Introduced Version
HOUSE BILL No. 1473
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 15-11-16; IC 15-12-5-6.
Synopsis: Indiana farmland trust. Establishes the farmland trust
advisory board. Authorizes the Indiana state department of agriculture
(department) to accept or acquire certain real or personal property to be
held in trust. Allows the department to lease agricultural land that is
held in trust. Creates the Indiana farmland trust fund to: (1) purchase
permanent agricultural conservation easements; (2) purchase
agricultural land; and (3) maintain any agricultural land that is held in
trust by the department. Provides that an agricultural conservation
easement that meets the agricultural conservation easement
requirements shall be assessed and taxed on a basis that reflects the
agricultural conservation easement. Provides that the state or a unit of
local government may not acquire an interest in any real property
through eminent domain if the real property is subject to an agricultural
conservation easement, unless permission has been granted by the
director of the department. Specifies that an agricultural conservation
easement does not affect the ability of a public utility or a municipally
owned utility to acquire property or property rights to be used in
connection with the provision of utility services to the public. Requires
the department to adopt rules concerning requirements to lease
agricultural land held in trust by the department.
Effective: July 1, 2023.
Bauer M
January 17, 2023, read first time and referred to Committee on Agriculture and Rural
Development.
2023 IN 1473—LS 7422/DI 77 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,
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 2022 Regular Session of the General Assembly.
HOUSE BILL No. 1473
A BILL FOR AN ACT to amend the Indiana Code concerning
agriculture and animals.
Be it enacted by the General Assembly of the State of Indiana:
1 SECTION 1. IC 15-11-16 IS ADDED TO THE INDIANA CODE
2 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2023]:
4 Chapter 16. Indiana Farmland Trust
5 Sec. 1. As used in this chapter, "agricultural conservation
6 easement" means a written conveyance, subject to permitted uses
7 necessary for agricultural use, in which the owner:
8 (1) relinquishes to the public in perpetuity the owner's
9 development rights; and
10 (2) makes a restrictive covenant running with the real
11 property not to undertake development.
12 Sec. 2. As used in this chapter, "agricultural use" has the
13 meaning set forth in IC 36-7-4-616(b) and includes the production
14 of livestock or livestock products, commercial aquaculture, equine
15 or equine products, real property designated as a conservation
16 reserve plan, pastureland, poultry or poultry products,
17 horticultural or nursery stock, fruit, vegetables, forage, grains,
2023 IN 1473—LS 7422/DI 77 2
1 timber, trees, bees and apiary products, other agricultural crops,
2 general farming operation purposes, or agricultural real property
3 that lays fallow.
4 Sec. 3. As used in this chapter, "board" refers to the farmland
5 trust advisory board established by section 6 of the chapter.
6 Sec. 4. As used in this chapter, "fund" refers to the Indiana
7 farmland trust fund created by section 9 of this chapter.
8 Sec. 5. As used in this chapter, "unit of local government"
9 means a:
10 (1) county;
11 (2) city;
12 (3) town; or
13 (4) township;
14 located in Indiana.
15 Sec. 6. (a) The farmland trust advisory board is established.
16 (b) The board consists of five (5) voting members appointed by
17 the director. The director shall appoint a member to serve as
18 chairperson of the board.
19 (c) The term of a member is four (4) years. Each term begins on
20 July 1 and ends on June 30 in the fourth year of the member's
21 term. However, a member may continue to serve until the
22 member's successor is appointed.
23 (d) A member of the board may not serve more than two (2)
24 consecutive terms.
25 (e) A member of the board is not entitled to a per diem.
26 (f) Notwithstanding subsection (c), the director shall stagger the
27 initial terms of the board members.
28 Sec. 7. (a) The board shall make recommendations to the
29 director on:
30 (1) the appropriate uses of the fund;
31 (2) criteria to be used to select agricultural land to be held in
32 trust;
33 (3) agricultural land to be leased by the trust;
34 (4) best practices for the agricultural land maintained or
35 acquired by the department; and
36 (5) rules to administer this chapter, including leasing
37 requirements.
38 (b) The board shall meet at the call of the director.
39 Sec. 8. (a) The department is authorized to accept or acquire
40 through purchase, lease, donation, or agreement:
41 (1) any agricultural lands, easements, or real and personal
42 property; or
2023 IN 1473—LS 7422/DI 77 3
1 (2) rights to agricultural land, easements, or real and personal
2 property, including buildings, structures, improvements,
3 equipment, or facilities;
4 to be held in trust by the department for the benefit of the people
5 of Indiana.
6 (b) The department may lease agricultural land that is held in
7 trust to individuals who will use the land for an agricultural use.
8 The lease may not exceed twenty (20) years.
9 (c) Agricultural land that is accepted or acquired by the
10 department under this chapter must incorporate best practices to
11 ensure the agricultural land is used and maintained using the best
12 environmental quality of the land and conservation and
13 stewardship practices as established by the department.
