Indiana § 5-1-17-28 - Lease payments from taxes; budget director designee

Full text of Indiana Indiana Code § 5-1-17-28 — Lease payments from taxes; budget director designee, with citation guidance and answers to common questions.

§ 5-1-17-28. Lease payments from taxes; budget director designee

Sec. 28. If the authority enters into a lease with a capital improvement board under section 13 of this chapter or a state agency under section 26 of this chapter, which then enters into a sublease with a capital improvement board under section 26(b) of this chapter, and the rental payments owed by the capital improvement board to the authority under the lease or to the state agency under the sublease are payable from the taxes described in section 25 of this chapter or from the taxes authorized under IC 6-9-35, the budget director may choose the designee of the capital improvement board, which shall receive and deposit the revenues derived from such taxes. The designee shall hold the revenues on behalf of the capital improvement board pursuant to an agreement between the authority and the capital improvement board or between a state agency and the capital improvement board. The agreement shall provide for the application of the revenues in a manner that does not adversely affect the validity of the lease or the sublease, as applicable.

As added by P.L.214-2005, SEC.6.

IC 5-1-17.1Chapter 17.1. Northwest Indiana Stadium Authority

5-1-17.1-0.3General assembly findings 5-1-17.1-1"Authority" 5-1-17.1-2"Board" 5-1-17.1-3"Bonds" 5-1-17.1-4"Capital improvement" 5-1-17.1-4.2"City" 5-1-17.1-4.5"Stadium board" 5-1-17.1-5"State agency" 5-1-17.1-6Establishment 5-1-17.1-7Membership 5-1-17.1-8Meetings; officers; quorum 5-1-17.1-9Bylaws; rules; code of ethics 5-1-17.1-9.5Personal liability of members or employees 5-1-17.1-10Purpose 5-1-17.1-11Powers 5-1-17.1-12Bonds; refunding; leases; property 5-1-17.1-13Lease; findings; term; conditions 5-1-17.1-14Complete authority 5-1-17.1-15Capital improvement plans and specifications; approval 5-1-17.1-16Agreements; common wall; easements; licenses 5-1-17.1-17Capital improvement; land; sale; lease 5-1-17.1-18Bond issues 5-1-17.1-18.5Negotiating with a single bidder for a project 5-1-17.1-19Bonds; complete authority 5-1-17.1-20Bonds; legal investments 5-1-17.1-21Bonds; security 5-1-17.1-22Bond issue for leased property purchase 5-1-17.1-23Tax exemption 5-1-17.1-24Bonds; contesting validity 5-1-17.1-24.1Bonds; issuance; city must impose excise tax 5-1-17.1-25Leases between authority and state agency 5-1-17.1-26Real property conveyance without bid or advertisement 5-1-17.1-27Lease payments from taxes; budget director designee

IC 5-1-17.1-0.3General assembly findings Sec. 0.3. The general assembly finds the following:

(1) Northwest Indiana as a region and the city face unique and distinct challenges and opportunities related to the economic development issues associated with the construction and maintenance of a world-class stadium facility in the city.

(2) A unique approach is required to ensure that northwest Indiana has sufficient revenue sources to allow it to meet these challenges and opportunities.

(3) The powers and responsibilities provided to northwest Indiana and to the northwest Indiana stadium authority created by this chapter are appropriate and necessary to carry out the public purposes of encouraging and fostering economic development in northwest Indiana and constructing a world-class stadium facility in the city.

(4) The relocation of a National Football League franchised professional football team in northwest Indiana poses unique challenges due to the need for development of a world-class football stadium and related infrastructure that would not be needed apart from the needs related to the relocation of a National Football League franchised professional football team in the city.

(5) The relocation of a National Football League franchised professional football team in the city is critical to successful economic development in the city and northwest Indiana and is a public purpose.

(6) Encouragement of economic development in northwest Indiana will:

(A) provide significant economic activity, a substantial portion of which results from persons residing outside Indiana, which may attract new businesses and encourage existing businesses to remain or expand in the city and northwest Indiana;

(B) promote the city and northwest Indiana to residents outside Indiana, which may attract residents outside Indiana and new businesses to relocate to the city and northwest Indiana area;

(D) encourage overall economic growth in northwest Indiana and in Indiana.

(7) Northwest Indiana faces unique challenges in the development of infrastructure and other facilities necessary to promote economic development:

(A) as a result of its need to rely on sources of revenue other than property taxes;

(B) due to the large number of tax exempt properties located in northwest Indiana; and

(8) Economic development benefits the health and welfare of the people of Indiana, is a public use and purpose for which public money may be spent, and is of public utility and benefit.

As added by P.L.44-2026, SEC.1.

IC 5-1-17.1-1"Authority" Sec. 1. As used in this chapter, "authority" refers to the northwest Indiana stadium authority created by this chapter.

As added by P.L.44-2026, SEC.1.

IC 5-1-17.1-2"Board" Sec. 2. As used in this chapter, "board" refers to the board of directors of the authority.

As added by P.L.44-2026, SEC.1.

IC 5-1-17.1-3"Bonds" Sec. 3. As used in this chapter, "bonds" means bonds, notes, commercial paper, or other evidences of indebtedness. The term includes obligations (as defined in IC 8-9.5-9-3) and swap agreements (as defined in IC 8-9.5-9-4).

As added by P.L.44-2026, SEC.1.

IC 5-1-17.1-4"Capital improvement" Sec. 4. As used in this chapter, "capital improvement" means the building, facilities, or improvements that the board determines will be of general public benefit or welfare and will promote the cultural, recreational, public, or civic well-being of the city and northwest Indiana. This includes the land comprising the site, equipment, heating and air conditioning facilities, sewage disposal facilities, landscaping, walks, drives, parking facilities, and other structures, facilities, appurtenances, materials, and supplies that are necessary to make any building, facility, or improvement suitable for the use for which it was constructed.

As added by P.L.44-2026, SEC.1.

IC 5-1-17.1-4.2"City" Sec. 4.2. As used in this chapter, "city" means the city of Hammond, Indiana.

As added by P.L.44-2026, SEC.1.

IC 5-1-17.1-4.5"Stadium board" Sec. 4.5. As used in this chapter, "stadium board" refers to the northwest Indiana stadium board created by 36-10-9.5.

As added by P.L.44-2026, SEC.1.

IC 5-1-17.1-5"State agency" Sec. 5. As used in this chapter, "state agency" means any of the following:

(1) An authority, a board, a commission, a committee, a department, a division, or other instrumentality of state government.

(2) The Indiana finance authority created by IC 5-1.2-3.

As added by P.L.44-2026, SEC.1.

IC 5-1-17.1-6Establishment Sec. 6. A northwest Indiana stadium authority is hereby created as a separate body corporate and politic as an instrumentality of the state to acquire, construct, equip, own, lease, and finance facilities for lease to or for the benefit of the stadium board. The Indiana finance authority shall provide staff support to the board of directors appointed under section 7 of this chapter.

As added by P.L.44-2026, SEC.1.

IC 5-1-17.1-7Membership Sec. 7. (a) The board is composed of the following members who must be residents of Indiana:

(1) The director of the state budget agency, or the director's designee, who shall serve as chair of the board.

(2) One (1) member appointed by the executive of the city, who shall serve as the vice chair of the board.

(3) The public finance director or the director's designee.

(b) If Lake County adopts an ordinance imposing a food and beverage tax pursuant to IC 6-9-36-3 and adopts an ordinance increasing the Lake County innkeeper's tax pursuant to IC 6-9-2-1.5, the following two (2) members shall be added to the board:

(1) One (1) member appointed by the county executive of Lake County.

(2) One (1) member selected by the public finance director who shall be from Lake County.

(c) If Porter County adopts an ordinance imposing a food and beverage tax pursuant to IC 6-9-36-3, the following two (2) members shall be added to the board:

(1) One (1) member appointed by the county executive of Porter County.

(2) One (1) member selected by the public finance director who shall be from Porter County.

(d) A member appointed under subsection (a)(2) serves an initial term that expires December 31, 2027, and each fourth year thereafter. The member may be reappointed by the executive of the city to subsequent terms. The executive of the city shall fill a vacancy in the membership under subsection (a)(2) by appointing a new member for the remainder of the vacated term.

(e) Members appointed under subsection (a)(3), subsection (b)(2), and subsection (c)(2) serve an initial term that expires December 31, 2028, and each fourth year thereafter. The members may be reappointed to subsequent terms. The public finance director shall fill a vacancy to the membership under subsection (a)(3), subsection (b)(2), and subsection (c)(2) by appointing a new member for the vacated term.

(f) A member appointed under subsection (b)(1) serves an initial term that expires December 31, 2028, and each fourth year thereafter. The member may be reappointed by the county executive of Lake County to subsequent terms. The county executive of Lake County shall fill a vacancy in the membership under subsection (b)(1) by appointing a new member for the remainder of the vacated term.

(g) A member appointed under subsection (c)(1) serves an initial term that expires December 31, 2028, and each fourth year thereafter. The member may be reappointed by the county executive of Porter County to subsequent terms. The county executive of Porter County shall fill a vacancy in the membership under subsection (c)(1) by appointing a new member for the remainder of the vacated term.

