Indiana 2023 Regular Session

Indiana House Bill HB1473 Compare Versions

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

Old	New	Differences
1	1
2	2	Introduced Version
3	3	HOUSE BILL No. 1473
4	4	_____
5	5	DIGEST OF INTRODUCED BILL
6	6	Citations Affected: IC 15-11-16; IC 15-12-5-6.
7	7	Synopsis: Indiana farmland trust. Establishes the farmland trust
8	8	advisory board. Authorizes the Indiana state department of agriculture
9	9	(department) to accept or acquire certain real or personal property to be
10	10	held in trust. Allows the department to lease agricultural land that is
11	11	held in trust. Creates the Indiana farmland trust fund to: (1) purchase
12	12	permanent agricultural conservation easements; (2) purchase
13	13	agricultural land; and (3) maintain any agricultural land that is held in
14	14	trust by the department. Provides that an agricultural conservation
15	15	easement that meets the agricultural conservation easement
16	16	requirements shall be assessed and taxed on a basis that reflects the
17	17	agricultural conservation easement. Provides that the state or a unit of
18	18	local government may not acquire an interest in any real property
19	19	through eminent domain if the real property is subject to an agricultural
20	20	conservation easement, unless permission has been granted by the
21	21	director of the department. Specifies that an agricultural conservation
22	22	easement does not affect the ability of a public utility or a municipally
23	23	owned utility to acquire property or property rights to be used in
24	24	connection with the provision of utility services to the public. Requires
25	25	the department to adopt rules concerning requirements to lease
26	26	agricultural land held in trust by the department.
27	27	Effective: July 1, 2023.
28	28	Bauer M
29	29	January 17, 2023, read first time and referred to Committee on Agriculture and Rural
30	30	Development.
31	31	2023 IN 1473—LS 7422/DI 77 Introduced
32	32	First Regular Session of the 123rd General Assembly (2023)
33	33	PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
34	34	Constitution) is being amended, the text of the existing provision will appear in this style type,
35	35	additions will appear in this style type, and deletions will appear in this style type.
36	36	Additions: Whenever a new statutory provision is being enacted (or a new constitutional
37	37	provision adopted), the text of the new provision will appear in this style type. Also, the
38	38	word NEW will appear in that style type in the introductory clause of each SECTION that adds
39	39	a new provision to the Indiana Code or the Indiana Constitution.
40	40	Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
41	41	between statutes enacted by the 2022 Regular Session of the General Assembly.
42	42	HOUSE BILL No. 1473
43	43	A BILL FOR AN ACT to amend the Indiana Code concerning
44	44	agriculture and animals.
45	45	Be it enacted by the General Assembly of the State of Indiana:
46	46	1 SECTION 1. IC 15-11-16 IS ADDED TO THE INDIANA CODE
47	47	2 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
48	48	3 JULY 1, 2023]:
49	49	4 Chapter 16. Indiana Farmland Trust
50	50	5 Sec. 1. As used in this chapter, "agricultural conservation
51	51	6 easement" means a written conveyance, subject to permitted uses
52	52	7 necessary for agricultural use, in which the owner:
53	53	8 (1) relinquishes to the public in perpetuity the owner's
54	54	9 development rights; and
55	55	10 (2) makes a restrictive covenant running with the real
56	56	11 property not to undertake development.
57	57	12 Sec. 2. As used in this chapter, "agricultural use" has the
58	58	13 meaning set forth in IC 36-7-4-616(b) and includes the production
59	59	14 of livestock or livestock products, commercial aquaculture, equine
60	60	15 or equine products, real property designated as a conservation
61	61	16 reserve plan, pastureland, poultry or poultry products,
62	62	17 horticultural or nursery stock, fruit, vegetables, forage, grains,
63	63	2023 IN 1473—LS 7422/DI 77 2
64	64	1 timber, trees, bees and apiary products, other agricultural crops,
65	65	2 general farming operation purposes, or agricultural real property
66	66	3 that lays fallow.
67	67	4 Sec. 3. As used in this chapter, "board" refers to the farmland
68	68	5 trust advisory board established by section 6 of the chapter.
69	69	6 Sec. 4. As used in this chapter, "fund" refers to the Indiana
70	70	7 farmland trust fund created by section 9 of this chapter.
