| 1 | + | *EH1199.2* |
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| 2 | + | Reprinted |
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| 3 | + | February 28, 2024 |
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| 4 | + | ENGROSSED |
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| 5 | + | HOUSE BILL No. 1199 |
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| 6 | + | _____ |
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| 7 | + | DIGEST OF HB 1199 (Updated February 27, 2024 3:36 pm - DI 120) |
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| 8 | + | Citations Affected: IC 36-7. |
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| 9 | + | Synopsis: Economic enhancement district. Requires the legislative |
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| 10 | + | body to provide notice and conduct a public hearing before a proposed |
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| 11 | + | economic enhancement district may be established. Amends the |
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| 12 | + | definition of "economic enhancement project". Amends the required |
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| 13 | + | contents of an ordinance to establish an economic enhancement |
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| 14 | + | district. Increases the number of members of an economic enhancement |
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| 15 | + | board from eight to nine and amends the composition of the board. |
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| 16 | + | Requires an economic enhancement district to expire not later than 10 |
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| 17 | + | (Continued next page) |
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| 18 | + | Effective: Upon passage. |
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| 19 | + | McGuire, Thompson, Speedy, |
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| 20 | + | Manning |
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| 21 | + | (SENATE SPONSORS — BALDWIN, GARTEN, FREEMAN, MESSMER) |
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| 22 | + | January 9, 2024, read first time and referred to Committee on Ways and Means. |
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| 23 | + | January 25, 2024, reported — Do Pass. |
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| 24 | + | January 29, 2024, read second time, ordered engrossed. |
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| 25 | + | January 30, 2024, engrossed. Read third time, passed. Yeas 64, nays 29. |
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| 26 | + | SENATE ACTION |
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| 27 | + | February 7, 2024, read first time and referred to Committee on Tax and Fiscal Policy. |
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| 28 | + | February 22, 2024, amended, reported favorably — Do Pass. Reassigned to Committee on |
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| 29 | + | Rules and Legislative Procedure pursuant to Rule 68(b). |
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| 30 | + | February 26, 2024, committee report adopted pursuant to Rule 66(b). |
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| 31 | + | February 27, 2024, read second time, amended, ordered engrossed. |
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| 32 | + | EH 1199—LS 6293/DI 125 Digest Continued |
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| 33 | + | years from the date of the adoption of an ordinance. Repeals a |
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| 34 | + | provision that allows an economic enhancement district to be extended. |
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| 35 | + | Requires that an ordinance establishing an economic enhancement |
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| 36 | + | district must be adopted on or before December 31, 2024. Provides that |
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| 37 | + | if the legislative body of a city has adopted an ordinance to establish an |
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| 38 | + | economic enhancement district before the effective date of this bill, |
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| 39 | + | that ordinance shall be void, but may be revised and reenacted by the |
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| 40 | + | legislative body by the adoption of a new ordinance, which must |
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| 41 | + | comply with the provisions added in the bill. Makes a technical |
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| 42 | + | correction. |
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| 43 | + | EH 1199—LS 6293/DI 125EH 1199—LS 6293/DI 125 Reprinted |
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| 44 | + | February 28, 2024 |
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14 | | - | SECTION 1. IC 36-7-40-3, AS ADDED BY P.L.201-2023, |
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| 60 | + | 1 SECTION 1. IC 36-7-40-3, AS ADDED BY P.L.201-2023, |
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| 61 | + | 2 SECTION 279, IS AMENDED TO READ AS FOLLOWS |
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| 62 | + | 3 [EFFECTIVE UPON PASSAGE]: Sec. 3. As used in this chapter, |
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| 63 | + | 4 "economic enhancement project" means the following: |
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| 64 | + | 5 (1) Providing security for public areas, including installing and |
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| 65 | + | 6 maintaining exterior cameras directly linked with the Indianapolis |
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| 66 | + | 7 metropolitan police department central control. |
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| 67 | + | 8 (2) Employing safety ambassadors to: |
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| 68 | + | 9 (A) deter aggressive panhandling and other nuisance behavior; |
