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 adopts
an ordinance or a resolution in favor of the acquisition, improvement,
operation, or maintenance of an airport or landing field for the entity
under this chapter, and declaring a necessity for the airport or landing
field, then on the effective date of the ordinance or resolution, there
is established as an executive department of the entity a department
of aviation, under the control of a board to be known as the board of
aviation commissioners.
(b) The following apply to a board of aviation commissioners
established under this chapter:
(1) Except as provided in subsections (e), (f), and (g), the board
consists of four (4) members.
(2) Except as provided in subsection (e), the executive of the
entity shall appoint the members of the board.
(3) Except as provided in subsections (f) and (g), not more than
two (2) of the members of the board may be of the same
political party.
(c) The fiscal body of the entity may provide a per diem for the
members of the board in any amount not exceeding thirty-five dollars
($35) for each whole or part day a member is engaged in board
activities. The members of the board shall also be paid their actual
expenses, which may include the expenses of the members or
employees of the board in attending meetings or conventions held to
discuss aviation matters.
(d) Before beginning the duties of office, each board member
shall take and subscribe the usual oath of office, to be endorsed upon
the certificate of appointment, and shall cause that to be filed with
the clerk or other officer performing duties similar to that of clerk in
the entity. Any person who does not file the oath with the clerk or
other officer performing duties similar to that of the clerk within
thirty (30) days after the beginning of the term for which the person
has been appointed, or at the date of the person's appointment, if
appointed after the beginning of the term, is considered to have
refused to serve and the office becomes vacant.
(e) Notwithstanding subsection (b), if a county having a
population of more than two hundred thousand (200,000) but less
than three hundred thousand (300,000) has established a board, the
county council and the mayors of the two (2) cities in the county
having the largest populations may each appoint one (1) additional
member to the board, thereby creating a board consisting of a total
of seven (7) members. The three (3) additional members serve in the
same manner, are accorded the same status, and perform the same
duties 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) mayors
fails to make appointments to the board, that fact does not prejudice
appointments that may be made by the other appointing authority or
authorities.
(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-six
thousand (36,000) but less than thirty-six thousand seventy-five
(36,075).
Notwithstanding subsection (b), if a county has established a board
under this chapter, the county executive may add one (1) additional
member 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 the
board may be of the same political party. The one (1) additional
member shall serve in the same manner, be accorded the same status,
and perform the same duties as the four (4) initial members, and
serve 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 an
eligible entity may adopt an ordinance or a resolution providing that
the board consists of five (5) members. If the board consists of five
(5) members, not more than three (3) members may be of the same
political 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 a
consolidated city or at least one (1) 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 is
located;
(3) not be actively engaged or employed in commercial
aeronautics;
(4) not hold any other governmental office (by appointment or
election) that has statutory fiscal or management review of the
board'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 of
aviation; and
(B) has statutory fiscal or management review of the board's
actions.
(b) This subsection does not apply to a county if the county
contains 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 is
located; and
(3) not be actively engaged or employed in commercial
aeronautics 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 noon
on the first Monday in January of the year of their appointment.
(b) On the expiration of the respective terms, the executive shall
appoint a commissioner or commissioners to fill the vacancies
caused by the expiration, and the commissioner or commissioners so
appointed hold office for a term of four (4) years, and until their
successors are appointed and qualified, and if a vacancy occurs in the
board by resignation or otherwise, the executive shall appoint a
commissioner for the remainder of the term. The executive of the
eligible entity may, at any time, remove a commissioner from office,
but only upon filing in writing with the clerk or other officer
performing 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 regular
meeting in January, one (1) of its members president, and another of
its members vice president to perform the duties of the president
during the absence or disability of the president. The eligible entity
shall provide a suitable office for the board in the entity, or, at the
option of the board, at the airport, at the expense of the department
of aviation, where its maps, plans, documents, records, and accounts
shall be kept, subject to public inspection at all reasonable times.
Before February 2 each year the board shall make a report to the
executive of its proceedings with a full statement of its receipts and
disbursements for the preceding year, including a report of the
acquisition of air navigation facilities and of other property that has
come under the control of the board, improvements made, general
character of the work of the board, and progress of aviation and air
commerce under its control. Money received by the board shall be
paid into the entity's treasury and credited to the department of
aviation, and all expenditures relating to the property and business
under the control of the department, except as otherwise provided,
may be provided for by special levy of taxes under section 7 of this
chapter, and shall be paid from the entity's treasury when ordered by
the board. A majority of the members constitutes a quorum, and an
action of the board must be taken by a majority of the members at a
regular or duly called special meeting. In case of a tie vote on any
question, the executive shall decide. The board shall fix a time for
holding regular meetings. Regular or special meetings shall be held
at the office of the board or at another public place in any county
where the board owns or operates an airport. Special meetings of the
board may be called at any time by its president, or by any two (2) of
its members, upon a written request to the secretary. Whenever in the
opinion of the president or of any two (2) members, a special
meeting is necessary, he or they shall cause the secretary to notify the
members by mailing written notice of the time of the meeting, at least
one (1) day before the meeting. A member may waive notice in
writing and the presence of a member at a special meeting is
considered 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's
performance of its duties and the exercise of its powers may be
executed in its name or in the name of the eligible entity, as the case
may be, by the president or vice president of the board and attested
by its secretary or assistant secretary. However, the board may by
resolution prescribe another method of execution.
(b) The board, on behalf of the eligible entity, exclusively has the
following powers:
(1) To acquire, establish, construct, improve, equip, maintain,
control, lease, and regulate municipal airports and landing fields
and other air navigation facilities, for the use of airplanes and
other aircraft, either inside or outside the corporate limits of the
entity, subject to statutory limitations; to acquire by lease (with
or without the option to purchase) airports, landing fields, air
navigation facilities, and any other structures, equipment, and
related improvements; and to erect, install, construct and
maintain at those airports facilities for the servicing of aircraft
and for the comfort and accommodation of air travelers and the
public; and the fiscal body of the entity may by ordinance
provide that any land suitable for these purposes that is owned
by 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, and
qualification of the board in an entity, the entity owns or
controls an airport, landing field, or other air navigation
facilities, then the exclusive control, management, and authority
over the airport, landing field, or other air navigation facilities
shall at once be transferred to the board without the adoption of
an ordinance; and the department, board, officer, or officers of
the entity, or other persons having possession or control, shall
at once turn over and deliver to the board all personal property,
records, books, plans, maps, and other papers and documents
relating to the aviation business of the entity. The unexpended
balance of any fund or funds appropriated by the entity for
aviation purposes becomes a part of the aviation fund of the
department of aviation. Before land may be purchased by an
entity for the establishment of an airport or landing field or an
airport or landing field may be established by an entity the
action or acquisition of land must be granted by the aeronautics
commission of Indiana.
(2) To elect a secretary from its membership or to employ a
secretary, and to employ superintendents, managers, engineers,
surveyors, attorneys, clerks, guards, mechanics, laborers, and all
employees the board considers expedient, and to prescribe and
assign their respective duties and authorities and to fix and
regulate their compensation, in accordance with the
appropriations made by the fiscal body of the entity. All
employees shall be selected irrespective of their political
affiliations.
(3) To make rules and regulations, consistent with law, for the
management and control of its airports, landing fields, air
navigation facilities, and other property under its control. The
board may require a special detail of police or hire guards to
execute the orders and enforce the rules and regulations.
(4) To acquire by lease the use of an airport or landing field for
aircraft pending the acquisition and improvement of an airport
or landing field. However, a lease must be approved by
ordinance or resolution of the fiscal body of the entity before it
takes effect.
(5) To manage and operate all airports, landing fields, and other
air navigation facilities acquired or maintained by the entity;
and to lease all or part of an airport, landing field, or any
buildings or other structures to fix, charge, and collect rentals,
tolls, fees, and charges to be paid for the use of the whole or a
part of the airports, landing fields, or other air navigation
facilities by aircraft landing there and for the servicing of the
aircraft; to construct public recreational facilities that will not
interfere with air operational facilities; to fix, charge, and
collect fees for public admissions and privileges; to make
contracts 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 navigation
facilities through lessees, through its own employees, or
otherwise. Contracts or leases for the maintenance, operation,
or use of the airport or any part of it may be made for a term not
exceeding fifteen (15) years, and may be extended for similar
terms of years, except that any parcels of the land of the airport
may be leased for any use connected with the operation and
convenience of the airport for an initial term not exceeding
forty (40) years, and may be extended for a period not to exceed
ten (10) years. If a person whose character, experience, and
financial responsibility has been determined satisfactory by the
board offers to erect a permanent structure that facilitates and
is consistent with the operation, use, and purpose of the airport,
on land belonging to the airport. A lease may be entered into for
a period not to exceed ninety-nine (99) years. However, the
fiscal body must pass an ordinance authorizing the board to
enter into such a lease. The board may not grant an exclusive
right for the use of a landing area under its jurisdiction.
However, this does not prevent the making of leases in
accordance with other provisions of this chapter. All contracts
and leases are subject to restrictions and conditions that the
board prescribes.
(6) To sell machinery, equipment, or material under the control
of the board belonging to the eligible entity that is not required
for aviation purposes. The proceeds shall be deposited with the
entity's treasurer or controller to the credit of the department of
aviation.
(7) To negotiate and execute contracts of sale or purchase,
lease, personal services, materials, supplies, equipment, or any
other transaction or business relative to an airport under the
board's control. However, whenever the board determines to sell
part or all of aviation lands or improvements owned by the
eligible entity, the sale must be in accordance with section 8 of
this chapter.
(8) To vacate all or parts of roads, highways, streets, or alleys
in land under control of the board in the manner provided by
statute.
(9) To approve, together with the fiscal body of the entity, any
state, county, city, or other highway, road, street, or other public
way, railroad, power line, or other right of way that may be laid
out or opened across an airport or in such proximity as to affect
the safe operation of the airport.
(10) To construct drainage and sanitary sewers with
connections and outlets as are necessary for the proper drainage
and maintenance of an airport or landing field acquired or
maintained under this chapter, including the necessary buildings
and improvements and for the public use of them, in the same
manner that the eligible entity may construct sewers and drains.
However, with respect to the construction of drains and sanitary
sewers beyond the boundaries of the airport or landing field, the
board shall proceed in the same manner as private owners of
property and may institute proceedings and negotiate with the
departments, bodies, and officers of the entity to secure the
proper orders and approvals.
(11) To order a public utility or public service corporation or
other person to remove or to install in underground conduits,
wires, cables, and power lines passing through or over the
airport or landing field or along the borders or within a
reasonable distance that may be determined to be necessary for
the safety of operations of the airport or landing field, upon
payment to the utility or other person due compensation for the
expense of the removal or reinstallation. The board must
consent to any franchise granted by state or local authorities for
the construction or maintenance of any railway, telephone,
telegraph, electric power, pipe, or conduit line upon, over, or
through land under the control of the board or within a
reasonable distance of land that is necessary for the safety of
operation. The board must also consent to the installation of
overhead electric power lines carrying a voltage of over
forty-four hundred (4,400) volts and having poles, standards, or
supports over thirty (30) feet in height within one-half (1/2)
mile of a landing area acquired or maintained under this
chapter.
(12) To contract with any other state agency or instrumentality
or any political subdivision for the rendition of services, the
rental or use of equipment or facilities, or the joint purchase and
use of equipment or facilities that are necessary for the
operation, maintenance, or construction of an airport operated
under 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, other
than those for professional services and those for the acquisition of
land, structures, easements, and rights-of-way, IC 5-22 and
IC 36-1-9.5 apply. In case of an emergency being declared by the
board, the board may purchase necessary materials under IC 5-22-10
without 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 of
estimated appropriations; reserve or depreciation account
Sec. 7. (a) The board may, in the name of the eligible entity, take
action to recover damages for the breach of an agreement, express or
implied, relating to the operation, control, leasing, management, or
improvement of the property under its control, to impose the
penalties for the violation of ordinances of the entity or of its rules
or regulations, and for injury to the personal or real property under
its control, and to recover possession of any such property. All rules
and regulations that the board adopts under this chapter shall be
published in accordance with IC 5-3-1.
