Bill Text: IN SB0063 | 2012 | Regular Session | Amended
Bill Title: Ports of Indiana.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2012-01-19 - Senator Charbonneau added as first author [SB0063 Detail]
Download: Indiana-2012-SB0063-Amended.html
Citations Affected: IC 6-1.1; IC 8-10.
Synopsis: Ports of Indiana. Provides that certain leasehold interests in
real property, including improvements, are exempt from property
taxation if the real property is part of a port or project of the ports of
Indiana (ports). Provides that unpaid property taxes on leasehold
interests that are not exempt remain the liability of the lessee. Specifies
that the ports may issue bonds at public or private sale. Reduces from
three to one the number of appraisers required to appraise property
before the ports may sell the property. Provides that leases of
self-liquidating and nonrecourse projects are not subject to approval by
the governor. Authorizes the ports to determine the time and manner of
sales of property interests financed by bond proceeds. Increases the
maturity date of bonds issued by the ports from 35 to 40 years.
Removes a requirement that the state board of accounts conduct an
annual audit of the ports. Decreases from six months to 60 days the
period during which the ports may enter into contracts without
advertising for bids. Excludes the ports from the common construction
wage for purposes of self-liquidating or nonrecourse projects that are
not located at a port. Provides that the common construction wage that
applies to certain contracts let by the ports is the wage rate in effect on
the earliest date that the ports publishes notice of the contract.
Effective: April 1, 2012; July 1, 2012.
January 4, 2012, read first time and referred to Committee on Rules and Legislative
Procedure.
January 19, 2012, amended; reassigned to Committee on Appropriations.
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in
Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or
A BILL FOR AN ACT to amend the Indiana Code concerning
transportation.
(1) the lease of a dwelling unit within a public housing project by the tenant of that dwelling unit; or
(2) a lease entered into or renewed by the ports of Indiana under IC 8-10 with a political subdivision or other governmental entity after March 31, 2012, of real property, including improvements, that is:
(A) part of a port or project (as defined in IC 8-10-1-2); and
(B) owned by the state or the ports of Indiana.
(b) If real property that is exempt from taxation is leased to another whose property is not exempt and the leasing of the real property does not make it taxable, the leasehold estate and the appurtenances to the leasehold estate shall be assessed and taxed as if they were real property owned by the lessee or
(c) If personal property that is exempt from taxation is leased to another whose property is not exempt and the leasing of the personal property does not make it taxable, the leased personal property shall be assessed and taxed as if it were personal property owned by the lessee or
(d) This subsection applies to property described in subsection (b) or (c) that is the subject of a lease entered into or renewed by the ports of Indiana under IC 8-10 after March 31, 2012, other than a lease described in subsection (a)(2). Any taxes that:
(1) are imposed under this article on the property during the term of the lease; and
(2) remain unpaid upon the expiration of the lease;
remain the liability of the lessee that is party to the expired lease. The unpaid taxes are not a liability of the ports of Indiana or a subsequent lessee or occupant of the property.
(1) acquire, construct, maintain, and operate
(2) issue revenue bonds of the state payable solely from revenues to pay the cost of such projects.
The ports of Indiana's powers are not limited to ports and may be exercised throughout Indiana for projects that enhance, foster, aid, provide, or promote economic development, public-private partnerships, and other agricultural, industrial, commercial, business, and transportation purposes, and the general welfare of the state.
JULY 1, 2012]: Sec. 2. As used in this chapter, the following words
and terms shall have the following meanings, unless the context shall
indicate another or different meaning or intent:
(a) The word "commission" shall mean the commission created by
section 3(b) of this chapter, or, if said commission shall be abolished,
the board, body, or commission succeeding to the principal functions
thereof, or to whom the powers given by this chapter to the commission
shall be given by law.
(b) The word "port" shall include any combination of:
(1) any place or places on Lake Michigan, the Ohio River, the
Wabash River, or other water bodies, natural or artificial, in
which water-borne vessels capable of carrying articles of
commerce over navigable bodies of water may be loaded,
unloaded, or accommodated; and
(2) nonmaritime port and traffic exchange points throughout
Indiana for the transfer of goods and passengers between all
modes of transportation;
at locations approved by the governor.
