February 20, 2004
HOUSE BILL No. 1218
DIGEST OF HB 1218
(Updated February 18, 2004 4:17 pm - DI 106)
Citations Affected: IC 36-9.
Synopsis: Barrett Law assessment collection deferment. Adds sanitary
sewers as an improvement that may be financed by a municipality by
use of the Barrett Law. For purposes of the Barrett Law applicable to
municipalities, allows a municipal fiscal officer and municipal works
board to establish procedures allowing the municipality to defer
collection of a special assessment that is in default by preserving the
assessment as a lien upon the property subject to the assessment.
Requires the collection of the preserved lien: (1) when ownership of
the property is transferred; and (2) before the final bond maturity date.
Provides that deferred assessments are treated similarly to delinquent
property taxes. (Under current law, an assessment in default must be
collected through: (1) payment in full; (2) foreclosure on the property;
or (3) a conveyance in satisfaction of the assessment.) Makes a
Effective: July 1, 2004.
(SENATE SPONSORS _ GARD, BREAUX)
January 15, 2004, read first time and referred to Committee on Local Government.
January 29, 2004, reported _ Do Pass.
February 4, 2004, read second time, amended, ordered engrossed.
February 5, 2004, engrossed. Read third time, passed. Yeas 93, nays 0.
February 10, 2004, read first time and referred to Committee on Judiciary.
February 19, 2004, amended, reported favorably _ Do Pass.
February 20, 2004
Second Regular Session 113th General Assembly (2004)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
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Additions: Whenever a new statutory provision is being enacted (or a new constitutional
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between statutes enacted by the 2003 Regular Session of the General Assembly.
HOUSE BILL No. 1218
A BILL FOR AN ACT to amend the Indiana Code concerning local
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 36-9-37-11; (04)EH1218.1.1. -->
SECTION 1. IC 36-9-37-11, AS AMENDED BY P.L.62-2001,
SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2004]: Sec. 11.
(a) If a municipal works board orders any of
the following improvements and assessments are imposed after June
30, 2001, to pay for the improvements or to repay bonds issued under
this chapter after June 30, 2001, each owner of property assessed for
that improvement may elect to pay the owner's assessment in
installments with interest as described in section 8.5(a) of this chapter:
(3) Other paved public places.
(5) For municipalities that own and operate a water utility, water
main extensions from the water utility.
(6) Sanitary sewers.
SOURCE: IC 36-9-37-19; (04)EH1218.1.2. -->
SECTION 2. IC 36-9-37-19 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 19. (a) If a person
defaults in the payment of a waivered installment of principal or
interest of an assessment, the municipal fiscal officer shall mail notice
of the default to the person. The notice must meet the following
(1) Be mailed not more than sixty (60) days after the default.
(2) Show the amount of the default, plus interest on that amount
six (6) months the number of months the person is in
default at one-half (1/2) the rate prescribed by IC 6-1.1-37-10.
(3) State that the amount of the default, plus interest, is due by the
following May 10 or November 10 after the notice is mailed. date
determined as follows:
(A) If the person selected monthly installments under
IC 36-9-37-8.5(a)(1), within sixty (60) days after the date
the notice is mailed.
(B) If the person selected annual installments under
IC 36-9-37-8.5(a)(2), within six (6) months after the date
the notice is mailed.
(b) A notice that is mailed to the person in whose name the property
is assessed and addressed to the person within the municipality is
sufficient notice. However, the fiscal officer shall also attempt to
determine the name and address of the current owner of the property
and send a similar notice to the current owner.
(c) Failure to send the notice required by this section does not
preclude or otherwise affect the following:
(1) The sale of the property for delinquency as prescribed by
(2) The foreclosure of the assessment lien by the bondholder.
(3) The preservation of the assessment lien under section 22.5
of this chapter.
SOURCE: IC 36-9-37-22; (04)EH1218.1.3. -->
SECTION 3. IC 36-9-37-22 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 22. Except as
provided in section 22.5 of this chapter, the following apply if at least
one (1) installment of an assessment is in default:
(1) The total amount of the assessment that remains unpaid is
considered to be in default.
(2) The assessed property is subject to sale under sections 23
through 24 of this chapter to pay that amount.
(3) The assessment is subject to the:
(A) requirements and duties imposed;
(B) rights and remedies provided; and
(C) procedures available to the county treasurer;
for the collection of delinquent property taxes.
SOURCE: IC 36-9-37-22.5; (04)EH1218.1.4. -->
SECTION 4. IC 36-9-37-22.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2004]: Sec. 22.5. (a) The municipal fiscal
officer and the municipal works board may jointly establish
procedures allowing a municipality to avoid a sale, on property
that is not delinquent for property taxes, penalties, and other
special assessments, that:
(1) is required under section 22 of this chapter; and
(2) would be conducted under IC 6-1.1-24;
by preserving an assessment that is in default as a lien against the
property on which the assessment was imposed. A lien created
under this section applies to the total assessment principal, interest,
and penalties owed by the property owner on the date on which the
municipality determines that the assessment is in default.
(b) Except as provided in subsection (c), an assessment
preserved as a lien under this section shall be paid by the person
liable for the assessment when ownership of the property is
(c) The following apply to an assessment preserved as a lien
under this section:
(1) Additional penalties do not accrue to the lien after the date
described in subsection (a).
(2) The procedures established under subsection (a) must
specify when additional interest shall accrue to the lien after
the date described in subsection (a).
(3) The lien must be recorded.
(4) The amount owed by the property owner must be paid by
the person liable for the assessment before the final bond
(d) When the person liable pays an assessment preserved as a
lien under this section, the proceeds of the collection are subject to
the same requirements as the proceeds of a sale conducted under
section 24 of this chapter.
SOURCE: IC 36-9-37-25; (04)EH1218.1.5. -->
SECTION 5. IC 36-9-37-25 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 25. (a) To avoid a
foreclosure action on a special assessment, a municipality may:
(1) defer collection of the assessment under section 22.5 of this
accept a conveyance in satisfaction of the assessment from the
owner of the assessed property.
(b) If there are bondholders other than the municipality holding
bonds on the improvement for which the assessment was made, the
municipality may do any of the following:
(1) Join with the other bondholders in accepting a conveyance of
an undivided interest in the property.
(2) Cause a conveyance of the property to be made to a bank or
trust company in the municipality and held under a trust
agreement by the bank or trust company for the use and benefit of
the municipality and the other bondholders.
(c) A conveyance under this section may be accepted by the
municipality only if the head of the municipal legal department makes
a written recommendation to the city executive or town legislative body
that the conveyance be accepted.