Ind. Code ch. 36-7.5-4

Ind. Code ch. 36-7.5-4
in effect

Ind. Code § 36-7.5-4-1 Development authority revenue fund; accounts; use of money in the fund; debt service

Sec. 1. (a) The development board shall establish and administer a development authority revenue fund. (b) The development authority revenue fund consists of the following: (1) Riverboat admissions tax revenue, riverboat wagering tax revenue, or riverboat incentive payments received by a city or county described in IC 36-7.5-2-3(b) and transferred by the county or city to the fund. (2) Local income tax revenue dedicated to economic development purposes by a county or city and transferred by the county or city to the fund. (3) Amounts distributed under IC 8-15-2-14.7. (4) Food and beverage tax revenue deposited in the fund under IC 6-9-36-8. (5) Funds received from the federal government. (6) Appropriations to the fund by the general assembly. (7) Other local revenue appropriated to the fund by a political subdivision. (8) Amounts transferred to the fund under IC 36-7.5-4.5. (9) Gifts, donations, and grants to the fund. (c) The development board shall establish any accounts in the fund that are necessary or appropriate to carry out the powers and duties of the development authority. (d) The development board shall establish separate accounts for funding that are expressly committed to: (1) the mainline double tracking project; or (2) the West Lake corridor project. (e) A separate fund or account may be established to comply with the requirements of: (1) a grant received from any federal agency or department; (2) a grant received from the state; (3) state appropriations; (4) gifts, bequests, or donations; (5) the issuance of obligations; (6) the execution of leases; or (7) any other purpose. (f) Except as otherwise provided by law, agreement with holders of any obligations of the development authority, or subsection (g), all money transferred to the development authority revenue fund under subsection (b)(1), (b)(2), and (b)(4) shall be used only for the payment of or to secure the payment of obligations of an eligible political subdivision under a lease entered into by an eligible political subdivision and the development authority under this chapter. Money not pledged to payment of any existing or future leases or reasonably necessary for the purposes of this article may be returned by the treasurer of the development authority to the respective counties and cities that contributed the money to the development authority. (g) If the amount of money transferred to the development authority revenue fund under subsection (b)(1), (b)(2), and (b)(4) for deposit in the lease rental account in any one (1) calendar year is greater than an amount equal to: (1) one and twenty-five hundredths (1.25); multiplied by (2) the total of the highest annual debt service on any bonds then outstanding to their final maturity date, which have been issued under this article and are not secured by a lease, plus the highest annual lease payments on any leases to their final maturity, which are then in effect under this article; all or a portion of the excess may instead be deposited in the general account. (h) Except as otherwise provided by law or agreement with the holders of obligations of the development authority, all other money and revenues of the development authority may be used for any purpose authorized by this article. (i) The development authority revenue fund shall be administered by the development authority. (j) Money in the development authority revenue fund shall be used by the development authority to carry out this article and does not revert to any other fund. (k) This section includes full authority for the creation of any fund or account by the development authority and for an agreement with any person to hold or manage a fund or account. As added by P.L.214-2005, SEC.73. Amended by P.L.182-2009(ss), SEC.425; P.L.197-2016, SEC.142; P.L.229-2017, SEC.39; P.L.248-2017, SEC.6; P.L.86-2018, SEC.350; P.L.189-2018, SEC.171.

