IN
Indiana House Bill HB1234

Indiana 2025 Regular Session

Indiana House Bill HB1234 Compare Versions

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1-*HB1234.1*
2-January 21, 2025
1+
2+Introduced Version
33 HOUSE BILL No. 1234
44 _____
5-DIGEST OF HB 1234 (Updated January 14, 2025 2:32 pm - DI 148)
6-Citations Affected: IC 14-8; IC 14-40; IC 15-11.
5+DIGEST OF INTRODUCED BILL
6+Citations Affected: IC 14-40; IC 15-11-2-3.
77 Synopsis: Conservation of agricultural land. Establishes an
88 agricultural land protection program (program) to allow the state or a
99 county fiscal body to purchase agricultural conservation easements
1010 throughout the state and also acquire agricultural conservation
1111 easements by gift, bequest, or devise. Provides that the Indiana state
1212 department of agriculture (department) may receive and hold
1313 agricultural conservation easements acquired under the program or by
1414 gift, bequest, or devise. Establishes the Indiana land protection board
1515 to administer the program in coordination with the department.
1616 Establishes the agricultural conservation easement fund to provide
1717 funding for the purchase of agricultural conservation easements
1818 throughout the state. Makes an appropriation.
1919 Effective: July 1, 2025.
20-Culp, Aylesworth
20+Culp
2121 January 9, 2025, read first time and referred to Committee on Agriculture and Rural
2222 Development.
23-January 21, 2025, amended, reported — Do Pass. Referred to Committee on Ways and
24-Means pursuant to Rule 126.3.
25-HB 1234—LS 7529/DI 120 January 21, 2025
23+2025 IN 1234—LS 7529/DI 120 Introduced
2624 First Regular Session of the 124th General Assembly (2025)
2725 PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
2826 Constitution) is being amended, the text of the existing provision will appear in this style type,
2927 additions will appear in this style type, and deletions will appear in this style type.
3028 Additions: Whenever a new statutory provision is being enacted (or a new constitutional
3129 provision adopted), the text of the new provision will appear in this style type. Also, the
3230 word NEW will appear in that style type in the introductory clause of each SECTION that adds
3331 a new provision to the Indiana Code or the Indiana Constitution.
3432 Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
3533 between statutes enacted by the 2024 Regular Session of the General Assembly.
3634 HOUSE BILL No. 1234
3735 A BILL FOR AN ACT to amend the Indiana Code concerning
3836 agriculture and animals and to make an appropriation.
3937 Be it enacted by the General Assembly of the State of Indiana:
40-1 SECTION 1. IC 14-8-2-4.2 IS ADDED TO THE INDIANA CODE
41-2 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
42-3 1, 2025]: Sec. 4.2. "Agricultural conservation easement", for
43-4 purposes of IC 14-40, has the meaning set forth in IC 14-40-1-2.
44-5 SECTION 2. IC 14-8-2-4.9 IS ADDED TO THE INDIANA CODE
45-6 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
46-7 1, 2025]: Sec. 4.9. "Agricultural production", for purposes of
47-8 IC 14-40, has the meaning set forth in IC 14-40-1-3.
48-9 SECTION 3. IC 14-8-2-24 IS AMENDED TO READ AS
49-10 FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 24. "Board" has the
50-11 following meaning:
51-12 (1) For purposes of IC 14-27-6, the meaning set forth in
52-13 IC 14-27-6-2.
53-14 (2) For purposes of IC 14-32, the soil conservation board
54-15 established by IC 14-32-2-1.
55-16 (3) For purposes of IC 14-33, the board of directors of a
56-17 conservancy district.
57-HB 1234—LS 7529/DI 120 2
58-1 (4) For purposes of IC 14-40, the meaning set forth in
59-2 IC 14-40-1-4.
60-3 SECTION 4. IC 14-8-2-67.5 IS ADDED TO THE INDIANA CODE
61-4 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
62-5 1, 2025]: Sec. 67.5. "Department of agriculture", for purposes of
63-6 IC 14-40, has the meaning set forth in IC 14-40-1-5.
64-7 SECTION 5. IC 14-8-2-107, AS AMENDED BY P.L.127-2022,
65-8 SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
66-9 JULY 1, 2025]: Sec. 107. "Fund" has the following meaning:
67-10 (1) For purposes of IC 14-9-5, the meaning set forth in
68-11 IC 14-9-5-1.
69-12 (2) For purposes of IC 14-9-8-21, the meaning set forth in
70-13 IC 14-9-8-21.
71-14 (3) For purposes of IC 14-9-8-21.5, the meaning set forth in
72-15 IC 14-9-8-21.5.
73-16 (4) For purposes of IC 14-9-9, the meaning set forth in
74-17 IC 14-9-9-3.
75-18 (5) For purposes of IC 14-12-1, the meaning set forth in
76-19 IC 14-12-1-1.
77-20 (6) For purposes of IC 14-12-2, the meaning set forth in
78-21 IC 14-12-2-2.
79-22 (7) For purposes of IC 14-12-3, the meaning set forth in
80-23 IC 14-12-3-2.
81-24 (8) For purposes of IC 14-13-1, the meaning set forth in
82-25 IC 14-13-1-2.
83-26 (9) For purposes of IC 14-13-2, the meaning set forth in
84-27 IC 14-13-2-3.
85-28 (10) For purposes of IC 14-16-1, the meaning set forth in
86-29 IC 14-16-1-30.
87-30 (11) For purposes of IC 14-19-8, the meaning set forth in
88-31 IC 14-19-8-1.
89-32 (12) For purposes of IC 14-19-11, the meaning set forth in
90-33 IC 14-19-11-3.1.
91-34 (13) For purposes of IC 14-20-11, the meaning set forth in
92-35 IC 14-20-11-2.
93-36 (14) For purposes of IC 14-22-3, the meaning set forth in
94-37 IC 14-22-3-1.
