*SB0157.1*
January 12, 2022
SENATE BILL No. 157
_____
DIGEST OF SB 157 (Updated January 11, 2022 10:48 am - DI 140)
Citations Affected: IC 4-20.5; IC 8-15.5; IC 8-15.7; IC 8-23.
Synopsis: Disposition of real property by INDOT. Provides that an
agency real estate professional may determine the fair market value of
real property the department of transportation (INDOT) owns and is
seeking to sell under certain conditions. Makes conforming changes.
Provides that real property shall be appraised prior to acquisition by
INDOT, except under certain conditions concerning donation and
valuation of the real property. Requires INDOT to prepare a waiver
valuation if an appraisal is unnecessary. Suspends certain rules for
persons preparing or reviewing a waiver valuation. Provides that
INDOT may sell real property without advertising or competitive bids
under certain circumstances. Extends the sunset of certain public-
private agreement provisions from June 30, 2023, to June 30, 2031.
Effective: July 1, 2022.
Crider
January 4, 2022, read first time and referred to Committee on Homeland Security and
Transportation.
January 11, 2022, reported favorably — Do Pass.
SB 157—LS 6767/DI 143 January 12, 2022
Second Regular Session of the 122nd General Assembly (2022)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in this style type. Also, the
word NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
between statutes enacted by the 2021 Regular Session of the General Assembly.
SENATE BILL No. 157
A BILL FOR AN ACT to amend the Indiana Code concerning
transportation.
Be it enacted by the General Assembly of the State of Indiana:
1 SECTION 1. IC 4-20.5-7-9 IS AMENDED TO READ AS
2 FOLLOWS [EFFECTIVE JULY 1, 2022]: Sec. 9. (a) This section
3 applies only to the following:
4 (1) The transfer of property to a political subdivision under
5 section 10 of this chapter.
6 (2) The sale of property under sections 11 through 16 of this
7 chapter.
8 (b) This section does not apply under the following circumstances:
9 (1) The lease of property for a term of four (4) years or less.
10 (2) If the commissioner or agency real estate professional
11 determines that the value of the property is likely to be less than
12 either of the following:
13 (A) Five Ten thousand dollars ($5,000). ($10,000).
14 (B) An amount established by the department in rules adopted
15 under IC 4-22-2.
16 (c) The property shall be appraised by an appraiser who has the
17 qualifications determined by the commissioner.
SB 157—LS 6767/DI 143 2
1 (d) The transferring agency shall pay for the cost of the appraisal.
2 SECTION 2. IC 8-15.5-1-2, AS AMENDED BY P.L.165-2021,
3 SECTION 129, IS AMENDED TO READ AS FOLLOWS
4 [EFFECTIVE JULY 1, 2022]: Sec. 2. (a) This article contains full and
5 complete authority for public-private agreements between the authority,
6 a private entity, and, where applicable, a governmental entity. Except
7 as provided in this article, no law, procedure, proceeding, publication,
8 notice, consent, approval, order, or act by the authority or any other
9 officer, department, agency, or instrumentality of the state or any
10 political subdivision is required for the authority to enter into a
11 public-private agreement with a private entity under this article, or for
12 a project that is the subject of a public-private agreement to be
13 constructed, acquired, maintained, repaired, operated, financed,
14 transferred, or conveyed.
15 (b) Before the authority or the department may issue a request for
16 proposals for or enter into a public-private agreement under this article
17 that would authorize an operator to impose user fees for the operation
18 of motor vehicles on all or part of a toll road project, the general
19 assembly must adopt a statute authorizing the imposition of user fees.
20 However, during the period beginning July 1, 2011, and ending June
21 30, 2023, June 30, 2031, the general assembly is not required to enact
22 a statute authorizing the authority or the department to issue a request
23 for proposals or enter into a public-private agreement to authorize an
24 operator to impose user fees for the operation of motor vehicles on all
25 or part of the following projects:
26 (1) A project on which construction begins after June 30, 2011,
27 not including any part of Interstate Highway 69 other than a part
28 described in subdivision (4).
29 (2) The addition of toll lanes, including high occupancy toll lanes,
30 to a highway, roadway, or other facility in existence on July 1,
31 2011, if the number of nontolled lanes on the highway, roadway,
32 or facility as of July 1, 2011, does not decrease due to the addition
33 of the toll lanes.
34 (3) The Illiana Expressway, a limited access facility connecting
35 Interstate Highway 65 in northwestern Indiana with an interstate
36 highway in Illinois.
37 (4) A project that is located within a metropolitan planning area
38 (as defined by 23 U.S.C. 134) and that connects the state of
39 Indiana with the commonwealth of Kentucky.
40 However, neither the authority nor the department may issue a request
41 for proposals for a public-private agreement under this article that
42 would authorize an operator to impose user fees unless the budget
SB 157—LS 6767/DI 143 3
1 committee has reviewed the request for proposals.
