*SB0468.1*
January 24, 2025
SENATE BILL No. 468
_____
DIGEST OF SB 468 (Updated January 23, 2025 11:44 am - DI 120)
Citations Affected: IC 36-10.
Synopsis: Midwest continental divide commission. Allows an eligible
county and city to establish by ordinance, a Midwest continental divide
commission and district for the purpose of acquiring, developing,
funding, constructing, equipping, owning, leasing, and financing
economic improvement projects in or serving the district.
Effective: July 1, 2025.
Niezgodski, Mishler, Rogers, Pol Jr.,
Randolph Lonnie M, Charbonneau
January 13, 2025, read first time and referred to Committee on Appropriations.
January 23, 2025, amended, reported favorably — Do Pass.
SB 468—LS 7217/DI 87 January 24, 2025
First Regular Session of the 124th General Assembly (2025)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in this style type. Also, the
word NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
between statutes enacted by the 2024 Regular Session of the General Assembly.
SENATE BILL No. 468
A BILL FOR AN ACT to amend the Indiana Code concerning local
government.
Be it enacted by the General Assembly of the State of Indiana:
1 SECTION 1. IC 36-10-16 IS ADDED TO THE INDIANA CODE
2 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2025]:
4 Chapter 16. Midwest Continental Divide Commission
5 Sec. 1. As used in this chapter, "airport authority" refers to an
6 airport authority established under IC 8-22-3.
7 Sec. 2. As used in this chapter, "board" refers to the commission
8 board appointed under section 19 of this chapter.
9 Sec. 3. As used in this chapter, "bonds" means, except as
10 otherwise provided, bonds, notes, or other evidences of
11 indebtedness issued by the commission.
12 Sec. 4. As used in this chapter, "commission" refers to the
13 Midwest continental divide commission which is the governing
14 body of the district.
15 Sec. 5. As used in this chapter, "commuter transportation
16 district" refers to a commuter transportation district established
17 under IC 8-5-15.
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1 Sec. 6. As used in this chapter, "development authority" refers
2 to a development authority established under IC 36-7.6-2-3.
3 Sec. 7. As used in this chapter, "district" refers to the Midwest
4 continental divide district designated under this chapter.
5 Sec. 8. As used in this chapter, "economic improvement project"
6 means the following:
7 (1) Planning or managing development or improvement
8 activities.
9 (2) Designing, landscaping, beautifying, constructing, or
10 maintaining common areas and attractions, public
11 improvements, a trail project, public or private ways
12 (including designing, constructing, or maintaining lighting),
13 infrastructure, utility facilities (and improvements and
14 equipment), water facilities (and improvements and
15 equipment), sewage facilities, rail projects, transportation
16 projects (and improvements and equipment), streets, or
17 sidewalks for a common area or public or private way.
18 (3) Promoting the district, commercial activity, or public
19 events.
20 (4) Supporting business recruitment and development.
21 (5) Providing security for public areas.
22 (6) Acquiring, constructing, or maintaining parking facilities.
23 (7) Constructing, rehabilitating, or repairing residential
24 property, including improvements related to the habitability
25 of the residential property.
26 (8) Acquiring, constructing, rehabilitating, or repairing
27 redevelopment projects, economic development facilities
28 described in IC 36-7-11.9-3, pollution control facilities
29 described in IC 36-7-11.9-9, or other local improvements.
30 Sec. 9. As used in this chapter, "eligible city" refers to a city that
31 includes or is immediately adjacent to a reservation site.
32 Sec. 10. As used in this chapter, "eligible county" refers to a
33 county that includes a reservation site.
34 Sec. 11. As used in this chapter, "eligible participant" refers to
35 a state agency, a development authority, a state or local body
36 corporate and politic, a tribal government of a reservation site, an
37 eligible county, an eligible city, and any other eligible unit, along
38 with any commission, authority, or building corporation of the
39 foregoing.
40 Sec. 12. As used in this chapter, "eligible unit" means a unit
41 within an eligible county.
42 Sec. 13. As used in this chapter, "land use and zoning plan"
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1 means the zoning overlay district adopted by the eligible county
2 with the formation of the district.
3 Sec. 14. As used in this chapter, "net income" means the gross
4 income after deducting:
5 (1) the necessary operational expenses of the board in
6 performing its duties (the expenses not to exceed the amount
7 budgeted or approved); and
8 (2) any reserve provided for in the budget.
9 Sec. 15. As used in this chapter, "reservation site" means the
10 trust and reservation lands acquired under section 6 of the Act to
11 Restore Federal Services to the Pokagon Band of Potawatomi
12 Indians, P.L.103-323, Sept. 21, 1994, 108 Stat. 2154.
13 Sec. 16. As used in this chapter, "trail project" refers to the
14 acquisition, design, construction, and maintenance of a trail system
15 designed to leverage the continental divide, the state parks and
16 reserves, and the other ecotourism assets located in the territories
17 of an eligible unit or a reservation site.
18 Sec. 17. The commission established under this chapter is a
19 separate body corporate and politic that shall carry out the
20 purposes of this chapter by acquiring, developing, funding,
21 constructing, equipping, owning, leasing, and financing economic
22 improvement projects in or serving the district.
23 Sec. 18. (a) The commission may be established by the legislative
24 body of an eligible:
25 (1) county; and
26 (2) city;
27 upon the adoption of an ordinance approved by both bodies
28 establishing the commission.