(c) The word "project" shall include:
(1) any land, facilities, adjuncts, and appurtenances, necessary or
useful to operate a modern port, whether or not permanently
situated at the port, including:
(A) the dredging of approaches to a port; and
(B) breakwaters, inner harbors, outer harbors, channels,
canals, turning basins, docks, wharves, piers, quays, slips,
loading, unloading, handling and storage equipment,
warehouses, refrigerating plants and equipment, elevators for
the handling and storage of grain, coal, and other bulk
commodities, terminal buildings or facilities, railroad
equipment and trackage, roadways, airplane landing fields,
parking lots, garages, automotive equipment, tugs, ferries,
maintenance and construction vessels, communication
systems, sewers, drains, works for the treatment of sewage,
garbage, and wastes, and the furnishing of utility service
necessary to serve the property under the jurisdiction or
control of the ports of Indiana and other buildings and
facilities which the ports of Indiana may deem necessary for
the operation of the port; and
(2) any other project land or facility located in Indiana, other
than at a port, that the ports of Indiana finds will enhance, foster,
aid, provide, or promote economic development, public-private
partnerships, and other industrial, commercial, business, and
transportation purposes.
(d) The word "cost" as applied to a port or project means:
(1) the cost of acquisition, construction, rehabilitation, or
improvement;
(2) the cost of acquisition of all land, rights-of-way, property,
rights, easements and interests, including lands under water and
riparian rights acquired by the ports of Indiana for construction;
(3) the cost of demolishing or removing any buildings or
structures on land so acquired, including the cost of acquiring any
lands to which buildings or structures may be moved;
(4) the cost of relocating public roads;
(5) the cost of land or easements for roads;
(6) the cost of all machinery and equipment;
(7) financing charges;
(8) interest prior to and during construction and for not exceeding
two (2) years after the estimated date of completion of
construction;
(9) the cost of engineering and legal expenses, plans,
specifications, surveys, and estimates of cost, traffic, and
revenues;
(10) other expenses necessary or incident to determining the
feasibility or practicability of constructing any such project;
(11) administrative expense;
(12) other expenses as may be necessary or incident to the
acquisition or construction of the project, the financing, including
by issuing bonds, of the acquisition or construction, and the
placing of the project in operation, including the amount
authorized in the resolution of the commission providing for the
issuance of revenue bonds to be paid into any special funds from
the proceeds of the bonds; and
(13) any obligation, cost, or expense incurred by any
governmental agency or person for surveys, borings, the
preparation of plans and specifications, and other engineering
services, or any other cost described in this section that is
incurred in connection with the acquisition or construction of a
project may be regarded as part of the cost of the project and may
be reimbursed out of the proceeds of revenue bonds as authorized
by this chapter.
(e) The word "owner" shall include all individuals, copartnerships,
associations, or corporations having any title or interest in any property,
rights, easements, and other interests authorized to be acquired by this
chapter.
(f) The word "revenues" shall mean all fees, tolls, rentals, gifts, grants, moneys, and all other funds coming into the possession or under the control of the ports of Indiana by virtue of the terms and provisions of this article, but shall not include real property or personal property other than money, nor the proceeds from the sale of bonds issued under provisions of this chapter.
(g) The word "public roads" shall include all public highways, roads, and streets in the state, whether maintained by the state, county, city, township, or other political subdivision.
(h) "Ports of Indiana" means the ports of Indiana created by section 3(a) of this chapter.
(1) do not constitute a debt of the ports of Indiana, the state, or any political subdivision of the state, or a pledge of the faith and credit of the ports of Indiana, the state, or any political subdivision of the state;
(2) are payable solely from the funds pledged for their payment as authorized in this article, unless the bonds are refunded by refunding bonds issued under the provisions of this chapter, which shall be payable solely from funds pledged for their payment as authorized in this article;
(3) must contain on their face a statement to the effect that the bonds, as to both principal and interest, are not an obligation of the ports of Indiana, the state, or of any political subdivision of the state, but are payable solely from revenues pledged for their payment; and
(4) may be sold at public sale in the manner provided in IC 21-32-3 for the bonds of a state educational institution or at private sale in the manner determined by the ports of Indiana.
All expenses incurred in carrying out the provisions of this article are payable solely from funds provided under the authority of this article and nothing in this article shall be construed to authorize the ports of Indiana to incur indebtedness or liability on behalf of or payable by the state or any political subdivision of the state.
(1) To adopt an official seal which shall not be the seal of the state of Indiana.
(2) To maintain a principal office and sub-offices at such place or places within the state as it may designate.
(3) To sue and be sued, and to plead and be impleaded in the name of the ports of Indiana. However, actions at law against the ports of Indiana shall be brought in the circuit court of the county in which the principal office of the ports of Indiana is located or in the circuit court of the county in which the cause of action arose, if the county is located within the state. All summonses and legal notices of every kind shall be served on the ports of Indiana by leaving a copy thereof at the principal office of the ports of Indiana with the person in charge thereof or with the secretary of the ports of Indiana. However, no such action shall be deemed commenced until a copy of the summons and complaint, cross complaint, petition, bill, or pleading is served upon the attorney general of Indiana.
