LEGISLATIVE SERVICES AGENCY OFFICE OF FISCAL AND MANAGEMENT ANALYSIS 200 W. Washington St., Suite 301 Indianapolis, IN 46204 (317) 233-0696 iga.in.gov FISCAL IMPACT STATEMENT LS 6610 NOTE PREPARED: Dec 27, 2023 BILL NUMBER: HB 1154 BILL AMENDED: SUBJECT: Prohibition on Taking of Designated Homestead. FIRST AUTHOR: Rep. Greene BILL STATUS: As Introduced FIRST SPONSOR: FUNDS AFFECTED:XGENERAL IMPACT: State & Local XDEDICATED FEDERAL Summary of Legislation: Hoosier Homestead Farm Program: The bill creates the Hoosier Homestead Farm Program administered by the Indiana State Department of Agriculture (ISDA) to: (1) commemorate as Hoosier Homestead Farms, those properties that have been owned by the same family for at least 100 years; and (2) maintain an electronic registry of Hoosier Homestead Farms. Indiana Land Resources Council Approval for Eminent Domain: With certain exceptions, the bill provides that if a public project involves condemnation of a Hoosier Homestead Farm, the Indiana Land Resources Council must approve condemnation of the farm before the condemnor may take steps to acquire any other property for the project. It provides that the council may only approve a condemnation if the council finds that: (1) there is no feasible and prudent alternative to using the Hoosier Homestead Farm for the project; and (2) condemnation of the Hoosier Homestead Farm would not have an unreasonably adverse effect upon the preservation and enhancement of agriculture within the county. Sales Disclosure Form: The bill requires a real estate sales disclosure form to: (1) indicate transfers of Hoosier Homestead Farms and the familial relationships (if any) between transferors and transferees; and (2) requires the local assessor to forward the forms to the ISDA for use in updating the Hoosier Homestead Farms Registry. Effective Date: July 1, 2024. Explanation of State Expenditures: Hoosier Homestead Farm Program: The bill would increase workload for the ISDA to administer the Hoosier Homestead Farm Program. The ISDA would need to create a registration application form, review documentation provided by applicants, maintain an electronic registry, HB 1154 1 and provide the owner a certificate and yard sign commemorating the farm as a Hoosier Homestead Farm. Registrations must be renewed biennially and updated any time the ownership of the farm changes (ownership must remain within the same family to continue to remain eligible for the registry). These requirements are within the agency’s routine administrative functions and should be able to be implemented with no additional appropriations, assuming near customary agency staffing and resource levels. Sales Disclosure Form: The Department of Local Government Finance would need to update the sales disclosure form to include certain information for the conveyance of any part of a Hoosier Homestead Farm. This is within the agency’s routine administrative functions. Indiana Land Resources Council Approval for Eminent Domain: If a petition is filed with the Indiana Land Resources Council regarding condemnation of a Hoosier Homestead Farm, the council must set a hearing date and send notice of the hearing to each property owner named by the condemnor in the petition. If the property is registered in good standing, the council must issue a written determination approving or disapproving condemnation of the Hoosier Homestead Farm and stating the basis for determination. Additional Information: Eligibility for the Hoosier Homestead Farms Registry requires that at least part of the property comprising the farm has been under the continuous ownership of the same family for at least 100 years (specifics given about who qualifies as being in the same family) and at least 20 acres of property currently used for agricultural purposes (or one acre that currently produces a gross of at least $1,000 of agricultural products a year) was owned by the first family. The ISDA may commemorate continuous familial ownership of at least 100, 150, or 200 years. Explanation of State Revenues: Hoosier Homestead Farm Program: The bill does not allow the ISDA to charge a registration or renewal fee for the Hoosier Homestead Farms Registry. Explanation of Local Expenditures: Eminent Domain: If an local unit with eminent domain authority intends a public project that would involve the condemnation of a Hoosier Homestead Farm, the unit would have additional workload and expenses prior to making any offer to purchase, or otherwise proceed with condemnation of, any property for use in the project. The unit would need to publish a notice of intent (with certain specified information), mail the notice of intent to and file a petition with the Indiana Land Resources Council, and send the notice of intent and a copy of the petition to each property listed in the notice. If a party petitions a Marion County superior court to review a determination by the council, court workload could increase. Sales Disclosure Form: The bill requires a local assessor to forward a sales disclosure form to the ISDA if the form indicates that the conveyance involves a parcel that is a Hoosier Homestead Farm. Explanation of Local Revenues: State Agencies Affected: Department of Local Government Finance; Indiana Land Resources Council; Indiana State Department of Agriculture; state agencies with eminent domain authority. Local Agencies Affected: County or township assessor; Marion County superior court; local units with eminent domain authority. Information Sources: State Form 46021 (R14/1-23) Sales Disclosure Form; HB 1154 2 https://www.in.gov/dlgf/assessments/sales-disclosure-form-information/; https://www.in.gov/isda/boards/indiana-land-resources-council/. Fiscal Analyst: Heather Puletz, 317-234-9484. HB 1154 3