29 (b) The ordinance establishing the commission shall designate
30 the boundaries of the Midwest continental divide district, if the
31 legislative bodies determine the following:
32 (1) The district's designation would encourage collaboration
33 and support development across jurisdictions.
34 (2) The district's efforts enhance the quality of life, create
35 cultural amenities, and preserve key land and natural
36 resources in at least one (1) eligible unit, a reservation site,
37 and the surrounding region.
38 (3) The existence of a development plan for the district that
39 includes the development of a trail project and that identifies
40 the trail project's objectives in a clearly focused and
41 measurable fashion.
42 (4) The district's designation would catalyze new
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1 developments and attractions and improve tourism and the
2 tourism industry in the eligible county and Indiana.
3 (5) The district's efforts would enhance a state park and a
4 state nature preserve in the eligible county.
5 The commission, from time to time, may petition the legislative
6 body of the eligible county and eligible city, as applicable, to
7 expand the boundaries of the district inside the respective
8 jurisdictions.
9 (c) The ordinance establishing the commission shall also:
10 (1) approve a land use and zoning plan for the district; and
11 (2) provide that any change or variance in the land use and
12 zoning plan requires the approval of the commission.
13 (d) The commission shall notify the state budget agency in
14 writing promptly after the commission is established.
15 Sec. 19. (a) The commission is governed by the commission
16 board composed of five (5) members.
17 (b) The board shall consist of the following five (5) members:
18 (1) One (1) member appointed by the eligible county
19 executive.
20 (2) One (1) member appointed by the eligible city executive.
21 (3) One (1) member appointed by the speaker of the house of
22 representatives.
23 (4) One (1) member appointed by the president pro tempore
24 of the senate.
25 (5) One (1) member appointed by the Chair of the Pokagon
26 Band of the Potawatomi.
27 (c) All members are voting members.
28 (d) The term of a member is four (4) years. Legislative members
29 of the board serve a two (2) year term ending June 30 of an
30 odd-numbered year. However:
31 (1) the enabling ordinance may shorten the initial term of a
32 member to stagger the terms of the board; and
33 (2) a board member may be removed with or without cause at
34 any time by the entity who appointed the member.
35 (e) If a vacancy occurs on the board, the appointing authority
36 shall appoint a new member. Subject to subsection (d)(2), the
37 member serves for the remainder of the vacated term.
38 (f) Each member, before entering upon the member's duties,
39 shall take and subscribe an oath of office in the usual form. The
40 oath shall be endorsed upon the member's certificate of
41 appointment. The certificate shall be promptly filed with the
42 records of the board.
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1 (g) A member may not receive a salary but is entitled to
2 reimbursement for any expenses necessarily incurred in the
3 performance of the member's duties. Each legislative member of
4 the board is entitled to receive the same per diem, mileage, and
5 travel allowances established by the legislative council and paid to
6 members of the general assembly serving on interim study
7 committees. The allowances specified in this subsection shall be
8 paid by the legislative services agency from the amounts
9 appropriated for that purpose.
10 Sec. 20. (a) In January of each year, the board shall hold an
11 organizational meeting at which the board shall elect the following
12 officers from the members of the board:
13 (1) A chair.
14 (2) A vice chair.
15 (3) A secretary-treasurer.
16 (b) The affirmative vote of at least three (3) members of the
17 board is necessary to elect an officer.
18 (c) An officer serves from the date of the officer's election until
19 the officer's successor is elected and qualified.
20 Sec. 21. (a) The commission is a public agency for purposes of
21 IC 5-14-1.5 and IC 5-14-3. The board is a governing body for
22 purposes of IC 5-14-1.5.
23 (b) The board shall meet at least quarterly.
24 (c) The chair of the board or any two (2) members of the board
25 may call a special meeting of the board.
26 (d) Three (3) members of the board constitute a quorum.
27 (e) The affirmative votes of at least three (3) members of the
28 board are necessary to authorize any action of the commission.
29 (f) The eligible county and the eligible city should provide staff
30 support for the board.
31 Sec. 22. The board shall adopt the bylaws and rules that the
32 board considers necessary for the proper conduct of the board's
33 duties and the safeguarding of the commission's funds and
34 property.
35 Sec. 23. (a) The commission shall comply with IC 5-22 (public
36 purchasing), IC 36-1-12 (public work projects), and any applicable
37 federal bidding statutes and regulations. A purchasing agency (as
38 defined in IC 5-22-2-25) of a political subdivision or other eligible
39 participant may:
40 (1) assign or sell a lease for property to the commission; or
41 (2) enter into a lease for property with the commission;
42 at any price and under any other terms and conditions as may be
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1 determined by the political subdivision or eligible participant.