71	71	8 Sec. 5. As used in this chapter, "unit of local government"
72	72	9 means a:
73	73	10 (1) county;
74	74	11 (2) city;
75	75	12 (3) town; or
76	76	13 (4) township;
77	77	14 located in Indiana.
78	78	15 Sec. 6. (a) The farmland trust advisory board is established.
79	79	16 (b) The board consists of five (5) voting members appointed by
80	80	17 the director. The director shall appoint a member to serve as
81	81	18 chairperson of the board.
82	82	19 (c) The term of a member is four (4) years. Each term begins on
83	83	20 July 1 and ends on June 30 in the fourth year of the member's
84	84	21 term. However, a member may continue to serve until the
85	85	22 member's successor is appointed.
86	86	23 (d) A member of the board may not serve more than two (2)
87	87	24 consecutive terms.
88	88	25 (e) A member of the board is not entitled to a per diem.
89	89	26 (f) Notwithstanding subsection (c), the director shall stagger the
90	90	27 initial terms of the board members.
91	91	28 Sec. 7. (a) The board shall make recommendations to the
92	92	29 director on:
93	93	30 (1) the appropriate uses of the fund;
94	94	31 (2) criteria to be used to select agricultural land to be held in
95	95	32 trust;
96	96	33 (3) agricultural land to be leased by the trust;
97	97	34 (4) best practices for the agricultural land maintained or
98	98	35 acquired by the department; and
99	99	36 (5) rules to administer this chapter, including leasing
100	100	37 requirements.
101	101	38 (b) The board shall meet at the call of the director.
102	102	39 Sec. 8. (a) The department is authorized to accept or acquire
103	103	40 through purchase, lease, donation, or agreement:
104	104	41 (1) any agricultural lands, easements, or real and personal
105	105	42 property; or
106	106	2023 IN 1473—LS 7422/DI 77 3
107	107	1 (2) rights to agricultural land, easements, or real and personal
108	108	2 property, including buildings, structures, improvements,
109	109	3 equipment, or facilities;
110	110	4 to be held in trust by the department for the benefit of the people
111	111	5 of Indiana.
112	112	6 (b) The department may lease agricultural land that is held in
113	113	7 trust to individuals who will use the land for an agricultural use.
114	114	8 The lease may not exceed twenty (20) years.
115	115	9 (c) Agricultural land that is accepted or acquired by the
116	116	10 department under this chapter must incorporate best practices to
117	117	11 ensure the agricultural land is used and maintained using the best
118	118	12 environmental quality of the land and conservation and
119	119	13 stewardship practices as established by the department.
120	120	14 Sec. 9. (a) The Indiana farmland trust fund is created to:
121	121	15 (1) purchase permanent agricultural conservation easements
122	122	16 that comply with the requirements under section 10 of this
123	123	17 chapter;
124	124	18 (2) purchase agricultural land; and
125	125	19 (3) maintain any agricultural land that is held in trust and
126	126	20 administered by the department.
127	127	21 The fund shall be administered by the department.
128	128	22 (b) Expenses of administering the fund shall be paid from
129	129	23 money in the fund.
130	130	24 (c) The treasurer of state shall invest the money in the fund not
131	131	25 currently needed to meet the obligations of the fund in the same
132	132	26 manner as other public money may be invested. Interest that
133	133	27 accrues from these investments shall be deposited in the state
134	134	28 general fund.
135	135	29 (d) The fund consists of:
136	136	30 (1) appropriations made by the general assembly;
137	137	31 (2) gifts, donations, and grants;
138	138	32 (3) federal grants and funds; and
139	139	33 (4) money collected from leases.
140	140	34 (e) Money in the fund at the end of a state fiscal year does not
141	141	35 revert to the state general fund.
142	142	36 (f) The department may not expend money in the fund to
143	143	37 acquire an interest in the real property through eminent domain.
144	144	38 Sec. 10. (a) The department may use money in the fund to
145	145	39 purchase permanent agricultural conservation easements if the
146	146	40 following requirements are met:
147	147	41 (1) The agricultural conservation easement is subject to the
148	148	42 requirements and enforcement under IC 32-23-5.