(b) In addition to other taxes of the eligible entity, a tax may be
levied annually by the fiscal body for aviation purposes, and the
entity's treasurer shall collect the taxes as other taxes are collected.
When the taxes are collected they shall be deposited in the treasury
of the entity in a separate fund known as the "aviation fund". Only
one (1) tax levy for aviation purposes may be imposed upon the
assessed property in a county, city, or town unless that unit approves
by ordinance the levy of more than one (1) tax for aviation purposes.
The fiscal body of the entity may appropriate and transfer to the
aviation fund any sum or sums out of the general funds of the entity,
in accordance with statutes providing for additional appropriations
for the entities, and the fiscal body may borrow money and issue
bonds of the entity for aviation purposes and shall turn the proceeds
from the bonds into the aviation fund of the entity.
(c) The board of aviation commissioners shall prepare and file
with the executive of the eligible entity annually, at the time the
executive designates, a full and detailed estimate of the
appropriations required during the ensuing year for the maintenance
and operation of the airports and landing fields showing the number
of employees, including manager and secretary, and the amount of
salary and wages recommended for each. Expenditures for the
maintenance and operation of the airports or landing fields are
limited to the appropriations of money made in advance by the fiscal
body upon furnished estimates. Purchases and expenditures shall be
made and allowable claims shall be paid by the board in the same
manner as provided for the allowance of other claims against the
entity. The fiscal body of the entity may appropriate a sufficient
amount for the help, supplies, and equipment necessary for the
equipment and maintenance of the airports or landing fields. The
fiscal body of the entity may appropriate a sufficient amount as a
rotary fund to be used by the board for the purchase of fuels and
lubricants to be sold to the general public in the operation of the
airport. All funds received from the sale of fuels and lubricants
purchased with funds from a rotary fund shall be turned over at least
once a month to the treasurer of the entity to remain in the rotary
fund to be checked against by the board as other appropriations are
disbursed, for the sole purpose of purchasing fuels and lubricants for
sale to the public in the operation of the airport. At the end of each
fiscal year, the board shall make a detailed statement to the fiscal
body showing the amount of money received and paid over to the
treasurer to the credit of the rotary fund and also showing the amount
of fuels and lubricants on hand. If at the end of a fiscal year the
accumulated rotary fund plus value of inventory of fuels and
lubricants on hand exceeds the total previous appropriation to the
fund by twenty-five percent (25%), the excess shall be turned over
to the aviation fund. The board may incur obligations or liability of
any sort on behalf of the entity only if it falls within the
appropriation specifically made for that purpose. All money
remaining in the treasury to the credit of the board at the end of the
calendar year belongs to the general aviation fund to be used by the
board for aviation purposes. All funds received by the board from
whatever source, except funds received from the sale of fuels and
lubricants purchased by funds from the rotary fund, shall be
deposited in the treasury of the entity to the credit of the aviation
fund.
(d) The board may create a reserve or depreciation account for the
purpose of capital improvements or replacements out of operating
profits 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 the
aviation land or improvements owned by the eligible entity, it may
prepare an ordinance authorizing the sale and submit it to the fiscal
body of the entity. If the fiscal body passes the ordinance, the land or
improvements shall be sold as other lands or improvements of the
entity are sold, and the proceeds of the sale shall be deposited in the
aviation fund of the entity.
(b) If the board negotiates an agreement to sell trees situated in
woods or forest areas owned by the board, the trees are considered
to 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; zoning
jurisdiction
Sec. 9. (a) In order to provide free air space for the safe descent
and ascent of aircraft and for the proper and safe use of an airport or
landing field acquired or maintained under this chapter, the board
may, subject to approval and adoption by the fiscal body of the
eligible entity, establish and fix a restricted zone or zones for a
distance in any direction from the boundaries of the airport or
landing field so that no building or other structure is erected high
enough to interfere with the descent of an aircraft at the gliding angle
necessary for safety for the usual type of operation that is conducted
at the airport or landing field. The board may, in the name of the
entity, acquire by condemnation, upon the payment of due
compensation as provided in this chapter, the right to prevent the
erection of, and to require the removal of, all buildings, towers,
poles, wires, cables, other structures, and trees within the zone or
zones which interfere with the gliding angle or as much of any
structure or trees that interferes with the gliding angle. When so
condemned a permit issued by a department or office of the entity or
by any state or other authority for the erection of any structure inside
the zone or zones is effective only if approved by the board.
(b) Establishment of a restricted zone or zones outside of an
airport or landing field in connection with the condemnation of rights
in the land constitutes condemnation and the perpetual annihilation
of all rights of the owners of the property within the zone or zones to
erect or maintain any building or structure that will interfere with the
gliding angle. This result may also be accomplished by absolute
condemnation of the land, with perpetual and irrevocable free license
to use and occupy the land within the zone for all purposes except
the erection of buildings or other structures above the height
prescribed.
(c) The jurisdiction of each eligible entity is extended to the
promulgation, administering, and enforcement of airport zoning
regulations to protect the approaches of an airport that is owned by
the entity but located wholly or partially outside the corporate limits
of the entity. In case of conflict with any airport zoning or other
regulations promulgated by an entity, the regulations adopted under
this section prevail.
(d) The zoning jurisdiction granted in this section is exclusive
against jurisdiction granted by any other statute unless any other
statute specifically provides otherwise.
(e) All airport zoning regulations adopted under this chapter must
be reasonable and may not impose a requirement or restriction that
is not reasonably necessary to effectuate the purposes of this chapter.
In determining what regulations to adopt, each eligible entity and
joint airport zoning board shall consider, among other things, the
character of the flying operations expected to be conducted at the
airport, the nature of the terrain within the airport hazard area, the
character of the neighborhood, and the uses to which the property to
be 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 purpose
of carrying out this chapter;
(2) may award damages to landowners for real property rights
appropriated; and
(3) if the board cannot agree with the owners, lessees, or
occupants of real property selected by the board for the
purposes in this chapter, may procure the condemnation of the
property.
The board may proceed under IC 32-24-1. IC 32-24-1 applies to
airports, landing fields, and restricted zones adjoining them to the
extent that it is not inconsistent with this chapter.
(b) If the land on or across which it is necessary to establish and
fix 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 so
appropriating it, the public use or prior condemnation does not bar
the right of the board to condemn the use of the ground for aviation
purposes. Use by the board does not permanently prevent the use of
the land for the prior public use or by the corporation condemning or
appropriating it.
(c) In a proceeding prosecuted by the board to condemn the use
of land for purposes permitted by this chapter, the burden is upon the
board to show that its use will not permanently or seriously interfere
with the continued public use of the land or by the corporation
condemning it, or its successors. However, in the proceeding, the
board may require the removal or the burying beneath the surface of
the ground of wires, cables, power lines, or other structures within a
restricted zone established under this chapter. In a proceeding
prosecuted by the board to condemn or appropriate land, the use of
land, or rights in land for purposes permitted by this chapter:
(1) the board and all owners and holders of property or rights in
property sought to be taken are governed by and have the same
rights to procedure, notices, hearings, assessments, and
payments of benefits and awards as are prescribed by statute for
the appropriation and condemnation of real property; and
(2) the property owners have like powers and rights of
remonstrance and of appeals to the circuit or superior court in
the county in which the entity is located.
Appeals affect only the amount of the assessment of awards of the
person appealing and must conform to all laws relating to appeals.
The payment of all damages awarded for all lands, property, or rights
in them appropriated under this chapter shall be paid entirely out of
the funds under the control of the board.
(d) Notwithstanding this or any other statute or any charter, the
eligible entity may take possession of the property to be acquired at
any time after the filing of the petition describing the property in
condemnation proceedings. It is not precluded from abandoning the
condemnation of the property in any case where possession has not
been taken. The board:
(1) may acquire and use any land reasonably necessary for the
purposes of this chapter; and
(2) may not acquire or use land that is still being used and is
necessary for the purposes for which it was previously
condemned. 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 are
acquired or taken under this chapter, the board shall file and cause to
be recorded in the recorder's office of the county in which the land
is situated a description of the land sufficiently accurate for its
identification and a statement of the purpose for which it is required
or 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 necessity
and benefit; tax exemption of leasehold interests
Sec. 12. (a) The acquisition, establishment, construction,
improvement, equipment, maintenance, control, and operation of
municipal airports and landing fields for aircraft under this chapter
is considered to be a governmental function of general public
necessity and benefit and is for the use and general welfare of all the
people of Indiana, including the people residing in the eligible entity.
(b) Notwithstanding any other statute, the leasehold estate of any
lessee created pursuant to a lease by the board of its aviation related
property or facilities, together with any permanent structure erected
on 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 of
the board, sell the minerals or mineral rights or royalties, or grant
leases for the removal of a mineral in or under an airport or landing
field owned by the entity. They shall be sold or leased in the same
manner as land is sold or leased under this chapter, and the proceeds
derived from these sources shall be deposited with the treasurer of
the entity in the aviation fund of the entity and expended as provided
by statute for the proceeds of the sale of aviation lands. However, no
sale or lease for more than one (1) year may be made, except to the
highest and best bidder, after notice of sale or lease has been given
within the boundaries of the entity in accordance with IC 5-3-1, the
last publication having been made at least one (1) week before the
date 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 aviation
purposes and maintain, operate, manage, and control it and levy and
collect taxes for this purpose. Two (2) or more entities may
cooperate for this purpose by contributing to the total cost and
sharing the benefits and bearing the obligations accruing from it on
terms that they agree upon and evidence by contract. The joint
activity is subject to the same provisions and requirements provided
for such activity if carried on by any one (1) of the entities
individually, 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 increased
correspondingly. In case of failure of agreement between two (2) or
more entities upon petition filed by one (1) or more of the entities
involved, the aeronautics commission of Indiana, after investigation
and hearing, shall determine and prescribe reasonable and equitable
participation including representation on the joint governing board
and 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 determines
that the public interest and the interest of the entity will be served by
assisting another entity to exercise the powers granted by this
chapter, the former entity may furnish assistance by gift, or lease
with or without rental, of real property, by the donation, lease with
or without rental, or loan, of personal property, and by the
appropriation of monies that may be provided for by taxation or the
issuance of bonds in the same manner as funds might be provided for
the same purposes if the entity were exercising the powers granted
in 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 accumulates
funds that are derived from sources other than from the operation of
the airport and that are not needed for the operation or maintenance
of the airport, the board, upon a majority vote of its members, may
without notice transfer all or part of the funds to the general fund of
the entity if the funds were not derived from taxation. This section
does not apply to funds derived from lands leased from the federal
government. 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 board
under IC 8-21-8 may accept, receive, and receipt for federal monies
and other monies, either public or private, for the acquisition,
construction, enlargement, improvement, maintenance, equipment,
or operation of airports and other air navigation facilities, and sites
for them, and comply with federal law and rules and regulations
made under them for the expenditure of federal monies on airports
and other air navigation facilities.
(b) Subject to IC 8-21-8, the board has exclusive power on behalf
of the entity to submit to the proper state and federal agencies
applications for grants of funds for airport development and to make
or execute representations, assurances, and contracts and to enter into
agreements with state or federal agencies relative to the development
of 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 and
revenues; bonds; surplus
Sec. 18. (a) Subject to the approval of the fiscal body of the
eligible entity, the board may contract with any person for
construction, extensions, additions, or improvements of an aircraft
hangar or revenue producing building or facility located or to be
located on the airport of the entity, the cost of which is to be paid in
the manner authorized by this section.
(b) A contract made under this section must be authorized by
ordinance providing that the principal and interest of bonds issued
for the payment of the cost of the construction, extensions, additions,
or improvements shall be paid exclusively from the revenues and
receipts of the aircraft hangars or revenue producing buildings or
facilities, unless otherwise provided by this section.
