1. (a) This section applies to a civil taxing unit that has previously:

   1. (1) entered into an interlocal cooperation or similar agreement;
   2. (2) adopted an ordinance or resolution; or

   3. (3) taken any other action;

      offering to provide revenue from the unit's economic development allocation to support and finance a rail project or rail projects (as defined under IC 36-7.5-1-13.5 ).

2. (b) The civil taxing unit may use additional revenue that is allocated each year for economic development purposes under IC 6-3.6-6-9 to provide funding for a rail project. The additional revenue allocated for economic development to provide funding for a rail project shall be paid by the treasurer of state to the treasurer of the northwest Indiana regional development authority under IC 36-7.5-4-2 before certified distributions are made to the county or any civil taxing unit in the county or counties in which the unit is located.
3. (c) A transfer made on behalf of a civil taxing unit under this section after December 31, 2018, is considered to be a payment for services provided to residents by a rail project as such services are rendered.

4. (d) A pledge by the northwest Indiana regional development authority of transferred revenue under this section to the payment of bonds, leases, or obligations under this article or IC 5-1.3 :

   1. (1) constitutes the obligations of the northwest Indiana regional development authority; and

   2. (2) does not constitute an indebtedness of:

      1. (A) a unit described in this section; or

      2. (B) the state;

         within the meaning or application of any constitutional or statutory provision or limitation.

5. (e) Neither the transfer of revenue nor the pledge of revenue transferred under this section is an impairment of contract within the meaning or application of any constitutional provision or limitation because of the following:

   1. (1) The statutes governing local income taxes, including the transferred revenue, have been the subject of legislation annually since 1973, and during that time the statutes have been revised, amended, expanded, limited, and recodified dozens of times.
   2. (2) Owners of bonds, leases, or other obligations to which local income tax revenues have been pledged recognize that the regulation of local income taxes has been extensive and consistent.
   3. (3) All bonds, leases, or other obligations, due to their essential contractual nature, are subject to relevant state and federal law that is enacted after the date of a contract.
   4. (4) The state has a legitimate interest in assisting the northwest Indiana regional development authority in financing rail projects (as defined in IC 36-7.5-1-13.5 ).
6. (f) All proceedings had and actions described in this section are valid pledges under IC 5-1-14-4 as of the date of those pledges or actions and are hereby legalized and declared valid if taken before March 15, 2018.

As added by P.L.189-2018, SEC.61.