Introduced Version
HOUSE BILL No. 1439
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 36-7-14.
Synopsis: Oversight of redevelopment commission spending.
Requires a city council to approve all expenditures of a city
redevelopment commission.
Effective: July 1, 2023.
Miller D
January 17, 2023, read first time and referred to Committee on Local Government.
2023 IN 1439—LS 6974/DI 75 Introduced
First Regular Session of the 123rd General Assembly (2023)
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,
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Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
between statutes enacted by the 2022 Regular Session of the General Assembly.
HOUSE BILL No. 1439
A BILL FOR AN ACT to amend the Indiana Code concerning local
government.
Be it enacted by the General Assembly of the State of Indiana:
1 SECTION 1. IC 36-7-14-2.5, AS AMENDED BY P.L.149-2014,
2 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2023]: Sec. 2.5. (a) The assessment, planning, replanning,
4 remediation, development, and redevelopment of economic
5 development areas:
6 (1) are public and governmental functions that cannot be
7 accomplished through the ordinary operations of private
8 enterprise because of:
9 (A) the necessity for requiring the proper use of the land so as
10 to best serve the interests of the county and its citizens; and
11 (B) the costs of these projects;
12 (2) will:
13 (A) benefit the public health, safety, morals, and welfare;
14 (B) increase the economic well-being of the unit and the state;
15 and
16 (C) serve to protect and increase property values in the unit
17 and the state; and
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1 (3) are public uses and purposes for which public money may be
2 spent and private property may be acquired.
3 (b) This section and sections 41 and 43 of this chapter shall be
4 liberally construed to carry out the purposes of this section.
5 (c) Except as provided in subsection (d), a redevelopment
6 commission may not enter into any obligation payable from public
7 funds without first obtaining the approval, by ordinance or resolution,
8 of the legislative body of the unit.
9 (d) This subsection does not apply to a city redevelopment
10 commission. A redevelopment commission is not required to obtain
11 the approval of the legislative body of the unit under this section if:
12 (1) the obligation is for the acquisition of real property under this
13 chapter; and
14 (2) the agreement to acquire the real property requires the
15 redevelopment commission to:
16 (A) make payments for the real property to be acquired for a
17 term of three (3) years or less; or
18 (B) purchase the real property for a cost of less than five
19 million dollars ($5,000,000).
20 A redevelopment commission may not enter into an obligation payable
21 from public funds, other than an obligation described in this
22 subsection, unless the redevelopment commission first obtains the
23 approval of the legislative body of the unit as provided in subsection
24 (c).
25 (e) The approving ordinance or resolution of a legislative body
26 under subsection (c) must include the following:
27 (1) The maximum amount of the obligation.
28 (2) The maximum interest rate or rates, any provisions for
29 redemption before maturity, and any provisions for the payment
30 of capitalized interest associated with the obligation.
31 (3) The maximum term of the obligation.
32 SECTION 2. IC 36-7-14-8, AS AMENDED BY P.L.85-2017,
33 SECTION 121, IS AMENDED TO READ AS FOLLOWS
34 [EFFECTIVE JULY 1, 2023]: Sec. 8. (a) The redevelopment
35 commissioners shall hold a meeting for the purpose of organization not
36 later than thirty (30) days after they are appointed and, after that, each
37 year on a day that is not a Saturday, a Sunday, or a legal holiday and
38 that is their first meeting day of the year. They shall choose one (1) of
39 their members as president, another as vice president, and another as
40 secretary. These officers shall perform the duties usually pertaining to
41 their offices and shall serve from the date of their election until their
42 successors are elected and qualified.
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1 (b) The fiscal officer of the unit establishing a redevelopment
2 commission is the treasurer of the redevelopment commission.
3 Notwithstanding any other provision of this chapter, but subject to
4 subsection (c), the treasurer has charge over and is responsible for the
5 administration, investment, and disbursement of all funds and accounts
6 of the redevelopment commission in accordance with the requirements
7 of state laws that apply to other funds and accounts administered by the
8 fiscal officer. The treasurer shall report annually to the redevelopment
9 commission before April 1.
