Indiana 2022 Regular Session

Indiana Senate Bill SB0386 Compare Versions

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

Old	New	Differences
1	1
2	2	Introduced Version
3	3	SENATE BILL No. 386
4	4	_____
5	5	DIGEST OF INTRODUCED BILL
6	6	Citations Affected: IC 6-1.1; IC 36-1-8-20; 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	Allows a county fiscal body in a county in which there is at least one
30	30	land bank (except in a county containing a consolidated city) to adopt
31	31	an ordinance requiring every person who wishes to participate in a tax
32	32	sale as a bidder to pay a neighborhood investment fee of not more than
33	33	(Continued next page)
34	34	Effective: July 1, 2022.
35	35	Lanane
36	36	January 11, 2022, read first time and referred to Committee on Local Government.
37	37	2022 IN 386—LS 7045/DI 129 Digest Continued
38	38	$150. Provides that, if a county fiscal body adopts an ordinance
39	39	authorizing the imposition of a neighborhood investment fee, the
40	40	county treasurer shall establish the neighborhood investment fee fund
41	41	(fund) and specifies the manner in which neighborhood investment fees
42	42	collected are to be distributed from the fund to land banks. Allows a
43	43	county fiscal body in a county in which there is at least one land bank
44	44	(except in a county containing a consolidated city) to adopt an
45	45	ordinance to impose, in addition to the 5% penalty for delinquent real
46	46	property taxes, an additional penalty of not more than 3% for a total
47	47	penalty that may not exceed 8% of the amount of delinquent real
48	48	property taxes (additional penalty ordinance). Provides that delinquent
49	49	tax payments attributable to real property used as a principal place of
50	50	residence and receiving the homestead standard deduction for the most
51	51	recent assessment date are exempt from an additional penalty
52	52	ordinance. Specifies the manner in which the amounts collected
53	53	attributable to an additional penalty imposed on delinquent real
54	54	property taxes are to be distributed to land banks.
55	55	2022 IN 386—LS 7045/DI 1292022 IN 386—LS 7045/DI 129 Introduced
56	56	Second Regular Session of the 122nd General Assembly (2022)
57	57	PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
58	58	Constitution) is being amended, the text of the existing provision will appear in this style type,
59	59	additions will appear in this style type, and deletions will appear in this style type.
60	60	Additions: Whenever a new statutory provision is being enacted (or a new constitutional
61	61	provision adopted), the text of the new provision will appear in this style type. Also, the
62	62	word NEW will appear in that style type in the introductory clause of each SECTION that adds
63	63	a new provision to the Indiana Code or the Indiana Constitution.
64	64	Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
65	65	between statutes enacted by the 2021 Regular Session of the General Assembly.
66	66	SENATE BILL No. 386
67	67	A BILL FOR AN ACT to amend the Indiana Code concerning local
68	68	government.
69	69	Be it enacted by the General Assembly of the State of Indiana:
70	70	1 SECTION 1. IC 6-1.1-24-5.7, AS ADDED BY P.L.66-2021,
71	71	2 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
72	72	3 JULY 1, 2022]: Sec. 5.7. (a) The county treasurer shall require each
73	73	4 person who will be bidding at the tax sale to sign a statement in a form
74	74	5 substantially similar to the following:
75	75	6 "Indiana law prohibits a person who owes delinquent taxes,
76	76	7 special assessments, penalties, interest, or costs directly
77	77	8 attributable to a prior tax sale of a tract or item of real property
78	78	9 listed under IC 6-1.1-24-1 from bidding on or purchasing tracts or
79	79	10 items of real property at a tax sale. I hereby affirm under the
80	80	11 penalties for perjury that I do not owe delinquent taxes, special
81	81	12 assessments, penalties, interest, costs directly attributable to a
82	82	13 prior tax sale, amounts from a final adjudication in favor of a
83	83	14 political subdivision, any civil penalties imposed for the violation
84	84	15 of a building code or county ordinance, or any civil penalties
85	85	2022 IN 386—LS 7045/DI 129 2
86	86	1 imposed by a county health department. I also affirm that I am not
87	87	2 purchasing tracts or items of real property on behalf of or as an
88	88	3 agent for a person who is prohibited from purchasing at a tax sale.
89	89	4 Further, I hereby acknowledge that any successful bid I make in
90	90	5 violation of this statement is subject to forfeiture. In the event of
91	91	6 forfeiture, the amount by which my bid exceeds the minimum bid
92	92	7 on the tract or item or real property under IC 6-1.1-24-5(e), if any,
93	93	8 shall be applied to the delinquent taxes, special assessments,
94	94	9 penalties, interest, costs, judgments, or civil penalties I owe, and
95	95	10 a certificate will be issued to the county executive. I further
96	96	11 acknowledge that a person who knowingly or intentionally
97	97	12 provides false information on this affidavit commits perjury, a
98	98	13 Level 6 felony.".
99	99	14 (b) If a person purchases real property that the person was not
100	100	15 eligible to purchase under section 5.1, 5.3, or 5.4 of this chapter, the
101	101	16 sale of the real property is subject to forfeiture. If the county treasurer
102	102	17 determines or is notified not more than forty-five (45) days after the
103	103	18 date of the sale that the sale of the real property should be forfeited, the
104	104	19 county treasurer shall:
105	105	20 (1) not more than five (5) days after the county treasurer is
106	106	21 notified, notify the person in writing by first class mail that the
107	107	22 sale is subject to forfeiture if the person does not pay the amounts
108	108	23 the person owes within fifteen (15) days of the date the written
109	109	24 notice is mailed;
110	110	25 (2) if the person does not meet the conditions described in
111	111	26 subdivision (1) within fifteen (15) days after the written notice is
112	112	27 mailed, apply the surplus amount of the person's bid, if any, to the
113	113	28 delinquent taxes, special assessments, penalties, and interest on
114	114	29 the real property;
115	115	30 (3) remit the amounts owed from a final adjudication or civil
116	116	31 penalties in favor of a political subdivision to the political
117	117	32 subdivision;
118	118	33 (4) notify the county auditor that the sale has been forfeited; and
119	119	34 (5) file with the county recorder a certification identifying the
120	120	35 forfeited sale that includes:
121	121	36 (A) the date of the sale;
122	122	37 (B) the name of the buyer;
123	123	38 (C) the property identification number of the real property;
124	124	39 (D) the real property's legal description; and
125	125	40 (E) a statement that the sale has been forfeited and is null and
126	126	41 void because the buyer was not eligible to purchase the real
127	127	42 property.