2 (b) The commission may purchase real property and shall first
3 approve the price to be offered to the owner of each parcel of
4 interest. For properties and interests in real property that:
5 (1) are not for sale at auction; or
6 (2) have a total purchase price (including land and structures,
7 if any) of at least seventy-five thousand dollars ($75,000);
8 the initial price to be offered may not exceed the average of two (2)
9 independent appraisals of fair market value procured by the
10 commission, except that appraisals are not required in transactions
11 with other governmental agencies. The price offered may not
12 exceed the average of the two (2) appraisals unless specifically
13 authorized by the commission or ordered by a court in
14 condemnation proceedings. Appraisals made under this subsection
15 are for the information of the commission and are not public
16 records or open for public inspection. Negotiations for the
17 purchase of property may be carried on directly by the
18 commission, by its employees, or by expert negotiators, but no
19 option, contract, or understanding related to the purchase of real
20 property is binding on the commission until approved and accepted
21 by the commission in writing. The commission may also authorize
22 the payment of a nominal fee to bind an option and as a part of the
23 consideration for conveyance may agree to pay the expense
24 incident to the conveyance and determination of the title of the
25 property. Payment for the property purchased shall be made when
26 and as directed by the commission, but only on delivery of proper
27 instruments conveying the title or interest of the owner to the
28 "Midwest Continental Divide Commission". All real property and
29 interests in real property acquired by the commission are free and
30 clear of all governmental liens, assessments, and other
31 governmental charges except for current property taxes, which
32 shall be prorated to the date of acquisition.
33 (c) Notwithstanding subsections (a) and (b), the commission
34 may, before the time referred to in this section, accept gifts of
35 property if the property is free and clear of all governmental liens
36 other than taxes, assessments, and other governmental charges.
37 The commission may, before the time referred to in this section,
38 take options on or contract for the acquisition of property if the
39 options and contracts are not binding on the commission until the
40 time referred to in this section and until money is available to pay
41 the consideration set out in the options or contracts.
42 (d) The provisions of this section do not apply to any
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1 improvements made by an entity with proceeds of revenue bonds
2 issued by the commission that are purchased, payable, or otherwise
3 secured by such entity or its designee pursuant to a financing
4 agreement with such entity.
5 Sec. 24. (a) The provisions of this section concerning
6 publication, bidding, and other procedures and requirements do
7 not apply to sales, leases, or other dispositions of real property to
8 eligible participants or Indiana nonprofit corporations or, if
9 constructed by a developer with revenue bond proceeds, to such
10 developer. The provisions of this section also do not prevent the
11 commission from renewing leases encumbering a property
12 acquired by the commission if the renewals do not collectively
13 exceed five (5) years.
14 (b) Before offering for sale or lease to the public any of the real
15 property acquired, the commission shall cause two (2) separate
16 appraisals of the sale value, or rental value in case of a lease, to be
17 made by independent appraisers. However, if the real property is
18 less than five (5) acres in size and the fair market value of the real
19 property or interest has been appraised by one (1) independent
20 appraiser at less than fifty thousand dollars ($50,000), the
21 commission may proceed with one (1) appraisal. In making
22 appraisals, the appraisers shall take into consideration the size,
23 location, and physical condition of the parcels, the advantages
24 accruing to the parcels under the development plan, and all other
25 factors having a bearing on the value of the parcels. The appraisals
26 are solely for the information of the commission, and are not open
27 for public inspection.
28 (c) Upon completion of the appraisals described in subsection
29 (b), the commission shall prepare an offering sheet showing the
30 parcels to be offered and the offering prices, which may not be less
31 than the average of the two (2) appraisals. Copies of the offering
32 sheet shall be furnished to prospective buyers on request. Maps
33 and plats showing the size and location of all parcels to be offered
34 shall also be kept available for inspection at the office of the
35 commission.
36 (d) The commission shall publish notice in accordance with
37 IC 5-3-1. The notice must state that at a designated time the
38 commission will open and consider written offers for the purchase
39 or lease of the real property being offered. In giving the notice it is
40 not necessary to describe each parcel separately, or to specify the
41 exact terms of disposition, but the notice must state:
42 (1) the general location of the parcels;
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1 (2) any limitations on the use to be made of the real property
2 offered; and
3 (3) that a bid submitted by a trust (as defined in
4 IC 30-4-1-1(a)) must identify each:
5 (A) beneficiary of the trust; and
6 (B) settlor empowered to revoke or change the trust.
7 (e) The notice shall provide when offers are due, and the
8 commission shall open the offers at a public meeting. These offers
9 may consist of consideration in the form of cash, other property, or
10 a combination of cash and other property. However, with respect
11 to property other than cash, the offer must be accompanied by
12 evidence of the property's fair market value that is satisfactory to
13 the commission in its sole discretion. All offers received shall be
14 opened at public meetings of the commission and shall be kept open
15 for public inspection.
16 (f) The commission may reject any bids and may make awards
17 to the highest and best bidders. In determining the best bids, the
18 commission shall take into consideration the following factors:
19 (1) The size and character of the improvements proposed to
20 be made by the bidder on the real property bid on.
21 (2) The bidder's plans and ability to improve the real property
22 with reasonable promptness.
23 (3) If the real property when improved will be sold or rented.
24 (4) The bidder's proposed sale or rental prices.
25 (5) The bidder's compliance with subsection (d)(3).
26 (6) Any factors that will assure the commission that the sale
27 or lease, if made, will further the execution of the
28 commission's development plan and best serve the interest of
29 the community, from the standpoint of both human and
30 economic welfare.
31 (g) The commission may contract with a bidder in regard to the
32 factors listed in subsection (f), and the contract may provide for the
33 deposit of surety bonds, the making of good faith deposits,
34 liquidated damages, the right of repurchase, or other rights and
35 remedies if the bidder fails to comply with the contract.
