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 6293 NOTE PREPARED: Feb 27, 2024
BILL NUMBER: HB 1199 BILL AMENDED: Feb 27, 2024
SUBJECT: Economic Enhancement District.
FIRST AUTHOR: Rep. McGuire BILL STATUS: 2
nd
Reading - 2
nd
House
FIRST SPONSOR: Sen. Baldwin
FUNDS AFFECTED: GENERAL IMPACT: Local
DEDICATED
FEDERAL
Summary of Legislation: (Amended) This bill contains the following provisions:
•Requires the legislative body to provide notice and conduct a public hearing before a proposed
economic enhancement district (EED) may be established.
•Amends the definition of "economic enhancement project".
•Amends the required contents of an ordinance to establish an EED.
•Increases the number of members of an economic enhancement board from eight to nine and amends
the composition of the board.
•Requires an EED to expire not later than 10 years from the date of the adoption of an ordinance.
•Repeals a provision that allows an EED to be extended.
•Requires that an ordinance establishing an EED 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 EED 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 Date: Upon passage.
Explanation of State Expenditures:
Explanation of State Revenues:
HB 1199 1 Explanation of Local Expenditures: (Revised) The City-County Council will have additional expense for
printing and postage under this bill. The clerk of the council will be required to mail a notice regarding the
proposed EED to each owner of real property within the proposed EED.
Explanation of Local Revenues: (Revised) This bill makes various changes to the EED permitted under
current law. The fiscal impact depends on whether the council creates the EED, the size and boundaries of
the EED, and the amount of the assessments placed on real property by the EED board, as compared to those
under current law.
The changes to the EED include the following:
The bill voids the ordinance already adopted that establishes the EED but permits the City-County
Council to adopt a revised ordinance by December 31, 2024.
The boundaries of the EED may extend beyond the mile square but may not exceed a two-mile square.
Each boundary must be equidistant from the center of the city. (Currently, the EED may not exceed the
boundaries of the mile square.)
Homesteads and multi-unit housing property will be exempt from the assessment, except that the owners
of such property may opt-in to include their property in the district assessment at a flat rate of $250 each.
In addition, the owners of property located outside of the EED boundaries may also opt-in to include
their property in the district assessment.
The total benefits assessment will be limited to $5.5 M annually.
The EED may not be renewed after its expiration.
The economic enhancement board must consist of nine members, including four members appointed by
the Governor and one mayoral appointee. (Currently, the board must consist of eight members. The bill
adds two additional members to be appointed by the Governor and reduces the mayor’s appointees by
one.)
Additional Information: Under current law, the City-County Council may create an EED within the
downtown mile square. If created, the EED will have an eight member board that will be able to place special
benefits assessments on taxable real property within the EED to pay for economic enhancement projects.
State Agencies Affected:
Local Agencies Affected: City of Indianapolis.
Information Sources:
Fiscal Analyst: Bob Sigalow, 317-232-9859.
HB 1199 2