*EH1199.1*
February 23, 2024
ENGROSSED
HOUSE BILL No. 1199
_____
DIGEST OF HB 1199 (Updated February 20, 2024 11:44 am - DI 120)
Citations Affected: IC 36-7.
Synopsis: Economic enhancement district. Amends the definition of
"economic enhancement project". Amends the required contents of an
ordinance to establish an economic enhancement district. Increases the
number of members of an economic enhancement board from eight to
nine. Requires an economic enhancement district to expire not later
than 10 years from the date of the adoption of an ordinance. Repeals a
provision that allows an economic enhancement district to be extended.
Requires that an ordinance establishing an economic enhancement
district must be adopted on or before December 31, 2024. Provides that
if the legislative body of a city has adopted an ordinance to establish an
economic enhancement district before the effective date of this bill,
that ordinance shall be void, but may be revised and reenacted by the
legislative body by the adoption of a new ordinance, which must
comply with the provisions added in the bill. Makes a technical
correction.
Effective: Upon passage.
McGuire, Thompson, Speedy,
Manning
(SENATE SPONSORS — BALDWIN, GARTEN, FREEMAN, MESSMER)
January 9, 2024, read first time and referred to Committee on Ways and Means.
January 25, 2024, reported — Do Pass.
January 29, 2024, read second time, ordered engrossed.
January 30, 2024, engrossed. Read third time, passed. Yeas 64, nays 29.
SENATE ACTION
February 7, 2024, read first time and referred to Committee on Tax and Fiscal Policy.
February 22, 2024, amended, reported favorably — Do Pass. Reassigned to Committee on
Rules and Legislative Procedure pursuant to Rule 68(b).
EH 1199—LS 6293/DI 125 February 23, 2024
Second Regular Session of the 123rd General Assembly (2024)
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 2023 Regular Session of the General Assembly.
ENGROSSED
HOUSE BILL No. 1199
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 36-7-40-3, AS ADDED BY P.L.201-2023,
2 SECTION 279, IS AMENDED TO READ AS FOLLOWS
3 [EFFECTIVE UPON PASSAGE]: Sec. 3. As used in this chapter,
4 "economic enhancement project" means the following:
5 (1) Providing security for public areas, including installing and
6 maintaining exterior cameras directly linked with the Indianapolis
7 metropolitan police department central control.
8 (2) Employing safety ambassadors to:
9 (A) deter aggressive panhandling and other nuisance behavior;
10 (B) assist with directions and information;
11 (C) facilitate open communications with police to report
12 ongoing issues;
13 (D) provide safety escort services; and
14 (E) maintain a network of communication throughout the
15 downtown area by engaging with private and public security
16 companies.
17 (3) Cleaning and maintaining sidewalks, including picking up
EH 1199—LS 6293/DI 125 2
1 litter, removing graffiti, and power washing.
2 (4) Conducting extensive outreach to unsheltered homeless
3 individuals.
4 (5) Funding facility operations for a low barrier shelter for
5 homeless individuals.
6 (6) Designing, landscaping, beautifying, or maintaining public
7 areas.
8 (7) Activating and promoting public events.
9 (8) Creating innovative approaches to attracting new businesses.
10 (9) (7) Supporting business development.
11 (10) Planning improvement activities.
12 SECTION 2. IC 36-7-40-4, AS AMENDED BY THE TECHNICAL
13 CORRECTIONS BILL OF THE 2024 GENERAL ASSEMBLY, IS
14 AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON
15 PASSAGE]: Sec. 4. (a) The legislative body of a city may adopt an
16 ordinance on or before December 31, 2024, establishing a special
17 assessment district known as the economic enhancement district. The
18 adopting ordinance must contain the following:
19 (1) The boundaries of the proposed economic enhancement
20 district, which may not exceed the boundaries of the Mile Square
21 area of the city. However, the boundary must be the same
22 distance in length on all sides compared to the center of the
23 city.
24 (2) A finding that the proposed economic enhancement projects
25 will provide special benefits to all property owners of the
26 economic enhancement district.
27 (3) A finding that excludes the following types of properties
28 from the assessment of benefits:
29 (A) Any property that receives a homestead standard
30 deduction under IC 6-1.1-12-37.
31 (B) Any property that is used for multi-unit residential
32 housing.