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| 69 | + | 10 (B) assist with directions and information; |
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| 70 | + | 11 (C) facilitate open communications with police to report |
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| 71 | + | 12 ongoing issues; |
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| 72 | + | 13 (D) provide safety escort services; and |
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| 73 | + | 14 (E) maintain a network of communication throughout the |
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| 74 | + | 15 downtown area by engaging with private and public security |
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| 75 | + | 16 companies. |
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| 76 | + | 17 (3) Cleaning and maintaining sidewalks, including picking up |
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| 77 | + | EH 1199—LS 6293/DI 125 2 |
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| 78 | + | 1 litter, removing graffiti, and power washing. |
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| 79 | + | 2 (4) Conducting extensive outreach to unsheltered homeless |
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| 80 | + | 3 individuals. |
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| 81 | + | 4 (5) Funding facility operations for a low barrier shelter for |
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| 82 | + | 5 homeless individuals. |
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| 83 | + | 6 (6) Designing, landscaping, beautifying, or maintaining public |
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| 84 | + | 7 areas. |
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| 85 | + | 8 (7) Activating and promoting public events. |
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| 86 | + | 9 (8) Creating innovative approaches to attracting new businesses. |
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| 87 | + | 10 (9) (7) Supporting business development. |
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| 88 | + | 11 (10) Planning improvement activities. |
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| 89 | + | 12 SECTION 2. IC 36-7-40-3.5 IS ADDED TO THE INDIANA CODE |
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| 90 | + | 13 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE |
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| 91 | + | 14 UPON PASSAGE]: Sec. 3.5. (a) Before an economic enhancement |
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| 92 | + | 15 district may be established under this chapter, the clerk of the |
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| 93 | + | 16 city-county council shall, in the manner provided by IC 5-3-1, |
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| 94 | + | 17 publish notice of a hearing on the proposed economic enhancement |
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| 95 | + | 18 district. The clerk of the city-county council shall mail a copy of the |
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| 96 | + | 19 notice to each owner of real property within the proposed |
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| 97 | + | 20 economic enhancement district. The notice must include the |
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| 98 | + | 21 boundaries of the proposed district, a description of the proposed |
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| 99 | + | 22 economic enhancement projects, the proposed formula for |
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| 100 | + | 23 determining the percentage of the total benefit to be received by |
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| 101 | + | 24 each parcel of real property, and the hearing date. The date of the |
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| 102 | + | 25 hearing may not be more than sixty (60) days after the date on |
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| 103 | + | 26 which the notice is mailed. |
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| 104 | + | 27 (b) At the public hearing under subsection (a), the legislative |
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| 105 | + | 28 body shall hear all owners of real property in the proposed district |
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| 106 | + | 29 (who appear and request to be heard) upon the questions of: |
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| 107 | + | 30 (1) the sufficiency of the notice; |
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| 108 | + | 31 (2) whether the proposed economic enhancement projects are |
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| 109 | + | 32 of public utility and benefit; |
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| 110 | + | 33 (3) whether the formula to be used for the assessment of |
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| 111 | + | 34 special benefits is appropriate; and |
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| 112 | + | 35 (4) whether the district contains all, or more or less than all, |
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| 113 | + | 36 of the property specially benefitted by the proposed economic |
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| 114 | + | 37 enhancement projects. |
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| 115 | + | 38 SECTION 3. IC 36-7-40-4, AS AMENDED BY THE TECHNICAL |
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| 116 | + | 39 CORRECTIONS BILL OF THE 2024 GENERAL ASSEMBLY, IS |
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| 117 | + | 40 AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON |
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| 118 | + | 41 PASSAGE]: Sec. 4. (a) After conducting a hearing under section 3.5 |
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| 119 | + | 42 of this chapter, the legislative body of a city may adopt an ordinance |
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| 120 | + | EH 1199—LS 6293/DI 125 3 |
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| 121 | + | 1 on or before December 31, 2024, establishing a special assessment |
