2015 Legislative Session End of Session Update

State Budget HEA 1001

• Raises the State Board of Account’s rate from $45 per day to $175 per day per examiner and allocates the increase to a new dedicated fund for the State Board of Accounts.

• Provides $51 million over the biennium for local community corrections initiatives. – Increases the appropriation for Community Corrections

Programming by $21 million over the biennium to accommodate the changes implemented by HB 1006.

– Appropriates $30 million over the biennium for the Mental Health and Addiction Forensic Treatment Services Grant program within the Family and Social Services Administration • An additional $9 million of funding is provided in SB 441.

State Budget HEA 1001

• Provides for a $1 million increase per year for the Juvenile Delinquent Alternative Initiative program.

• Provides for a $750,000 increase per year for training expenditures for probation officers.

• Appropriates $6 million per year for the Northwest Indiana Regional Development Authority to be used for the South Shore rail line extension.

• Transfers $84 million over the biennium from the Department of Revenue (DOR) tax amnesty program to the new Regional Cities Development Fund to be used for the IEDC’s Regional Cities Initiative.

Assessing Taxes SEA 436

• Requires big box stores with an effective age of 10 years or less to be assessed on the cost approach.

• Allows depreciation and obsolescence.

• Owner must provide actual construction cost.

• Limits comparable sales on all commercial non income producing properties for buildings with an effective age of less than ten years to sell within one year of the assessment date, be an arms length transaction, be used for the same or similar purpose and not have substantial deed restrictions(we want this to be changed to apply to all commercial non income regardless of age).

Assessing Taxes SEA 436 Personal Property

• Exempts from personal property owners of personal property with a purchase price of $20,000 or less for 16 PAY 17.

• A statewide $ 9 million loss in revenue for local units.

• HEA 1722 allows $50 local service replacement fee generating over $5 million.

• This is expected to eliminate 144,000 returns out of 287,700 total returns from having to pay personal property.

• Eliminates the requirement that taxpayer file in duplicate returns over $150,000.

• Requires consolidated returns, eliminating 79,000 returns.

Assessing Taxes SEA 436

• Allows counties to impose excise surtax at different rates based on class or weight.

• Defines agriculture use.

• Allows assessor to apply an influence factor on excess residential land to recognize the reduced value.

• Allows an unusable basement in a flood zone to be exempt from property taxes.

• Burden of proof is on the assessor for change in land classification and must notify taxpayer on 6-1.1-4-22.

Assessing Taxes SEA 436

• Allows auditors to pay refunds over $100,000 as a credit of up to five years.

• Assessor must attest that the taxpayer was provided their right to appeal

• Keeps agriculture assessment at $2,050 for 2015 and applies the statewide growth quotient starting in 2016.

• Allows a county council to adopt a policy requiring a person seeking a permit, zoning change, a property tax deduction/credit to complete a form indicating delinquent taxes.

Local Income Taxes HEA 1485

• Income tax “simplification”

• Provides for a transition from the county adjusted gross income tax (CAGIT), the county option income tax (COIT), the county economic development income tax (CEDIT), and the various local income taxes for special purposes and special projects to a single local income tax with three rate components.

• In 2017, creates four components for income taxes.

INPRS HEA 1466

• Permits a county to freeze/withdraw from the defined contribution plan of INPRS.

• If a county freezes/withdraws from the defined benefit plan, the county must participate in the state’s defined contribution plan.

• If a county withdraws from the defined contribution plan, the state will determine the unfunded liability for the unit.

Other Tax Bills

• HEA 1388 Eliminates assessment on the common area for type II structures, includes housing additions and townhouses, but not condominiums.

• HEA 441 Repeals the WW 1 property tax deduction for assessments after January 1, 2016.

Gaming HEA 1540

• Allows casinos to transfer operations from the boat to the foot print of the adjoining structure.

• Changes revenue for Orange County and political subdivisions in Orange County from casino.

Refunds HEA 1603

• Allows a local unit to create a property tax assessment appeals fund to use to assist the assessor on defending appeals and for refunds from property tax appeals.

• The fund shall not be considered miscellaneous revenue by the DLGF or the unit.

• Requires the assessor to send to the fiscal officer of each political unit in the county an electronic notice of pending appeals.

