Indiana 2024 Regular Session

Indiana Senate Bill SB0155 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	~~SB0155.1~~
2		-	~~January 19, 2024~~
	1	+
	2	+	Introduced Version
3	3		SENATE BILL No. 155
4	4		_____
5		-	DIGEST OF ~~SB 155 (Updated January 18, 2024 12:05 pm - DI 140)~~
	5	+	DIGEST OF INTRODUCED BILL
6	6		Citations Affected: IC 32-24.
7	7		Synopsis: Compensation for business losses. Provides that a person
8	8		operating a business on a property may be compensated for business
9	9		losses resulting from a condemnation of the property. Provides that a
10	10		municipality may not acquire property using an alternative
11	11		condemnation procedure if the municipality is notified of the person's
12	12		intent to claim compensation for business losses.
13	13		Effective: Upon passage.
14	14		Buck
15	15		January 8, 2024, read first time and referred to Committee on Local Government.
16		-	January 18, 2024, reported favorably — Do Pass; reassigned to Committee on Tax and
17		-	Fiscal Policy.
18		-	SB 155—LS 6578/DI 137 January 19, 2024
	16	+	2024 IN 155—LS 6578/DI 137 Introduced
19	17		Second Regular Session of the 123rd General Assembly (2024)
20	18		PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
21	19		Constitution) is being amended, the text of the existing provision will appear in this style type,
22	20		additions will appear in this style type, and deletions will appear in this style type.
23	21		Additions: Whenever a new statutory provision is being enacted (or a new constitutional
24	22		provision adopted), the text of the new provision will appear in this style type. Also, the
25	23		word NEW will appear in that style type in the introductory clause of each SECTION that adds
26	24		a new provision to the Indiana Code or the Indiana Constitution.
27	25		Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
28	26		between statutes enacted by the 2023 Regular Session of the General Assembly.
29	27		SENATE BILL No. 155
30	28		A BILL FOR AN ACT to amend the Indiana Code concerning
31	29		property.
32	30		Be it enacted by the General Assembly of the State of Indiana:
33	31		1 SECTION 1. IC 32-24-1-0.1 IS ADDED TO THE INDIANA CODE
34	32		2 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
35	33		3 UPON PASSAGE]: Sec. 0.1. The amendments made to sections 7
36	34		4 and 9 of this chapter by this act during the 2024 regular session of
37	35		5 the general assembly apply to condemnation proceedings filed after
38	36		6 April 1, 2024.
39	37		7 SECTION 2. IC 32-24-1-7, AS AMENDED BY P.L.152-2021,
40	38		8 SECTION 32, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
41	39		9 UPON PASSAGE]: Sec. 7. (a) The notice, upon its return, must show
42	40		10 its:
43	41		11 (1) service for ten (10) days; or
44	42		12 (2) proof of publication for three (3) successive weeks:
45	43		13 (A) with each publication of the notice in a weekly newspaper
46	44		14 of general circulation printed and published in the English
47	45		15 language in the county in which the property sought to be
48	46		16 acquired is located; or
49	47		17 (B) with the first publication of notice in a newspaper
50		-	SB 155—LS 6578/DI 137 2
	48	+	2024 IN 155—LS 6578/DI 137 2
51	49		1 described in clause (A) and the two (2) subsequent
52	50		2 publications of notice:
53	51		3 (i) in accordance with IC 5-3-5; and
54	52		4 (ii) on the official web site website of the county.
55	53		5 The last publication of the notice must be five (5) days before the day
56	54		6 set for the hearing.
57	55		7 (b) The clerk of the court in which the proceedings are pending,
58	56		8 upon the first publication of the notice, shall send to the post office
59	57		9 address of each nonresident owner whose property will be affected by
60	58		10 the proceedings a copy of the notice, if the post office address of the
61	59		11 owner or owners can be ascertained by inquiry at the office of the
62	60		12 treasurer of the county.