Ind. Code § 36-7.5-4-2 Revenue transfers to fund; rail projects

Sec. 2. (a) Except as provided in subsections (b) and (d), the fiscal officer of each city and county described in IC 36-7.5-2-3(b) shall each transfer three million five hundred thousand dollars ($3,500,000) each year to the development authority for deposit in the development authority revenue fund established under section 1 of this chapter. However, if Porter County ceases to be a member of the development authority and two (2) or more municipalities in the county have become members of the development authority as authorized by IC 36-7.5-2-3(h), the transfer of the local income tax revenue that is dedicated to economic development purposes that is required to be transferred under IC 6-3.6-11-6 is the contribution of the municipalities in the county that have become members of the development authority. (b) This subsection applies only if: (1) the fiscal body of the county described in IC 36-7.5-2-3(d) has adopted an ordinance under IC 36-7.5-2-3(d) providing that the county is joining the development authority; (2) the fiscal body of the city described in IC 36-7.5-2-3(d) has adopted an ordinance under IC 36-7.5-2-3(d) providing that the city is joining the development authority; and (3) the county described in IC 36-7.5-2-3(d) is an eligible county participating in the development authority. The fiscal officer of the county described in IC 36-7.5-2-3(d) shall transfer two million six hundred twenty-five thousand dollars ($2,625,000) each year to the development authority for deposit in the development authority revenue fund established under section 1 of this chapter. The fiscal officer of the city described in IC 36-7.5-2-3(d) shall transfer eight hundred seventy-five thousand dollars ($875,000) each year to the development authority for deposit in the development authority revenue fund established under section 1 of this chapter. (c) This subsection does not apply to Lake County, Hammond, Gary, or East Chicago. The following apply to the remaining transfers required by subsections (a) and (b): (1) Except for transfers of money described in subdivision (4)(D), the transfers shall be made without appropriation by the city or county fiscal body or approval by any other entity. (2) Except as provided in subdivision (3), each fiscal officer shall transfer eight hundred seventy-five thousand dollars ($875,000) to the development authority revenue fund before the last business day of January, April, July, and October of each year. Food and beverage tax revenue deposited in the fund under IC 6-9-36-8 is in addition to the transfers required by this section. (3) The fiscal officer of the county described in IC 36-7.5-2-3(d) shall transfer six hundred fifty-six thousand two hundred fifty dollars ($656,250) to the development authority revenue fund before the last business day of January, April, July, and October of each year. The county is not required to make any payments or transfers to the development authority covering any time before January 1, 2017. The fiscal officer of a city described in IC 36-7.5-2-3(d) shall transfer two hundred eighteen thousand seven hundred fifty dollars ($218,750) to the development authority revenue fund before the last business day of January, April, July, and October of each year. The city is not required to make any payments or transfers to the development authority covering any time before January 1, 2017. (4) The transfers shall be made from one (1) or more of the following: (A) Riverboat admissions tax revenue received by the city or county, riverboat wagering tax revenue received by the city or county, or riverboat incentive payments received from a riverboat licensee by the city or county. (B) Any local income tax revenue that is dedicated to economic development purposes under IC 6-3.6-6 and received under IC 6-3.6-9 by the city or county. (C) Any other local revenue other than property tax revenue received by the city or county. (D) In the case of a county described in IC 36-7.5-2-3(d) or a city described in IC 36-7.5-2-3(d), any money from the major moves construction fund that is distributed to the county or city under IC 8-14-16. (d) This subsection applies only to Lake County, Hammond, Gary, and East Chicago. The obligations of each city and the county under subsection (a) are satisfied by the distributions made by the state comptroller on behalf of each unit under IC 4-33-12-8 and IC 4-33-13-5(i). However, if the total amount distributed under IC 4-33 on behalf of a unit with respect to a particular state fiscal year is less than the amount required by subsection (a), the fiscal officer of the unit shall transfer the amount of the shortfall to the authority from any source of revenue available to the unit other than property taxes. The state comptroller shall certify the amount of any shortfall to the fiscal officer of the unit after making the distribution required by IC 4-33-13-5(i) on behalf of the unit with respect to a particular state fiscal year. (e) A transfer made on behalf of a county, city, or town under this section after December 31, 2018: (1) is considered to be a payment for services provided to residents by a rail project as those services are rendered; and (2) does not impair any pledge of revenues under this article because a pledge by the development authority of transferred revenue under this section to the payment of bonds, leases, or obligations under this article or IC 5-1.3: (A) constitutes the obligations of the northwest Indiana regional development authority; and (B) does not constitute an indebtedness of a county, city, or town described in this section or of the state within the meaning or application of any constitutional or statutory provision or limitation. (f) Neither the transfer of revenue as provided in this section nor the pledge of revenue transferred under this section is an impairment of contract within the meaning or application of any constitutional provision or limitation because of the following: (1) The statutes governing local taxes, including the transferred revenue, have been the subject of legislation annually since 1973, and during that time the statutes have been revised, amended, expanded, limited, and recodified dozens of times. (2) Owners of bonds, leases, or other obligations to which local tax revenues have been pledged recognize that the regulation of local taxes has been extensive and consistent. (3) All bonds, leases, or other obligations, due to their essential contractual nature, are subject to relevant state and federal law that is enacted after the date of a contract. (4) The state of Indiana has a legitimate interest in assisting the development authority in financing rail projects. (g) All proceedings had and actions described in this section are valid pledges under IC 5-1-14-4 as of the date of those proceedings or actions and are hereby legalized and declared valid if taken before March 15, 2018. As added by P.L.214-2005, SEC.73. Amended by P.L.47-2006, SEC.61; P.L.182-2009(ss), SEC.426; P.L.119-2012, SEC.217; P.L.192-2015, SEC.14; P.L.197-2016, SEC.143; P.L.248-2017, SEC.7; P.L.189-2018, SEC.172; P.L.10-2019, SEC.137; P.L.108-2019, SEC.247; P.L.293-2019, SEC.48; P.L.156-2020, SEC.145; P.L.165-2021, SEC.213; P.L.104-2022, SEC.199; P.L.9-2024, SEC.557.