95-38 (15) For purposes of IC 14-22-4, the meaning set forth in
96-39 IC 14-22-4-1.
97-40 (16) For purposes of IC 14-22-5, the meaning set forth in
98-41 IC 14-22-5-1.
99-42 (17) For purposes of IC 14-22-8, the meaning set forth in
100-HB 1234—LS 7529/DI 120 3
101-1 IC 14-22-8-1.
102-2 (18) For purposes of IC 14-22-34, the meaning set forth in
103-3 IC 14-22-34-2.
104-4 (19) For purposes of IC 14-23-3, the meaning set forth in
105-5 IC 14-23-3-1.
106-6 (20) For purposes of IC 14-25-2-4, the meaning set forth in
107-7 IC 14-25-2-4.
108-8 (21) For purposes of IC 14-25-10, the meaning set forth in
109-9 IC 14-25-10-1.
110-10 (22) For purposes of IC 14-25.5, the meaning set forth in
111-11 IC 14-25.5-1-3.
112-12 (23) For purposes of IC 14-31-2, the meaning set forth in
113-13 IC 14-31-2-5.
114-14 (24) For purposes of IC 14-25-12, the meaning set forth in
115-15 IC 14-25-12-1.
116-16 (25) For purposes of IC 14-32-8, the meaning set forth in
117-17 IC 14-32-8-1.
118-18 (26) For purposes of IC 14-33-14, the meaning set forth in
119-19 IC 14-33-14-3.
120-20 (27) For purposes of IC 14-33-21, the meaning set forth in
121-21 IC 14-33-21-1.
122-22 (28) For purposes of IC 14-34-6-15, the meaning set forth in
123-23 IC 14-34-6-15.
124-24 (29) For purposes of IC 14-34-14, the meaning set forth in
125-25 IC 14-34-14-1.
126-26 (30) For purposes of IC 14-34-19-1.3, the meaning set forth in
127-27 IC 14-34-19-1.3(a).
128-28 (31) For purposes of IC 14-34-19-1.5, the meaning set forth in
129-29 IC 14-34-19-1.5(a).
130-30 (32) For purposes of IC 14-37-10, the meaning set forth in
131-31 IC 14-37-10-1.
132-32 (33) For purposes of IC 14-40, the meaning set forth in
133-33 IC 14-40-1-6.
134-34 SECTION 6. IC 14-8-2-154.3 IS ADDED TO THE INDIANA
135-35 CODE AS A NEW SECTION TO READ AS FOLLOWS
136-36 [EFFECTIVE JULY 1, 2025]: Sec. 154.3. "Local program", for
137-37 purposes of IC 14-40, has the meaning set forth in IC 14-40-1-7.
138-38 SECTION 7. IC 14-8-2-216 IS AMENDED TO READ AS
139-39 FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 216. (a) "Program", for
140-40 purposes of IC 14-12-3, has the meaning set forth in IC 14-12-3-4.
141-41 (b) "Program", for purposes of IC 14-23-6.5, has the meaning set
142-42 forth in IC 14-23-6.5-1.
143-HB 1234—LS 7529/DI 120 4
144-1 (c) "Program", for purposes of IC 14-32-8, has the meaning set forth
145-2 in IC 14-32-8-3.
146-3 (d) "Program", for purposes of IC 14-40, has the meaning set
147-4 forth in IC 14-40-1-8.
148-5 SECTION 8. IC 14-40 IS ADDED TO THE INDIANA CODE AS
149-6 A NEW ARTICLE TO READ AS FOLLOWS [EFFECTIVE JULY 1,
150-7 2025]:
151-8 ARTICLE 40. CONSERVATION OF AGRICULTURAL LAND
152-9 Chapter 1. Definitions
153-10 Sec. 1. The definitions in this chapter apply throughout this
154-11 article.
155-12 Sec. 2. "Agricultural conservation easement" means an interest
156-13 in land, less than fee simple, that represents the right to prevent the
157-14 development or improvement of a parcel for any purpose other
158-15 than agricultural production.
159-16 Sec. 3. "Agricultural production" means the production for
160-17 commercial purposes of crops, livestock, and livestock products,
161-18 including the processing or retail marketing of such crops,
162-19 livestock, or livestock products if more than fifty percent (50%) of
163-20 such processed or marketed products are produced by the farm
164-21 operator. The term includes use of land that is devoted to and
165-22 meets the requirements of and qualifications for payments or other
166-23 compensation pursuant to a soil conservation program under an
167-24 agreement with an agency of the federal government.
168-25 Sec. 4. "Board" means the Indiana land protection board
169-26 established by IC 14-40-2-1(b).
170-27 Sec. 5. "Department of agriculture" means the Indiana state
171-28 department of agriculture established by IC 15-11-2-1.
172-29 Sec. 6. "Fund" means the agricultural conservation easement
173-30 fund established by IC 14-40-3-1.
174-31 Sec. 7. "Local program" means a local program of agricultural
175-32 land protection established by a county fiscal body under
176-33 IC 14-40-2-6.
177-34 Sec. 8. "Program" means the agricultural land protection
178-35 program established by IC 14-40-2-1(a).
179-36 Chapter 2. Agricultural Conservation Easements
180-37 Sec. 1. (a) The agricultural land protection program is
181-38 established for the purpose of conserving and protecting
182-39 agricultural viability within Indiana for the production of food and
183-40 other agricultural products. The program shall be administered by
184-41 the board in coordination with the department of agriculture.
185-42 (b) The Indiana land protection board is established. The board
186-HB 1234—LS 7529/DI 120 5
187-1 consists of the following members:
188-2 (1) The director of the department of agriculture, who shall
189-3 serve as chair of the board.
190-4 (2) A representative of Indiana's largest general farm
191-5 organization.
192-6 (3) An Indiana farmland owner who is chosen by both of the
193-7 members described in subdivisions (1) and (2).
