Reprinted
January 12, 2010
HOUSE BILL No. 1077
_____
DIGEST OF HB 1077
(Updated January 11, 2010 4:08 pm - DI 92)
Citations Affected: IC 36-7.
Synopsis: Sales tax increment finance. Authorizes an economic
development project district (district) in Warrick County. Provides that
the authority for Warrick County expires if the state board of finance
(board) fails to approve a district before January 1, 2015. Requires a
resolution establishing a district in Warrick County to be ratified by the
county fiscal body and board of county commissioners Provides that if
a district is approved by the board, the district must be approved by
ordinance by the county fiscal body. Provides that a district designated
for Warrick County expires if bonds are not issued before January 1,
2015, to finance a local public improvement project in the district.
Increases the maximum term of bonds and leases for a district from 20
to 25 years. Specifies the permitted uses of the sales tax increment that
may be captured within the Warrick County district. Exempts a district
in Warrick County from a statute that: (1) requires tax increment
financing to be maximized in a community before the board may
approve a proposed district; and (2) prohibits certain property tax
abatements in districts. Prohibits the deposit of state gross and retail
use taxes in the sales tax increment financing fund with respect to a
particular district after December 31 of the calendar year in which the
board determines that no obligations to finance a local public
improvement in the district remain outstanding.
Effective: July 1, 2010.
Stilwell, Avery, Riecken, Crouch
January 5, 2010, read first time and referred to Committee on Ways and Means.
January 7, 2010, reported _ Do Pass.
January 11, 2010, read second time, amended, ordered engrossed.
Reprinted
January 12, 2010
Second Regular Session 116th General Assembly (2010)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
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HOUSE BILL No. 1077
A BILL FOR AN ACT to amend the Indiana Code concerning
economic development.
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 36-7-26-1; (10)HB1077.2.1. -->
SECTION 1. IC 36-7-26-1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2010]: Sec. 1. This chapter applies
to the following:
(1) A city having a population of more than seventy-five thousand
(75,000) but less than ninety thousand (90,000).
(2) A city having a population of more than one hundred five
thousand (105,000) but less than one hundred twenty thousand
(120,000).
(3) A city having a population of more than one hundred fifty
thousand (150,000) but less than five hundred thousand
(500,000).
(4) A city having a population of more than one hundred twenty
thousand (120,000) but less than one hundred fifty thousand
(150,000).
(5) Warrick County.
SOURCE: IC 36-7-26-1.5; (10)HB1077.2.2. -->
SECTION 2. IC 36-7-26-1.5 IS ADDED TO THE INDIANA CODE
AS A
NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2010]: Sec. 1.5. Notwithstanding any other provision of this
chapter, the following apply to a county described in section 1(5)
of this chapter:
(1) The authority to establish a district in the county expires
on January 1, 2015, if the board fails to approve a resolution
designating a district in the county before January 1, 2015.
(2) A district designated in the county expires on January 1,
2015, if the commission fails to issue bonds to finance a local
public improvement project in the district before January 1,
2015.
SOURCE: IC 36-7-26-2; (10)HB1077.2.3. -->
SECTION 3. IC 36-7-26-2 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2010]: Sec. 2. (a) Present economic
conditions in certain areas of certain cities are stagnant or deteriorating.
(b) Present economic conditions in such areas are beyond remedy
and control by existing regulatory processes because of the substantial
public financial commitments necessary to encourage significant
increases in economic activities in such areas.
(c) Economic development of certain reclaimed coal land near
the Blue Grass Fish and Wildlife Area and Interstate Highway 164
is vital for a county described in section 1(5) of this chapter.
(c) (d) Encouraging economic development in these areas will:
(1) attract new businesses and encourage existing business to
remain or expand;
(2) increase temporary and permanent employment opportunities
and private sector investment;
(3) protect and increase state and local tax bases; and
(4) encourage overall economic growth in Indiana.
(d) (e) Redevelopment and stimulation of economic development
benefit the health and welfare of the people of Indiana, are public uses
and purposes for which the public money may be spent, and are of
public utility and benefit.
(e) (f) Economic development in such areas can be accomplished
only by a coordinated effort of local and state governments.
(f) (g) This chapter shall be liberally construed to carry out the
purposes of this chapter and to provide the county described in
section 1(5) of this chapter and cities with maximum flexibility to
accomplish those purposes.
SOURCE: IC 36-7-26-11; (10)HB1077.2.4. -->
SECTION 4. IC 36-7-26-11 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2010]: Sec. 11. As used in this
chapter, "local public improvement" means any redevelopment project
or purpose of a commission, a county described in section 1(5) of this
chapter, or any city under:
(1) this chapter; or
(2) IC 36-7-14;
(3) IC 36-7-14.5; or
(4) IC 36-7-25.