128	128	2022 IN 386—LS 7045/DI 129 3
129	129	1 Upon being notified that a sale has been forfeited, the county auditor
130	130	2 shall issue a certificate to the county executive under section 6 of this
131	131	3 chapter.
132	132	4 (c) A county treasurer may decline to forfeit a sale under this section
133	133	5 because of inadvertence or mistake, lack of actual knowledge by the
134	134	6 bidder, substantial harm to other parties with interests in the real
135	135	7 property, or other substantial reasons. If the treasurer declines to forfeit
136	136	8 a sale, the treasurer shall:
137	137	9 (1) prepare a written statement explaining the reasons for
138	138	10 declining to forfeit the sale;
139	139	11 (2) retain the written statement as an official record; and
140	140	12 (3) file with the county recorder a certification that includes:
141	141	13 (A) the date of the sale;
142	142	14 (B) the name of the buyer;
143	143	15 (C) the property identification number of the real property;
144	144	16 (D) the real property's legal description; and
145	145	17 (E) a statement that the sale has not been forfeited and is valid.
146	146	18 (d) If a sale is forfeited under this section and the tract or item of
147	147	19 real property is redeemed from the sale, the county auditor shall deposit
148	148	20 the amount of the redemption into the county general fund and notify
149	149	21 the county executive of the redemption. Upon being notified of the
150	150	22 redemption, the county executive shall surrender the certificate to the
151	151	23 county auditor.
152	152	24 (e) If a county treasurer does not take action under subsection (b)
153	153	25 within forty-five (45) days of the date the county treasurer determines
154	154	26 or is notified that a sale should be forfeited, the person is deemed to be
155	155	27 an eligible purchaser for that sale of that real property.
156	156	28 (f) If a tax deed is issued for real property under IC 6-1.1-25-4, this
157	157	29 section cannot be invoked to invalidate, rescind, or set aside the tax
158	158	30 deed.
159	159	31 (g) If a county has adopted an ordinance under section 16.5 of
160	160	32 this chapter authorizing the imposition of a neighborhood
161	161	33 investment fee to participate in a tax sale as a bidder, the
162	162	34 neighborhood investment fee is not refundable if a sale of real
163	163	35 property is forfeited under this section.
164	164	36 SECTION 2. IC 6-1.1-24-16.5 IS ADDED TO THE INDIANA
165	165	37 CODE AS A NEW SECTION TO READ AS FOLLOWS
166	166	38 [EFFECTIVE JULY 1, 2022]: Sec. 16.5. (a) This section applies if
167	167	39 there is at least one (1) land bank established in a county, except in
168	168	40 a county containing a consolidated city.
169	169	41 (b) As used in this section, "land bank" has the meaning set
170	170	42 forth in IC 36-7-38-1(3).
171	171	2022 IN 386—LS 7045/DI 129 4
172	172	1 (c) The county fiscal body may adopt an ordinance requiring
173	173	2 every person who wishes to participate in a tax sale as a bidder to
174	174	3 pay a neighborhood investment fee of not more than one hundred
175	175	4 fifty dollars ($150).
176	176	5 (d) A county fiscal body that has adopted an ordinance under
177	177	6 subsection (c) that is in effect in the county may rescind the
178	178	7 ordinance adopted under subsection (c).
179	179	8 (e) An ordinance adopted under this section is effective on
180	180	9 January 1 of the year immediately following the year in which the
181	181	10 ordinance is adopted.
182	182	11 (f) If a county fiscal body adopts an ordinance to require the
183	183	12 payment of a neighborhood investment fee, the payment of the
184	184	13 neighborhood investment fee is in addition to any other fees or
185	185	14 charges a county may impose for registering to bid at a tax sale.
186	186	15 The neighborhood investment fee is not refundable if a sale of real
187	187	16 property is forfeited under section 5.7 of this chapter.
188	188	17 (g) The county treasurer shall deposit the money into the
189	189	18 neighborhood investment fee fund established under
190	190	19 IC 36-1-8-20(d) not later than thirty (30) days after the conclusion
191	191	20 of the tax sale.
192	192	21 SECTION 3. IC 6-1.1-37-10, AS AMENDED BY P.L.95-2021,
193	193	22 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
194	194	23 JULY 1, 2022]: Sec. 10. (a) If property taxes due and payable are not
195	195	24 completely paid on or before the due date, a penalty shall be added to
196	196	25 the unpaid portion in the year of the initial delinquency. The penalty is
197	197	26 equal to an amount determined as follows:
198	198	27 (1) If:
199	199	28 (A) subject to subsection (g), the real property taxes due and
200	200	29 payable are completely paid on or before the date thirty (30)
201	201	30 days after the due date; and
202	202	31 (B) the taxpayer is not liable for:
203	203	32 (i) delinquent property taxes first due and payable in a
204	204	33 previous tax payment for the same parcel; or
205	205	34 (ii) a penalty that is owed from a previous tax payment for
206	206	35 the same parcel;
207	207	36 the amount of the penalty is equal to five percent (5%) of the
208	208	37 amount of delinquent taxes. However, for a county in which an
209	209	38 ordinance adopted under section 10.2 of this chapter is in
210	210	39 effect in the county, the amount of the penalty imposed under
211	211	40 this subsection is equal to five percent (5%) plus the
212	212	41 additional amount set forth in the ordinance adopted under
213	213	42 section 10.2 of this chapter.