(c) The fiscal body must, by ordinance, set aside the income and
revenues of the buildings or facilities into a separate fund, to be used
in the maintenance and operation and in payment of the cost of the
construction, extensions, additions, or improvements. The ordinance
must fix:
(1) the proportion of the revenues of the buildings or facilities
that is necessary for the reasonable and proper operation and
maintenance of them; and
(2) the proportion of the revenues that are to be set aside and
applied to the payment of the principal and interest of bonds.
The ordinance may provide for the proportion of the revenues that
are to be set aside as an adequate depreciation account.
(d) Whenever the board determines that there exists a surplus in
funds derived from the net operating receipts of a municipal airport,
then the board may recommend to the fiscal body that a designated
amount of the surplus fund be appropriated by special or general
appropriation to the "aviation revenue bond account" for the relief of
principal or interest of bonds issued under this section. However, this
surplus in funds may not include monies raised by taxation.
(e) The fiscal body may issue and sell bonds to provide for the
payment of costs of the following:
(1) Airport capital improvements, including the acquisition of
real property.
(2) Construction or improvement of revenue producing
buildings 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, payable
annually or semiannually, executed in the manner and payable at the
times not exceeding forty (40) years from the date of issue and at the
places as the fiscal body of the entity determines, which bonds are
payable only out of the "aviation revenue bond account" fund. The
bonds have in the hands of bona fide holders all the qualities of
negotiable instruments under law.
(f) In case any of the officers whose signatures or
countersignatures appear on the bonds or the coupons ceases to be
the officer before the delivery of the bonds to the purchaser, the
signature or countersignatures are nevertheless valid and sufficient
for all purposes, the same as if he had remained in office until the
delivery of the bonds. The bonds and their interest issued against an
"aviation revenue bond account" fund and the fixed proportion or
amount of the revenues pledged to the fund does not constitute an
indebtedness of the entity under the Constitution of the State of
Indiana.
(g) Each bond must state plainly upon its face that it is payable
only from the special fund, naming the fund and the ordinance
creating it, and that it does not constitute an indebtedness of the
entity under the Constitution of the State of Indiana. The bonds may
be issued either as registered bonds or as bonds payable to bearer.
Coupons and bearer bonds may be registered as to principal in the
holder's name on the books of the entity, the registration being noted
on the bond by the clerk or other designated officer, after which no
transfer is valid unless made on the books of the entity by the
registered holder and similarly noted on the bonds. Bonds so
registered as to principal may be discharged from the registration by
being transferred to bearer, after which it is transferable by delivery
but may be registered again as to principal. The registration of the
bonds as to the principal does not restrain the negotiability of the
coupon by delivery, but the coupons may be surrendered and the
interest made payable only to the registered holder of the bonds. If
the coupons are surrendered, the surrender and cancellation of them
shall be noted on the bond and then interest on the bond is payable
to the registered holder or order in cash or at his option by check or
draft payable at the place or one (1) of the places where the coupons
are payable.
(h) The bonds shall be sold in a manner and upon terms that the
fiscal body considers in the best interest of the entity.
(i) All bonds issued by an eligible entity under this section are
exempt from taxation for all purposes, except that the interest is
subject to the adjusted gross income tax.
(j) In fixing the proportion of the revenues of the building or
facility required for operation and maintenance, the fiscal body shall
consider the cost of operation and maintenance of the building or
facility and may not set aside into the special fund a greater amount
or proportion of the revenues and proceeds than are required for the
operation and maintenance. The sums set aside for operation and
maintenance shall be used exclusively for that purpose, until the
accumulation of a surplus results.
(k) The proportion set aside to the depreciation fund, if a
depreciation account or fund is provided for under this section, shall
be expended in remedying depreciation in the building or facility or
in 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 other
purpose.
(l) The fixed proportion that is set aside for the payment of the
principal and interest of the bonds shall, from month to month, as it
is accrued and received, be set apart and paid into a special account
in the treasury of the eligible entity, to be identified "aviation
revenue bond account," the title of the account to be specified by
ordinance. In fixing the amount or proportion to be set aside for the
payment of the principal and interest of the bonds, the fiscal body
may provide that the amount to be set aside and paid into the aviation
revenue bond account for any year or years may not exceed a fixed
sum, which sum must be at least sufficient to provide for the
payment of the interest and principal of the bonds maturing and
becoming payable in each year, together with a surplus or margin of
ten percent (10%).
(m) If a surplus is accumulated in the operating and maintenance
fund that is equal to the cost of maintaining and operating the
building or facility for the twelve (12) following calendar months,
the excess over the surplus may be transferred by the fiscal body to
either the depreciation account to be used for improvements,
extensions, or additions to property or to the aviation revenue bond
account fund, as the fiscal body designates.
(n) If a surplus is created in the aviation revenue bond account in
excess of the interest and principal of bonds, plus ten percent (10%),
becoming payable during the calendar, operating, or fiscal year then
current, together with the amount of interest or principal of bonds
becoming due and payable during the next calendar, operating, or
fiscal year, the fiscal body may transfer the excess over the surplus
to either the operating and maintenance account, or to the
depreciation account, as the fiscal body designates.
(o) All money received from bonds issued under this section shall
be applied solely for the purposes listed in subsection (e). There is
created a statutory mortgage lien upon buildings or facilities for
which bonds are issued in favor of the holders of the bonds and of
the coupons of the bonds. The buildings or facilities so constructed,
extended, or improved remain subject to the statutory mortgage lien
until payment in full of the principal and interest of the bonds.
(p) A holder of the bonds or of the attached coupons may enforce
the statutory mortgage lien conferred by this section, and may
enforce performance of all duties required by this section of the
eligible entity issuing the bond or of any officer of the entity,
including:
(1) the making and collecting of reasonable and sufficient rates
or rentals for the use or lease of the buildings or facilities, or
part of them established for the rent, lease, or use of the
buildings or facilities;
(2) the segregation of the revenues from the buildings or
facilities; and
(3) the application of the respective funds created by this
section.
(q) If there is a default in the payment of the principal or interest
of any of the bonds, a court having jurisdiction of the action may
appoint an administrator or receiver to administer, manage, or
operate the buildings or facilities on behalf of the entity, and the
bondholders, with power to:
(1) charge and collect rates or rentals for the use or lease of the
buildings or facilities sufficient to provide for the payment of
the operating expenses;
(2) pay any bonds or obligations outstanding against the
buildings or facilities; and
(3) apply the income and revenues thereof in accord with this
section 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 money
from any source for the payment of the costs of airport capital
improvements, including the acquisition of real property or
construction or improvement of revenue producing buildings or
facilities located on an airport and owned and operated by the
eligible entity, subject to the following requirements:
(1) The loan contract must be approved by resolution of the
board and the fiscal body of the eligible entity that established
the board.
(2) The loan contract must provide for the repayment of the
loan in not more than forty (40) years.
(3) The loan contract must state that the indebtedness is that of
the board, is payable solely from revenues of the board that are
derived from either airport operations or from revenue bonds,
and may not be paid by a tax levied on property located within
the district.
(4) The loan contract must be submitted to the department of
local government finance, which may approve, disapprove, or
reduce the amount of the proposed loan contract. The
department of local government finance must make a decision
on the loan contract within thirty (30) days after the contract is
submitted for review. The action taken by the department of
local government finance on the proposed loan contract is final.
(b) A loan contract issued under this chapter is issued for essential
public and governmental purposes. A loan contract, the interest on
the contract, the proceeds received by a holder from the sale of a loan
contract to the extent of the holder's cost of acquisition, proceeds
received upon redemption before maturity, proceeds received at
maturity, and the receipt of the interest and proceeds are exempt
from 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 or
landing field, and all other acts in connection with them, taken by the
entity under a prior statute, including all bonds issued, authorized, or
sold under that statute or any other statute, the proceeds of which
have been either used or designed for purposes stated in this chapter,
and all acts of officials relating to any of the matters stated, are
ratified 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 for
section 18, commits a Class B misdemeanor. As added by Acts 1980, P.L.8, SEC.73.
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 adopts
an ordinance or a resolution in favor of the acquisition, improvement,
operation, or maintenance of an airport or landing field for the entity
under this chapter, and declaring a necessity for the airport or landing
field, then on the effective date of the ordinance or resolution, there
is established as an executive department of the entity a department
of aviation, under the control of a board to be known as the board of
aviation commissioners.
(b) The following apply to a board of aviation commissioners
established under this chapter:
(1) Except as provided in subsections (e), (f), and (g), the board
consists of four (4) members.
(2) Except as provided in subsection (e), the executive of the
entity shall appoint the members of the board.
(3) Except as provided in subsections (f) and (g), not more than
two (2) of the members of the board may be of the same
political party.
(c) The fiscal body of the entity may provide a per diem for the
members of the board in any amount not exceeding thirty-five dollars
($35) for each whole or part day a member is engaged in board
activities. The members of the board shall also be paid their actual
expenses, which may include the expenses of the members or
employees of the board in attending meetings or conventions held to
discuss aviation matters.
(d) Before beginning the duties of office, each board member
shall take and subscribe the usual oath of office, to be endorsed upon
the certificate of appointment, and shall cause that to be filed with
the clerk or other officer performing duties similar to that of clerk in
the entity. Any person who does not file the oath with the clerk or
other officer performing duties similar to that of the clerk within
thirty (30) days after the beginning of the term for which the person
has been appointed, or at the date of the person's appointment, if
appointed after the beginning of the term, is considered to have
refused to serve and the office becomes vacant.
(e) Notwithstanding subsection (b), if a county having a
population of more than two hundred thousand (200,000) but less
than three hundred thousand (300,000) has established a board, the
county council and the mayors of the two (2) cities in the county
having the largest populations may each appoint one (1) additional
member to the board, thereby creating a board consisting of a total
of seven (7) members. The three (3) additional members serve in the
same manner, are accorded the same status, and perform the same
duties 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) mayors
fails to make appointments to the board, that fact does not prejudice
appointments that may be made by the other appointing authority or
authorities.
(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-six
thousand (36,000) but less than thirty-six thousand seventy-five
(36,075).
Notwithstanding subsection (b), if a county has established a board
under this chapter, the county executive may add one (1) additional
member 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 the
board may be of the same political party. The one (1) additional
member shall serve in the same manner, be accorded the same status,
and perform the same duties as the four (4) initial members, and
serve 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 an
eligible entity may adopt an ordinance or a resolution providing that
the board consists of five (5) members. If the board consists of five
(5) members, not more than three (3) members may be of the same
political 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 a
consolidated city or at least one (1) 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 is
located;
(3) not be actively engaged or employed in commercial
aeronautics;
(4) not hold any other governmental office (by appointment or
election) that has statutory fiscal or management review of the
board'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 of
aviation; and
(B) has statutory fiscal or management review of the board's
actions.
(b) This subsection does not apply to a county if the county
contains 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 is
located; and
(3) not be actively engaged or employed in commercial
aeronautics 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 noon
on the first Monday in January of the year of their appointment.
(b) On the expiration of the respective terms, the executive shall
appoint a commissioner or commissioners to fill the vacancies
caused by the expiration, and the commissioner or commissioners so
appointed hold office for a term of four (4) years, and until their
successors are appointed and qualified, and if a vacancy occurs in the
board by resignation or otherwise, the executive shall appoint a
commissioner for the remainder of the term. The executive of the
eligible entity may, at any time, remove a commissioner from office,
but only upon filing in writing with the clerk or other officer
performing 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 regular
meeting in January, one (1) of its members president, and another of
its members vice president to perform the duties of the president
during the absence or disability of the president. The eligible entity
shall provide a suitable office for the board in the entity, or, at the
option of the board, at the airport, at the expense of the department
of aviation, where its maps, plans, documents, records, and accounts
shall be kept, subject to public inspection at all reasonable times.