194-8 Sec. 2. (a) The board has the following duties:
195-9 (1) Administer a program for the purchase of agricultural
196-10 conservation easements by the state.
197-11 (2) Oversee, review, and coordinate with counties that choose
198-12 to implement a local program for the purchase of agricultural
199-13 conservation easements by the county.
200-14 (b) The board may perform all acts necessary or reasonably
201-15 incident to carrying out the purposes of this chapter, including the
202-16 following powers:
203-17 (1) To sue and be sued.
204-18 (2) To enter into contracts and to execute all instruments
205-19 necessary or appropriate to carry out the board's purposes.
206-20 (3) To acquire, by gift, bequest, devise, or purchase, easements
207-21 to restrict the use of agricultural land as set forth in this
208-22 chapter. Easements acquired by the board may also be held
209-23 by the department of agriculture under IC 15-11-2-3(c)(1).
210-24 (4) To take and hold, by gift, bequest, devise, or purchase, in
211-25 the name of the state, or the department of agriculture under
212-26 IC 15-11-2-3(c), real and personal property, or any interest in
213-27 real and personal property to carry out the purposes of this
214-28 chapter.
215-29 (5) To record agricultural conservation easements purchased
216-30 by the state in the office of the recorder of the county in which
217-31 the property is located.
218-32 (6) To adopt procedures, guidelines, and policies necessary to
219-33 carry out this article.
220-34 (7) To review, and accept or reject, grant requests, proposals,
221-35 and recommendations from a county fiscal body for the
222-36 purchase of an agricultural conservation easement either by
223-37 the county or the state.
224-38 (8) To make grants to counties for the purchase of
225-39 agricultural conservation easements by the county.
226-40 (9) To use money in the fund to purchase agricultural
227-41 conservation easements under this chapter.
228-42 (10) To provide information about the program to farmers
229-HB 1234—LS 7529/DI 120 6
230-1 throughout Indiana.
231-2 (11) To maintain a central repository of records containing a
232-3 list and description of all agricultural land within Indiana in
233-4 which an agricultural conservation easement is imposed.
234-5 Sec. 3. Agricultural land within Indiana may qualify for the
235-6 transfer of an agricultural conservation easement upon the land
236-7 under the provisions of this chapter only if the following apply:
237-8 (1) The land is at least fifty (50) acres in size or is contiguous
238-9 to other land that is subject to an agricultural conservation
239-10 easement under this chapter.
240-11 (2) The land is owned and used for agricultural production in
241-12 accordance with all applicable agricultural and
242-13 environmental standards and regulations.
243-14 (3) At least fifty percent (50%) of the land must be harvested
244-15 cropland, pasture, or grazing land.
245-16 (4) At least fifty percent (50%) of the land must meet one (1)
246-17 of the following criteria:
247-18 (A) Contains soils that are classified under capability
248-19 classes I through IV (except class IV(e)) of the land
249-20 capability classification of the United States Department of
250-21 Agriculture, Natural Resources Conservation Service.
251-22 (B) Contains soils that are classified as "unique farmland"
252-23 under the land capability classification of the United States
253-24 Department of Agriculture, Natural Resources
254-25 Conservation Service.
255-26 Sec. 4. An agricultural conservation easement transferred as set
256-27 forth in this chapter, whether it is acquired by the state or a
257-28 county, must be subject to the following terms, conditions,
258-29 restrictions, and limitations:
259-30 (1) The agricultural conservation easement must be perpetual.
260-31 (2) If agricultural land with an agricultural conservation
261-32 easement is subject to condemnation under the power of
262-33 eminent domain, the condemnor shall provide compensation
263-34 to the owner of the land and to the owner of the agricultural
264-35 conservation easement representing at least one hundred fifty
265-36 percent (150%) of the fair market value of each respective
266-37 title.
267-38 (3) The agricultural conservation easement shall not prevent
268-39 any of the following:
269-40 (A) The granting of a right-of-way by the owner in and
270-41 through the subject land for the installation, conveyance,
271-42 transportation, or use of water, sewage, electric, telephone,
272-HB 1234—LS 7529/DI 120 7
273-1 or other similar services.
274-2 (B) The construction, use, and improvement of structures
275-3 on the subject land necessary for agricultural production.
276-4 (C) The construction, use, and improvement of one (1)
277-5 family dwelling on the subject land.
278-6 Sec. 5. (a) The value and purchase price of an agricultural
279-7 conservation easement for purposes of this chapter shall be
280-8 determined under this section.
281-9 (b) The board or the county fiscal body, whichever is applicable,
282-10 shall select and retain an independent, licensed real estate
283-11 appraiser who is certified under IC 6-1.1-31.7 to determine market
284-12 value and agricultural value of the subject land. The appraiser
285-13 shall establish the agricultural value and the nonagricultural value
286-14 of the land subject to the proposed agricultural conservation
287-15 easement.
288-16 (c) The purchase price for any agricultural conservation
289-17 easement acquired under this chapter shall not exceed the
290-18 difference between the nonagricultural value and the agricultural
291-19 value of the subject land as determined at the time of purchase.
292-20 Sec. 6. (a) The fiscal body of each county may establish by
293-21 ordinance a local program of agricultural land protection for the
294-22 purpose of acquiring agricultural conservation easements by the
295-23 county. The fiscal officer of the county fiscal body shall administer
296-24 the local program.
297-25 (b) A county may acquire, under a local program, agricultural
298-26 conservation easements:
299-27 (1) in the name of the county; or
300-28 (2) that are held by the department of agriculture under
301-29 IC 15-11-2-3(c)(1);
302-30 subject to this chapter.
303-31 (c) The acquisition of an agricultural conservation easement by
304-32 a county is first subject to the approval of the board. The county
305-33 fiscal body must submit a proposal to the board for each purchase
306-34 with a description of the land and the terms of the easement. The
307-35 board shall act to approve or disapprove a proposal from a county
308-36 within sixty (60) days of its receipt. Failure of the board to act on
309-37 a proposal by a county within sixty (60) days of its receipt shall be
310-38 deemed to constitute approval of the proposal by the board.