Ind. Code § 36-7.5-4-2.5 Use of revenue to support rail projects and double tracking project; payments of revenue to development authority before certified distributions are made

Note: This version of section effective until 7-1-2028. See also following version of this section, effective 7-1-2028. Sec. 2.5. (a) This section applies to a unit that has previously: (1) entered into an interlocal cooperation or other similar agreement; (2) adopted an ordinance or resolution; or (3) taken any other action offering to support and finance: (A) a rail project or rail projects under this chapter; or (B) the double tracking project under IC 36-7.5-4.5. (b) The unit may use any legally available revenue to support and finance the projects described in subsection (a)(3), including additional revenue allocated each year for economic development under IC 6-3.6-6-9. (c) Additional revenue allocated for economic development to support and finance the projects under this section shall be paid by the treasurer of state to the treasurer of the northwest Indiana regional development authority under section 2 of this chapter before certified distributions are made to the county or any civil taxing unit in the county or counties in which the unit is located. (d) A transfer made on behalf of a unit under subsection (c) after December 31, 2018, is considered to be a payment for services provided to residents by a rail project as those services are rendered. (e) A pledge by the development authority of transferred revenue under this section to the payment of bonds, leases, or obligations under this article or IC 5-1.3: (1) constitutes the obligations of the northwest Indiana regional development authority; and (2) does not constitute an indebtedness of: (A) a unit described in this section; or (B) the state; within the meaning or application of any constitutional or statutory provision or limitation. (f) Neither the transfer of revenue nor the pledge of revenue transferred under this section is an impairment of contract within the meaning or application of any constitutional provision or limitation because of the following: (1) The statutes governing local income taxes, including the transferred revenue, have been the subject of legislation annually since 1973, and during that time the statutes have been revised, amended, expanded, limited, and recodified dozens of times. (2) Owners of bonds, leases, or other obligations to which local income tax revenues have been pledged recognize that the regulation of local income taxes has been extensive and consistent. (3) All bonds, leases, or other obligations, due to their essential contractual nature, are subject to relevant state and federal law that is enacted after the date of a contract. (4) The state of Indiana has a legitimate interest in assisting the northwest Indiana regional development authority in financing rail projects. (g) All proceedings had and actions described in this section are valid pledges under IC 5-1-14-4 as of the date of those proceedings or actions and are hereby legalized and declared valid if taken before March 15, 2018. As added by P.L.189-2018, SEC.173.

Ind. Code § 36-7.5-4-2.5 Use of revenue to support rail projects and double tracking project; payments of revenue to development authority before certified distributions are made

Revisor's Note: The effective date of this section, as amended by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028. Note: This version of section effective 7-1-2028. See also preceding version of this section, effective until 7-1-2028. Sec. 2.5. (a) This section applies to a unit that has previously: (1) entered into an interlocal cooperation or other similar agreement; (2) adopted an ordinance or resolution; or (3) taken any other action offering to support and finance: (A) a rail project or rail projects under this chapter; or (B) the double tracking project under IC 36-7.5-4.5. (b) The unit may use any legally available revenue to support and finance the projects described in subsection (a)(3), including general purpose revenue allocated each year for economic development under IC 6-3.6-6. (c) Additional revenue allocated for economic development to support and finance the projects under this section shall be paid by the treasurer of state to the treasurer of the northwest Indiana regional development authority under section 2 of this chapter before certified distributions are made to the county or any civil taxing unit in the county or counties in which the unit is located. (d) A transfer made on behalf of a unit under subsection (c) after December 31, 2018, is considered to be a payment for services provided to residents by a rail project as those services are rendered. (e) A pledge by the development authority of transferred revenue under this section to the payment of bonds, leases, or obligations under this article or IC 5-1.3: (1) constitutes the obligations of the northwest Indiana regional development authority; and (2) does not constitute an indebtedness of: (A) a unit described in this section; or (B) the state; within the meaning or application of any constitutional or statutory provision or limitation. (f) Neither the transfer of revenue nor the pledge of revenue transferred under this section is an impairment of contract within the meaning or application of any constitutional provision or limitation because of the following: (1) The statutes governing local income taxes, including the transferred revenue, have been the subject of legislation annually since 1973, and during that time the statutes have been revised, amended, expanded, limited, and recodified dozens of times. (2) Owners of bonds, leases, or other obligations to which local income tax revenues have been pledged recognize that the regulation of local income taxes has been extensive and consistent. (3) All bonds, leases, or other obligations, due to their essential contractual nature, are subject to relevant state and federal law that is enacted after the date of a contract. (4) The state of Indiana has a legitimate interest in assisting the northwest Indiana regional development authority in financing rail projects. (g) All proceedings had and actions described in this section are valid pledges under IC 5-1-14-4 as of the date of those proceedings or actions and are hereby legalized and declared valid if taken before March 15, 2018. As added by P.L.189-2018, SEC.173. Amended by P.L.68-2025, SEC.239.