Before February 2 each year the board shall make a report to the
executive of its proceedings with a full statement of its receipts and
disbursements for the preceding year, including a report of the
acquisition of air navigation facilities and of other property that has
come under the control of the board, improvements made, general
character of the work of the board, and progress of aviation and air
commerce under its control. Money received by the board shall be
paid into the entity's treasury and credited to the department of
aviation, and all expenditures relating to the property and business
under the control of the department, except as otherwise provided,
may be provided for by special levy of taxes under section 7 of this
chapter, and shall be paid from the entity's treasury when ordered by
the board. A majority of the members constitutes a quorum, and an
action of the board must be taken by a majority of the members at a
regular or duly called special meeting. In case of a tie vote on any
question, the executive shall decide. The board shall fix a time for
holding regular meetings. Regular or special meetings shall be held
at the office of the board or at another public place in any county
where the board owns or operates an airport. Special meetings of the
board may be called at any time by its president, or by any two (2) of
its members, upon a written request to the secretary. Whenever in the
opinion of the president or of any two (2) members, a special
meeting is necessary, he or they shall cause the secretary to notify the
members by mailing written notice of the time of the meeting, at least
one (1) day before the meeting. A member may waive notice in
writing and the presence of a member at a special meeting is
considered 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's
performance of its duties and the exercise of its powers may be
executed in its name or in the name of the eligible entity, as the case
may be, by the president or vice president of the board and attested
by its secretary or assistant secretary. However, the board may by
resolution prescribe another method of execution.
(b) The board, on behalf of the eligible entity, exclusively has the
following powers:
(1) To acquire, establish, construct, improve, equip, maintain,
control, lease, and regulate municipal airports and landing fields
and other air navigation facilities, for the use of airplanes and
other aircraft, either inside or outside the corporate limits of the
entity, subject to statutory limitations; to acquire by lease (with
or without the option to purchase) airports, landing fields, air
navigation facilities, and any other structures, equipment, and
related improvements; and to erect, install, construct and
maintain at those airports facilities for the servicing of aircraft
and for the comfort and accommodation of air travelers and the
public; and the fiscal body of the entity may by ordinance
provide that any land suitable for these purposes that is owned
by 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, and
qualification of the board in an entity, the entity owns or
controls an airport, landing field, or other air navigation
facilities, then the exclusive control, management, and authority
over the airport, landing field, or other air navigation facilities
shall at once be transferred to the board without the adoption of
an ordinance; and the department, board, officer, or officers of
the entity, or other persons having possession or control, shall
at once turn over and deliver to the board all personal property,
records, books, plans, maps, and other papers and documents
relating to the aviation business of the entity. The unexpended
balance of any fund or funds appropriated by the entity for
aviation purposes becomes a part of the aviation fund of the
department of aviation. Before land may be purchased by an
entity for the establishment of an airport or landing field or an
airport or landing field may be established by an entity the
action or acquisition of land must be granted by the aeronautics
commission of Indiana.
(2) To elect a secretary from its membership or to employ a
secretary, and to employ superintendents, managers, engineers,
surveyors, attorneys, clerks, guards, mechanics, laborers, and all
employees the board considers expedient, and to prescribe and
assign their respective duties and authorities and to fix and
regulate their compensation, in accordance with the
appropriations made by the fiscal body of the entity. All
employees shall be selected irrespective of their political
affiliations.
(3) To make rules and regulations, consistent with law, for the
management and control of its airports, landing fields, air
navigation facilities, and other property under its control. The
board may require a special detail of police or hire guards to
execute the orders and enforce the rules and regulations.
(4) To acquire by lease the use of an airport or landing field for
aircraft pending the acquisition and improvement of an airport
or landing field. However, a lease must be approved by
ordinance or resolution of the fiscal body of the entity before it
takes effect.
(5) To manage and operate all airports, landing fields, and other
air navigation facilities acquired or maintained by the entity;
and to lease all or part of an airport, landing field, or any
buildings or other structures to fix, charge, and collect rentals,
tolls, fees, and charges to be paid for the use of the whole or a
part of the airports, landing fields, or other air navigation
facilities by aircraft landing there and for the servicing of the
aircraft; to construct public recreational facilities that will not
interfere with air operational facilities; to fix, charge, and
collect fees for public admissions and privileges; to make
contracts 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 navigation
facilities through lessees, through its own employees, or
otherwise. Contracts or leases for the maintenance, operation,
or use of the airport or any part of it may be made for a term not
exceeding fifteen (15) years, and may be extended for similar
terms of years, except that any parcels of the land of the airport
may be leased for any use connected with the operation and
convenience of the airport for an initial term not exceeding
forty (40) years, and may be extended for a period not to exceed
ten (10) years. If a person whose character, experience, and
financial responsibility has been determined satisfactory by the
board offers to erect a permanent structure that facilitates and
is consistent with the operation, use, and purpose of the airport,
on land belonging to the airport. A lease may be entered into for
a period not to exceed ninety-nine (99) years. However, the
fiscal body must pass an ordinance authorizing the board to
enter into such a lease. The board may not grant an exclusive
right for the use of a landing area under its jurisdiction.
However, this does not prevent the making of leases in
accordance with other provisions of this chapter. All contracts
and leases are subject to restrictions and conditions that the
board prescribes.
(6) To sell machinery, equipment, or material under the control
of the board belonging to the eligible entity that is not required
for aviation purposes. The proceeds shall be deposited with the
entity's treasurer or controller to the credit of the department of
aviation.
(7) To negotiate and execute contracts of sale or purchase,
lease, personal services, materials, supplies, equipment, or any
other transaction or business relative to an airport under the
board's control. However, whenever the board determines to sell
part or all of aviation lands or improvements owned by the
eligible entity, the sale must be in accordance with section 8 of
this chapter.
(8) To vacate all or parts of roads, highways, streets, or alleys
in land under control of the board in the manner provided by
statute.
(9) To approve, together with the fiscal body of the entity, any
state, county, city, or other highway, road, street, or other public
way, railroad, power line, or other right of way that may be laid
out or opened across an airport or in such proximity as to affect
the safe operation of the airport.
(10) To construct drainage and sanitary sewers with
connections and outlets as are necessary for the proper drainage
and maintenance of an airport or landing field acquired or
maintained under this chapter, including the necessary buildings
and improvements and for the public use of them, in the same
manner that the eligible entity may construct sewers and drains.
However, with respect to the construction of drains and sanitary
sewers beyond the boundaries of the airport or landing field, the
board shall proceed in the same manner as private owners of
property and may institute proceedings and negotiate with the
departments, bodies, and officers of the entity to secure the
proper orders and approvals.
(11) To order a public utility or public service corporation or
other person to remove or to install in underground conduits,
wires, cables, and power lines passing through or over the
airport or landing field or along the borders or within a
reasonable distance that may be determined to be necessary for
the safety of operations of the airport or landing field, upon
payment to the utility or other person due compensation for the
expense of the removal or reinstallation. The board must
consent to any franchise granted by state or local authorities for
the construction or maintenance of any railway, telephone,
telegraph, electric power, pipe, or conduit line upon, over, or
through land under the control of the board or within a
reasonable distance of land that is necessary for the safety of
operation. The board must also consent to the installation of
overhead electric power lines carrying a voltage of over
forty-four hundred (4,400) volts and having poles, standards, or
supports over thirty (30) feet in height within one-half (1/2)
mile of a landing area acquired or maintained under this
chapter.
(12) To contract with any other state agency or instrumentality
or any political subdivision for the rendition of services, the
rental or use of equipment or facilities, or the joint purchase and
use of equipment or facilities that are necessary for the
operation, maintenance, or construction of an airport operated
under 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, other
than those for professional services and those for the acquisition of
land, structures, easements, and rights-of-way, IC 5-22 and
IC 36-1-9.5 apply. In case of an emergency being declared by the
board, the board may purchase necessary materials under IC 5-22-10
without 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 of
estimated appropriations; reserve or depreciation account
Sec. 7. (a) The board may, in the name of the eligible entity, take
action to recover damages for the breach of an agreement, express or
implied, relating to the operation, control, leasing, management, or
improvement of the property under its control, to impose the
penalties for the violation of ordinances of the entity or of its rules
or regulations, and for injury to the personal or real property under
its control, and to recover possession of any such property. All rules
and regulations that the board adopts under this chapter shall be
published in accordance with IC 5-3-1.
(b) In addition to other taxes of the eligible entity, a tax may be
levied annually by the fiscal body for aviation purposes, and the
entity's treasurer shall collect the taxes as other taxes are collected.
When the taxes are collected they shall be deposited in the treasury
of the entity in a separate fund known as the "aviation fund". Only
one (1) tax levy for aviation purposes may be imposed upon the
assessed property in a county, city, or town unless that unit approves
by ordinance the levy of more than one (1) tax for aviation purposes.
The fiscal body of the entity may appropriate and transfer to the
aviation fund any sum or sums out of the general funds of the entity,
in accordance with statutes providing for additional appropriations
for the entities, and the fiscal body may borrow money and issue
bonds of the entity for aviation purposes and shall turn the proceeds
from the bonds into the aviation fund of the entity.
(c) The board of aviation commissioners shall prepare and file
with the executive of the eligible entity annually, at the time the
executive designates, a full and detailed estimate of the
appropriations required during the ensuing year for the maintenance
and operation of the airports and landing fields showing the number
of employees, including manager and secretary, and the amount of
salary and wages recommended for each. Expenditures for the
maintenance and operation of the airports or landing fields are
limited to the appropriations of money made in advance by the fiscal
body upon furnished estimates. Purchases and expenditures shall be
made and allowable claims shall be paid by the board in the same
manner as provided for the allowance of other claims against the
entity. The fiscal body of the entity may appropriate a sufficient
amount for the help, supplies, and equipment necessary for the
equipment and maintenance of the airports or landing fields. The
fiscal body of the entity may appropriate a sufficient amount as a
rotary fund to be used by the board for the purchase of fuels and
lubricants to be sold to the general public in the operation of the
airport. All funds received from the sale of fuels and lubricants
purchased with funds from a rotary fund shall be turned over at least
once a month to the treasurer of the entity to remain in the rotary
fund to be checked against by the board as other appropriations are
disbursed, for the sole purpose of purchasing fuels and lubricants for
sale to the public in the operation of the airport. At the end of each
fiscal year, the board shall make a detailed statement to the fiscal
body showing the amount of money received and paid over to the
treasurer to the credit of the rotary fund and also showing the amount
of fuels and lubricants on hand. If at the end of a fiscal year the
accumulated rotary fund plus value of inventory of fuels and
lubricants on hand exceeds the total previous appropriation to the
fund by twenty-five percent (25%), the excess shall be turned over
to the aviation fund. The board may incur obligations or liability of
any sort on behalf of the entity only if it falls within the
appropriation specifically made for that purpose. All money
remaining in the treasury to the credit of the board at the end of the
calendar year belongs to the general aviation fund to be used by the
board for aviation purposes. All funds received by the board from
whatever source, except funds received from the sale of fuels and
lubricants purchased by funds from the rotary fund, shall be
deposited in the treasury of the entity to the credit of the aviation
fund.
(d) The board may create a reserve or depreciation account for the
purpose of capital improvements or replacements out of operating
profits 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 the
aviation land or improvements owned by the eligible entity, it may
prepare an ordinance authorizing the sale and submit it to the fiscal
body of the entity. If the fiscal body passes the ordinance, the land or
improvements shall be sold as other lands or improvements of the
entity are sold, and the proceeds of the sale shall be deposited in the
aviation fund of the entity.
(b) If the board negotiates an agreement to sell trees situated in
woods or forest areas owned by the board, the trees are considered
to 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; zoning
jurisdiction
Sec. 9. (a) In order to provide free air space for the safe descent
and ascent of aircraft and for the proper and safe use of an airport or
landing field acquired or maintained under this chapter, the board
may, subject to approval and adoption by the fiscal body of the
eligible entity, establish and fix a restricted zone or zones for a
distance in any direction from the boundaries of the airport or
landing field so that no building or other structure is erected high
enough to interfere with the descent of an aircraft at the gliding angle
necessary for safety for the usual type of operation that is conducted
at the airport or landing field. The board may, in the name of the
entity, acquire by condemnation, upon the payment of due
compensation as provided in this chapter, the right to prevent the
erection of, and to require the removal of, all buildings, towers,
poles, wires, cables, other structures, and trees within the zone or
zones which interfere with the gliding angle or as much of any
structure or trees that interferes with the gliding angle. When so
condemned a permit issued by a department or office of the entity or
by any state or other authority for the erection of any structure inside
the zone or zones is effective only if approved by the board.