14 Sec. 9. (a) The Indiana farmland trust fund is created to:
15 (1) purchase permanent agricultural conservation easements
16 that comply with the requirements under section 10 of this
17 chapter;
18 (2) purchase agricultural land; and
19 (3) maintain any agricultural land that is held in trust and
20 administered by the department.
21 The fund shall be administered by the department.
22 (b) Expenses of administering the fund shall be paid from
23 money in the fund.
24 (c) The treasurer of state shall invest the money in the fund not
25 currently needed to meet the obligations of the fund in the same
26 manner as other public money may be invested. Interest that
27 accrues from these investments shall be deposited in the state
28 general fund.
29 (d) The fund consists of:
30 (1) appropriations made by the general assembly;
31 (2) gifts, donations, and grants;
32 (3) federal grants and funds; and
33 (4) money collected from leases.
34 (e) Money in the fund at the end of a state fiscal year does not
35 revert to the state general fund.
36 (f) The department may not expend money in the fund to
37 acquire an interest in the real property through eminent domain.
38 Sec. 10. (a) The department may use money in the fund to
39 purchase permanent agricultural conservation easements if the
40 following requirements are met:
41 (1) The agricultural conservation easement is subject to the
42 requirements and enforcement under IC 32-23-5.
2023 IN 1473—LS 7422/DI 77 4
1 (2) The real property must be used for agricultural use.
2 (3) The real property is not less than five (5) contiguous acres.
3 (4) The department may not pay more than fifty percent
4 (50%) of the fair market value of the agricultural
5 conservation easement. However, the department may
6 leverage matching dollars from federal sources, units of local
7 government, or private sources.
8 (5) The holder of the agricultural conservation easement is:
9 (A) the department or a governmental body that is
10 empowered to hold an interest in real property under state
11 or federal law; or
12 (B) a charitable corporation, charitable association,
13 nonprofit corporation, or charitable trust whose purposes
14 or powers include assuring the availability of real property
15 for agricultural or forestry use.
16 (6) Any other requirements of the department.
17 (b) Before offering to purchase a permanent agricultural
18 conservation easement, the department may request that the
19 Indiana land resources council (IC 15-12-5) review the proposed
20 agricultural conservation easement.
21 Sec. 11. For purposes of IC 6-1.1, real property that is subject
22 to an agricultural conservation easement that meets the
23 requirements under IC 32-23-5 shall be assessed and taxed on a
24 basis that reflects the agricultural conservation easement.
25 Sec. 12. Notwithstanding IC 32-24 or any other law, the state or
26 a unit of local government may not acquire an interest in any real
27 property through eminent domain if the real property is subject to
28 an agricultural conservation easement, unless permission has been
29 granted by the director.
30 Sec. 13. Nothing in this chapter or in an agricultural
31 conservation easement created under this chapter affects the
32 ability of a public utility (as defined in IC 8-1-2-1(a)) or a
33 municipally owned utility (as defined in IC 8-1-2-1(h)) to acquire
34 property or property rights to be used in connection with the
35 provision of utility services to the public.
36 Sec. 14. (a) The department may adopt rules under IC 4-22-2 to
37 administer this chapter.
38 (b) The department shall adopt rules under IC 4-22-2
39 concerning requirements for leases of agricultural land acquired
40 by the department under this chapter, including rules concerning
41 the selection process for granting a lease, renewal of leases,
42 maintenance of real a personal property under the lease, and
2023 IN 1473—LS 7422/DI 77 5
1 conditions for terminating a lease.
2 SECTION 2. IC 15-12-5-6, AS ADDED BY P.L.2-2008, SECTION
3 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1,
4 2023]: Sec. 6. The council may do the following:
5 (1) Provide technical assistance and information about land use
6 strategies.
7 (2) Facilitate collaboration among commonly affected state,
8 county, and local government units.
9 (3) Compile and maintain a land planning information library,
10 both hard copy and electronic, that includes current data on land
11 resources in Indiana.
12 (4) Establish or coordinate educational programs for
13 governmental units, nongovernmental entities, and the public with
14 special consideration for local planning commission members and
15 county commissioners.
16 (5) Provide counties and local communities conducting land use
17 planning with access to technical and legal assistance through a
18 referral service.
19 (6) Provide information to local authorities on model ordinances
20 for programs and techniques on land use.
21 (7) Obtain grants and assist counties and local communities in
22 locating additional funding sources for planning projects.
23 (8) Make recommendations to the general assembly and other
24 governmental bodies concerning land resources.
25 (9) When requested, advise the general assembly on proposals
26 relating to land resources.
27 (10) When requested, advise the Indiana state department of
28 agriculture on proposals relating to agricultural conservation
29 easements.
2023 IN 1473—LS 7422/DI 77