Ind. Code § 36-7.5-4-3 Bond issues

Sec. 3. (a) The development authority may issue bonds for the purpose of obtaining money to pay the cost of: (1) acquiring real or personal property, including existing capital improvements; (2) acquiring, constructing, improving, reconstructing, or renovating one (1) or more projects; or (3) funding or refunding bonds issued under this chapter or IC 8-5-15, IC 8-22-3, or IC 36-9-3 or prior law. (b) The bonds are payable solely from: (1) the lease rentals from the lease of the projects for which the bonds were issued, insurance proceeds, and any other funds pledged or available; and (2) except as otherwise provided by law, revenue received by the development authority and amounts deposited in the development authority revenue fund. (c) The bonds shall be authorized by a resolution of the development board. (d) The terms and form of the bonds shall either be set out in the resolution or in a form of trust indenture approved by the resolution. (e) The bonds shall mature within forty (40) years. (f) The board shall sell the bonds only to the Indiana finance authority established by IC 5-1.2-3 upon the terms determined by the development board and the Indiana finance authority. (g) All money received from any bonds issued under this chapter shall be applied solely to the payment of the cost of acquiring, constructing, improving, reconstructing, or renovating one (1) or more projects, or the cost of refunding or refinancing outstanding bonds, for which the bonds are issued. The cost may include: (1) planning and development of equipment or a facility and all buildings, facilities, structures, equipment, and improvements related to the facility; (2) acquisition of a site and clearing and preparing the site for construction; (3) equipment, facilities, structures, and improvements that are necessary or desirable to make the project suitable for use and operations; (4) architectural, engineering, consultant, and attorney's fees; (5) incidental expenses in connection with the issuance and sale of bonds; (6) reserves for principal and interest; (7) interest during construction; (8) financial advisory fees; (9) insurance during construction; (10) municipal bond insurance, debt service reserve insurance, letters of credit, or other credit enhancement; and (11) in the case of refunding or refinancing, payment of the principal of, redemption premiums (if any) for, and interest on, the bonds being refunded or refinanced. As added by P.L.214-2005, SEC.73. Amended by P.L.1-2006, SEC.573; P.L.252-2015, SEC.49; P.L.189-2018, SEC.174.

Ind. Code § 36-7.5-4-4 Bonding; complete authority

Sec. 4. This chapter contains full and complete authority for the issuance of bonds. No law, procedure, proceedings, publications, notices, consents, approvals, orders, or acts by the development board or any other officer, department, agency, or instrumentality of the state or of any political subdivision is required to issue any bonds, except as prescribed in this article. As added by P.L.214-2005, SEC.73.

Ind. Code § 36-7.5-4-5 Bonding; security; trust indenture

Sec. 5. (a) The development authority may secure bonds issued under this chapter by a trust indenture between the development authority and a corporate trustee, which may be any trust company or national or state bank within Indiana that has trust powers. (b) The trust indenture may: (1) pledge or assign revenue received by the development authority, amounts deposited in the development authority revenue fund, and lease rentals, receipts, and income from leased projects, but may not mortgage land or projects; (2) contain reasonable and proper provisions for protecting and enforcing the rights and remedies of the bondholders, including covenants setting forth the duties of the development authority and development board; (3) set forth the rights and remedies of bondholders and trustees; and (4) restrict the individual right of action of bondholders. (c) Any pledge or assignment made by the development authority under this section is valid and binding in accordance with IC 5-1-14-4 from the time that the pledge or assignment is made, against all persons whether they have notice of the lien or not. Any trust indenture by which a pledge is created or an assignment made need not be filed or recorded. The lien is perfected against third parties in accordance with IC 5-1-14-4. As added by P.L.214-2005, SEC.73. Amended by P.L.189-2018, SEC.175.

