Indiana 2022 Regular Session

Indiana House Bill HB1367 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2	Introduced Version
3	3	HOUSE BILL No. 1367
4	4	_____
5	5	DIGEST OF INTRODUCED BILL
6	6	Citations Affected: IC 36-7-38.
7	7	Synopsis: Land banks. Makes various changes to the statutes
8	8	governing land banks that concern certain land bank powers,
9	9	objectives, and duties. Provides (except in a county containing a
10	10	consolidated city) that only a majority of directors appointed to the
11	11	board of a land bank must be residents of the county, second class city,
12	12	or third class city. Provides, in the case of a land bank created by an
13	13	interlocal agreement, that only a majority of the members of the board
14	14	of the land bank must be residents of the applicable eligible units that
15	15	establish the land bank. Provides that a land bank may establish
16	16	advisory committees composed of specified community members to
17	17	consult with and advise the land bank on: (1) properties within the
18	18	territory of the land bank that are imposing the greatest harm on
19	19	residents and neighborhoods; (2) resident and neighborhood priorities
20	20	for new uses of land bank properties; and (3) options for potential
21	21	transferees of land bank properties. Provides, subject to certain
22	22	limitations, that a land bank may use an interlocal agreement to
23	23	establish processes to improve the quality of title and marketability of
24	24	property the land bank owns to extinguish any liens that exist on the
25	25	property. Provides that, if a land bank enters into an interlocal
26	26	agreement, any employees of an eligible unit who may be contracted
27	27	to provide staffing services to the land bank pursuant to the interlocal
28	28	agreement retain their status as public employees of the eligible unit.
29	29	Requires a county executive to provide a land bank in the county with
30	30	a list of tracts located in the territory of the land bank that: (1) are
31	31	delinquent on property taxes; and (2) have been offered for public sale
32	32	at least two times and remain unsold; on an annual basis. Requires the
33	33	(Continued next page)
34	34	Effective: July 1, 2022.
35	35	Errington, Clere, Bauer M, O'Brien
36	36	January 11, 2022, read first time and referred to Committee on Local Government.
37	37	2022 IN 1367—LS 7097/DI 129 Digest Continued
38	38	county executive to transfer its interest in a tract on the list to a land
39	39	bank if requested by the land bank not later than 90 days after it
40	40	receives the list.
41	41	2022 IN 1367—LS 7097/DI 1292022 IN 1367—LS 7097/DI 129 Introduced
42	42	Second Regular Session of the 122nd General Assembly (2022)
43	43	PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
44	44	Constitution) is being amended, the text of the existing provision will appear in this style type,
45	45	additions will appear in this style type, and deletions will appear in this style type.
46	46	Additions: Whenever a new statutory provision is being enacted (or a new constitutional
47	47	provision adopted), the text of the new provision will appear in this style type. Also, the
48	48	word NEW will appear in that style type in the introductory clause of each SECTION that adds
49	49	a new provision to the Indiana Code or the Indiana Constitution.
50	50	Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
51	51	between statutes enacted by the 2021 Regular Session of the General Assembly.
52	52	HOUSE BILL No. 1367
53	53	A BILL FOR AN ACT to amend the Indiana Code concerning local
54	54	government.
55	55	Be it enacted by the General Assembly of the State of Indiana:
56	56	1 SECTION 1. IC 36-7-38-1, AS AMENDED BY P.L.26-2020,
57	57	2 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
58	58	3 JULY 1, 2022]: Sec. 1. The following definitions apply throughout this
59	59	4 chapter:
60	60	5 (1) "Distressed real property" includes real property in a neglected
61	61	6 or unmarketable condition.
62	62	7 (2) "Eligible unit" means:
63	63	8 (A) a county;
64	64	9 (B) a consolidated city;
65	65	10 (C) a second class city; or
66	66	11 (D) a third class city;
67	67	12 to which IC 36-7-9 applies.
68	68	13 (3) "Land bank" means an entity established under section 2 of
69	69	14 this chapter.
