Indiana 2023 Regular Session

Indiana Senate Bill SB0261 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. 261
4	4	_____
5	5	DIGEST OF INTRODUCED BILL
6	6	Citations Affected: IC 36-7-22.1.
7	7	Synopsis: Economic development districts. Creates a procedure to
8	8	establish a community infrastructure improvement district (district).
9	9	Specifies that the procedure added by the bill allowing for the
10	10	establishment of a district does not authorize the unit to establish a
11	11	district that overlaps with an economic improvement district. Requires
12	12	a petition for the establishment of a district to include a rate and
13	13	methodology report. Specifies the contents of the report. Specifies the
14	14	basis upon which benefits accruing to parcels of real property within
15	15	a district may be apportioned among those parcels. Requires a
16	16	determination that the aggregate assessments within a district: (1) do
17	17	not exceed 30% of the projected assessed value of property within the
18	18	district; or (2) in the case of a district that is established for single
19	19	family residences, do not exceed 10% of the projected assessed value
20	20	per single family residence within the district; before a legislative body
21	21	may adopt an ordinance to establish a district. Requires a community
22	22	infrastructure improvement board (board) to assist the county treasurer
23	23	in order to make certain specified determinations and designations
24	24	regarding annual assessments within a district. Adds specific
25	25	provisions that apply to the board's issuance of revenue bonds. Sunsets
26	26	these provisions after five years.
27	27	Effective: July 1, 2023.
28	28	Buchanan, Baldwin
29	29	January 11, 2023, read first time and referred to Committee on Tax and Fiscal Policy.
30	30	2023 IN 261—LS 7322/DI 120 Introduced
31	31	First Regular Session of the 123rd General Assembly (2023)
32	32	PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
33	33	Constitution) is being amended, the text of the existing provision will appear in this style type,
34	34	additions will appear in this style type, and deletions will appear in this style type.
35	35	Additions: Whenever a new statutory provision is being enacted (or a new constitutional
36	36	provision adopted), the text of the new provision will appear in this style type. Also, the
37	37	word NEW will appear in that style type in the introductory clause of each SECTION that adds
38	38	a new provision to the Indiana Code or the Indiana Constitution.
39	39	Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
40	40	between statutes enacted by the 2022 Regular Session of the General Assembly.
41	41	SENATE BILL No. 261
42	42	A BILL FOR AN ACT to amend the Indiana Code concerning local
43	43	government.
44	44	Be it enacted by the General Assembly of the State of Indiana:
45	45	1 SECTION 1. IC 36-7-22.1 IS ADDED TO THE INDIANA CODE
46	46	2 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
47	47	3 JULY 1, 2023]:
48	48	4 Chapter 22.1. Community Infrastructure Improvement
49	49	5 Districts
50	50	6 Sec. 1. (a) This chapter applies to all units except townships.
51	51	7 (b) This chapter does not authorize a unit to establish a
52	52	8 community infrastructure improvement district that overlaps with
53	53	9 an economic improvement district established under IC 36-7-22.
54	54	10 Sec. 2. As used in this chapter, "assessment" means a charge
55	55	11 determined under section 14(a) of this chapter by applying the
56	56	12 percentage of benefit apportioned to a parcel within a community
57	57	13 infrastructure improvement district to the cost associated with
58	58	14 economic development projects giving rise to such benefits. Costs
59	59	15 subject to assessment for these purposes include all costs of the
60	60	16 economic improvement projects as well as financing and
61	61	17 administrative costs. In the case of bonds or notes issued pursuant
62	62	2023 IN 261—LS 7322/DI 120 2
63	63	1 to section 26 of this chapter, financing costs shall include, without
64	64	2 limitation, principal and interest, related reserve funds, cost of
65	65	3 insurance, and costs associated with ancillary financial
66	66	4 arrangements with respect to the bonds or notes.