(h) A member appointed under subsection (a)(2), subsection (a)(3), subsection (b)(1), subsection (b)(2), subsection (c)(1), and subsection (c)(2):

(1) continues to serve after the expiration of the appointment until a successor is appointed and qualified; and

(2) may be removed with or without cause by the appointing authority.

(i) Each member appointed under subsection (a)(2), subsection (a)(3), subsection (b)(1), subsection (b)(2), subsection (c)(1), and subsection (c)(2), 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 board.

As added by P.L.44-2026, SEC.1.

IC 5-1-17.1-8Meetings; officers; quorum Sec. 8. (a) The board shall hold an annual organizational meeting.

(b) The board shall elect one (1) member secretary-treasurer to perform the duties of those offices. The secretary-treasurer shall serve from the date of the member's election and until the member's successor is elected and qualified.

(d) The following apply:

(1) Two (2) members constitute a quorum, if no members are appointed to the board under section 7(b) and 7(c) of this chapter.

(2) Three (3) members constitute a quorum, if members are appointed to the board under one (1) but not both section 7(b) and 7(c) of this chapter.

(3) Four (4) members constitute a quorum, if members are appointed to the board under both section 7(b) and 7(c) of this chapter.

The concurrence of a majority of the members is necessary to authorize any action.

(e) Subject to IC 5-14-1.5-3.6, members of the board may participate in a meeting of the board by electronic communication.

As added by P.L.44-2026, SEC.1.

IC 5-1-17.1-9Bylaws; rules; code of ethics Sec. 9. (a) The board may adopt the bylaws and rules it considers necessary for the proper conduct of its duties and the safeguarding of the funds and property entrusted to its care.

(b) The board shall, without complying with IC 4-22-2, adopt the code of ethics in executive order 05-12 for its members and employees.

As added by P.L.44-2026, SEC.1.

IC 5-1-17.1-9.5Personal liability of members or employees Sec. 9.5. The members, officers and employees of the authority executing bonds, leases, obligations, or other agreements under this chapter are not subject to personal liability or accountability by reason of any act authorized by this chapter.

As added by P.L.44-2026, SEC.1.

IC 5-1-17.1-10Purpose Sec. 10. The authority is organized for the following purposes:

(1) Acquiring, financing, constructing, and leasing land and capital improvements to or for the benefit of the stadium board.

(2) Financing and constructing additional improvements to capital improvements owned by the authority and leasing them to or for the benefit of the stadium board.

(3) Acquiring land or all or a portion of one (1) or more capital improvements from the stadium board by purchase or lease and leasing the land or these capital improvements back to the stadium board, with any additional improvements that may be made to them.

(4) Acquiring all or a portion of one (1) or more capital improvements from the stadium board by purchase or lease to fund or refund indebtedness incurred on account of those capital improvements to enable the stadium board to make a savings in debt service obligations or lease rental obligations or to obtain relief from covenants that the stadium board considers to be unduly burdensome.

As added by P.L.44-2026, SEC.1.

IC 5-1-17.1-11Powers Sec. 11. (a) The authority may also:

(1) finance, improve, construct, reconstruct, renovate, purchase, lease, acquire, and equip land and capital improvements;

(2) lease the land or those capital improvements to the stadium board;

(3) sue, be sued, plead, and be impleaded;

(4) condemn, appropriate, lease, rent, purchase, and hold any real or personal property needed or considered useful in connection with capital improvements;

(5) acquire real or personal property by gift, devise, or bequest and hold, use, or dispose of that property for the purposes authorized by this chapter;

(6) after giving notice, enter upon any lots or lands for the purpose of surveying or examining them to determine the location of a capital improvement;

(7) design, order, contract for, and construct, reconstruct, and renovate any capital improvements or improvements thereto;

(8) employ managers, superintendents, architects, engineers, attorneys, auditors, clerks, construction managers, and other employees;

(9) make and enter into all contracts and agreements, including agreements to arbitrate, that are necessary or incidental to the performance of its duties and the execution of its powers under this chapter;

(10) acquire in the name of the authority by the exercise of the right of condemnation, in the manner provided in subsection (c), public or private lands, or rights in lands, rights-of-way, property, rights, easements, and interests, as it considers necessary for carrying out this chapter; and

(11) take any other action necessary to implement its purposes as set forth in section 10 of this chapter.

(b) If the authority is unable to agree with the owners, lessees, or occupants of any real property selected for the purposes of this chapter, the authority may proceed to procure the condemnation of the property under IC 32-24-1. The authority may not institute a proceeding until the authority has adopted a resolution that:

(1) describes the real property sought to be acquired and the purpose for which the real property is to be used;

(2) declares that the public interest and necessity require the acquisition by the authority of the property involved; and

(3) sets out any other facts that the authority considers necessary or pertinent.

The resolution is conclusive evidence of the public necessity of the proposed acquisition and shall be referred to the attorney general for action, in the name of the authority, in the circuit or superior court of the county in which the real property is located.

As added by P.L.44-2026, SEC.1.

IC 5-1-17.1-12Bonds; refunding; leases; property Sec. 12. (a) Bonds issued under IC 36-10-9.5 or prior law may be refunded as provided in this section.

(b) The stadium board may:

(1) lease all or a portion of land or a capital improvement or improvements to the authority, which may be at a nominal lease rental with a lease back to the stadium board, conditioned upon the authority assuming bonds issued under IC 36-10-9.5 or prior law and issuing its bonds to refund those bonds; and

(2) sell all or a portion of land or a capital improvement or improvements to the authority for a price sufficient to provide for the refunding of those bonds and lease back the land or capital improvement or improvements from the authority.

As added by P.L.44-2026, SEC.1.

IC 5-1-17.1-13Lease; findings; term; conditions Sec. 13. (a) Before a lease may be entered into by the stadium board under this chapter, the stadium board must find that the lease rental provided for is fair and reasonable.

(b) A lease or sublease of land or capital improvements from the authority, or from a state agency under section 25 of this chapter, to the stadium board:

(1) may not have a term exceeding forty (40) years;

(2) may not require payment of lease rentals for a newly constructed capital improvement or for improvements to an existing capital improvement until the capital improvement or improvements thereto have been completed and are ready for occupancy;

(3) may contain provisions:

(A) allowing the stadium board to continue to operate an existing capital improvement until completion of the improvements, reconstruction, or renovation of that capital improvement or any other capital improvement; and

(B) requiring payment of lease rentals for land, for an existing capital improvement being used, reconstructed, or renovated, or for any other existing capital improvement;

(4) may contain an option to renew the lease for the same or shorter term on the conditions provided in the lease;

(5) must contain an option for the stadium board to purchase the capital improvement upon the terms stated in the lease during the term of the lease for a price equal to the amount required to pay all indebtedness incurred on account of the capital improvement, including indebtedness incurred for the refunding of that indebtedness;

(6) may be entered into before acquisition or construction of a capital improvement;

(7) may provide that the stadium board shall agree to:

(A) pay all taxes and assessments thereon;

(B) maintain insurance thereon for the benefit of the authority;

(D) pay a deposit or series of deposits to the authority from any funds legally available to the stadium board before the commencement of the lease to secure the performance of the stadium board's the obligations under the lease;

(8) subject to IC 36-10-9.5-11, may provide that the lease rental payments by the stadium board shall be made from:

(A) proceeds of the Hammond admissions tax imposed under IC 6-9-78, which the stadium board or its designee receives pursuant to that chapter;

(B) that part of the proceeds of the Lake County and Porter County food and beverage tax imposed under IC 6-9-36, which the stadium board or its designee receives pursuant to that chapter;

(C) that part of the proceeds of the Hammond food and beverage tax imposed under IC 6-9-58, which the stadium board or its designee receives pursuant to that chapter;

(D) that part of the proceeds of the Lake County innkeeper's tax imposed under IC 6-9-2, which the stadium board or its designee receives pursuant to that chapter;

(E) revenue captured under IC 36-7-31.6;

(F) revenue captured under IC 36-7-32.6;

(G) any other funds available to the stadium board; or

(H) any combination of the sources described in clauses (A) through (G);

(9) subject to subdivision (10), may provide that the stadium board is responsible for the operation and maintenance of the capital improvement upon completion of construction, including the negotiation and maintenance of agreements with tenants or users of the capital improvement;

(10) must provide that, during the term of the lease, the authority retains the right to approve any lease agreements and amendments to any lease agreements between the stadium board and any National Football League franchised professional football team that will use the capital improvement; and

(11) must provide that:

(A) subject to the terms of the lease, the stadium board will retain all revenues from operation of the capital improvement; and

(B) the authority has no responsibility to fund the ongoing maintenance and operations of the capital improvement.

(c) The stadium board may designate the authority as its agent to receive on behalf of the stadium board any of the revenues identified in subsection (b)(8).

(d) All information prepared by the stadium board or a political subdivision served by the stadium board with respect to a capital improvement proposed to be financed under this chapter, including a construction budget and timeline, must be provided to the budget director.

As added by P.L.44-2026, SEC.1.

IC 5-1-17.1-14Complete authority Sec. 14. This chapter contains full and complete authority for leases between the authority and the stadium board. No law, procedure, proceedings, publications, notices, consents, approvals, orders, or acts by the board or the stadium board or any other officer, department, agency, or instrumentality of the state or any political subdivision is required to enter into any lease, except as prescribed in this chapter.