Assessing SEA 423

• For property under appeal, a taxpayer and a county assessor may hire an independent appraiser.

• The IBTR will select 3 Indiana appraisers, each side may strike one of the appraisers from the list.

• The taxpayer or county can appeal the value determined by the independent appraiser to the IBTR.

• Requires the PTABOA to submit annual reports on the number of hearings held each year and the determinations.

• Requires a review of the caseload of the Indiana Tax Court.

Regional Cities HEA 1403

• Establishes the regional cities initiative.

• Revenue of up to $ 84 million available from state tax amnesty program.

Annexation

– SEA 330 sets a 65% remonstrance threshold upon which an annexation petition is defeated without referral to the court system. 51%-65% remonstrance allows remonstrators to access the court system in similar manner to current law

– Remonstrance waivers are grandfathered for existing waivers, and future waivers are valid for 15 years, and requires notification to future landowners

– Infrastructure projects in the county which carry indebtedness will receive reimbursement from the annexing municipality in proportion to the amount of tax revenue lost.

Annexation, cont’d

– Prohibits a municipality from annexing land owned by a county-created redevelopment commission.

– Requires 6 notice and outreach meetings prior to annexation petition being filed by the municipality.

– Allows attorneys fees of up to $37,500 for a prevailing remonstrance.

– Exempts annexed agricultural land from municipal taxes.

– Includes a “economic development” loophole (effective 1/1/2017) eliminating the 65% threshold for court system elimination if the purpose of the annexation meets a defined purpose.

– SB 309 (Crider, Koch) also prevents municipal electric service expansion when annexation takes customers from a regional provider.

Justice Reinvestment Act

- HEA 1006 is the final piece to the years long restructuring of Indiana’s criminal justice system.

- Bill prohibits nearly all Level 6 felons from serving time in DOC, instead they will be placed in programs or jails at the county level.

- Increased funding provided in the budget will be available via grant from the DOC and DMHA, subject to guidelines.

- Establishes the Justice Reinvestment Advisory Council who will evaluate the grant processes and applications, as well as evaluate local programs.

- Sheriff will still receive per diem and medical reimbursement directly from Department of Corrections.

- Counties may not use grant money for construction or renovation of county jails or community corrections facilities.

Justice Reinvestment Act, cont’d

Purposes for which the DOC may award financial aid :

(1) assisting a county in defraying the expenses of incarceration;

(2) funding mental health, addiction, and cognitive behavior treatment programs for incarcerated persons;

(3) funding mental health, addiction, and cognitive behavior treatment programs for persons who are on probation, are supervised by a community corrections program, or are participating in a pretrial diversion program offered by a prosecuting attorney;

(4) funding work release and other community corrections programs; and

(5) reimbursing a county for probation officer and community correction officer salaries.

Inmate Medicaid Application

- HEA 1269 requires the Sheriff to assist an inmate incarcerated for 30 days or more in applying for Medicaid.

- FSSA and the County must enter into an agreement for the County to pay the state share of Medicaid, which equals 1/3 of the medical cost.

- Specifies the Sheriff as inmate’s Authorized Representative for application, but requires coordination and assistance from County Executive.

- Effective September 1, 2015.

- Sheriff may assist an inmate with enrollment if incarcerated less than 30 days.

911 System Funding

- HEA 1475 increases funding for 911 Board and distribution to Counties.

- Increases the 911 fee on contract and per-minute phones to a flat $1. - Up from $.90 on contract phones and $.50 on per-minute phones

- Decouples Public Safety LOIT from other LOIT approval.

- Up to 100% of new Public Safety LOIT money can be allocated to pay for PSAP funding. Current distribution cannot be unilaterally altered.

- Requires report to 911 Board of all funding sources for PSAP operation

- Units who are contracted with the County for PSAP operation may jointly apply to DLGF for increased levy for PSAP operation.

Telecom Permitting/Promotion

- HEA 1318 sets a process for application for permitting of telecommunications installations.

- Reiterates our current powers over planning and zoning but sets new uniform application and timelines for decision making.

- Allows “wireless service providers” access to rights-of-way, but limits the definition to entities who were already public utilities in 2009.

- HEA 1101 establishes the Broadband Ready Community program in counties and municipalities which create a streamlined process for telecom permitting.