67	67	5 Sec. 3. As used in this chapter, "board" refers to a community
68	68	6 infrastructure improvement board established under section 13 of
69	69	7 this chapter.
70	70	8 Sec. 4. As used in this chapter, "economic improvement project"
71	71	9 means the following:
72	72	10 (1) Planning or managing development or improvement
73	73	11 activities.
74	74	12 (2) Designing, landscaping, beautifying, constructing, or
75	75	13 maintaining public areas, public improvements, or public
76	76	14 ways (including designing, constructing, or maintaining
77	77	15 lighting, infrastructure, utility facilities, improvements, and
78	78	16 equipment, water facilities, improvements, and equipment,
79	79	17 sewage facilities, improvements, and equipment, streets, or
80	80	18 sidewalks for a public area or public way).
81	81	19 (3) Promoting commercial activity or public events.
82	82	20 (4) Supporting business recruitment and development.
83	83	21 (5) Providing security for public areas.
84	84	22 (6) Acquiring, constructing, or maintaining parking facilities.
85	85	23 (7) Constructing, rehabilitating, or repairing residential
86	86	24 property, including improvements related to the habitability
87	87	25 of the residential property.
88	88	26 (8) Acquiring, constructing, rehabilitating, or repairing
89	89	27 redevelopment projects, economic development facilities
90	90	28 described in IC 36-7-11.9-3, pollution control facilities
91	91	29 described in IC 36-7-11.9-9, or other local improvements.
92	92	30 (9) Constructing, rehabilitating, or repairing industrial or
93	93	31 commercial property associated with a qualified
94	94	32 redevelopment site (as defined in IC 6-3.1-34-6).
95	95	33 Sec. 5. As used in this chapter, "projected assessed value"
96	96	34 means:
97	97	35 (1) with respect to the community infrastructure
98	98	36 improvement district, an assessed value of the property within
99	99	37 the community infrastructure improvement district, plus the
100	100	38 as-built projected assessed value of the economic development
101	101	39 project to be constructed in the community infrastructure
102	102	40 improvement district as determined pursuant to a third party
103	103	41 evaluation accepted by the legislative body; and
104	104	42 (2) with respect to an individual parcel, the as-built (or
105	105	2023 IN 261—LS 7322/DI 120 3
106	106	1 as-improved, as appropriate) projected assessed value of the
107	107	2 parcel as determined pursuant to a third party evaluation
108	108	3 accepted by the legislative body;
109	109	4 including in both cases the assessed value of a property subject to
110	110	5 a voluntary assessment agreement as set forth in section 10(e) of
111	111	6 this chapter.
112	112	7 Sec. 6. As used in this chapter, "rate and method apportionment
113	113	8 report" means a report relating to a developer's planned economic
114	114	9 development of the subject parcels, which must set forth at least
115	115	10 the following:
116	116	11 (1) A list of parcels consistent with the parcels identified in the
117	117	12 petition for the establishment of the community infrastructure
118	118	13 improvement district under section 7 of this chapter.
119	119	14 (2) A statement of:
120	120	15 (A) the proposed assessment formula under section 7(b)(5)
121	121	16 of this chapter;
122	122	17 (B) the apportionment of benefits under section 8(a) of this
123	123	18 chapter; and
124	124	19 (C) zones or other classifications, if any, relating to the
125	125	20 formula under clause (A) or the apportionment under
126	126	21 clause (B).
127	127	22 (3) The proposed total assessment per parcel, including:
128	128	23 (A) the lump sum payment amount if the assessment is
129	129	24 payable as a lump sum;
130	130	25 (B) the method for converting a lump sum assessment to
131	131	26 annual installments, if applicable; and
132	132	27 (C) a schedule of annual installments and an
133	133	28 accompanying amortization schedule of the assessment, if
134	134	29 any.