As added by P.L.44-2026, SEC.1.

IC 5-1-17.1-15Capital improvement plans and specifications; approval Sec. 15. If the lease provides for a capital improvement or improvements thereto to be constructed by the authority, the plans and specifications shall be submitted to and approved by all agencies designated by law to pass on plans and specifications for public buildings.

As added by P.L.44-2026, SEC.1.

IC 5-1-17.1-16Agreements; common wall; easements; licenses Sec. 16. The authority and the stadium board may enter into common wall (party wall) agreements or other agreements concerning easements or licenses. These agreements shall be recorded with the recorder of the county in which the capital improvement is located.

As added by P.L.44-2026, SEC.1.

IC 5-1-17.1-17Capital improvement; land; sale; lease Sec. 17. (a) The stadium board may lease for a nominal lease rental, or sell to the authority, one (1) or more capital improvements or portions thereof or land upon which a capital improvement is located or is to be constructed.

(b) Any lease of all or a portion of a capital improvement by the stadium board to the authority must be for a term equal to the term of the lease of that capital improvement back to the stadium board.

As added by P.L.44-2026, SEC.1.

IC 5-1-17.1-18Bond issues Sec. 18. (a) Subject to subsection (h), the authority may issue bonds for the purpose of obtaining money to pay the cost of:

(1) acquiring real or personal property, including existing capital improvements;

(2) constructing, improving, reconstructing, or renovating one (1) or more capital improvements; or

(3) funding or refunding bonds issued under IC 36-10-9.5 or prior law.

(b) The bonds are payable from the lease rentals from the lease of the capital improvements for which the bonds were issued, insurance proceeds, and any other funds pledged or available.

(d) The terms and form of the bonds shall either be set out in the resolution or in a form of trust indenture approved by the resolution.

(e) The bonds shall mature within forty (40) years.

(f) The board shall sell the bonds at public or private sale upon the terms determined by the board.

(g) All money received from any bonds issued under this chapter shall be applied to the payment of the cost of the acquisition or construction, or both, of capital improvements, or the cost of refunding or refinancing outstanding bonds, for which the bonds are issued. The cost may include:

(1) planning and development of the facility and all buildings, facilities, structures, and improvements related to it;

(2) acquisition of a site and clearing and preparing the site for construction;

(3) equipment, facilities, structures, and improvements that are necessary or desirable to make the capital improvement suitable for use and operations;

(4) architectural, engineering, consultant, and attorney's fees;

(5) incidental expenses in connection with the issuance and sale of bonds;

(6) reserves for principal and interest;

(7) interest during construction;

(8) financial advisory fees;

(9) insurance during construction;

(10) municipal bond insurance, debt service reserve insurance, letters of credit, or other credit enhancement; and

(11) in the case of refunding or refinancing, payment of the principal of, redemption premiums (if any) for, and interest on, the bonds being refunded or refinanced.

(h) The authority may not issue bonds under this chapter unless the authority first finds that the following conditions are met:

(1) The stadium board and the authority have entered into a written agreement concerning the terms of the financing of the facility. This agreement must include the following provisions:

(A) The stadium board agrees to take any legal action that the authority considers necessary to facilitate the financing of the facility, including entering into agreements during the design and construction of the facility or a sublease of a capital improvement to any state agency that is then leased by the authority to any state agency under section 25 of this chapter.

(B) The stadium board is prohibited from taking any other action with respect to the financing of the facility without the prior approval of the authority. The authority is not bound by the terms of any agreement entered into by the stadium board with respect to the financing of the facility without the prior approval of the authority.

(C) As the project financier, the Indiana finance authority (or its successor agency) and the public finance director will be responsible for selecting all investment bankers, bond counsel, trustees, and financial advisors.

(D) The authority agrees to consult with the staff of the stadium board on an as needed basis during the design and construction of the facility, and the stadium board agrees to make its staff available for this purpose.

(E) The authority, the city, the stadium board, and the National Football League franchised professional football team must commit to using their best efforts to assist and cooperate with one another to design and construct the facility on time and on budget.

(2) The stadium board and the National Football League franchised professional football team have entered into a lease for the stadium part of the facility that has been approved by the authority and has a term of at least thirty-five (35) years.

As added by P.L.44-2026, SEC.1.

IC 5-1-17.1-18.5Negotiating with a single bidder for a project Sec. 18.5. (a) This section applies to bids received with respect to a capital improvement under this chapter:

(1) that is constructed by, for, or on behalf of the authority; and

(2) for which only one (1) bid was received from a responsible bidder.

(b) The board may attempt to negotiate a more advantageous proposal and contract with the bidder if the board determines that rebidding:

(1) is not practicable or advantageous; or

(2) would adversely affect the construction schedule or budget of the project.

(1) A copy of all documents that are included as part of the invitation for bids.

(2) A list of all persons to whom copies of the invitation for bids were given, including the following information:

(A) A log of the dates and times of each meeting with the bidder.

(B) The name of each bidder who responded and the dollar amount of the bid.

(3) The basis on which the bid was accepted.

(4) Documentation of the board's negotiating process with the bidder. The documentation must include the following:

(A) A log of the dates and times of each meeting with the bidder.

(B) A description of the nature of all communications with the bidder.

(5) The entire contents of the contract file except for proprietary information included with the bid, such as trade secrets, manufacturing processes, and financial information that was not required to be made available for public inspection by the terms of the invitation for bids.

As added by P.L.44-2026, SEC.1.

IC 5-1-17.1-19Bonds; complete authority Sec. 19. This chapter contains full and complete authority for the issuance of bonds. No law, procedure, proceedings, publications, notices, consents, approvals, orders, or acts by the board or any other officer, department, agency, or instrumentality of the state or of any political subdivision is required to issue any bonds, except as prescribed in this chapter.

As added by P.L.44-2026, SEC.1.

IC 5-1-17.1-20Bonds; legal investments Sec. 20. Bonds issued under this chapter are legal investments for private trust funds and the funds of 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, guaranty loan and savings associations, mortgage guaranty companies, small loan companies, industrial loan and investment companies, and other financial institutions organized under Indiana law.

As added by P.L.44-2026, SEC.1.

IC 5-1-17.1-21Bonds; security Sec. 21. (a) The authority may secure bonds issued under this chapter by a trust indenture between the authority and a corporate trustee, which may be any trust company or national or bank having the powers of a trust company in Indiana.

(b) The trust indenture may:

(1) pledge or assign lease rentals, receipts, and income from leased capital improvements, but may not mortgage land or capital improvements;

(2) contain reasonable and proper provisions for protecting and enforcing the rights and remedies of the bondholders, including covenants setting forth the duties of the authority and board;

(3) set forth the rights and remedies of bondholders and trustee; and

(4) restrict the individual right of action of bondholders.

(c) Any pledge or assignment made by the authority under this section is valid and binding from the time that the pledge or assignment is made, against all persons whether or not they have notice of the lien. Any trust indenture by which a pledge is created or an assignment made need not be filed or recorded. The lien is perfected against third parties by filing the trust indenture in the records of the board.

As added by P.L.44-2026, SEC.1.

IC 5-1-17.1-22Bond issue for leased property purchase Sec. 22. If the stadium board exercises its option to purchase leased property, it may issue its bonds as authorized by statute.

As added by P.L.44-2026, SEC.1.

IC 5-1-17.1-23Tax exemption Sec. 23. All:

(1) property owned by the authority;

(2) property leased to or by the authority;

(3) revenues of the authority; and

(4) bonds issued by the authority, the interest on the bonds, the proceeds received by a holder from the sale of bonds to the extent of the holder's cost of acquisition, proceeds received upon redemption before maturity, proceeds received at maturity, and the receipt of interest in proceeds;

are exempt from taxation in Indiana for all purposes except the financial institutions tax imposed under IC 6-5.5.

As added by P.L.44-2026, SEC.1.

IC 5-1-17.1-24Bonds; contesting validity Sec. 24. Any action to contest the validity of bonds to be issued under this chapter may not be brought after the fifteenth day following:

(1) the receipt of bids for the bonds, if the bonds are sold at public sale; or

(2) the publication one (1) time in a newspaper of general circulation published in either Lake County or Porter County of notice of the execution and delivery of the contract for the sale of bonds;

whichever occurs first.

As added by P.L.44-2026, SEC.1.

IC 5-1-17.1-24.1Bonds; issuance; city must impose excise tax Sec. 24.1. The authority shall not issue bonds to finance any capital improvement in the city unless the fiscal body of the city imposes the tax authorized by IC 6-9-78-2 by the maximum amount authorized by IC 6-9-78-3(a).

As added by P.L.44-2026, SEC.1.