SBOA Issues

- HEA 1104 allows SBOA to schedule audits on a risk-based criteria instead of annually. County audits will still be performed annually if required for federal fund purposes.

- SEA 393 requires that copies of units’ personnel surety bonds must be filed with SBOA, who will maintain a database on the insured. Also, provides that certain contractors must purchase surety bonds as well.

- SEA 489 requires that certain IT vendors of a local unit must provide SBOA direct access to the local units’ information electronically.

Internal Controls

– HEA 1264 establishes a requirement that local units adopt internal financial control systems.

– Also requires a training program that is to be established by State Board of Accounts.

– Training will be required for any local official for whom a public official bond is also required.

– Penalty for not adopting a policy, or not providing training, is (after opportunity to cure) DLGF may withhold budget approval.

GAAP Accounting

– HEA 1264 also establishes a requirement that local units report to SBOA using GAAP accrual accounting.

– Allows phase-in of requirement over next several years, with larger counties beginning in 2019

– Training will be required for any local official for whom a public official bond is also required.

– Penalty for not adopting a policy, or not providing training, is (after opportunity to cure) DLGF may withhold budget approval.

– Bill also requires binding County Council approval of other units’ budgets if a majority of that unit’s fiscal body is a volunteer firefighter serving the unit directly or under contract.

Assessor Qualifications

- SEA 426 requires a newly elected Assessor to be Level II certified upon taking office, instead of prior to election.

- Requires a newly elected Assessor achieve Level III certification within two years of taking office.

- Requires incumbent Assessors to achieve Level III certification to be able to run for another term in office.

- Requires a county to enact a salary structure with one salary for an Assessor with a Level II certification and an additional $1500 for a Level III certification.

- Existing bonuses are grandfathered into salary structure.

Sheriff Service of Process Fees

- SEA 217 increases the Sheriff’s Service of Process Fee from $13 to $25.

- Also allows an additional single fee to be collected for post-judgement service of process.

- An estimated $2.7 Million annually (minimum) would go into Sheriff’s Pension Trust Fund, which currently carries an unfunded liability of around $200 Million statewide.

Vacant and Abandoned Housing

- SEA 415 provides several changes to law governing vacant and abandoned property, including;

- Allows abandoned property to be sold by Treasurer if it meets definition and holds either delinquent property taxes or delinquent special assessments.

- Specifies that the county treasurer and not the county auditor is to auction abandoned or vacant property.

- Eliminates redemption after sale regarding abandoned or vacant property sold by the county treasurer.

- Creates a receivership program allowing county to disburse to certified receivers who distribute property to pre-qualified rehab providers.

- Extends the mortgage foreclosure counseling and education fee until July 1, 2017.

Tax Sales

- SEA 531 makes several changes to tax sale laws, including; - Alternative provision for transferring to a non-profit

- Treasurer may use money held in tax sale surplus fund to pay property taxes and special assessments during redemption period

- Court may consider petition for tax deed w/o a hearing if no written objection

- SEA 450 allows publishing of an abridged list for tax sale notices if properties are not sold at initial tax sale.

- SEA 524 changes several requirements in the tax sale deed, tax sale notice, and redemption statutes.

- Including alternative procedure available if multiple tax delinquencies exist on subject properties.

Common Construction Wage

– HEA 1019 – Common Construction Wage and Public Works.

• Repeals the common construction wage statute.

• Increases the small project cap for a public works project from $150,00 to $250,000. This means you can use the county workforce for these projects.

• Prohibits a public agency from establishing, mandating, or otherwise requiring a wage scale or schedule for public works projects.

• Provides stipulations on the structure of public works contracts provided by a public agency.

Motor Vehicles

– HEA 1047 – Various Motor Vehicle Matters • Authorizes the use of mini-trucks on Indiana roads other than interstate highways.

• Requires mini-trucks to be titled and registered.

• Defines “person” for the purposes of titling a vehicle to include sole proprietorships.

• Imposes an annual excise tax of $30 on mini-trucks.

Food and Beverage Taxes

– HEA 1044 – Food and Beverage Taxes • Authorizes the fiscal bodies of Rockville, Orange County and Greenwood to adopt a

food and beverage tax rate not to exceed 1%.

• Specifies the purpose for which individual taxes may be used.