135	135	30 (4) A statement of the basis and methodology for reassessment
136	136	31 in the case of a parcel division or consolidation of the assessed
137	137	32 property, status of development or the completion of
138	138	33 improvements associated with the assessed property or
139	139	34 changes in zoning classification of the property, and any
140	140	35 resulting assessment changes.
141	141	36 (5) The proposed maximum number of years during which the
142	142	37 assessment may be paid in annual installments.
143	143	38 (6) The proposed method for establishing the assessment for
144	144	39 the initial year and each year thereafter.
145	145	40 Sec. 7. (a) A person that intends to file a petition for the
146	146	41 establishment of a community infrastructure improvement district
147	147	42 under this section must first provide written notice to the clerk (as
148	148	2023 IN 261—LS 7322/DI 120 4
149	149	1 defined in IC 36-1-2) in the case of a municipality, or the county
150	150	2 auditor, in the case of a county, of the person's intent before
151	151	3 initiating the petition process.
152	152	4 (b) A petition for the establishment of a community
153	153	5 infrastructure improvement district may be filed with the clerk of
154	154	6 the municipality or the county auditor not later than one hundred
155	155	7 twenty (120) days after the date on which the notice of intent for
156	156	8 the petition is filed with the clerk of the municipality or the county
157	157	9 auditor under subsection (a). The petition must include the
158	158	10 following information:
159	159	11 (1) The boundaries of the proposed district, including the
160	160	12 boundaries of any zones to be established under section 8(b)
161	161	13 of this chapter.
162	162	14 (2) The name and address of each parcel and owner of land
163	163	15 within the proposed district and a description of the existing
164	164	16 land use and zoning classification of each parcel.
165	165	17 (3) A detailed description of the economic improvement
166	166	18 projects to be carried out within the proposed district, the
167	167	19 estimated cost of these projects, and the benefits to accrue to
168	168	20 the property owners within the district.
169	169	21 (4) A plan for the application of assessment revenue to the
170	170	22 cost of the economic improvement projects within the district.
171	171	23 (5) A proposed formula for determining the percentage of the
172	172	24 total benefit to be received by each parcel of real property
173	173	25 within the district, in the manner provided by section 8 of this
174	174	26 chapter.
175	175	27 (6) The number of years in which assessments will be levied.
176	176	28 (7) A proposed list of members for the board.
177	177	29 (c) The petition shall be accompanied by a rate and method
178	178	30 apportionment report.
179	179	31 (d) The clerk of the municipality or the county auditor shall
180	180	32 retain the paper copy of a petition filed under this section for not
181	181	33 less than ninety (90) days from the date the petition is filed with the
182	182	34 clerk of the municipality or the county auditor.
183	183	35 Sec. 8. (a) The benefits accruing to parcels of real property
184	184	36 within a community infrastructure improvement district may be
185	185	37 apportioned among those parcels on any basis reasonably
186	186	38 representative of the diffusion of benefits from the economic
187	187	39 improvement project, including the following:
188	188	40 (1) Proximity of the parcel to the project.
189	189	41 (2) Accessibility of the parcel to the project.
190	190	42 (3) True cash value of the parcel.
191	191	2023 IN 261—LS 7322/DI 120 5
192	192	1 (4) True cash value of any improvement on the parcel.
193	193	2 (5) Age of any improvement on the parcel.
194	194	3 (6) Land use class of the parcel.
195	195	4 (7) Equivalent units, including, in the case of an apartment
196	196	5 building, the number of units in the building.
197	197	6 (8) Parcel square footage.
198	198	7 (9) Parcel front footage.
199	199	8 (10) Gross floor area.
200	200	9 (11) Benefit availability.
201	201	10 (12) Impervious surface area.
202	202	11 (13) Other similar factors.
203	203	12 The apportionment of benefits under this subsection may be
204	204	13 adjusted by zone or land use as provided in subsections (b) and (c).