311-39 (d) The county fiscal body may purchase an agricultural
312-40 conservation easement only after conducting a public hearing at
313-41 which all interested persons have an opportunity to be heard
314-42 concerning the purchase of the agricultural conservation easement.
315-HB 1234—LS 7529/DI 120 8
316-1 (e) The fiscal officer of the county fiscal body shall record with
317-2 the county recorder's office each agricultural conservation
318-3 easement acquired by the county or held by the department of
319-4 agriculture under IC 15-11-2-3(c).
320-5 (f) The county fiscal body shall notify the board of the
321-6 acquisition of each agricultural conservation easement by the
322-7 county within thirty (30) days of the recording of the agricultural
323-8 conservation easement.
324-9 (g) In addition to the purchase of agricultural conservation
325-10 easements by the county, the county fiscal body may recommend
326-11 to the board qualifying properties the owners of which have
327-12 expressed an interest in transferring an agricultural conservation
328-13 easement to the state.
329-14 (h) The county fiscal body may use money from the general fund
330-15 of the county or any other fund of the county that is not otherwise
331-16 restricted for the purchase of agricultural conservation easements
332-17 by the county. In addition, the county fiscal body may apply to the
333-18 board for a grant, and apply for grants from federal or other
334-19 sources, for the purchase of an agricultural conservation easement
335-20 within the county. A grant request to the board must include a
336-21 description and location of the subject land, a copy of the appraisal
337-22 of the land under section 5(b) of this chapter, and the proposed
338-23 purchase price of the agricultural conservation easement.
339-24 Sec. 7. (a) One (1) or more owners of agricultural land in
340-25 Indiana may file an application with the board or a county fiscal
341-26 body requesting the purchase of an agricultural conservation
342-27 easement on the land by the state or the county, whichever is
343-28 applicable. The application must include all information deemed
344-29 necessary to evaluate the application. The board shall prescribe
345-30 and make publicly available a standard application form to be used
346-31 by owners for applications both to the board and to a county fiscal
347-32 body.
348-33 (b) The board may accept, or reject without any recourse, an
349-34 application submitted under this section.
350-35 Sec. 8. In addition to the provisions for the purchase of an
351-36 agricultural conservation easement under this article, the state or
352-37 a county, may take, receive, and acquire an agricultural
353-38 conservation easement by donation of the owner, or by bequest or
354-39 devise of a decedent, subject to the provisions in sections 3 and 4 of
355-40 this chapter. In addition, an agricultural conservation easement
356-41 may be received and held by the department of agriculture under
357-42 IC 15-11-2-3.
358-HB 1234—LS 7529/DI 120 9
359-1 Sec. 9. The board shall, before October 1, 2026, and before
360-2 October 1 of each year thereafter, submit a report to the governor
361-3 and the legislative council in an electronic format under IC 5-14-6
362-4 containing a summary of the board's proceedings for the preceding
363-5 fiscal year, including a compilation of the agricultural conservation
364-6 easements acquired for the fiscal year and in total since the
365-7 establishment of the program.
366-8 Chapter 3. Agricultural Conservation Easement Fund
367-9 Sec. 1. (a) The agricultural conservation easement fund is
368-10 established to provide funding for the purchase of agricultural
369-11 conservation easements throughout Indiana. The board shall
370-12 administer the fund.
371-13 (b) The fund consists of the following:
372-14 (1) Money appropriated to the fund by the general assembly.
373-15 (2) Gifts, grants, devises, bequests, and other donations made
374-16 to the fund.
375-17 (c) Money in the fund must be used only for the purchase of
376-18 agricultural conservation easements as set forth in this article.
377-19 (d) The treasurer of state shall invest money in the fund not
378-20 currently needed to meet the obligations of the fund in the same
379-21 manner as other public money may be invested. Interest that
380-22 accrues from these investments shall be deposited in the fund.
381-23 (e) Money in the fund at the end of a state fiscal year does not
382-24 revert to the state general fund.
383-25 (f) Money in the fund is continuously appropriated for the
384-26 purposes of the fund.
385-27 SECTION 9. IC 15-11-2-3, AS AMENDED BY P.L.9-2018,
386-28 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
387-29 JULY 1, 2025]: Sec. 3. (a) As used in this section, "biomass" means
388-30 agriculturally based sources of renewable energy, including the
389-31 following:
390-32 (1) Agricultural crops.
391-33 (2) Agricultural wastes and residues.
392-34 (3) Wood and wood byproducts, including the following:
393-35 (A) Wood residue.
394-36 (B) Forest thinning.
395-37 (C) Mill residue wood.
396-38 (4) Animal wastes.
397-39 (5) Animal byproducts.
398-40 (6) Aquatic plants.
399-41 (7) Algae.
400-42 The term does not include waste from construction and demolition.
401-HB 1234—LS 7529/DI 120 10
402-1 (b) The department shall do the following:
403-2 (1) Provide administrative and staff support for the following:
404-3 (A) The state fair board for purposes of carrying out the
405-4 director's duties under IC 15-13-5.
406-5 (B) The Indiana corn marketing council for purposes of
407-6 administering the duties of the director under IC 15-15-12.
408-7 (C) The Indiana dairy industry development board for
409-8 purposes of administering the duties of the director under
410-9 IC 15-18-5.
411-10 (D) The Indiana land resources council under IC 15-12-5.
412-11 (E) The Indiana grain buyers and warehouse licensing agency
413-12 under IC 26-3-7.
414-13 (F) The Indiana grain indemnity corporation under IC 26-4-3.
415-14 (G) The division.
416-15 (2) Administer the election of state fair board members under
417-16 IC 15-13-5.
418-17 (3) Administer state programs and laws promoting agricultural
419-18 trade.