10 (c) Disbursements of funds of the redevelopment commission
11 are subject to the following:
12 (1) The treasurer of the redevelopment commission may disburse
13 funds of the redevelopment commission only after the
14 redevelopment commission allows and approves the
15 disbursement. However, the redevelopment commission may, by
16 rule or resolution, authorize the treasurer to make certain types of
17 disbursements before the redevelopment commission's allowance
18 and approval at its next regular meeting.
19 (2) The treasurer of a city redevelopment commission may
20 disburse funds of the redevelopment commission only after
21 the city fiscal body allows and approves the disbursement.
22 However, the city fiscal body may, by ordinance, authorize
23 the treasurer to make certain types of disbursements before
24 the city legislative body's allowance and approval at its next
25 regular meeting.
26 (d) The following apply to funds of the redevelopment commission:
27 (1) The funds must be accounted for separately by the unit
28 establishing the redevelopment commission and the daily balance
29 of the funds must be maintained in a separate ledger statement.
30 (2) Except as provided in subsection subsections (c)(2) and (e),
31 all funds designated as redevelopment commission funds must be
32 accessible to the redevelopment commission at any time.
33 (3) The amount of the daily balance of redevelopment
34 commission funds may not be below zero (0) at any time.
35 (4) The funds may not be maintained or used in a manner that is
36 intended to avoid the waiver procedures and requirements for a
37 unit and the redevelopment commission under subsection (e).
38 (e) If the fiscal body of a unit determines that it is necessary to
39 engage in short term borrowing until the next tax collection period, the
40 fiscal body of the unit may request approval from the redevelopment
41 commission to waive the requirement in subsection (d)(2). In order to
42 waive the requirement under subsection (d)(2), the fiscal body of the
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1 unit and the redevelopment commission must adopt similar resolutions
2 that set forth:
3 (1) the amount of the funds designated as redevelopment
4 commission funds that are no longer accessible to the
5 redevelopment commission under the waiver; and
6 (2) an expiration date for the waiver.
7 If a loan is made to a unit from funds designated as redevelopment
8 funds, the loan must be repaid by the unit and the funds made
9 accessible to the redevelopment commission not later than the end of
10 the calendar year in which the funds are received by the unit.
11 (f) Subsections (d) and (e) do not restrict transfers or uses by a
12 redevelopment commission made to meet commitments under a written
13 agreement of the redevelopment commission that was entered into
14 before January 1, 2016, if the written agreement complied with the
15 requirements existing under the law at the time the redevelopment
16 commission entered into the written agreement.
17 (g) The redevelopment commissioners may adopt the rules and
18 bylaws they consider necessary for the proper conduct of their
19 proceedings, the carrying out of their duties, and the safeguarding of
20 the money and property placed in their custody by this chapter. In
21 addition to the annual meeting, the commissioners may, by resolution
22 or in accordance with their rules and bylaws, prescribe the date and
23 manner of notice of other regular or special meetings.
24 (h) This subsection does not apply to a county redevelopment
25 commission that consists of seven (7) members. Three (3) of the
26 redevelopment commissioners constitute a quorum, and the
27 concurrence of three (3) commissioners is necessary to authorize any
28 action.
29 (i) This subsection applies only to a county redevelopment
30 commission that consists of seven (7) members. Four (4) of the
31 redevelopment commissioners constitute a quorum, and the
32 concurrence of four (4) commissioners is necessary to authorize any
33 action.
34 SECTION 3. IC 36-7-14-12.2, AS AMENDED BY P.L.95-2014,
35 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
36 JULY 1, 2023]: Sec. 12.2. (a) The redevelopment commission may do
37 the following:
38 (1) Acquire by purchase, exchange, gift, grant, condemnation, or
39 lease, or any combination of methods, any personal property or
40 interest in real property needed for the redevelopment of areas
41 needing redevelopment that are located within the corporate
42 boundaries of the unit.
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1 (2) Hold, use, sell (by conveyance by deed, land sale contract, or
2 other instrument), exchange, lease, rent, or otherwise dispose of
3 property acquired for use in the redevelopment of areas needing
4 redevelopment on the terms and conditions that the commission
5 considers best for the unit and its inhabitants.