205	205	14 (b) If the benefit of the economic development project varies
206	206	15 from one (1) area to another within the community infrastructure
207	207	16 improvement district, up to three (3) zones may be established
208	208	17 within the district to delineate the approximate difference in
209	209	18 beneficial impact, and benefits may be apportioned accordingly.
210	210	19 (c) In order to encourage the retention or development of
211	211	20 various land uses within the district, assessments may be adjusted
212	212	21 according to the zoning classification of the property.
213	213	22 Sec. 9. (a) After receipt of a petition under section 7 of this
214	214	23 chapter, the clerk of the municipality or the county auditor shall,
215	215	24 in the manner provided by IC 5-3-1, publish notice of a hearing on
216	216	25 the proposed community infrastructure improvement district. The
217	217	26 clerk of the municipality or the county auditor shall mail a copy of
218	218	27 the notice to each owner of real property within the proposed
219	219	28 community infrastructure improvement district. The notice must
220	220	29 include the boundaries of the proposed district, a description of the
221	221	30 proposed projects, the proposed formula for determining the
222	222	31 percentage of the total benefit to be received by each parcel of
223	223	32 property, and the hearing date. The date of the hearing may not be
224	224	33 more than sixty (60) days after the date on which the notice is
225	225	34 mailed.
226	226	35 (b) At the public hearing under subsection (a), the legislative
227	227	36 body shall hear all owners of real property in the proposed district
228	228	37 (who appear and request to be heard) upon the questions of:
229	229	38 (1) the sufficiency of the notice;
230	230	39 (2) whether the proposed economic improvement projects are
231	231	40 of public utility and benefit;
232	232	41 (3) whether the formula to be used for the assessment of
233	233	42 special benefits is appropriate; and
234	234	2023 IN 261—LS 7322/DI 120 6
235	235	1 (4) whether the district contains all, or more or less than all,
236	236	2 of the property specially benefited by the proposed project.
237	237	3 Sec. 10. (a) After conducting a hearing on the proposed
238	238	4 community infrastructure improvement district, the legislative
239	239	5 body may adopt an ordinance establishing the community
240	240	6 infrastructure improvement district if it determines that:
241	241	7 (1) the petition meets the requirements of this section and
242	242	8 sections 7 and 8 of this chapter;
243	243	9 (2) the economic improvement projects to be undertaken in
244	244	10 the district will provide special benefits to property owners in
245	245	11 the district and will be of public utility and benefit;
246	246	12 (3) the benefits provided by the project will be new benefits
247	247	13 that do not replace benefits existing before the establishment
248	248	14 of the district;
249	249	15 (4) the formula to be used for the assessment of benefits is
250	250	16 appropriate;
251	251	17 (5) except as provided in subdivision (6), aggregate
252	252	18 assessments under this chapter do not exceed thirty percent
253	253	19 (30%) of the projected assessed value of property within the
254	254	20 district; and
255	255	21 (6) in the case of a community infrastructure improvement
256	256	22 district that is established for single family residences, the
257	257	23 aggregate assessments under this chapter do not exceed ten
258	258	24 percent (10%) of the projected assessed value per single
259	259	25 family residence within the district.
260	260	26 (b) The legislative body may adopt the ordinance only if it
261	261	27 determines that the petition has been signed by one hundred
262	262	28 percent (100%) of the owners of real property subject to
263	263	29 assessment within the proposed district.
264	264	30 (c) Unless an owner of property has entered into a voluntary
265	265	31 assessment agreement associated with the economic improvement
266	266	32 project, the signature of a person shall not be considered in
267	267	33 determining whether the requirement under subsection (b) is met
268	268	34 if the person's property:
269	269	35 (1) is:
270	270	36 (A) owned by a nonprofit entity and is exempt from
271	271	37 property taxation under IC 6-1.1-10-16;
272	272	38 (B) owned by this state or a state agency or leased to a
273	273	39 state agency and is exempt from property taxation under
274	274	40 IC 6-1.1-10 or any other law; or
275	275	41 (C) owned by a political subdivision of this state and is
276	276	42 exempt from property taxation under IC 6-1.1-10 or any
277	277	2023 IN 261—LS 7322/DI 120 7
278	278	1 other law; or
279	279	2 (2) would be exempt from assessments under the ordinance.