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| 122 | + | 2 district known as the economic enhancement district. The adopting |
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| 123 | + | 3 ordinance must contain the following: |
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| 124 | + | 4 (1) The boundaries of the proposed economic enhancement |
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| 125 | + | 5 district, which may not exceed the boundaries of the Mile Square |
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| 126 | + | 6 area of the city. However, the boundary must be the same |
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| 127 | + | 7 distance in length on all sides compared to the center of the |
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| 128 | + | 8 city, but may not exceed a two (2) mile square. |
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| 129 | + | 9 (2) A finding that the proposed economic enhancement projects |
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| 130 | + | 10 will provide special benefits to all property owners of the |
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| 131 | + | 11 economic enhancement district. |
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| 132 | + | 12 (3) A finding that excludes the following types of properties |
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| 133 | + | 13 from the assessment of benefits: |
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| 134 | + | 14 (A) Any property that receives a homestead standard |
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| 135 | + | 15 deduction under IC 6-1.1-12-37. |
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| 136 | + | 16 (B) Any property that is used for multi-unit residential |
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| 137 | + | 17 housing. |
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| 138 | + | 18 However, notwithstanding the exclusion provisions, an owner |
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| 139 | + | 19 of property described in clause (A) or (B) and the owner of |
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| 140 | + | 20 any property located outside the economic enhancement |
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| 141 | + | 21 district may voluntarily opt-in to include their property in the |
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| 142 | + | 22 economic enhancement district assessment of benefits by |
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| 143 | + | 23 notifying the county auditor in writing. If a property that is |
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| 144 | + | 24 opted into the economic enhancement district assessment of |
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| 145 | + | 25 benefits is subsequently sold, the new owner of the property |
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| 146 | + | 26 shall have the opportunity to determine whether or not they |
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| 147 | + | 27 will opt-in to include the property in the economic |
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| 148 | + | 28 enhancement district assessment of benefits. A determination |
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| 149 | + | 29 to opt-in to the economic enhancement district assessment of |
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| 150 | + | 30 benefits is binding until a property is sold. |
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| 151 | + | 31 (3) (4) The formula to be used for the assessment of benefits, as |
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| 152 | + | 32 provided in section 6 of this chapter; and which shall be as |
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| 153 | + | 33 follows: |
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| 154 | + | 34 (A) The annual special benefits assessment shall be |
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| 155 | + | 35 calculated in a manner that will generate an amount not to |
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| 156 | + | 36 exceed five million five hundred thousand dollars |
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| 157 | + | 37 ($5,500,000). |
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| 158 | + | 38 (B) For each taxable property in the district, the special |
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| 159 | + | 39 benefits assessment shall be calculated as follows: |
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| 160 | + | 40 (i) Residential properties shall be assessed a flat fee of |
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| 161 | + | 41 two hundred fifty dollars ($250) each. |
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| 162 | + | 42 (ii) All other nonresidential taxable property shall be |
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| 163 | + | EH 1199—LS 6293/DI 125 4 |
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| 164 | + | 1 assessed at a rate equal to the total budget amount minus |
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| 165 | + | 2 the total amount raised from residential properties |
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| 166 | + | 3 divided by the total assessed value of all the |
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| 167 | + | 4 nonresidential taxable property in the district. This |
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| 168 | + | 5 fraction shall be considered the economic enhancement |
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| 169 | + | 6 district assessment rate. The economic enhancement |
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| 170 | + | 7 district assessment rate shall be multiplied by the |
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| 171 | + | 8 assessed value of any nonresidential taxable property to |
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| 172 | + | 9 determine that property's assessment. |
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| 173 | + | 10 (4) (5) An expiration date of the economic enhancement district, |