70	70	15 (4) "Person" means an individual, a corporation, a limited liability
71	71	2022 IN 1367—LS 7097/DI 129 2
72	72	1 company, a partnership, or other legal entity.
73	73	2 (5) "Vacant real property" has the meaning set forth in
74	74	3 IC 36-7-36-5.
75	75	4 SECTION 2. IC 36-7-38-2, AS AMENDED BY P.L.26-2020,
76	76	5 SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
77	77	6 JULY 1, 2022]: Sec. 2. (a) The legislative body of an eligible unit may
78	78	7 adopt an ordinance:
79	79	8 (1) establishing a body corporate and politic; or
80	80	9 (2) directing the executive of the eligible unit to organize a
81	81	10 nonprofit corporation under IC 23-17;
82	82	11 as an independent instrumentality exercising essential governmental
83	83	12 functions.
84	84	13 (b) The legislative bodies of two (2) or more eligible units within a
85	85	14 single county or within two (2) or more contiguous counties may enter
86	86	15 into an interlocal agreement under IC 36-1-7:
87	87	16 (1) establishing a body corporate and politic; or
88	88	17 (2) directing the executive of one (1) of the eligible units entering
89	89	18 into the interlocal agreement to organize a nonprofit corporation
90	90	19 under IC 23-17;
91	91	20 as an independent instrumentality exercising essential governmental
92	92	21 functions.
93	93	22 (c) The primary purpose of a land bank established under subsection
94	94	23 (a) or (b) is to manage and improve the marketability of vacant real
95	95	24 property and distressed real property located in the territory of the
96	96	25 land bank.
97	97	26 (d) An ordinance or interlocal agreement establishing a land bank
98	98	27 must specify:
99	99	28 (1) The name of the land bank.
100	100	29 (2) The number of board members, subject to section 4 of this
101	101	30 chapter.
102	102	31 (e) The territory of a land bank established under subsection (a) is:
103	103	32 (1) in the case of an eligible unit that is a municipality, the
104	104	33 territory of the municipality; or
105	105	34 (2) in the case of an eligible unit that is a county, all the territory
106	106	35 of the county, except for the territory of any municipality in the
107	107	36 county that has established another land bank.
108	108	37 (f) The territory of a land bank established under subsection (b) is
109	109	38 the territory of all the eligible units that have established the land bank,
110	110	39 except for the territory of any municipality that has established another
111	111	40 land bank under subsection (a) or (b).
112	112	41 SECTION 3. IC 36-7-38-4.5, AS ADDED BY P.L.26-2020,
113	113	42 SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
114	114	2022 IN 1367—LS 7097/DI 129 3
115	115	1 JULY 1, 2022]: Sec. 4.5. (a) This section applies to the board of a land
116	116	2 bank established under section 2(b) of this chapter.
117	117	3 (b) The interlocal agreement providing for the establishment of the
118	118	4 land bank must specify:
119	119	5 (1) subject to section 4(a) of this chapter, the number of directors
120	120	6 of the board of the land bank;
121	121	7 (2) any directors that are to serve as ex officio directors of the
122	122	8 board; and
123	123	9 (3) for each director of the board that is to be appointed, the
124	124	10 appointing authority.
125	125	11 (c) The interlocal agreement must also specify that a majority
126	126	12 of directors appointed to the board of the land bank must be
127	127	13 residents of the applicable eligible units that establish the land
128	128	14 bank under section 2(b) of this chapter.
129	129	15 SECTION 4. IC 36-7-38-5, AS ADDED BY P.L.211-2016,
130	130	16 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
131	131	17 JULY 1, 2022]: Sec. 5. (a) This section applies to the board of a county
132	132	18 land bank established by a county that does not have a consolidated
133	133	19 city.
134	134	20 (b) The board of a land bank to which this section applies is
135	135	21 comprised of the following:
136	136	22 (1) A director appointed by the county treasurer. A director
137	137	23 appointed under this subdivision must be a resident of the county.
138	138	24 (2) A director appointed by the county auditor. A director
139	139	25 appointed under this subdivision must be a resident of the county.