420-19 (4) Administer state livestock or agriculture marketing grant
421-20 programs.
422-21 (5) Administer economic development efforts for agriculture by
423-22 doing the following:
424-23 (A) Promoting value added agricultural resources.
425-24 (B) Marketing Indiana agriculture to businesses
426-25 internationally.
427-26 (C) Assisting Indiana agricultural businesses with developing
428-27 partnerships with the Indiana economic development
429-28 corporation.
430-29 (D) Soliciting private funding for selective economic
431-30 development and trade initiatives.
432-31 (E) Providing for the orderly economic development and
433-32 growth of Indiana's agricultural economy.
434-33 (F) Facilitating the use of biomass and algae production
435-34 systems to generate renewable energy.
436-35 (6) Carry out the department's duties under IC 23-15-12.
437-36 (c) The department may do the following:
438-37 (1) Receive and hold (including as a co-holder) agricultural
439-38 conservation easements acquired by the state or a county
440-39 under IC 14-40-2.
441-40 (2) Receive and hold agricultural conservation easements
442-41 acquired by donation of the owner or by bequest or devise of
443-42 a decedent.
444-HB 1234—LS 7529/DI 120 11
445-COMMITTEE REPORT
446-Mr. Speaker: Your Committee on Agriculture and Rural
447-Development, to which was referred House Bill 1234, has had the same
448-under consideration and begs leave to report the same back to the
449-House with the recommendation that said bill be amended as follows:
450-Page 1, between the enacting clause and line 1, begin a new
451-paragraph and insert:
452-"SECTION 1. IC 14-8-2-4.2 IS ADDED TO THE INDIANA CODE
453-AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
454-1, 2025]: Sec. 4.2. "Agricultural conservation easement", for
455-purposes of IC 14-40, has the meaning set forth in IC 14-40-1-2.
456-SECTION 2. IC 14-8-2-4.9 IS ADDED TO THE INDIANA CODE
457-AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
458-1, 2025]: Sec. 4.9. "Agricultural production", for purposes of
459-IC 14-40, has the meaning set forth in IC 14-40-1-3.
460-SECTION 3. IC 14-8-2-24 IS AMENDED TO READ AS
461-FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 24. "Board" has the
462-following meaning:
463-(1) For purposes of IC 14-27-6, the meaning set forth in
464-IC 14-27-6-2.
465-(2) For purposes of IC 14-32, the soil conservation board
466-established by IC 14-32-2-1.
467-(3) For purposes of IC 14-33, the board of directors of a
468-conservancy district.
469-(4) For purposes of IC 14-40, the meaning set forth in
470-IC 14-40-1-4.
471-SECTION 4. IC 14-8-2-67.5 IS ADDED TO THE INDIANA CODE
472-AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
473-1, 2025]: Sec. 67.5. "Department of agriculture", for purposes of
474-IC 14-40, has the meaning set forth in IC 14-40-1-5.
475-SECTION 5. IC 14-8-2-107, AS AMENDED BY P.L.127-2022,
476-SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
477-JULY 1, 2025]: Sec. 107. "Fund" has the following meaning:
478-(1) For purposes of IC 14-9-5, the meaning set forth in
479-IC 14-9-5-1.
480-(2) For purposes of IC 14-9-8-21, the meaning set forth in
481-IC 14-9-8-21.
482-(3) For purposes of IC 14-9-8-21.5, the meaning set forth in
483-IC 14-9-8-21.5.
484-(4) For purposes of IC 14-9-9, the meaning set forth in
485-IC 14-9-9-3.
486-HB 1234—LS 7529/DI 120 12
487-(5) For purposes of IC 14-12-1, the meaning set forth in
488-IC 14-12-1-1.
489-(6) For purposes of IC 14-12-2, the meaning set forth in
490-IC 14-12-2-2.
491-(7) For purposes of IC 14-12-3, the meaning set forth in
492-IC 14-12-3-2.
493-(8) For purposes of IC 14-13-1, the meaning set forth in
494-IC 14-13-1-2.
495-(9) For purposes of IC 14-13-2, the meaning set forth in
496-IC 14-13-2-3.
497-(10) For purposes of IC 14-16-1, the meaning set forth in
498-IC 14-16-1-30.
499-(11) For purposes of IC 14-19-8, the meaning set forth in
500-IC 14-19-8-1.
501-(12) For purposes of IC 14-19-11, the meaning set forth in
502-IC 14-19-11-3.1.
503-(13) For purposes of IC 14-20-11, the meaning set forth in
504-IC 14-20-11-2.
505-(14) For purposes of IC 14-22-3, the meaning set forth in
506-IC 14-22-3-1.
507-(15) For purposes of IC 14-22-4, the meaning set forth in
508-IC 14-22-4-1.
509-(16) For purposes of IC 14-22-5, the meaning set forth in
510-IC 14-22-5-1.
511-(17) For purposes of IC 14-22-8, the meaning set forth in
512-IC 14-22-8-1.
513-(18) For purposes of IC 14-22-34, the meaning set forth in
514-IC 14-22-34-2.
515-(19) For purposes of IC 14-23-3, the meaning set forth in
516-IC 14-23-3-1.
517-(20) For purposes of IC 14-25-2-4, the meaning set forth in
518-IC 14-25-2-4.
519-(21) For purposes of IC 14-25-10, the meaning set forth in
520-IC 14-25-10-1.
521-(22) For purposes of IC 14-25.5, the meaning set forth in
522-IC 14-25.5-1-3.
523-(23) For purposes of IC 14-31-2, the meaning set forth in
524-IC 14-31-2-5.
525-(24) For purposes of IC 14-25-12, the meaning set forth in
526-IC 14-25-12-1.
527-(25) For purposes of IC 14-32-8, the meaning set forth in
528-IC 14-32-8-1.
529-HB 1234—LS 7529/DI 120 13
530-(26) For purposes of IC 14-33-14, the meaning set forth in
531-IC 14-33-14-3.