36 (h) After the opening and consideration of the written offers
37 filed in response to the notice, the commission may dispose of the
38 remainder of the available real property either at public sale or by
39 private negotiation carried on by the commission, the commission's
40 regular employees, or real estate experts employed for that
41 purpose. For a period of thirty (30) days after the opening of the
42 written offers, no sale or lease may be made at a price or rental less
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1 than that shown on the offering sheet, except in the case of sales or
2 rentals of ten (10) or more parcels to a purchaser or lessee who
3 agrees to improve the parcels immediately, but after that period
4 the commission may adjust the offering prices in the manner the
5 commission considers necessary to further the development plan.
6 (i) A conveyance under this section may not be made until the
7 agreed consideration has been paid, unless the commission passes
8 a resolution expressly providing that the consideration does not
9 need to be paid before the conveyance is made. In addition, such a
10 resolution may provide for a mortgage or other security. All deeds,
11 leases, land sale contracts, or other conveyances, and all contracts
12 and agreements, including contracts of purchase and sale and
13 contracts for advancements, loans, grants, contributions, or other
14 aid, shall be executed in the name of the "Midwest Continental
15 Divide Commission ", and shall be signed by the chair or vice chair
16 of the commission and attested by the commission's
17 secretary-treasurer. A seal is not required on these instruments or
18 any other instruments executed in the name of the commission.
19 (j) Once a property has been leased in accordance with this
20 section, such lease may be renewed, extended, or replaced by the
21 commission provided that the commission shall secure one (1) or
22 more appraisals to evidence the existing fair market lease rental to
23 the extent such renewals collectively exceed five (5) years from the
24 expiration or termination of the original lease term or each
25 extension or new lease interval entered into thereafter. The
26 commission shall consider the results of such appraisals before the
27 approval of such lease renewal or new lease.
28 Sec. 25. (a) The state board of accounts shall, pursuant to
29 IC 5-11-1-7 and IC 5-11-1-24, allow the commission to contract
30 with a certified public accountant for an annual financial audit of
31 the commission. The certified public accountant may not have a
32 significant financial interest in a project, facility, or service funded
33 by or leased by or to the commission. The certified public
34 accountant selected by the commission must be approved by the
35 state examiner and is subject to the direction of the state examiner
36 while performing an annual financial audit under this chapter.
37 (b) The certified public accountant shall present an audit report
38 not later than four (4) months after the end of each calendar year
39 and shall make recommendations to improve the efficiency of the
40 commission's operations. The certified public accountant shall also
41 perform a study and evaluation of internal accounting controls and
42 shall express an opinion on the controls that were in effect during
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1 the audit period.
2 (c) The commission shall pay the cost of the annual financial
3 audit under subsection (a). In addition, the state board of accounts
4 may at any time conduct an audit of any phase of the operations of
5 the commission. The commission shall pay the cost of any audit by
6 the state board of accounts.
7 (d) The state board of accounts may waive the requirement that
8 a certified public accountant perform an annual financial audit of
9 the commission for a particular year if the commission certifies to
10 the state board of accounts that the commission had no financial
11 activity during that year.
12 Sec. 26. (a) The commission shall do the following:
13 (1) Assist in the coordination of efforts concerning projects
14 that are located in or otherwise affect the district.
15 (2) Assist an eligible county, an eligible unit, a tribal
16 government of a reservation site, and a development authority
17 in coordinating tourism and economic development efforts
18 related to or that otherwise leverage economic improvement
19 projects in or serving the district.
20 (3) Provide for the design, development, construction,
21 operation, and maintenance of the trail project.
22 (b) The commission may do any of the following:
23 (1) Finance, improve, construct, reconstruct, renovate,
24 purchase, lease, acquire, and equip land and economic
25 improvement projects.
26 (2) Lease land or an economic improvement project.
27 (3) Finance and construct additional improvements to
28 economic improvement projects or other capital
29 improvements owned by the commission and lease them to or
30 for the benefit of an eligible participant.
31 (4) Acquire land or all or a part of one (1) or more economic
32 improvement projects from an eligible participant or an
33 Indiana nonprofit corporation by purchase or lease and lease
34 the land or economic improvement projects back to the
35 eligible participant or Indiana nonprofit, with any additional
36 improvements that may be made to the land or economic
37 improvement projects.
38 (5) Acquire all or a part of one (1) or more economic
39 improvement projects from an eligible participant by
40 purchase or lease to fund or refund indebtedness incurred on
41 account of the economic improvement projects to enable the
42 eligible participant to make a savings in debt service
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1 obligations or lease rental obligations or to get relief from
2 covenants that the eligible participant considers to be unduly
3 burdensome.
4 (6) Make loans, loan guarantees, and grants or provide other
5 financial assistance to or on behalf of the following for
6 economic improvement projects:
7 (A) A commuter transportation district.
8 (B) An airport authority.
9 (C) A regional transportation authority.
10 (D) An eligible county.
11 (E) An eligible unit.
12 (7) Provide funding for economic improvement projects.
13 (8) Hold, use, lease, rent, purchase, acquire, and dispose of by
14 purchase, exchange, gift, bequest, grant, condemnation
15 (subject to subsection (d)), lease, or sublease, on the terms and
16 conditions determined by the commission, any real or
17 personal property.
18 (9) After giving notice, enter upon any lots or lands for the
19 purpose of surveying or examining the lots or lands to
20 determine the location of an economic improvement project.