140	140	26 (3) Five (5) directors respectively appointed by the executives of
141	141	27 the five (5) municipalities in the county with the five (5) largest
142	142	28 populations, as determined by the most recent federal decennial
143	143	29 census. A director appointed under this subdivision must reside
144	144	30 in the municipality of the appointing authority that appoints the
145	145	31 director.
146	146	32 (4) At most two (2) additional directors appointed, as applicable,
147	147	33 in the manner and subject to the requirements set forth in the land
148	148	34 bank's bylaws.
149	149	35 (c) A majority of the directors appointed under subsection (b)
150	150	36 to the board of a land bank must be residents of the county or the
151	151	37 municipality.
152	152	38 (c) (d) The terms of the initial directors of a land bank to which this
153	153	39 section applies are equal to:
154	154	40 (1) the remainder of the calendar year in which the land bank is
155	155	41 established; plus
156	156	42 (2) a number of additional years equal to:
157	157	2022 IN 1367—LS 7097/DI 129 4
158	158	1 (A) one (1) calendar year, for:
159	159	2 (i) the director appointed under subsection (b)(1);
160	160	3 (ii) the director appointed under subsection (b)(2); and
161	161	4 (iii) the director appointed under subsection (b)(3) by the
162	162	5 executive of the municipality in the county that has the
163	163	6 largest population;
164	164	7 (B) two (2) calendar years, for directors appointed under
165	165	8 subsection (b)(3) by the executives of the municipalities that
166	166	9 have the second through the fourth largest populations in the
167	167	10 county; and
168	168	11 (C) three (3) calendar years, for:
169	169	12 (i) the director appointed under subsection (b)(3) by the
170	170	13 executive of the municipality that has the fifth largest
171	171	14 population in the county; and
172	172	15 (ii) any directors appointed under subsection (b)(4).
173	173	16 SECTION 5. IC 36-7-38-7, AS ADDED BY P.L.211-2016,
174	174	17 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
175	175	18 JULY 1, 2022]: Sec. 7. (a) This section applies to the board of a land
176	176	19 bank established by a second class city.
177	177	20 (b) The board of a land bank to which this section applies is
178	178	21 comprised of the following:
179	179	22 (1) Three (3) directors appointed by the executive of the second
180	180	23 class city. A director appointed under this subdivision must be a
181	181	24 resident of the second class city.
182	182	25 (2) Three (3) directors appointed by the legislative body of the
183	183	26 second class city. A director appointed under this subdivision
184	184	27 must be a resident of the second class city.
185	185	28 (3) A director appointed by the county treasurer of the county in
186	186	29 which the second class city is located, or the county treasurer of
187	187	30 the county in which most residents of the second class city reside,
188	188	31 if the second class city is located in more than one (1) county. A
189	189	32 director appointed under this subdivision must be a resident of the
190	190	33 second class city.
191	191	34 (4) At most two (2) additional directors appointed, as applicable,
192	192	35 in the manner and subject to the requirements set forth in the land
193	193	36 bank's bylaws.
194	194	37 (c) A majority of the directors appointed under subsection (b)
195	195	38 to the board of a land bank must be residents of the second class
196	196	39 city.
197	197	40 (c) (d) The terms of the initial directors of a land bank to which this
198	198	41 section applies are equal to:
199	199	42 (1) the remainder of the calendar year in which the land bank is
200	200	2022 IN 1367—LS 7097/DI 129 5
201	201	1 established; plus
202	202	2 (2) a number of additional years equal to:
203	203	3 (A) one (1) calendar year, for directors appointed under
204	204	4 subsection (b)(1);
205	205	5 (B) two (2) calendar years, for directors appointed under
206	206	6 subsection (b)(2); and
207	207	7 (C) three (3) calendar years, for directors appointed under
208	208	8 subsection (b)(3) or (b)(4).
209	209	9 SECTION 6. IC 36-7-38-7.5, AS ADDED BY P.L.110-2017,
210	210	10 SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
211	211	11 JULY 1, 2022]: Sec. 7.5. (a) This section applies to the board of a land
212	212	12 bank established by a third class city.