33 However, notwithstanding the exclusion provisions, an owner
34 of property described in clause (A) or (B) and the owner of
35 any property located outside the economic enhancement
36 district may voluntarily opt-in to include their property in the
37 economic enhancement district assessment of benefits by
38 notifying the county auditor in writing. If a property that is
39 opted into the economic enhancement district assessment of
40 benefits is subsequently sold, the new owner of the property
41 shall have the opportunity to determine whether or not they
42 will opt-in to include the property in the economic
EH 1199—LS 6293/DI 125 3
1 enhancement district assessment of benefits. A determination
2 to opt-in to the economic enhancement district assessment of
3 benefits is binding until a property is sold.
4 (3) (4) The formula to be used for the assessment of benefits, as
5 provided in section 6 of this chapter; and which shall be as
6 follows:
7 (A) The annual special benefits assessment shall be
8 calculated in a manner that will generate an amount not to
9 exceed five million five hundred thousand dollars
10 ($5,500,000).
11 (B) For each taxable property in the district, the special
12 benefits assessment shall be calculated as follows:
13 (i) Residential properties shall be assessed a flat fee of
14 two hundred fifty dollars ($250) each.
15 (ii) All other nonresidential taxable property shall be
16 assessed at a rate equal to the total budget amount minus
17 the total amount raised from residential properties
18 divided by the total assessed value of all the
19 nonresidential taxable property in the district. This
20 fraction shall be considered the economic enhancement
21 district assessment rate. The economic enhancement
22 district assessment rate shall be multiplied by the
23 assessed value of any nonresidential taxable property to
24 determine that property's assessment.
25 (4) (5) An expiration date of the economic enhancement district,
26 which subject to subsection (b), may not be later than ten (10)
27 years from the date of the adoption of the ordinance and may not
28 be renewed. The adopting ordinance must establish an economic
29 enhancement district board.
30 (b) Notwithstanding subsection (a), the termination of the downtown
31 recovery district may be extended for a period of ten (10) additional
32 years if the legislative body adopts an ordinance and the general
33 assembly enacts legislation to extend the life of the economic
34 enhancement district.
35 SECTION 3. IC 36-7-40-5, AS ADDED BY P.L.201-2023,
36 SECTION 279, IS AMENDED TO READ AS FOLLOWS
37 [EFFECTIVE UPON PASSAGE]: Sec. 5. (a) An ordinance adopted
38 under section 4 of this chapter must establish an economic
39 enhancement board consisting of eight (8) nine (9) members to be
40 appointed as follows:
41 (1) Two (2) members appointed by the legislative body of the city.
42 (2) Two (2) members appointed by the mayor of the city.
EH 1199—LS 6293/DI 125 4
1 (3) Two (2) Three (3) members appointed by the governor. One
2 (1) of the members appointed under this subdivision must
3 represent the business community and own real property located
4 within the economic enhancement district.
5 (4) One (1) member of the state senate appointed by the president
6 pro tempore.
7 (5) One (1) member of the house of representatives appointed by
8 the speaker.
9 A majority of the board members must own real property within the
10 economic enhancement district. Each board member shall serve a term
11 of one (1) year from the first day of January after the board member's
12 appointment and until the board member's successor is appointed and
13 qualified.
14 (b) A proposal before the board must receive at least five (5) six (6)
15 votes to authorize action by the board.
16 (c) Downtown Indy, Inc., or its successor organization, shall provide
17 staff support to the economic enhancement board.
18 (d) The members appointed under subsection (a)(4) and (a)(5) may
19 not receive compensation for service on the board.
20 SECTION 4. IC 36-7-40-9, AS AMENDED BY THE TECHNICAL
21 CORRECTIONS BILL OF THE 2024 GENERAL ASSEMBLY, IS
22 AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON
23 PASSAGE]: Sec. 9. The board may enter into lease or contractual
24 agreements, or both, with governmental, not-for-profit, or other private
25 entities for the purpose of carrying out recovery economic
26 enhancement projects. The term of any lease or contractual
27 agreement may not exceed the expiration date of the economic
28 enhancement district ordinance under section 4 of this chapter.
29 SECTION 5. IC 36-7-40-12, AS ADDED BY P.L.201-2023,
30 SECTION 279, IS AMENDED TO READ AS FOLLOWS
31 [EFFECTIVE UPON PASSAGE]: Sec. 12. Subject to section 13 of this
32 chapter, after approval of the city fiscal body, the board may issue
33 revenue bonds, whose term may not exceed the expiration date of
34 the economic enhancement district ordinance under section 4 of
35 this chapter, payable from special benefits assessment revenues or
36 other revenues of the economic enhancement district to finance an
37 economic enhancement project.