63	61		13 (c) An owner (as defined in IC 32-24-2.6-3) shall notify the court
64	62		14 of the owner's intent to claim compensation for loss of a going
65	63		15 concern under IC 32-24-2.6 not later than ninety (90) days after the
66	64		16 date of:
67	65		17 (1) the first service; or
68	66		18 (2) publication;
69	67		19 of the notice under subsection (a).
70	68		20 (c) (d) The court, being satisfied of the regularity of the proceedings
71	69		21 and the right of the plaintiff to exercise the power of eminent domain
72	70		22 for the use sought, shall appoint:
73	71		23 (1) one (1) disinterested freeholder of the county; and
74	72		24 (2) two (2) disinterested appraisers licensed under IC 25-34.1;
75	73		25 who are residents of Indiana to assess the damages, or the benefits and
76	74		26 damages, as the case may be, that the owner or owners severally may
77	75		27 sustain, or be entitled to, by reason of the acquisition. One (1) of the
78	76		28 appraisers appointed under subdivision (2) must reside not more than
79	77		29 fifty (50) miles from the property. If an owner notifies the court
80	78		30 under subsection (c), at least one (1) appraiser appointed under
81	79		31 subdivision (2) must be qualified and capable of determining the
82	80		32 loss of a going concern.
83	81		33 SECTION 3. IC 32-24-1-9 IS AMENDED TO READ AS
84	82		34 FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 9. (a) Each
85	83		35 appraiser shall take an oath that:
86	84		36 (1) the appraiser has no interest in the matter; and
87	85		37 (2) the appraiser will honestly and impartially make the
88	86		38 assessment.
89	87		39 (b) After the appraisers are sworn as provided in subsection (a), the
90	88		40 judge shall instruct the appraisers as to:
91	89		41 (1) their duties as appraisers; and
92	90		42 (2) the measure of the damages and benefits, if any, they allow.
93		-	SB 155—LS 6578/DI 137 3
	91	+	2024 IN 155—LS 6578/DI 137 3
94	92		1 (c) The appraisers shall determine and report all of the following:
95	93		2 (1) The fair market value of each parcel of property sought to be
96	94		3 acquired and the value of each separate estate or interest in the
97	95		4 property.
98	96		5 (2) The fair market value of all improvements pertaining to the
99	97		6 property, if any, on the portion of the property to be acquired.
100	98		7 (3) The damages, if any, to the residue of the property of the
101	99		8 owner or owners caused by taking out the part sought to be
102	100		9 acquired.
103	101		10 (4) The other damages, if any, that will result to any persons from
104	102		11 the construction of the improvements in the manner proposed by
105	103		12 the plaintiff.
106	104		13 (5) The damages, if any, to an owner's loss of a going concern
107	105		14 under IC 32-24-2.6, if the owner (as defined in IC 32-24-2.6-3)
108	106		15 has notified the court in accordance with section 7(c) of this
109	107		16 chapter.
110	108		17 (d) If the property is sought to be acquired by the state or by a
111	109		18 county for a public highway or a municipal corporation for a public use
112	110		19 that confers benefits on any property of the owner, the report must also
113	111		20 state the benefits that will accrue to each parcel of property, set
114	112		21 opposite the description of each parcel of property whether described
115	113		22 in the complaint or not.
116	114		23 (e) Except as provided in subsection (f), in estimating the damages
117	115		24 specified in subsection (c), the appraisers may not deduct for any
118	116		25 benefits that may result from the improvement.
119	117		26 (f) In the case of a condemnation by the state or by a county for a
120	118		27 public highway or a municipal corporation for public use, the
121	119		28 appraisers shall deduct any benefits assessed from the amount of
122	120		29 damage allowed, if any, under subsection (c)(3) and (c)(4) and the
123	121		30 difference, if any, plus the damages allowed under subsection (c)(1),
124	122		31 and (c)(2), and, if applicable, (c)(5) shall be the amount of the award.
125	123		32 However, the damages awarded may not be less than the damages
126	124		33 allowed under subsection (c)(1), and (c)(2), and, if applicable, (c)(5).