280	280	3 (d) In addition, unless an owner of property has entered into a
281	281	4 voluntary assessment agreement, neither the parcel of real
282	282	5 property nor the assessed value of any property may be considered
283	283	6 in determining the total parcels of real property or the total
284	284	7 assessed value of property in the proposed district for purposes of
285	285	8 determining whether the requirement under subsection (b) is met
286	286	9 if the property:
287	287	10 (1) is:
288	288	11 (A) owned by a nonprofit entity and is exempt from
289	289	12 property taxation under IC 6-1.1-10-16;
290	290	13 (B) owned by this state or a state agency or leased to a
291	291	14 state agency and is exempt from property taxation under
292	292	15 IC 6-1.1-10 or any other law; or
293	293	16 (C) owned by a political subdivision of this state and is
294	294	17 exempt from property taxation under IC 6-1.1-10 or any
295	295	18 other law; or
296	296	19 (2) would be exempt from assessment under the ordinance.
297	297	20 (e) The assessed value of a property subject to a voluntary
298	298	21 assessment agreement is the most recent of valuations from either
299	299	22 the county assessor or a third party evaluation accepted by the
300	300	23 legislative body.
301	301	24 Sec. 11. (a) An ordinance adopted under section 10 of this
302	302	25 chapter may be repealed or amended only after notice of the
303	303	26 proposed repeal or amendment is published and mailed in the
304	304	27 manner provided by section 9 of this chapter. However, in no event
305	305	28 shall any ordinance adopted under this chapter be repealed or
306	306	29 amended if there is any outstanding debt payable from
307	307	30 assessments.
308	308	31 (b) Notwithstanding subsection (a), an ordinance adopted under
309	309	32 section 10 of this chapter may be amended to add additional,
310	310	33 contiguous parcels to which benefits of economic improvement
311	311	34 projects accrue at the request of the owner or owners of such
312	312	35 parcels. If an ordinance is amended under this subsection, the rate
313	313	36 and method of apportionment report shall be amended to reflect
314	314	37 the revised list of parcels and related assessments, and notice must
315	315	38 be provided under section 14(b) of this chapter.
316	316	39 Sec. 12. An ordinance adopted under section 10 of this chapter
317	317	40 may provide that businesses established within the district after the
318	318	41 creation of the district are exempt from special assessments for a
319	319	42 period not to exceed one (1) year.
320	320	2023 IN 261—LS 7322/DI 120 8
321	321	1 Sec. 13. An ordinance adopted under section 10 of this chapter
322	322	2 must establish a community infrastructure improvement board to
323	323	3 be appointed by the legislative body. The board must have at least
324	324	4 three (3) members, and a majority of the board members must own
325	325	5 real property within the district. However, if there is only one (1)
326	326	6 property owner within a district, the legislative body shall appoint
327	327	7 one (1) member to the community infrastructure improvement
328	328	8 board who owns real property within the district and not more
329	329	9 than two (2) other members who are not required to own real
330	330	10 property within the district.
331	331	11 Sec. 14. (a) The following apply:
332	332	12 (1) The board shall use the formula approved by the
333	333	13 legislative body under section 10(a)(4) of this chapter to
334	334	14 determine the percentage of benefit to be received by each
335	335	15 parcel of real property within the community infrastructure
336	336	16 improvement district. The board shall apply the percentage
337	337	17 determined for each parcel to the total amount that is to be
338	338	18 defrayed by special assessment and determine the special
339	339	19 assessment for each parcel.