2 (c) Except as provided in subsection (b), before the authority or an
3 operator may carry out any of the following activities under this article,
4 the general assembly must enact a statute authorizing that activity:
5 (1) Imposing user fees on motor vehicles for use of Interstate
6 Highway 69.
7 (2) Imposing user fees on motor vehicles for use of a nontolled
8 highway, roadway, or other facility in existence or under
9 construction on July 1, 2011, including nontolled interstate
10 highways, U.S. routes, and state routes.
11 (d) The general assembly is not required to enact a statute
12 authorizing the authority or the department to issue a request for
13 proposals or enter into a public-private agreement for a freeway
14 project.
15 (e) The authority may enter into a public-private agreement for a
16 facility project if the general assembly, by statute, authorizes the
17 authority to enter into a public-private agreement for the facility
18 project.
19 (f) As permitted by subsection (e), the general assembly authorizes
20 the authority to enter into public-private agreements for a state park inn
21 and related improvements in an existing state park located in a county
22 with a population of more than two hundred thousand (200,000) and
23 less than three hundred thousand (300,000).
24 SECTION 3. IC 8-15.7-1-5, AS AMENDED BY P.L.165-2021,
25 SECTION 131, IS AMENDED TO READ AS FOLLOWS
26 [EFFECTIVE JULY 1, 2022]: Sec. 5. (a) This article contains full and
27 complete authority for agreements and leases with private entities to
28 carry out the activities described in this article. Except as provided in
29 this article, no procedure, proceeding, publication, notice, consent,
30 approval, order, or act by the authority, the department, or any other
31 state or local agency or official is required for the department to enter
32 into a public-private agreement with a private entity under this article
33 for a project to be constructed, maintained, repaired, or operated, and
34 no law to the contrary affects, limits, or diminishes the authority for
35 agreements and leases with private entities, except as provided by this
36 article. However, this article may not be construed to:
37 (1) limit the power of the authority, the department, or a private
38 entity to enter an agreement; or
39 (2) impose any procedural or substantive requirements on the
40 authority, the department, or a private entity;
41 concerning a project (as defined by IC 8-15.5-2-7) carried out under
42 IC 8-15.5.
SB 157—LS 6767/DI 143 4
1 (b) Notwithstanding any other law, and except as provided in
2 subsection (d), before the department, the authority, or an operator may
3 enter into public-private agreements that impose user fees on motor
4 vehicles for use of:
5 (1) Interstate Highway 69; or
6 (2) nontolled highways, roadways, or other facilities in existence
7 or under construction on July 1, 2011, including nontolled
8 interstate highways, U.S. routes, and state routes;
9 the general assembly must enact a statute authorizing that activity.
10 (c) Notwithstanding any other law, the department or the authority
11 may enter into a public-private agreement concerning a project
12 consisting of a passenger or freight railroad system described in
13 IC 8-15.7-2-14(a)(4). Such an agreement is subject to review and
14 appropriation by the general assembly. However, this subsection does
15 not prohibit the department from:
16 (1) conducting preliminary studies that the department considers
17 necessary to determine the feasibility of such a project; or
18 (2) issuing a request for qualifications or a request for proposals,
19 or both, under IC 8-15.7-4 for such a project.
20 (d) During the period beginning July 1, 2011, and ending June 30,
21 2023, June 30, 2031, the general assembly is not required to enact a
22 statute authorizing the department, the authority, or an operator to issue
23 a request for proposals for, or enter into, a public-private agreement
24 that imposes user fees for the operation of motor vehicles for the
25 following projects:
26 (1) A project on which construction begins after June 30, 2011,
27 not including any part of Interstate Highway 69 other than a part
28 described in subdivision (4).
29 (2) The addition of toll lanes, including high occupancy toll lanes,
30 to a highway, roadway, or other facility in existence on July 1,
31 2011, if the number of nontolled lanes on the highway, roadway,
32 or facility as of July 1, 2011, does not decrease due to the addition
33 of the toll lanes.
34 (3) The Illiana Expressway, a limited access facility connecting
35 Interstate Highway 65 in northwestern Indiana with an interstate
36 highway in Illinois.
37 (4) A project that is located within a metropolitan planning area
38 (as defined by 23 U.S.C. 134) and that connects the state of
39 Indiana with the commonwealth of Kentucky.
40 (e) The following apply:
41 (1) The authority shall be a party to any public-private agreement
42 entered into pursuant to this article that requires payments to be
SB 157—LS 6767/DI 143 5
1 made to an operator after the operator receives final payment for
2 construction.
3 (2) The authority may issue bonds or refunding bonds under
4 IC 5-1.2-4 to provide funds for any amounts identified under this
5 article but is not required to comply with IC 8-9.5-8-10.
6 SECTION 4. IC 8-23-7-2.5 IS ADDED TO THE INDIANA CODE
7 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
8 1, 2022]: Sec. 2.5. (a) Except as provided in subsection (b), real
9 property to be acquired by the department for a purpose described
10 in section 2 of this chapter shall be appraised before the initiation
11 of negotiations.