127	125		34 Upon the trial of exceptions to the award by either party, a like measure
128	126		35 of damages must be followed.
129	127		36 (g) For the purpose of assessing compensation and damages, the
130	128		37 right to compensation and damages is considered to have accrued as of
131	129		38 the date of the service of the notice provided in section 6 of this
132	130		39 chapter, and actual value of compensation and damages at that date
133	131		40 shall be:
134	132		41 (1) the measure of compensation for all property to be actually
135	133		42 acquired; and
136		-	SB 155—LS 6578/DI 137 4
	134	+	2024 IN 155—LS 6578/DI 137 4
137	135		1 (2) the basis of damages to property not actually acquired but
138	136		2 injuriously affected;
139	137		3 except as to the damages stated in subsection (c)(4).
140	138		4 SECTION 4. IC 32-24-2-0.1 IS ADDED TO THE INDIANA CODE
141	139		5 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
142	140		6 UPON PASSAGE]: Sec. 0.1. The amendments made to sections 5
143	141		7 and 6 of this chapter by this act during the 2024 regular session of
144	142		8 the general assembly apply to proceedings under this chapter
145	143		9 commenced after April 1, 2024.
146	144		10 SECTION 5. IC 32-24-2-5 IS AMENDED TO READ AS
147	145		11 FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 5. (a) Except as
148	146		12 provided in subsection (b), if:
149	147		13 (1) a municipality has the power to acquire property under this
150	148		14 chapter; or
151	149		15 (2) another statute provides for proceedings by a municipality for
152	150		16 acquiring property under this chapter;
153	151		17 the board exercising those powers may proceed under IC 32-24-1
154	152		18 instead of this chapter.
155	153		19 (b) If an owner (as defined in IC 32-24-2.6-3) notifies the board
156	154		20 of the owner's intent to claim compensation for loss of a going
157	155		21 concern under IC 32-24-2.6, the board exercising those powers
158	156		22 must proceed under IC 32-24-1 to acquire the property.
159	157		23 SECTION 6. IC 32-24-2-6, AS AMENDED BY P.L.152-2021,
160	158		24 SECTION 33, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
161	159		25 UPON PASSAGE]: Sec. 6. (a) This chapter applies if the works board
162	160		26 of a municipality wants to acquire property for the use of the
163	161		27 municipality or to open, change, lay out, or vacate a street, an alley, or
164	162		28 a public place in the municipality, including a proposed street or alley
165	163		29 crossings of railways or other rights-of-way. However, this chapter
166	164		30 does not apply if a municipality wants to acquire the property of a
167	165		31 public utility (as defined in IC 8-1-2-1).
168	166		32 (b) The works board must adopt a resolution that the municipality
169	167		33 wants to acquire the property. The resolution must describe the
170	168		34 property that may be injuriously or beneficially affected. The board
171	169		35 shall have notice of the resolution:
172	170		36 (1) published for two (2) consecutive weeks:
173	171		37 (A) with each publication of notice in a newspaper of general
174	172		38 circulation published in the municipality; or
175	173		39 (B) with the first publication of notice in a newspaper
176	174		40 described in clause (A) and the second publication of notice:
177	175		41 (i) in accordance with IC 5-3-5; and
178	176		42 (ii) on the official web site website of the municipality; and
179		-	SB 155—LS 6578/DI 137 5
	177	+	2024 IN 155—LS 6578/DI 137 5
180	178		1 (2) mailed to the owner of each piece of property affected by the
181	179		2 proposed acquisition.
182	180		3 The notice must name a date, at least thirty (30) forty-five (45) days
183	181		4 after the last publication, at which time the board will receive or hear
184	182		5 remonstrances from persons interested in or affected by the proceeding.
185	183		6 (c) The works board shall consider the remonstrances, if any, and
186	184		7 then take final action, confirming, modifying, or rescinding its original
187	185		8 resolution.