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| 174 | + | 11 which subject to subsection (b), may not be later than ten (10) |
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| 175 | + | 12 years from the date of the adoption of the ordinance and may not |
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| 176 | + | 13 be renewed. The adopting ordinance must establish an economic |
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| 177 | + | 14 enhancement district board. |
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| 178 | + | 15 (b) Notwithstanding subsection (a), the termination of the downtown |
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| 179 | + | 16 recovery district may be extended for a period of ten (10) additional |
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| 180 | + | 17 years if the legislative body adopts an ordinance and the general |
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| 181 | + | 18 assembly enacts legislation to extend the life of the economic |
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| 182 | + | 19 enhancement district. |
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| 183 | + | 20 SECTION 4. IC 36-7-40-5, AS ADDED BY P.L.201-2023, |
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| 184 | + | 21 SECTION 279, IS AMENDED TO READ AS FOLLOWS |
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| 185 | + | 22 [EFFECTIVE UPON PASSAGE]: Sec. 5. (a) An ordinance adopted |
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| 186 | + | 23 under section 4 of this chapter must establish an economic |
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| 187 | + | 24 enhancement board consisting of eight (8) nine (9) members to be |
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| 188 | + | 25 appointed as follows: |
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| 189 | + | 26 (1) Two (2) members appointed by the legislative body of the city. |
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| 190 | + | 27 (2) Two (2) members One (1) member appointed by the mayor |
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| 191 | + | 28 of the city. |
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| 192 | + | 29 (3) Two (2) Four (4) members appointed by the governor. One |
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| 193 | + | 30 (1) of the members appointed under this subdivision must |
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| 194 | + | 31 represent the business community and own real property located |
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| 195 | + | 32 within the economic enhancement district. |
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| 196 | + | 33 (4) One (1) member of the state senate appointed by the president |
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| 197 | + | 34 pro tempore. |
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| 198 | + | 35 (5) One (1) member of the house of representatives appointed by |
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| 199 | + | 36 the speaker. |
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| 200 | + | 37 A majority of the board members must own real property within the |
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| 201 | + | 38 economic enhancement district. Each board member shall serve a term |
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| 202 | + | 39 of one (1) year from the first day of January after the board member's |
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| 203 | + | 40 appointment and until the board member's successor is appointed and |
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| 204 | + | 41 qualified. |
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| 205 | + | 42 (b) A proposal before the board must receive at least five (5) six (6) |
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| 206 | + | EH 1199—LS 6293/DI 125 5 |
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| 207 | + | 1 votes to authorize action by the board. |
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| 208 | + | 2 (c) Downtown Indy, Inc., or its successor organization, shall provide |
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| 209 | + | 3 staff support to the economic enhancement board. |
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| 210 | + | 4 (d) The members appointed under subsection (a)(4) and (a)(5) may |
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| 211 | + | 5 not receive compensation for service on the board. |
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| 212 | + | 6 SECTION 5. IC 36-7-40-9, AS AMENDED BY THE TECHNICAL |
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| 213 | + | 7 CORRECTIONS BILL OF THE 2024 GENERAL ASSEMBLY, IS |
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| 214 | + | 8 AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON |
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| 215 | + | 9 PASSAGE]: Sec. 9. The board may enter into lease or contractual |
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| 216 | + | 10 agreements, or both, with governmental, not-for-profit, or other private |
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| 217 | + | 11 entities for the purpose of carrying out recovery economic |
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| 218 | + | 12 enhancement projects. The term of any lease or contractual |
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| 219 | + | 13 agreement may not exceed the expiration date of the economic |
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| 220 | + | 14 enhancement district ordinance under section 4 of this chapter. |
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| 221 | + | 15 SECTION 6. IC 36-7-40-12, AS ADDED BY P.L.201-2023, |
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| 222 | + | 16 SECTION 279, IS AMENDED TO READ AS FOLLOWS |
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| 223 | + | 17 [EFFECTIVE UPON PASSAGE]: Sec. 12. Subject to section 13 of this |
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| 224 | + | 18 chapter, after approval of the city fiscal body, the board may issue |
