Indiana 2024 Regular Session

Indiana House Bill HB1345 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2	Introduced Version
3	3	HOUSE BILL No. 1345
4	4	_____
5	5	DIGEST OF INTRODUCED BILL
6	6	Citations Affected: IC 36-7-41.
7	7	Synopsis: Tourism improvement districts. Provides that a person may
8	8	circulate a petition to create a tourism improvement district (district)
9	9	within the territory of a county, city, or town. Specifies the contents of
10	10	the tourism improvement district plan that must be filed with a petition
11	11	to establish a district. Excludes property that receives a homestead
12	12	standard deduction from inclusion within a district. Provides that
13	13	owners of real property or businesses located within a district may be
14	14	charged a special assessment to fund improvements and other district
15	15	activities. Provides that, after a hearing on a petition to establish a
16	16	district, a county, city, or town legislative body may adopt the
17	17	ordinance establishing the district only if it determines that the petition
18	18	has been signed by at least 50% of the owners of real property or
19	19	businesses within the district who will pay the special assessment.
20	20	Specifies the contents of the ordinance establishing a district and the
21	21	length of time for which a district may exist. Allows a district to issue
22	22	bonds. Requires the county, city, or town legislative body to contract
23	23	with a nonprofit district management association to administer and
24	24	implement the district's activities and improvements.
25	25	Effective: July 1, 2024.
26	26	Baird, Karickhoff
27	27	January 10, 2024, read first time and referred to Committee on Ways and Means.
28	28	2024 IN 1345—LS 6969/DI 129 Introduced
29	29	Second Regular Session of the 123rd General Assembly (2024)
30	30	PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
31	31	Constitution) is being amended, the text of the existing provision will appear in this style type,
32	32	additions will appear in this style type, and deletions will appear in this style type.
33	33	Additions: Whenever a new statutory provision is being enacted (or a new constitutional
34	34	provision adopted), the text of the new provision will appear in this style type. Also, the
35	35	word NEW will appear in that style type in the introductory clause of each SECTION that adds
36	36	a new provision to the Indiana Code or the Indiana Constitution.
37	37	Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
38	38	between statutes enacted by the 2023 Regular Session of the General Assembly.
39	39	HOUSE BILL No. 1345
40	40	A BILL FOR AN ACT to amend the Indiana Code concerning local
41	41	government.
42	42	Be it enacted by the General Assembly of the State of Indiana:
43	43	1 SECTION 1. IC 36-7-41 IS ADDED TO THE INDIANA CODE AS
44	44	2 A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY
45	45	3 1, 2024]:
46	46	4 Chapter 41. Tourism Improvement Districts
47	47	5 Sec. 1. This chapter applies to all units except townships.
48	48	6 Sec. 2. As used in this chapter, "activities" means any programs
49	49	7 or services that promote business activity or tourism activity and
50	50	8 are provided to confer specific benefits upon the real property or
51	51	9 businesses that are located in the tourism improvement district.
52	52	10 Sec. 3. As used in this chapter, "district" means a tourism
53	53	11 improvement district established by an ordinance adopted under
54	54	12 section 13 of this chapter.
55	55	13 Sec. 4. As used in this chapter, "district management
56	56	14 association" means a private nonprofit entity designated in the
57	57	15 district plan that enters into a contract with the legislative body of
58	58	16 a unit to administer and implement the district's activities and
59	59	17 improvements.
60	60	2024 IN 1345—LS 6969/DI 129 2
61	61	1 Sec. 5. As used in this chapter, "district plan" means a proposal
62	62	2 for a tourism improvement district that contains the information
63	63	3 described in section 9(c) of this chapter.
64	64	4 Sec. 6. As used in this chapter, "improvements" means the
65	65	5 acquisition, construction, installation, or maintenance of any
66	66	6 tangible property in the tourism improvement district with an
67	67	7 estimated useful life of five (5) years or more.
68	68	8 Sec. 7. As used in this chapter, "legislative body" has the
69	69	9 meaning set forth in IC 36-1-2-9.
70	70	10 Sec. 8. As used in this chapter, "owner" means:
71	71	11 (1) for a parcel of real property located within the district, the
72	72	12 person listed as the owner on the tax duplicate or special
73	73	13 assessment roll; or
74	74	14 (2) for a business located within the district, any person
75	75	15 recognized by the unit as the owner of the business.
76	76	16 Sec. 9. (a) A person that intends to file a petition for the
77	77	17 establishment of a tourism improvement district under this section
78	78	18 must first provide written notice to the clerk (as defined in
79	79	19 IC 36-1-2-4) in the case of a municipality, or the county auditor, in
80	80	20 the case of a county, of the person's intent before initiating the
81	81	21 petition process.
82	82	22 (b) A petition for the establishment of a tourism improvement
83	83	23 district may be filed with the clerk of the municipality or the
84	84	24 county auditor not later than one hundred twenty (120) days after
85	85	25 the date on which the notice of intent for the petition is filed with
86	86	26 the clerk of the municipality or the county auditor under
87	87	27 subsection (a). The petition shall include the name and legal status
88	88	28 of the filing party and the district plan.