188	186		9 (d) If an owner (as defined in IC 32-24-2.6-3) submits a
189	187		10 remonstrance that notifies the works board of the owner's intent
190	188		11 to claim compensation for loss of a going concern under
191	189		12 IC 32-24-2.6, the works board must terminate proceedings under
192	190		13 this chapter and proceed under IC 32-24-1 to acquire the property.
193	191		14 SECTION 7. IC 32-24-2.6 IS ADDED TO THE INDIANA CODE
194	192		15 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
195	193		16 UPON PASSAGE]:
196	194		17 Chapter 2.6. Compensation for Business Losses
197	195		18 Sec. 1. This chapter applies only to condemnation proceedings
198	196		19 filed after April 1, 2024.
199	197		20 Sec. 2. As used in this chapter, "going concern" means the
200	198		21 benefits that accrue to a business or trade as a result of the
201	199		22 business's or trade's:
202	200		23 (1) location;
203	201		24 (2) geographic features;
204	202		25 (3) reputation for dependability;
205	203		26 (4) skill or quality;
206	204		27 (5) customer base; or
207	205		28 (6) good will;
208	206		29 or any other circumstances resulting in the probable retention of
209	207		30 old or acquisition of new patronage.
210	208		31 Sec. 3. As used in this chapter, "owner" means:
211	209		32 (1) the persons listed on the tax assessment rolls as being
212	210		33 responsible for the payment of real estate taxes imposed on
213	211		34 the property;
214	212		35 (2) the persons in whose name title to real estate is shown in
215	213		36 the records of the recorder of the county in which the real
216	214		37 estate is located; or
217	215		38 (3) a lessee who operates a business on the real property.
218	216		39 Sec. 4. If a business or trade is damaged by a taking,
219	217		40 condemnation, or eminent domain proceeding, the owner shall be
220	218		41 compensated by the condemnor for the loss of the going concern,
221	219		42 unless the condemnor establishes by a preponderance of the
222		-	SB 155—LS 6578/DI 137 6
	220	+	2024 IN 155—LS 6578/DI 137 6
223	221		1 evidence that:
224	222		2 (1) the loss is not caused by the taking of the property or the
225	223		3 injury to the remainder;
226	224		4 (2) the loss can be reasonably prevented by:
227	225		5 (A) relocating the business or trade to:
228	226		6 (i) the same or a similar location; and
229	227		7 (ii) a reasonably suitable location;
230	228		8 as the property that was taken; or
231	229		9 (B) taking steps and adopting procedures that a reasonably
232	230		10 prudent person:
233	231		11 (i) of a similar age; and
234	232		12 (ii) as the owner, under similar conditions;
235	233		13 would take and adopt in preserving the going concern of
236	234		14 the business or trade; or
237	235		15 (3) compensation for the loss will be duplicated in the
238	236		16 compensation otherwise awarded to the owner.
239	237		17 Sec. 5. An owner's damages for loss of value to a going concern
240	238		18 shall be determined by appraisers as part of the compensation due
241	239		19 to the owner. An owner shall provide an appraiser reasonable
242	240		20 access to the records necessary to determine the value of the loss of
243	241		21 the going concern. The appraiser's decision regarding any award
244	242		22 for the loss of the going concern may be challenged by any party.
245	243		23 SECTION 8. An emergency is declared for this act.
246		-	SB 155—LS 6578/DI 137 7
247		-	COMMITTEE REPORT
248		-	Madam President: The Senate Committee on Local Government, to
249		-	which was referred Senate Bill No. 155, has had the same under
250		-	consideration and begs leave to report the same back to the Senate with
251		-	the recommendation that said bill DO PASS and be reassigned to the
252		-	Senate Committee on Tax and Fiscal Policy.
253		-	(Reference is to SB 155 as introduced.)
254		-	BUCK, Chairperson
255		-	Committee Vote: Yeas 8, Nays 2
256		-	SB 155—LS 6578/DI 137
	244	+	2024 IN 155—LS 6578/DI 137