340	340	20 (2) In the event of a reassessment as provided in section 6(4)
341	341	21 of this chapter, the next assessment installment will include an
342	342	22 additional amount owed, if any, equal to the difference
343	343	23 between the amount originally calculated in subdivision (1)
344	344	24 and the amount calculated pursuant to subdivision (1) using
345	345	25 the reassessment methodology described in the rate and
346	346	26 method of apportionment report.
347	347	27 (b) Promptly after determining the proposed assessment for
348	348	28 each parcel, the board shall mail notice to each owner of property
349	349	29 to be assessed. The notice must:
350	350	30 (1) describe any potential proposed special assessment and
351	351	31 estimates of related annual installments thereof, including any
352	352	32 method by which the assessments or installments may change
353	353	33 depending on factors as set forth in the rate and method of
354	354	34 apportionment report;
355	355	35 (2) state that the rate and method of apportionment report
356	356	36 and the proposed special assessment on each parcel of real
357	357	37 property in the community infrastructure improvement
358	358	38 district is on file and can be seen in the board's office;
359	359	39 (3) state the time and place where written remonstrances
360	360	40 against the special assessment may be filed;
361	361	41 (4) set forth the time and place where the board will hear any
362	362	42 owner of assessed real property who has filed a remonstrance
363	363	2023 IN 261—LS 7322/DI 120 9
364	364	1 before the hearing date; and
365	365	2 (5) state that the board, after hearing evidence, may decrease,
366	366	3 or leave unchanged, the special assessment on any parcel.
367	367	4 (c) The notices must be deposited in the mail twenty (20) days
368	368	5 before the hearing date. The notices to the owners must be
369	369	6 addressed as the names and addresses appear on the tax duplicates
370	370	7 and the records of the county auditor.
371	371	8 (d) At the time fixed in the notice, the board shall hear any
372	372	9 owner of assessed real property who has filed a written
373	373	10 remonstrance before the date of the hearing. The hearing may be
374	374	11 continued from time to time as long as is necessary to hear the
375	375	12 owners.
376	376	13 (e) The board shall render its decision by either confirming or
377	377	14 decreasing each special assessment by setting opposite each name,
378	378	15 parcel, and proposed assessment, the amount of the assessment as
379	379	16 determined by the board. However, if the total of the special
380	380	17 assessments exceeds the amount needed, the board shall make a
381	381	18 prorated reduction in each special assessment.
382	382	19 (f) Except as provided in section 15 of this chapter, the signing
383	383	20 of the special assessment schedule by a majority of the members of
384	384	21 the board and the delivery of the schedule to the county auditor
385	385	22 constitute a final and conclusive determination of the benefits that
386	386	23 are assessed.
387	387	24 (g) Each special assessment is a lien on the real property that is
388	388	25 assessed and is subordinate to and subject to all other liens and
389	389	26 encumbrances then existing or thereafter created.
390	390	27 (h) The board shall certify to the county auditor the schedule of
391	391	28 special assessments of benefits. For purposes of providing
392	392	29 substantiation of the deductibility of a special assessment for
393	393	30 federal adjusted gross income tax purposes under Section 164 of
394	394	31 the Internal Revenue Code, the board shall, to the extent
395	395	32 practicable, supplement the schedule of special assessments
396	396	33 provided to the county auditor with a statement that identifies the
397	397	34 part of each special assessment that is allocable to interest,
398	398	35 maintenance, and repair charges. If the board provides the county
399	399	36 auditor with the statement, the county auditor shall show, on the
400	400	37 tax statement, the part of the special assessment that is for interest
401	401	38 and maintenance and repair items separately from the remainder
402	402	39 of the special assessment.