(b) Establishment of a restricted zone or zones outside of an
airport or landing field in connection with the condemnation of rights
in the land constitutes condemnation and the perpetual annihilation
of all rights of the owners of the property within the zone or zones to
erect or maintain any building or structure that will interfere with the
gliding angle. This result may also be accomplished by absolute
condemnation of the land, with perpetual and irrevocable free license
to use and occupy the land within the zone for all purposes except
the erection of buildings or other structures above the height
prescribed.
(c) The jurisdiction of each eligible entity is extended to the
promulgation, administering, and enforcement of airport zoning
regulations to protect the approaches of an airport that is owned by
the entity but located wholly or partially outside the corporate limits
of the entity. In case of conflict with any airport zoning or other
regulations promulgated by an entity, the regulations adopted under
this section prevail.
(d) The zoning jurisdiction granted in this section is exclusive
against jurisdiction granted by any other statute unless any other
statute specifically provides otherwise.
(e) All airport zoning regulations adopted under this chapter must
be reasonable and may not impose a requirement or restriction that
is not reasonably necessary to effectuate the purposes of this chapter.
In determining what regulations to adopt, each eligible entity and
joint airport zoning board shall consider, among other things, the
character of the flying operations expected to be conducted at the
airport, the nature of the terrain within the airport hazard area, the
character of the neighborhood, and the uses to which the property to
be 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 purpose
of carrying out this chapter;
(2) may award damages to landowners for real property rights
appropriated; and
(3) if the board cannot agree with the owners, lessees, or
occupants of real property selected by the board for the
purposes in this chapter, may procure the condemnation of the
property.
The board may proceed under IC 32-24-1. IC 32-24-1 applies to
airports, landing fields, and restricted zones adjoining them to the
extent that it is not inconsistent with this chapter.
(b) If the land on or across which it is necessary to establish and
fix 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 so
appropriating it, the public use or prior condemnation does not bar
the right of the board to condemn the use of the ground for aviation
purposes. Use by the board does not permanently prevent the use of
the land for the prior public use or by the corporation condemning or
appropriating it.
(c) In a proceeding prosecuted by the board to condemn the use
of land for purposes permitted by this chapter, the burden is upon the
board to show that its use will not permanently or seriously interfere
with the continued public use of the land or by the corporation
condemning it, or its successors. However, in the proceeding, the
board may require the removal or the burying beneath the surface of
the ground of wires, cables, power lines, or other structures within a
restricted zone established under this chapter. In a proceeding
prosecuted by the board to condemn or appropriate land, the use of
land, or rights in land for purposes permitted by this chapter:
(1) the board and all owners and holders of property or rights in
property sought to be taken are governed by and have the same
rights to procedure, notices, hearings, assessments, and
payments of benefits and awards as are prescribed by statute for
the appropriation and condemnation of real property; and
(2) the property owners have like powers and rights of
remonstrance and of appeals to the circuit or superior court in
the county in which the entity is located.
Appeals affect only the amount of the assessment of awards of the
person appealing and must conform to all laws relating to appeals.
The payment of all damages awarded for all lands, property, or rights
in them appropriated under this chapter shall be paid entirely out of
the funds under the control of the board.
(d) Notwithstanding this or any other statute or any charter, the
eligible entity may take possession of the property to be acquired at
any time after the filing of the petition describing the property in
condemnation proceedings. It is not precluded from abandoning the
condemnation of the property in any case where possession has not
been taken. The board:
(1) may acquire and use any land reasonably necessary for the
purposes of this chapter; and
(2) may not acquire or use land that is still being used and is
necessary for the purposes for which it was previously
condemned. 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 are
acquired or taken under this chapter, the board shall file and cause to
be recorded in the recorder's office of the county in which the land
is situated a description of the land sufficiently accurate for its
identification and a statement of the purpose for which it is required
or 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 necessity
and benefit; tax exemption of leasehold interests
Sec. 12. (a) The acquisition, establishment, construction,
improvement, equipment, maintenance, control, and operation of
municipal airports and landing fields for aircraft under this chapter
is considered to be a governmental function of general public
necessity and benefit and is for the use and general welfare of all the
people of Indiana, including the people residing in the eligible entity.
(b) Notwithstanding any other statute, the leasehold estate of any
lessee created pursuant to a lease by the board of its aviation related
property or facilities, together with any permanent structure erected
on 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 of
the board, sell the minerals or mineral rights or royalties, or grant
leases for the removal of a mineral in or under an airport or landing
field owned by the entity. They shall be sold or leased in the same
manner as land is sold or leased under this chapter, and the proceeds
derived from these sources shall be deposited with the treasurer of
the entity in the aviation fund of the entity and expended as provided
by statute for the proceeds of the sale of aviation lands. However, no
sale or lease for more than one (1) year may be made, except to the
highest and best bidder, after notice of sale or lease has been given
within the boundaries of the entity in accordance with IC 5-3-1, the
last publication having been made at least one (1) week before the
date 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 aviation
purposes and maintain, operate, manage, and control it and levy and
collect taxes for this purpose. Two (2) or more entities may
cooperate for this purpose by contributing to the total cost and
sharing the benefits and bearing the obligations accruing from it on
terms that they agree upon and evidence by contract. The joint
activity is subject to the same provisions and requirements provided
for such activity if carried on by any one (1) of the entities
individually, 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 increased
correspondingly. In case of failure of agreement between two (2) or
more entities upon petition filed by one (1) or more of the entities
involved, the aeronautics commission of Indiana, after investigation
and hearing, shall determine and prescribe reasonable and equitable
participation including representation on the joint governing board
and 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 determines
that the public interest and the interest of the entity will be served by
assisting another entity to exercise the powers granted by this
chapter, the former entity may furnish assistance by gift, or lease
with or without rental, of real property, by the donation, lease with
or without rental, or loan, of personal property, and by the
appropriation of monies that may be provided for by taxation or the
issuance of bonds in the same manner as funds might be provided for
the same purposes if the entity were exercising the powers granted
in 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 accumulates
funds that are derived from sources other than from the operation of
the airport and that are not needed for the operation or maintenance
of the airport, the board, upon a majority vote of its members, may
without notice transfer all or part of the funds to the general fund of
the entity if the funds were not derived from taxation. This section
does not apply to funds derived from lands leased from the federal
government. 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 board
under IC 8-21-8 may accept, receive, and receipt for federal monies
and other monies, either public or private, for the acquisition,
construction, enlargement, improvement, maintenance, equipment,
or operation of airports and other air navigation facilities, and sites
for them, and comply with federal law and rules and regulations
made under them for the expenditure of federal monies on airports
and other air navigation facilities.
(b) Subject to IC 8-21-8, the board has exclusive power on behalf
of the entity to submit to the proper state and federal agencies
applications for grants of funds for airport development and to make
or execute representations, assurances, and contracts and to enter into
agreements with state or federal agencies relative to the development
of 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 and
revenues; bonds; surplus
Sec. 18. (a) Subject to the approval of the fiscal body of the
eligible entity, the board may contract with any person for
construction, extensions, additions, or improvements of an aircraft
hangar or revenue producing building or facility located or to be
located on the airport of the entity, the cost of which is to be paid in
the manner authorized by this section.
(b) A contract made under this section must be authorized by
ordinance providing that the principal and interest of bonds issued
for the payment of the cost of the construction, extensions, additions,
or improvements shall be paid exclusively from the revenues and
receipts of the aircraft hangars or revenue producing buildings or
facilities, unless otherwise provided by this section.
(c) The fiscal body must, by ordinance, set aside the income and
revenues of the buildings or facilities into a separate fund, to be used
in the maintenance and operation and in payment of the cost of the
construction, extensions, additions, or improvements. The ordinance
must fix:
(1) the proportion of the revenues of the buildings or facilities
that is necessary for the reasonable and proper operation and
maintenance of them; and
(2) the proportion of the revenues that are to be set aside and
applied to the payment of the principal and interest of bonds.
The ordinance may provide for the proportion of the revenues that
are to be set aside as an adequate depreciation account.
(d) Whenever the board determines that there exists a surplus in
funds derived from the net operating receipts of a municipal airport,
then the board may recommend to the fiscal body that a designated
amount of the surplus fund be appropriated by special or general
appropriation to the "aviation revenue bond account" for the relief of
principal or interest of bonds issued under this section. However, this
surplus in funds may not include monies raised by taxation.
(e) The fiscal body may issue and sell bonds to provide for the
payment of costs of the following:
(1) Airport capital improvements, including the acquisition of
real property.
(2) Construction or improvement of revenue producing
buildings 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, payable
annually or semiannually, executed in the manner and payable at the
times not exceeding forty (40) years from the date of issue and at the
places as the fiscal body of the entity determines, which bonds are
payable only out of the "aviation revenue bond account" fund. The
bonds have in the hands of bona fide holders all the qualities of
negotiable instruments under law.
(f) In case any of the officers whose signatures or
countersignatures appear on the bonds or the coupons ceases to be
the officer before the delivery of the bonds to the purchaser, the
signature or countersignatures are nevertheless valid and sufficient
for all purposes, the same as if he had remained in office until the
delivery of the bonds. The bonds and their interest issued against an
"aviation revenue bond account" fund and the fixed proportion or
amount of the revenues pledged to the fund does not constitute an
indebtedness of the entity under the Constitution of the State of
Indiana.
(g) Each bond must state plainly upon its face that it is payable
only from the special fund, naming the fund and the ordinance
creating it, and that it does not constitute an indebtedness of the
entity under the Constitution of the State of Indiana. The bonds may
be issued either as registered bonds or as bonds payable to bearer.
Coupons and bearer bonds may be registered as to principal in the
holder's name on the books of the entity, the registration being noted
on the bond by the clerk or other designated officer, after which no
transfer is valid unless made on the books of the entity by the
registered holder and similarly noted on the bonds. Bonds so
registered as to principal may be discharged from the registration by
being transferred to bearer, after which it is transferable by delivery
but may be registered again as to principal. The registration of the
bonds as to the principal does not restrain the negotiability of the
coupon by delivery, but the coupons may be surrendered and the
interest made payable only to the registered holder of the bonds. If
the coupons are surrendered, the surrender and cancellation of them
shall be noted on the bond and then interest on the bond is payable
to the registered holder or order in cash or at his option by check or
draft payable at the place or one (1) of the places where the coupons
are payable.
(h) The bonds shall be sold in a manner and upon terms that the
fiscal body considers in the best interest of the entity.
(i) All bonds issued by an eligible entity under this section are
exempt from taxation for all purposes, except that the interest is
subject to the adjusted gross income tax.
(j) In fixing the proportion of the revenues of the building or
facility required for operation and maintenance, the fiscal body shall
consider the cost of operation and maintenance of the building or
facility and may not set aside into the special fund a greater amount
or proportion of the revenues and proceeds than are required for the
operation and maintenance. The sums set aside for operation and
maintenance shall be used exclusively for that purpose, until the
accumulation of a surplus results.
(k) The proportion set aside to the depreciation fund, if a
depreciation account or fund is provided for under this section, shall
be expended in remedying depreciation in the building or facility or
in 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 other
purpose.