21 (10) Make or enter into all contracts and agreements
22 necessary or incidental to the performance of the
23 commission's duties and the execution of the commission's
24 powers under this chapter.
25 (11) Sue, be sued, plead, and be impleaded.
26 (12) Design, order, contract for, construct, reconstruct, and
27 renovate an economic improvement project.
28 (13) Appoint or contract for an executive director and employ
29 appraisers, real estate experts, engineers, architects,
30 surveyors, attorneys, accountants, auditors, clerks,
31 construction managers, and any consultants or employees that
32 are necessary or desired by the commission in exercising the
33 commission's powers or carrying out the commission's duties
34 under this chapter.
35 (14) Accept loans, grants, and other forms of financial
36 assistance from the federal government, the state government,
37 an eligible participant, or any other public or private source.
38 (15) Use the commission's funds to match federal grants or
39 make loans, loan guarantees, or grants to carry out the
40 commission's powers and duties under this chapter.
41 (16) Recommend any changes and approve any requested
42 variances to the land use and zoning plan for the district.
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1 (17) Except as prohibited by law, take any action necessary to
2 carry out this chapter.
3 (c) If the commission is unable to agree with the owners, lessees,
4 or occupants of any real property in the district selected for the
5 purposes of this chapter, the commission may proceed under
6 IC 32-24-1 to procure the condemnation of the property, subject to
7 the approvals set forth in subsection (d). The commission may not
8 institute a proceeding until it has adopted a resolution that:
9 (1) describes the real property sought to be acquired and the
10 purpose for which the real property is to be used;
11 (2) declares that the public interest and necessity require the
12 acquisition by the commission of the property involved; and
13 (3) sets out any other facts that the commission considers
14 necessary or pertinent.
15 The resolution is conclusive evidence of the public necessity of the
16 proposed acquisition.
17 (d) The commission may exercise the power of eminent domain
18 as provided in section 23 of this chapter and subsection (c)
19 concerning a particular property only if the acquisition of the real
20 property has been approved by:
21 (1) the legislative body of the eligible city if the property is
22 located inside the eligible city; or
23 (2) the legislative body of the eligible county if the property is
24 not located inside the eligible city.
25 Sec. 27. The commission may enter into an agreement with an
26 eligible participant or Indiana nonprofit corporation to:
27 (1) jointly equip, own, lease, and finance economic
28 improvement projects in or serving the district; or
29 (2) otherwise carry out the purposes of the commission.
30 Sec. 28. The commission shall before April 1 of each year issue
31 a report to the legislative council, budget committee, and the
32 legislative body and executive of the eligible county and the eligible
33 city concerning the operations and activities of the commission
34 during the preceding calendar year. The report to the legislative
35 council must be in an electronic format under IC 5-14-6.
36 Sec. 29. (a) The board shall establish and administer the
37 commission fund.
38 (b) The commission fund consists of the following:
39 (1) Amounts transferred to the fund by an eligible county or
40 eligible unit, including any payments required under an
41 interlocal agreement or other similar agreement between the
42 eligible county or eligible unit, or by another eligible
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1 participant. The transfers allowed by this subdivision from an
2 eligible county or eligible unit may be made from any local
3 revenue of an eligible county or eligible unit, as applicable,
4 including any department or instrumentality thereof, which
5 local revenue may include property tax revenue, tax
6 increment financing revenues, distributions, incentive
7 payments, money deposited in the eligible county's or eligible
8 unit's local major moves construction fund under IC 8-14-16,
9 money received by an eligible participant under a
10 development or interlocal agreement, or any other local
11 revenue that is not otherwise restricted by law or committed
12 for the payment of other obligations.
13 (2) Appropriations, grants, or other distributions made to the
14 fund by the state.
15 (3) Money received from the federal government.
16 (4) Gifts, contributions, donations, and private grants made
17 to the fund.
18 (c) On the date the commission issues bonds or lease obligations
19 for any purpose under this chapter, which are secured in whole or
20 in part by the commission fund, the board shall establish and
21 administer two (2) or more accounts within the commission fund.
22 The accounts must be the general account and the applicable bond
23 or lease rental account. To the extent the commission pledges
24 money transferred to the commission under subsection (b), the
25 applicable pledged funds shall be deposited consistent with the
26 applicable pledge resolution to secure the payment of applicable
27 obligations.
28 (d) All nonpledged money and revenue of the commission may
29 be deposited in the general account at the discretion of the board,
30 and such deposits may be used for any purpose authorized by this
31 chapter.
32 (e) The commission fund shall be administered by the board that
33 established the commission fund.
34 (f) Money in the commission fund shall be used by the
35 commission to carry out this chapter and does not revert to any
36 other fund.
37 Sec. 30. (a) The commission may issue bonds for the purpose of
38 obtaining money to pay the cost of:
39 (1) acquiring real or personal property, including existing
40 capital improvements;
41 (2) acquiring, constructing, improving, reconstructing, or
42 renovating one (1) or more economic improvement projects;
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1 or
2 (3) funding or refunding bonds issued under this chapter,
3 IC 36-7-14, IC 36-7-12, or other applicable law.
4 (b) The bonds are payable solely from:
5 (1) the lease rentals from the lease of the economic
6 improvement projects for which the bonds were issued,
7 insurance proceeds, and any other funds pledged or available;
8 and
9 (2) except as otherwise provided by law, revenue received by
10 the commission and amounts deposited in the commission
11 fund.