214	214	2022 IN 386—LS 7045/DI 129 5
215	215	1 (2) If:
216	216	2 (A) subject to subsection (g), personal property taxes due and
217	217	3 payable are not completely paid on or before the date thirty
218	218	4 (30) days after the due date; and
219	219	5 (B) the taxpayer is not liable for:
220	220	6 (i) delinquent property taxes first due and payable in a
221	221	7 previous tax payment for a personal property tax return for
222	222	8 property in the same taxing district; or
223	223	9 (ii) a penalty that is owed from a previous tax payment;
224	224	10 the amount of the penalty is equal to five percent (5%) of the
225	225	11 amount of delinquent taxes.
226	226	12 (3) If subdivision (1) or (2) does not apply, the amount of the
227	227	13 penalty is equal to ten percent (10%) of the amount due and
228	228	14 payable as of the tax date.
229	229	15 A payment received under this subsection shall be applied first to the
230	230	16 delinquent tax amount and then to any associated penalties. In the case
231	231	17 of a county in which an ordinance adopted under section 10.2 of
232	232	18 this chapter is in effect in the county, the additional penalty
233	233	19 amount collected under subdivision (1) shall be distributed as
234	234	20 provided in section 10.2(g) of this chapter.
235	235	21 (b) With respect to property taxes due in two (2) equal installments
236	236	22 under IC 6-1.1-22-9(a), on the day immediately following the due dates
237	237	23 of the first and second installments in each year following the year of
238	238	24 the initial delinquency, an additional penalty equal to ten percent (10%)
239	239	25 of any taxes remaining unpaid shall be added. With respect to property
240	240	26 taxes due in installments under IC 6-1.1-22-9.5, an additional penalty
241	241	27 equal to ten percent (10%) of any taxes remaining unpaid shall be
242	242	28 added on the day immediately following each date that succeeds the
243	243	29 last installment due date by:
244	244	30 (1) six (6) months; or
245	245	31 (2) a multiple of six (6) months.
246	246	32 (c) The penalties under subsection (b) are imposed only on the
247	247	33 principal amount of the delinquent taxes.
248	248	34 (d) If the department of local government finance determines that
249	249	35 an emergency has occurred which precludes the mailing of the tax
250	250	36 statement in any county at the time set forth in IC 6-1.1-22-8.1, the
251	251	37 department shall establish by order a new date on which the installment
252	252	38 of taxes in that county is due and no installment is delinquent if paid by
253	253	39 the date so established.
254	254	40 (e) If any due date falls on a Saturday, a Sunday, a national legal
255	255	41 holiday recognized by the federal government, or a statewide holiday,
256	256	42 the act that must be performed by that date is timely if performed by
257	257	2022 IN 386—LS 7045/DI 129 6
258	258	1 the next succeeding day that is not a Saturday, a Sunday, or one (1) of
259	259	2 those holidays.
260	260	3 (f) Subject to subsections (h) and (i), a payment to the county
261	261	4 treasurer is considered to have been paid by the due date if the payment
262	262	5 is:
263	263	6 (1) received on or before the due date by the county treasurer or
264	264	7 a collecting agent appointed by the county treasurer;
265	265	8 (2) deposited in United States first class mail:
266	266	9 (A) properly addressed to the principal office of the county
267	267	10 treasurer;
268	268	11 (B) with sufficient postage; and
269	269	12 (C) postmarked by the United States Postal Service as mailed
270	270	13 on or before the due date;
271	271	14 (3) deposited with a nationally recognized express parcel carrier
272	272	15 and is:
273	273	16 (A) properly addressed to the principal office of the county
274	274	17 treasurer; and
275	275	18 (B) verified by the express parcel carrier as:
276	276	19 (i) paid in full for final delivery; and
277	277	20 (ii) received by the express parcel carrier on or before the
278	278	21 due date;
279	279	22 (4) deposited to be mailed through United States registered mail,
280	280	23 United States certified mail, or United States certificate of
281	281	24 mailing:
282	282	25 (A) properly addressed to the principal office of the county
283	283	26 treasurer;
284	284	27 (B) with sufficient postage; and
285	285	28 (C) with a date of registration, certification, or certificate, as
286	286	29 evidenced by any record authenticated by the United States
287	287	30 Postal Service, on or before the due date;
288	288	31 (5) deposited in United States first class mail:
289	289	32 (A) properly addressed to the principal office of the county
290	290	33 treasurer;
291	291	34 (B) with sufficient metered postage from a meter postage
292	292	35 provider approved by the United States Postal Service; and
293	293	36 (C) with a postage meter stamp affixed to the envelope that
294	294	37 must bear the actual date the postage meter stamp was affixed
295	295	38 to the envelope, which must be on or before the due date;
296	296	39 and the payment is received by the county treasurer not later than
297	297	40 five (5) business days after the due date; or
298	298	41 (6) made by an electronic funds transfer and the taxpayer's bank
299	299	42 account is charged on or before the due date.
