*SB0061.1*
January 31, 2024
SENATE BILL No. 61
_____
DIGEST OF SB 61 (Updated January 30, 2024 11:27 am - DI 120)
Citations Affected: IC 36-7.
Synopsis: Tourism improvement districts. Provides that a person may
circulate a petition to create a tourism improvement district (district)
within the territory of a county, city, or town (local unit). Specifies the
contents of the tourism improvement district plan that must be filed
with a petition to establish a district. Provides that, after a hearing on
a petition to establish a district, the legislative body of a local unit may
adopt the ordinance establishing the district only if it determines that
the petition has been signed by at least: (1) 65% of the businesses
within the proposed district that will pay the assessments; and (2) the
owners of 65% of the total net assessed value of the real property
within the proposed district that will pay the assessments.
Provides that owners of real property or businesses located within a
district may be charged a special assessment to fund improvements and
other district activities. Excludes from inclusion within a district: (1)
property that receives a homestead standard deduction; (2) property
used for single family residential housing; and (3) property used for
multi-unit residential housing. Specifies the contents of the ordinance
establishing a district and the length of time for which a district may
exist. Allows a district to issue bonds. Requires the county, city, or
town legislative body to contract with a nonprofit district management
association to administer and implement the district's activities and
improvements. Requires a district management association to annually
engage an independent certified public accounting firm to conduct an
examination of the district's funds, accounts, and financial affairs and
submit the examination to the legislative body and the fiscal body.
Excludes Marion County from the provisions of the bill.
Effective: July 1, 2024.
Holdman, Randolph Lonnie M
January 8, 2024, read first time and referred to Committee on Tax and Fiscal Policy.
January 30, 2024, amended, reported favorably — Do Pass.
SB 61—LS 6426/DI 129 January 31, 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.
SENATE BILL No. 61
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 36-7-41 IS ADDED TO THE INDIANA CODE AS
2 A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY
3 1, 2024]:
4 Chapter 41. Tourism Improvement Districts
5 Sec. 1. (a) Except as provided in subsection (b), this chapter
6 applies to all units except townships.
7 (b) This chapter does not apply to Marion County.
8 Sec. 2. As used in this chapter, "activities" means any programs
9 or services that promote business activity or tourism activity and
10 are provided to confer specific benefits upon the real property or
11 businesses that are located in the tourism improvement district.
12 Sec. 3. As used in this chapter, "district" means a tourism
13 improvement district established by an ordinance adopted under
14 section 13 of this chapter.
15 Sec. 4. As used in this chapter, "district management
16 association" means a private nonprofit entity designated in the
17 district plan that enters into a contract with the legislative body of
SB 61—LS 6426/DI 129 2
1 a unit to administer and implement the district's activities and
2 improvements.
3 Sec. 5. As used in this chapter, "district plan" means a proposal
4 for a tourism improvement district that contains the information
5 described in section 9(c) of this chapter.
6 Sec. 6. As used in this chapter, "improvements" means the
7 acquisition, construction, installation, or maintenance of any
8 tangible property in the tourism improvement district with an
9 estimated useful life of five (5) years or more.
10 Sec. 7. As used in this chapter, "legislative body" has the
11 meaning set forth in IC 36-1-2-9.
12 Sec. 8. As used in this chapter, "owner" means:
13 (1) for a parcel of real property located within the district, the
14 person listed as the owner on the tax duplicate or special
15 assessment roll; or
16 (2) for a business located within the district, any person
17 recognized by the unit as the owner of the business.
18 Sec. 9. (a) A person that intends to file a petition for the
19 establishment of a tourism improvement district under this section
20 must first provide written notice to the clerk (as defined in
21 IC 36-1-2-4) in the case of a municipality, or the county auditor, in
22 the case of a county, of the person's intent before initiating the
23 petition process.
24 (b) A petition for the establishment of a tourism improvement
25 district may be filed with the clerk of the municipality or the
26 county auditor not later than one hundred twenty (120) days after
27 the date on which the notice of intent for the petition is filed with
28 the clerk of the municipality or the county auditor under
29 subsection (a). The petition shall include the name and legal status
30 of the filing party and the district plan.
31 (c) The district plan shall include at least the following:
32 (1) The name of the proposed district.