SOURCE: IC 36-7-26-14; (10)HB1077.2.5. -->
SECTION 5. IC 36-7-26-14, AS AMENDED BY P.L.185-2005,
SECTION 51, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2010]: Sec. 14. (a) Whenever a commission determines that
the redevelopment and economic development of an area situated
within the commission's jurisdiction may require the establishment of
a district, the commission shall cause to be assembled data sufficient
to make the determinations required under section 15 of this chapter,
including the following:
(1) Maps and plats showing the boundaries of the proposed
district.
(2) A complete list of street names and the range of street
numbers of each street situated in the proposed district.
(3) A plan for the redevelopment and economic development of
the proposed district. The plan must describe the local public
improvements necessary or appropriate for the redevelopment or
economic development.
(b) For a city described in section 1(2) or 1(3) of this chapter, the
proposed district must contain a commercial retail facility with at least
five hundred thousand (500,000) square feet, and any distributions
from the fund must be used in the area described in subsection (a) or
in areas that directly benefit the area described in subsection (a).
(c) For a city described in section 1(4) of this chapter, the proposed
district may not contain any territory outside the boundaries of a
redevelopment project area established within the central business
district of the city before 1985.
(d) For a county described in section 1(5) of this chapter, the
proposed district must:
(1) be located in whole or in part on reclaimed coal land near
the Blue Grass Fish and Wildlife Area and Interstate
Highway 164; and
(2) adjoin the northernmost boundary of the Blue Grass Fish
and Wildlife Area.
SOURCE: IC 36-7-26-16; (10)HB1077.2.6. -->
SECTION 6. IC 36-7-26-16 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2010]: Sec. 16. (a)
This subsection
does not apply to a county described in section 1(5) of this chapter.
Upon adoption of a resolution designating a district under section 15
of this chapter, the commission shall submit the resolution to the board
for approval. In submitting the resolution to the board, the commission
shall deliver to the board:
(1) the data required under section 14 of this chapter;
(2) the information concerning the proposed redevelopment and
economic development of the proposed district; and
(3) the proposed utilization of the revenues to be received under
section 23 of this chapter.
This information may be modified from time to time after the initial
submission. The commission shall provide to the board any additional
information that the board may request from time to time.
(b) This subsection applies only to a county described in section
1(5) of this chapter. Upon adoption of a resolution designating a
district under section 15 of this chapter, the commission shall
submit the resolution to the county fiscal body and the county
executive for ratification and then shall submit the resolution to the
board for approval. In submitting the resolution to the board, the
commission shall deliver to the board:
(1) the data required under section 14 of this chapter;
(2) the information concerning the proposed redevelopment
and economic development of the proposed district; and
(3) the proposed use of the revenues to be received under
section 23 of this chapter.
This information may be modified periodically after the initial
submission. The commission shall provide to the board any
additional information that the board requests.
(b) (c) Upon adoption of a resolution designating a district under
section 15 of this chapter, and upon approval of the resolution by the
board under subsection (a), the commission shall publish (in
accordance with IC 5-3-1) notice of the adoption and purport purpose
of the resolution and of the hearing to be held. The notice must provide
a general description of the boundaries of the district and state that
information concerning the district can be inspected at the
commission's office. The notice must also contain a date when the
commission will hold a hearing to receive and hear remonstrances and
other testimony from persons interested in or affected by the
establishment of the district. All affected persons, including all persons
or entities owning property or doing business in the district, shall be
considered notified of the pendency of the hearing and of subsequent
acts, hearings, adjournments, and resolutions of the commission by the
notice given under this section.
(d) The approval of the board under subsection (b) is final and
conclusive.
SOURCE: IC 36-7-26-20; (10)HB1077.2.7. -->
SECTION 7. IC 36-7-26-20 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2010]: Sec. 20. (a) This subsection
does not apply to a county described in section 1(5) of this chapter.
The determination of the commission to create a district under this
chapter, after approval by the board, must be approved by ordinance of
the legislative body of the city.
(b) This subsection applies only to a county described in section
1(5) of this chapter. The determination of the commission to create
a district under this chapter, after approval by the board, must be
approved by ordinance of the fiscal body of the county.
SOURCE: IC 36-7-26-24; (10)HB1077.2.8. -->
SECTION 8. IC 36-7-26-24 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2010]: Sec. 24. (a) The commission
may issue bonds, payable in whole or in part, from money distributed
from the fund to the commission, to finance a local public improvement
under IC 36-7-14-25.1 or may make lease rental payments for a local
public improvement under IC 36-7-14-25.2 and IC 36-7-14-25.3. The
term of any bonds issued under this section may not exceed
twenty (20)
twenty-five (25) years, nor may the term of any lease agreement
entered into under this section exceed
twenty (20) twenty-five (25)
years
after the date the local public improvement is available for
use. The commission shall transmit to the board a transcript of the
proceedings with respect to the issuance of the bonds or the execution
and delivery of a lease agreement as contemplated by this section. The
transcript must include a debt service or lease rental schedule setting
forth all payments required in connection with the bonds or the lease
rentals.
