IC 8-21-9
Chapter 9. Jurisdiction Over Certain Airport Facilities
IC 8-21-9-1
Repealed
(Repealed by Acts 1980, P.L.74, SEC.434.)
IC 8-21-9-1.5
Purpose of chapter
Sec. 1.5. The purpose of this chapter is to:
(1) promote the public welfare and national security;
(2) serve the public interest, convenience, and necessity;
(3) promote air navigation and transportation (international,
national, state, and local) in and through Indiana;
(4) increase air commerce;
(5) promote the efficient, safe, and economical handling of air
commerce; and
(6) assure the inclusion of Indiana in national and international
programs of air transportation.
As added by P.L.1-1989, SEC.19.
IC 8-21-9-1.6
Liberal construction of chapter
Sec. 1.6. This chapter is necessary for the welfare of Indiana and
its inhabitants and shall be liberally construed to effect its purposes.
As added by P.L.1-1989, SEC.20.
IC 8-21-9-2
Definitions
Sec. 2. (a) As used in this chapter, the term:
(1) "Airport" means any location on land, water or upon any
building or other structure which is used for the landing and
taking off of aircraft, which provides for the shelter, supply or
care of aircraft, or a place used for receiving or discharging
passengers or cargo by air.
(2) "Airport facility" includes the following: lands, access
roads, parking facilities, railroad siding facilities, snow removal
or impacting equipment, fire and ambulance equipment, motor
vehicles, apparatus or equipment for disseminating weather
information, for signaling, for radio directional finding or for
radio or other electrical communication, any structure or
mechanism for guiding or controlling flight in the air or the
landing and take-off of aircraft or otherwise in aid of air
navigation, piers, docks, wharves, warehouses, sheds, transit
sheds, elevators, compressors, refrigeration, storage plants,
hangars, shops, buildings, structures and other facilities,
appurtenances and equipment necessary or useful in connection
with the operation of a modern airport and every kind of
terminal or storage structure or facility designed for use in the
handling, storage, loading or unloading of freight or passengers
at airports, and every kind of transportation facility designed for
use in connection with an airport. The term "airport facility"
includes the term "airport".
(3) "Commissioner" refers to the commissioner of the
department.
(4) "Cost", as applied to an airport facility, includes the cost of
construction; the cost of acquisition of all land, rights-of-way,
property, rights, easements and interests acquired by the
authority for the construction; the cost of demolishing or
removing buildings or structures on land so acquired, including
the cost of acquiring lands to which buildings or structures may
be moved; the cost of relocating public roads, railroads, public
utility facilities, including the cost of land or easements, the
cost of all machinery and equipment, financing charges, interest
prior to and during construction and for not exceeding two (2)
years after the estimated date of completion of construction;
cost of engineering, architectural and legal expenses, plans,
specifications, surveys, estimates of traffic and revenues; other
expenses necessary or incident to determining the feasibility or
practicability of constructing any airport facility; administrative
expenses; and other expenses as are necessary or incident to the
construction of an airport facility, the financing of the
construction, and the placing of the airport facility in operation.
The term includes the payment or reimbursement of obligations
incurred or loans or advances made by or to the department for
any of the foregoing. The cost of an airport facility may include,
instead of the cost of the acquisition of the land constituting the
site of such facility, the value of the land as determined by the
department. The proceeds of revenue bonds representing the
value of the land shall be deposited in the "Airport Fund".
(5) "Current expenses" means the department's reasonable and
necessary costs of maintaining, repairing and operating the
projects and includes all administrative expenses, insurance
premiums, engineering expenses relating to operation and
maintenance, legal expenses, charges of the paying agents, taxes
lawfully imposed on the department or its income or operations
or the property under its control and reserves for taxes and
payments in lieu of taxes, ordinary and usual expenses of
maintenance and repair, including expenses not annually
recurring, expenses incurred in the performance of the powers
under this chapter and other expenses required to be paid by the
department under a trust agreement securing revenue bonds or
by law. The term does not include any allowance for
depreciation or transfers to the credit of the sinking fund for the
revenue bonds.
(6) "Department" refers to the Indiana department of
transportation.
(7) "Existing airport facilities" means the properties which are
acquired by the department from public or private entities under
this chapter.
(8) "Project" means the existing airport facilities or any airport
facility acquired, constructed, controlled or operated by the
department, together with all property, rights, easements and
interest appertaining to the facility, acquired for the
construction or operation of the facility.
(b) Other words and phrases when used in this chapter shall, for
the purposes of this chapter, have the meanings found in IC 8-21-1,
except as otherwise provided in this chapter.
(Formerly: Acts 1971, P.L.105, SEC.2.) As amended by Acts 1980,
P.L.74, SEC.342; P.L.18-1990, SEC.158.
IC 8-21-9-3
Repealed
(Repealed by Acts 1980, P.L.74, SEC.434.)
IC 8-21-9-4
Repealed
(Repealed by Acts 1980, P.L.74, SEC.434.)
IC 8-21-9-5
Repealed
(Repealed by Acts 1980, P.L.74, SEC.434.)
IC 8-21-9-6
Repealed
(Repealed by Acts 1980, P.L.74, SEC.434.)
IC 8-21-9-7
Repealed
(Repealed by Acts 1980, P.L.74, SEC.434.)
IC 8-21-9-8
Repealed
(Repealed by Acts 1980, P.L.74, SEC.434.)
