HB 1174-1_ Filed 03/31/2011, 11:38

COMMITTEE REPORT

MADAM PRESIDENT:

    The Senate Committee on Local Government, to which was referred House Bill No. 1174, 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:

    Page 1, strike line 13.

SOURCE: Page 1, line 13.
    Page; (11)CR117402.1. -->     Page 2, line 32, strike "appraised value" and insert " average of the two (2) appraisals".
    Page 3, between lines 19 and 20, begin a new paragraph and insert:
SOURCE: IC 36-1-11-4.2; (11)CR117402.2. -->     "SECTION 2. IC 36-1-11-4.2 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 4.2. (a) This section applies to a disposing agent who wants to sell or transfer real property not acquired through eminent domain procedures for any of the following purposes:
        (1) To promote an economic development project.
        (2) To facilitate compatible land use planning.
    (b) The disposing agent shall first have the property appraised by two (2) appraisers. The appraisers must be:
        (1) professionally engaged in making appraisals;
        (2) licensed under IC 25-34.1; or
        (3) employees of the political subdivision familiar with the value of the property.
The appraisers shall make a joint appraisal of the property.
    (c) Subject to subsection (d), the disposing agent may:
        (1) negotiate a sale or transfer; and
        (2) dispose of the real property;
at a value that is not less than the appraised value determined average of the two (2) appraisals under subsection (b).
     (d) The disposing agent may dispose of the real property for a value that is not less than the average of the two (2) appraisals under subsection (b) only after publishing a notice in accordance with IC 5-3-1 stating the amount of the offer to be accepted. The disposing agent may reject all offers. If the disposing agent rejects all offers, the disposing agent must make a written determination to reject all offers explaining why all offers were rejected.
SOURCE: IC 36-1-11-4.3; (11)CR117402.3. -->     SECTION 3. IC 36-1-11-4.3 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 4.3. Notwithstanding any provision of this chapter, a sale or transfer under this chapter of property constituting a public easement or right of way does not deprive a public utility of the use of all or part of the public easement or right of way that is sold or transferred if, at the time of the sale or transfer, the public utility is occupying and using all or part of that public easement or right of way for the location and operation of its facilities.".
SOURCE: Page 3, line 35; (11)CR117402.3. -->     Page 3, line 35, delete "apply:" and insert " applies:".
    Page 5, after line 14, begin a new paragraph and insert:
SOURCE: IC 36-1-11-10; (11)CR117402.5. -->     "SECTION 5. IC 36-1-11-10 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 10. (a) A disposing agent may lease property rather than sell, transfer, or exchange it under this chapter only if the disposing agent determines that a lease rather than a sale, transfer, or exchange would be in the best interest of the disposing agent's political subdivision or agency and the public. Except as provided in section 12 of this chapter, the disposing agent must proceed under this section in leasing property.
    (b) The disposing agent shall first have the property appraised in the manner prescribed in section 4(b) of this chapter, except that the appraisers shall determine the fair market rental value of the property.
    (c) The disposing agent shall receive bids in the manner prescribed in section 4 of this chapter and lease the property to the highest and best bidder. However, the disposing agent may lease the property for less than ninety percent (90%) of the appraised fair market rental value only after having an additional notice of the lease published in

accordance with section 4(c) of this chapter. The disposing agent may reject all bids. If the disposing agent rejects all bids, the disposing agent must make a written determination to reject all bids explaining why all bids were rejected.
    (d) The disposing agent shall determine the terms and conditions of any lease under this section, which may include options to renew and options to purchase. The property may not be leased to a person who is ineligible under section 16 of this chapter.
    (e) The terms of a lease with option to purchase may provide that all or part of the rental payments under the lease apply to the purchase price. The purchase price must be equal to at least the minimum sale price determined under section 4(f) of this chapter.
    (f) Property owned by a political subdivision or agency may be leased for a term longer than three (3) years if the lease is approved by the fiscal body of the political subdivision.
     (g) The disposing agent may lease the real property under this section for a value that is less than ninety percent (90%) of the appraised fair market rental value as determined by the average of the two (2) appraisals under section 4(b) of this chapter only after publishing an additional notice in accordance with IC 5-3-1, stating the amount of the bid to be accepted. If the disposing agent rejects all bids, the disposing agent must make a written determination to reject all bids explaining why all bids were rejected.".
    Renumber all SECTIONS consecutively.
    (Reference is to HB 1174 as reprinted February 15, 2011.)

and when so amended that said bill do pass.

Committee Vote: Yeas 6, Nays 0.

____________________________________

    Lawson C
Chairperson


CR117402/DI 87    2011