532-(27) For purposes of IC 14-33-21, the meaning set forth in
533-IC 14-33-21-1.
534-(28) For purposes of IC 14-34-6-15, the meaning set forth in
535-IC 14-34-6-15.
536-(29) For purposes of IC 14-34-14, the meaning set forth in
537-IC 14-34-14-1.
538-(30) For purposes of IC 14-34-19-1.3, the meaning set forth in
539-IC 14-34-19-1.3(a).
540-(31) For purposes of IC 14-34-19-1.5, the meaning set forth in
541-IC 14-34-19-1.5(a).
542-(32) For purposes of IC 14-37-10, the meaning set forth in
543-IC 14-37-10-1.
544-(33) For purposes of IC 14-40, the meaning set forth in
545-IC 14-40-1-6.
546-SECTION 6. IC 14-8-2-154.3 IS ADDED TO THE INDIANA
547-CODE AS A NEW SECTION TO READ AS FOLLOWS
548-[EFFECTIVE JULY 1, 2025]: Sec. 154.3. "Local program", for
549-purposes of IC 14-40, has the meaning set forth in IC 14-40-1-7.
550-SECTION 7. IC 14-8-2-216 IS AMENDED TO READ AS
551-FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 216. (a) "Program", for
552-purposes of IC 14-12-3, has the meaning set forth in IC 14-12-3-4.
553-(b) "Program", for purposes of IC 14-23-6.5, has the meaning set
554-forth in IC 14-23-6.5-1.
555-(c) "Program", for purposes of IC 14-32-8, has the meaning set forth
556-in IC 14-32-8-3.
557-(d) "Program", for purposes of IC 14-40, has the meaning set
558-forth in IC 14-40-1-8.".
559-Renumber all SECTIONS consecutively.
560-and when so amended that said bill do pass.
561-(Reference is to HB 1234 as introduced.)
562-AYLESWORTH
563-Committee Vote: yeas 8, nays 2.
564-HB 1234—LS 7529/DI 120
38+1 SECTION 1. IC 14-40 IS ADDED TO THE INDIANA CODE AS
39+2 A NEW ARTICLE TO READ AS FOLLOWS [EFFECTIVE JULY 1,
40+3 2025]:
41+4 ARTICLE 40. CONSERVATION OF AGRICULTURAL LAND
42+5 Chapter 1. Definitions
43+6 Sec. 1. The definitions in this chapter apply throughout this
44+7 article.
45+8 Sec. 2. "Agricultural conservation easement" means an interest
46+9 in land, less than fee simple, that represents the right to prevent the
47+10 development or improvement of a parcel for any purpose other
48+11 than agricultural production.
49+12 Sec. 3. "Agricultural production" means the production for
50+13 commercial purposes of crops, livestock, and livestock products,
51+14 including the processing or retail marketing of such crops,
52+15 livestock, or livestock products if more than fifty percent (50%) of
53+16 such processed or marketed products are produced by the farm
54+17 operator. The term includes use of land that is devoted to and
55+2025 IN 1234—LS 7529/DI 120 2
56+1 meets the requirements of and qualifications for payments or other
57+2 compensation pursuant to a soil conservation program under an
58+3 agreement with an agency of the federal government.
59+4 Sec. 4. "Board" means the Indiana land protection board
60+5 established by IC 14-40-2-1(b).
61+6 Sec. 5. "Department of agriculture" means the Indiana state
62+7 department of agriculture established by IC 15-11-2-1.
63+8 Sec. 6. "Fund" means the agricultural conservation easement
64+9 fund established by IC 14-40-3-1.
65+10 Sec. 7. "Local program" means a local program of agricultural
66+11 land protection established by a county fiscal body under
67+12 IC 14-40-2-6.
68+13 Sec. 8. "Program" means the agricultural land protection
69+14 program established by IC 14-40-2-1(a).
70+15 Chapter 2. Agricultural Conservation Easements
71+16 Sec. 1. (a) The agricultural land protection program is
72+17 established for the purpose of conserving and protecting
73+18 agricultural viability within Indiana for the production of food and
74+19 other agricultural products. The program shall be administered by
75+20 the board in coordination with the department of agriculture.
76+21 (b) The Indiana land protection board is established. The board
77+22 consists of the following members:
78+23 (1) The director of the department of agriculture, who shall
79+24 serve as chair of the board.
80+25 (2) A representative of Indiana's largest general farm
81+26 organization.
82+27 (3) An Indiana farmland owner who is chosen by both of the
83+28 members described in subdivisions (1) and (2).
84+29 Sec. 2. (a) The board has the following duties:
85+30 (1) Administer a program for the purchase of agricultural
86+31 conservation easements by the state.
87+32 (2) Oversee, review, and coordinate with counties that choose
88+33 to implement a local program for the purchase of agricultural
89+34 conservation easements by the county.
90+35 (b) The board may perform all acts necessary or reasonably
91+36 incident to carrying out the purposes of this chapter, including the
92+37 following powers:
93+38 (1) To sue and be sued.
94+39 (2) To enter into contracts and to execute all instruments
95+40 necessary or appropriate to carry out the board's purposes.
96+41 (3) To acquire, by gift, bequest, devise, or purchase, easements
97+42 to restrict the use of agricultural land as set forth in this
98+2025 IN 1234—LS 7529/DI 120 3
99+1 chapter. Easements acquired by the board may also be held
100+2 by the department of agriculture under IC 15-11-2-3(c)(1).
101+3 (4) To take and hold, by gift, bequest, devise, or purchase, in
102+4 the name of the state, or the department of agriculture under
103+5 IC 15-11-2-3(c), real and personal property, or any interest in
104+6 real and personal property to carry out the purposes of this
105+7 chapter.
106+8 (5) To record agricultural conservation easements purchased
107+9 by the state in the office of the recorder of the county in which
108+10 the property is located.