IC 8-21-9-9
Repealed
(Repealed by Acts 1980, P.L.74, SEC.434.)
IC 8-21-9-10
Repealed
(Repealed by Acts 1980, P.L.74, SEC.434.)
IC 8-21-9-11
Repealed
(Repealed by Acts 1980, P.L.74, SEC.434.)
IC 8-21-9-12
Jurisdiction; powers and duties
Sec. 12. (a) The department has jurisdiction only over two (2)
major new continental or intercontinental airport facilities designed
and constructed to serve a part of Indiana or adjacent states.
(b) The department may designate the location and character of all
airport facilities which the department may hold, own, or over which
it is authorized to act and to regulate all matters related to the
location and character of the airport facilities.
(c) The department may designate the location and establish,
limit, and control points of ingress to and egress from any airport
property.
(d) The department may lease to others for development or
operation the parts of any airport or airport facility on terms and
conditions as the department considers necessary.
(e) The department may make directly, or through hiring of expert
consultants, investigations, and surveys of whatever nature,
including, but not limited to, studies of business conditions, freight
rates, airport services, physical surveys of the conditions of
structures, and the necessity for additional airports or for additional
airport facilities for the development and improvement of commerce
and for the more expeditious handling of commerce, and to make
studies, surveys, and estimates as are necessary for the execution of
its powers under this chapter.
(f) The department may make and enter into all contracts,
undertakings, and agreements necessary or incidental to the
performance of its duties and the execution of its powers under this
chapter. When the cost of any such contract for construction, or for
the purchase of equipment, materials or supplies, involves an
expenditure of more than five thousand dollars ($5,000), the
department shall make a written contract with the lowest and best
bidder after advertisement for not less than two (2) consecutive
weeks in a newspaper of general circulation in Marion County,
Indiana, and in such other publications as the department shall
determine. Such notice shall state the general character of the
materials to be furnished, the place where plans and specifications
therefor may be examined, and the time and place of receiving bids.
Each bid shall contain the full name of every person or company
interested in it and shall be accompanied by a sufficient bond or
certified check on a solvent bank that if the bid is accepted a contract
will be entered into and the performance of its proposal secured. The
department may reject any and all bids. A bond with good and
sufficient surety, as shall be approved by the department, shall be
required of all contractors in an amount equal to at least fifty percent
(50%) of the contract price conditioned upon the faithful
performance of the contract.
(g) The department may fix and revise periodically and charge
and collect equitable rates, fees, rentals, or other charges for the use
of any airport facility or airport facilities under its control, which
rates, fees, rentals, or other charges shall be in amounts reasonably
related to the cost of providing and maintaining the particular airport
facility or airport facilities for which these rates, fees, rentals, and
other charges are established.
(h) The department may make application for, receive, and accept
from any federal agency, grants for or in aid of the planning,
construction, operating, or financing of any airport facility, and to
receive and accept contributions from any source of either money,
property, labor, or other things of value, to be held, used and applied
for the purposes for which made, in each case on such terms and
conditions as the department considers necessary or desirable. The
department may enter into and carry out contracts and agreements in
connection with this subsection.
(i) The department may appear in its own behalf before boards,
commissions, departments, or other agencies of the federal
government or of any state or international conference and before
committees of the Congress of the United States and the general
assembly of Indiana in all matters relating to the designs,
establishment, construction, extension, operations, improvements,
repair, or maintenance of any airport or airport facility operated and
maintained by the department under this chapter, and to appear
before any federal or state agencies in matters relating to air rates,
airport services and charges, differentials, discriminations, labor
relations, trade practices, and all other matters affecting the physical
development of and the business interest of the department and those
it serves.
(j) The department may contract for the services of consulting
engineers, architects, attorneys, accountants, construction and
financial experts, and such other individuals as are necessary in its
judgment. However, the employment of an attorney shall be subject
to such approval of the attorney general as may be required by law.
(k) The department may do all things necessary and proper to
promote and increase commerce within its territorial jurisdiction,
including cooperation with civic, technical, professional, and
business organizations and associations, the office of tourism
development, and the Indiana economic development corporation.
(l) The department may establish and maintain a traffic bureau for
the purpose of advising the department as to the airport's competitive
economic position with other airports.
(m) The department may contract for the use of any license,
process, or device, whether patented or not, which the department
finds is necessary for the operation of any airport facility, and may
permit the use thereof by any lessee on such terms and conditions as
the department may determine. The cost of such license, process, or
device may be included as part of the cost of the airport facility.
(n) The department may issue airport revenue bonds and airport
revenue funding bonds.
(o) The department may do all acts and things necessary or proper
to carry out the powers expressly granted in this chapter.
(Formerly: Acts 1971, P.L.105, SEC.2; Acts 1973, P.L.73, SEC.1;
Acts 1975, P.L.34, SEC.8.) As amended by Acts 1980, P.L.74,
SEC.343; Acts 1981, P.L.41, SEC.60; P.L.4-2005, SEC.116;
P.L.229-2005, SEC.7.
IC 8-21-9-13
Regulations
Sec. 13. The department may adopt such rules as it may deem
advisable for the control and regulation of any airport or airport
facility or traffic on any airport or airport facility, for the protection
of and preservation of property under its jurisdiction and control, and
for the maintenance and preservation of good order within the
property under its control. However, such rules must provide that
public officers shall be afforded ready access, while in performance
of their official duty, to all property under the jurisdiction or control
of the department without the payment of tolls.