(l) The fixed proportion that is set aside for the payment of the
principal and interest of the bonds shall, from month to month, as it
is accrued and received, be set apart and paid into a special account
in the treasury of the eligible entity, to be identified "aviation
revenue bond account," the title of the account to be specified by
ordinance. In fixing the amount or proportion to be set aside for the
payment of the principal and interest of the bonds, the fiscal body
may provide that the amount to be set aside and paid into the aviation
revenue bond account for any year or years may not exceed a fixed
sum, which sum must be at least sufficient to provide for the
payment of the interest and principal of the bonds maturing and
becoming payable in each year, together with a surplus or margin of
ten percent (10%).
(m) If a surplus is accumulated in the operating and maintenance
fund that is equal to the cost of maintaining and operating the
building or facility for the twelve (12) following calendar months,
the excess over the surplus may be transferred by the fiscal body to
either the depreciation account to be used for improvements,
extensions, or additions to property or to the aviation revenue bond
account fund, as the fiscal body designates.
(n) If a surplus is created in the aviation revenue bond account in
excess of the interest and principal of bonds, plus ten percent (10%),
becoming payable during the calendar, operating, or fiscal year then
current, together with the amount of interest or principal of bonds
becoming due and payable during the next calendar, operating, or
fiscal year, the fiscal body may transfer the excess over the surplus
to either the operating and maintenance account, or to the
depreciation account, as the fiscal body designates.
(o) All money received from bonds issued under this section shall
be applied solely for the purposes listed in subsection (e). There is
created a statutory mortgage lien upon buildings or facilities for
which bonds are issued in favor of the holders of the bonds and of
the coupons of the bonds. The buildings or facilities so constructed,
extended, or improved remain subject to the statutory mortgage lien
until payment in full of the principal and interest of the bonds.
(p) A holder of the bonds or of the attached coupons may enforce
the statutory mortgage lien conferred by this section, and may
enforce performance of all duties required by this section of the
eligible entity issuing the bond or of any officer of the entity,
including:
(1) the making and collecting of reasonable and sufficient rates
or rentals for the use or lease of the buildings or facilities, or
part of them established for the rent, lease, or use of the
buildings or facilities;
(2) the segregation of the revenues from the buildings or
facilities; and
(3) the application of the respective funds created by this
section.
(q) If there is a default in the payment of the principal or interest
of any of the bonds, a court having jurisdiction of the action may
appoint an administrator or receiver to administer, manage, or
operate the buildings or facilities on behalf of the entity, and the
bondholders, with power to:
(1) charge and collect rates or rentals for the use or lease of the
buildings or facilities sufficient to provide for the payment of
the operating expenses;
(2) pay any bonds or obligations outstanding against the
buildings or facilities; and
(3) apply the income and revenues thereof in accord with this
section 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 money
from any source for the payment of the costs of airport capital
improvements, including the acquisition of real property or
construction or improvement of revenue producing buildings or
facilities located on an airport and owned and operated by the
eligible entity, subject to the following requirements:
(1) The loan contract must be approved by resolution of the
board and the fiscal body of the eligible entity that established
the board.
(2) The loan contract must provide for the repayment of the
loan in not more than forty (40) years.
(3) The loan contract must state that the indebtedness is that of
the board, is payable solely from revenues of the board that are
derived from either airport operations or from revenue bonds,
and may not be paid by a tax levied on property located within
the district.
(4) The loan contract must be submitted to the department of
local government finance, which may approve, disapprove, or
reduce the amount of the proposed loan contract. The
department of local government finance must make a decision
on the loan contract within thirty (30) days after the contract is
submitted for review. The action taken by the department of
local government finance on the proposed loan contract is final.
(b) A loan contract issued under this chapter is issued for essential
public and governmental purposes. A loan contract, the interest on
the contract, the proceeds received by a holder from the sale of a loan
contract to the extent of the holder's cost of acquisition, proceeds
received upon redemption before maturity, proceeds received at
maturity, and the receipt of the interest and proceeds are exempt
from 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 or
landing field, and all other acts in connection with them, taken by the
entity under a prior statute, including all bonds issued, authorized, or
sold under that statute or any other statute, the proceeds of which
have been either used or designed for purposes stated in this chapter,
and all acts of officials relating to any of the matters stated, are
ratified 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 for
section 18, commits a Class B misdemeanor. As added by Acts 1980, P.L.8, SEC.73.
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 adopts
an ordinance or a resolution in favor of the acquisition, improvement,
operation, or maintenance of an airport or landing field for the entity
under this chapter, and declaring a necessity for the airport or landing
field, then on the effective date of the ordinance or resolution, there
is established as an executive department of the entity a department
of aviation, under the control of a board to be known as the board of
aviation commissioners.
(b) The following apply to a board of aviation commissioners
established under this chapter:
(1) Except as provided in subsections (e), (f), and (g), the board
consists of four (4) members.
(2) Except as provided in subsection (e), the executive of the
entity shall appoint the members of the board.
(3) Except as provided in subsections (f) and (g), not more than
two (2) of the members of the board may be of the same
political party.
(c) The fiscal body of the entity may provide a per diem for the
members of the board in any amount not exceeding thirty-five dollars
($35) for each whole or part day a member is engaged in board
activities. The members of the board shall also be paid their actual
expenses, which may include the expenses of the members or
employees of the board in attending meetings or conventions held to
discuss aviation matters.
(d) Before beginning the duties of office, each board member
shall take and subscribe the usual oath of office, to be endorsed upon
the certificate of appointment, and shall cause that to be filed with
the clerk or other officer performing duties similar to that of clerk in
the entity. Any person who does not file the oath with the clerk or
other officer performing duties similar to that of the clerk within
thirty (30) days after the beginning of the term for which the person
has been appointed, or at the date of the person's appointment, if
appointed after the beginning of the term, is considered to have
refused to serve and the office becomes vacant.
(e) Notwithstanding subsection (b), if a county having a
population of more than two hundred thousand (200,000) but less
than three hundred thousand (300,000) has established a board, the
county council and the mayors of the two (2) cities in the county
having the largest populations may each appoint one (1) additional
member to the board, thereby creating a board consisting of a total
of seven (7) members. The three (3) additional members serve in the
same manner, are accorded the same status, and perform the same
duties 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) mayors
fails to make appointments to the board, that fact does not prejudice
appointments that may be made by the other appointing authority or
authorities.
(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-six
thousand (36,000) but less than thirty-six thousand seventy-five
(36,075).
Notwithstanding subsection (b), if a county has established a board
under this chapter, the county executive may add one (1) additional
member 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 the
board may be of the same political party. The one (1) additional
member shall serve in the same manner, be accorded the same status,
and perform the same duties as the four (4) initial members, and
serve 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 an
eligible entity may adopt an ordinance or a resolution providing that
the board consists of five (5) members. If the board consists of five
(5) members, not more than three (3) members may be of the same
political 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 a
consolidated city or at least one (1) 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 is
located;
(3) not be actively engaged or employed in commercial
aeronautics;
(4) not hold any other governmental office (by appointment or
election) that has statutory fiscal or management review of the
board'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 of
aviation; and
(B) has statutory fiscal or management review of the board's
actions.
(b) This subsection does not apply to a county if the county
contains 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 is
located; and
(3) not be actively engaged or employed in commercial
aeronautics 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 noon
on the first Monday in January of the year of their appointment.
(b) On the expiration of the respective terms, the executive shall
appoint a commissioner or commissioners to fill the vacancies
caused by the expiration, and the commissioner or commissioners so
appointed hold office for a term of four (4) years, and until their
successors are appointed and qualified, and if a vacancy occurs in the
board by resignation or otherwise, the executive shall appoint a
commissioner for the remainder of the term. The executive of the
eligible entity may, at any time, remove a commissioner from office,
but only upon filing in writing with the clerk or other officer
performing 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 regular
meeting in January, one (1) of its members president, and another of
its members vice president to perform the duties of the president
during the absence or disability of the president. The eligible entity
shall provide a suitable office for the board in the entity, or, at the
option of the board, at the airport, at the expense of the department
of aviation, where its maps, plans, documents, records, and accounts
shall be kept, subject to public inspection at all reasonable times.
Before February 2 each year the board shall make a report to the
executive of its proceedings with a full statement of its receipts and
disbursements for the preceding year, including a report of the
acquisition of air navigation facilities and of other property that has
come under the control of the board, improvements made, general
character of the work of the board, and progress of aviation and air
commerce under its control. Money received by the board shall be
paid into the entity's treasury and credited to the department of
aviation, and all expenditures relating to the property and business
under the control of the department, except as otherwise provided,
may be provided for by special levy of taxes under section 7 of this
chapter, and shall be paid from the entity's treasury when ordered by
the board. A majority of the members constitutes a quorum, and an
action of the board must be taken by a majority of the members at a
regular or duly called special meeting. In case of a tie vote on any
question, the executive shall decide. The board shall fix a time for
holding regular meetings. Regular or special meetings shall be held
at the office of the board or at another public place in any county
where the board owns or operates an airport. Special meetings of the
board may be called at any time by its president, or by any two (2) of
its members, upon a written request to the secretary. Whenever in the
opinion of the president or of any two (2) members, a special
meeting is necessary, he or they shall cause the secretary to notify the
members by mailing written notice of the time of the meeting, at least
one (1) day before the meeting. A member may waive notice in
writing and the presence of a member at a special meeting is
considered 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's
performance of its duties and the exercise of its powers may be
executed in its name or in the name of the eligible entity, as the case
may be, by the president or vice president of the board and attested
by its secretary or assistant secretary. However, the board may by
resolution prescribe another method of execution.
(b) The board, on behalf of the eligible entity, exclusively has the
following powers:
(1) To acquire, establish, construct, improve, equip, maintain,
control, lease, and regulate municipal airports and landing fields
and other air navigation facilities, for the use of airplanes and
other aircraft, either inside or outside the corporate limits of the
entity, subject to statutory limitations; to acquire by lease (with
or without the option to purchase) airports, landing fields, air
navigation facilities, and any other structures, equipment, and
related improvements; and to erect, install, construct and
maintain at those airports facilities for the servicing of aircraft
and for the comfort and accommodation of air travelers and the
public; and the fiscal body of the entity may by ordinance
provide that any land suitable for these purposes that is owned
by 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, and
qualification of the board in an entity, the entity owns or
controls an airport, landing field, or other air navigation
facilities, then the exclusive control, management, and authority
over the airport, landing field, or other air navigation facilities
shall at once be transferred to the board without the adoption of
an ordinance; and the department, board, officer, or officers of
the entity, or other persons having possession or control, shall
at once turn over and deliver to the board all personal property,
records, books, plans, maps, and other papers and documents
relating to the aviation business of the entity. The unexpended
balance of any fund or funds appropriated by the entity for
aviation purposes becomes a part of the aviation fund of the
department of aviation. Before land may be purchased by an
entity for the establishment of an airport or landing field or an
airport or landing field may be established by an entity the
action or acquisition of land must be granted by the aeronautics
commission of Indiana.
(2) To elect a secretary from its membership or to employ a
secretary, and to employ superintendents, managers, engineers,
surveyors, attorneys, clerks, guards, mechanics, laborers, and all
employees the board considers expedient, and to prescribe and
assign their respective duties and authorities and to fix and
regulate their compensation, in accordance with the
appropriations made by the fiscal body of the entity. All
employees shall be selected irrespective of their political
affiliations.
(3) To make rules and regulations, consistent with law, for the
management and control of its airports, landing fields, air
navigation facilities, and other property under its control. The
board may require a special detail of police or hire guards to
execute the orders and enforce the rules and regulations.
(4) To acquire by lease the use of an airport or landing field for
aircraft pending the acquisition and improvement of an airport
or landing field. However, a lease must be approved by
ordinance or resolution of the fiscal body of the entity before it
takes effect.