213	213	13 (b) The board of a land bank to which this section applies is
214	214	14 comprised of the following:
215	215	15 (1) Three (3) directors appointed by the executive of the third
216	216	16 class city. A director appointed under this subdivision must be a
217	217	17 resident of the third class city.
218	218	18 (2) Three (3) directors appointed by the legislative body of the
219	219	19 third class city. A director appointed under this subdivision must
220	220	20 be a resident of the third class city.
221	221	21 (3) A director appointed by the county treasurer of the county in
222	222	22 which the third class city is located, or the county treasurer of the
223	223	23 county in which most residents of the third class city reside, if the
224	224	24 third class city is located in more than one (1) county. A director
225	225	25 appointed under this subdivision must be a resident of the third
226	226	26 class city.
227	227	27 (4) At most two (2) additional directors appointed, as applicable,
228	228	28 in the manner and subject to the requirements set forth in the land
229	229	29 bank's bylaws.
230	230	30 (c) A majority of the directors appointed under subsection (b)
231	231	31 to the board of a land bank must be residents of the third class city.
232	232	32 (c) (d) The terms of the initial directors of a land bank to which this
233	233	33 section applies are equal to:
234	234	34 (1) the remainder of the calendar year in which the land bank is
235	235	35 established; plus
236	236	36 (2) a number of additional years equal to:
237	237	37 (A) one (1) calendar year, for directors appointed under
238	238	38 subsection (b)(1);
239	239	39 (B) two (2) calendar years, for directors appointed under
240	240	40 subsection (b)(2); and
241	241	41 (C) three (3) calendar years, for directors appointed under
242	242	42 subsection (b)(3) or (b)(4).
243	243	2022 IN 1367—LS 7097/DI 129 6
244	244	1 SECTION 7. IC 36-7-38-7.7 IS ADDED TO THE INDIANA CODE
245	245	2 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
246	246	3 1, 2022]: Sec. 7.7. (a) A land bank may establish one (1) or more
247	247	4 advisory committees to consult with and advise the land bank on:
248	248	5 (1) properties within the territory of the land bank that are
249	249	6 imposing the greatest harm on residents and neighborhoods;
250	250	7 (2) resident and neighborhood priorities for new uses of land
251	251	8 bank properties; and
252	252	9 (3) options for potential transferees of land bank properties.
253	253	10 (b) As appropriate to the location of the real property of the
254	254	11 land bank and if a land bank elects to establish an advisory
255	255	12 committee under this section, the membership of the advisory
256	256	13 community shall include but is not limited to individuals from
257	257	14 formal and informal neighborhood specific community
258	258	15 associations, residents' associations, faith communities, community
259	259	16 development corporations, and anchor institutions.
260	260	17 SECTION 8. IC 36-7-38-8, AS ADDED BY P.L.211-2016,
261	261	18 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
262	262	19 JULY 1, 2022]: Sec. 8. Except as otherwise provided in this chapter,
263	263	20 a land bank is granted all powers necessary, convenient, or appropriate
264	264	21 to carry out and effectuate the land bank's public and corporate
265	265	22 purposes, which include the power to do the following:
266	266	23 (1) Sue or be sued in the land bank's own name.
267	267	24 (2) Enter into contracts.
268	268	25 (3) Establish accounts with financial institutions.
269	269	26 (4) Acquire by:
270	270	27 (A) purchase;
271	271	28 (B) exchange;
272	272	29 (C) gift;
273	273	30 (D) donation;
274	274	31 (E) grant;
275	275	32 (F) lease; or
276	276	33 (G) any combination of the methods listed in clauses (A)
277	277	34 through (F);
278	278	35 any real or personal property or interest in property needed
279	279	36 to carry out the mission of the land bank.
280	280	37 (4) (5) Acquire, lease, improve, repair, renovate, and dispose of
281	281	38 property.
282	282	39 (5) (6) Borrow money, including the ability to issue bonds.