12 (c) The bonds must be authorized by a resolution of the board
13 of the commission that issues the bonds.
14 (d) The terms and form of the bonds must either be set out in
15 the resolution or in a form of trust indenture approved by the
16 resolution.
17 (e) The bonds must mature no later than twenty (20) years.
18 (f) A board may sell the bonds to the Indiana bond bank
19 established by IC 5-1.5-2-1 upon the terms determined by the
20 board and the Indiana bond bank.
21 (g) All money received from any bonds issued under this
22 chapter shall be applied solely to the payment of the cost of
23 acquiring, constructing, improving, reconstructing, or renovating
24 one (1) or more economic improvement projects, or the cost of
25 refunding or refinancing outstanding bonds, for which the bonds
26 are issued. The cost may include costs associated with economic
27 improvement projects, including:
28 (1) planning and development of equipment or a facility and
29 all buildings, facilities, structures, equipment, and
30 improvements related to the facility;
31 (2) acquisition of a site and clearing and preparing the site for
32 construction;
33 (3) equipment, facilities, structures, and improvements that
34 are necessary or desirable to make the project suitable for use
35 and operations;
36 (4) architectural, engineering, consultant, and attorney's fees;
37 (5) incidental expenses in connection with the issuance and
38 sale of bonds;
39 (6) reserves for principal and interest;
40 (7) interest during construction;
41 (8) financial advisory fees;
42 (9) insurance during construction;
SB 468—LS 7217/DI 87 15
1 (10) municipal bond insurance, debt service reserve
2 insurance, letters of credit, or other credit enhancement; and
3 (11) in the case of refunding or refinancing, payment of the
4 principal of, redemption premiums (if any) for, and interest
5 on the bonds being refunded or refinanced.
6 (h) The commission may not issue bonds or execute a lease
7 under this chapter or otherwise finance debt payable from funds
8 from an eligible county, an eligible unit, or any department or
9 instrumentality thereof unless:
10 (1) the commission enters into an interlocal or other similar
11 agreement with the eligible county, eligible entity, or any
12 department or instrumentality that is committing funds to an
13 economic improvement project to be supported by the bonds
14 or subject to the lease; and
15 (2) the fiscal body of each eligible county or eligible city that
16 is committing funds to the economic improvement project to
17 be supported by the bonds or subject to the lease approves the
18 agreement described in subdivision (1) by ordinance.
19 Sec. 31. This chapter contains full and complete authority for
20 the issuance of bonds. No law, procedure, proceedings,
21 publications, notices, consents, approvals, orders, or acts by the
22 commission or any other officer, department, agency, or
23 instrumentality of the state or of any political subdivision is
24 required to issue any bonds, except as prescribed in this chapter.
25 Sec. 32. (a) The commission may secure bonds issued under this
26 chapter by a trust indenture between the commission and a
27 corporate trustee, which may be any trust company or national or
28 state bank in Indiana that has trust powers.
29 (b) The trust indenture may:
30 (1) pledge or assign revenue received by the commission,
31 amounts deposited in the commission fund, and lease rentals,
32 receipts, and income from leased economic improvement
33 projects, but may not mortgage land or economic
34 improvement projects owned by the commission;
35 (2) contain reasonable and proper provisions for protecting
36 and enforcing the rights and remedies of the bondholders,
37 including covenants setting forth the duties of the commission
38 and board;
39 (3) set forth the rights and remedies of bondholders and
40 trustees; and
41 (4) restrict the individual right of action of bondholders.
42 (c) Any pledge or assignment made by the commission under
SB 468—LS 7217/DI 87 16
1 this section is valid and binding in accordance with IC 5-1-14-4
2 from the time that the pledge or assignment is made, against all
3 persons whether they have notice of the lien or not. Any trust
4 indenture by which a pledge is created or an assignment made need
5 not be filed or recorded. The lien is perfected against third parties
6 in accordance with IC 5-1-14-4.
7 Sec. 33. (a) Bonds issued under IC 36-7-12, IC 36-7-14, or other
8 applicable law may be refunded as provided in this section.
9 (b) An eligible participant or Indiana nonprofit corporation
10 may:
11 (1) lease all or a part of land or an economic improvement
12 project or projects to the commission, which may be at a
13 nominal lease rental with a lease back to the respective
14 eligible participant or Indiana nonprofit corporation,
15 conditioned upon the commission assuming the earlier bonds
16 issued and issuing its bonds to refund those bonds; and
17 (2) sell all or a part of land or an economic improvement
18 project or projects to the commission for a price sufficient to
19 provide for the refunding of those bonds and lease back the
20 land or economic improvement project or projects from the
21 commission.
22 Sec. 34. (a) Before a lease may be entered into by an eligible
23 participant under this chapter, the eligible participant must find
24 that the lease rental provided for is fair and reasonable.