• Assigns to a summer study committee the topic whether a uniform food and beverage tax should be enacted into law to allow local governments to adopt such a tax.

Roads

– HEA 1036 – Statutory Authorization to Construct Interstates • Removes statutory prohibition on construction of I-69 in Marion County’s Perry

Township.

• Language in law was put in place during the 2006 legislative session during consideration of the Major Moves law that authorized the lease of the Indiana Toll Road.

Local Government Investments

– HEA 1281 – Local Government Investments • Provides that if proceeds from the sale of a capital asset owned by a political

subdivision exceed $50 million, the fiscal body of the political subdivision may require some or all of the proceeds to be deposited into a separate fund, and authorize the proceeds to be invested in the same manner as money in the Major Moves Next Generation Trust Fund may be invested.

• Specifies that an expenditure or transfer of any money that is part of the principal of the fund may be made only if the expenditure or transfer is approved by each member of the fiscal and executive bodies.

• Provides additional provisions and limitations for how the funds of the sale of a capital asset may be spent and managed.

Building Regulations

– HEA 1300 – Ordinances Related to Building and Housing Laws • Specifies that an ordinance or other regulation adopted by a political subdivision

that qualifies as a fire safety law or building law: (1) must be submitted to the fire prevention and building safety commission for review within 30 days of adoption; and (2) is not effective until the ordinance or regulation is approved by the commission or approved automatically if the commission does not approve or deny within four commission meetings.

• Prohibits a county, municipality or township from adopting an ordinance that requires or would have the effect of requiring a landlord to participate in a Section 8 program of the federal Housing Act of 1937 or a similar program concerning housing.

Public Official Liens

– HEA 1371 – Public Officials, Liens and Restricted Addresses • Provides if a person notifies the county recorder that the person is a public official,

a common law lien that is recorded on the person’s property is automatically void after 30 days if the lienholder has not commenced suit on the lien.

• Prohibits a person from slandering the title to land by use of the law concerning common law liens.

• Requires a person who requests a circuit court clerk to send an additional mailing by registered or certified mail to provide: (1) an addressed envelope with postage prepaid; (2) the United States Postal Service forms for registered or certified mail; and (3) the United States Postal Service fee for service by registered or certified mail.

• Provides that any fees collected by the circuit court clerk for preparing a transcript or copy of a record are deposited in the clerk's records perpetuation fund (instead of the county general fund).

Trails

– HEA 1471 – Recreational Trails Guidelines • Requires the division of outdoor recreation of DNR to develop recreational trails

guidelines to address the following issues as they relate to recreational trails: (1) Clear statement of ownership and management of each trail. (2) Right-of-way inconsistencies. (3) Fence line and drainage issues. (4) Tree and brush control. (5) Weed and mowing issues. (6) Law enforcement jurisdiction issues. (7) Signage issues. (8) Conflict resolution procedures. (9) Appeal procedures. (10) Use by public utility facilities.

Local Government Issues

– HEA 1495 – Various Local Government Issues • Provides the following with regard to a permit required to move or transfer title to

a mobile home: (1) The permit must be issued by the county treasurer not later than two business days after a completed permit application is received. (2) The permit expires 90 days after the date the permit is issued.

• Requires the owner of a mobile home to obtain a new permit if the owner wishes to move, or transfer title to the mobile home after the expiration of the original permit.

• Requires the county auditor, rather than the treasurer, to give notice of tax rates in the county.

• Provides that 48 hours notice of a special meeting of the county executive must be given.

Performance Bonds

– HEA 1508 – Performance Bonds of Developers • Authorizes a unit of local government to require a land developer to obtain a

performance bond or other surety for incomplete or unfinished streets, sanitary piping, storm water piping, water mains, sidewalks and ornamental landscaping in common areas and erosion control.

• Prohibits a local unit from enforcing an ordinance requiring a land developer of a Class 1 or Class 2 structure from obtaining a performance bond before approving a secondary subdivision plat, or obtaining a maintenance bond that has an effective period of greater than three years.

Mobile Homes

– SEA 7 – Abandoned Mobile Homes • Makes changes to the procedure in current law for the sale or salvage of an

abandoned mobile home located on private property, other than mobile homes located in a mobile home community.

