Sec. 2.5. (a) This section applies to a unit that has previously:

(1) entered into an interlocal cooperation or other similar agreement;

(2) adopted an ordinance or resolution; or

(3) taken any other action offering to support and finance:

(A) a rail project or rail projects under this chapter; or

(B) the double tracking project under IC 36-7.5-4.5.

(b) The unit may use any legally available revenue to support and finance the projects described in subsection (a)(3), including additional revenue allocated each year for economic development under IC 6-3.6-6-9.

(c) Additional revenue allocated for economic development to support and finance the projects under this section shall be paid by the treasurer of state to the treasurer of the northwest Indiana regional development authority under section 2 of this chapter before certified distributions are made to the county or any civil taxing unit in the county or counties in which the unit is located.

(d) A transfer made on behalf of a unit under subsection (c) after December 31, 2018, is considered to be a payment for services provided to residents by a rail project as those services are rendered.

(e) A pledge by the 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) constitutes the obligations of the northwest Indiana regional development authority; and

(2) does not constitute an indebtedness of:

(A) a unit described in this section; or

(B) the state;

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

(f) 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) 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) 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) 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) The state of Indiana has a legitimate interest in assisting the northwest Indiana regional development authority in financing rail projects.

(g) All proceedings had and actions described in this section are valid pledges under IC 5-1-14-4 as of the date of those proceedings or actions and are hereby legalized and declared valid if taken before March 15, 2018.

As added by P.L.189-2018, SEC.173.