(b) On January 15 of each year, the commission shall remit to the
treasurer of state the money disbursed from the fund that is credited to
the net increment account that exceeds the amount needed to pay debt
service or lease rentals and to establish and maintain a debt service
reserve under this chapter in the prior year and before May 31 of that
year. Amounts remitted under this subsection shall be deposited by the
auditor of state as other gross retail and use taxes are deposited.
(c) The commission in a city described in section 1(2) of this
chapter may distribute money from the fund only for the following:
(1) Road, interchange, and right-of-way improvements.
(2) Acquisition costs of a commercial retail facility and for real
property acquisition costs in furtherance of the road, interchange,
and right-of-way improvements.
(3) Demolition of commercial property and any related expenses
incurred before or after the demolition of the commercial
property.
(4) For physical improvements or alterations of property that
enhance the commercial viability of the district.
(d) The commission in a city described in section 1(3) of this
chapter may distribute money from the fund only for the following
purposes:
(1) For road, interchange, and right-of-way improvements and for
real property acquisition costs in furtherance of the road,
interchange, and right-of-way improvements.
(2) For the demolition of commercial property and any related
expenses incurred before or after the demolition of the
commercial property.
(e) The commission in a city described in section 1(4) of this
chapter may distribute money from the fund only for the following
purposes:
(1) For:
(A) the acquisition, demolition, and renovation of property;
and
(B) site preparation and financing;
related to the development of housing in the district.
(2) For physical improvements or alterations of property that
enhance the commercial viability of the district.
(f) The commission in a county described in section 1(5) of this
chapter may distribute money from the fund for the following
district project costs associated with the development or
redevelopment of the district:
(1) The total cost of acquisition of all land, rights-of-way, and
other property to be acquired, developed, or redeveloped for
the project.
(2) Site preparation, including utilities and infrastructure.
(3) Costs associated with the construction or establishment of
a museum and education complex and a multisport athletic
complex that are owned or leased by:
(A) the county described in section 1(5) of this chapter;
(B) the commission;
(C) an authority (as defined in IC 36-7-14.5-2);
(D) a leasing body (as defined in IC 5-1-1-1); or
(E) one (1) or more entities that are exempt from income
taxation under Section 501(c)(3) of the Internal Revenue
Code.
(4) Road, interchange, and right-of-way improvements.
(5) Public parking facilities.
(6) All reasonable and necessary architectural, engineering,
legal, financing, accounting, advertising, bond discount, and
supervisory expenses related to the acquisition and
development or redevelopment of the property or the issuance
of bonds.
(7) For any bonds issued by an entity to which money from
the fund may be pledged under subsection (a), debt service,
lease payments, capitalized interest, or debt service reserve
for the bonds to the extent the commission determines that a
reserve is reasonably required.
SOURCE: IC 36-7-26-24.5; (10)HB1077.2.9. -->
SECTION 9. IC 36-7-26-24.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2010]: Sec. 24.5. Notwithstanding section 23
of this chapter, state gross retail and use taxes may not be
deposited in the fund with respect to a particular district after
December 31 of the calendar year in which the board determines
that no obligations of the commission incurred under this chapter
to finance a local public improvement in the district remain
outstanding.
SOURCE: IC 36-7-26-25; (10)HB1077.2.10. -->
SECTION 10. IC 36-7-26-25, AS AMENDED BY P.L.146-2008,
SECTION 769, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2010]: Sec. 25. (a) This section does not apply
to a county described in section 1(5) of this chapter.
(b) The board may not approve a resolution under section 16 of this
chapter until the board has satisfied itself that the city in which the
proposed district will be established has maximized the use of tax
increment financing under IC 36-7-14 or IC 36-7-14.5 to finance public
improvements within or serving the proposed district. The city may not
grant property tax abatements to the taxpayers within the proposed
district or a district, except that the board may approve a resolution
under section 16 of this chapter in the proposed district or a district in
which real property tax abatement not to exceed three (3) years has
been granted.
SOURCE: IC 36-7-26-28; (10)HB1077.2.11. -->
SECTION 11. IC 36-7-26-28 IS ADDED TO THE INDIANA
CODE AS A
NEW CHAPTER TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2010]:
Sec. 28. A county described in section
1(5) of this chapter is unique because:
(1) it is the location of:
(A) surface coal mining operations;
(B) strip mined land currently in the process of
reclamation; and
(C) the Blue Grass Fish and Wildlife Area;
all of which are in close proximity to Interstate Highway 164;
and
(2) the county has been presented with an opportunity to:
(A) improve the quality of life in the county;
(B) provide educational and recreational opportunities to
residents of the county and the state; and
(C) promote tourism in the county and the state.