(5) To manage and operate all airports, landing fields, and other
air navigation facilities acquired or maintained by the entity;
and to lease all or part of an airport, landing field, or any
buildings or other structures to fix, charge, and collect rentals,
tolls, fees, and charges to be paid for the use of the whole or a
part of the airports, landing fields, or other air navigation
facilities by aircraft landing there and for the servicing of the
aircraft; to construct public recreational facilities that will not
interfere with air operational facilities; to fix, charge, and
collect fees for public admissions and privileges; to make
contracts 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 navigation
facilities through lessees, through its own employees, or
otherwise. Contracts or leases for the maintenance, operation,
or use of the airport or any part of it may be made for a term not
exceeding fifteen (15) years, and may be extended for similar
terms of years, except that any parcels of the land of the airport
may be leased for any use connected with the operation and
convenience of the airport for an initial term not exceeding
forty (40) years, and may be extended for a period not to exceed
ten (10) years. If a person whose character, experience, and
financial responsibility has been determined satisfactory by the
board offers to erect a permanent structure that facilitates and
is consistent with the operation, use, and purpose of the airport,
on land belonging to the airport. A lease may be entered into for
a period not to exceed ninety-nine (99) years. However, the
fiscal body must pass an ordinance authorizing the board to
enter into such a lease. The board may not grant an exclusive
right for the use of a landing area under its jurisdiction.
However, this does not prevent the making of leases in
accordance with other provisions of this chapter. All contracts
and leases are subject to restrictions and conditions that the
board prescribes.
(6) To sell machinery, equipment, or material under the control
of the board belonging to the eligible entity that is not required
for aviation purposes. The proceeds shall be deposited with the
entity's treasurer or controller to the credit of the department of
aviation.
(7) To negotiate and execute contracts of sale or purchase,
lease, personal services, materials, supplies, equipment, or any
other transaction or business relative to an airport under the
board's control. However, whenever the board determines to sell
part or all of aviation lands or improvements owned by the
eligible entity, the sale must be in accordance with section 8 of
this chapter.
(8) To vacate all or parts of roads, highways, streets, or alleys
in land under control of the board in the manner provided by
statute.
(9) To approve, together with the fiscal body of the entity, any
state, county, city, or other highway, road, street, or other public
way, railroad, power line, or other right of way that may be laid
out or opened across an airport or in such proximity as to affect
the safe operation of the airport.
(10) To construct drainage and sanitary sewers with
connections and outlets as are necessary for the proper drainage
and maintenance of an airport or landing field acquired or
maintained under this chapter, including the necessary buildings
and improvements and for the public use of them, in the same
manner that the eligible entity may construct sewers and drains.
However, with respect to the construction of drains and sanitary
sewers beyond the boundaries of the airport or landing field, the
board shall proceed in the same manner as private owners of
property and may institute proceedings and negotiate with the
departments, bodies, and officers of the entity to secure the
proper orders and approvals.
(11) To order a public utility or public service corporation or
other person to remove or to install in underground conduits,
wires, cables, and power lines passing through or over the
airport or landing field or along the borders or within a
reasonable distance that may be determined to be necessary for
the safety of operations of the airport or landing field, upon
payment to the utility or other person due compensation for the
expense of the removal or reinstallation. The board must
consent to any franchise granted by state or local authorities for
the construction or maintenance of any railway, telephone,
telegraph, electric power, pipe, or conduit line upon, over, or
through land under the control of the board or within a
reasonable distance of land that is necessary for the safety of
operation. The board must also consent to the installation of
overhead electric power lines carrying a voltage of over
forty-four hundred (4,400) volts and having poles, standards, or
supports over thirty (30) feet in height within one-half (1/2)
mile of a landing area acquired or maintained under this
chapter.
(12) To contract with any other state agency or instrumentality
or any political subdivision for the rendition of services, the
rental or use of equipment or facilities, or the joint purchase and
use of equipment or facilities that are necessary for the
operation, maintenance, or construction of an airport operated
under 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, other
than those for professional services and those for the acquisition of
land, structures, easements, and rights-of-way, IC 5-22 and
IC 36-1-9.5 apply. In case of an emergency being declared by the
board, the board may purchase necessary materials under IC 5-22-10
without 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 of
estimated appropriations; reserve or depreciation account
Sec. 7. (a) The board may, in the name of the eligible entity, take
action to recover damages for the breach of an agreement, express or
implied, relating to the operation, control, leasing, management, or
improvement of the property under its control, to impose the
penalties for the violation of ordinances of the entity or of its rules
or regulations, and for injury to the personal or real property under
its control, and to recover possession of any such property. All rules
and regulations that the board adopts under this chapter shall be
published in accordance with IC 5-3-1.
(b) In addition to other taxes of the eligible entity, a tax may be
levied annually by the fiscal body for aviation purposes, and the
entity's treasurer shall collect the taxes as other taxes are collected.
When the taxes are collected they shall be deposited in the treasury
of the entity in a separate fund known as the "aviation fund". Only
one (1) tax levy for aviation purposes may be imposed upon the
assessed property in a county, city, or town unless that unit approves
by ordinance the levy of more than one (1) tax for aviation purposes.
The fiscal body of the entity may appropriate and transfer to the
aviation fund any sum or sums out of the general funds of the entity,
in accordance with statutes providing for additional appropriations
for the entities, and the fiscal body may borrow money and issue
bonds of the entity for aviation purposes and shall turn the proceeds
from the bonds into the aviation fund of the entity.
(c) The board of aviation commissioners shall prepare and file
with the executive of the eligible entity annually, at the time the
executive designates, a full and detailed estimate of the
appropriations required during the ensuing year for the maintenance
and operation of the airports and landing fields showing the number
of employees, including manager and secretary, and the amount of
salary and wages recommended for each. Expenditures for the
maintenance and operation of the airports or landing fields are
limited to the appropriations of money made in advance by the fiscal
body upon furnished estimates. Purchases and expenditures shall be
made and allowable claims shall be paid by the board in the same
manner as provided for the allowance of other claims against the
entity. The fiscal body of the entity may appropriate a sufficient
amount for the help, supplies, and equipment necessary for the
equipment and maintenance of the airports or landing fields. The
fiscal body of the entity may appropriate a sufficient amount as a
rotary fund to be used by the board for the purchase of fuels and
lubricants to be sold to the general public in the operation of the
airport. All funds received from the sale of fuels and lubricants
purchased with funds from a rotary fund shall be turned over at least
once a month to the treasurer of the entity to remain in the rotary
fund to be checked against by the board as other appropriations are
disbursed, for the sole purpose of purchasing fuels and lubricants for
sale to the public in the operation of the airport. At the end of each
fiscal year, the board shall make a detailed statement to the fiscal
body showing the amount of money received and paid over to the
treasurer to the credit of the rotary fund and also showing the amount
of fuels and lubricants on hand. If at the end of a fiscal year the
accumulated rotary fund plus value of inventory of fuels and
lubricants on hand exceeds the total previous appropriation to the
fund by twenty-five percent (25%), the excess shall be turned over
to the aviation fund. The board may incur obligations or liability of
any sort on behalf of the entity only if it falls within the
appropriation specifically made for that purpose. All money
remaining in the treasury to the credit of the board at the end of the
calendar year belongs to the general aviation fund to be used by the
board for aviation purposes. All funds received by the board from
whatever source, except funds received from the sale of fuels and
lubricants purchased by funds from the rotary fund, shall be
deposited in the treasury of the entity to the credit of the aviation
fund.
(d) The board may create a reserve or depreciation account for the
purpose of capital improvements or replacements out of operating
profits 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 the
aviation land or improvements owned by the eligible entity, it may
prepare an ordinance authorizing the sale and submit it to the fiscal
body of the entity. If the fiscal body passes the ordinance, the land or
improvements shall be sold as other lands or improvements of the
entity are sold, and the proceeds of the sale shall be deposited in the
aviation fund of the entity.
(b) If the board negotiates an agreement to sell trees situated in
woods or forest areas owned by the board, the trees are considered
to 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; zoning
jurisdiction
Sec. 9. (a) In order to provide free air space for the safe descent
and ascent of aircraft and for the proper and safe use of an airport or
landing field acquired or maintained under this chapter, the board
may, subject to approval and adoption by the fiscal body of the
eligible entity, establish and fix a restricted zone or zones for a
distance in any direction from the boundaries of the airport or
landing field so that no building or other structure is erected high
enough to interfere with the descent of an aircraft at the gliding angle
necessary for safety for the usual type of operation that is conducted
at the airport or landing field. The board may, in the name of the
entity, acquire by condemnation, upon the payment of due
compensation as provided in this chapter, the right to prevent the
erection of, and to require the removal of, all buildings, towers,
poles, wires, cables, other structures, and trees within the zone or
zones which interfere with the gliding angle or as much of any
structure or trees that interferes with the gliding angle. When so
condemned a permit issued by a department or office of the entity or
by any state or other authority for the erection of any structure inside
the zone or zones is effective only if approved by the board.
(b) Establishment of a restricted zone or zones outside of an
airport or landing field in connection with the condemnation of rights
in the land constitutes condemnation and the perpetual annihilation
of all rights of the owners of the property within the zone or zones to
erect or maintain any building or structure that will interfere with the
gliding angle. This result may also be accomplished by absolute
condemnation of the land, with perpetual and irrevocable free license
to use and occupy the land within the zone for all purposes except
the erection of buildings or other structures above the height
prescribed.
(c) The jurisdiction of each eligible entity is extended to the
promulgation, administering, and enforcement of airport zoning
regulations to protect the approaches of an airport that is owned by
the entity but located wholly or partially outside the corporate limits
of the entity. In case of conflict with any airport zoning or other
regulations promulgated by an entity, the regulations adopted under
this section prevail.
(d) The zoning jurisdiction granted in this section is exclusive
against jurisdiction granted by any other statute unless any other
statute specifically provides otherwise.
(e) All airport zoning regulations adopted under this chapter must
be reasonable and may not impose a requirement or restriction that
is not reasonably necessary to effectuate the purposes of this chapter.
In determining what regulations to adopt, each eligible entity and
joint airport zoning board shall consider, among other things, the
character of the flying operations expected to be conducted at the
airport, the nature of the terrain within the airport hazard area, the
character of the neighborhood, and the uses to which the property to
be 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 purpose
of carrying out this chapter;
(2) may award damages to landowners for real property rights
appropriated; and
(3) if the board cannot agree with the owners, lessees, or
occupants of real property selected by the board for the
purposes in this chapter, may procure the condemnation of the
property.
The board may proceed under IC 32-24-1. IC 32-24-1 applies to
airports, landing fields, and restricted zones adjoining them to the
extent that it is not inconsistent with this chapter.
(b) If the land on or across which it is necessary to establish and
fix 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 so
appropriating it, the public use or prior condemnation does not bar
the right of the board to condemn the use of the ground for aviation
purposes. Use by the board does not permanently prevent the use of
the land for the prior public use or by the corporation condemning or
appropriating it.
(c) In a proceeding prosecuted by the board to condemn the use
of land for purposes permitted by this chapter, the burden is upon the
board to show that its use will not permanently or seriously interfere
with the continued public use of the land or by the corporation
condemning it, or its successors. However, in the proceeding, the
board may require the removal or the burying beneath the surface of
the ground of wires, cables, power lines, or other structures within a
restricted zone established under this chapter. In a proceeding
prosecuted by the board to condemn or appropriate land, the use of
land, or rights in land for purposes permitted by this chapter:
(1) the board and all owners and holders of property or rights in
property sought to be taken are governed by and have the same
rights to procedure, notices, hearings, assessments, and
payments of benefits and awards as are prescribed by statute for
the appropriation and condemnation of real property; and
(2) the property owners have like powers and rights of
remonstrance and of appeals to the circuit or superior court in
the county in which the entity is located.
Appeals affect only the amount of the assessment of awards of the
person appealing and must conform to all laws relating to appeals.
The payment of all damages awarded for all lands, property, or rights
in them appropriated under this chapter shall be paid entirely out of
the funds under the control of the board.