403	403	40 (i) An assessment or reassessment, interest, the expense of
404	404	41 collection, and reasonable attorney's fees, if incurred, is:
405	405	42 (1) a lien that is effective from the date of the ordinance or
406	406	2023 IN 261—LS 7322/DI 120 10
407	407	1 order levying the assessment until the assessment is paid;
408	408	2 (2) a lien that is subject to and subordinate to:
409	409	3 (A) all liens and encumbrances existing at the time the
410	410	4 assessment lien becomes effective; and
411	411	5 (B) any later extension or amendment of the liens and
412	412	6 encumbrances existing at the time the assessment lien
413	413	7 became effective;
414	414	8 (3) a lien that runs with the land and that portion of an
415	415	9 assessment payment that has not yet come due is not
416	416	10 eliminated by transfer of the parcel to a tax exempt owner;
417	417	11 and
418	418	12 (4) an assessment lien that may be enforced by the governing
419	419	13 body in the same manner that mortgages are foreclosed.
420	420	14 (j) Delinquent installments of the assessment shall incur interest,
421	421	15 penalties, and attorney's fees in the same manner as delinquent ad
422	422	16 valorem taxes.
423	423	17 (k) The owner of assessed property, including those by way of
424	424	18 voluntary assessment, may pay at any time all or any part of the
425	425	19 assessment, with interest that has accrued on the assessment, on
426	426	20 any lot or parcel.
427	427	21 Sec. 15. (a) Any owner of real property in a community
428	428	22 infrastructure improvement district may file an action contesting
429	429	23 the validity of:
430	430	24 (1) the ordinance adopted under section 10 of this chapter; or
431	431	25 (2) the assessment schedule adopted under section 14 of this
432	432	26 chapter.
433	433	27 (b) An action under this section must be filed:
434	434	28 (1) in the circuit or superior court of the county in which the
435	435	29 community infrastructure improvement district is located;
436	436	30 and
437	437	31 (2) within thirty (30) days after adoption of either the
438	438	32 ordinance or assessment schedule, respectively.
439	439	33 Sec. 16. Within thirty (30) days after the county auditor receives
440	440	34 the certification of final scheduled assessments for the completion
441	441	35 of the economic improvement project, the auditor shall deliver a
442	442	36 copy of the certificate to the county treasurer. Each year, the
443	443	37 board, which may work through a third party administrator, shall
444	444	38 assist the county treasurer in order to:
445	445	39 (1) prepare an annual assessment roll, which shall reflect
446	446	40 which parcels, if any, have fully paid any applicable
447	447	41 assessment and therefore no longer owe an assessment
448	448	42 installment;
449	449	2023 IN 261—LS 7322/DI 120 11
450	450	1 (2) designate which parcels are assessed, and in what
451	451	2 amounts, going forward;
452	452	3 (3) establish annual assessment installments consistent with
453	453	4 the rate and method apportionment report; and
454	454	5 (4) calculate and add to the annual assessment installments
455	455	6 due any penalties, interest, fees, or payments owed under
456	456	7 section 14(j) of this chapter, and other amounts due.
457	457	8 Each year, the treasurer shall add the full annual assessment
458	458	9 installment due in that year to the tax statements of the person
459	459	10 owning the property affected by the assessment, designating it in
460	460	11 a manner distinct from general taxes.
461	461	12 Sec. 17. Assessments collected under this chapter shall be paid
462	462	13 to the board.
463	463	14 Sec. 18. (a) The board shall establish a community
464	464	15 infrastructure improvement fund and shall deposit in this fund all
465	465	16 assessments received under this chapter and any other amounts
466	466	17 received by the board.
467	467	18 (b) Money in the community infrastructure improvement fund
468	468	19 may be used only for the purposes specified in the ordinance
469	469	20 establishing the community infrastructure improvement district.
470	470	21 Any money earned from investment of money in the fund becomes
471	471	22 a part of the fund.
472	472	23 Sec. 19. (a) Before November 1 of each year, the board shall
473	473	24 prepare and submit to the fiscal body a budget for the following
474	474	25 calendar year governing the board's projected expenditures from
475	475	26 the community infrastructure improvement fund. Such budget
476	476	27 must include amounts to pay debt service on any bonds supported
477	477	28 by assessments and assessment installments until such bonds are
478	478	29 paid in full. The fiscal body may approve, modify, or reject the
479	479	30 proposed budget.
