SB 1-1_ Filed 11/21/2003, 09:48
COMMITTEE REPORT
MR. PRESIDENT:
The Senate Committee on Finance, to which was referred Senate Bill No. 1, 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:
SOURCE: Page 13, line 34; (04)CR000101.13. -->
Page 13, line 34, delete "is" and insert " should be".
Page 15, line 4, delete "committee" and insert " commission".
Page 21, line 39, strike "IC 6-1.1-9." and insert " IC 6-1.1-13.".
Page 29, delete lines 19 through 42, begin a new paragraph and
insert:
SOURCE: IC 6-1.1-18.5-1; (04)CR000101.19. -->
"SECTION 19. IC 6-1.1-18.5-1, AS AMENDED BY P.L.198-2001,
SECTION 51, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 1. As used in this chapter:
"Ad valorem property tax levy for an ensuing calendar year" means
the total property taxes imposed by a civil taxing unit for current
property taxes collectible in that ensuing calendar year.
"Adopting county" means any county in which the county adjusted
gross income tax is in effect.
"Civil taxing unit" means any taxing unit except a school corporation.
"Maximum permissible ad valorem property tax levy for the
preceding calendar year" means the greater of:
(1) the civil taxing unit's maximum permissible ad valorem
property tax levy for the calendar year immediately preceding the
ensuing calendar year, as that levy was determined under section
3 of this chapter; or
(2) the civil taxing unit's ad valorem property tax levy for the
calendar year immediately preceding the ensuing calendar year, as
that levy was determined by the department of local government
finance in fixing the civil taxing unit's budget, levy, and rate for
that preceding calendar year under IC 6-1.1-17.
"Taxable property" means all tangible property that is subject to the
tax imposed by this article and is not exempt from the tax under
IC 6-1.1-10 or any other law. For purposes of sections 2 and 3 of this
chapter, the term "taxable property" is further defined in section 6 of
this chapter.
"Unadjusted assessed value" means the assessed value of a civil
taxing unit as determined by local assessing officials and the department
of local government finance in a particular calendar year before the
application of an annual adjustment under IC 6-1.1-4-4.5 for that
particular calendar year or any calendar year since the last general
reassessment preceding the particular calendar year.".
SOURCE: Page 30, line 1; (04)CR000101.30. -->
Page 30, delete lines 1 through 17.
Page 38, delete lines 36 through 42.
Page 39, delete lines 1 through 30.
Page 46, between lines 20 and 21, begin a new paragraph and insert:
SOURCE: IC 6-1.1-20-3.1; (04)CR000101.27. -->
"SECTION 27. IC 6-1.1-20-3.1, AS AMENDED BY P.L.178-2002,
SECTION 31, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
MARCH 1, 2004]: Sec. 3.1. A political subdivision may not impose
property taxes to pay debt service or lease rentals without completing
the following procedures:
(1) The proper officers of a political subdivision shall:
(A) publish notice in accordance with IC 5-3-1; and
(B) send notice by first class mail to any organization that
delivers to the officers, before January 1 of that year, an annual
written request for such notices;
of any meeting to consider adoption of a resolution or an
ordinance making a preliminary determination to issue bonds or
enter into a lease and shall conduct a public hearing on a
preliminary determination before adoption of the resolution or
ordinance.
(2) When the proper officers of a political subdivision make a
preliminary determination to issue bonds or enter into a lease, the
officers shall give notice of the preliminary determination by:
(A) publication in accordance with IC 5-3-1; and
(B) first class mail to the organizations described in subdivision
(1)(B).
(3) A notice under subdivision (2) of the preliminary determination
of the political subdivision to issue bonds or enter into a lease must
include the following information:
(A) The maximum term of the bonds or lease.
(B) The maximum principal amount of the bonds or the
maximum lease rental for the lease.
(C) The estimated interest rates that will be paid and the total
interest costs associated with the bonds or lease.
(D) The purpose of the bonds or lease.
(E) A statement that any owners of real property within the
political subdivision who want to initiate a petition and
remonstrance process against the proposed debt service or
lease payments must file a petition that complies with
subdivisions (4) and (5) not later than thirty (30) days after
publication in accordance with IC 5-3-1.
(F) With respect to bonds issued or a lease entered into to
open:
(i) a new school facility; or
(ii) an existing facility that has not been used for at least
three (3) years and that is being reopened to provide
additional classroom space;
the estimated costs the school corporation expects to incur
annually to operate the facility.
(G) A statement of whether the school corporation expects to
appeal as described in IC 6-1.1-19-4.4(a)(4) for an increased
adjusted base levy to pay the estimated costs described in
clause (F).
(4) After notice is given, a petition requesting the application of a
petition and remonstrance process may be filed by the lesser of:
(A) two one hundred fifty (250) (100) owners of real property
within the political subdivision; or
(B) ten five percent (10%) (5%) of the owners of real
property within the political subdivision.