(4) To acquire, lease, sell, transfer, construct, maintain, repair, police, and operate a port or project as provided in this chapter, and to establish rules and regulations for the use of the port or project, and other property subject to the jurisdiction and control of the ports of Indiana.
(5) To issue both taxable and tax exempt revenue bonds of the state, payable solely from revenues, as herein provided, for the purpose of paying all or any part of the cost of a port or project.
(6) To acquire, lease, sell, transfer, and operate tugboats, locomotives, and any and every kind of motive power and conveyances or appliances necessary or proper to carry passengers, goods, wares, merchandise, or articles of commerce in, on, or around the port or project.
(7) To fix and revise from time to time and to collect fees, rentals, tolls, and other charges for the use of any port or project.
(8) To acquire, obtain option on, hold, and dispose of real and personal property in the exercise of its powers and the performance of its duties under this chapter.
(9) To designate the location and establish, limit, and control points of ingress to and egress from a port or project.
(10) To lease to others for development or operation such portions of any port or project, on such terms and conditions as the ports of Indiana shall deem advisable.
(11) To 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 twenty-five thousand dollars ($25,000), the ports of
Indiana 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 the county where
the construction will occur and in such other publications as the
ports of Indiana shall determine. The notice shall state the general
character of the work and 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 ports of Indiana may reject any and all bids. A bond
with good and sufficient surety as shall be approved by the ports
of Indiana 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.
(12) To construct, assemble, or otherwise build, own, lease,
operate, manage, or otherwise control any project throughout
Indiana for the purpose of promoting economic growth and
development throughout Indiana, retaining existing employment
within Indiana, and attracting new employment opportunities
within Indiana.
(13) To employ a chief executive, consulting engineers,
superintendents, and such other engineers, construction and
accounting experts, attorneys, and other employees and agents as
may be necessary in its judgment, and to fix their compensation
and title, but no compensation of any employee of the ports of
Indiana shall exceed the compensation of the highest paid officer
or employee of the state.
(14) To receive and accept from any federal agency grants for or
in aid of the construction of any port or project, and to receive and
accept aid or contributions from any source of either money,
property, labor, or other things of value, to be held, used, and
applied only for the purposes for which such grants and
contributions may be made.
(15) To provide coverage for its employees under the provisions
of IC 22-3-2 through IC 22-3-6, and IC 22-4.
(16) To do all acts and things necessary or proper to carry out the powers expressly granted in this article.
(17) To hold, use, administer, and expend such sum or sums as may herein or hereafter be appropriated or transferred to the ports of Indiana.
(b) Except as provided in subsection (e), the ports of Indiana is hereby further authorized and empowered to sell, transfer, and convey any such land or any interest therein so acquired, or any portion thereof, when the same shall no longer be needed for such purposes. The ports of Indiana is further authorized and empowered to transfer and convey any such lands or interest therein as may be necessary or convenient for the construction and operation of any port or project, or as otherwise required under the provisions of this article. However,
(c) The ports of Indiana shall also be authorized to lease, or grant options to lease, to others for development any portion of the land owned by the ports of Indiana, on such terms as the ports of Indiana shall determine to be advantageous. All such leases or options to lease
defined in IC 8-10-4-1), are subject to the approval of the governor.
Leases of lands under the jurisdiction or control of the ports of Indiana
shall be made only for such uses and purposes as are calculated to
contribute to the growth and development of ports, terminal facilities,
and projects under the jurisdiction or control of the ports of Indiana. In
the event the ports of Indiana shall lease to others a building or
structure financed by the issuance of revenue bonds under IC 8-10-4,
the transaction must be structured as a self-liquidating or nonrecourse
project (as defined in IC 8-10-4-1).
(d) No tenant, lessee, licensee, owner of real estate located within
a port or project, or other person or entity has any right, claim, title, or
interest in any real estate, personal property, or common property
owned by the ports of Indiana, a port, a project, or the state, unless a
written agreement entered into by the ports of Indiana expressly
provides:
(1) the exact nature and extent of the right, claim, title, or interest;
(2) all the conditions under which the right, claim, title, or interest
is granted; and
(3) a legal or complete description of the specific property.