IC 5-1-17.1-25Leases between authority and state agency Sec. 25. (a) Notwithstanding any other law, any capital improvement that may be leased by the authority to the stadium board under this chapter may also be leased by the authority to any state agency to accomplish the purposes of this chapter. Any lease between the authority and a state agency under this chapter:

(1) must set forth the terms and conditions of the use and occupancy under the lease;

(2) must set forth the amounts agreed to be paid at stated intervals for the use and occupancy under the lease;

(3) must provide that the state agency is not obligated to continue to pay for the use and occupancy under the lease but is instead required to vacate the facility if it is shown that the terms and conditions of the use and occupancy and the amount to be paid for the use and occupancy are unjust and unreasonable considering the value of the services and facilities thereby afforded;

(4) must provide that the state agency is required to vacate the facility if funds have not been appropriated or are not available to pay any sum agreed to be paid for use and occupancy when due;

(5) may provide for such costs as maintenance, operations, taxes, and insurance to be paid by the state agency;

(6) may contain an option to renew the lease;

(7) may contain an option to purchase the facility for an amount equal to the amount required to pay the principal and interest of indebtedness of the authority incurred on account of the facility and expenses of the authority attributable to the facility;

(8) may provide for payment of sums for use and occupancy of an existing capital improvement being used by the state agency, but may not provide for payment of sums for use and occupancy of a new capital improvement until the construction of the capital improvement or portion thereof has been completed and the new capital improvement or a portion thereof is available for use and occupancy by the state agency; and

(9) may contain any other provisions agreeable to the authority and the state agency.

(b) Any state agency that leases a capital improvement from the authority under this chapter may sublease the capital improvement to the stadium board under the terms and conditions set forth in section 13(a) of this chapter, section 13(b)(1) through 13(b)(4) of this chapter, section 13(b)(6) through 13(b)(8) of this chapter, and section 13(c) of this chapter.

(c) Notwithstanding any other law, in anticipation of the construction of any capital improvement and the lease of that capital improvement by the authority to a state agency, the authority may acquire an existing facility owned by the state agency and then lease the facility to the state agency. A lease made under this subsection shall describe the capital improvement to be constructed and may provide for the payment of rent by the state agency for the use of the existing facility. If such rent is to be paid pursuant to the lease, the lease shall provide that upon completion of the construction of the capital improvement, the capital improvement shall be substituted for the existing facility under the lease. The rent required to be paid by the state agency pursuant to the lease shall not constitute a debt of the state for purposes of the Constitution of the State of Indiana. A lease entered into under this subsection is subject to the same requirements for a lease entered into under subsection (a) with respect to both the existing facility and the capital improvement anticipated to be constructed.

(d) This chapter contains full and complete authority for leases between the authority and a state agency and subleases between a state agency and the stadium board. No laws, procedures, proceedings, publications, notices, consents, approvals, orders, or acts by the board, the governing body of any state agency or the stadium board or any other officer, department, agency, or instrumentality of the state or any political subdivision is required to enter into any such lease or sublease, except as prescribed in this chapter.

As added by P.L.44-2026, SEC.1.

IC 5-1-17.1-26Real property conveyance without bid or advertisement Sec. 26. In order to enable the authority to lease a capital improvement or existing facility to a state agency under section 25 of this chapter, the public finance director or fiscal body of a municipality (as defined in IC 5-11-1-16) in northwest Indiana may convey, transfer, or sell, with or without consideration, real property (including the buildings, structures, and improvements), title to which is held in the name of the state, to the authority, without being required to advertise or solicit bids or proposals, in order to accomplish the governmental purposes of this chapter.

As added by P.L.44-2026, SEC.1.

IC 5-1-17.1-27Lease payments from taxes; budget director designee Sec. 27. If the authority enters into a lease with the stadium board under section 13 of this chapter or a state agency under section 25 of this chapter, which then enters into a sublease with the stadium board under section 25(b) of this chapter, and the rental payments owed by the stadium board to the authority under the lease or to the state agency under the sublease are payable from the revenues described in section 13(b)(8) of this chapter or from the taxes authorized under IC 6-9-2, IC 6-9-36, or IC 6-9-58, the budget director may choose the designee of the stadium board, which shall receive and deposit the revenues derived from such taxes. The designee shall hold the revenues on behalf of the stadium board pursuant to an agreement between the authority and the stadium board or between a state agency and the stadium board. The agreement shall provide for the application of the revenues in a manner that does not adversely affect the validity of the lease or the sublease, as applicable.

As added by P.L.44-2026, SEC.1.

IC 5-1-17.5Chapter 17.5. Motorsports Investment District

5-1-17.5-1Legislative findings 5-1-17.5-2"Admissions fees" 5-1-17.5-3Repealed 5-1-17.5-4"Authority" 5-1-17.5-5"Board" 5-1-17.5-6"Bonds" 5-1-17.5-7"Budget agency" 5-1-17.5-8"Budget committee" 5-1-17.5-9"Commission" 5-1-17.5-10"Department" 5-1-17.5-11"Motorsports investment district" 5-1-17.5-12"Person" 5-1-17.5-13"Political subdivision" 5-1-17.5-14"Qualified motorsports facility" 5-1-17.5-15Commission established; purpose 5-1-17.5-16Board of directors of the commission 5-1-17.5-16Board of directors of the commission 5-1-17.5-17Powers of the commission 5-1-17.5-18Staff support and expenses; employees 5-1-17.5-19Surety bonds of directors 5-1-17.5-20Personal liability of directors 5-1-17.5-21Annual audit 5-1-17.5-22Annual report 5-1-17.5-23Director's interest in contracts or in sale or lease of property prohibited 5-1-17.5-24Resolution by commission establishing a district; public hearing; required findings by commission; territory of district 5-1-17.5-25Allocation of amounts appropriated to the commission; expiration date of district 5-1-17.5-26Filing of informational tax returns by certain taxpayers; guidelines 5-1-17.5-27Submission to the budget agency of resolution establishing district 5-1-17.5-28Budget committee review; approval by budget agency; required findings before resolution may be approved 5-1-17.5-29Information to be provided to department of state revenue 5-1-17.5-30Motorsports investment district fund; request for appropriations; use of money in the fund 5-1-17.5-30.5Establishment of motorsports facility fund; deposits; reversions; requests for appropriations 5-1-17.5-31Powers of Indiana finance authority 5-1-17.5-32Lease of structures and improvements; requirements 5-1-17.5-33Option to renew lease 5-1-17.5-34Option to purchase leased property; conveyance of property; requirements 5-1-17.5-35Authorization and execution of leases by commission board of directors 5-1-17.5-36Commission approval of financed improvements; liens and security interests; transfer of controlling ownership interest in qualified motorsports facility; credits against obligations of owners 5-1-17.5-37Issuance of bonds; terms and conditions; use of bond proceeds 5-1-17.5-38Authority for certain actions by the commission and the Indiana finance authority; bonds as legal investments 5-1-17.5-39Securing of bonds; trust indenture; validity of pledge or assignment 5-1-17.5-40Action to contest validity of bonds 5-1-17.5-41Equal opportunities in procurement and contracting 5-1-17.5-42Income tax withholding; department of state revenue guidelines 5-1-17.5-43Office of management and budget review

IC 5-1-17.5-1Legislative findings Sec. 1. The general assembly finds the following:

(1) Marion County and certain surrounding counties and municipalities located in those counties face unique and distinct challenges and opportunities related to the economic development issues associated with the maintenance of a world-class motorsports facility in the town of Speedway.

(2) A unique approach is required to ensure that such a motorsports facility can be maintained to allow these counties and municipalities to meet these challenges and opportunities.

(3) The powers and responsibilities provided to the Indiana motorsports commission created by this chapter and the Indiana finance authority are appropriate and necessary to carry out the public purposes of encouraging and fostering economic development in central Indiana and maintaining a world-class motorsports facility in the town of Speedway.

(4) Encouragement of economic development in central Indiana will:

(A) generate significant economic activity, a substantial part of which results from persons residing outside Indiana, which may attract new businesses and encourage existing businesses to remain or expand in central Indiana;

(B) promote central Indiana to residents outside Indiana, which may attract residents outside Indiana and new businesses to relocate to central Indiana;

(D) encourage overall economic growth in central Indiana and in Indiana.

(5) Marion County faces unique challenges in the development of infrastructure and other facilities necessary to promote economic development as a result of its need to rely on sources of revenue other than property taxes, due to the large number of tax-exempt properties located in Marion County, because Indianapolis is the seat of state government and Marion County government, and because Marion County is home to multiple institutions of higher education and the site of numerous state and regional nonprofit corporations.

(6) Economic development benefits the health and welfare of the people of Indiana, is a public use and purpose for which public money may be spent, and is of public utility and benefit.

As added by P.L.233-2013, SEC.5.

IC 5-1-17.5-2"Admissions fees" Sec. 2. As used in this chapter, "admissions fees" means the admissions fees under IC 6-8-14.

As added by P.L.233-2013, SEC.5.

IC 5-1-17.5-3RepealedAs added by P.L.233-2013, SEC.5. Repealed by P.L.189-2018, SEC.22.

IC 5-1-17.5-4"Authority" Sec. 4. As used in this chapter, "authority" refers to the Indiana finance authority.

As added by P.L.233-2013, SEC.5.

IC 5-1-17.5-5"Board" Sec. 5. As used in this chapter, "board" refers to the board of directors of the commission.

As added by P.L.233-2013, SEC.5.

IC 5-1-17.5-6"Bonds" Sec. 6. As used in this chapter, "bonds" has the meaning set forth in IC 5-1.2-2-5.

As added by P.L.233-2013, SEC.5. Amended by P.L.189-2018, SEC.23.

