpose by the corporation soappropriating it, the public use or prior condemnation does not barthe right of the board to condemn the use of the ground for aviationpurposes. Use by the board does not permanently prevent the use ofthe land for the prior public use or by the corporation condemning orappropriating it.
(c) In a proceeding prosecuted by the board to condemn the useof land for purposes permitted by this chapter, the burden is upon theboard to show that its use will not permanently or seriously interferewith the continued public use of the land or by the corporationcondemning it, or its successors. However, in the proceeding, theboard may require the removal or the burying beneath the surface ofthe ground of wires, cables, power lines, or other structures within arestricted zone established under this chapter. In a proceedingprosecuted by the board to condemn or appropriate land, the use ofland, or rights in land for purposes permitted by this chapter:
(1) the board and all owners and holders of property or rights inproperty sought to be taken are governed by and have the samerights to procedure, notices, hearings, assessments, andpayments of benefits and awards as are prescribed by statute forthe appropriation and condemnation of real property; and
(2) the property owners have like powers and rights ofremonstrance and of appeals to the circuit or superior court inthe county in which the entity is located.
Appeals affect only the amount of the assessment of awards of theperson appealing and must conform to all laws relating to appeals.The payment of all damages awarded for all lands, property, or rightsin them appropriated under this chapter shall be paid entirely out ofthe funds under the control of the board.
(d) Notwithstanding this or any other statute or any charter, theeligible entity may take possession of the property to be acquired atany time after the filing of the petition describing the property incondemnation proceedings. It is not precluded from abandoning thecondemnation of the property in any case where possession has notbeen taken. The board:
(1) may acquire and use any land reasonably necessary for thepurposes of this chapter; and
(2) may not acquire or use land that is still being used and isnecessary for the purposes for which it was previouslycondemned.
As added by Acts 1980, P.L.8, SEC.73. Amended by P.L.2-2002,SEC.46.
IC 8-22-2-11
Recording land or rights acquired
Sec. 11. Within sixty (60) days after land or rights in land areacquired or taken under this chapter, the board shall file and cause tobe recorded in the recorder's office of the county in which the landis situated a description of the land sufficiently accurate for its
identification and a statement of the purpose for which it is requiredor taken, signed by a majority of the board.
As added by Acts 1980, P.L.8, SEC.73.
IC 8-22-2-12
Airport and landing field operations considered public necessityand benefit; tax exemption of leasehold interests
Sec. 12. (a) The acquisition, establishment, construction,improvement, equipment, maintenance, control, and operation ofmunicipal airports and landing fields for aircraft under this chapteris considered to be a governmental function of general publicnecessity and benefit and is for the use and general welfare of all thepeople of Indiana, including the people residing in the eligible entity.
(b) Notwithstanding any other statute, the leasehold estate of anylessee created pursuant to a lease by the board of its aviation relatedproperty or facilities, together with any permanent structure erectedon the property by the lessee is exempt from property taxation.
As added by Acts 1980, P.L.8, SEC.73. Amended by P.L.60-1988,SEC.20.
IC 8-22-2-13
Sale of minerals or mineral rights
Sec. 13. The board of an eligible entity may, upon resolution ofthe board, sell the minerals or mineral rights or royalties, or grantleases for the removal of a mineral in or under an airport or landingfield owned by the entity. They shall be sold or leased in the samemanner as land is sold or leased under this chapter, and the proceedsderived from these sources shall be deposited with the treasurer ofthe entity in the aviation fund of the entity and expended as providedby statute for the proceeds of the sale of aviation lands. However, nosale or lease for more than one (1) year may be made, except to thehighest and best bidder, after notice of sale or lease has been givenwithin the boundaries of the entity in accordance with IC 5-3-1, thelast publication having been made at least one (1) week before thedate of the sale or lease.
As added by Acts 1980, P.L.8, SEC.73. Amended by Acts 1980,P.L.78, SEC.1.