33 (2) Subject to section 9.5 of this chapter, a map of the
34 proposed district, including a description of the boundaries of
35 the district in a manner sufficient to identify the real property
36 or businesses included. Any real property that is exempt from
37 property taxation under IC 6-1.1-10 or another law may be
38 included within the district's boundaries but is not subject to
39 the special assessment.
40 (3) The proposed source or sources of financing, including:
41 (A) the proposed method and basis of levying the special
42 assessment in sufficient detail to allow each owner to
SB 61—LS 6426/DI 129 3
1 calculate the amount of the special assessment that may be
2 levied against the owner's business or real property; and
3 (B) whether the district may issue bonds to finance
4 improvements.
5 (4) A list of the businesses or real property to be assessed,
6 including the parcel number or key number for the property,
7 and a statement of the manner in which the expenses of a
8 district will be imposed upon a benefited business or property,
9 in proportion to the benefit received by the business or real
10 property, including costs for operation and maintenance.
11 (5) A classification of the types of property and businesses
12 within the proposed district for purposes of determining the
13 benefit to a property or business of the improvements and
14 activities provided by the district.
15 (6) A statement identifying the district management
16 association.
17 (7) Any other item or matter required to be incorporated in
18 the district plan by the unit's legislative body.
19 Sec. 9.5. The following property may not be included within the
20 territory of a district and the owners of such property shall not be
21 considered in determining the petition signature requirements
22 under section 13 of this chapter:
23 (1) Any property that receives a homestead standard
24 deduction under IC 6-1.1-12-37.
25 (2) Any property that is used for single family residential
26 housing.
27 (3) Any property that is used for multi-unit residential
28 housing.
29 In addition, the property described in this section shall not be
30 subject to a special assessment under this chapter.
31 Sec. 10. Subject to section 9.5 of this chapter, the territory of a
32 tourism improvement district:
33 (1) in the case of a municipality, may include only territory
34 within the municipality; or
35 (2) in the case of a county, may include only territory of the
36 county that is not within any municipality in the county.
37 Sec. 11. (a) A special assessment on real property or businesses
38 shall be levied on the basis of the estimated benefit to the real
39 property or business within the tourism improvement district. The
40 unit's legislative body may use the classification of the types of
41 property and businesses described in section 9(c)(5) of this chapter
42 in determining the benefit to a property or business provided by
SB 61—LS 6426/DI 129 4
1 the district.
2 (b) The special assessment may be levied on different types of
3 businesses or property located within the district and is not
4 required to be levied on the same basis or at the same rate.
5 Sec. 12. (a) After receipt of a petition under section 9 of this
6 chapter, the clerk of the municipality or the county auditor shall,
7 in the manner provided by IC 5-3-1, publish notice of a hearing on
8 the proposed tourism improvement district. The clerk of the
9 municipality or the county auditor shall mail a copy of the notice
10 to each owner within the proposed tourism improvement district.
11 The notice must include the boundaries of the proposed district, a
12 description of the proposed activities and improvements, the
13 proposed formula for determining the percentage of the total
14 benefit to be received by each parcel of real property, the method
15 of determining the benefit received by each business, and the
16 hearing date. The date of the hearing may not be more than sixty
17 (60) days after the date on which the notice is mailed.
18 (b) At the public hearing under subsection (a), the legislative
19 body shall hear all owners in the proposed district (who appear
20 and request to be heard) upon the questions of:
21 (1) the sufficiency of the notice;
22 (2) whether the proposed activities and improvements are of
23 public utility and benefit;
24 (3) whether the formula or method to be used for the
25 assessment of special benefits is appropriate; and
26 (4) whether the district contains all, or more or less than all,
27 of the property specially benefited by the activities and
28 improvements.
29 Sec. 13. (a) After conducting a hearing on the proposed tourism
30 improvement district, the legislative body may adopt an ordinance
31 establishing the tourism improvement district if it determines that:
32 (1) the petition meets the requirements of this section and
33 sections 9 through 11 of this chapter;
34 (2) the activities and improvements to be undertaken in the
35 district will provide special benefits to owners in the district
36 and will be of public utility and benefit;
37 (3) the benefits provided by the activities and improvements
38 will be new benefits that do not replace benefits existing
39 before the establishment of the district; and
40 (4) the formula or method to be used for the assessment of
41 benefits is appropriate.