Ind. Code § 36-7.5-4-6 Bond refunding; leases

Sec. 6. (a) Bonds issued under IC 8-5-15, IC 8-22-3, or IC 36-9-3 or prior law may be refunded as provided in this section. (b) An eligible political subdivision may: (1) lease all or a portion of land or a project or projects to the development authority, which may be at a nominal lease rental with a lease back to the eligible political subdivision, conditioned upon the development authority assuming bonds issued under IC 8-5-15, IC 8-22-3, or IC 36-9-3 or prior law and issuing its bonds to refund those bonds; and (2) sell all or a portion of land or a project or projects to the development authority for a price sufficient to provide for the refunding of those bonds and lease back the land or project or projects from the development authority. As added by P.L.214-2005, SEC.73. Amended by P.L.114-2022, SEC.39.

Ind. Code § 36-7.5-4-7 Leases; findings

Sec. 7. (a) Before a lease may be entered into by an eligible political subdivision under this chapter, the eligible political subdivision must find that the lease rental provided for is fair and reasonable. (b) A lease of land or a project from the development authority to an eligible political subdivision: (1) may not have a term exceeding forty (40) years; (2) may not require payment of lease rentals for a newly constructed project or for improvements to an existing project until the project or improvements to the project have been completed and are ready for occupancy or use; (3) may contain provisions: (A) allowing the eligible political subdivision to continue to operate an existing project until completion of the acquisition, improvements, reconstruction, or renovation of that project or any other project; and (B) requiring payment of lease rentals for land, for an existing project being used, reconstructed, or renovated, or for any other existing project; (4) may contain an option to renew the lease for the same or shorter term on the conditions provided in the lease; (5) must contain an option for the eligible political subdivision to purchase the project upon the terms stated in the lease during the term of the lease for a price equal to the amount required to pay all indebtedness incurred on account of the project, including indebtedness incurred for the refunding of that indebtedness; (6) may be entered into before acquisition or construction of a project; (7) may provide that the eligible political subdivision shall agree to: (A) pay any taxes and assessments on the project; (B) maintain insurance on the project for the benefit of the development authority; (C) assume responsibility for utilities, repairs, alterations, and any costs of operation; and (D) pay a deposit or series of deposits to the development authority from any funds legally available to the eligible political subdivision before the commencement of the lease to secure the performance of the eligible political subdivision's obligations under the lease; and (8) shall provide that the lease rental payments by the eligible political subdivision shall be made from the development authority revenue fund established by section 1 of this chapter and may provide that the lease rental payments by the eligible political subdivision shall be made from: (A) net revenues of the project; (B) any other funds available to the eligible political subdivision; or (C) both sources described in clauses (A) and (B). As added by P.L.214-2005, SEC.73. Amended by P.L.189-2018, SEC.176.

Ind. Code § 36-7.5-4-8 Leases; complete authority

Sec. 8. This chapter contains full and complete authority for leases between the development authority and an eligible political subdivision. No law, procedure, proceedings, publications, notices, consents, approvals, orders, or acts by the development authority or the eligible political subdivision or any other officer, department, agency, or instrumentality of the state or any political subdivision is required to enter into any lease, except as prescribed in this article. As added by P.L.214-2005, SEC.73.

Ind. Code § 36-7.5-4-9 Plans; approval

Sec. 9. If the lease provides for a project or improvements to a project to be constructed by the development authority, the plans and specifications shall be submitted to and approved by all agencies designated by law to pass on plans and specifications for public buildings. As added by P.L.214-2005, SEC.73.

Ind. Code § 36-7.5-4-10 Agreements; common wall; easements; licenses

Sec. 10. The development authority and an eligible political subdivision may enter into common wall (party wall) agreements or other agreements concerning easements or licenses. These agreements shall be recorded with the recorder of the county in which the project is located. As added by P.L.214-2005, SEC.73.

