Enrolled House Bill (H)

Authored by

DIGEST

Referendum and remonstrance process. Increases the threshold used for purposes of determining whether a capital project is a controlled project as follows: (1) In the case of an ordinance or resolution adopted after December 31, 2017, and before January 1, 2019, making a preliminary determination to issue bonds or to enter into a lease for the project, the threshold is increased from $2,000,000 to $5,000,000. (2) In the case of an ordinance or resolution adopted after December 31, 2018, making a preliminary determination to issue bonds or enter into a lease for the project, the threshold is increased by applying Referendum and remonstrance process. Increases the threshold used for purposes of determining whether a capital project is a controlled project as follows: (1) In the case of an ordinance or resolution adopted after December 31, 2017, and before January 1, 2019, making a preliminary determination to issue bonds or to enter into a lease for the project, the threshold is increased from $2,000,000 to $5,000,000. (2) In the case of an ordinance or resolution adopted after December 31, 2018, making a preliminary determination to issue bonds or enter into a lease for the project, the threshold is increased by applying the assessed value growth quotient for the year to the threshold amount determined for the preceding year. Specifies that a capital project is also a controlled project if the cost of the project will exceed: (1) 1% of the total gross assessed value of property within the political subdivision, if that total gross assessed value is more than $100,000,000; or (2) $1,000,000, if the total gross assessed value of property within the political subdivision is not more than $100,000,000. Increases the thresholds used for applying the petition and remonstrance process and referendum process as follows: (1) In the case of an ordinance or resolution adopted after December 31, 2017, and before January 1, 2019, making a preliminary determination to issue bonds or to enter into a lease for the project, the threshold is increased from $10,000,000 to $15,000,000 for school building projects and from $12,000,000 to $15,000,000 for any civil unit project. (2) In the case of an ordinance or resolution adopted after December 31, 2018, making a preliminary determination to issue bonds or enter into a lease for the project, the threshold is increased by applying the assessed value growth quotient for the year to the threshold amount determined for the preceding year. Provides that a school building project is also subject to the referendum process if the cost of the project will exceed: (1) 1% of the total gross assessed value of property within the political subdivision, if that total gross assessed value is more than $1,000,000,000; or (2) $10,000,000, if the total gross assessed value of property within the political subdivision is not more than $1,000,000,000. Provides that a civil unit project is also subject to the referendum process if the cost of the project will exceed: (1) 1% of the total gross assessed value of property within the political subdivision, if that total gross assessed value is more than $100,000,000; or (2) $1,000,000, if the total gross assessed value of property within the political subdivision is not more than $100,000,000. Provides that a controlled project for which a political subdivision makes a preliminary determination to issue bonds or enter into a lease is subject to the referendum process if the sum of: (1) the cost of that controlled project; plus (2) the costs of all other controlled projects for which the political subdivision has previously adopted within the preceding 365 days an ordinance or resolution making a preliminary determination to issue bonds or enter into a lease for those other controlled projects; exceeds $25,000,000. Requires that a political subdivision's notice of the preliminary determination to issue bonds or enter into a lease for a controlled project must also include information concerning the estimated amount of the political subdivision's debt service levy and rate that will result during the following 10 years if the political subdivision issues the bonds or enters into the lease, after also considering any changes that will occur to the debt service levy and rate during that period on account of any outstanding bonds or lease obligations that will mature or terminate. Provides that a petition objecting that a political subdivision has divided a controlled project in order to avoid the requirements of the petition and remonstrance process or the referendum process must be filed with the department of local government finance (DLGF) not more than 10 days after the political subdivision gives notice of the political subdivision's determination to issue bonds or enter into leases for the capital project. Specifies that if the DLGF determines that a political subdivision divided a controlled project in order to avoid the referendum requirements and the political subdivision continues to desire to proceed with the project, the political subdivision may appeal the determination of the DLGF to the Indiana board of tax review. Specifies that a political subdivision shall be considered to have divided a capital project in order to avoid the requirements of the petition and remonstrance process or the referendum process if the result of one or more of the subprojects cannot reasonably be considered an independently desirable end in itself without reference to another capital project. Relocates existing law concerning calculation of the cost of certain projects by a school corporation career and technical education school to a separate section within the controlled projects statute. Requires a political subdivision to: (1) conduct at least two public hearings on a preliminary determination concerning a controlled project (rather than one hearing under current law); and (2) make certain information available to the public at each of the public hearings. Provides that if a referendum for a controlled project or for a school operating referendum fund property tax levy is defeated, another referendum may not be held earlier than 700 days after the date of the first referendum (rather than 350 days under current law). Specifies that the 350 day limit applies if a sufficient petition requesting that limit is submitted by property owners or voters. Provides that a school corporation operating referendum fund property tax levy may not be imposed for more than eight years. (Current law provides that the referendum levy may not be imposed for more than seven years.) Applies to a referendum that takes place after June 30, 2017. ... View more