42 (b) The legislative body may adopt the ordinance only if it
SB 61—LS 6426/DI 129 5
1 determines that the petition has been signed by at least:
2 (1) sixty-five percent (65%) of the businesses within the
3 proposed district that will pay the assessments; and
4 (2) the owners of sixty-five percent (65%) of the total net
5 assessed value of the real property within the proposed
6 district that will pay the assessments.
7 Both criteria set forth in subdivisions (1) and (2) must be met.
8 (c) The ordinance shall:
9 (1) incorporate the information set forth in the district plan;
10 (2) specify the time and manner in which assessments levied
11 under this chapter are to be collected; and
12 (3) include any other content that the legislative body
13 determines is reasonable as it relates to the operation of the
14 district.
15 (d) The adoption of an ordinance establishing a tourism
16 improvement district does not affect and may not be construed to
17 authorize any decrease in the level of publicly funded tourism
18 promotion services that existed before the district's establishment.
19 Sec. 14. (a) The unit's legislative body shall contract with a
20 district management association to administer and implement the
21 district's activities and improvements. The district management
22 association shall be designated in the district plan.
23 (b) The district management association may make
24 recommendations to the unit's legislative body with respect to any
25 matter involving or relating to the district.
26 Sec. 15. (a) The district may issue bonds for providing
27 improvements.
28 (b) Bonds issued under this chapter do not constitute an
29 indebtedness of the unit within the meaning of a constitutional or
30 statutory debt limitation.
31 Sec. 16. The initial term for a district shall be at least three (3)
32 years and not more than ten (10) years. However, in the case of a
33 district created for the purpose of issuing bonds, the initial term of
34 the district may not exceed the maximum maturity of those bonds,
35 provided that the amount of the bonds initially issued do not cause
36 the duration of the bonds to exceed ten (10) years.
37 Sec. 17. (a) A district may not be renewed. A district may be
38 reestablished only if all of the requirements and procedures for
39 establishing a district under this chapter are completed again prior
40 to or upon the expiration of the district under section 16 of this
41 chapter. A district may not be reestablished for more than an
42 additional ten (10) year period. However, in the case of a district
SB 61—LS 6426/DI 129 6
1 created for the purpose of issuing bonds, the reestablishment of the
2 district may not exceed the maximum maturity of those bonds,
3 provided that the amount of the bonds issued upon reestablishment
4 of the district do not cause the duration of the bonds to exceed ten
5 (10) years.
6 (b) If a district is reestablished, any remaining revenues derived
7 from the levy of a special assessment, or any revenues derived from
8 the sale of assets acquired with the revenues, shall be transferred
9 to the reestablished district. The following apply to the transfer of
10 any remaining revenues of a reestablished district:
11 (1) If the reestablished district includes a parcel of real
12 property or a business not included in the prior district, the
13 remaining revenues shall be spent to benefit only the parcel or
14 business in the prior district.
15 (2) If the reestablished district does not include a parcel of
16 real property or a business included in the prior district, the
17 remaining revenues attributable to the parcel shall be
18 refunded to the owners of the parcel or business.
19 (c) The boundaries, assessments, improvements, or activities of
20 a reestablished district are not required to be the same as the
21 original or prior district.
22 Sec. 18. An ordinance adopted under section 13 of this chapter
23 may be amended or repealed if notice of the proposed amendment
24 or repeal is published and mailed in the manner provided by
25 section 12 of this chapter. However, if an amendment proposes to:
26 (1) levy a new or increased special assessment;
27 (2) change the district's boundaries; or
28 (3) issue a new bond;
29 the unit's legislative body shall require compliance with the
30 procedures set forth in sections 9 through 13 of this chapter before
31 amending the ordinance.
32 Sec. 19. (a) The district management association shall annually
33 engage an independent certified public accounting firm to conduct
34 an examination of the tourism improvement district's funds,
35 accounts, and financial affairs.
36 (b) The district management association shall submit an annual
37 report and the examination required under subsection (a) to the
38 legislative body and the fiscal body before January 1 of each year.
39 (c) The report shall contain all of the following information:
40 (1) The activities and improvements to be provided for the
41 ensuing year and an estimate of the cost of providing the
42 activities and improvements for that year.
SB 61—LS 6426/DI 129 7
1 (2) The estimated amount of any surplus or deficit revenues
2 to be carried over from the prior year.