IC 8-22-2-14
Joint activities; joint board of aviation commissioners
Sec. 14. Eligible entities may jointly acquire, construct, develop,improve, equip, or extend airports or property to be used for aviationpurposes and maintain, operate, manage, and control it and levy andcollect taxes for this purpose. Two (2) or more entities maycooperate for this purpose by contributing to the total cost andsharing the benefits and bearing the obligations accruing from it onterms that they agree upon and evidence by contract. The jointactivity is subject to the same provisions and requirements providedfor such activity if carried on by any one (1) of the entitiesindividually, except that the joint board of aviation commissioners
may be composed of more than four (4) but not more than seven (7)members and the maximum allowance may be increasedcorrespondingly. In case of failure of agreement between two (2) ormore entities upon petition filed by one (1) or more of the entitiesinvolved, the aeronautics commission of Indiana, after investigationand hearing, shall determine and prescribe reasonable and equitableparticipation including representation on the joint governing boardand shall prescribe other rules and regulations as necessary.
As added by Acts 1980, P.L.8, SEC.73.
IC 8-22-2-15
Assistance to other entities
Sec. 15. Whenever the fiscal body of an eligible entity determinesthat the public interest and the interest of the entity will be served byassisting another entity to exercise the powers granted by thischapter, the former entity may furnish assistance by gift, or leasewith or without rental, of real property, by the donation, lease withor without rental, or loan, of personal property, and by theappropriation of monies that may be provided for by taxation or theissuance of bonds in the same manner as funds might be provided forthe same purposes if the entity were exercising the powers grantedin its own behalf.
As added by Acts 1980, P.L.8, SEC.73.
IC 8-22-2-16
Transfer of funds to general fund of entity
Sec. 16. Whenever the board of an eligible entity accumulatesfunds that are derived from sources other than from the operation ofthe airport and that are not needed for the operation or maintenanceof the airport, the board, upon a majority vote of its members, maywithout notice transfer all or part of the funds to the general fund ofthe entity if the funds were not derived from taxation. This sectiondoes not apply to funds derived from lands leased from the federalgovernment.
As added by Acts 1980, P.L.8, SEC.73.
IC 8-22-2-17
Federal, public, or private grants
Sec. 17. (a) An eligible entity acting by and through its boardunder IC 8-21-8 may accept, receive, and receipt for federal moniesand other monies, either public or private, for the acquisition,construction, enlargement, improvement, maintenance, equipment,or operation of airports and other air navigation facilities, and sitesfor them, and comply with federal law and rules and regulationsmade under them for the expenditure of federal monies on airportsand other air navigation facilities.
(b) Subject to IC 8-21-8, the board has exclusive power on behalfof the entity to submit to the proper state and federal agenciesapplications for grants of funds for airport development and to makeor execute representations, assurances, and contracts and to enter into
agreements with state or federal agencies relative to the developmentof a municipal airport.
As added by Acts 1980, P.L.8, SEC.73.
IC 8-22-2-18
Buildings and facilities; construction or improvements; income andrevenues; bonds; surplus
Sec. 18. (a) Subject to the approval of the fiscal body of theeligible entity, the board may contract with any person forconstruction, extensions, additions, or improvements of an aircrafthangar or revenue producing building or facility located or to belocated on the airport of the entity, the cost of which is to be paid inthe manner authorized by this section.
(b) A contract made under this section must be authorized byordinance providing that the principal and interest of bonds issuedfor the payment of the cost of the construction, extensions, additions,or improvements shall be paid exclusively from the revenues andreceipts of the aircraft hangars or revenue producing buildings orfacilities, unless otherwise provided by this section.
(c) The fiscal body must, by ordinance, set aside the income andrevenues of the buildings or facilities into a separate fund, to be usedin the maintenance and operation and in payment of the cost of theconstruction, extensions, additions, or improvements. The ordinancemust fix:
(1) the proportion of the revenues of the buildings or facilitiesthat is necessary for the reasonable and proper operation andmaintenance of them; and
(2) the proportion of the revenues that are to be set aside andapplied to the payment of the principal and interest of bonds.
The ordinance may provide for the proportion of the revenues thatare to be set aside as an adequate depreciation account.
(d) Whenever the board determines that there exists a surplus infunds derived from the net operating receipts of a municipal airport,then the board may recommend to the fiscal body that a designatedamount of the surplus fund be appropriated by special or generalappropriation to the "aviation revenue bond account" for the relief ofprincipal or interest of bonds issued under this section. However, thissurplus in funds may not include monies raised by taxation.