300	300	2022 IN 386—LS 7045/DI 129 7
301	301	1 (g) As used in this subsection, "initial penalty period" means the
302	302	2 period after the due date and not later than thirty (30) days after the due
303	303	3 date. A person who makes a payment within the initial penalty period
304	304	4 is subject to a penalty equal to five percent (5%) of the amount of the
305	305	5 delinquent taxes as provided in subsection (a)(1) or (a)(2). However,
306	306	6 in the case of a county in which an ordinance adopted under
307	307	7 section 10.2 of this chapter is in effect in the county, the amount of
308	308	8 the penalty imposed under subsection (a)(1) is equal to five percent
309	309	9 (5%) plus the additional amount set forth in the ordinance adopted
310	310	10 under section 10.2 of this chapter. A payment to the county treasurer
311	311	11 is considered to have been paid within the initial penalty period and
312	312	12 subject to the five percent (5%) penalty or, in the case of subsection
313	313	13 (a)(1), five percent (5%) plus the additional amount set forth in the
314	314	14 ordinance adopted under section 10.2 of this chapter if the payment
315	315	15 is:
316	316	16 (1) received within the penalty period by the county treasurer or
317	317	17 a collecting agent appointed by the county treasurer;
318	318	18 (2) deposited in United States first class mail:
319	319	19 (A) properly addressed to the principal office of the county
320	320	20 treasurer;
321	321	21 (B) with sufficient postage; and
322	322	22 (C) postmarked by the United States Postal Service as mailed
323	323	23 on or before the thirtieth day after the due date;
324	324	24 (3) deposited with a nationally recognized express parcel carrier
325	325	25 and is:
326	326	26 (A) properly addressed to the principal office of the county
327	327	27 treasurer; and
328	328	28 (B) verified by the express parcel carrier as:
329	329	29 (i) paid in full for final delivery; and
330	330	30 (ii) received by the express parcel carrier on or before the
331	331	31 thirtieth day after the due date;
332	332	32 (4) deposited to be mailed through United States registered mail,
333	333	33 United States certified mail, or United States certificate of
334	334	34 mailing:
335	335	35 (A) properly addressed to the principal office of the county
336	336	36 treasurer;
337	337	37 (B) with sufficient postage; and
338	338	38 (C) with a date of registration, certification, or certificate, as
339	339	39 evidenced by any record authenticated by the United States
340	340	40 Postal Service, on or before the thirtieth day after the due date;
341	341	41 or
342	342	42 (5) deposited in United States first class mail:
343	343	2022 IN 386—LS 7045/DI 129 8
344	344	1 (A) properly addressed to the principal office of the county
345	345	2 treasurer;
346	346	3 (B) with sufficient metered postage from a meter postage
347	347	4 provider approved by the United States Postal Service; and
348	348	5 (C) with a postage meter stamp affixed to the envelope that
349	349	6 must bear the actual date the postage meter stamp was affixed
350	350	to the envelope, which must be on or before 7 the thirtieth day
351	351	8 after the due date;
352	352	9 and the payment is received by the county treasurer not later than
353	353	five (5) business days 10 after the thirtieth day after the due date.
354	354	11 (h) As used in this subsection, "initial penalty period" has the
355	355	12 meaning set forth in subsection (g). If a payment is mailed through the
356	356	13 United States mail and is physically received after the due date or after
357	357	14 the initial penalty period without a legible correct postmark, the person
358	358	15 who mailed the payment is considered to have made the payment:
359	359	16 (1) on or before the due date if the person can show by reasonable
360	360	17 evidence that the payment was deposited in the United States mail
361	361	18 on or before the due date; or
362	362	19 (2) within the initial penalty period, if the person can show by
363	363	20 reasonable evidence that the payment was deposited in the United
364	364	21 States mail on or before the thirtieth day after the due date.
365	365	22 (i) As used in this subsection, "initial penalty period" has the
366	366	23 meaning set forth in subsection (g). This section applies if a payment
367	367	24 is sent via the United States mail or a nationally recognized express
368	368	25 parcel carrier but is not received by the designated recipient, the person
369	369	26 who sent the payment is considered to have made the payment:
370	370	27 (1) on or before the due date if the person:
371	371	28 (A) can show by reasonable evidence that the payment was
372	372	29 deposited in the United States mail, or with the express parcel
373	373	30 carrier, on or before the due date; and
374	374	31 (B) makes a duplicate payment within thirty (30) days after the
375	375	32 date the person is notified that the payment was not received;
376	376	33 or
377	377	34 (2) within the initial penalty period, if the person:
378	378	35 (A) can show by reasonable evidence that the payment was
379	379	36 deposited in the United States mail, or with the express parcel
380	380	37 carrier, on or before the thirtieth day after the due date; and
381	381	38 (B) makes a duplicate payment within thirty (30) days after the
382	382	39 date the person is notified that the payment was not received.
383	383	40 SECTION 4. IC 6-1.1-37-10.2 IS ADDED TO THE INDIANA
384	384	41 CODE AS A NEW SECTION TO READ AS FOLLOWS
385	385	42 [EFFECTIVE JULY 1, 2022]: Sec. 10.2. (a) This section applies if
386	386	2022 IN 386—LS 7045/DI 129 9
387	387	1 there is at least one (1) land bank established in a county, except in
388	388	2 a county containing a consolidated city.
389	389	3 (b) As used in this section, "land bank" has the meaning set
390	390	4 forth in IC 36-7-38-1(3).
391	391	5 (c) Subject to subsection (d), a county fiscal body may adopt an
392	392	6 ordinance to impose, in addition to the five percent (5%) penalty
393	393	7 set forth in section 10(a)(1) of this chapter for delinquent real
394	394	8 property taxes, an additional penalty of not more than three
395	395	9 percent (3%) for a total penalty that may not exceed eight percent
396	396	10 (8%) of the amount of delinquent taxes.
397	397	11 (d) The county fiscal body may not impose the additional
398	398	12 penalty described in subsection (c) on delinquent real property tax
399	399	13 payments that are attributable to real property used as a principal
400	400	14 place of residence and receiving a homestead standard deduction
401	401	15 under IC 6-1.1-12-37 for the most recent assessment date.