38 SECTION 6. IC 36-7-40-14 IS ADDED TO THE INDIANA CODE
39 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
40 UPON PASSAGE]: Sec. 14. If the legislative body of a city has
41 adopted an ordinance to establish an economic enhancement
42 district under this chapter before the effective date of HEA
EH 1199—LS 6293/DI 125 5
1 1199-2024, that ordinance shall be void, but may be revised and
2 reenacted by the legislative body of the city by the adoption of a
3 new ordinance under section 4 of this chapter, which must comply
4 with the provisions of this chapter as amended by HEA 1199-2024.
5 SECTION 7. An emergency is declared for this act.
EH 1199—LS 6293/DI 125 6
COMMITTEE REPORT
Mr. Speaker: Your Committee on Ways and Means, to which was
referred House Bill 1199, has had the same under consideration and
begs leave to report the same back to the House with the
recommendation that said bill do pass.
(Reference is to HB 1199 as introduced.)
THOMPSON
Committee Vote: Yeas 15, Nays 9
_____
COMMITTEE REPORT
Madam President: The Senate Committee on Tax and Fiscal Policy,
to which was referred House Bill No. 1199, has had the same under
consideration and begs leave to report the same back to the Senate with
the recommendation that said bill be AMENDED as follows:
Delete the title and insert the following:
A BILL FOR AN ACT to amend the Indiana Code concerning local
government.
Page 1, line 1, delete "IC 36-7-40 IS REPEALED [EFFECTIVE
UPON" and insert "IC 36-7-40-3, AS ADDED BY P.L.201-2023,
SECTION 279, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 3. As used in this chapter,
"economic enhancement project" means the following:
(1) Providing security for public areas, including installing and
maintaining exterior cameras directly linked with the Indianapolis
metropolitan police department central control.
(2) Employing safety ambassadors to:
(A) deter aggressive panhandling and other nuisance behavior;
(B) assist with directions and information;
(C) facilitate open communications with police to report
ongoing issues;
(D) provide safety escort services; and
(E) maintain a network of communication throughout the
downtown area by engaging with private and public security
companies.
(3) Cleaning and maintaining sidewalks, including picking up
litter, removing graffiti, and power washing.
(4) Conducting extensive outreach to unsheltered homeless
individuals.
EH 1199—LS 6293/DI 125 7
(5) Funding facility operations for a low barrier shelter for
homeless individuals.
(6) Designing, landscaping, beautifying, or maintaining public
areas.
(7) Activating and promoting public events.
(8) Creating innovative approaches to attracting new businesses.
(9) (7) Supporting business development.
(10) Planning improvement activities.
SECTION 2. IC 36-7-40-4, AS AMENDED BY THE TECHNICAL
CORRECTIONS BILL OF THE 2024 GENERAL ASSEMBLY, IS
AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON
PASSAGE]: Sec. 4. (a) The legislative body of a city may adopt an
ordinance on or before December 31, 2024, establishing a special
assessment district known as the economic enhancement district. The
adopting ordinance must contain the following:
(1) The boundaries of the proposed economic enhancement
district, which may not exceed the boundaries of the Mile Square
area of the city. However, the boundary must be the same
distance in length on all sides compared to the center of the
city.
(2) A finding that the proposed economic enhancement projects
will provide special benefits to all property owners of the
economic enhancement district.
(3) A finding that excludes the following types of properties
from the assessment of benefits:
(A) Any property that receives a homestead standard
deduction under IC 6-1.1-12-37.
(B) Any property that is used for multi-unit residential
housing.
However, notwithstanding the exclusion provisions, an owner
of property described in clause (A) or (B) and the owner of
any property located outside the economic enhancement
district may voluntarily opt-in to include their property in the
economic enhancement district assessment of benefits by
notifying the county auditor in writing. If a property that is
opted into the economic enhancement district assessment of
benefits is subsequently sold, the new owner of the property
shall have the opportunity to determine whether or not they
will opt-in to include the property in the economic
enhancement district assessment of benefits. A determination
to opt-in to the economic enhancement district assessment of
benefits is binding until a property is sold.