480	480	31 (b) The board may make an expenditure from the community
481	481	32 infrastructure improvement fund only if the expenditure was
482	482	33 approved by the fiscal body in its review of the board's budget or
483	483	34 was otherwise approved by the fiscal body.
484	484	35 Sec. 20. The board must comply with IC 36-1-12 when
485	485	36 contracting for public works.
486	486	37 Sec. 21. The board may enter into lease or contractual
487	487	38 agreements, or both, with governmental, not-for-profit, or other
488	488	39 private entities for the purpose of carrying out economic
489	489	40 improvement projects.
490	490	41 Sec. 22. If the ordinance that established a community
491	491	42 infrastructure improvement district is repealed, the assets and
492	492	2023 IN 261—LS 7322/DI 120 12
493	493	1 liabilities of the community infrastructure improvement district
494	494	2 shall be disposed of in the manner determined by the unit.
495	495	3 However, liabilities incurred by the community infrastructure
496	496	4 improvement district are not an obligation of the unit and are
497	497	5 payable only from the special assessments and other revenues of
498	498	6 the district.
499	499	7 Sec. 23. The board shall submit an annual report to the
500	500	8 legislative body and the fiscal body before February 15 of each
501	501	9 year. The report must summarize the board's activities and
502	502	10 expenditures during the preceding calendar year.
503	503	11 Sec. 24. The board may:
504	504	12 (1) exercise any of the powers of a unit under IC 36-7-12-18 or
505	505	13 IC 36-7-12-18.5; or
506	506	14 (2) issue revenue bonds under section 26 of this chapter;
507	507	15 to finance an economic improvement project.
508	508	16 Sec. 25. Upon acceptance or rejection of a proposed community
509	509	17 infrastructure improvement district following a petition under this
510	510	18 chapter, the resulting district (or the person that files the petition,
511	511	19 if the proposed district is rejected) shall, at the request of the unit,
512	512	20 reimburse the unit for all or part of the reasonable expenses
513	513	21 incurred by the unit to comply with this chapter. The legislative
514	514	22 body of the unit may choose not to collect all or part of the
515	515	23 reasonable expenses incurred to comply with this chapter.
516	516	24 Sec. 26. (a) In accordance with section 24 of this chapter, the
517	517	25 board may issue bonds or notes payable from assessments assessed
518	518	26 under this chapter to finance economic improvement projects. The
519	519	27 bonds or notes may be publicly offered or privately placed in the
520	520	28 manner determined by the board. Such assessments are not ad
521	521	29 valorem property taxes and any bonds or notes payable from the
522	522	30 assessment revenue are not general obligations of the unit that
523	523	31 established the community infrastructure improvement district.
524	524	32 (b) The board may enter into ancillary financial agreements
525	525	33 relating to and in furtherance of its issuance of bonds or notes
526	526	34 under this chapter, including agreements with the unit that
527	527	35 established the district.
528	528	36 (c) Bonds or notes issued under this chapter shall include
529	529	37 provisions for redemptions from property owners who choose to
530	530	38 make one (1) time lump sum assessment prepayments on the
531	531	39 unamortized portion of any assessment applicable to their
532	532	40 property.
533	533	41 (d) Bonds or notes issued under this chapter are subject to the
534	534	42 following limitations:
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536	536	1 (1) The bonds or notes may be issued for a period not to
537	537	2 exceed thirty-five (35) years.
538	538	3 (2) The average life of the bonds or notes may not exceed one
539	539	4 hundred twenty percent (120%) of the average economic life
540	540	5 of the improvements for which the bonds or notes are issued.
541	541	6 Sec. 27. This chapter expires July 1, 2028.
542	542	2023 IN 261—LS 7322/DI 120