(e) The ports of Indiana is authorized and empowered to
transfer and convey:
(1) any lands or interest obtained with the proceeds of bonds
issued under IC 8-10-4; or
(2) any lands or interest upon which a project financed with
the proceeds of bonds issued under IC 8-10-4 is located;
at a price and in the manner determined by the ports of Indiana.
(b) The ports of Indiana shall determine the form of the bonds,
including any interest coupons to be attached thereto, 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.
(c) The bonds shall be signed in the name of the ports of Indiana by
the chairman or vice chairman of the commission or chief executive of
the ports of Indiana, or by the facsimile signature of the chairman or
vice chairman of the commission or chief executive of the ports of
Indiana and the official seal of the ports of Indiana or facsimile thereof,
shall be affixed thereto and attested by the secretary-treasurer of the
commission, and any coupons attached thereto shall bear the facsimile
signature of the chairman of the commission. In case any officer whose
signature or a facsimile of whose signature shall appear on any bonds
or coupons shall cease to be such officer before the delivery of such
bonds, such signature or such facsimile shall nevertheless be valid and
sufficient for all purposes the same as if the officer had remained in
office until such delivery.
(d) All bonds issued under this article shall have and are hereby
declared to have all the qualities and incidents of negotiable
instruments under the negotiable instruments law of the state of
Indiana.
(e) The bonds may be issued in coupon or in registered form, or
both, as the ports of Indiana may determine, and 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) Except as provided in IC 8-10-4, the bonds shall be sold at
public sale in accordance with IC 21-32-3 except as provided in
IC 8-10-4. or at private sale in the manner determined by the ports
of Indiana.
(g) No action to contest the validity of any bonds issued by the ports
of Indiana under this article shall be commenced more than thirty (30)
days following the adoption of the resolution approving the bonds as
provided in this article.
(h) The ports of Indiana shall cooperate with and use the assistance
of the Indiana finance authority established under IC 4-4-11 in the
issuance of the bonds under this chapter or IC 8-10-4.
applied solely as provided in this chapter, but prior to the time when
needed for use may be invested to the extent and in the manner
provided by IC 5-13-10.5, insofar as applicable. Such funds shall be
kept in depositories designated as depositories for funds of the state
under IC 5-13-9 and as selected by the ports of Indiana. in the manner
provided by the governing statutes in so far as applicable. The
resolution of the commission 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, such money shall be
entrusted, shall act as trustee of such money and shall hold and apply
the same for the purposes hereof, subject to the provisions of this
chapter and of the authorizing resolution or trust agreement.
(b) The ports of Indiana shall, following the close of each fiscal year, submit an annual report of its activities and a copy of the audit conducted under subsection (a) for the preceding year to the governor, the budget committee, the state board of accounts, and the general assembly. An annual report submitted under this section to the general assembly must be in an electronic format under IC 5-14-6.
(b) As the operation and maintenance of a port or project by the ports of Indiana will constitute the performance of essential governmental functions, the ports of Indiana shall not be required to pay any taxes or assessments upon any port or project or any property acquired or used by the ports of Indiana under the provisions of this
article or upon the income therefrom. The bonds issued by the ports of
Indiana, 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.
(c) Notwithstanding any other statute, a lessee's leasehold estate in
land that is part of a port and that is owned by the state or the ports of
Indiana is exempt from property taxation. However, an exemption
under this subsection is not available for land not located at a port.
(d) This subsection applies to leases entered into or renewed
after March 31, 2012, with a political subdivision or other
governmental entity. Notwithstanding IC 6-1.1-10-37 or any other
statute, a leasehold estate of a political subdivision or other
governmental entity in real property, including improvements, that
is part of a port or project and that is owned by the state or the
ports of Indiana is exempt from property taxation.
(b) In exercising the powers granted in this section, the ports of Indiana shall have all the powers granted to it by this article, in connection with a project, and the term "project", as used in IC 8-10-1, shall be deemed to include facilities, adjuncts, and appurtenances of the character referred to in this section.
(c) It is further declared that the acquisition, construction, maintenance, repair, policing of, and leasing to others of such facilities
under the conditions set forth in this section is a public purpose.
(d) Nothing in this section shall authorize the ports of Indiana to
take, condemn, or disturb any property right or interest in property,
existing on March 10, 1967, including permits and authorities to fill
and reclaim submerged lands, or any facilities constituting all or part
of any operating property or any private or public port. The ports of
Indiana shall make reimbursement for any actual damage to any public
or private facilities, including but not limited to breakwaters, water
intakes, wharves, piers, boat docks, warehouses, and pipeline
equipment resulting from the exercise by it of any powers granted to it
by this section.