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| 225 | + | 19 revenue bonds, whose term may not exceed the expiration date of |
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| 226 | + | 20 the economic enhancement district ordinance under section 4 of |
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| 227 | + | 21 this chapter, payable from special benefits assessment revenues or |
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| 228 | + | 22 other revenues of the economic enhancement district to finance an |
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| 229 | + | 23 economic enhancement project. |
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| 230 | + | 24 SECTION 7. IC 36-7-40-14 IS ADDED TO THE INDIANA CODE |
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| 231 | + | 25 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE |
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| 232 | + | 26 UPON PASSAGE]: Sec. 14. If the legislative body of a city has |
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| 233 | + | 27 adopted an ordinance to establish an economic enhancement |
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| 234 | + | 28 district under this chapter before the effective date of HEA |
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| 235 | + | 29 1199-2024, that ordinance shall be void, but may be revised and |
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| 236 | + | 30 reenacted by the legislative body of the city by the adoption of a |
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| 237 | + | 31 new ordinance under section 4 of this chapter, which must comply |
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| 238 | + | 32 with the provisions of this chapter as amended by HEA 1199-2024. |
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| 239 | + | 33 SECTION 8. An emergency is declared for this act. |
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| 240 | + | EH 1199—LS 6293/DI 125 6 |
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| 241 | + | COMMITTEE REPORT |
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| 242 | + | Mr. Speaker: Your Committee on Ways and Means, to which was |
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| 243 | + | referred House Bill 1199, has had the same under consideration and |
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| 244 | + | begs leave to report the same back to the House with the |
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| 245 | + | recommendation that said bill do pass. |
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| 246 | + | (Reference is to HB 1199 as introduced.) |
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| 247 | + | THOMPSON |
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| 248 | + | Committee Vote: Yeas 15, Nays 9 |
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| 249 | + | _____ |
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| 250 | + | COMMITTEE REPORT |
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| 251 | + | Madam President: The Senate Committee on Tax and Fiscal Policy, |
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| 252 | + | to which was referred House Bill No. 1199, has had the same under |
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| 253 | + | consideration and begs leave to report the same back to the Senate with |
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| 254 | + | the recommendation that said bill be AMENDED as follows: |
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| 255 | + | Delete the title and insert the following: |
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| 256 | + | A BILL FOR AN ACT to amend the Indiana Code concerning local |
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| 257 | + | government. |
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| 258 | + | Page 1, line 1, delete "IC 36-7-40 IS REPEALED [EFFECTIVE |
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| 259 | + | UPON" and insert "IC 36-7-40-3, AS ADDED BY P.L.201-2023, |
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192 | | - | with the provisions of this chapter as amended by HEA 1199-2024. |
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193 | | - | SECTION 8. An emergency is declared for this act. |
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194 | | - | HEA 1199 — Concur Speaker of the House of Representatives |
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195 | | - | President of the Senate |
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196 | | - | President Pro Tempore |
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197 | | - | Governor of the State of Indiana |
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198 | | - | Date: Time: |
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199 | | - | HEA 1199 — Concur |
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| 408 | + | EH 1199—LS 6293/DI 125 10 |
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| 409 | + | with the provisions of this chapter as amended by HEA |
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| 410 | + | 1199-2024.". |
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| 411 | + | Page 1, delete lines 2 through 7. |
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| 412 | + | Renumber all SECTIONS consecutively. |
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| 413 | + | and when so amended that said bill do pass. |
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| 414 | + | (Reference is to HB 1199 as printed January 25, 2024.) |
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| 415 | + | HOLDMAN, Chairperson |
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| 416 | + | Committee Vote: Yeas 14, Nays 0. |
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| 417 | + | _____ |
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| 418 | + | REPORT OF THE PRESIDENT |
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| 419 | + | PRO TEMPORE |
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| 420 | + | Madam President: Pursuant to Senate Rule 68(b), I hereby report |