3 Sec. 20. If a tourism improvement district is repealed, the assets
4 and liabilities of the district shall be disposed of in the manner
5 determined by the unit. However, liabilities incurred by the
6 tourism improvement district are not an obligation of the unit and
7 are payable only from the special assessments and other revenues
8 of the district. Special assessments levied to pay the principal and
9 interest on any bonds issued under this chapter may not be reduced
10 or terminated if doing so would interfere with the timely
11 retirement of the debt.
SB 61—LS 6426/DI 129 8
COMMITTEE REPORT
Madam President: The Senate Committee on Tax and Fiscal Policy,
to which was referred Senate Bill No. 61, 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:
Page 1, delete line 5, begin a new paragraph and insert:
"Sec. 1. (a) Except as provided in subsection (b), this chapter
applies to all units except townships.
(b) This chapter does not apply to Marion County.".
Page 3, delete lines 17 through 19, begin a new paragraph and
insert:
"Sec. 9.5. The following property may not be included within the
territory of a district and the owners of such property shall not be
considered in determining the petition signature requirements
under section 13 of this chapter:
(1) Any property that receives a homestead standard
deduction under IC 6-1.1-12-37.
(2) Any property that is used for single family residential
housing.
(3) Any property that is used for multi-unit residential
housing.
In addition, the property described in this section shall not be
subject to a special assessment under this chapter.".
Page 4, delete lines 31 through 34, begin a new paragraph and
insert:
"(b) The legislative body may adopt the ordinance only if it
determines that the petition has been signed by at least:
(1) sixty-five percent (65%) of the businesses within the
proposed district that will pay the assessments; and
(2) the owners of sixty-five percent (65%) of the total net
assessed value of the real property within the proposed
district that will pay the assessments.
Both criteria set forth in subdivisions (1) and (2) must be met.
(c) The ordinance shall:".
Page 4, line 41, delete "(c)" and insert "(d)".
Page 5, delete lines 15 through 38, begin a new paragraph and
insert:
"Sec. 16. The initial term for a district shall be at least three (3)
years and not more than ten (10) years. However, in the case of a
district created for the purpose of issuing bonds, the initial term of
the district may not exceed the maximum maturity of those bonds,
provided that the amount of the bonds initially issued do not cause
SB 61—LS 6426/DI 129 9
the duration of the bonds to exceed ten (10) years.
Sec. 17. (a) A district may not be renewed. A district may be
reestablished only if all of the requirements and procedures for
establishing a district under this chapter are completed again prior
to or upon the expiration of the district under section 16 of this
chapter. A district may not be reestablished for more than an
additional ten (10) year period. However, in the case of a district
created for the purpose of issuing bonds, the reestablishment of the
district may not exceed the maximum maturity of those bonds,
provided that the amount of the bonds issued upon reestablishment
of the district do not cause the duration of the bonds to exceed ten
(10) years.
(b) If a district is reestablished, any remaining revenues derived
from the levy of a special assessment, or any revenues derived from
the sale of assets acquired with the revenues, shall be transferred
to the reestablished district. The following apply to the transfer of
any remaining revenues of a reestablished district:
(1) If the reestablished district includes a parcel of real
property or a business not included in the prior district, the
remaining revenues shall be spent to benefit only the parcel or
business in the prior district.
(2) If the reestablished district does not include a parcel of
real property or a business included in the prior district, the
remaining revenues attributable to the parcel shall be
refunded to the owners of the parcel or business.
(c) The boundaries, assessments, improvements, or activities of
a reestablished district are not required to be the same as the
original or prior district.".
Page 6, delete lines 7 through 9, begin a new paragraph and insert:
"Sec. 19. (a) The district management association shall annually
engage an independent certified public accounting firm to conduct
an examination of the tourism improvement district's funds,
accounts, and financial affairs.
(b) The district management association shall submit an annual
report and the examination required under subsection (a) to the
legislative body and the fiscal body before January 1 of each year.".
Page 6, line 10, delete "(b)" and insert "(c)".
and when so amended that said bill do pass.
(Reference is to SB 61 as introduced.)
SB 61—LS 6426/DI 129 10
HOLDMAN, Chairperson
Committee Vote: Yeas 12, Nays 0.
SB 61—LS 6426/DI 129