(Formerly: Acts 1971, P.L.105, SEC.2.) As amended by Acts 1980,
P.L.74, SEC.344; P.L.1-2009, SEC.72.
IC 8-21-9-14
Promotion of airport facilities; cooperation with federal
government; title to airport property
Sec. 14. The department shall prepare sketches, plans and
descriptive material relating to any such airport, or airport facility, as
in its discretion may seem feasible; to compile data and prepare
literature as to the necessity or advisability thereof; and to do other
acts and things which it considers necessary to promote any such
airport or airport facility and deems to be in the public interest; to
carry on in its discretion negotiations and enter into agreements and
contracts with the federal government or agencies thereof for or
relating to the building and construction of any airport or airport
facility to be located within the State of Indiana; to locate and
acquire a suitable site for any such airport or airport facility; and to
construct, develop, maintain and operate the same in cooperation
with the federal government, or any agency thereof, or otherwise, in
such manner and on such terms as will, in the discretion of the
department, best serve the commercial, industrial and agricultural
interests of the state. The title to all property included in any such
airport or airport facility shall be taken in the name of the state of
Indiana.
(Formerly: Acts 1971, P.L.105, SEC.2.) As amended by Acts 1980,
P.L.74, SEC.345.
IC 8-21-9-15
Acquisition and disposition of land
Sec. 15. (a) If the department considers a purchase expedient, the
department may acquire by purchase any land, property, rights,
rights-of-way, franchises, easements, and other interest in lands,
including lands under water and riparian rights, as it considers
necessary or convenient for the construction and operation of any
airport or airport facility.
(b) The appropriation and condemnation of lands and easements
in lands authorized by this chapter must be made under the terms and
conditions of and in the manner prescribed in IC 32-24-1.
(c) The department shall take title in the name of the state of
Indiana.
(d) The department may:
(1) sell, transfer, and convey any land or any interest in land
acquired, or any part of the land or interest in land if the land or
interest in land is no longer needed for such purposes; and
(2) transfer and convey any lands or interests in lands as may be
necessary or convenient for the construction and operation of
any airport or airport facility, or as otherwise required under
this chapter. However, a sale may not be made without the
approval of the governor first obtained and at not less than the
appraised value established by three (3) independent appraisers
appointed by the governor.
The department may restrict the use of any land sold by it and
provide for a reversion to the department if the land is not used for
the purpose represented by the purchaser. Provisions concerning
restrictions and reversions must be set out in appropriate covenants
in the deeds of conveyance. The deeds must be approved by the
governor.
(e) The department may lease to others for development or use
any part of the land owned by the department, together with any
airport facility on the land or to be constructed on the land, on terms
the department determines to be advantageous. Leases covering a
period of more than four (4) years must be approved by the governor.
Leases of lands under the jurisdiction or control of the department
may be made only for uses and purposes as are calculated to
contribute to the growth and development of the airport and airport
facilities under the jurisdiction or control of the department.
(f) If the department leases to others for a period of more than
four (4) years an airport facility financed by the issuance of revenue
bonds, the rental must be in an amount at least sufficient to pay the
interest on and principal of the amount of the bonds representing the
cost of the airport facility to the extent the interest and principal is
payable during the term of the lease. The lease must provide for the
payment by the lessee of all costs of maintenance, repair, and
insurance.
(g) The department may acquire or purchase an existing airport
facility if:
(1) the facility is located on land acquired for the purpose of
constructing a continental or an intercontinental airport; or
(2) operation of the airport would be detrimental to the safe use
of the airport facility.
(h) The department may enter into contracts, leases and other use
agreements with air carriers, airport concessionaires, airport tenants,
and other airport users under agreed terms, conditions, charges, and
fees for a term not exceeding twenty (20) years. However, lease
agreements for land rental may be entered into for a term not
exceeding ninety-nine (99) years if the lessee will use the leased land
for the construction of buildings or other facilities at the lessee's
expense.
(Formerly: Acts 1971, P.L.105, SEC.2.) As amended by Acts 1980,
P.L.74, SEC.346; P.L.2-2002, SEC.44.
IC 8-21-9-16
Eminent domain
Sec. 16. The department may acquire by appropriation, under the
provisions of the eminent domain law of the state, any land,
including lands under water and riparian rights, property, rights,
rights-of-way, franchises, easements or other property necessary or
proper for the construction or the efficient operation of any airport
or airport facility. The department is empowered to exercise such
powers of eminent domain as may be conferred upon the authority by
an Act of Congress of the United States now in force, or which may
hereafter be enacted. Title to the property condemned shall be taken
in the name of the state of Indiana. Nothing herein shall authorize the
department to acquire by appropriation property or facilities
belonging to any public utility or to a common carrier engaged in
interstate commerce, which property or facilities are required for the
proper and convenient operation of such public utility or common
carrier, unless provision is made for the restoration, relocation or
duplication of such property or facilities elsewhere at the sole cost of
the authority excepting, however, cases in which such equipment or
facilities are located within the limits of existing highways or public
thoroughfares.
(Formerly: Acts 1971, P.L.105, SEC.2.) As amended by Acts 1980,
P.L.74, SEC.347.
