CHAPTER 2. DEVELOPMENT AUTHORITY AND BOARD
IC 36-7.6-2
Chapter 2. Development Authority and Board
IC 36-7.6-2-1
Establishment of development authorities
Sec. 1. (a) Development authorities may be established under this
chapter in the economic growth regions of Indiana.
(b) The provisions of section 3 of this chapter govern the
establishment of a development authority.
As added by P.L.232-2007, SEC.7.
IC 36-7.6-2-2
Body corporate and politic; development authority activities
Sec. 2. A development authority established under this chapter is
a separate body corporate and politic that shall carry out the purposes
of this article by:
(1) acquiring, constructing, equipping, owning, leasing, and
financing projects and facilities for lease to or for the benefit of
eligible political subdivisions under this article; and
(2) funding and developing:
(A) airport authority projects;
(B) commuter transportation district and other rail projects
and services;
(C) regional transportation authority projects and services;
(D) economic development projects;
(E) intermodal transportation projects; and
(F) regional trail or greenway projects;
that are of regional importance.
As added by P.L.232-2007, SEC.7.
IC 36-7.6-2-3
Units that may establish a development authority; contiguity
requirements
Sec. 3. (a) Subject to the provisions of this article, regional
development authorities may be established under subsection (b), (c),
or (d).
(b) A development authority may be established by two (2) or
more counties that are located in the same economic growth region.
(c) A development authority may be established by:
(1) two (2) or more counties that are located in the same
economic growth region; and
(2) one (1) or more counties that:
(A) are not located in the same economic growth region as
the counties described in subdivision (1); and
(B) are adjacent to the economic growth region containing
the counties described in subdivision (1).
(d) A development authority may be established by:
(1) one (1) or more counties; and
(2) one (1) or more second class cities that:
(A) are not located in the county or counties described in
subdivision (1); and
(B) are located in the same economic growth region as the
county or counties described in subdivision (1).
(e) A county or second class city may participate in the
establishment of a development authority under this section and
become a member of the development authority only if the fiscal
body of the county or second class city adopts an ordinance
authorizing the county or second class city to participate in the
establishment of the development authority.
(f) A county may be a member of a development authority only if
the county is contiguous to at least one (1) other county that is a
member of the development authority. A second class city may be a
member of a development authority only if the county in which the
second class city is located is contiguous to at least one (1) other
county that is a member of the development authority.
(g) Notwithstanding any other provision, if a county becomes a
member of a development authority, each municipality in the county
also becomes a member of the development authority.
(h) Not more than two (2) development authorities may be
established in a particular economic growth region. For purposes of
this subsection, a development authority is considered to be
established in a particular economic growth region if a county or
municipality located in the economic growth region is a member of
a development authority.
(i) A county or municipality may be a member of only one (1)
development authority.
(j) A county or municipality that is a member of the northwest
Indiana regional development authority under IC 36-7.5 may not be
a member of a development authority under this article.
As added by P.L.232-2007, SEC.7.
IC 36-7.6-2-4
Joining an existing development authority
Sec. 4. (a) A county or second class city that:
(1) is not a member of a development authority; and
(2) was eligible to participate in the establishment of a
particular development authority established under this article;
may join that development authority under this section.
(b) A county or second class city described in subsection (a) may
join a development authority under this section only if:
(1) the fiscal body of the county or second class city adopts an
ordinance authorizing the county or second class city to become
a member of the development authority; and
(2) after the fiscal body adopts an ordinance under subdivision
(1), the development board of the development authority adopts
a resolution authorizing the county or second class city to
become a member of the development authority.
(c) A county or second class city becomes a member of a
development authority on January 1 of the year following the year in
which the development board adopts a resolution under subsection
(b)(2) authorizing the county or second class city to become a
member of the development authority.
(d) The executive of a county or second class city that becomes a
member of a development authority under this section is entitled to
appoint a member to the development board under section 7 of this
chapter.
(e) A county or second class city may not join a development
authority under this section if joining the development authority
would violate the requirement in section 3(h) of this chapter that not
more than two (2) development authorities may be established in a
particular economic growth region.
(f) If a county joins a development authority under this section,
each municipality in the county also becomes a member of the
development authority.
As added by P.L.232-2007, SEC.7. Amended by P.L.3-2008,
SEC.265.