• Provides, except in the case of an abandoned mobile home offered for sale at auction, that the BMV may not transfer the title to a mobile home or change the names on the title to a mobile home unless the owner holds a valid permit issued by the county treasurer.

• Provides that a permit to move or transfer title to a mobile home expires 90 days after the permit is issued.

Coroner Conflict of Interest

– SEA 10 – Coroner Conflict of Interest • Requires a coroner to obtain the services of the coroner of another county if the

coroner believes that he or she has a conflict of interest.

• Provides that the coroner of the other county shall be reimbursed for all costs incurred in the case by the county in which the conflict of interest exists.

Speed Limit in School Zones

– SEA 35 – Speed Limit in School Zones • Provides that a city, town, or county may establish a speed limit of not less than 20

miles per hour on a street or highway upon which a school is located if the street or highway is under the jurisdiction of the city, town, or county.

• Current law provides that the speed limit may not be less than 30 miles per hour outside of urban districts.

• Removes outdated language.

Railroad Crossings

– SEA 27 – Obstructions at Railroad-Highway Grade Crossings • Imposes a minimum judgment of $200 for blocking a railroad-highway grade

crossing.

• Deposits funds collected as judgment in the industrial rail service fund.

• Establishes an interim study committee on the topic of blocked railroad grade crossings.

Other bills that did not pass

– HB 1008 – Straight ticket voting

– HB 1266 – Drainage board assessments

– HB 1318 – Removal of local control for telecom permitting

– HB 1405 – State Examiner, Attorney General and prosecuting attorneys

– HB 1561 – Non-contiguous annexation

– SB 249 – Removal of local control for agriculture zoning

– SB 288 – Public budget notices

– SB 427 – Distributions of public safety income tax revenue

Governor Action/Vetoed Bills

– HEA 1270 – Advance Deposit Wagering. Expanded gambling on horse races to include not only in-person bets, but also those made online.

– SEA 369 – Public Records Fees. Allowed government agencies to charge a fee of $20 an hour, for public record searches that expanded beyond 2 hours.

– No Signature

– HEA 1540 – Riverboat Casinos. Allows riverboat casinos to establish a land based facility inside their current footprint.

– SEA 252 – Horse Racing Commission. Increases the per diem of the Horse Racing Commission members and allows use of breed development funds to promote horse racing industry.

Court Fees

• HEA 1001 – The Budget – Document Storage Fees

• Document Storage Fee increased in the budget to $5 for all counties beginning July 1, 2015 and reverts back to $2 after June 30, 2017. For a county not operating under the state’s automated judicial system, $3 of the document storage fee may be used for purposes of the county’s case management system.

– Automated Record Keeping (ARK) • Provides that after June 30, 2015, and before July 1, 2017, the automated record keeping fee

collected for civil, criminal, infraction, and ordinance violation actions is $19 (other than for actions resulting in pretrial diversion or deferral, for which the fee remains at $5).

Court Fees

• SEA 2 (Service of Process; effective July 1, 2015) – Specifies that "registered or certified mail" includes any means of

delivery that provides a return receipt.

– Provides that the cost of service to not more than two parties may be paid from court fees.

– Requires a person who requests a circuit court clerk to send an additional mailing by registered or certified mail to provide: • (1) an addressed envelope with postage prepaid;

• (2) the United States Postal Service or other forms for registered or certified mail

• (3) the United States Postal Service fee or other fee for service by registered or certified mail.

Court Issues

• HEA 1110 (Magistrates & Courts) – Allows the following counties to appoint an additional magistrate: Clark, Greene,

Madison, Marion (4 magistrates to superior court after 12/31/15), Porter, Vanderburgh, St. Joseph (1 magistrate to circuit court, 2 magistrates to superior court)

– Removes the Sullivan County full-time magistrate as of July 1, 2016. – Urges the topic of the appropriate number of judges in Pulaski County be assigned

to summer study committee.

• HEA 1141 (Judgment Dockets; Effective July 1, 2015) – Specifies that the clerk: (1) shall keep a judgment docket for the circuit court and

for each superior court and probate court served by the clerk; and (2) is the official keeper of the judgment docket. Provides that a judgment docket may not include judgments in which the state, a county, or another governmental entity is the sole creditor, except for: (1) cases in which the state obtains a judgment for unpaid taxes; or (2) any entry that is required by statute.