25 (b) A lease of land or an economic improvement project from
26 the commission to an eligible participant or Indiana nonprofit
27 corporation:
28 (1) may not have a term exceeding twenty (20) years;
29 (2) may not require payment of lease rentals for a newly
30 constructed economic improvement project or for
31 improvements to an existing economic improvement project
32 until the economic improvement project or improvements to
33 the economic improvement project have been completed and
34 are ready for occupancy or use;
35 (3) may contain provisions:
36 (A) allowing the eligible participant or Indiana nonprofit
37 to continue to operate an existing economic improvement
38 project until completion of the acquisition, improvements,
39 reconstruction, or renovation of that economic
40 improvement project or any other economic improvement
41 project; and
42 (B) requiring payment of lease rentals for land, for an
SB 468—LS 7217/DI 87 17
1 existing economic improvement project being used,
2 reconstructed, or renovated, or for any other existing
3 economic improvement project;
4 (4) may contain an option to renew the lease for the same or
5 a shorter term on the conditions provided in the lease;
6 (5) must contain an option for the eligible participant or
7 Indiana nonprofit corporation to purchase the economic
8 improvement project upon the terms stated in the lease
9 during the term of the lease for a price equal to the amount
10 required to pay all indebtedness incurred on account of the
11 economic improvement project, including indebtedness
12 incurred for the refunding of that indebtedness;
13 (6) may be entered into before acquisition or construction of
14 an economic improvement project;
15 (7) may provide that the eligible participant shall agree to:
16 (A) pay any taxes and assessments on the economic
17 improvement project;
18 (B) maintain insurance on the economic improvement
19 project for the benefit of the commission;
20 (C) assume responsibility for utilities, repairs, alterations,
21 and any costs of operation; and
22 (D) pay a deposit or series of deposits to the commission
23 from any funds available to the eligible participant before
24 the start of the lease to secure the performance of the
25 eligible participant's obligations under the lease; and
26 (8) must provide that the lease rental payments by the eligible
27 participant shall be made from the commission fund
28 established under section 29 of this chapter and may provide
29 that the lease rental payments by the eligible participant shall
30 be made from:
31 (A) net revenues of the economic improvement project;
32 (B) any other funds available to the eligible participant; or
33 (C) both sources described in clauses (A) and (B).
34 Sec. 35. This chapter contains full and complete authority for
35 leases between the commission and an eligible participant. No law,
36 procedure, proceedings, publications, notices, consents, approvals,
37 orders, or acts by the commission or the eligible participant or any
38 other officer, department, agency, or instrumentality of the state
39 or any political subdivision is required to enter into any lease,
40 except as prescribed in this chapter.
41 Sec. 36. If the lease provides for an economic improvement
42 project or improvements to an economic improvement project to
SB 468—LS 7217/DI 87 18
1 be constructed by the commission, the plans and specifications
2 shall be submitted to and approved by all agencies designated by
3 law to pass on plans and specifications for such project or
4 improvements.
5 Sec. 37. The commission may enter into common wall (party
6 wall) agreements or other agreements concerning easements or
7 licenses. These agreements shall be recorded with the recorder of
8 the county in which the economic improvement project is located.
9 Sec. 38. (a) An eligible participant or Indiana nonprofit may
10 lease for a nominal lease rental, or sell to the commission, one (1)
11 or more economic improvement projects or parts of an economic
12 improvement project or land on which an economic improvement
13 project is located or is to be constructed.
14 (b) Any lease of all or a part of an economic improvement
15 project by an eligible participant or Indiana nonprofit to the
16 commission must be for a term equal to the term of the lease of
17 that economic improvement project back to the eligible participant
18 or Indiana nonprofit corporation.
19 (c) An eligible participant may sell property to the commission
20 for the amount the eligible participant determines to be in the best
21 interest of the eligible participant. The commission may pay that
22 amount from the proceeds of bonds of the commission.
23 Sec. 39. (a) All:
24 (1) property owned by the commission or lease interest of the
25 commission;
26 (2) revenue of the commission; and
27 (3) bonds issued by the commission, the interest on the bonds,
28 the proceeds received by a holder from the sale of bonds to
29 the extent of the holder's cost of acquisition, proceeds received
30 upon redemption before maturity, proceeds received at
31 maturity, and the receipt of interest in proceeds;
32 are exempt from taxation in Indiana for all purposes except the
33 financial institutions tax imposed under IC 6-5.5.
34 (b) A contractor may issue an exemption certificate under
35 IC 6-2.5-8-8 to a vendor when purchasing tangible personal
36 property to be incorporated into real property on land owned or
37 leased by the commission located in the district.
38 (c) All securities issued under this chapter are exempt from the
39 registration requirements of IC 23-19 and other securities
40 registration statutes.
41 Sec. 40. Bonds issued under this chapter are legal investments
42 for private trust funds and the funds of banks, trust companies,
SB 468—LS 7217/DI 87 19
1 insurance companies, building and loan associates, credit unions,
2 savings banks, private banks, loan and trust and safe deposit
3 companies, rural loan and savings associations, guaranty loan and
4 savings associations, mortgage guaranty companies, small loan
5 companies, industrial loan and investment companies, and other
6 financial institutions organized under Indiana law. The bonds are
7 also made securities that may be deposited with and received by all
8 public officers and bodies of Indiana or any agency or political
9 subdivision of Indiana and all municipalities and public
10 commissions for any purpose for which the deposit of bonds or
11 other obligations of Indiana is now or may be later authorized by
12 law.
13 Sec. 41. An action to contest the validity of bonds to be issued
14 under this chapter may not be brought after the time limitations
15 set forth in IC 5-1-14-13.