12 (b) An appraisal is not required if:
13 (1) the owner is donating the property and releases the agency
14 from its obligation to appraise the property; or
15 (2) the agency determines that an appraisal is unnecessary
16 because the valuation problem is uncomplicated and the
17 anticipated value of the proposed acquisition is estimated at
18 less than ten thousand dollars ($10,000) based on a review of
19 available data.
20 (c) When an appraisal is determined to be unnecessary, the
21 agency shall prepare a waiver valuation. A person preparing or
22 reviewing a waiver valuation is precluded from complying with
23 Standard Rules 1, 2, 3, and 4 of the Uniform Standards of
24 Professional Appraisal Practice, as in effect in the current edition,
25 as promulgated by the Appraisal Standards Board of the Appraisal
26 Foundation.
27 (d) A person performing a waiver valuation under subsection (c)
28 must have sufficient understanding of the local real estate market
29 to be qualified to make the waiver valuation.
30 SECTION 5. IC 8-23-7-13, AS AMENDED BY P.L.246-2005,
31 SECTION 86, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
32 JULY 1, 2022]: Sec. 13. If the department determines that real property
33 owned in fee simple by the department will not be needed for a purpose
34 described in section 2 of this chapter, the commissioner may, with the
35 approval of the budget agency, issue an order describing the surplus
36 property and offering the surplus property for sale at or above its fair
37 market value as determined by:
38 (1) appraisers of the department, if the value of the property is
39 at least ten thousand dollars ($10,000); or
40 (2) agency real estate professionals, if the value of the
41 property is less than ten thousand dollars ($10,000).
42 The department may combine or divide parcels of surplus property to
SB 157—LS 6767/DI 143 6
1 facilitate the sale of the property.
2 SECTION 6. IC 8-23-7-16 IS AMENDED TO READ AS
3 FOLLOWS [EFFECTIVE JULY 1, 2022]: Sec. 16. If the appraised
4 value of real property determined to be surplus under section 13 of this
5 chapter does not exceed four is less than ten thousand dollars ($4,000),
6 ($10,000), the department may sell the surplus property without
7 advertising or competitive bids for not less than the full appraised value
8 of the surplus property upon approval by the commissioner and the
9 governor.
10 SECTION 7. IC 8-23-7-22, AS AMENDED BY P.L.165-2021,
11 SECTION 133, IS AMENDED TO READ AS FOLLOWS
12 [EFFECTIVE JULY 1, 2022]: Sec. 22. (a) Subject to subsection (b),
13 the department may, after issuing an order and receiving the governor's
14 approval, determine that a state highway should become a tollway.
15 After the order becomes effective, the department shall maintain and
16 operate the tollway and levy and collect tolls as provided in IC 8-15-3
17 or enter into a public-private agreement with an operator with respect
18 to the tollway under IC 8-15.7. Before issuing an order under this
19 section, the department shall submit to the governor a plan to bring the
20 tollway to the current design standards of the department for new state
21 highways within a specified period. The specified period may not
22 exceed five (5) years.
23 (b) Before the governor, the department, or an operator may carry
24 out any of the following activities under this section, the general
25 assembly must enact a statute authorizing that activity:
26 (1) Determine that a highway that is in existence or under
27 construction on July 1, 2011, should become a tollway.
28 (2) Impose tolls on motor vehicles for use of Interstate Highway
29 69.
30 (c) Notwithstanding subsection (b), during the period beginning July
31 1, 2011, and ending June 30, 2023, June 30, 2031, the general
32 assembly is not required to enact a statute authorizing the governor, the
33 department, or an operator to determine that all or part of the following
34 projects should become a tollway:
35 (1) A project on which construction begins after June 30, 2011,
36 not including any part of Interstate Highway 69 other than a part
37 described in subdivision (4).
38 (2) The addition of toll lanes, including high occupancy toll lanes,
39 to a highway, roadway, or other facility in existence on July 1,
40 2011, if the number of nontolled lanes on the highway, roadway,
41 or facility as of July 1, 2011, does not decrease due to the addition
42 of the toll lanes.
SB 157—LS 6767/DI 143 7
1 (3) The Illiana Expressway, a limited access facility connecting
2 Interstate Highway 65 in northwestern Indiana with an interstate
3 highway in Illinois.
4 (4) A project that is located within a metropolitan planning area
5 (as defined by 23 U.S.C. 134) and that connects the state of
6 Indiana with the commonwealth of Kentucky.
SB 157—LS 6767/DI 143 8
COMMITTEE REPORT
Madam President: The Senate Committee on Homeland Security
and Transportation, to which was referred Senate Bill No. 157, has had
the same under consideration and begs leave to report the same back
to the Senate with the recommendation that said bill DO PASS.
(Reference is to SB 157 as introduced.)
CRIDER, Chairperson
Committee Vote: Yeas 6, Nays 1
SB 157—LS 6767/DI 143