IC 36-7.6-2-5
Minimum length of participation; withdrawal
Sec. 5. (a) This section applies to the following:
(1) A county that participates in the establishment of a
development authority under section 3 of this chapter or that
joins a development authority under section 4 of this chapter.
(2) A second class city that participates in the establishment of
a development authority under section 3(d) of this chapter or
that joins a development authority under section 4 of this
chapter.
(b) A county or second class city described in subsection (a) shall
be a member of the development authority for five (5) years after the
date the county or second class city becomes a member of the
development authority.
(c) At least twelve (12) months and not more than eighteen (18)
months before the end of a five (5) year period under subsection (b),
the fiscal body of the county or second class city described in
subsection (a) must adopt a resolution that:
(1) commits the county or second class city to an additional five
(5) years as a member of the development authority, beginning
at the end of the current five (5) year period; or
(2) withdraws the county or second class city from membership
in the development authority not earlier than the end of the
current five (5) year period.
(d) The fiscal body of a county or second class city described in
subsection (a) must adopt a resolution under subsection (c) during
each five (5) year period in which the county or second class city is
a member of the development authority.
(e) A county or second class city described in subsection (a) may
withdraw from a development authority as provided in this section
without the approval of the development board.
(f) If at the end of a five (5) year period a county described in
subsection (a) does not withdraw from the development authority
under this section and remains a member of the development
authority, the municipalities in the county may not withdraw from
the development authority and remain members of the development
authority.
(g) If at the end of a five (5) year period a county described in
subsection (a) withdraws from the development authority under this
section, the municipalities in the county are also withdrawn from the
development authority on the effective date of the county's
withdrawal.
As added by P.L.232-2007, SEC.7.
IC 36-7.6-2-6
Liability for unpaid transfers after withdrawal
Sec. 6. A county or municipality that withdraws from a
development authority under section 5 of this chapter is liable to the
development authority for any unpaid transfers under IC 36-7.6-4-2
that become due before the withdrawal of the county or municipality
from the development authority is effective.
As added by P.L.232-2007, SEC.7.
IC 36-7.6-2-7
Development board; members
Sec. 7. (a) A development authority is governed by a development
board appointed under this section.
(b) A development board is composed of the following members:
(1) One (1) member appointed by the executive of each county
that is a member of the development authority.
(2) One (1) member appointed by the executive of each second
class city that is a member of the development authority.
(3) If the development authority receives or will receive an
appropriation, a grant, or a distribution of money from the state,
one (1) or more members appointed by the governor under
section 8 of this chapter, if approved by the development board.
(c) A member appointed to the development board must have
knowledge of and at least five (5) years professional work experience
in at least one (1) of the following:
(1) Rail transportation or air transportation.
(2) Regional economic development.
(3) Business or finance.
As added by P.L.232-2007, SEC.7.
IC 36-7.6-2-8
Addition of member appointed by the governor
Sec. 8. (a) If a development authority receives or will receive an
appropriation, a grant, or a distribution of money from the state, the
development board may adopt a resolution to add to the development
board one (1) or more members appointed by the governor.
(b) If a development board adopts a resolution under this section,
the governor shall appoint to the development board the number of
members specified in the resolution.
(c) A member appointed by the governor under this section must
meet the knowledge and professional work experience requirements
of section 7(c) of this chapter.
(d) If the governor appoints a member to a development board
under this section, the governor retains the authority to appoint a
member to the development board regardless of whether the state
continues to appropriate, grant, or distribute money to the
development authority.
As added by P.L.232-2007, SEC.7.
IC 36-7.6-2-9
Terms; reappointment; oath; per diem
Sec. 9. (a) A member appointed to a development board serves a
four (4) year term. However, a member serves at the pleasure of the
appointing authority. A member may be reappointed to subsequent
terms.
(b) If a vacancy occurs on a development board, the appointing
authority that made the initial appointment shall fill the vacancy by
appointing a new member for the remainder of the vacated term.
(c) Each member appointed to a development board, before
entering upon the duties of office, must take and subscribe an oath of
office under IC 5-4-1, which shall be endorsed upon the certificate
of appointment and filed with the records of the development board.
(d) A member appointed to a development board is not entitled to
receive any compensation for performance of the member's duties.