6 (3) Sell, lease, or grant interests in all or part of the real property
7 acquired for redevelopment purposes to any other department of
8 the unit or to any other governmental agency for public ways,
9 levees, sewerage, parks, playgrounds, schools, and other public
10 purposes on any terms that may be agreed on.
11 (4) Clear real property acquired for redevelopment purposes.
12 (5) Enter on or into, inspect, investigate, and assess real property
13 and structures acquired or to be acquired for redevelopment
14 purposes to determine the existence, source, nature, and extent of
15 any environmental contamination, including the following:
16 (A) Hazardous substances.
17 (B) Petroleum.
18 (C) Other pollutants.
19 (6) Remediate environmental contamination, including the
20 following, found on any real property or structures acquired for
21 redevelopment purposes:
22 (A) Hazardous substances.
23 (B) Petroleum.
24 (C) Other pollutants.
25 (7) Repair and maintain structures acquired for redevelopment
26 purposes.
27 (8) Remodel, rebuild, enlarge, or make major structural
28 improvements on structures acquired for redevelopment purposes.
29 (9) Survey or examine any land to determine whether it should be
30 included within an area needing redevelopment to be acquired for
31 redevelopment purposes and to determine the value of that land.
32 (10) Appear before any other department or agency of the unit, or
33 before any other governmental agency in respect to any matter
34 affecting:
35 (A) real property acquired or being acquired for
36 redevelopment purposes; or
37 (B) any area needing redevelopment within the jurisdiction of
38 the commissioners.
39 (11) Institute or defend in the name of the unit any civil action.
40 (12) Use any legal or equitable remedy that is necessary or
41 considered proper to protect and enforce the rights of and perform
42 the duties of the department of redevelopment.
2023 IN 1439—LS 6974/DI 75 6
1 (13) Appoint an executive director, appraisers, real estate experts,
2 engineers, architects, surveyors, and attorneys.
3 (14) Appoint clerks, guards, laborers, and other employees the
4 commission considers advisable, except that those appointments
5 must be made in accordance with the merit system of the unit if
6 such a system exists.
7 (15) Prescribe the duties and regulate the compensation of
8 employees of the department of redevelopment.
9 (16) Provide a pension and retirement system for employees of
10 the department of redevelopment by using the Indiana public
11 employees' retirement fund or a retirement plan approved by the
12 United States Department of Housing and Urban Development.
13 (17) Discharge and appoint successors to employees of the
14 department of redevelopment subject to subdivision (14).
15 (18) Rent offices for use of the department of redevelopment, or
16 accept the use of offices furnished by the unit.
17 (19) Equip the offices of the department of redevelopment with
18 the necessary furniture, furnishings, equipment, records, and
19 supplies.
20 (20) Expend, on behalf of the special taxing district, all or any
21 part of the money of the special taxing district.
22 (21) Contract for the construction of:
23 (A) local public improvements (as defined in IC 36-7-14.5-6)
24 or structures that are necessary for redevelopment of areas
25 needing redevelopment or economic development within the
26 corporate boundaries of the unit; or
27 (B) any structure that enhances development or economic
28 development.
29 (22) Contract for the construction, extension, or improvement of
30 pedestrian skyways.
31 (23) Accept loans, grants, and other forms of financial assistance
32 from the federal government, the state government, a municipal
33 corporation, a special taxing district, a foundation, or any other
34 source.
35 (24) Provide financial assistance (including grants and loans) to
36 enable individuals and families to purchase or lease residential
37 units in a multiple unit residential structure within the district.
38 However, financial assistance may be provided only to individuals
39 and families whose income is at or below the unit's median
40 income for individuals and families, respectively.
41 (25) Provide financial assistance (including grants and loans) to
42 neighborhood development corporations to permit them to:
2023 IN 1439—LS 6974/DI 75 7
1 (A) provide financial assistance for the purposes described in
2 subdivision (24); or
3 (B) construct, rehabilitate, or repair commercial property
4 within the district.