IC 8-21-9-17
Political subdivisions authorized to transfer real property
Sec. 17. All counties, cities, towns, townships and other political
subdivisions and all public agencies and commissions of the state,
notwithstanding any contrary provision of law, are hereby authorized
and empowered to lease, lend, grant, or convey to the department at
its request upon such terms and conditions as the proper authorities
of such counties, cities, towns, townships, other political
subdivisions or public agencies and commissions of the state may
deem reasonable and fair and without the necessity for an
advertisement, order of court or other action or formality, other than
the regular and formal action of the authorities concerned, and any
real property owned by any such municipality or governmental
subdivision which may be necessary or convenient to the effectuation
of the authorized purposes of the department.
(Formerly: Acts 1971, P.L.105, SEC.2.) As amended by Acts 1980,
P.L.74, SEC.348.
IC 8-21-9-18
Relocation or removal of road, railroads, or public utility facilities
Sec. 18. If the department finds it necessary to change the location
of any portion of any public road, railroad or public utility facility,
it shall cause the same to be reconstructed at such location as the
division of government having jurisdiction over such road, highway,
railroad or public utility facility shall deem most favorable and of substantially the same type and in as good condition as the original road, highway or railroad or public utility facility. The cost of such reconstruction, relocation or removal and any damage incurred in changing the location of any such road, highway, railroad or public utility facility, shall be ascertained and paid by the department as a part of the cost of such airport or airport facility. The department may petition the circuit court of the county wherein is situated any public road or part thereof, affected by the location therein of any airport or airport facility, for the vacation or relocation of such road or any part thereof with the same force and effect as is now given by existing laws to the inhabitants of any municipality or governmental subdivision of the state. The proceedings upon such petition, whether it be for the appointment of appraisers or otherwise, shall be the same as provided by existing laws for similar proceedings upon such petitions. In addition to the foregoing powers, the department and its authorized agents and employees, after proper notice, may enter upon any lands, waters and premises in the state for the purpose of making surveys, soundings, drillings, and examinations as are necessary or proper for the purposes of this chapter; and such entry shall not be deemed a trespass, nor shall an entry for such purpose be deemed an entry under any condemnation proceedings which may be then pending; however, before entering upon the premises of any railroad, notice shall be given to the superintendent of such railroad involved at least five (5) days in advance of such entry. No survey, sounding, drilling and examination shall be made between the rails or so close to a railroad track as would render said track unusable. The department may make reimbursement for any actual damage resulting to such lands, waters and premises and to private property located in, on, along, over or under such lands, waters and premises, as a result of such activities. The State of Indiana, subject to the approval of the governor, hereby consents to the use of lands owned by it, including lands lying under water and riparian rights, which are necessary or proper for the construction or operation of any airport or airport facility, provided adequate compensation is made for such use. The department may also make reasonable regulations for the installation, construction, maintenance, repair, renewal, relocation and removal of tracks, pipes, mains, conduits, cables, wires, towers, poles and other equipment and appliances (herein called "public utility facilities") of any public utility in, on, along, over or under any airport or airport facility. Whenever the department shall determine that it is necessary that any such public utility facilities which now are, or hereafter may be, located in, on, along, over or under any such airport or airport facility should be relocated, or should be removed from such airport or airport facility, the public utility owning or operating such facilities shall relocate or remove the same in accordance with the order of the department; however, the cost and expenses of such relocation or removal including the cost of installing such facilities in a new location or new locations and the cost of any lands, or any rights or interest in lands, and any other
rights, acquired to accomplish such relocations or removal, shall be
ascertained and paid by the department as a part of the cost of such
airport or airport facility, excepting, however, cases in which such
equipment or facilities are located within the limits of existing
highways or public thoroughfares being constructed, reconstructed
or improved under the provisions of this chapter. In case of any such
relocation or removal of facilities, the public utility owning or
operating the same, its successors or assigns, may maintain and
operate such facilities, with the necessary appurtenances, in the new
location or new locations, for as long a period, and upon the same
terms and conditions, as it had the right to maintain and operate such
facilities in their former location or locations subject, however, to the
state's right of regulation under its police powers.
(Formerly: Acts 1971, P.L.105, SEC.2.) As amended by Acts 1980,
P.L.74, SEC.349.
IC 8-21-9-19
Maintenance, policing, and operation of airport facilities
Sec. 19. Each airport or airport facility or airport facilities when
constructed and opened to traffic shall be maintained and kept in
good condition and repair by the department. Each such airport
facility or airport facilities shall also be policed and operated by such
force of police, toll-takers and other operating employees as the
department may, in its discretion, employ. All public or private
property damaged or destroyed in carrying out the powers granted by
this chapter shall be restored or repaired and placed in its original
condition as nearly as practicable or adequate compensation made
therefor out of funds provided under this chapter.
(Formerly: Acts 1971, P.L.105, SEC.2.) As amended by Acts 1980,
P.L.74, SEC.350.
IC 8-21-9-20
Restricted zones in airports; air pollution restrictions
Sec. 20. In order to provide free air space for the safe descent,
landing and ascent of aircraft and for the proper and safe use of any
airport or landing field acquired or maintained under this chapter, the
department is hereby given the right, powers and authority to
establish and fix by ordinance or ordinances a restricted zone or
zones for such distance in any direction from the boundaries of such
airport or landing field, within which zone or zones so established,
as in the opinion of the department is necessary and practicable, no
building or other structure shall be erected high enough to interfere
with the descent of an aircraft at such approach angle as may be
deemed reasonably necessary for the safety for the type of operation
that is, or is anticipated to be, conducted at such landing field;
however, the department may by ordinance, establish standards
regulating, within said zone or zones, the emission of air pollutants
such as, but not limited to, smoke, dust, noxious fumes, glare and
electrical radiation which would compromise the safety of aircraft by
interfering with visability, operation of electrical equipment or any
other condition necessary for safe flight.