283	283	40 (6) (7) Pledge collateral.
284	284	41 (7) (8) Make investments.
285	285	42 (8) (9) Hire employees and other appropriate staff, including an
286	286	2022 IN 1367—LS 7097/DI 129 7
287	287	1 executive director. In accordance with section 18 of this
288	288	2 chapter, a land bank may determine the qualifications and fix
289	289	3 the compensation and benefits provided for employees, other
290	290	4 staff, and the executive director.
291	291	5 (9) (10) Procure insurance.
292	292	6 SECTION 9. IC 36-7-38-9, AS ADDED BY P.L.211-2016,
293	293	7 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
294	294	8 JULY 1, 2022]: Sec. 9. (a) A land bank shall endeavor to acquire a
295	295	9 diverse portfolio of properties to enable the land bank to dispose of
296	296	10 diverse properties in diverse real estate markets in the county or
297	297	11 municipal territory that the land bank serves and, thereby, generate
298	298	12 revenue for the land bank in a sustainable manner. put the properties
299	299	13 back to productive use, improve property conditions, contribute to
300	300	14 local and regional neighborhood stabilization efforts, expand
301	301	15 opportunities for development, and have a positive impact on the
302	302	16 local tax base. A land bank shall acquire property for the purpose of
303	303	17 supporting the mission of the land bank.
304	304	18 (b) A land bank's priorities concerning the disposition of properties
305	305	19 from the land bank must support the mission of the land bank, which
306	306	20 includes the sale or transfer of properties:
307	307	21 (1) for redevelopment that will act as a catalyst for further
308	308	22 development;
309	309	23 (2) that support a comprehensive development plan or strategic
310	310	24 plan for neighborhood revitalization;
311	311	25 (3) that reduce blight the number of blighted properties in the
312	312	26 community;
313	313	27 (4) that revitalize or stabilize neighborhoods;
314	314	28 (5) that will be returned to productive, tax paying status;
315	315	29 (6) that will be returned to productive uses, including
316	316	30 development of side lots, green spaces, and gardens;
317	317	31 (7) that are available for immediate ownership or occupancy
318	318	32 without a need for substantial rehabilitation;
319	319	33 (8) that will be used for affordable housing; or
320	320	34 (9) that will generate operating support for the functions of a land
321	321	35 bank.
322	322	36 SECTION 10. IC 36-7-38-10, AS ADDED BY P.L.211-2016,
323	323	37 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
324	324	38 JULY 1, 2022]: Sec. 10. (a) A land bank shall do the following:
325	325	39 (1) Maintain an inventory of real property held by the land bank.
326	326	40 (2) Develop policies, guidelines, and procedures for the
327	327	41 acquisition, redevelopment, and disposition of property by and
328	328	42 from the land bank. The policies, guidelines, and procedures
329	329	2022 IN 1367—LS 7097/DI 129 8
330	330	1 developed under this subdivision must be formulated in plain
331	331	2 language with the objective of being clearly understood.
332	332	3 (3) Make the information described in subdivisions (1) and (2)
333	333	4 available for inspection:
334	334	5 (A) at the offices of the land bank during regular business
335	335	6 hours; and
336	336	7 (B) on the land bank's Internet web site.
337	337	8 (4) Coordinate the land bank's activities with any land use plans
338	338	9 that affect real property held by the land bank.
339	339	10 (b) If real property held by a county land bank is located in the
340	340	11 territory of a municipality of the county, the county land bank shall
341	341	12 offer to convey the real property to the municipality before the county
342	342	13 land bank offers, or accepts an offer, to convey the real property to any
343	343	14 other individual or entity. An offer to convey real property made by a
344	344	15 county land bank to a municipality under this section subsection
345	345	16 expires sixty (60) days after the county land bank makes the offer,
346	346	17 unless the county land bank and the municipality agree to another
347	347	18 period.