(5)
The state board of accounts shall design and, upon
request by the county auditor, deliver to the county auditor
or the county auditor's designated printer the petition forms
to be used solely in the petition process described in this
section. The county auditor shall issue to an owner or owners
of real property within the political subdivision the number
of petition forms requested by the owner or owners. Each
form must be accompanied by instructions detailing the
requirements that:
(A) the carrier and signers must be owners of real
property;
(B) the carrier must be a signatory on at least one (1)
petition;
(C) after the signatures have been collected, the carrier
must swear or affirm before a notary public that the
carrier witnessed each signature; and
(D) govern the closing date for the petition period.
Persons requesting forms may not be required to identify
themselves and may be allowed to pick up additional copies
to distribute to other property owners.
(6) Each petition must be verified under oath by at least one (1)
qualified petitioner in a manner prescribed by the state board of
accounts before the petition is filed with the county auditor under
subdivision
(6). (7).
(6) (7) Each petition must be filed with the county auditor not
more than thirty (30) days after publication under subdivision (2)
of the notice of the preliminary determination.
(7) (8) The county auditor must file a certificate and each petition
with:
(A) the township trustee, if the political subdivision is a
township, who shall present the petition or petitions to the
township board; or
(B) the body that has the authority to authorize the issuance of
the bonds or the execution of a lease, if the political subdivision
is not a township;
within fifteen (15) business days of the filing of the petition
requesting a petition and remonstrance process. The certificate
must state the number of petitioners that are owners of real
property within the political subdivision.
If a sufficient petition requesting a petition and remonstrance process
is not filed by owners of real property as set forth in this section, the
political subdivision may issue bonds or enter into a lease by following
the provisions of law relating to the bonds to be issued or lease to be
entered into.
SOURCE: IC 6-1.1-20-3.2; (04)CR000101.28. -->
SECTION 28. IC 6-1.1-20-3.2, AS AMENDED BY P.L.178-2002,
SECTION 32, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
MARCH 1, 2004]: Sec. 3.2. If a sufficient petition requesting the
application of a petition and remonstrance process has been filed as set
forth in section 3.1 of this chapter, a political subdivision may not
impose property taxes to pay debt service or lease rentals without
completing the following procedures:
(1) The proper officers of the political subdivision shall give notice
of the applicability of the petition and remonstrance process by:
(A) publication in accordance with IC 5-3-1; and
(B) first class mail to the organizations described in section
3.1(1)(B) of this chapter.
A notice under this subdivision must include a statement that any
owners of real property within the political subdivision who want
to petition in favor of or remonstrate against the proposed debt
service or lease payments must file petitions and remonstrances in
compliance with subdivisions (2) through (4) not earlier than thirty
(30) days or later than sixty (60) days after publication in
accordance with IC 5-3-1.
(2) Not earlier than thirty (30) days or later than sixty (60) days
after the notice under subdivision (1) is given:
(A) petitions (described in subdivision (3)) in favor of the
bonds or lease; and
(B) remonstrances (described in subdivision (3)) against the
bonds or lease;
may be filed by an owner or owners of real property within the
political subdivision. Each signature on a petition must be dated
and the date of signature may not be before the date on which the
petition and remonstrance forms may be issued under subdivision
(3). A petition described in clause (A) or a remonstrance described
in clause (B) must be verified in compliance with subdivision (4)
before the petition or remonstrance is filed with the county auditor
under subdivision (4).
(3) The state board of accounts shall design and, upon request by
the county auditor, deliver to the county auditor or the county
auditor's designated printer the petition and remonstrance forms
to be used solely in the petition and remonstrance process
described in this section. The county auditor shall issue to an
owner or owners of real property within the political subdivision
the number of petition or remonstrance forms requested by the
owner or owners. Each form must be accompanied by
instructions detailing the requirements that:
(A) the carrier and signers must be owners of real property;
(B) the carrier must be a signatory on at least one (1) petition;
(C) after the signatures have been collected, the carrier must
swear or affirm before a notary public that the carrier
witnessed each signature; and
(D) govern the closing date for the petition and remonstrance
period; and
(E) apply to the carrier under section 10 of this chapter.
Persons requesting forms may not be required to identify
themselves and may be allowed to pick up additional copies to
distribute to other property owners. The county auditor may not
issue a petition or remonstrance form earlier than twenty-nine (29)
days after the notice is given under subdivision (1). The county
auditor shall certify the date of issuance on each petition or
remonstrance form that is distributed under this subdivision.
(4) The petitions and remonstrances must be verified in the
manner prescribed by the state board of accounts and filed with
the county auditor within the sixty (60) day period described in
subdivision (2) in the manner set forth in section 3.1 of this
chapter relating to requests for a petition and remonstrance
process.