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| 421 | + | that, subsequent to the adoption of the Committee Report on February |
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| 422 | + | 22, 2024, House Bill 1199 was reassigned to the Committee on Rules |
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| 423 | + | and Legislative Procedure. |
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| 424 | + | BRAY |
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| 425 | + | _____ |
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| 426 | + | COMMITTEE REPORT |
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| 427 | + | Madam President: The Senate Committee on Rules and Legislative |
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| 428 | + | Procedure, to which was referred Senate House Bill 1199 pursuant to |
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| 429 | + | Senate Rule 66(b), has had the same under consideration and begs |
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| 430 | + | leave to report back to the Senate that Senate House Bill 1199 is |
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| 431 | + | approved as amended by the Committee on Tax and Fiscal Policy. |
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| 432 | + | BRAY, Chair |
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| 433 | + | EH 1199—LS 6293/DI 125 11 |
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| 434 | + | SENATE MOTION |
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| 435 | + | Madam President: I move that Engrossed House Bill 1199 be |
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| 436 | + | amended to read as follows: |
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| 437 | + | Page 2, between lines 11 and 12, begin a new paragraph and insert: |
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| 438 | + | "SECTION 2. IC 36-7-40-3.5 IS ADDED TO THE INDIANA |
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| 439 | + | CODE AS A NEW SECTION TO READ AS FOLLOWS |
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| 440 | + | [EFFECTIVE UPON PASSAGE]: Sec. 3.5. (a) Before an economic |
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| 441 | + | enhancement district may be established under this chapter, the |
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| 442 | + | clerk of the city-county council shall, in the manner provided by |
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| 443 | + | IC 5-3-1, publish notice of a hearing on the proposed economic |
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| 444 | + | enhancement district. The clerk of the city-county council shall |
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| 445 | + | mail a copy of the notice to each owner of real property within the |
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| 446 | + | proposed economic enhancement district. The notice must include |
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| 447 | + | the boundaries of the proposed district, a description of the |
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| 448 | + | proposed economic enhancement projects, the proposed formula |
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| 449 | + | for determining the percentage of the total benefit to be received |
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| 450 | + | by each parcel of real property, and the hearing date. The date of |
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| 451 | + | the hearing may not be more than sixty (60) days after the date on |
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| 452 | + | which the notice is mailed. |
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| 453 | + | (b) At the public hearing under subsection (a), the legislative |
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| 454 | + | body shall hear all owners of real property in the proposed district |
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| 455 | + | (who appear and request to be heard) upon the questions of: |
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| 456 | + | (1) the sufficiency of the notice; |
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| 457 | + | (2) whether the proposed economic enhancement projects are |
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| 458 | + | of public utility and benefit; |
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| 459 | + | (3) whether the formula to be used for the assessment of |
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| 460 | + | special benefits is appropriate; and |
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| 461 | + | (4) whether the district contains all, or more or less than all, |
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| 462 | + | of the property specially benefitted by the proposed economic |
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| 463 | + | enhancement projects.". |
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| 464 | + | Page 2, line 15, delete "The" and insert "After conducting a |
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| 465 | + | hearing under section 3.5 of this chapter, the". |
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| 466 | + | Page 2, line 23, delete "city." and insert "city, but may not exceed |
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| 467 | + | a two (2) mile square.". |
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| 468 | + | Page 3, line 42, strike "Two (2) members" and insert "One (1) |
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| 469 | + | member". |
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| 470 | + | Page 4, line 1, delete "Three (3)" and insert "Four (4)". |
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| 471 | + | Renumber all SECTIONS consecutively. |
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| 472 | + | (Reference is to EHB 1199 as printed February 23, 2024.) |
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| 473 | + | BALDWIN |
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| 474 | + | EH 1199—LS 6293/DI 125 |
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