348	348	19 (c) This subsection applies to a land bank created pursuant to an
349	349	20 interlocal agreement under section 2(b) of this chapter that is
350	350	21 composed of two (2) or more contiguous counties. If real property
351	351	22 held by a land bank composed of two (2) or more contiguous
352	352	23 counties is located in the territory of a municipality of a county
353	353	24 that is a party to the interlocal agreement, the land bank shall offer
354	354	25 to convey the real property to the municipality before the land
355	355	26 bank offers, or accepts an offer, to convey the real property to any
356	356	27 other individual or entity. An offer to convey real property made
357	357	28 by a land bank composed of two (2) or more counties to a
358	358	29 municipality under this subsection expires sixty (60) days after the
359	359	30 land bank makes the offer, unless the land bank and the
360	360	31 municipality agree to another period.
361	361	32 SECTION 11. IC 36-7-38-11, AS ADDED BY P.L.211-2016,
362	362	33 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
363	363	34 JULY 1, 2022]: Sec. 11. (a) A land bank may:
364	364	35 (1) enter into an interlocal agreement under IC 36-1-7 with
365	365	36 another governmental entity, including, subject to subsection
366	366	37 (b), the establishment of processes to improve the quality of
367	367	38 title and marketability of property the land bank owns to
368	368	39 extinguish any liens that exist on the property; or
369	369	40 (2) otherwise contract with another governmental entity in Indiana
370	370	41 to perform services for the governmental entity.
371	371	42 (b) The following are exempt from the scope of an interlocal
372	372	2022 IN 1367—LS 7097/DI 129 9
373	373	1 agreement described in subsection (a)(1) to extinguish liens that
374	374	2 exist on a property the land bank owns:
375	375	3 (1) A lien granted priority under federal law.
376	376	4 (2) A lien of the state.
377	377	5 (3) Any valid easements, covenants, declarations, or deed
378	378	6 restrictions that encumber the property as shown in the
379	379	7 public record.
380	380	8 SECTION 12. IC 36-7-38-18, AS ADDED BY P.L.211-2016,
381	381	9 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
382	382	10 JULY 1, 2022]: Sec. 18. (a) Employees of a land bank are not
383	383	11 employees of the eligible unit that established the land bank.
384	384	12 (b) If a land bank enters into an interlocal agreement under
385	385	13 IC 36-1-7 as provided in section 11 of this chapter, any employees
386	386	14 of an eligible unit who may be contracted to provide staffing
387	387	15 services to the land bank pursuant to the interlocal agreement
388	388	16 retain their status as public employees of the eligible unit. Nothing
389	389	17 in this subsection shall be construed to alter or otherwise affect the
390	390	18 public employee's status as an employee of the eligible unit.
391	391	19 (b) (c) The board of a land bank may elect by resolution to provide
392	392	20 programs of group health insurance for the land bank's employees and
393	393	21 retired employees as provided under IC 5-10-8-2.6.
394	394	22 (c) (d) The board of a land bank may elect by resolution to provide
395	395	23 retirement and disability benefits for employees, which may be by
396	396	24 means of participation in the public employees' retirement fund as
397	397	25 provided under IC 5-10.3-6.
398	398	26 SECTION 13. IC 36-7-38-24 IS ADDED TO THE INDIANA
399	399	27 CODE AS A NEW SECTION TO READ AS FOLLOWS
400	400	28 [EFFECTIVE JULY 1, 2022]: Sec. 24. The county executive (as
401	401	29 defined in IC 6-1.1-23.9-1) must provide a land bank in the county
402	402	30 with a list of tracts in the territory of the land bank that:
403	403	31 (1) are delinquent on property taxes (as defined in
404	404	32 IC 6-1.1-37-10); and
405	405	33 (2) have been offered for sale by the county at two (2) or more
406	406	34 public sales held under IC 6-1.1-24 and remain unsold;
407	407	35 on an annual basis. If a land bank requests a tract on the list not
408	408	36 later than ninety (90) days from the date it receives the list, the
409	409	37 county executive shall assign the tax sale certificate for the tract or
410	410	38 convey the tract, as applicable, to the land bank at no cost to the
411	411	39 land bank.
412	412	2022 IN 1367—LS 7097/DI 129