(5) The county auditor must file a certificate and the petition or
remonstrance with the body of the political subdivision charged
with issuing bonds or entering into leases within fifteen (15)
business days of the filing of a petition or remonstrance under
subdivision (4), whichever applies, containing ten thousand
(10,000) signatures or less. The county auditor may take an
additional five (5) days to review and certify the petition or
remonstrance for each additional five thousand (5,000) signatures
up to a maximum of sixty (60) days. The certificate must state the
number of petitioners and remonstrators that are owners of real
property within the political subdivision.
(6) If a greater number of owners of real property within the
political subdivision sign a remonstrance than the number that
signed a petition, the bonds petitioned for may not be issued or the
lease petitioned for may not be entered into. The proper officers
of the political subdivision may not make a preliminary
determination to issue bonds or enter into a lease for the controlled
project defeated by the petition and remonstrance process under
this section or any other controlled project that is not substantially
different within one (1) year after the date of the county auditor's
certificate under subdivision (5). Withdrawal of a petition carries
the same consequences as a defeat of the petition.
(7) After a political subdivision has gone through the petition and
remonstrance process set forth in this section, the political
subdivision is not required to follow any other remonstrance or
objection procedures under any other law (including section 5 of
this chapter) relating to bonds or leases designed to protect
owners of real property within the political subdivision from the
imposition of property taxes to pay debt service or lease rentals.
However, the political subdivision must still receive the approval
of the department of local government finance required by
IC 6-1.1-18.5-8 or IC 6-1.1-19-8.
SOURCE: IC 6-1.1-20-10; (04)CR000101.29. -->
SECTION 29. IC 6-1.1-20-10 IS ADDED TO THE INDIANA
CODE AS A
NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
MARCH 1, 2004]:
Sec. 10. (a) If a petition and remonstrance
process is commenced under section 3.2 of this chapter, during the
sixty (60) day period commencing with the notice under section
3.2(1) of this chapter, the political subdivision seeking to issue
bonds or enter into a lease for the proposed controlled project may
not promote a position on the petition or remonstrance by doing
any of the following:
(1) Allowing facilities owned by the political subdivision to be
used for public relations purposes to promote a position on
the petition or remonstrance, unless equal access to the
facilities is given to persons with a position opposite to that
of the political subdivision.
(2) Making an expenditure of money from a fund controlled
by the political subdivision to promote a position on the
petition or remonstrance (except as necessary to explain the
project to the public) or to pay for the gathering of signatures
on a petition or remonstrance. This subdivision does not
prohibit a political subdivision from making an expenditure
of money to an attorney, an architect, a construction
manager, or a financial adviser for professional services
provided with respect to a controlled project.
(3) Using an employee to promote a position on the petition
or remonstrance during the employee's normal working
hours or paid overtime.
However, this section does not prohibit an employee of the
political subdivision from carrying out duties with respect to a
petition or remonstrance that are part of the normal and regular
conduct of the employee's office or agency.
(b) A person may not solicit or collect signatures for a petition
or remonstrance on property owned or controlled by the political
subdivision.".
SOURCE: Page 55, line 31; (04)CR000101.55. -->
Page 55, line 31, delete "this provisional statement is sent to" and
insert " ________ County (insert county) has".
Page 55, line 32, delete "property owners in a county that".
Page 55, line 36, delete "of _______ County (insert county)".
Page 58, line 32, after "supplement the" delete "other".
Page 58, line 33, delete "article" and insert " chapter".
Page 93, line 38, after "IC 6-1.1-12-9" insert " , as amended by this
act".
Page 96, between lines 16 and 17, begin a new paragraph and insert:
SOURCE: ; (04)CR000101.62. -->
"SECTION 62. [EFFECTIVE UPON PASSAGE]
IC 6-1.1-18.5-1,
as amended by this act, applies to property taxes first due and
payable after December 31, 2003.".
SOURCE: Page 98, line 6; (04)CR000101.98. -->
Page 98, line 6, delete "homeowner in ________ County" and insert
" 2004 property tax bill for homeowners in _______ County would
be approximately _______ percent (___%) greater.".".
Page 98, delete lines 7 through 8.
Page 99, delete lines 7 through 11, begin a new paragraph and insert:
SOURCE: ; (04)CR000101.72. -->
"SECTION 72. [EFFECTIVE UPON PASSAGE]
(a) The
commission on state tax and financing policy established under
IC 2-5-3 shall study:
(1) the elimination of property taxes as a source of funding
for local government services other than:
(A) police and fire protection; and
(B) public health purposes; and
(2) alternative sources of revenue that might be used to
replace the property taxes described in subdivision (1).
The commission shall complete its study not later than December
31, 2005.
(b) This SECTION expires July 1, 2006.".
Renumber all SECTIONS consecutively.
(Reference is to SB 1 as introduced.)
and when so amended that said bill do pass.
Committee Vote: Yeas 13, Nays 1.
____________________________________
Borst
CR000101/DI 44 2004