89	89	29 (c) The district plan shall include at least the following:
90	90	30 (1) The name of the proposed district.
91	91	31 (2) Subject to section 9.5 of this chapter, a map of the
92	92	32 proposed district, including a description of the boundaries of
93	93	33 the district in a manner sufficient to identify the real property
94	94	34 or businesses included. Any real property that is exempt from
95	95	35 property taxation under IC 6-1.1-10 or another law may be
96	96	36 included within the district's boundaries but is not subject to
97	97	37 the special assessment.
98	98	38 (3) The proposed source or sources of financing, including:
99	99	39 (A) the proposed method and basis of levying the special
100	100	40 assessment in sufficient detail to allow each owner to
101	101	41 calculate the amount of the special assessment that may be
102	102	42 levied against the owner's business or real property; and
103	103	2024 IN 1345—LS 6969/DI 129 3
104	104	1 (B) whether the district may issue bonds to finance
105	105	2 improvements.
106	106	3 (4) A list of the businesses or real property to be assessed,
107	107	4 including the parcel number or key number for the property,
108	108	5 and a statement of the manner in which the expenses of a
109	109	6 district will be imposed upon a benefited business or property,
110	110	7 in proportion to the benefit received by the business or real
111	111	8 property, including costs for operation and maintenance.
112	112	9 (5) A classification of the types of property and businesses
113	113	10 within the proposed district for purposes of determining the
114	114	11 benefit to a property or business of the improvements and
115	115	12 activities provided by the district.
116	116	13 (6) A statement identifying the district management
117	117	14 association.
118	118	15 (7) Any other item or matter required to be incorporated in
119	119	16 the district plan by the unit's legislative body.
120	120	17 Sec. 9.5. Any property that receives a homestead standard
121	121	18 deduction under IC 6-1.1-12-37 may not be included within the
122	122	19 territory of a district.
123	123	20 Sec. 10. Subject to section 9.5 of this chapter, the territory of a
124	124	21 tourism improvement district:
125	125	22 (1) in the case of a municipality, may include only territory
126	126	23 within the municipality; or
127	127	24 (2) in the case of a county, may include only territory of the
128	128	25 county that is not within any municipality in the county.
129	129	26 Sec. 11. (a) A special assessment on real property or businesses
130	130	27 shall be levied on the basis of the estimated benefit to the real
131	131	28 property or business within the tourism improvement district. The
132	132	29 unit's legislative body may use the classification of the types of
133	133	30 property and businesses described in section 9(c)(5) of this chapter
134	134	31 in determining the benefit to a property or business provided by
135	135	32 the district.
136	136	33 (b) The special assessment may be levied on different types of
137	137	34 businesses or property located within the district and is not
138	138	35 required to be levied on the same basis or at the same rate.
139	139	36 Sec. 12. (a) After receipt of a petition under section 9 of this
140	140	37 chapter, the clerk of the municipality or the county auditor shall,
141	141	38 in the manner provided by IC 5-3-1, publish notice of a hearing on
142	142	39 the proposed tourism improvement district. The clerk of the
143	143	40 municipality or the county auditor shall mail a copy of the notice
144	144	41 to each owner within the proposed tourism improvement district.
145	145	42 The notice must include the boundaries of the proposed district, a
146	146	2024 IN 1345—LS 6969/DI 129 4
147	147	1 description of the proposed activities and improvements, the
148	148	2 proposed formula for determining the percentage of the total
149	149	3 benefit to be received by each parcel of real property, the method
150	150	4 of determining the benefit received by each business, and the
151	151	5 hearing date. The date of the hearing may not be more than sixty
152	152	6 (60) days after the date on which the notice is mailed.
153	153	7 (b) At the public hearing under subsection (a), the legislative
154	154	8 body shall hear all owners in the proposed district (who appear
155	155	9 and request to be heard) upon the questions of:
156	156	10 (1) the sufficiency of the notice;
157	157	11 (2) whether the proposed activities and improvements are of
158	158	12 public utility and benefit;
159	159	13 (3) whether the formula or method to be used for the
160	160	14 assessment of special benefits is appropriate; and
161	161	15 (4) whether the district contains all, or more or less than all,
162	162	16 of the property specially benefited by the activities and
163	163	17 improvements.
164	164	18 Sec. 13. (a) After conducting a hearing on the proposed tourism
165	165	19 improvement district, the legislative body may adopt an ordinance
166	166	20 establishing the tourism improvement district if it determines that:
167	167	21 (1) the petition meets the requirements of this section and
168	168	22 sections 9 through 11 of this chapter;
169	169	23 (2) the activities and improvements to be undertaken in the
170	170	24 district will provide special benefits to owners in the district
171	171	25 and will be of public utility and benefit;
172	172	26 (3) the benefits provided by the activities and improvements
173	173	27 will be new benefits that do not replace benefits existing
174	174	28 before the establishment of the district; and
175	175	29 (4) the formula or method to be used for the assessment of
176	176	30 benefits is appropriate.