402	402	16 (e) A county fiscal body that has adopted an ordinance under
403	403	17 subsection (c) that is in effect in the county may rescind the
404	404	18 ordinance adopted under subsection (c).
405	405	19 (f) An ordinance adopted under this section is effective on
406	406	20 January 1 of the year immediately following the year in which the
407	407	21 ordinance is adopted.
408	408	22 (g) Notwithstanding section 12 of this chapter, IC 6-1.1-22-9(f),
409	409	23 or any other law, if an ordinance adopted under subsection (c) is in
410	410	24 effect in a county, the county treasurer shall do the following:
411	411	25 (1) In the case of a county in which there is only one (1) land
412	412	26 bank, quarterly distribute the additional penalty authorized
413	413	27 by this section to the land bank.
414	414	28 (2) In the case of a county in which there is more than one (1)
415	415	29 land bank, quarterly distribute the additional penalty
416	416	30 authorized by this section to each land bank in an amount
417	417	31 proportional to the population of the territory of each land
418	418	32 bank as it bears to the total population in the county.
419	419	33 SECTION 5. IC 36-1-8-20 IS ADDED TO THE INDIANA CODE
420	420	34 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
421	421	35 1, 2022]: Sec. 20. (a) This section applies to a county, except to a
422	422	36 county containing a consolidated city, if the county fiscal body
423	423	37 adopts an ordinance under IC 6-1.1-24-16.5 to require the payment
424	424	38 of a neighborhood investment fee to participate as a bidder in a tax
425	425	39 sale.
426	426	40 (b) As used in this section, "fund" refers to the neighborhood
427	427	41 investment fee fund established under subsection (d).
428	428	42 (c) As used in this section, "land bank" has the meaning set
429	429	2022 IN 386—LS 7045/DI 129 10
430	430	1 forth in IC 36-7-38-1(3).
431	431	2 (d) The county treasurer shall establish a neighborhood
432	432	3 investment fee fund in the county treasury for the purpose of
433	433	4 accumulating money from the collection of neighborhood
434	434	5 investment fees for distribution to the land bank.
435	435	6 (e) The fund consists of deposits of neighborhood investment
436	436	7 fees collected by the county treasurer.
437	437	8 (f) The county treasurer shall administer the fund.
438	438	9 (g) Money in the fund that is not currently needed to meet the
439	439	10 obligations of the fund may be invested in the same manner as
440	440	11 other public funds may be invested. Interest earned on the
441	441	12 investment of money in the fund becomes part of the fund.
442	442	13 (h) Expenses of administering the fund shall be paid from
443	443	14 money in the fund.
444	444	15 (i) The county treasurer shall distribute money from the fund to
445	445	16 the land bank without appropriation by the fiscal body of the
446	446	17 county in accordance with this section.
447	447	18 (j) The county treasurer shall distribute the proceeds collected
448	448	19 from the neighborhood investment fee semiannually to a land
449	449	20 bank.
450	450	21 (k) If there is more than one (1) land bank established within a
451	451	22 county, the county treasurer shall semiannually distribute the
452	452	23 proceeds collected from the neighborhood investment fee to a land
453	453	24 bank in an amount proportional to the population of the territory
454	454	25 of each land bank as it bears to the total population in the county.
455	455	26 (l) Money in the fund at the end of the year does not revert to
456	456	27 the county general fund.
457	457	28 SECTION 6. IC 36-7-38-1, AS AMENDED BY P.L.26-2020,
458	458	29 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
459	459	30 JULY 1, 2022]: Sec. 1. The following definitions apply throughout this
460	460	31 chapter:
461	461	32 (1) "Distressed real property" includes real property in a neglected
462	462	33 or unmarketable condition.
463	463	34 (2) "Eligible unit" means:
464	464	35 (A) a county;
465	465	36 (B) a consolidated city;
466	466	37 (C) a second class city; or
467	467	38 (D) a third class city;
468	468	39 to which IC 36-7-9 applies.
469	469	40 (3) "Land bank" means an entity established under section 2 of
470	470	41 this chapter.
471	471	42 (4) "Person" means an individual, a corporation, a limited liability
472	472	2022 IN 386—LS 7045/DI 129 11
473	473	1 company, a partnership, or other legal entity.
474	474	2 (5) "Vacant real property" has the meaning set forth in
475	475	3 IC 36-7-36-5.
476	476	4 SECTION 7. IC 36-7-38-2, AS AMENDED BY P.L.26-2020,
477	477	5 SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
478	478	6 JULY 1, 2022]: Sec. 2. (a) The legislative body of an eligible unit may
479	479	7 adopt an ordinance:
480	480	8 (1) establishing a body corporate and politic; or
481	481	9 (2) directing the executive of the eligible unit to organize a
482	482	10 nonprofit corporation under IC 23-17;
483	483	11 as an independent instrumentality exercising essential governmental
484	484	12 functions.
485	485	13 (b) The legislative bodies of two (2) or more eligible units within a
486	486	14 single county or within two (2) or more contiguous counties may enter
487	487	15 into an interlocal agreement under IC 36-1-7:
488	488	16 (1) establishing a body corporate and politic; or
489	489	17 (2) directing the executive of one (1) of the eligible units entering
490	490	18 into the interlocal agreement to organize a nonprofit corporation
491	491	19 under IC 23-17;
492	492	20 as an independent instrumentality exercising essential governmental
493	493	21 functions.
494	494	22 (c) The primary purpose of a land bank established under subsection
495	495	23 (a) or (b) is to manage and improve the marketability of vacant real
496	496	24 property and distressed real property located in the territory of the
497	497	25 land bank.
498	498	26 (d) An ordinance or interlocal agreement establishing a land bank
499	499	27 must specify:
500	500	28 (1) The name of the land bank.
501	501	29 (2) The number of board members, subject to section 4 of this
502	502	30 chapter.