(Formerly: Acts 1971, P.L.105, SEC.2.) As amended by Acts 1980,
P.L.74, SEC.351.
IC 8-21-9-21
Airport fund
Sec. 21. A special and distinct revolving fund is hereby created,
to be known as the "Airport Fund." Expenditures from the fund shall
be made only for the acquisition of land including lands under water
and riparian rights, or options for the purchase of such land for an
airport or airport facility site, and incidental expenses incurred in
connection with such acquisition, for the preparation of plans and
specifications for any part or all of the airport or airport facility, for
studies in connection with the airport or airport facility, and for
administrative expenses of the department. The fund shall be held in
the name of the department, shall be administered by the department,
and all expenditures therefrom shall be made by the department,
subject, however, to the approval by the governor, the state budget
agency, and the state budget committee of all expenditures of moneys
advanced to the fund by the State of Indiana. Requests for such
approval shall be made in such form as shall be prescribed by the
budget agency, but expenditures for acquisition of land including
lands under water and riparian rights, or options for the purchase of
such land, shall be specifically requested and approved as to the land
to be acquired and the amount to be expended. No transfers from said
fund to any other fund of the state shall be made except pursuant to
legislative action.
Upon the sale of airport revenue bonds for any airport facility or
airport facilities, the funds expended from the "Airport Fund" in
connection with the development of such airport facility or airport
facilities and any obligation or expense incurred by the department
for surveys, preparation of plans and specifications, and other
engineering or other services in connection with development of such
project shall be reimbursed to the "Airport Fund" from the proceeds
of such bonds.
(Formerly: Acts 1971, P.L.105, SEC.2.) As amended by Acts 1980,
P.L.74, SEC.352.
IC 8-21-9-22
Revenue bonds
Sec. 22. Airport revenue bonds issued under the provisions of this
chapter shall not be deemed to constitute a debt of the state or of any
political subdivision thereof or a pledge of the faith and credit of the
state or of any such political subdivision, but such bonds shall be
payable solely from the funds pledged for their payment as
authorized under this chapter, unless such bonds are refunded by
refunding bonds, issued under this chapter, which refunding bonds
shall be payable solely from funds pledged for their payment as
authorized herein. All such revenue bonds shall contain on the face
thereof a statement to the effect that the bonds, as to both principal
and interest, are not an obligation of the State of Indiana, or of any
political subdivision thereof, but are payable solely from revenues
pledged for their payment. All expenses incurred in carrying out this
chapter shall be payable solely from funds provided under the
authority of this chapter, and nothing in this chapter contained shall
be construed to authorize the department to incur indebtedness or
liability on behalf of or payable by the state or any political
subdivision thereof.
(Formerly: Acts 1971, P.L.105, SEC.2.) As amended by Acts 1980,
P.L.74, SEC.353.
IC 8-21-9-23
Issuance of revenue bonds
Sec. 23. (a) The department may, subject to IC 8-9.5-5-8(6)
(repealed), provide for the issuance of airport revenue bonds of the
state for the purpose of paying all or any part of the cost of an airport
facility or airport facilities. The principal of and the interest on the
bonds shall be payable solely from the revenues specifically pledged
to the payment as authorized by section 27 of this chapter.
(b) The bonds of each issue shall be dated, shall bear interest at
such rate or rates, and shall mature at such time or times not
exceeding fifty (50) years from the date thereof, all as may be
determined by the department, and may be made redeemable before
maturity, at the option of the department, at a price or prices and
under terms and conditions as may be fixed by the commissioner in
an executive order providing for the issue.
(c) The department shall determine the form of the bonds,
including attached interest coupons, and shall fix the denomination
or denominations of the bonds and the place or places of payment of
principal and interest which may be at any bank or trust company
within or without the state. The bonds shall be signed in the name of
the department by the commissioner and the official seal of the
department shall be affixed thereto. Any coupons attached thereto
shall bear the facsimile signature of the commissioner of the
department. If the commissioner whose signature or facsimile of
whose signature shall appear on any bonds or coupons shall cease to
be the commissioner before the delivery of such bonds, such
signature or such facsimile shall, nevertheless, be valid and sufficient
for all purposes as if the commissioner had remained in office until
delivery.
(d) All bonds issued under this chapter have all the qualities and
incidents of negotiable instruments under the law of Indiana.
(e) The bonds may be issued in coupon or in registered form, or
both, as the department may determine. Provision may be made for
the registration of any coupon bonds as to principal alone and also as
to both principal and interest and for the reconversion into coupon
bonds of any bonds registered as to both principal and interest.
(f) The bonds shall be sold at public sale in accordance with the
provisions of IC 21-32-3.
(g) The department may issue bonds in connection with a
self-liquidating airport facility or airport facilities without regard to
maximum interest rate limitation in this chapter or any other law and
sell the bonds either at public or private sale as the department may
determine. The provisions of IC 21-32-3 shall not be applicable to
such sale.