Ind. Code § 36-7.5-4-11 Leases or sale of projects or land to authority

Sec. 11. (a) An eligible political subdivision may lease for a nominal lease rental, or sell to the development authority, one (1) or more projects or portions of a project or land upon which a project is located or is to be constructed. (b) Any lease of all or a portion of a project by an eligible political subdivision to the development authority must be for a term equal to the term of the lease of that project back to the eligible political subdivision. (c) An eligible political subdivision may sell property to the development authority for the amount the eligible political subdivision determines to be in the best interest of the eligible political subdivision. The development authority may pay that amount from the proceeds of bonds of the development authority. As added by P.L.214-2005, SEC.73.

Ind. Code § 36-7.5-4-12 Option to purchase property

Sec. 12. If an eligible political subdivision exercises its option to purchase leased property, the eligible political subdivision may issue its bonds as authorized by statute. As added by P.L.214-2005, SEC.73.

Ind. Code § 36-7.5-4-13 Tax exemption

Sec. 13. (a) All: (1) property owned by the development authority; (2) revenues of the development authority; and (3) bonds issued by the development authority, the interest on the bonds, the proceeds received by a holder from the sale of bonds to the extent of the holder's cost of acquisition, proceeds received upon redemption before maturity, proceeds received at maturity, and the receipt of interest in proceeds; are exempt from taxation in Indiana for all purposes except the financial institutions tax imposed under IC 6-5.5. (b) All securities issued under this chapter are exempt from the registration requirements of IC 23-19 and other securities registration statutes. As added by P.L.214-2005, SEC.73. Amended by P.L.27-2007, SEC.35; P.L.79-2017, SEC.84.

Ind. Code § 36-7.5-4-14 Bonds; legal investments

Sec. 14. Bonds issued under this chapter are legal investments for private trust funds and the funds of banks, trust companies, insurance companies, building and loan associates, credit unions, savings banks, private banks, loan and trust and safe deposit companies, rural loan and savings associations, guaranty loan and savings associations, mortgage guaranty companies, small loan companies, industrial loan and investment companies, and other financial institutions organized under Indiana law. As added by P.L.214-2005, SEC.73.

Ind. Code § 36-7.5-4-15 Bonds; contesting validity

Sec. 15. An action to contest the validity of bonds to be issued under this chapter may not be brought after the time limitations set forth in IC 5-1-14-13. As added by P.L.214-2005, SEC.73.

Ind. Code § 36-7.5-4-16 Transfers; failure to make; duty of state treasurer or fiscal officer; deduct and transfer payment

Note: This version of section amended by P.L.229-2017, SEC.40. See also following version of this section amended by P.L.248-2017, SEC.8. Sec. 16. (a) This section applies if a political subdivision or city or county described in IC 36-7.5-2-3 fails to make a transfer or a part of a transfer required by section 2 of this chapter or fails to pay or transfer any amounts a political subdivision or a city or county described in IC 36-7.5-2-3 has agreed to pay or transfer to the development authority pursuant to the terms of any bond, note, debenture, warrant, contractual agreement, or any other promise or agreement. (b) The development authority shall notify the treasurer of state or the fiscal officer of a city or county described in IC 36-7.5-2-3 when a city, county, or political subdivision has failed to pay or transfer all or part of a payment or transfer due under this section. Upon receiving notice from the development authority, the treasurer of state or fiscal officer shall: (1) Deduct from amounts otherwise payable to the city or county under IC 4-33-13 or other political subdivision: (A) an amount equal to the amount of the transfer or part of the transfer under section 2 of this chapter that the city, county, or subdivision failed to make; and (B) an amount equal to any other amounts due to the development authority that the city, county, or political subdivision failed to make. (2) Pay the amount deducted under subdivision (1) to the development authority. (3) Notify the city, county, or political subdivision that the amount that would otherwise be available for distribution to the city, county, or political subdivision has been reduced by an amount necessary to satisfy all or part of the transfers required under section 2 of this chapter or any other amounts due to the development authority. (c) A deduction under subsection (b) must be made as follows: (1) First, from amounts otherwise payable to the city, county, or other political subdivision under IC 4-33-13. (2) Second, from local income tax distributions under IC 6-3.6-9 that would otherwise be distributed to the city, county, or other political subdivision under the schedules in IC 6-3.6-9-12 and IC 6-3.6-9-16. (3) Third, from any other revenues or money otherwise available for distribution from the city, county, or other political subdivision. As added by P.L.214-2005, SEC.73. Amended by P.L.192-2015, SEC.15; P.L.229-2017, SEC.40.