EH 1199—LS 6293/DI 125 8
(3) (4) The formula to be used for the assessment of benefits, as
provided in section 6 of this chapter; and which shall be as
follows:
(A) The annual special benefits assessment shall be
calculated in a manner that will generate an amount not to
exceed five million five hundred thousand dollars
($5,500,000).
(B) For each taxable property in the district, the special
benefits assessment shall be calculated as follows:
(i) Residential properties shall be assessed a flat fee of
two hundred fifty dollars ($250) each.
(ii) All other nonresidential taxable property shall be
assessed at a rate equal to the total budget amount minus
the total amount raised from residential properties
divided by the total assessed value of all the
nonresidential taxable property in the district. This
fraction shall be considered the economic enhancement
district assessment rate. The economic enhancement
district assessment rate shall be multiplied by the
assessed value of any nonresidential taxable property to
determine that property's assessment.
(4) (5) An expiration date of the economic enhancement district,
which subject to subsection (b), may not be later than ten (10)
years from the date of the adoption of the ordinance and may not
be renewed. The adopting ordinance must establish an economic
enhancement district board.
(b) Notwithstanding subsection (a), the termination of the downtown
recovery district may be extended for a period of ten (10) additional
years if the legislative body adopts an ordinance and the general
assembly enacts legislation to extend the life of the economic
enhancement district.
SECTION 3. IC 36-7-40-5, AS ADDED BY P.L.201-2023,
SECTION 279, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 5. (a) An ordinance adopted
under section 4 of this chapter must establish an economic
enhancement board consisting of eight (8) nine (9) members to be
appointed as follows:
(1) Two (2) members appointed by the legislative body of the city.
(2) Two (2) members appointed by the mayor of the city.
(3) Two (2) Three (3) members appointed by the governor. One
(1) of the members appointed under this subdivision must
represent the business community and own real property located
EH 1199—LS 6293/DI 125 9
within the economic enhancement district.
(4) One (1) member of the state senate appointed by the president
pro tempore.
(5) One (1) member of the house of representatives appointed by
the speaker.
A majority of the board members must own real property within the
economic enhancement district. Each board member shall serve a term
of one (1) year from the first day of January after the board member's
appointment and until the board member's successor is appointed and
qualified.
(b) A proposal before the board must receive at least five (5) six (6)
votes to authorize action by the board.
(c) Downtown Indy, Inc., or its successor organization, shall provide
staff support to the economic enhancement board.
(d) The members appointed under subsection (a)(4) and (a)(5) may
not receive compensation for service on the board.
SECTION 4. IC 36-7-40-9, AS AMENDED BY THE TECHNICAL
CORRECTIONS BILL OF THE 2024 GENERAL ASSEMBLY, IS
AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON
PASSAGE]: Sec. 9. The board may enter into lease or contractual
agreements, or both, with governmental, not-for-profit, or other private
entities for the purpose of carrying out recovery economic
enhancement projects. The term of any lease or contractual
agreement may not exceed the expiration date of the economic
enhancement district ordinance under section 4 of this chapter.
SECTION 5. IC 36-7-40-12, AS ADDED BY P.L.201-2023,
SECTION 279, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 12. Subject to section 13 of this
chapter, after approval of the city fiscal body, the board may issue
revenue bonds, whose term may not exceed the expiration date of
the economic enhancement district ordinance under section 4 of
this chapter, payable from special benefits assessment revenues or
other revenues of the economic enhancement district to finance an
economic enhancement project.
SECTION 6. IC 36-7-40-14 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 14. If the legislative body of a city has
adopted an ordinance to establish an economic enhancement
district under this chapter before the effective date of HEA
1199-2024, that ordinance shall be void, but may be revised and
reenacted by the legislative body of the city by the adoption of a
new ordinance under section 4 of this chapter, which must comply
EH 1199—LS 6293/DI 125 10
with the provisions of this chapter as amended by HEA
1199-2024.".
Page 1, delete lines 2 through 7.
Renumber all SECTIONS consecutively.
and when so amended that said bill do pass.
(Reference is to HB 1199 as printed January 25, 2024.)
HOLDMAN, Chairperson
Committee Vote: Yeas 14, Nays 0.
_____
REPORT OF THE PRESIDENT
PRO TEMPORE
Madam President: Pursuant to Senate Rule 68(b), I hereby report
that, subsequent to the adoption of the Committee Report on February
22, 2024, House Bill 1199 was reassigned to the Committee on Rules
and Legislative Procedure.
BRAY
EH 1199—LS 6293/DI 125