(h) "Self-liquidating airport facility or airport facilities" means an
airport facility or airport facilities for which a lease or leases have
been executed providing for payment of rental in an amount at least
sufficient to pay the interest and principal of the bonds to be issued
to finance the cost of the airport facility or airport facilities and
providing for the payment of the lessee or lessees of all costs of
maintenance, repair, and insurance of the airport facility or airport
facilities.
(Formerly: Acts 1971, P.L.105, SEC.2.) As amended by Acts 1980,
P.L.74, SEC.354; P.L.18-1990, SEC.159; P.L.2-2007, SEC.137;
P.L.1-2009, SEC.73.
IC 8-21-9-24
Proceeds of revenue bonds; interim receipts or temporary bonds;
placement of lost or destroyed bonds
Sec. 24. The proceeds of the bonds of each issue shall be used
solely for the payment of the cost of the airport facility or airport
facilities for which the bonds have been issued, and shall be
disbursed in the manner and under the restrictions, if any, as may be
provided in the resolution authorizing the issuance of the bonds or in
a trust agreement securing the issue. If the proceeds of the bonds of
any issue, by error of estimates or otherwise, are less than the cost,
additional bonds may in like manner be issued, subject to
IC 8-9.5-5-8(6) (repealed), to provide the amount of the deficit, and,
unless otherwise provided in the commissioner's executive order
authorizing the issuance of the bonds or in the trust agreement
securing the issue, are deemed to be of the same issue and entitled to
payment from the same fund without preference or priority of the
bonds first issued. If the proceeds of the bonds of any issue shall
exceed the cost of the airport facility or airport facilities for which
the bonds have been issued, the surplus shall be deposited to the
credit of the sinking fund for the bonds. Prior to the preparation of
definitive bonds, the department may, subject to IC 8-9.5-5-8(6)
(repealed), issue interim receipts or temporary bonds, with or without
coupons, exchangeable for definitive bonds when the bonds have
been executed and are available for delivery. The department may
also provide for the replacement of any bonds which shall become
mutilated or shall be destroyed or lost.
(Formerly: Acts 1971, P.L.105, SEC.2.) As amended by Acts 1980,
P.L.74, SEC.355; P.L.18-1990, SEC.160; P.L.1-2009, SEC.74.
IC 8-21-9-25
Refunding bonds
Sec. 25. The commissioner may, subject to IC 8-9.5-5-8(6)
(repealed), provide for the issuance of airport revenue refunding
bonds of the state payable solely from revenues for the purpose of
refunding any bonds then outstanding which have been issued under
this chapter, including the payment of any redemption premium
thereon and any interest accrued or to accrue to the date of
redemption of such bonds, and, if deemed advisable by the
department, for the additional purpose of constructing improvements,
extensions, or enlargements of the airport facility or airport facilities
in connection with which the bonds to be refunded have been issued.
The issuance of the bonds, the maturities and other details thereof,
the rights of the holders thereof and the rights, duties, and obligations
of the authority in respect of the same shall be governed by this
chapter insofar as this chapter is applicable.
(Formerly: Acts 1971, P.L.105, SEC.2.) As amended by Acts 1980,
P.L.74, SEC.356; P.L.18-1990, SEC.161; P.L.1-2009, SEC.75.
IC 8-21-9-26
Trust agreement to secure bonds
Sec. 26. (a) In the discretion of the department, any bonds issued
under the provisions of this chapter may be secured by a trust
agreement between the department and a corporate trustee, which
may be any trust company or bank having the powers of a trust
company within the state.
(b) An executive order issued by the commissioner providing for
the issuance of bonds for any airport facility or airport facilities, and
any trust agreement pursuant to which such bonds are issued, may
pledge or assign:
(1) all or any portion of the revenues received or to be received
by the department from an airport facility or airport facilities
except the part as may be necessary to pay the cost of the
operation, maintenance, and repair of the airport facility or
airport facilities to the extent airport facility or airport facilities
and to provide reserves therefor and depreciation reserves if and
to the extent required by any bond resolution adopted or trust
agreement executed by the department; and
(2) the net revenues of the department from other airport
facilities to the extent the net revenues are not otherwise
pledged or assigned.
The department shall not convey or mortgage any airport, airport
facility or any part thereof.
(c) In authorizing the issuance of bonds for any particular airport
facility or airport facilities undertaken in connection with the
development of an airport, the department may limit the amount of
bonds that may be issued as a first lien and charge against the
revenues pledged to the payment of the bonds. The department may
authorize the issuance from time to time of additional bonds secured
by the same lien to provide funds for the completion of the airport
facility or airport facilities on account of which the original bonds
were issued, or to provide funds to pay the cost of additional airport
facilities undertaken in connection with the development of the
airport, or for both purposes. The additional bonds shall be issued on
terms and conditions as provided in the resolution authorizing the
issuance of the bonds or in the trust agreement or a supplemental
agreement and may be secured equally and ratably without
preference, priority, or distinction with the original issue of bonds or
may be made junior.
(d) Any pledge or assignment made by the department is valid and
binding from the time that the pledge or assignment is made, and the
revenues pledged and received by the department shall immediately
be subject to the lien of the pledge or assignment without physical
delivery or further act. The lien of the pledge or assignment is valid
and binding against all parties having claims of any kind in tort,
contract or otherwise against the department whether or not the
parties have notice.