149	149	2023 IN 1473—LS 7422/DI 77 4
150	150	1 (2) The real property must be used for agricultural use.
151	151	2 (3) The real property is not less than five (5) contiguous acres.
152	152	3 (4) The department may not pay more than fifty percent
153	153	4 (50%) of the fair market value of the agricultural
154	154	5 conservation easement. However, the department may
155	155	6 leverage matching dollars from federal sources, units of local
156	156	7 government, or private sources.
157	157	8 (5) The holder of the agricultural conservation easement is:
158	158	9 (A) the department or a governmental body that is
159	159	10 empowered to hold an interest in real property under state
160	160	11 or federal law; or
161	161	12 (B) a charitable corporation, charitable association,
162	162	13 nonprofit corporation, or charitable trust whose purposes
163	163	14 or powers include assuring the availability of real property
164	164	15 for agricultural or forestry use.
165	165	16 (6) Any other requirements of the department.
166	166	17 (b) Before offering to purchase a permanent agricultural
167	167	18 conservation easement, the department may request that the
168	168	19 Indiana land resources council (IC 15-12-5) review the proposed
169	169	20 agricultural conservation easement.
170	170	21 Sec. 11. For purposes of IC 6-1.1, real property that is subject
171	171	22 to an agricultural conservation easement that meets the
172	172	23 requirements under IC 32-23-5 shall be assessed and taxed on a
173	173	24 basis that reflects the agricultural conservation easement.
174	174	25 Sec. 12. Notwithstanding IC 32-24 or any other law, the state or
175	175	26 a unit of local government may not acquire an interest in any real
176	176	27 property through eminent domain if the real property is subject to
177	177	28 an agricultural conservation easement, unless permission has been
178	178	29 granted by the director.
179	179	30 Sec. 13. Nothing in this chapter or in an agricultural
180	180	31 conservation easement created under this chapter affects the
181	181	32 ability of a public utility (as defined in IC 8-1-2-1(a)) or a
182	182	33 municipally owned utility (as defined in IC 8-1-2-1(h)) to acquire
183	183	34 property or property rights to be used in connection with the
184	184	35 provision of utility services to the public.
185	185	36 Sec. 14. (a) The department may adopt rules under IC 4-22-2 to
186	186	37 administer this chapter.
187	187	38 (b) The department shall adopt rules under IC 4-22-2
188	188	39 concerning requirements for leases of agricultural land acquired
189	189	40 by the department under this chapter, including rules concerning
190	190	41 the selection process for granting a lease, renewal of leases,
191	191	42 maintenance of real a personal property under the lease, and
192	192	2023 IN 1473—LS 7422/DI 77 5
193	193	1 conditions for terminating a lease.
194	194	2 SECTION 2. IC 15-12-5-6, AS ADDED BY P.L.2-2008, SECTION
195	195	3 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1,
196	196	4 2023]: Sec. 6. The council may do the following:
197	197	5 (1) Provide technical assistance and information about land use
198	198	6 strategies.
199	199	7 (2) Facilitate collaboration among commonly affected state,
200	200	8 county, and local government units.
201	201	9 (3) Compile and maintain a land planning information library,
202	202	10 both hard copy and electronic, that includes current data on land
203	203	11 resources in Indiana.
204	204	12 (4) Establish or coordinate educational programs for
205	205	13 governmental units, nongovernmental entities, and the public with
206	206	14 special consideration for local planning commission members and
207	207	15 county commissioners.
208	208	16 (5) Provide counties and local communities conducting land use
209	209	17 planning with access to technical and legal assistance through a
210	210	18 referral service.
211	211	19 (6) Provide information to local authorities on model ordinances
212	212	20 for programs and techniques on land use.
213	213	21 (7) Obtain grants and assist counties and local communities in
214	214	22 locating additional funding sources for planning projects.
215	215	23 (8) Make recommendations to the general assembly and other
216	216	24 governmental bodies concerning land resources.
217	217	25 (9) When requested, advise the general assembly on proposals
218	218	26 relating to land resources.
219	219	27 (10) When requested, advise the Indiana state department of
220	220	28 agriculture on proposals relating to agricultural conservation
221	221	29 easements.
222	222	2023 IN 1473—LS 7422/DI 77