(e) The fiscal body may issue and sell bonds to provide for thepayment of costs of the following:
(1) Airport capital improvements, including the acquisition ofreal property.
(2) Construction or improvement of revenue producingbuildings or facilities owned and operated by the eligible entity.
(3) Payment of any loan contract.
The fiscal body may issue and sell bonds bearing interest, payableannually or semiannually, executed in the manner and payable at thetimes not exceeding forty (40) years from the date of issue and at theplaces as the fiscal body of the entity determines, which bonds arepayable only out of the "aviation revenue bond account" fund. The
bonds have in the hands of bona fide holders all the qualities ofnegotiable instruments under law.
(f) In case any of the officers whose signatures orcountersignatures appear on the bonds or the coupons ceases to bethe officer before the delivery of the bonds to the purchaser, thesignature or countersignatures are nevertheless valid and sufficientfor all purposes, the same as if he had remained in office until thedelivery of the bonds. The bonds and their interest issued against an"aviation revenue bond account" fund and the fixed proportion oramount of the revenues pledged to the fund does not constitute anindebtedness of the entity under the Constitution of the State ofIndiana.
(g) Each bond must state plainly upon its face that it is payableonly from the special fund, naming the fund and the ordinancecreating it, and that it does not constitute an indebtedness of theentity under the Constitution of the State of Indiana. The bonds maybe issued either as registered bonds or as bonds payable to bearer.Coupons and bearer bonds may be registered as to principal in theholder's name on the books of the entity, the registration being notedon the bond by the clerk or other designated officer, after which notransfer is valid unless made on the books of the entity by theregistered holder and similarly noted on the bonds. Bonds soregistered as to principal may be discharged from the registration bybeing transferred to bearer, after which it is transferable by deliverybut may be registered again as to principal. The registration of thebonds as to the principal does not restrain the negotiability of thecoupon by delivery, but the coupons may be surrendered and theinterest made payable only to the registered holder of the bonds. Ifthe coupons are surrendered, the surrender and cancellation of themshall be noted on the bond and then interest on the bond is payableto the registered holder or order in cash or at his option by check ordraft payable at the place or one (1) of the places where the couponsare payable.
(h) The bonds shall be sold in a manner and upon terms that thefiscal body considers in the best interest of the entity.
(i) All bonds issued by an eligible entity under this section areexempt from taxation for all purposes, except that the interest issubject to the adjusted gross income tax.
(j) In fixing the proportion of the revenues of the building orfacility required for operation and maintenance, the fiscal body shallconsider the cost of operation and maintenance of the building orfacility and may not set aside into the special fund a greater amountor proportion of the revenues and proceeds than are required for theoperation and maintenance. The sums set aside for operation andmaintenance shall be used exclusively for that purpose, until theaccumulation of a surplus results.
(k) The proportion set aside to the depreciation fund, if adepreciation account or fund is provided for under this section, shallbe expended in remedying depreciation in the building or facility orin new construction, extensions, additions, or improvements to the
property. Accumulations of the depreciation fund may be invested,and the income from the investment goes into the depreciation fund.The fund, and the proceeds of it, may not be used for any otherpurpose.
(l) The fixed proportion that is set aside for the payment of theprincipal and interest of the bonds shall, from month to month, as itis accrued and received, be set apart and paid into a special accountin the treasury of the eligible entity, to be identified "aviationrevenue bond account," the title of the account to be specified byordinance. In fixing the amount or proportion to be set aside for thepayment of the principal and interest of the bonds, the fiscal bodymay provide that the amount to be set aside and paid into the aviationrevenue bond account for any year or years may not exceed a fixedsum, which sum must be at least sufficient to provide for thepayment of the interest and principal of the bonds maturing andbecoming payable in each year, together with a surplus or margin often percent (10%).
(m) If a surplus is accumulated in the operating and maintenancefund that is equal to the cost of maintaining and operating thebuilding or facility for the twelve (12) following calendar months,the excess over the surplus may be transferred by the fiscal body toeither the depreciation account to be used for improvements,extensions, or additions to property or to the aviation revenue bondaccount fund, as the fiscal body designates.