503	503	31 (e) The territory of a land bank established under subsection (a) is:
504	504	32 (1) in the case of an eligible unit that is a municipality, the
505	505	33 territory of the municipality; or
506	506	34 (2) in the case of an eligible unit that is a county, all the territory
507	507	35 of the county, except for the territory of any municipality in the
508	508	36 county that has established another land bank.
509	509	37 (f) The territory of a land bank established under subsection (b) is
510	510	38 the territory of all the eligible units that have established the land bank,
511	511	39 except for the territory of any municipality that has established another
512	512	40 land bank under subsection (a) or (b).
513	513	41 SECTION 8. IC 36-7-38-4.5, AS ADDED BY P.L.26-2020,
514	514	42 SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
515	515	2022 IN 386—LS 7045/DI 129 12
516	516	1 JULY 1, 2022]: Sec. 4.5. (a) This section applies to the board of a land
517	517	2 bank established under section 2(b) of this chapter.
518	518	3 (b) The interlocal agreement providing for the establishment of the
519	519	4 land bank must specify:
520	520	5 (1) subject to section 4(a) of this chapter, the number of directors
521	521	6 of the board of the land bank;
522	522	7 (2) any directors that are to serve as ex officio directors of the
523	523	8 board; and
524	524	9 (3) for each director of the board that is to be appointed, the
525	525	10 appointing authority.
526	526	11 (c) The interlocal agreement must also specify that a majority
527	527	12 of directors appointed to the board of the land bank must be
528	528	13 residents of the applicable eligible units that establish the land
529	529	14 bank under section 2(b) of this chapter.
530	530	15 SECTION 9. IC 36-7-38-5, AS ADDED BY P.L.211-2016,
531	531	16 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
532	532	17 JULY 1, 2022]: Sec. 5. (a) This section applies to the board of a county
533	533	18 land bank established by a county that does not have a consolidated
534	534	19 city.
535	535	20 (b) The board of a land bank to which this section applies is
536	536	21 comprised of the following:
537	537	22 (1) A director appointed by the county treasurer. A director
538	538	23 appointed under this subdivision must be a resident of the county.
539	539	24 (2) A director appointed by the county auditor. A director
540	540	25 appointed under this subdivision must be a resident of the county.
541	541	26 (3) Five (5) directors respectively appointed by the executives of
542	542	27 the five (5) municipalities in the county with the five (5) largest
543	543	28 populations, as determined by the most recent federal decennial
544	544	29 census. A director appointed under this subdivision must reside
545	545	30 in the municipality of the appointing authority that appoints the
546	546	31 director.
547	547	32 (4) At most two (2) additional directors appointed, as applicable,
548	548	33 in the manner and subject to the requirements set forth in the land
549	549	34 bank's bylaws.
550	550	35 (c) A majority of the directors appointed under subsection (b)
551	551	36 to the board of a land bank must be residents of the county or the
552	552	37 municipality.
553	553	38 (c) (d) The terms of the initial directors of a land bank to which this
554	554	39 section applies are equal to:
555	555	40 (1) the remainder of the calendar year in which the land bank is
556	556	41 established; plus
557	557	42 (2) a number of additional years equal to:
558	558	2022 IN 386—LS 7045/DI 129 13
559	559	1 (A) one (1) calendar year, for:
560	560	2 (i) the director appointed under subsection (b)(1);
561	561	3 (ii) the director appointed under subsection (b)(2); and
562	562	4 (iii) the director appointed under subsection (b)(3) by the
563	563	5 executive of the municipality in the county that has the
564	564	6 largest population;
565	565	7 (B) two (2) calendar years, for directors appointed under
566	566	8 subsection (b)(3) by the executives of the municipalities that
567	567	9 have the second through the fourth largest populations in the
568	568	10 county; and
569	569	11 (C) three (3) calendar years, for:
570	570	12 (i) the director appointed under subsection (b)(3) by the
571	571	13 executive of the municipality that has the fifth largest
572	572	14 population in the county; and
573	573	15 (ii) any directors appointed under subsection (b)(4).
574	574	16 SECTION 10. IC 36-7-38-7, AS ADDED BY P.L.211-2016,
575	575	17 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
576	576	18 JULY 1, 2022]: Sec. 7. (a) This section applies to the board of a land
577	577	19 bank established by a second class city.
578	578	20 (b) The board of a land bank to which this section applies is
579	579	21 comprised of the following:
580	580	22 (1) Three (3) directors appointed by the executive of the second
581	581	23 class city. A director appointed under this subdivision must be a
582	582	24 resident of the second class city.
583	583	25 (2) Three (3) directors appointed by the legislative body of the
584	584	26 second class city. A director appointed under this subdivision
585	585	27 must be a resident of the second class city.
586	586	28 (3) A director appointed by the county treasurer of the county in
587	587	29 which the second class city is located, or the county treasurer of
588	588	30 the county in which most residents of the second class city reside,
589	589	31 if the second class city is located in more than one (1) county. A
590	590	32 director appointed under this subdivision must be a resident of the
591	591	33 second class city.
592	592	34 (4) At most two (2) additional directors appointed, as applicable,
593	593	35 in the manner and subject to the requirements set forth in the land
594	594	36 bank's bylaws.
595	595	37 (c) A majority of the directors appointed under subsection (b)
596	596	38 to the board of a land bank must be residents of the second class
597	597	39 city.
598	598	40 (c) (d) The terms of the initial directors of a land bank to which this
599	599	41 section applies are equal to:
600	600	42 (1) the remainder of the calendar year in which the land bank is
601	601	2022 IN 386—LS 7045/DI 129 14
602	602	1 established; plus
603	603	2 (2) a number of additional years equal to:
604	604	3 (A) one (1) calendar year, for directors appointed under
605	605	4 subsection (b)(1);
606	606	5 (B) two (2) calendar years, for directors appointed under
607	607	6 subsection (b)(2); and
608	608	7 (C) three (3) calendar years, for directors appointed under
609	609	8 subsection (b)(3) or (b)(4).