(e) Neither the resolution nor any trust agreement by which a
pledge is created or assignment made need be filed or recorded
except in the records of the department. A trust agreement or
resolution providing for the issuance of bonds may contain
provisions for protecting and enforcing the rights and remedies of the
bondholders as may be reasonable and proper and not in violation of
law, including covenants setting forth the duties of the department in
relation to the acquisition of property and the construction,
improvements, maintenance, repair, operation, and insurance of the
airport facility or airport facilities in connection with which such
bonds shall have been authorized, the rates of fees, tolls, rentals, or
other charges to be collected for the use of the airport facility or
airport facilities, and the custody, safeguarding, and application of all
money and provisions for the employment of consulting engineers in
connection with the construction or operation of such airport facility
or airport facilities.
(f) It is lawful for any bank or trust company incorporated under
the laws of the state that may act as depository of the proceeds of
bonds or other funds of the department to furnish indemnifying
bonds or to pledge securities as required by the department. A trust
agreement may set forth the rights and remedies of the bondholders
and of the trustee and may restrict the individual right of action by
bondholders as is customary in trust agreements or trust indentures
securing bonds or debentures of private corporations. In addition, a
trust agreement may contain other provisions as the department may
deem reasonable and proper for the security of the bondholders. All
expenses incurred in carrying out the provisions of a trust agreement
may be treated as a part of the cost of the operation of the airport
facility or airport facilities.
(Formerly: Acts 1971, P.L.105, SEC.2.) As amended by Acts 1980,
P.L.74, SEC.357; P.L.18-1990, SEC.162.
IC 8-21-9-27
Rights of bondholders
Sec. 27. Any holder of bonds issued under the provisions of this
chapter or any of the coupons appertaining thereto, and the trustee
under any trust agreement, except to the extent the rights herein givel
may be restricted by the authmrizing resolution or trust agreement,
may, either at law or in equity, by suit, action, mandamus or other
proceedings, protect and enforce any and all rights under the laws of
the state or granted hereunder or under such trust agreement, or the
resolution authorizing the issuance of such bonds, and may enforce
and compel the performance of all duties required by this chapter or
by such trust agreement or resolution to be performed by the
department or by any officer thereof, including the fixing, charging
and collecting of fees, tolls, rentals or other charges for the use of the
airport or airport facility or airport facilities.
(Formerly: Acts 1971, P.L.105, SEC.2.) As amended by Acts 1980,
P.L.74, SEC.358.
IC 8-21-9-28
Revenue bonds to constitute legal investments for various
institutions and fiduciaries
Sec. 28. Revenue bonds issued by the department under the
provisions of this chapter shall constitute legal investments for any
private trust funds, and the funds of any banks, trust companies,
insurance companies, building and loan associations, credit unions,
banks of discount and deposit, savings banks, loan and trust and safe
deposit companies, rural loan and savings associations, mortgage
guaranty companies, small loan companies and industrial loan and
investment companies, and any other financial institutions organized
under the laws of the state of Indiana. Such bonds are hereby made
securities in which all public officers and public agencies of the state
and its political subdivisions may legally and properly invest funds
and such bonds may be properly and legally deposited with and
received by any state or municipal officer or any agency or political
subdivision of the state for any purpose for which the deposit of
bonds or other obligations of the state is now or may hereafter be
authorized by law.
(Formerly: Acts 1971, P.L.105, SEC.2.) As amended by Acts 1980,
P.L.74, SEC.359; P.L.42-1993, SEC.9.
IC 8-21-9-29
Fixing and collecting fees, tolls, rentals, and other charges
Sec. 29. The department may fix, review, revise, charge and
collect fees, tolls, rentals and other charges for the use of the airport,
airport facility, airport facilities and lands under the jurisdiction or
control of the authority or services rendered by the department, and
contract with any person, partnership, association, limited liability
company, or corporation desiring the use of any airport facility or
airport facilities and appurtenances for any proper purpose, and fix
the terms, conditions, rentals, and rates of charges for such use. Such
fees, tolls, rentals and other charges shall be reasonably related to the
cost of operation, maintenance and repair of the particular airport
facility or airport facilities for which the fees, tolls, rentals and other
charges are fixed, including a proper allocation of the administrative
expenses of the department and in case revenue bonds are issued to
finance such airport facility or airport facilities, the fees, tolls, rentals
and other charges relating to that airport facility or airport facilities
shall be established in an amount sufficient to pay the interest on and
principal of the bonds in accordance with their terms, and also
sufficient to establish and maintain reserves created for all such
purposes and for depreciation purposes. The fixing and collection of
such fees, tolls, rentals and other charges and the expenditure of the
revenues derived therefrom shall not be subject to the supervision or
regulation by any other officer, commission, board, bureau or agency
of the state. After such bonds have been duly paid and discharged
and all obligations under any trust agreement securing the same have
been performed or satisfied, any remaining surplus net revenues and
all surplus net revenues thereafter derived from the operation of such
airport or airports shall be paid into a sinking fund to be created by
the department and used only for the purpose of improving and
maintaining airport facilities under the jurisdiction of the department.
(Formerly: Acts 1971, P.L.105, SEC.2.) As amended by Acts 1980,
P.L.74, SEC.360; P.L.8-1993, SEC.149.