(n) If a surplus is created in the aviation revenue bond account inexcess of the interest and principal of bonds, plus ten percent (10%),becoming payable during the calendar, operating, or fiscal year thencurrent, together with the amount of interest or principal of bondsbecoming due and payable during the next calendar, operating, orfiscal year, the fiscal body may transfer the excess over the surplusto either the operating and maintenance account, or to thedepreciation account, as the fiscal body designates.
(o) All money received from bonds issued under this section shallbe applied solely for the purposes listed in subsection (e). There iscreated a statutory mortgage lien upon buildings or facilities forwhich bonds are issued in favor of the holders of the bonds and ofthe coupons of the bonds. The buildings or facilities so constructed,extended, or improved remain subject to the statutory mortgage lienuntil payment in full of the principal and interest of the bonds.
(p) A holder of the bonds or of the attached coupons may enforcethe statutory mortgage lien conferred by this section, and mayenforce performance of all duties required by this section of theeligible entity issuing the bond or of any officer of the entity,including:
(1) the making and collecting of reasonable and sufficient ratesor rentals for the use or lease of the buildings or facilities, orpart of them established for the rent, lease, or use of thebuildings or facilities;
(2) the segregation of the revenues from the buildings orfacilities; and (3) the application of the respective funds created by thissection.
(q) If there is a default in the payment of the principal or interestof any of the bonds, a court having jurisdiction of the action mayappoint an administrator or receiver to administer, manage, oroperate the buildings or facilities on behalf of the entity, and thebondholders, with power to:
(1) charge and collect rates or rentals for the use or lease of thebuildings or facilities sufficient to provide for the payment ofthe operating expenses;
(2) pay any bonds or obligations outstanding against thebuildings or facilities; and
(3) apply the income and revenues thereof in accord with thissection and the ordinance.
As added by Acts 1980, P.L.8, SEC.73. Amended by P.L.77-1990,SEC.1; P.L.192-2002(ss), SEC.146.
IC 8-22-2-18.5
Payment of costs of airport capital improvements; loans;requirements
Sec. 18.5. (a) The board may negotiate terms and borrow moneyfrom any source for the payment of the costs of airport capitalimprovements, including the acquisition of real property orconstruction or improvement of revenue producing buildings orfacilities located on an airport and owned and operated by theeligible entity, subject to the following requirements:
(1) The loan contract must be approved by resolution of theboard and the fiscal body of the eligible entity that establishedthe board.
(2) The loan contract must provide for the repayment of theloan in not more than forty (40) years.
(3) The loan contract must state that the indebtedness is that ofthe board, is payable solely from revenues of the board that arederived from either airport operations or from revenue bonds,and may not be paid by a tax levied on property located withinthe district.
(4) The loan contract must be submitted to the department oflocal government finance, which may approve, disapprove, orreduce the amount of the proposed loan contract. Thedepartment of local government finance must make a decisionon the loan contract within thirty (30) days after the contract issubmitted for review. The action taken by the department oflocal government finance on the proposed loan contract is final.
(b) A loan contract issued under this chapter is issued for essentialpublic and governmental purposes. A loan contract, the interest onthe contract, the proceeds received by a holder from the sale of a loancontract to the extent of the holder's cost of acquisition, proceedsreceived upon redemption before maturity, proceeds received atmaturity, and the receipt of the interest and proceeds are exemptfrom taxation as provided in IC 6-8-5.As added by P.L.77-1990, SEC.2. Amended by P.L.90-2002,SEC.327.
IC 8-22-2-19
Validation of acts
Sec. 19. All acts of an eligible entity in establishing an airport orlanding field, and all other acts in connection with them, taken by theentity under a prior statute, including all bonds issued, authorized, orsold under that statute or any other statute, the proceeds of whichhave been either used or designed for purposes stated in this chapter,and all acts of officials relating to any of the matters stated, areratified as if authorized by statute.
As added by Acts 1980, P.L.8, SEC.73.
IC 8-22-2-20
Violations; exception; offense
Sec. 20. A person who recklessly violates this chapter, except forsection 18, commits a Class B misdemeanor.
As added by Acts 1980, P.L.8, SEC.73.