177	177	31 (b) The legislative body may adopt the ordinance only if it
178	178	32 determines that the petition has been signed by at least fifty
179	179	33 percent (50%) of the owners within the proposed district who will
180	180	34 pay the assessments. The ordinance shall:
181	181	35 (1) incorporate the information set forth in the district plan;
182	182	36 (2) specify the time and manner in which assessments levied
183	183	37 under this chapter are to be collected; and
184	184	38 (3) include any other content that the legislative body
185	185	39 determines is reasonable as it relates to the operation of the
186	186	40 district.
187	187	41 (c) The adoption of an ordinance establishing a tourism
188	188	42 improvement district does not affect and may not be construed to
189	189	2024 IN 1345—LS 6969/DI 129 5
190	190	1 authorize any decrease in the level of publicly funded tourism
191	191	2 promotion services that existed before the district's establishment.
192	192	3 Sec. 14. (a) The unit's legislative body shall contract with a
193	193	4 district management association to administer and implement the
194	194	5 district's activities and improvements. The district management
195	195	6 association shall be designated in the district plan.
196	196	7 (b) The district management association may make
197	197	8 recommendations to the unit's legislative body with respect to any
198	198	9 matter involving or relating to the district.
199	199	10 Sec. 15. (a) The district may issue bonds for providing
200	200	11 improvements.
201	201	12 (b) Bonds issued under this chapter do not constitute an
202	202	13 indebtedness of the unit within the meaning of a constitutional or
203	203	14 statutory debt limitation.
204	204	15 Sec. 16. The initial term for a district shall be at least three (3)
205	205	16 years and not more than ten (10) years. However, in the case of a
206	206	17 district created for the purpose of issuing bonds, the initial term of
207	207	18 the district may not exceed the maximum maturity of those bonds.
208	208	19 Sec. 17. (a) A district may be renewed for not more than an
209	209	20 additional ten (10) year period. However, in the case of a district
210	210	21 created for the purpose of issuing bonds, the renewal may not
211	211	22 exceed the maximum maturity of those bonds.
212	212	23 (b) If a district is renewed, any remaining revenues derived
213	213	24 from the levy of a special assessment, or any revenues derived from
214	214	25 the sale of assets acquired with the revenues, shall be transferred
215	215	26 to the renewed district. The following apply to the transfer of any
216	216	27 remaining revenues of a renewed district:
217	217	28 (1) If the renewed district includes a parcel of real property
218	218	29 or a business not included in the prior district, the remaining
219	219	30 revenues shall be spent to benefit only the parcel or business
220	220	31 in the prior district.
221	221	32 (2) If the renewed district does not include a parcel of real
222	222	33 property or a business included in the prior district, the
223	223	34 remaining revenues attributable to the parcel shall be
224	224	35 refunded to the owners of the parcel or business.
225	225	36 (c) The boundaries, assessments, improvements, or activities of
226	226	37 a renewed district are not required to be the same as the original
227	227	38 or prior district.
228	228	39 Sec. 18. An ordinance adopted under section 13 of this chapter
229	229	40 may be amended or repealed if notice of the proposed amendment
230	230	41 or repeal is published and mailed in the manner provided by
231	231	42 section 12 of this chapter. However, if an amendment proposes to:
232	232	2024 IN 1345—LS 6969/DI 129 6
233	233	1 (1) levy a new or increased special assessment;
234	234	2 (2) change the district's boundaries; or
235	235	3 (3) issue a new bond;
236	236	4 the unit's legislative body shall require compliance with the
237	237	5 procedures set forth in sections 9 through 13 of this chapter before
238	238	6 amending the ordinance.
239	239	7 Sec. 19. (a) The district management association shall submit an
240	240	8 annual report to the legislative body and the fiscal body before
241	241	9 January 1 of each year.
242	242	10 (b) The report shall contain all of the following information:
243	243	11 (1) The activities and improvements to be provided for the
244	244	12 ensuing year and an estimate of the cost of providing the
245	245	13 activities and improvements for that year.
246	246	14 (2) The estimated amount of any surplus or deficit revenues
247	247	15 to be carried over from the prior year.
248	248	16 Sec. 20. If a tourism improvement district is repealed, the assets
249	249	17 and liabilities of the district shall be disposed of in the manner
250	250	18 determined by the unit. However, liabilities incurred by the
251	251	19 tourism improvement district are not an obligation of the unit and
252	252	20 are payable only from the special assessments and other revenues
253	253	21 of the district. Special assessments levied to pay the principal and
254	254	22 interest on any bonds issued under this chapter may not be reduced
255	255	23 or terminated if doing so would interfere with the timely
256	256	24 retirement of the debt.
257	257	2024 IN 1345—LS 6969/DI 129