IC 8-21-9-30
Deposit of funds
Sec. 30. All money received from any facility, pursuant to the
authority of this chapter, whether as proceeds from the sale of bonds,
from revenues, or otherwise, shall be held and accounted for by the
department separate and apart from any other money of the
department and shall be deemed to be trust funds to be held and
applied solely and exclusively for the benefit of that facility as
provided in this chapter, but prior to the time when needed for use by
that facility may be invested by the department to the extent and in
the manner provided by IC 5-13, insofar as applicable. Such funds
shall be kept in depositories designated as depositories for funds of
the state as selected by the department, in the manner provided by the
governing statutes insofar as applicable. The resolution authorizing
the issuance of bonds or the trust agreement securing such bonds
shall provide that any officer to whom, or any bank or trust company
to which money shall be entrusted, shall act as trustees of such
money and shall hold and apply the same for the purposes of this
chapter, subject to the provisions of this chapter and of the
authorizing resolution or trust agreement.
(Formerly: Acts 1971, P.L.105, SEC.2.) As amended by Acts 1980,
P.L.74, SEC.361; P.L.19-1987, SEC.25; P.L.3-1990, SEC.33.
IC 8-21-9-31
Tax exemptions; tax assessments
Sec. 31. (a) The exercise of the powers granted by this chapter
will be in all respects for the benefit of the people of the state, for the
increase of their commerce and prosperity, and for the improvement
of their health and living conditions, and as the operation and
maintenance of an airport facility or airport facilities by the
department will constitute the performance of essential governmental
functions, the department shall not be required to pay any taxes or
assessments upon any airport facility or airport facilities or any
property acquired or used by the department under the provisions of
this chapter, or upon the income therefrom, and the bonds issued
under the provisions of this chapter, the interest thereon, the
proceeds received by a holder from the sale of such bonds to the
extent of the holder's cost of acquisition, or proceeds received upon
redemption prior to maturity or proceeds received at maturity, and
the receipt of such interest and proceeds shall be exempt from
taxation in the state of Indiana for all purposes except the financial
institutions tax imposed under IC 6-5.5 or a state inheritance tax
imposed under IC 6-4.1.
(b) All properties both real and personal owned and operated by
the department or leased by the department for proprietary purposes
shall be assessed and added to the local tax rolls as any other private
property. Such proprietary operations, under control of either the
authority or a lessee of the department, shall be subject to Indiana
adjusted gross income and sales tax laws.
(Formerly: Acts 1971, P.L.105, SEC.2.) As amended by Acts 1980,
P.L.74, SEC.362; P.L.21-1990, SEC.41; P.L.254-1997(ss), SEC.15;
P.L.192-2002(ss), SEC.145.
IC 8-21-9-32
Repealed
(Repealed by Acts 1980, P.L.74, SEC.434.)
IC 8-21-9-33
Repealed
(Repealed by Acts 1980, P.L.74, SEC.434.)
IC 8-21-9-34
Regional plan commissions; membership; powers and duties
Sec. 34. (a) In the event that there is in existence or is later created
a regional plan commission having jurisdiction over any portion of
the airport site purchased or otherwise controlled by the department:
(1) a representative appointed by the commissioner of the
department shall become a voting member of the regional plan
commission with all rights and privileges of regular
membership, except that the department member shall be
permitted to claim no compensation or reimbursement for
personal expenses or per diem from the regional plan
commission; and
(2) upon appointment of a department representative to the
regional plan commission, all requests or proposals for zoning
amendments, subdivision plats, conditional use permits,
exceptions, or variances from any zoning ordinance as well as
for the development of public facilities including requests and
proposals for airports, parks, thoroughfares, hospitals, and
schools within the zone or zones provided for in section 21 of
this chapter shall be forwarded to the regional plan commission
by the appropriate public body for review and comment.
(b) The regional plan commission shall review proposals
described in subsection (a)(2) and give consideration to aircraft
safety, public safety, and regional plans relating to the aircraft
vicinity. If the regional plan commission does not return its
comments to the appropriate public body within thirty (30) days, the
public body may proceed on the basis that the regional plan
commission concurs with the proposals. Comment made by the
regional plan commission shall be considered to be of an advisory
nature only.
(Formerly: Acts 1971, P.L.105, SEC.2.) As amended by Acts 1980,
P.L.74, SEC.363; P.L.3-1989, SEC.70; P.L.18-1990, SEC.163.
IC 8-21-9-35
Conflicts of interest; void contracts; offense
Sec. 35. A member, agent, or employee of the department who
knowingly is interested in any contract with the department or in the
sale of any property, either real or personal, to the department
commits a Class A misdemeanor. All such contracts are void. This
section does not apply to contracts for purchases of property, real or
personal, between the department and other departments,
municipalities, or subdivisions of state government.
(Formerly: Acts 1971, P.L.105, SEC.2.) As amended by Acts 1978,
P.L.2, SEC.865; Acts 1980, P.L.74, SEC.364.
IC 8-21-9-36
Repealed
(Repealed by Acts 1980, P.L.74, SEC.434.)
IC 8-21-9-37
Powers and duties of department; application to chapter
Sec. 37. The powers, duties, and functions of the department
under IC 8-21-1 shall not apply to the operation of any airport
created under the authority of this chapter. However, statewide
regulatory powers of the department shall appertain thereto in
aviation communications, air safety, or enforcement of IC 8-21-10,
the high structure safety law.
(Formerly: Acts 1971, P.L.105, SEC.2; Acts 1973, P.L.73, SEC.2.)
As amended by Acts 1980, P.L.74, SEC.365; P.L.3-1990, SEC.34.