Court Issues

• HEA 1302 (Expungement) – Specifies who may file for a petition for expungement and specifies a procedure for

expunging pre-1977 convictions. – Those charges that did not lead to a conviction or a juvenile delinquency

adjudication do not require a filing fee, but a petition for expungement of a conviction is required to pay the filing fee required in civil cases.

– Grants access to expunged records to the BMV and certain federal agencies in compliance with commercial drivers licenses laws.

• HEA 1131 (Exemption of Military Reservists from Jury Duty; Effective July 1, 2015) – Provides that an individual who serves on reserve duty in the armed forces or the

Indiana National Guard while on military orders is exempt from jury duty.

Elections

• HEA 1139 (Various Election Law Matters) – Provides that the procedure for removing election inspectors and judges also applies to poll clerks,

assistant poll clerks, and election sheriffs. Exempts protected residence addresses from the requirement to publish the address of each primary election candidate.

– Makes technical changes related to: (1) filing statements of economic interests; (2) updating voter registration information; (3) transmitting absentee ballots; (4) appointment of absentee voter boards; (5) filling candidate vacancies; (6) transmission of voter registration applications; (7) public questions; and (8) certification of special election results.

– Repeals a provision that makes it a crime to knowingly or intentionally display campaign materials advocating the election or defeat of a candidate or the approval or defeat of a public question on a government employer's real property during regular working hours.

• HEA 1140 (Precinct Election Officers; Effective July 1, 2015) – Provides that a county election board, by unanimous vote, may provide that one individual may

serve as inspector for more than one precinct located at the same polling place.

Elections

• SEA 59 (Eligibility to Vote for Political Party Officers) – Provides that an individual who will meet the age and residency requirements on

the date of the next general, municipal, or special election may vote for precinct committeeman and state convention delegate elected at a primary election.

• SEA 522 (Serious Sex Offenders; Effective July 1, 2015) – Provides that a serious sex offender is entitled to vote by mail. Requires the

department of correction to inform a serious sex offender at the time of discharge from the department: (1) that a serious sex offender who knowingly or intentionally enters school property commits unlawful entry by a serious sex offender, a Level 6 felony; and (2) of voting options for the serious sex offender.

Elections

• SEA 466 (Various Election Matters) – Provides that a person who is physically present in a precinct for a temporary purpose

does not gain residency in the precinct. Adds clarifying language concerning where a student attending college may register to vote.

– Allows cell phone use in the polls as long as loud and disruptive conversations and electioneering do not occur. Prohibits a voter from taking a photo of the voter's ballot except to document and report to a precinct election officer, county election board, or the division a problem with the functioning of the voting system. Prohibits distributing or sharing a digital photograph of a voter's ballot using social media or other means.

– Provides that if a deceased candidate receives the most votes in a primary election, a candidate vacancy occurs and the candidate's party may fill the ballot vacancy.

– Makes various clarifications to state party conventions.

– Requires certain information to be filed with the election division concerning judicial elections in Allen County, Monroe County, and Vanderburgh County.

Elections

• Continued SEA 466 (Various Election Matters) – Allows funds collected for campaign finance violations to be used for any election related

purpose.

– Allows a challenge of a candidate’s eligibility to be filed by either a county chairman of a major political party in which any part of the election district the candidate seeks to represent is located or a registered voter of the election district the candidate seeks to represent.

– Increases maximum precinct population size from 1,200 to 2,000.

– Allows any absentee voter to submit absentee application by email.

– Lengthens the available time for travel board voting from 12 to 19 days prior to Election Day.

– Allows the use of electronic poll-books either at all voting locations or only at absentee locations as determined by the county election board.

– Requires the election board to conduct an additional public test if there is a ballot error.

– Requires the public test of election equipment to be conducted prior to the start of in-person absentee voting in the Clerk’s Office (an increase by 2 weeks).

Upcoming Deadlines and Events

• AIC Factbook Surveys DUE ON MAY 29. (Auditors)

• Local Government Cooperation Award June 12

• County Achievement Award June 12

• Himsel Award June 12

• AIC / Nationwide Retirement Solutions Scholarship June 12

• AIC / SRI Scholarship June 12

• AIC Conference September 21-24