IC 5-1-17.5-7"Budget agency" Sec. 7. As used in this chapter, "budget agency" means the budget agency established by IC 4-12-1-3.

As added by P.L.233-2013, SEC.5.

IC 5-1-17.5-8"Budget committee" Sec. 8. As used in this chapter, "budget committee" means the budget committee established by IC 4-12-1-3.

As added by P.L.233-2013, SEC.5.

IC 5-1-17.5-9"Commission" Sec. 9. As used in this chapter, "commission" refers to the Indiana motorsports commission created by this chapter.

As added by P.L.233-2013, SEC.5.

IC 5-1-17.5-10"Department" Sec. 10. As used in this chapter, "department" refers to the department of state revenue.

As added by P.L.233-2013, SEC.5.

IC 5-1-17.5-11"Motorsports investment district" Sec. 11. As used in this chapter, "motorsports investment district" means the geographic area established as a motorsports investment district under this chapter.

As added by P.L.233-2013, SEC.5.

IC 5-1-17.5-12"Person" Sec. 12. As used in this chapter, "person" has the meaning set forth in IC 36-1-2-12.

As added by P.L.233-2013, SEC.5.

IC 5-1-17.5-13"Political subdivision" Sec. 13. As used in this chapter, "political subdivision" has the meaning set forth in IC 36-1-2-13.

As added by P.L.233-2013, SEC.5.

IC 5-1-17.5-14"Qualified motorsports facility" Sec. 14. (a) As used in this chapter, "qualified motorsports facility" means a facility that:

(1) is located in Indiana;

(2) is used for professional motorsports racing events;

(3) has a motorsports racetrack that is greater than two (2) miles in length; and

(4) holds at least two (2) professional motorsports racing events annually at which the combined admissions total at least two hundred thousand (200,000).

(b) For purposes of this section, a professional motorsports racing event includes a professional motorsports racing practice session that is open to the general public.

As added by P.L.233-2013, SEC.5.

IC 5-1-17.5-15Commission established; purpose Sec. 15. The Indiana motorsports commission is created in Indiana as a separate body corporate and politic, as an instrumentality of the state, to finance and lease real and personal property improvements for the benefit of an owner of a qualified motorsports facility within a motorsports investment district.

As added by P.L.233-2013, SEC.5.

IC 5-1-17.5-16Board of directors of the commission Note: This version of section effective until 7-1-2027. See also following version of this section, effective 7-1-2027.

Sec. 16. (a) The board of directors of the commission is composed of the following five (5) directors, who serve at the pleasure of the governor and must be residents of Indiana:

(1) The budget director, or the budget director's designee, who shall serve as chair of the commission.

(2) Four (4) directors appointed by the governor. The president pro tempore of the senate and the speaker of the house of representatives may each make one (1) recommendation to the governor concerning the appointment of a director under this subdivision.

(b) The commission shall be governed by the board. The directors may not be elected public officials of the state or any political subdivision. Except for the budget director, the directors first appointed continue in office for terms expiring on July 1, 2014, July 1, 2015, July 1, 2016, and July 1, 2017, and until their respective successors are duly appointed and qualified.

(c) Except for the budget director, the term of any director first appointed must be designated by the governor. If a vacancy occurs on the board, the governor shall fill the vacancy by appointing a new director. The successor of each such director is appointed for a term of four (4) years, except that any person appointed to fill a vacancy is appointed to serve only for the unexpired term and until a successor is duly appointed and qualified. A director is eligible for reappointment.

(d) The directors shall hold an initial organizational meeting within thirty (30) days after the board's appointment and after public notice given by the budget director in accordance with IC 5-3-1-4. As soon as practicable after January 15 of each year, the board shall hold its annual organizational meeting. The board shall elect one (1) of the directors as vice chair and another director as secretary-treasurer to perform the duties of those offices. These officers serve from the date of their election and until their successors are elected and qualified. Special meetings may be called by the chair or any two (2) directors of the board.

(e) Three (3) directors constitute a quorum of the board, and the affirmative vote of at least three (3) directors is necessary for any official action taken by the board. A vacancy in the membership of the board does not impair the rights of a quorum to exercise all the rights and perform all the duties of the board.

(f) Except for the budget director, the directors are entitled to reimbursement for traveling expenses and other expenses actually incurred in connection with their duties as provided by law. Directors are not entitled to the salary per diem provided by IC 4-10-11-2.1(b) or any other compensation while performing their duties.

(g) All expenses incurred in carrying out the provisions of this chapter shall be payable solely from funds provided under this chapter or from the proceeds of bonds issued by the authority under this chapter, and no liability or obligation shall be incurred by the commission or the authority under this chapter beyond the extent to which money shall have been provided under the authority of this chapter.

(h) The board:

(1) is responsible for implementing the powers and duties of the commission under this chapter;

(2) may adopt bylaws for the regulation of the affairs of the board, the conduct of the business of the commission, and the safeguarding of the funds and property entrusted to the commission; and

(3) shall, without complying with IC 4-22-2, adopt the code of ethics specified in executive order 05-12 for its members and employees.

As added by P.L.233-2013, SEC.5. Amended by P.L.2-2014, SEC.9.

IC 5-1-17.5-16Board of directors of the commission Note: This version of section effective 7-1-2027. See also preceding version of this section, effective until 7-1-2027.

Sec. 16. (a) The board of directors of the commission is composed of the following five (5) directors, who serve at the pleasure of the governor and must be residents of Indiana:

(1) The budget director, or the budget director's designee, who shall serve as chair of the commission.

(d) The directors shall hold an initial organizational meeting within thirty (30) days after the board's appointment and after public notice given by the budget director in accordance with IC 5-3-1-1.5. As soon as practicable after January 15 of each year, the board shall hold its annual organizational meeting. The board shall elect one (1) of the directors as vice chair and another director as secretary-treasurer to perform the duties of those offices. These officers serve from the date of their election and until their successors are elected and qualified. Special meetings may be called by the chair or any two (2) directors of the board.

(h) The board:

(1) is responsible for implementing the powers and duties of the commission under this chapter;

(2) may adopt bylaws for the regulation of the affairs of the board, the conduct of the business of the commission, and the safeguarding of the funds and property entrusted to the commission; and

(3) shall, without complying with IC 4-22-2, adopt the code of ethics specified in executive order 05-12 for its members and employees.

As added by P.L.233-2013, SEC.5. Amended by P.L.2-2014, SEC.9; P.L.157-2026, SEC.20.

IC 5-1-17.5-17Powers of the commission Sec. 17. The commission is authorized and empowered to do the following:

(1) To sue and be sued, and to plead and be impleaded in the name of the commission.

(2) To receive and accept from any federal agency grants and to receive and accept aid or contributions from any source of 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.

(3) To hold, use, administer, and expend such sum or sums as may at any time be appropriated or transferred to the commission.

(4) To purchase, acquire, or hold debt securities or other investments for the commission's own account at prices and in a manner the commission considers advisable, and to sell or otherwise dispose of those securities or investments at prices without relation to cost and in a manner the commission considers advisable.

(5) To lease real or personal property as lessor or lessee from or to the authority or any person under this chapter.

(6) To do all acts and things necessary or proper to carry out the powers expressly granted in this chapter.

As added by P.L.233-2013, SEC.5.

IC 5-1-17.5-18Staff support and expenses; employees Sec. 18. The authority shall provide staff support for the commission and pay all expenses of the commission from funds transferred to the commission from the motorsports investment district fund established under section 30 of this chapter. In providing such staff, the authority may employ, without the approval of the attorney general or any other state officer, any accounting and technical experts, attorneys, and other officers, employees, and agents, permanent or temporary, as may be necessary in the authority's judgment to carry out the efficient operation of the commission, including professionals who can prepare a report on the matters to be considered in making the findings of the commission set forth in section 24 of this chapter, and the commission may fix their compensation and title. Employees of the authority employed under this section shall not be considered employees of the state.

As added by P.L.233-2013, SEC.5. Amended by P.L.2-2014, SEC.10.

IC 5-1-17.5-19Surety bonds of directors Sec. 19. (a) Except as provided in subsection (b), each director of the board shall execute a surety bond in the penal sum of fifty thousand dollars ($50,000). To the extent an individual described in this section is already covered by a bond required by state law, the individual is not required to obtain another bond, so long as the bond required by state law is in at least the penal sum specified in this section and covers the individual's activities for the commission.

(b) Instead of a bond, the chair may execute a blanket surety bond covering each director.

(c) Each surety bond must be conditioned upon the faithful performance of the individual's duties and shall be issued by a surety company authorized to transact business in this state as surety. At all times after the issuance of any surety bonds, each individual described in this section shall maintain the surety bonds in full force and effect. All costs of the surety bonds shall be borne by the commission.

As added by P.L.233-2013, SEC.5.

IC 5-1-17.5-20Personal liability of directors Sec. 20. The directors of the board are not subject to personal liability or accountability by reason of any act authorized by this chapter with respect to the:

(1) issuance of any obligations;

(2) execution of any lease or sublease; or

(3) execution of any other agreement under this chapter.

As added by P.L.233-2013, SEC.5.