610	610	9 SECTION 11. IC 36-7-38-7.5, AS ADDED BY P.L.110-2017,
611	611	10 SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
612	612	11 JULY 1, 2022]: Sec. 7.5. (a) This section applies to the board of a land
613	613	12 bank established by a third class city.
614	614	13 (b) The board of a land bank to which this section applies is
615	615	14 comprised of the following:
616	616	15 (1) Three (3) directors appointed by the executive of the third
617	617	16 class city. A director appointed under this subdivision must be a
618	618	17 resident of the third class city.
619	619	18 (2) Three (3) directors appointed by the legislative body of the
620	620	19 third class city. A director appointed under this subdivision must
621	621	20 be a resident of the third class city.
622	622	21 (3) A director appointed by the county treasurer of the county in
623	623	22 which the third class city is located, or the county treasurer of the
624	624	23 county in which most residents of the third class city reside, if the
625	625	24 third class city is located in more than one (1) county. A director
626	626	25 appointed under this subdivision must be a resident of the third
627	627	26 class city.
628	628	27 (4) At most two (2) additional directors appointed, as applicable,
629	629	28 in the manner and subject to the requirements set forth in the land
630	630	29 bank's bylaws.
631	631	30 (c) A majority of the directors appointed under subsection (b)
632	632	31 to the board of a land bank must be residents of the third class city.
633	633	32 (c) (d) The terms of the initial directors of a land bank to which this
634	634	33 section applies are equal to:
635	635	34 (1) the remainder of the calendar year in which the land bank is
636	636	35 established; plus
637	637	36 (2) a number of additional years equal to:
638	638	37 (A) one (1) calendar year, for directors appointed under
639	639	38 subsection (b)(1);
640	640	39 (B) two (2) calendar years, for directors appointed under
641	641	40 subsection (b)(2); and
642	642	41 (C) three (3) calendar years, for directors appointed under
643	643	42 subsection (b)(3) or (b)(4).
644	644	2022 IN 386—LS 7045/DI 129 15
645	645	1 SECTION 12. IC 36-7-38-7.7 IS ADDED TO THE INDIANA
646	646	2 CODE AS A NEW SECTION TO READ AS FOLLOWS
647	647	3 [EFFECTIVE JULY 1, 2022]: Sec. 7.7. (a) A land bank may establish
648	648	4 one (1) or more advisory committees to consult with and advise the
649	649	5 land bank on:
650	650	6 (1) properties within the territory of the land bank that are
651	651	7 imposing the greatest harm on residents and neighborhoods;
652	652	8 (2) resident and neighborhood priorities for new uses of land
653	653	9 bank properties; and
654	654	10 (3) options for potential transferees of land bank properties.
655	655	11 (b) As appropriate to the location of the real property of the
656	656	12 land bank and if a land bank elects to establish an advisory
657	657	13 committee under this section, the membership of the advisory
658	658	14 community shall include but is not limited to individuals from
659	659	15 formal and informal neighborhood specific community
660	660	16 associations, residents' associations, faith communities, community
661	661	17 development corporations, and anchor institutions.
662	662	18 SECTION 13. IC 36-7-38-8, AS ADDED BY P.L.211-2016,
663	663	19 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
664	664	20 JULY 1, 2022]: Sec. 8. Except as otherwise provided in this chapter,
665	665	21 a land bank is granted all powers necessary, convenient, or appropriate
666	666	22 to carry out and effectuate the land bank's public and corporate
667	667	23 purposes, which include the power to do the following:
668	668	24 (1) Sue or be sued in the land bank's own name.
669	669	25 (2) Enter into contracts.
670	670	26 (3) Establish accounts with financial institutions.
671	671	27 (4) Acquire by:
672	672	28 (A) purchase;
673	673	29 (B) exchange;
674	674	30 (C) gift;
675	675	31 (D) donation;
676	676	32 (E) grant;
677	677	33 (F) lease; or
678	678	34 (G) any combination of the methods listed in clauses (A)
679	679	35 through (F);
680	680	36 any real or personal property or interest in property needed
681	681	37 to carry out the mission of the land bank.
682	682	38 (4) (5) Acquire, lease, improve, repair, renovate, and dispose of
683	683	39 property.
684	684	40 (5) (6) Borrow money, including the ability to issue bonds.
685	685	41 (6) (7) Pledge collateral.
686	686	42 (7) (8) Make investments.
687	687	2022 IN 386—LS 7045/DI 129 16
688	688	1 (8) (9) Hire employees and other appropriate staff, including an
689	689	2 executive director. In accordance with section 18 of this
690	690	3 chapter, a land bank may determine the qualifications and fix
691	691	4 the compensation and benefits provided for employees, other
692	692	5 staff, and the executive director.
693	693	6 (9) (10) Procure insurance.
694	694	7 SECTION 14. IC 36-7-38-9, AS ADDED BY P.L.211-2016,
695	695	8 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
696	696	9 JULY 1, 2022]: Sec. 9. (a) A land bank shall endeavor to acquire a
697	697	10 diverse portfolio of properties to enable the land bank to dispose of
698	698	11 diverse properties in diverse real estate markets in the county or
699	699	12 municipal territory that the land bank serves and, thereby, generate
700	700	13 revenue for the land bank in a sustainable manner. put the properties
701	701	14 back to productive use, improve property conditions, contribute to
702	702	15 local and regional neighborhood stabilization efforts, expand
703	703	16 opportunities for development, and have a positive impact on the
704	704	17 local tax base. A land bank shall acquire property for the purpose of
705	705	18 supporting the mission of the land bank.