(d) Notwithstanding this or any other statute or any charter, the
eligible entity may take possession of the property to be acquired at
any time after the filing of the petition describing the property in
condemnation proceedings. It is not precluded from abandoning the
condemnation of the property in any case where possession has not
been taken. The board:
(1) may acquire and use any land reasonably necessary for the
purposes of this chapter; and
(2) may not acquire or use land that is still being used and is
necessary for the purposes for which it was previously
condemned. 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 are
acquired or taken under this chapter, the board shall file and cause to
be recorded in the recorder's office of the county in which the land
is situated a description of the land sufficiently accurate for its
identification and a statement of the purpose for which it is required
or 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 necessity
and benefit; tax exemption of leasehold interests
Sec. 12. (a) The acquisition, establishment, construction,
improvement, equipment, maintenance, control, and operation of
municipal airports and landing fields for aircraft under this chapter
is considered to be a governmental function of general public
necessity and benefit and is for the use and general welfare of all the
people of Indiana, including the people residing in the eligible entity.
(b) Notwithstanding any other statute, the leasehold estate of any
lessee created pursuant to a lease by the board of its aviation related
property or facilities, together with any permanent structure erected
on 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 of
the board, sell the minerals or mineral rights or royalties, or grant
leases for the removal of a mineral in or under an airport or landing
field owned by the entity. They shall be sold or leased in the same
manner as land is sold or leased under this chapter, and the proceeds
derived from these sources shall be deposited with the treasurer of
the entity in the aviation fund of the entity and expended as provided
by statute for the proceeds of the sale of aviation lands. However, no
sale or lease for more than one (1) year may be made, except to the
highest and best bidder, after notice of sale or lease has been given
within the boundaries of the entity in accordance with IC 5-3-1, the
last publication having been made at least one (1) week before the
date 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 aviation
purposes and maintain, operate, manage, and control it and levy and
collect taxes for this purpose. Two (2) or more entities may
cooperate for this purpose by contributing to the total cost and
sharing the benefits and bearing the obligations accruing from it on
terms that they agree upon and evidence by contract. The joint
activity is subject to the same provisions and requirements provided
for such activity if carried on by any one (1) of the entities
individually, 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 increased
correspondingly. In case of failure of agreement between two (2) or
more entities upon petition filed by one (1) or more of the entities
involved, the aeronautics commission of Indiana, after investigation
and hearing, shall determine and prescribe reasonable and equitable
participation including representation on the joint governing board
and 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 determines
that the public interest and the interest of the entity will be served by
assisting another entity to exercise the powers granted by this
chapter, the former entity may furnish assistance by gift, or lease
with or without rental, of real property, by the donation, lease with
or without rental, or loan, of personal property, and by the
appropriation of monies that may be provided for by taxation or the
issuance of bonds in the same manner as funds might be provided for
the same purposes if the entity were exercising the powers granted
in 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 accumulates
funds that are derived from sources other than from the operation of
the airport and that are not needed for the operation or maintenance
of the airport, the board, upon a majority vote of its members, may
without notice transfer all or part of the funds to the general fund of
the entity if the funds were not derived from taxation. This section
does not apply to funds derived from lands leased from the federal
government. 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 board
under IC 8-21-8 may accept, receive, and receipt for federal monies
and other monies, either public or private, for the acquisition,
construction, enlargement, improvement, maintenance, equipment,
or operation of airports and other air navigation facilities, and sites
for them, and comply with federal law and rules and regulations
made under them for the expenditure of federal monies on airports
and other air navigation facilities.
(b) Subject to IC 8-21-8, the board has exclusive power on behalf
of the entity to submit to the proper state and federal agencies
applications for grants of funds for airport development and to make
or execute representations, assurances, and contracts and to enter into
agreements with state or federal agencies relative to the development
of 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 and
revenues; bonds; surplus
Sec. 18. (a) Subject to the approval of the fiscal body of the
eligible entity, the board may contract with any person for
construction, extensions, additions, or improvements of an aircraft
hangar or revenue producing building or facility located or to be
located on the airport of the entity, the cost of which is to be paid in
the manner authorized by this section.
(b) A contract made under this section must be authorized by
ordinance providing that the principal and interest of bonds issued
for the payment of the cost of the construction, extensions, additions,
or improvements shall be paid exclusively from the revenues and
receipts of the aircraft hangars or revenue producing buildings or
facilities, unless otherwise provided by this section.
(c) The fiscal body must, by ordinance, set aside the income and
revenues of the buildings or facilities into a separate fund, to be used
in the maintenance and operation and in payment of the cost of the
construction, extensions, additions, or improvements. The ordinance
must fix:
(1) the proportion of the revenues of the buildings or facilities
that is necessary for the reasonable and proper operation and
maintenance of them; and
(2) the proportion of the revenues that are to be set aside and
applied to the payment of the principal and interest of bonds.
The ordinance may provide for the proportion of the revenues that
are to be set aside as an adequate depreciation account.
(d) Whenever the board determines that there exists a surplus in
funds derived from the net operating receipts of a municipal airport,
then the board may recommend to the fiscal body that a designated
amount of the surplus fund be appropriated by special or general
appropriation to the "aviation revenue bond account" for the relief of
principal or interest of bonds issued under this section. However, this
surplus in funds may not include monies raised by taxation.
(e) The fiscal body may issue and sell bonds to provide for the
payment of costs of the following:
(1) Airport capital improvements, including the acquisition of
real property.
(2) Construction or improvement of revenue producing
buildings 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, payable
annually or semiannually, executed in the manner and payable at the
times not exceeding forty (40) years from the date of issue and at the
places as the fiscal body of the entity determines, which bonds are
payable only out of the "aviation revenue bond account" fund. The
bonds have in the hands of bona fide holders all the qualities of
negotiable instruments under law.
(f) In case any of the officers whose signatures or
countersignatures appear on the bonds or the coupons ceases to be
the officer before the delivery of the bonds to the purchaser, the
signature or countersignatures are nevertheless valid and sufficient
for all purposes, the same as if he had remained in office until the
delivery of the bonds. The bonds and their interest issued against an
"aviation revenue bond account" fund and the fixed proportion or
amount of the revenues pledged to the fund does not constitute an
indebtedness of the entity under the Constitution of the State of
Indiana.
(g) Each bond must state plainly upon its face that it is payable
only from the special fund, naming the fund and the ordinance
creating it, and that it does not constitute an indebtedness of the
entity under the Constitution of the State of Indiana. The bonds may
be issued either as registered bonds or as bonds payable to bearer.
Coupons and bearer bonds may be registered as to principal in the
holder's name on the books of the entity, the registration being noted
on the bond by the clerk or other designated officer, after which no
transfer is valid unless made on the books of the entity by the
registered holder and similarly noted on the bonds. Bonds so
registered as to principal may be discharged from the registration by
being transferred to bearer, after which it is transferable by delivery
but may be registered again as to principal. The registration of the
bonds as to the principal does not restrain the negotiability of the
coupon by delivery, but the coupons may be surrendered and the
interest made payable only to the registered holder of the bonds. If
the coupons are surrendered, the surrender and cancellation of them
shall be noted on the bond and then interest on the bond is payable
to the registered holder or order in cash or at his option by check or
draft payable at the place or one (1) of the places where the coupons
are payable.
(h) The bonds shall be sold in a manner and upon terms that the
fiscal body considers in the best interest of the entity.
(i) All bonds issued by an eligible entity under this section are
exempt from taxation for all purposes, except that the interest is
subject to the adjusted gross income tax.
(j) In fixing the proportion of the revenues of the building or
facility required for operation and maintenance, the fiscal body shall
consider the cost of operation and maintenance of the building or
facility and may not set aside into the special fund a greater amount
or proportion of the revenues and proceeds than are required for the
operation and maintenance. The sums set aside for operation and
maintenance shall be used exclusively for that purpose, until the
accumulation of a surplus results.
(k) The proportion set aside to the depreciation fund, if a
depreciation account or fund is provided for under this section, shall
be expended in remedying depreciation in the building or facility or
in 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 other
purpose.
(l) The fixed proportion that is set aside for the payment of the
principal and interest of the bonds shall, from month to month, as it
is accrued and received, be set apart and paid into a special account
in the treasury of the eligible entity, to be identified "aviation
revenue bond account," the title of the account to be specified by
ordinance. In fixing the amount or proportion to be set aside for the
payment of the principal and interest of the bonds, the fiscal body
may provide that the amount to be set aside and paid into the aviation
revenue bond account for any year or years may not exceed a fixed
sum, which sum must be at least sufficient to provide for the
payment of the interest and principal of the bonds maturing and
becoming payable in each year, together with a surplus or margin of
ten percent (10%).
(m) If a surplus is accumulated in the operating and maintenance
fund that is equal to the cost of maintaining and operating the
building or facility for the twelve (12) following calendar months,
the excess over the surplus may be transferred by the fiscal body to
either the depreciation account to be used for improvements,
extensions, or additions to property or to the aviation revenue bond
account fund, as the fiscal body designates.
(n) If a surplus is created in the aviation revenue bond account in
excess of the interest and principal of bonds, plus ten percent (10%),
becoming payable during the calendar, operating, or fiscal year then
current, together with the amount of interest or principal of bonds
becoming due and payable during the next calendar, operating, or
fiscal year, the fiscal body may transfer the excess over the surplus
to either the operating and maintenance account, or to the
depreciation account, as the fiscal body designates.
(o) All money received from bonds issued under this section shall
be applied solely for the purposes listed in subsection (e). There is
created a statutory mortgage lien upon buildings or facilities for
which bonds are issued in favor of the holders of the bonds and of
the coupons of the bonds. The buildings or facilities so constructed,
extended, or improved remain subject to the statutory mortgage lien
until payment in full of the principal and interest of the bonds.
(p) A holder of the bonds or of the attached coupons may enforce
the statutory mortgage lien conferred by this section, and may
enforce performance of all duties required by this section of the
eligible entity issuing the bond or of any officer of the entity,
including:
(1) the making and collecting of reasonable and sufficient rates
or rentals for the use or lease of the buildings or facilities, or
part of them established for the rent, lease, or use of the
buildings or facilities;
(2) the segregation of the revenues from the buildings or
facilities; and
(3) the application of the respective funds created by this
section.
(q) If there is a default in the payment of the principal or interest
of any of the bonds, a court having jurisdiction of the action may
appoint an administrator or receiver to administer, manage, or
operate the buildings or facilities on behalf of the entity, and the
bondholders, with power to:
(1) charge and collect rates or rentals for the use or lease of the
buildings or facilities sufficient to provide for the payment of
the operating expenses;
(2) pay any bonds or obligations outstanding against the
buildings or facilities; and
(3) apply the income and revenues thereof in accord with this
section 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 money
from any source for the payment of the costs of airport capital
improvements, including the acquisition of real property or
construction or improvement of revenue producing buildings or
facilities located on an airport and owned and operated by the
eligible entity, subject to the following requirements:
(1) The loan contract must be approved by resolution of the
board and the fiscal body of the eligible entity that established
the board.
(2) The loan contract must provide for the repayment of the
loan in not more than forty (40) years.
(3) The loan contract must state that the indebtedness is that of
the board, is payable solely from revenues of the board that are
derived from either airport operations or from revenue bonds,
and may not be paid by a tax levied on property located within
the district.
(4) The loan contract must be submitted to the department of
local government finance, which may approve, disapprove, or
reduce the amount of the proposed loan contract. The
department of local government finance must make a decision
on the loan contract within thirty (30) days after the contract is
submitted for review. The action taken by the department of
local government finance on the proposed loan contract is final.
(b) A loan contract issued under this chapter is issued for essential
public and governmental purposes. A loan contract, the interest on
the contract, the proceeds received by a holder from the sale of a loan
contract to the extent of the holder's cost of acquisition, proceeds
received upon redemption before maturity, proceeds received at
maturity, and the receipt of the interest and proceeds are exempt
from 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 or
landing field, and all other acts in connection with them, taken by the
entity under a prior statute, including all bonds issued, authorized, or
sold under that statute or any other statute, the proceeds of which
have been either used or designed for purposes stated in this chapter,
and all acts of officials relating to any of the matters stated, are
ratified 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 for
section 18, commits a Class B misdemeanor. As added by Acts 1980, P.L.8, SEC.73.