Ind. Code § 36-7.5-4-16 Transfers; failure to make; duty of state treasurer or local fiscal officer; deduction of amounts payable; payment to development authority

Note: This version of section amended by P.L.248-2017, SEC.8. See also preceding version of this section amended by P.L.229-2017, SEC.40. Sec. 16. (a) This section applies if a political subdivision or city or county described in IC 36-7.5-2-3 or a county participating in a rail project under IC 36-7.5-4.5 fails to make a transfer or a part of a transfer required by section 2 of this chapter or fails to pay or transfer any amounts a political subdivision or a city or county described in IC 36-7.5-2-3 or a county participating in a rail project under IC 36-7.5-4.5 has agreed to pay or transfer to the development authority pursuant to the terms of any bond, note, debenture, warrant, contractual agreement, or any other promise or agreement. (b) The development authority shall notify the treasurer of state or the fiscal officer of a city, a county described in IC 36-7.5-2-3, or a county participating in a rail project under IC 36-7.5-4.5 when a city, county, or political subdivision has failed to pay or transfer all or part of a payment or transfer due under this section. In the case of a county that is a cash participant county under IC 36-7.5-4.5 that is making payments directly to the Indiana finance authority, the Indiana finance authority shall notify the treasurer of state and the development authority of a default. Upon receiving notice from the development authority or the Indiana finance authority, the treasurer of state or fiscal officer shall: (1) Deduct from amounts otherwise payable to the city, county, or political subdivision: (A) an amount equal to the amount of the transfer or part of the transfer under section 2 of this chapter that the city, county, or political subdivision failed to make; and (B) an amount equal to any other amounts due to the development authority that the city, county, or political subdivision failed to make. (2) Pay the amount deducted under subdivision (1) to the development authority. (3) Notify the city, county, or political subdivision that the amount that would otherwise be available for distribution to the city, county, or political subdivision has been reduced by an amount necessary to satisfy all or part of the transfers required under section 2 of this chapter or any other amounts due to the development authority. (c) A deduction under subsection (b) must be made as follows: (1) First, from amounts otherwise payable to the city, county, or other political subdivision under IC 4-33-13. (2) Second, from local income tax distributions under IC 6-3.6-9 that would otherwise be distributed to the city, county, or other political subdivision under the schedules in IC 6-3.6-9-12 and IC 6-3.6-9-16. (3) Third, from any other revenues or money otherwise available for distribution from the city, county, or other political subdivision. As added by P.L.214-2005, SEC.73. Amended by P.L.192-2015, SEC.15; P.L.248-2017, SEC.8.

Ind. Code § 36-7.5-4-16.5 Failure of certain cities or counties to make a transfer; duties of state treasurer; deduction of amounts payable to city or county; payment to development authority

Sec. 16.5. (a) This section applies if the development board does the following: (1) Finds that a city or county described in IC 36-7.5-2-3 has, at any time before July 1, 2015, failed to make a transfer or a part of a transfer required by section 2 of this chapter. (2) Finds that the obligation of the city or county to pay the unpaid amount of the transfer or transfers has not been satisfied under section 16 of this chapter or by any other means. (3) Certifies to the treasurer of state the total amount of the arrearage attributable to the failure of the city or county to make a transfer or a part of a transfer required by section 2 of this chapter. (b) The treasurer of state shall do the following: (1) Deduct from amounts otherwise payable to the city under IC 4-33-13-5(a) or to the county under IC 4-33-12-6 an amount equal to: (A) the total amount certified under subsection (a)(3); plus (B) interest calculated in the same manner that interest on delinquent taxes is calculated under IC 6-8.1-10-1. (2) Pay the amount deducted under subdivision (1) to the development authority. As added by P.L.192-2015, SEC.16. Amended by P.L.149-2016, SEC.99.

Ind. Code § 36-7.5-4-17 Covenant with holders

Sec. 17. (a) If there are bonds outstanding that have been issued under this article and are not secured by a lease, or if there are leases in effect under this article, the general assembly also covenants that it will not reduce the amount required to be transferred from the counties and cities to the development authority under section 2 of this chapter below an amount that would produce one and twenty-five hundredths (1.25) multiplied by the total of the highest annual debt service on the bonds to their final maturity plus the highest annual lease payments on the leases to their final termination date. (b) The general assembly also covenants that it will not: (1) repeal or amend this article in a manner that would adversely affect owners of outstanding bonds, or the payment of lease rentals, secured by the amounts pledged under this chapter; or (2) in any way impair the rights of owners of bonds of the development authority, or the owners of bonds secured by lease rentals, secured by a pledge of revenues under this chapter; except as otherwise set forth in subsection (a). As added by P.L.214-2005, SEC.73.