16 Sec. 42. (a) This section applies if an eligible county or an
17 eligible unit fails to make a transfer or part of a transfer required
18 by:
19 (1) section 29 of this chapter; or
20 (2) an interlocal or other similar agreement executed under
21 section 30(h) of this chapter that is required to satisfy the
22 eligible county's or eligible unit's obligation to contribute to
23 the satisfaction of outstanding bonds or other debt or lease of
24 the commission.
25 (b) The treasurer of state or treasurer of county, as applicable,
26 shall do the following:
27 (1) Withhold an amount equal to the amount of the transfer
28 or part of the transfer under section 29 of this chapter that
29 the eligible county or eligible unit failed to make from money
30 in the possession of the state that would otherwise be available
31 for distribution to the eligible county or eligible unit under
32 any other law.
33 (2) Pay the amount withheld under subdivision (1) to the
34 commission to satisfy the eligible county's or eligible unit's
35 obligations to the commission.
36 Sec. 43. (a) If there are bonds outstanding that have been issued
37 under this chapter by the commission and are not secured by a
38 lease, or if there are leases in effect under this chapter, the general
39 assembly covenants that it will not reduce the amount required to
40 be transferred under section 29 or 30(h) of this chapter from an
41 eligible county or eligible unit to the commission below an amount
42 that would produce one and twenty-five hundredths (1.25)
SB 468—LS 7217/DI 87 20
1 multiplied by the total of the highest annual debt service on the
2 bonds to their final maturity plus the highest annual lease
3 payments on the leases to their final termination date.
4 (b) The general assembly covenants that the general assembly
5 will not:
6 (1) repeal or amend this chapter in a manner that would
7 adversely affect owners of outstanding bonds, or the payment
8 of lease rentals, secured by the amounts pledged under this
9 chapter; or
10 (2) in any way impair the rights of owners of bonds of the
11 commission, or the owners of bonds secured by lease rentals,
12 secured by a pledge of revenues under this chapter;
13 except as otherwise set forth in subsection (a).
SB 468—LS 7217/DI 87 21
COMMITTEE REPORT
Mr. President: The Senate Committee on Appropriations, to which
was referred Senate Bill No. 468, has had the same under consideration
and begs leave to report the same back to the Senate with the
recommendation that said bill be AMENDED as follows:
Page 1, line 8, delete "20" and insert "19".
Page 2, delete line 42.
Page 3, delete lines 1 through 3.
Page 3, line 4, delete "14." and insert "13.".
Page 3, line 7, delete "15." and insert "14.".
Page 3, line 13, delete "16." and insert "15.".
Page 3, line 17, delete "17." and insert "16.".
Page 3, line 22, delete "18." and insert "17.".
Page 3, line 27, delete "19." and insert "18.".
Page 4, line 19, delete "20." and insert "19.".
Page 4, line 25, delete "of the house of representatives".
Page 4, line 27, delete "of the senate".
Page 4, delete lines 29 through 33, begin a new line block indented
and insert:
"(5) One (1) member appointed by the Chair of the Pokagon
Band of the Potawatomi.".
Page 5, line 17, delete "21." and insert "20.".
Page 5, line 27, delete "22." and insert "21.".
Page 5, line 38, delete "23." and insert "22.".
Page 5, line 42, delete "24." and insert "23.".
Page 7, line 12, delete "25." and insert "24.".
Page 9, line 35, delete "26." and insert "25.".
Page 10, line 19, delete "27." and insert "26.".
Page 12, line 25, delete "24" and insert "23".
Page 12, line 32, delete "28." and insert "27.".
Page 12, line 37, delete "29." and insert "28.".
Page 13, line 1, delete "30." and insert "29.".
Page 13, delete lines 35 through 42.
Page 14, delete lines 1 through 4.
Page 14, line 5, delete "(e)" and insert "(d)".
Page 14, line 9, delete "(f)" and insert "(e)".
Page 14, line 11, delete "(g)" and insert "(f)".
Page 14, line 14, delete "31." and insert "30.".
Page 14, line 36, delete "forty (40)" and insert "twenty (20)".
Page 15, line 38, delete "32." and insert "31.".
Page 16, line 2, delete "33." and insert "32.".
SB 468—LS 7217/DI 87 22
Page 16, line 26, delete "34." and insert "33.".
Page 16, line 41, delete "35." and insert "34.".
Page 17, line 5, delete "forty (40)" and insert "twenty (20)".
Page 18, line 5, delete "30" and insert "29".
Page 18, line 11, delete "36." and insert "35.".
Page 18, line 18, delete "37." and insert "36.".
Page 18, line 24, delete "38." and insert "37.".
Page 18, line 28, delete "39." and insert "38.".
Page 18, line 42, delete "40." and insert "39.".
Page 19, line 18, delete "41." and insert "40.".
Page 19, line 32, delete "42." and insert "41.".
Page 19, line 35, delete "43." and insert "42.".
Page 19, line 38, delete "30" and insert "29".
Page 19, line 40, "delete "31(h)" and insert "30(h)".
Page 20, line 5, delete "30" and insert "29".
Page 20, line 13, delete "44." and insert "43.".
Page 20, line 17, delete "30 or 31(h)" and insert "29 or 30(h)".
and when so amended that said bill do pass.
(Reference is to SB 468 as introduced.)
MISHLER, Chairperson
Committee Vote: Yeas 10, Nays 0.
SB 468—LS 7217/DI 87