706	706	19 (b) A land bank's priorities concerning the disposition of properties
707	707	20 from the land bank must support the mission of the land bank, which
708	708	21 includes the sale or transfer of properties:
709	709	22 (1) for redevelopment that will act as a catalyst for further
710	710	23 development;
711	711	24 (2) that support a comprehensive development plan or strategic
712	712	25 plan for neighborhood revitalization;
713	713	26 (3) that reduce blight the number of blighted properties in the
714	714	27 community;
715	715	28 (4) that revitalize or stabilize neighborhoods;
716	716	29 (5) that will be returned to productive, tax paying status;
717	717	30 (6) that will be returned to productive uses, including
718	718	31 development of side lots, green spaces, and gardens;
719	719	32 (7) that are available for immediate ownership or occupancy
720	720	33 without a need for substantial rehabilitation;
721	721	34 (8) that will be used for affordable housing; or
722	722	35 (9) that will generate operating support for the functions of a land
723	723	36 bank.
724	724	37 SECTION 15. IC 36-7-38-10, AS ADDED BY P.L.211-2016,
725	725	38 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
726	726	39 JULY 1, 2022]: Sec. 10. (a) A land bank shall do the following:
727	727	40 (1) Maintain an inventory of real property held by the land bank.
728	728	41 (2) Develop policies, guidelines, and procedures for the
729	729	42 acquisition, redevelopment, and disposition of property by and
730	730	2022 IN 386—LS 7045/DI 129 17
731	731	1 from the land bank. The policies, guidelines, and procedures
732	732	2 developed under this subdivision must be formulated in plain
733	733	3 language with the objective of being clearly understood.
734	734	4 (3) Make the information described in subdivisions (1) and (2)
735	735	5 available for inspection:
736	736	6 (A) at the offices of the land bank during regular business
737	737	7 hours; and
738	738	8 (B) on the land bank's Internet web site.
739	739	9 (4) Coordinate the land bank's activities with any land use plans
740	740	10 that affect real property held by the land bank.
741	741	11 (b) If real property held by a county land bank is located in the
742	742	12 territory of a municipality of the county, the county land bank shall
743	743	13 offer to convey the real property to the municipality before the county
744	744	14 land bank offers, or accepts an offer, to convey the real property to any
745	745	15 other individual or entity. An offer to convey real property made by a
746	746	16 county land bank to a municipality under this section subsection
747	747	17 expires sixty (60) days after the county land bank makes the offer,
748	748	18 unless the county land bank and the municipality agree to another
749	749	19 period.
750	750	20 (c) This subsection applies to a land bank created pursuant to an
751	751	21 interlocal agreement under section 2(b) of this chapter that is
752	752	22 composed of two (2) or more contiguous counties. If real property
753	753	23 held by a land bank composed of two (2) or more contiguous
754	754	24 counties is located in the territory of a municipality of a county
755	755	25 that is a party to the interlocal agreement, the land bank shall offer
756	756	26 to convey the real property to the municipality before the land
757	757	27 bank offers, or accepts an offer, to convey the real property to any
758	758	28 other individual or entity. An offer to convey real property made
759	759	29 by a land bank composed of two (2) or more counties to a
760	760	30 municipality under this subsection expires sixty (60) days after the
761	761	31 land bank makes the offer, unless the land bank and the
762	762	32 municipality agree to another period.
763	763	33 SECTION 16. IC 36-7-38-11, AS ADDED BY P.L.211-2016,
764	764	34 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
765	765	35 JULY 1, 2022]: Sec. 11. (a) A land bank may:
766	766	36 (1) enter into an interlocal agreement under IC 36-1-7 with
767	767	37 another governmental entity, including, subject to subsection
768	768	38 (b), the establishment of processes to improve the quality of
769	769	39 title and marketability of property the land bank owns to
770	770	40 extinguish any liens that exist on the property; or
771	771	41 (2) otherwise contract with another governmental entity in Indiana
772	772	42 to perform services for the governmental entity.
773	773	2022 IN 386—LS 7045/DI 129 18
774	774	1 (b) The following are exempt from the scope of an interlocal
775	775	2 agreement described in subsection (a)(1) to extinguish liens that
776	776	3 exist on a property the land bank owns:
777	777	4 (1) A lien granted priority under federal law.
778	778	5 (2) A lien of the state.
779	779	6 (3) Any valid easements, covenants, declarations, or deed
780	780	7 restrictions that encumber the property as shown in the
781	781	8 public record.
782	782	9 SECTION 17. IC 36-7-38-18, AS ADDED BY P.L.211-2016,
783	783	10 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
784	784	11 JULY 1, 2022]: Sec. 18. (a) Employees of a land bank are not
785	785	12 employees of the eligible unit that established the land bank.
786	786	13 (b) If a land bank enters into an interlocal agreement under
787	787	14 IC 36-1-7 as provided in section 11 of this chapter, any employees
788	788	15 of an eligible unit who may be contracted to provide staffing
789	789	16 services to the land bank pursuant to the interlocal agreement
790	790	17 retain their status as public employees of the eligible unit. Nothing
791	791	18 in this subsection shall be construed to alter or otherwise affect the
792	792	19 public employee's status as an employee of the eligible unit.
793	793	20 (b) (c) The board of a land bank may elect by resolution to provide
794	794	21 programs of group health insurance for the land bank's employees and
795	795	22 retired employees as provided under IC 5-10-8-2.6.
796	796	23 (c) (d) The board of a land bank may elect by resolution to provide
797	797	24 retirement and disability benefits for employees, which may be by
798	798	25 means of participation in the public employees' retirement fund as
799	799	26 provided under IC 5-10.3-6.
800	800	2022 IN 386—LS 7045/DI 129