Ind. Code § 36-7.5-4-18 Exclusive approval; development authority; financing a rail project

Sec. 18. Subject to IC 5-1.3, the development authority is the exclusive fiscal officer for and has final approval for financing a transportation project involving a rail project under this article. As added by P.L.248-2017, SEC.9. Amended by P.L.189-2018, SEC.177.

Ind. Code § 36-7.5-4-19 Obligations legalized and validated

Sec. 19. (a) All bonds, notes, evidences of indebtedness, leases, or other written obligations issued or executed by or in the name of the development authority under this chapter before April 30, 2019, are hereby legalized and declared valid. (b) Any pledge, dedication or designation of revenues securing the bonds, notes, evidences of indebtedness, leases, or other written obligations issued or executed by or in the name of the development authority under this chapter before April 30, 2019, are hereby legalized and declared valid. (c) The: (1) financing plan for the West Lake project (as described in IC 36-7.5-1-13.5) submitted to the United States Department of Transportation and the Federal Transit Administration; and (2) governance agreement between the development authority, the Indiana finance authority, and a commuter transportation district are hereby legalized and declared valid. (d) Any resolutions adopted, proceedings had, and actions taken under this chapter by the development authority before April 30, 2019, under which the bonds, notes, evidences of indebtedness, leases, or other written obligations were or will be issued or under which the pledge or dedication or designation of revenues was or will be granted, are hereby legalized and declared valid. As added by P.L.259-2019, SEC.15.

Ind. Code § 36-7.5-4-20 Transfer of money

Sec. 20. (a) Before July 1, 2019, the Lake County auditor shall transfer to the secretary-treasurer of the development authority all amounts held in the commuter rail extension and improvement fund established by an ordinance adopted by the fiscal body of Lake County on June 9, 2015. (b) On or before December 31, 2019, the Lake County auditor shall transfer to the secretary-treasurer of the development authority all amounts received after June 30, 2019, and deposited in the commuter rail extension and improvement fund described in subsection (a). As added by P.L.259-2019, SEC.16.

Ind. Code § 36-7.5-4-21 West Lake corridor project; failure to enter into a full funding grant agreement

Sec. 21. (a) If a full funding grant agreement is not entered into between the commuter transportation district and the federal government for the West Lake corridor project, all amounts received by the secretary-treasurer of the development authority under IC 6-3.6-11-5.5, including any interest earned on those amounts, shall be distributed by the secretary-treasurer of the development authority to each civil taxing unit in proportion to the amounts withheld and paid on behalf of the civil taxing unit under IC 6-3.6-11-5.5. (b) When a full funding grant agreement is entered into between the commuter transportation district and the federal government for a rail project, the development authority shall adopt a resolution taking notice of the executed full funding grant agreement, and the provisions of subsection (a) will not apply with respect to that rail project. As added by P.L.259-2019, SEC.17.

Ind. Code § 36-7.5-4-22 Lake County; commuter rail extensions and improvements; failure to file proper application for federal funding

Sec. 22. (a) Subject to subsection (b), if, before December 31, 2020, the proper applications for federal funding necessary and desired to complete commuter rail extensions and improvements described in an interlocal agreement entered into by Lake County units to support the extension and improvement of rail services have not been filed, after satisfaction of all obligations and liabilities that have been incurred, all resources on deposit to the credit of an account established by section 1(d) of this chapter must be distributed to each participating unit, entity, and nonentity donor based on the ratio of the contributions of each participating unit, entity, and nonentity donor to the total amount on deposit to the credit of the account. (b) If the purposes of an interlocal agreement entered into by Lake County units to support the extension and improvement of rail services are achieved or abandoned, after allowing for any encumbrances and other lawful payables, any remaining balance in an account established by section 1(d) of this chapter that is unobligated, unassigned, and unreserved must be distributed to each participating unit, entity, and nonentity donor based on the ratio of the contributions of each participating unit, entity, and nonentity donor to the total amount on deposit to the credit of the account. After making the distributions, the fund must be defeased. As added by P.L.259-2019, SEC.18.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://iga.in.gov/laws/2026/ic/titles/36Fetched: 10/17/2026

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