However, a member is entitled to a per diem from the development
authority for the member's participation in development board
meetings. The amount of the per diem is equal to the amount of the
per diem provided under IC 4-10-11-2.1(b).
As added by P.L.232-2007, SEC.7.
IC 36-7.6-2-10
Officers
Sec. 10. (a) In January of each year, a development board shall
hold an organizational meeting at which the development board shall
elect the following officers from the members of the development
board:
(1) A chair.
(2) A vice chair.
(3) A secretary-treasurer.
(b) The affirmative vote of at least a majority of the appointed
members of a development board is necessary to elect an officer
under subsection (a).
(c) An officer elected under subsection (a) serves from the date of
the officer's election until the officer's successor is elected and
qualified.
As added by P.L.232-2007, SEC.7.
IC 36-7.6-2-11
Quarterly meetings; calling meetings; quorum; authorization of
action
Sec. 11. (a) A development board shall meet at least quarterly.
(b) The chair of a development board or any two (2) members of
a development board may call a special meeting of the development
board.
(c) A majority of the appointed members of a development board
constitutes a quorum.
(d) The affirmative votes of at least a majority of the appointed
members of a development board are necessary to authorize any
action of the development authority.
As added by P.L.232-2007, SEC.7.
IC 36-7.6-2-12
Bylaws and rules
Sec. 12. A development board may adopt the bylaws and rules
that the development board considers necessary for the proper
conduct of the development board's duties and the safeguarding of
the development authority's funds and property.
As added by P.L.232-2007, SEC.7.
IC 36-7.6-2-13
Common construction wage, public purchasing, and public works
project laws apply
Sec. 13. (a) A development authority shall comply with IC 5-16-7
(common construction wage), IC 5-22 (public purchasing),
IC 36-1-12 (public work projects), and any applicable federal bidding
statutes and regulations. An eligible political subdivision that
receives a loan, a grant, or other financial assistance from a
development authority or enters into a lease with a development
authority must comply with applicable federal, state, and local public
purchasing and bidding laws and regulations. However, a purchasing
agency (as defined in IC 5-22-2-25) of an eligible political
subdivision may:
(1) assign or sell a lease for property to a development
authority; or
(2) enter into a lease for property with a development authority;
at any price and under any other terms and conditions as may be
determined by the eligible political subdivision and the development
authority. However, before making an assignment or a sale of a lease
or entering into a lease under this section that would otherwise be
subject to IC 5-22, the eligible political subdivision or its purchasing
agent must obtain or cause to be obtained a purchase price for the
property to be subject to the lease from the lowest responsible and
responsive bidder in accordance with the requirements for the
purchase of supplies under IC 5-22.
(b) In addition to the provisions of subsection (a), with respect to
projects undertaken by a development authority, the development
authority shall set a goal for participation by minority business
enterprises and women's business enterprises. The goals must be
consistent with:
(1) the participation goals established by the counties and
municipalities that are members of the development authority;
and
(2) the goals of delivering the project on time and within the
budgeted amount and, insofar as possible, using Indiana
businesses for employees, goods, and services.
As added by P.L.232-2007, SEC.7.
IC 36-7.6-2-14
Annual financial audit
Sec. 14. (a) The office of management and budget shall contract
with a certified public accountant for an annual financial audit of
each development authority. The certified public accountant may not
have a significant financial interest, as determined by the office of
management and budget, in a project, facility, or service funded by
or leased by or to any development authority.
(b) The certified public accountant shall present an audit report
not later than four (4) months after the end of each calendar year and
shall make recommendations to improve the efficiency of
development authority operations. The certified public accountant
shall also perform a study and evaluation of internal accounting
controls and shall express an opinion on the controls that were in
effect during the audit period.
(c) A development authority shall pay the cost of the annual
financial audit under subsection (a). In addition, the state board of
accounts may at any time conduct an audit of any phase of the
operations of a development authority. A development authority shall
pay the cost of any audit by the state board of accounts.
As added by P.L.232-2007, SEC.7.
IC 36-7.6-2-15
Local advisory committees
Sec. 15. Each county or municipality that is member of a
development authority may appoint a local advisory committee to
advise the county or municipality on issues related to the
development authority.
As added by P.L.232-2007, SEC.7.