109+11 (6) To adopt procedures, guidelines, and policies necessary to
110+12 carry out this article.
111+13 (7) To review, and accept or reject, grant requests, proposals,
112+14 and recommendations from a county fiscal body for the
113+15 purchase of an agricultural conservation easement either by
114+16 the county or the state.
115+17 (8) To make grants to counties for the purchase of
116+18 agricultural conservation easements by the county.
117+19 (9) To use money in the fund to purchase agricultural
118+20 conservation easements under this chapter.
119+21 (10) To provide information about the program to farmers
120+22 throughout Indiana.
121+23 (11) To maintain a central repository of records containing a
122+24 list and description of all agricultural land within Indiana in
123+25 which an agricultural conservation easement is imposed.
124+26 Sec. 3. Agricultural land within Indiana may qualify for the
125+27 transfer of an agricultural conservation easement upon the land
126+28 under the provisions of this chapter only if the following apply:
127+29 (1) The land is at least fifty (50) acres in size or is contiguous
128+30 to other land that is subject to an agricultural conservation
129+31 easement under this chapter.
130+32 (2) The land is owned and used for agricultural production in
131+33 accordance with all applicable agricultural and
132+34 environmental standards and regulations.
133+35 (3) At least fifty percent (50%) of the land must be harvested
134+36 cropland, pasture, or grazing land.
135+37 (4) At least fifty percent (50%) of the land must meet one (1)
136+38 of the following criteria:
137+39 (A) Contains soils that are classified under capability
138+40 classes I through IV (except class IV(e)) of the land
139+41 capability classification of the United States Department of
140+42 Agriculture, Natural Resources Conservation Service.
141+2025 IN 1234—LS 7529/DI 120 4
142+1 (B) Contains soils that are classified as "unique farmland"
143+2 under the land capability classification of the United States
144+3 Department of Agriculture, Natural Resources
145+4 Conservation Service.
146+5 Sec. 4. An agricultural conservation easement transferred as set
147+6 forth in this chapter, whether it is acquired by the state or a
148+7 county, must be subject to the following terms, conditions,
149+8 restrictions, and limitations:
150+9 (1) The agricultural conservation easement must be perpetual.
151+10 (2) If agricultural land with an agricultural conservation
152+11 easement is subject to condemnation under the power of
153+12 eminent domain, the condemnor shall provide compensation
154+13 to the owner of the land and to the owner of the agricultural
155+14 conservation easement representing at least one hundred fifty
156+15 percent (150%) of the fair market value of each respective
157+16 title.
158+17 (3) The agricultural conservation easement shall not prevent
159+18 any of the following:
160+19 (A) The granting of a right-of-way by the owner in and
161+20 through the subject land for the installation, conveyance,
162+21 transportation, or use of water, sewage, electric, telephone,
163+22 or other similar services.
164+23 (B) The construction, use, and improvement of structures
165+24 on the subject land necessary for agricultural production.
166+25 (C) The construction, use, and improvement of one (1)
167+26 family dwelling on the subject land.
168+27 Sec. 5. (a) The value and purchase price of an agricultural
169+28 conservation easement for purposes of this chapter shall be
170+29 determined under this section.
171+30 (b) The board or the county fiscal body, whichever is applicable,
172+31 shall select and retain an independent, licensed real estate
173+32 appraiser who is certified under IC 6-1.1-31.7 to determine market
174+33 value and agricultural value of the subject land. The appraiser
175+34 shall establish the agricultural value and the nonagricultural value
176+35 of the land subject to the proposed agricultural conservation
177+36 easement.
178+37 (c) The purchase price for any agricultural conservation
179+38 easement acquired under this chapter shall not exceed the
180+39 difference between the nonagricultural value and the agricultural
181+40 value of the subject land as determined at the time of purchase.
182+41 Sec. 6. (a) The fiscal body of each county may establish by
183+42 ordinance a local program of agricultural land protection for the
184+2025 IN 1234—LS 7529/DI 120 5
185+1 purpose of acquiring agricultural conservation easements by the
186+2 county. The fiscal officer of the county fiscal body shall administer
187+3 the local program.
188+4 (b) A county may acquire, under a local program, agricultural
189+5 conservation easements:
190+6 (1) in the name of the county; or
191+7 (2) that are held by the department of agriculture under
192+8 IC 15-11-2-3(c)(1);
193+9 subject to this chapter.
194+10 (c) The acquisition of an agricultural conservation easement by
195+11 a county is first subject to the approval of the board. The county
196+12 fiscal body must submit a proposal to the board for each purchase
197+13 with a description of the land and the terms of the easement. The
198+14 board shall act to approve or disapprove a proposal from a county
199+15 within sixty (60) days of its receipt. Failure of the board to act on
200+16 a proposal by a county within sixty (60) days of its receipt shall be
201+17 deemed to constitute approval of the proposal by the board.
202+18 (d) The county fiscal body may purchase an agricultural
203+19 conservation easement only after conducting a public hearing at
204+20 which all interested persons have an opportunity to be heard
205+21 concerning the purchase of the agricultural conservation easement.
206+22 (e) The fiscal officer of the county fiscal body shall record with
207+23 the county recorder's office each agricultural conservation
208+24 easement acquired by the county or held by the department of
209+25 agriculture under IC 15-11-2-3(c).
210+26 (f) The county fiscal body shall notify the board of the
211+27 acquisition of each agricultural conservation easement by the
212+28 county within thirty (30) days of the recording of the agricultural
213+29 conservation easement.
214+30 (g) In addition to the purchase of agricultural conservation
215+31 easements by the county, the county fiscal body may recommend
216+32 to the board qualifying properties the owners of which have
217+33 expressed an interest in transferring an agricultural conservation
218+34 easement to the state.
