Second Regular Session of the 123rd General Assembly (2024)
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HOUSE ENROLLED ACT No. 1199
AN ACT to amend the Indiana Code concerning local government.
Be it enacted by the General Assembly of the State of Indiana:
SECTION 1. 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.
(5) Funding facility operations for a low barrier shelter for
homeless individuals.
(6) Designing, landscaping, beautifying, or maintaining public
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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 36-7-40-3.5 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 3.5. (a) Before an economic enhancement
district may be established under this chapter, the clerk of the
city-county council shall, in the manner provided by IC 5-3-1,
publish notice of a hearing on the proposed economic enhancement
district. The clerk of the city-county council shall mail a copy of the
notice to each owner of real property within the proposed
economic enhancement district. The notice must include the
boundaries of the proposed district, a description of the proposed
economic enhancement projects, the proposed formula for
determining the percentage of the total benefit to be received by
each parcel of real property, and the hearing date. The date of the
hearing may not be more than sixty (60) days after the date on
which the notice is mailed.
(b) At the public hearing under subsection (a), the legislative
body shall hear all owners of real property in the proposed district
(who appear and request to be heard) upon the questions of:
(1) the sufficiency of the notice;
(2) whether the proposed economic enhancement projects are
of public utility and benefit;
(3) whether the formula to be used for the assessment of
special benefits is appropriate; and
(4) whether the district contains all, or more or less than all,
of the property specially benefitted by the proposed economic
enhancement projects.
SECTION 3. 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) After conducting a hearing under section 3.5
of this chapter, 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
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distance in length on all sides compared to the center of the
city, but may not exceed a two (2) mile square.
(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.
(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
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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 4. 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 One (1) member appointed by the mayor
of the city.
(3) Two (2) Four (4) members appointed by the governor. One
(1) of the members appointed under this subdivision must
represent the business community and own real property located
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 5. IC 36-7-40-9, AS AMENDED BY THE TECHNICAL
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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 6. 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 7. 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
with the provisions of this chapter as amended by HEA 1199-2024.
SECTION 8. An emergency is declared for this act.
HEA 1199 — Concur Speaker of the House of Representatives
President of the Senate
President Pro Tempore
Governor of the State of Indiana
Date: Time:
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