IC 5-1-17.5-21Annual audit Sec. 21. The commission shall cause an audit or review of its books and accounts to be made at least once each year by certified public accountants.

As added by P.L.233-2013, SEC.5.

IC 5-1-17.5-22Annual report Sec. 22. The commission shall, following the close of each fiscal year of the commission, submit an annual report of its activities for the preceding year to the governor, the budget committee, and the legislative council. An annual report submitted under this section to the legislative council must be in an electronic format under IC 5-14-6. Each report must set forth a complete operating and financial statement for the commission during the fiscal year the report covers.

As added by P.L.233-2013, SEC.5.

IC 5-1-17.5-23Director's interest in contracts or in sale or lease of property prohibited Sec. 23. (a) A director of the commission who knowingly has an interest:

(1) in any contract with the commission; or

(2) in the sale or lease of any real or personal property to the commission;

commits a Class A misdemeanor. All such contracts or leases are void.

(b) This section does not apply to contracts for purchases of property, real or personal, between the commission and:

(1) the authority;

(2) any political subdivision; or

(3) any department or agency of the state.

As added by P.L.233-2013, SEC.5.

IC 5-1-17.5-24Resolution by commission establishing a district; public hearing; required findings by commission; territory of district Sec. 24. (a) The commission may, after a public hearing, adopt a resolution establishing a motorsports investment district. Notice of the public hearing must be provided in accordance with IC 5-3-1.

(b) In establishing the motorsports investment district, the commission must make the following findings:

(1) There are improvements that will be undertaken in the motorsports investment district that will have a positive effect on the activities of a qualified motorsports facility.

(2) The improvements that will be undertaken in the motorsports investment district will benefit the public health and welfare and will be of public utility and benefit.

(3) The improvements that will be undertaken in the motorsports investment district will protect or increase state and local tax bases and tax revenues.

(1) the geographic area that is included within the qualified motorsports facility;

(2) adjacent property that is:

(A) related to the operation of the qualified motorsports facility; and

(B) owned by the owner of the qualified motorsports facility or a subsidiary or affiliate of the qualified motorsports facility;

(3) property on which activities related to the qualified motorsports facility occur; and

(4) other public property specified by the commission;

as determined in the resolution adopted by the commission.

As added by P.L.233-2013, SEC.5.

IC 5-1-17.5-25Allocation of amounts appropriated to the commission; expiration date of district Sec. 25. A resolution establishing a motorsports investment district must provide for the allocation to the motorsports investment district fund established under section 30 of this chapter of the money appropriated to the commission. The resolution must state an expiration date for the motorsports investment district, which must be the later of:

(1) the date that is thirty (30) years after the date of the adoption of the resolution; or

(2) the date on which the owner or owners of a qualified motorsports facility no longer have a financial liability to the commission.

Subject to section 24(c) of this chapter, the commission shall specify in the resolution the geographic area that is included within the motorsports investment district.

As added by P.L.233-2013, SEC.5.

IC 5-1-17.5-26Filing of informational tax returns by certain taxpayers; guidelines Sec. 26. (a) A taxpayer operating in the motorsports investment district that files a consolidated return with the department also shall file annually an informational return with the department for each business location of the taxpayer within the motorsports investment district.

(b) If the department is unable to determine the extent to which taxes remitted by a taxpayer are gross retail incremental amounts or income tax incremental amounts for purposes of IC 4-10-23, the department shall use the best information available in calculating those incremental amounts.

As added by P.L.233-2013, SEC.5.

IC 5-1-17.5-27Submission to the budget agency of resolution establishing district Sec. 27. Upon adoption by the commission of a resolution establishing a motorsports investment district under this chapter, the commission shall submit the resolution to the budget agency.

As added by P.L.233-2013, SEC.5.

IC 5-1-17.5-28Budget committee review; approval by budget agency; required findings before resolution may be approved Sec. 28. The budget agency, after review by the budget committee, shall approve the resolution establishing the motorsports investment district if the budget agency finds that the improvements to be made within the qualified motorsports facility are economically sound and will benefit the people of Indiana by protecting or increasing state and local tax bases and tax revenues for at least the duration of the motorsports investment district.

As added by P.L.233-2013, SEC.5.

IC 5-1-17.5-29Information to be provided to department of state revenue Sec. 29. (a) If the commission adopts a resolution establishing a motorsports investment district, the commission shall notify the department in an electronic format approved by the department of the adoption of the resolution and shall include with the notification a complete list of the following:

(1) Employers and vendors with a responsibility to remit taxes in the motorsports investment district.

(2) Street names and the range of street numbers of each street in the motorsports investment district.

(b) The commission shall update the list prepared under subsection (a) before July 1 of each year.

(c) At the request of the department, the commission, the owner or owners of a motorsports facility located in the district, and any political subdivision in which all or a part of the district is located shall disclose to the department the names of the employers described in subsection (a) and such other information that may assist in the determination of the gross retail incremental amounts or income tax incremental amounts for purposes of IC 4-10-23.

(d) At the request of the department, a political subdivision in which the qualified motorsports facility is located shall provide to the department information requested by the department concerning permits issued by the political subdivision to vendors operating within the motorsports investment district.

As added by P.L.233-2013, SEC.5.

IC 5-1-17.5-30Motorsports investment district fund; request for appropriations; use of money in the fund Sec. 30. (a) If a motorsports investment district is established under this chapter, the commission, or the authority for and on behalf of the commission, shall establish a motorsports investment district fund for the motorsports investment district. The fund shall be administered by the commission. Except as provided in subsection (g), money in the fund does not revert to the state general fund at the end of a state fiscal year.

(b) The commission shall deposit amounts appropriated to the commission in the motorsports investment district fund as provided in this chapter.

(c) The commission shall request that the general assembly make an appropriation not to exceed five million dollars ($5,000,000) to the commission for deposit in the motorsports investment district fund in each state fiscal year following the creation of the motor sports investment district fund, until the earlier of:

(1) the date that is twenty-two (22) years after the date on which appropriations are first deposited in the motorsports investment district fund; or

(2) the date on which all bonds issued by the authority under section 37 of this chapter are no longer deemed outstanding.

The commission may use money in the motorsports investment district fund for the purposes of this chapter.

(d) Amounts held in the motorsports investment district fund may be distributed to a trustee of any bonds that are issued or to be issued by the authority under section 37 of this chapter and that are secured by rent to be paid by the commission under a lease entered into with the authority under section 32 of this chapter.

(e) In addition, to the extent the rent due in a state fiscal year under leases of structures or other capital improvements that are within a motorsports investment district is anticipated to be insufficient to pay debt service on bonds issued under section 37 of this chapter, when due in that state fiscal year, the authority shall make the request under subsection (c) upon reaching the determination.

(f) Money in the motorsports investment district fund may be used by the commission, the authority, or a trustee for the following:

(1) Payment of the rent due under leases of structures or other capital improvements that are located within a motorsports investment district.

(2) Payment of all expenses incurred by the commission or the authority in connection with the exercise of its duties and obligations set forth in this chapter, including those incurred in connection with the establishment of the motorsports investment district.

(3) Payment of debt service on bonds issued under section 37 of this chapter, but only to the extent of any deposit made to the motorsports investment district fund from appropriations requested under subsection (e) or section 30.5(d) of this chapter.

(g) On the date that all bonds issued by the authority under section 37 of this chapter are no longer deemed outstanding and all expenses incurred by the commission or the authority in connection with the exercise of its duties and obligations set forth in this chapter have been paid, all money then remaining on deposit in the motorsports investment district fund reverts to the state general fund.

As added by P.L.233-2013, SEC.5. Amended by P.L.213-2015, SEC.55; P.L.149-2016, SEC.16.

IC 5-1-17.5-30.5Establishment of motorsports facility fund; deposits; reversions; requests for appropriations Sec. 30.5. (a) If a motorsports investment district is established under this chapter, the commission shall establish a motorsports facility fund for the motorsports investment district.

(b) During the term of the written agreement entered into by:

(1) the owner or owners of the qualified motorsports facility;

(2) the authority; and

(3) the commission;

the commission shall, in each state fiscal year, deposit in the motorsports facility fund two million dollars ($2,000,000) solely from payments established under section 37(f)(1) of this chapter.

(c) Subject to subsection (e), the commission, or the authority for and on behalf of the commission, shall request that the general assembly make an appropriation to the commission in each state fiscal year in which the written agreement described in subsection (b) is in effect. The amount of the requested appropriation must be equal to the amount that the commission is required to deposit into the motorsports facility fund under subsection (b) for that state fiscal year. An appropriation made to the commission under this subsection:

(1) must be deposited in the motorsports investment district fund established under section 30 of this chapter; and

(2) is in addition to an amount appropriated under section 30 of this chapter.

(d) In addition, to the extent the rent due in a state fiscal year under leases of structures or other capital improvements that are within a motorsports investment district, plus the appropriation requested under section 30(e) of this chapter, are anticipated to be insufficient to pay debt service on bonds issued under section 37 of this chapter, when due in that state fiscal year, the authority shall make the request under subsection (c) upon reaching the determination.

(e) The commission may not request an appropriation under subsection (c) after the earlier of:

(1) the date specified in section 30(c)(1) of this chapter; or

(2) the date specified in section 30(c)(2) of this chapter.