219+35 (h) The county fiscal body may use money from the general fund
220+36 of the county or any other fund of the county that is not otherwise
221+37 restricted for the purchase of agricultural conservation easements
222+38 by the county. In addition, the county fiscal body may apply to the
223+39 board for a grant, and apply for grants from federal or other
224+40 sources, for the purchase of an agricultural conservation easement
225+41 within the county. A grant request to the board must include a
226+42 description and location of the subject land, a copy of the appraisal
227+2025 IN 1234—LS 7529/DI 120 6
228+1 of the land under section 5(b) of this chapter, and the proposed
229+2 purchase price of the agricultural conservation easement.
230+3 Sec. 7. (a) One (1) or more owners of agricultural land in
231+4 Indiana may file an application with the board or a county fiscal
232+5 body requesting the purchase of an agricultural conservation
233+6 easement on the land by the state or the county, whichever is
234+7 applicable. The application must include all information deemed
235+8 necessary to evaluate the application. The board shall prescribe
236+9 and make publicly available a standard application form to be used
237+10 by owners for applications both to the board and to a county fiscal
238+11 body.
239+12 (b) The board may accept, or reject without any recourse, an
240+13 application submitted under this section.
241+14 Sec. 8. In addition to the provisions for the purchase of an
242+15 agricultural conservation easement under this article, the state or
243+16 a county, may take, receive, and acquire an agricultural
244+17 conservation easement by donation of the owner, or by bequest or
245+18 devise of a decedent, subject to the provisions in sections 3 and 4 of
246+19 this chapter. In addition, an agricultural conservation easement
247+20 may be received and held by the department of agriculture under
248+21 IC 15-11-2-3.
249+22 Sec. 9. The board shall, before October 1, 2026, and before
250+23 October 1 of each year thereafter, submit a report to the governor
251+24 and the legislative council in an electronic format under IC 5-14-6
252+25 containing a summary of the board's proceedings for the preceding
253+26 fiscal year, including a compilation of the agricultural conservation
254+27 easements acquired for the fiscal year and in total since the
255+28 establishment of the program.
256+29 Chapter 3. Agricultural Conservation Easement Fund
257+30 Sec. 1. (a) The agricultural conservation easement fund is
258+31 established to provide funding for the purchase of agricultural
259+32 conservation easements throughout Indiana. The board shall
260+33 administer the fund.
261+34 (b) The fund consists of the following:
262+35 (1) Money appropriated to the fund by the general assembly.
263+36 (2) Gifts, grants, devises, bequests, and other donations made
264+37 to the fund.
265+38 (c) Money in the fund must be used only for the purchase of
266+39 agricultural conservation easements as set forth in this article.
267+40 (d) The treasurer of state shall invest money in the fund not
268+41 currently needed to meet the obligations of the fund in the same
269+42 manner as other public money may be invested. Interest that
270+2025 IN 1234—LS 7529/DI 120 7
271+1 accrues from these investments shall be deposited in the fund.
272+2 (e) Money in the fund at the end of a state fiscal year does not
273+3 revert to the state general fund.
274+4 (f) Money in the fund is continuously appropriated for the
275+5 purposes of the fund.
276+6 SECTION 2. IC 15-11-2-3, AS AMENDED BY P.L.9-2018,
277+7 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
278+8 JULY 1, 2025]: Sec. 3. (a) As used in this section, "biomass" means
279+9 agriculturally based sources of renewable energy, including the
280+10 following:
281+11 (1) Agricultural crops.
282+12 (2) Agricultural wastes and residues.
283+13 (3) Wood and wood byproducts, including the following:
284+14 (A) Wood residue.
285+15 (B) Forest thinning.
286+16 (C) Mill residue wood.
287+17 (4) Animal wastes.
288+18 (5) Animal byproducts.
289+19 (6) Aquatic plants.
290+20 (7) Algae.
291+21 The term does not include waste from construction and demolition.
292+22 (b) The department shall do the following:
293+23 (1) Provide administrative and staff support for the following:
294+24 (A) The state fair board for purposes of carrying out the
295+25 director's duties under IC 15-13-5.
296+26 (B) The Indiana corn marketing council for purposes of
297+27 administering the duties of the director under IC 15-15-12.
298+28 (C) The Indiana dairy industry development board for
299+29 purposes of administering the duties of the director under
300+30 IC 15-18-5.
301+31 (D) The Indiana land resources council under IC 15-12-5.
302+32 (E) The Indiana grain buyers and warehouse licensing agency
303+33 under IC 26-3-7.
304+34 (F) The Indiana grain indemnity corporation under IC 26-4-3.
305+35 (G) The division.
306+36 (2) Administer the election of state fair board members under
307+37 IC 15-13-5.
308+38 (3) Administer state programs and laws promoting agricultural
309+39 trade.
310+40 (4) Administer state livestock or agriculture marketing grant
311+41 programs.
312+42 (5) Administer economic development efforts for agriculture by
313+2025 IN 1234—LS 7529/DI 120 8
314+1 doing the following:
315+2 (A) Promoting value added agricultural resources.
316+3 (B) Marketing Indiana agriculture to businesses
317+4 internationally.
318+5 (C) Assisting Indiana agricultural businesses with developing
319+6 partnerships with the Indiana economic development
320+7 corporation.
321+8 (D) Soliciting private funding for selective economic
322+9 development and trade initiatives.
323+10 (E) Providing for the orderly economic development and
324+11 growth of Indiana's agricultural economy.
325+12 (F) Facilitating the use of biomass and algae production
326+13 systems to generate renewable energy.
327+14 (6) Carry out the department's duties under IC 23-15-12.
328+15 (c) The department may do the following:
329+16 (1) Receive and hold (including as a co-holder) agricultural
330+17 conservation easements acquired by the state or a county
331+18 under IC 14-40-2.
332+19 (2) Receive and hold agricultural conservation easements
333+20 acquired by donation of the owner or by bequest or devise of
334+21 a decedent.
335+2025 IN 1234—LS 7529/DI 120