5 (26) Require as a condition of financial assistance to the owner of
6 a multiple unit residential structure that any of the units leased by
7 the owner must be leased:
8 (A) for a period to be determined by the commission, which
9 may not be less than five (5) years;
10 (B) to families whose income does not exceed eighty percent
11 (80%) of the unit's median income for families; and
12 (C) at an affordable rate.
13 (27) This subdivision does not apply to a redevelopment
14 commission in a county for which the total amount of net property
15 taxes allocated to all allocation areas or other tax increment
16 financing areas established by a redevelopment commission,
17 military base reuse authority, military base development authority,
18 or another similar entity in the county in the preceding calendar
19 year exceeded nineteen percent (19%) of the total net property
20 taxes billed in the county in the preceding calendar year. Subject
21 to prior approval by the fiscal body of the unit that established the
22 redevelopment commission, expend money and provide financial
23 assistance (including grants and loans):
24 (A) in direct support of:
25 (i) an active military base located within the unit; or
26 (ii) an entity located in the territory or facilities of a military
27 base or former military base within the unit that is scheduled
28 for closing or is completely or partially inactive or closed, or
29 an entity that is located in any territory or facilities of the
30 United States Department of Defense within the unit that are
31 scheduled for closing or are completely or partially inactive
32 or closed;
33 including direct support for the promotion of the active
34 military base or entity, the growth of the active military base
35 or entity, and activities at the active military base or entity; and
36 (B) in support of any other entity that provides services or
37 direct support to an active military base or entity described in
38 clause (A).
39 The fiscal body of the unit that established the redevelopment
40 commission must separately approve each grant, loan, or other
41 expenditure for financial assistance under this subdivision. The
42 terms of any loan that is made under this subdivision may be
2023 IN 1439—LS 6974/DI 75 8
1 changed only if the change is approved by the fiscal body of the
2 unit that established the redevelopment commission. As used in
3 this subdivision, "active military base" has the meaning set forth
4 in IC 36-1-4-20.
5 (b) Conditions imposed by the commission under subsection (a)(26)
6 remain in force throughout the period determined under subsection
7 (a)(26)(A), even if the owner sells, leases, or conveys the property. The
8 subsequent owner or lessee is bound by the conditions for the
9 remainder of the period.
10 (c) As used in this section, "pedestrian skyway" means a pedestrian
11 walkway within or outside of the public right-of-way and through and
12 above public or private property and buildings, including all structural
13 supports required to connect skyways to buildings or buildings under
14 construction. Pedestrian skyways constructed, extended, or improved
15 over or through public or private property constitute public property
16 and public improvements, constitute a public use and purpose, and do
17 not require vacation of any public way or other property.
18 (d) All powers that may be exercised under this chapter by the
19 redevelopment commission may also be exercised by the
20 redevelopment commission in carrying out its duties and purposes
21 under IC 36-7-14.5. However, if a power pertains to issuing bonds or
22 incurring an obligation, the exercise of the power must first be
23 specifically approved by the fiscal or legislative body of the unit,
24 whichever applies. In addition, in the case of a city redevelopment
25 commission, any expenditure of the commission that is not
26 approved for advance payment under section 8 of this chapter
27 must first be specifically approved by the city legislative body.
28 (e) A commission may not exercise the power of eminent domain.
29 SECTION 4. IC 36-7-14-19, AS AMENDED BY P.L.183-2018,
30 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
31 JULY 1, 2023]: Sec. 19. (a) If no appeal is taken or if an appeal is
32 taken but is unsuccessful, the redevelopment commission shall proceed
33 with the proposed project to the extent that money is available for that
34 purpose.
35 (b) The redevelopment commission shall first approve and adopt a
36 list of the real property and interests in real property to be acquired and
37 the price to be offered to the owner of each parcel of interest. For
38 properties and interests in real property that:
39 (1) are not for sale at auction; or
40 (2) have a total purchase price (including land and structures, if
41 any) of at least twenty-five thousand dollars ($25,000);
42 the prices to be offered may not exceed the average of two (2)
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1 independent appraisals of fair market value procured by the
2 commission except that appraisals are not required in transactions with
3 other governmental agencies. The prices indicated on the list may not
4 be exceeded unless specifically authorized by the commission or
5 ordered by a court in condemnation proceedings. The commission may
6 except from acquisition any real property in the area if the commission
7 finds that such an acquisition is not necessary under the redevelopment
8 plan. Appraisals made under this section are for the information of the
9 commission and are not open for public inspection.