(f) Money in the motorsports facility fund reverts to the state general fund on June 30 of each year.

As added by P.L.190-2014, SEC.8. Amended by P.L.213-2015, SEC.56.

IC 5-1-17.5-31Powers of Indiana finance authority Sec. 31. The authority may do any of the following:

(1) Finance the improvement, construction, reconstruction, renovation, and acquisition of real and personal property improvements within a qualified motorsports facility.

(2) Exercise the authority's powers under IC 5-1.2-4 within a qualified motorsports facility.

As added by P.L.233-2013, SEC.5. Amended by P.L.189-2018, SEC.24.

IC 5-1-17.5-32Lease of structures and improvements; requirements Sec. 32. (a) The commission may lease all or any part of structures and capital improvements located within a qualified motorsports facility from the authority, and the authority may lease all or any part of structures and capital improvements located within a qualified motorsports facility to the commission. Any property subject to such a lease is not exempt from taxation under the laws of the state solely by reason of it being subject to such a lease. In a lease from the authority to the commission, the commission may pledge:

(1) amounts appropriated to the commission and deposited in the motorsports investment district fund;

(2) any other rental payments, receipts, and income from the leased structures and capital improvements; or

(3) any other money legally available to the commission for the payment of rent under such a lease.

(b) The amount of any such rent may include the amount necessary to pay the principal of, redemption premium, and interest on any bonds issued by the authority under section 37 of this chapter, when due, the amount of any necessary reserves, and the amount of any expenses incurred by the authority or the commission in connection with the exercise of its duties and obligations set forth in this chapter.

(1) must set forth the terms and conditions of the use and occupancy, if applicable, under the lease;

(2) must set forth the amounts agreed to be paid at stated intervals for the use and occupancy, if applicable, under the lease;

(3) must provide that the commission is not obligated to continue to pay for the use and occupancy, if applicable, under the lease, but is instead required to vacate the equipment, structures, and capital improvements subject to the lease, if it is shown that the terms and conditions of such use and occupancy and the amount to be paid for such use and occupancy are unjust and unreasonable considering the value of the services, equipment, structures, and capital improvements thereby afforded;

(4) must provide that the commission is required to vacate such equipment, structures, and capital improvements if funds are not available to pay any sum agreed to be paid for such use and occupancy when due; and

(5) may contain any other provisions agreed upon by the authority and the commission.

(d) If the commission enters into such a lease with the authority, it may sublease the structures and capital improvements subject to the lease to the owner or owners of the qualified motorsports facility.

(e) The commission may, in anticipation of the acquisition, construction, reconstruction, renovation, or equipping of any such structures or capital improvements, including any equipment or necessary appurtenances, enter into a lease with the authority before any such construction, reconstruction, renovation, or equipping. Such a lease must require the payment of lease rental by the commission to begin when the equipment, structures, or improvements have been acquired or completed and are ready for use and occupancy, if applicable, but not before that time.

(f) If necessary to enter into a lease under subsection (a):

(1) the commission may lease structures and capital improvements located within a motorsports investment district from the owner or owners of the qualified motorsports facility and sublease all or any part of such structures and capital improvements to the authority for a nominal rent; and

(2) the authority may lease all or any part of such structures and capital improvements from the commission for a nominal rent.

As added by P.L.233-2013, SEC.5.

IC 5-1-17.5-33Option to renew lease Sec. 33. A lease from the authority to the commission under section 32 of this chapter may provide the commission with an option to renew the lease for the same term or a shorter term, on the conditions provided in the lease.

As added by P.L.233-2013, SEC.5.

IC 5-1-17.5-34Option to purchase leased property; conveyance of property; requirements Sec. 34. (a) A lease from the authority to the commission under section 32 of this chapter shall give the commission an option to purchase the leased property before the expiration of the term of the lease:

(1) on the date or dates in each year that are fixed by the lease; and

(2) at a price to be computed by a method set forth in the lease.

However, such a lease may not provide, or be construed to provide, that the commission is under an obligation to purchase the leased structures or improvements or is under an obligation respecting any creditors or bondholders of the authority.

(b) If the commission does not exercise the option to purchase the property, then upon the expiration of the lease and upon full performance by the commission, the property becomes the absolute property of the commission or the authority's leasehold interest in such property terminates, as applicable. The authority shall take the steps necessary to convey title or such leasehold interest to the commission.

(c) If the commission purchases the leased property as provided in subsection (a) or in the event described in subsection (b), the commission may convey, with or without consideration, its ownership or leasehold interest, as applicable, in such property to the owner or owners of the qualified motorsports facility. However, the commission shall not convey its ownership or leasehold interest in any such property to the owner or owners of the qualified motorsports facility until:

(1) the date on which the aggregate amount of credits provided to the owner or owners of the qualified motorsports facility under IC 4-10-23 equals or exceeds the aggregate of the amount of money appropriated to the commission and used to pay rent by the commission to the authority under any lease entered into between the authority and the commission under this chapter and any expenses that are incurred by the authority or the commission under this chapter and are not paid out of such rent; and

(2) all bonds issued by the authority under section 37 of this chapter are no longer deemed outstanding.

As added by P.L.233-2013, SEC.5.

IC 5-1-17.5-35Authorization and execution of leases by commission board of directors Sec. 35. Each lease under section 32 of this chapter must be authorized by resolution of the board, which shall be entered in the official records of the commission. Such a lease must be executed on behalf of the commission by the chair or the vice-chair and the secretary-treasurer of the commission, and on behalf of the authority by the chairman or the vice chairman of the authority and the public finance director.

As added by P.L.233-2013, SEC.5.

IC 5-1-17.5-36Commission approval of financed improvements; liens and security interests; transfer of controlling ownership interest in qualified motorsports facility; credits against obligations of owners Sec. 36. (a) Improvements financed under this chapter must be approved by the commission. The commission shall secure the obligations of the owner or owners of the qualified motorsports facility to the commission under a lease or sublease under this chapter with liens or security interests, which may include:

(1) perfected security interests in personal property;

(2) a mortgage lien on the real property; or

(3) such other security determined to be appropriate by the commission and the authority.

(b) On the date that the aggregate amount of credits provided to the owner or owners of the qualified motorsports facility under IC 4-10-23 equals or exceeds the aggregate of the amount of the appropriations made to the commission and used to pay rent by the commission to the authority under any lease entered into between the authority and the commission under this chapter and any expenses that are incurred by the authority or the commission under this chapter and are not paid out of such rent, and all bonds issued by the authority under section 37 of this chapter are no longer deemed outstanding, the commission shall take the legal steps required to terminate each of its security interests in and mortgage liens on the improvements described in subsection (a).

(c) If a controlling ownership interest in a qualified motorsports facility is sold after the authority issues bonds under this chapter, the commission shall determine whether there exists good cause not to allow the purchaser to assume the motorsports facility's obligations under this chapter. If the commission determines that no such good cause exists, the commission shall be deemed to have accepted the purchaser's assumption of the motorsports facility's obligations under this chapter, and the purchaser shall be deemed to have assumed and become obligated to fully perform those obligations. If the commission determines that there exists good cause not to approve the purchaser's assumption of the motorsports facility's obligations under this chapter, the commission shall be deemed to have disapproved such assumption and the commission may require that the owner or owners of the qualified motorsports facility shall pay or cause to be paid to the commission an amount to be deposited in the motorsports investment district fund sufficient to pay the cost of defeasing all outstanding bonds issued by the authority under section 37 of this chapter and paying all expenses of the commission and the authority incurred in connection with such defeasance. For purposes of this section, the following shall not be deemed to be the sale of a controlling ownership interest:

(1) Transfers among the qualified motorsports facility and its subsidiaries and affiliates existing at the time the owner or owners of the qualified motorsports facility enter into the written agreement under this chapter concerning the terms of the financing of the improvements under this chapter.

(2) Transfers among the qualified motorsports facility's existing equity owners (as determined at the time the owner or owners of the qualified motorsports facility enter into the written agreement under this chapter concerning the terms of the financing of the improvements under this chapter).

(3) Transfers between the qualified motorsports facility's existing equity owners (as determined at the time the owner or owners of the qualified motorsports facility enter into the written agreement under this chapter concerning the terms of the financing of the improvements under this chapter) and trusts, family limited partnerships, and other entities for estate planning purposes.

(d) Money deposited in the motorsports investment district fund may be used to pay the cost of defeasing all outstanding bonds issued by the authority under section 37 of this chapter and paying all other expenses of the commission and the authority incurred in connection with such defeasance.

(e) If, after the date payments are received by the commission from the owner or owners of the qualified motorsports facility under subsection (c), all bonds issued by the authority under section 37 of this chapter are no longer deemed outstanding, and all expenses incurred by the commission or the authority in connection with the exercise of its duties and obligations set forth in this chapter have been paid, all money then remaining in the motorsports investment district fund reverts to the state general fund.

As added by P.L.233-2013, SEC.5.

IC 5-1-17.5-37Issuance of bonds; terms and conditions; use of bond proceeds Sec. 37. (a) Subject to subsection (f), the authority may issue bonds for the purpose of obtaining money to pay the cost of improving, constructing, reconstructing, renovating, acquiring, or equipping improvements within a qualified motorsports facility.