10 (c) Negotiations for the purchase of property may be carried on
11 directly by the redevelopment commission, by its employees, or by
12 expert negotiations, but no option, contract, or understanding relative
13 to the purchase of real property is binding on the commission until
14 approved and accepted by the commission in writing. The commission
15 may authorize the payment of a nominal fee to bind an option and as a
16 part of the consideration for conveyance may agree to pay the expense
17 incident to the conveyance and determination of the title of the
18 property. Payment for the property purchased shall be made when and
19 as directed by the commission but only on delivery of proper
20 instruments conveying the title or interest of the owner to the "City (or
21 Town or County) of ______________, Department of Redevelopment".
22 Notwithstanding the other provisions of this subsection, any agreement
23 by:
24 (1) a city redevelopment commission for the purchase of real
25 property is subject to the prior approval of the city legislative
26 body; or
27 (2) the redevelopment commission of a county or town to:
28 (1) (A) make payments for the property to be purchased for a
29 term exceeding three (3) years; or
30 (2) (B) pay a purchase price for the property that exceeds five
31 million dollars ($5,000,000);
32 is subject to the prior approval of the legislative body of the unit.
33 (d) All real property and interests in real property acquired by the
34 redevelopment commission are free and clear of all governmental liens,
35 assessments, and other governmental charges except for current
36 property taxes, which shall be prorated to the date of acquisition.
37 (e) Notwithstanding subsections (a) through (d), the redevelopment
38 commission may, before the time referred to in this section, accept gifts
39 of property needed for the redevelopment of redevelopment project
40 areas if the property is free and clear of all governmental liens other
41 than taxes, assessments, and other governmental charges. The
42 commission may, before the time referred to in this section, take
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1 options on or contract for the acquisition of property needed for the
2 redevelopment of redevelopment project areas if the options and
3 contracts are not binding on the commission or the district until the
4 time referred to in this section and until money is available to pay the
5 consideration set out in the options or contracts.
6 SECTION 5. IC 36-7-14-43, AS AMENDED BY P.L.149-2014,
7 SECTION 19, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
8 JULY 1, 2023]: Sec. 43. (a) All of the rights, powers, privileges, and
9 immunities that may be exercised by the commission in a
10 redevelopment project area or urban renewal area may be exercised by
11 the commission in an economic development area, subject to the
12 following:
13 (1) The content and manner of exercise of these rights, powers,
14 privileges, and immunities shall be determined by the purposes
15 and nature of an economic development area. A right, power,
16 privilege, or immunity that pertains to issuing bonds or incurring
17 an obligation may not be exercised by a redevelopment
18 commission unless it is first specifically authorized by the fiscal
19 or legislative body of the unit, whichever applies, regardless of
20 any other law. In addition, in the case of a city redevelopment
21 commission, any expenditure of the commission that is not
22 approved for advance payment under section 8 of this chapter
23 must first be specifically approved by the city legislative body.
24 (2) Real property (or interests in real property) relative to which
25 action is taken in an economic development area is not required
26 to meet the conditions described in IC 36-7-1-3.
27 (3) The special tax levied in accordance with section 27 of this
28 chapter may be used to carry out activities under this chapter in
29 economic development areas.
30 (4) Bonds may be issued in accordance with section 25.1 of this
31 chapter to defray expenses of carrying out activities under this
32 chapter in economic development areas if no other revenue
33 sources are available for this purpose.
34 (5) The tax exemptions set forth in section 37 of this chapter are
35 applicable in economic development areas.
36 (6) An economic development area may be an allocation area for
37 the purposes of distribution and allocation of property taxes.
38 (b) The content and manner of discharge of duties set forth in
39 section 11 of this chapter shall be determined by the purposes and
40 nature of an economic development area.
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