(b) The terms and form of the bonds must be set out either in the resolution or in a form of trust indenture approved by the resolution.

(d) The authority shall sell the bonds at public or private sale upon the terms determined by the authority.

(e) All money received from any bonds issued under this chapter shall be applied to the payment of the cost of improving, constructing, reconstructing, renovating, acquiring, or equipping improvements within a qualified motorsports facility, or payment of the cost of refunding or refinancing outstanding bonds for which the bonds are issued. The cost may include:

(1) planning and development of the improvement and all buildings, facilities, structures, and improvements related to the improvement;

(2) acquisition of a site and clearing and preparing the site for construction;

(3) equipment, facilities, structures, and improvements that are necessary or desirable to make the capital improvement suitable for use and operations;

(4) architectural, engineering, consultant, and attorney's fees;

(5) incidental expenses in connection with the issuance and sale of bonds;

(6) reserves for principal and interest;

(7) interest during construction;

(8) financial advisory fees;

(9) insurance during construction;

(10) bond insurance, debt service reserve insurance, letters of credit, or other credit enhancement; and

(11) in the case of refunding or refinancing, payment of the principal of, redemption premiums (if any) for, and interest on the bonds being refunded or refinanced.

(f) The authority may not issue bonds under this chapter unless:

(1) the owner or owners of the qualified motorsports facility, the authority, and the commission have entered into a written agreement concerning the terms of the financing of the improvements financed under this chapter, including the obligation of the owner or owners of the qualified motorsports facility to make payments in an amount equal to at least two million dollars ($2,000,000) in each state fiscal year to the commission for deposit in the motorsports facility fund during the term of the agreement;

(2) in connection with the issuance of such bonds, the authority has leased the equipment, structures, and capital improvements being financed with the proceeds of the bonds to the commission under a lease under section 32 of this chapter, and the commission has entered into a sublease of such equipment, structures, and capital improvements with the owner or owners of the qualified motorsports facility. Such a sublease must include the terms described in sections 34(c) and 36(c) of this chapter; and

(3) as part of the written agreement concerning the terms of the financing of the improvements, the ultimate parent company of the qualified motorsports facility:

(A) guarantees the full and timely performance of all of the duties, responsibilities, and obligations of the qualified motorsports facility and the owner or owners of the qualified motorsports facility; and

(B) guarantees that if:

(i) the aggregate amount credited to the owner or owners of the qualified motorsports facility under IC 4-10-23-12 from income tax incremental amounts, gross retail incremental amounts, and admissions fees deposited in the state general fund under IC 6-8-14 during the thirty (30) years after the date of the adoption of the resolution establishing the motorsports improvement district; plus

(ii) the amounts deposited in the motorsports facility fund established under section 30.5 of this chapter;

is less than the aggregate of the amount of money appropriated to the commission and used to pay rent by the commission to the authority under any lease entered into between the authority and the commission under this chapter and any expenses that are incurred by the authority or the commission under this chapter and are not paid out of such rent, then the ultimate parent company will pay the difference to the commission.

(g) Each bond issued under this chapter must contain on its face a statement that neither the faith and credit nor the taxing power of the state is pledged to the payment of the principal of or the interest on the bond.

(h) In connection with the issuance of each series of bonds under this section, the authority (or its successor agency) and the public finance director shall be responsible for selecting all investment bankers, bond counsel, trustees, and financial advisors.

As added by P.L.233-2013, SEC.5. Amended by P.L.190-2014, SEC.9.

IC 5-1-17.5-38Authority for certain actions by the commission and the Indiana finance authority; bonds as legal investments Sec. 38. (a) This chapter contains full and complete authority for the issuance of bonds, the improvement, construction, reconstruction, renovation, purchase, lease, acquisition, and equipping of structures and capital improvements located within a motorsports investment district by the commission and the authority, and the leasing of such structures and capital improvements by the commission or the authority. No law, procedure, proceedings, publications, notices, consents, approvals, orders, or acts by the commission, the authority, or any other officer, department, agency, or instrumentality of the state or of any political subdivision is required to issue any bonds under this chapter, to improve, construct, reconstruct, renovate, purchase, lease, acquire, and equip structures and capital improvements located within a motorsports investment district, or to enter into any lease, except as prescribed in this chapter.

(b) Bonds issued under this chapter are legal investments for private trust funds and the funds of 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, guaranty loan and savings associations, mortgage guaranty companies, small loan companies, industrial loan and investment companies, and other financial institutions organized under Indiana law.

As added by P.L.233-2013, SEC.5.

IC 5-1-17.5-39Securing of bonds; trust indenture; validity of pledge or assignment Sec. 39. (a) The authority may secure bonds issued under this chapter by a trust indenture between the authority and a corporate trustee, which may be any trust company or national or state bank within Indiana that has trust powers.

(b) The trust indenture may:

(1) pledge or assign money appropriated to the commission and to be paid as rent by the commission to the authority, but may not mortgage land or capital improvements;

(2) contain reasonable and proper provisions for protecting and enforcing the rights and remedies of the bondholders, including covenants setting forth the duties of the authority;

(3) set forth the rights and remedies of bondholders and the trustee; and

(4) restrict the individual right of action of bondholders.

As added by P.L.233-2013, SEC.5.

IC 5-1-17.5-40Action to contest validity of bonds Sec. 40. Any action to contest the validity of bonds to be issued under this chapter may not be brought after the fifteenth day following:

(1) the receipt of bids for the bonds, if the bonds are sold at public sale; or

(2) the publication one (1) time in a newspaper of general circulation published in the county of notice of the execution and delivery of the contract for the sale of bonds;

whichever occurs first.

As added by P.L.233-2013, SEC.5.

IC 5-1-17.5-41Equal opportunities in procurement and contracting Sec. 41. Improvements financed under this chapter are subject to the provisions of 25 IAC 5 concerning equal opportunities for minority business enterprises and women's business enterprises to participate in procurement and contracting processes. The goal for participation by minority business enterprises shall be fifteen percent (15%), the goal for participation by women's business enterprises shall be eight percent (8%), and the goal for participation by veteran or disabled business enterprises shall be three percent (3%), consistent with 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. In fulfilling the goals, historical precedents in the same market shall be taken into account.

As added by P.L.233-2013, SEC.5.

IC 5-1-17.5-42Income tax withholding; department of state revenue guidelines Sec. 42. The department shall develop guidelines and instructions concerning the appropriate amount of adjusted gross income tax to be withheld from purse money and prizes won for racing in the motorsports investment district.

As added by P.L.233-2013, SEC.5.

IC 5-1-17.5-43Office of management and budget review Sec. 43. The office of management and budget shall in 2023 do the following:

(1) Conduct a review of:

(A) the structures and improvement that have been financed and constructed under this chapter;

(B) the amount of:

(i) the gross retail incremental amounts and income tax incremental amounts remitted for purposes of IC 4-10-23; and

(ii) the motorsports admissions fees that have been remitted under IC 6-8-14;

(D) the status, economic impact, and viability of the qualified motorsports facility.

(2) Before November 1, 2023, submit a copy of the review conducted under subdivision (1) to the budget committee and to the legislative council in an electronic format under IC 5-14-6.

As added by P.L.233-2013, SEC.5.

IC 5-1-18Chapter 18. Reports Concerning Bonds and Leases of Political Subdivisions

5-1-18-1"Bonds" 5-1-18-2"Department" 5-1-18-3"Lease" 5-1-18-4"Lease rentals" 5-1-18-5"Political subdivision" 5-1-18-6Information report for bonds and leases 5-1-18-7Bond report requirements; uniformity; electronic submission 5-1-18-8Lease report requirements; uniformity; electronic submission 5-1-18-9Bonds or leases outstanding; annual summary; annual verification 5-1-18-10Compiled reports; electronic data base; Internet publication 5-1-18-11Information submitted; public record 5-1-18-12Rulemaking power

Source: official Indiana text · Last verified 2026-08-27

Frequently Asked Questions About Indiana § 5-1-17-28

What does Indiana Code § 5-1-17-28 cover?

Section 5-1-17-28 ("Lease payments from taxes; budget director designee") is part of the Indiana Code, the codified statutory law of Indiana. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.

How do I cite Indiana § 5-1-17-28?

A common citation format is "Indiana Code § 5-1-17-28" (Indiana). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.

Is this the official text of Indiana law?

No. This page is for research and education and may not include the most recent amendments. For official current law, check the Indiana official source linked on this page or consult a licensed Indiana attorney.

How does Indiana § 5-1-17-28 apply to my situation?

Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Indiana can advise on how this section applies to you. Contact your state or local bar association for a referral.

Sources & Verification

Official text of § 5-1-17-28 at the Indiana source

Not legal advice. Verify against the official source and consult a licensed attorney in Indiana.

Indiana § 5-1-17-28 - Lease payments from taxes; budget director designee

§ 5-1-17-28. Lease payments from taxes; budget director designee

Related Indiana Legal Topics

Frequently Asked Questions About Indiana § 5-1-17-28

What does Indiana Code § 5-1-17-28 cover?

How do I cite Indiana § 5-1-17-28?

Is this the official text of Indiana law?

How does Indiana § 5-1-17-28 apply to my situation?

Sources & Verification