January 18, 2010

IAA is working with State Lawmakers on many bills that have been introduced for this short session of the Indiana General Assembly. Some of the bills include:

House

HJR0001 - Circuit breakers and other property tax matters
Author: Rep. William Crawford, D-Indianapolis
Summary: Circuit breakers and other property tax matters. Requires,for property taxes first due and payable in 2012 and thereafter, the general assembly to limit a taxpayer's property tax liability as follows: (1) A taxpayer's property tax liability on homestead property may not exceed 1% of the gross assessed value of the homestead property. (2)A taxpayer's property tax liability on other residential property may not exceed 2% of the gross assessed value of the other residential property. (3) A taxpayer's property tax liability on agricultural land may not exceed 2% of the gross assessed value of the property that is the basis for the determination of the agricultural land. (4) A taxpayer's property tax liability on other real property may not exceed 3% of the gross assessed value of the other real property. (5) A taxpayer's property tax liability on personal property may not exceed 3% of the gross assessed value of the taxpayer's personal property that is the basis for the determination of property taxes within particular taxing district.
Action: The House passed the bill and it was assigned to the Senate Tax and Fiscal Policy Committee, where it also passed. Is awaiting action from full Senate.
IAA Opinion: IAA has supported property tax caps and has testified at all committee meetings.

HB1214 - Regulation of residential landlords/tenants
Author: Rep. Terri Jo Austin, D-Anderson
Summary: Imposes certain procedural requirements on the adoption by a political subdivision of a regulation of landlord and tenant relations, residential leases, or inspection of real property subject to a residential lease. Provides that such a regulation may not: (1) require the licensing or registration of owners of residential rental property; or (2) impose a fee for certain inspections. Provides that such a regulation may not authorize investigation or inspection of a rental unit without probable cause.
Action: Assigned to House Judiciary Committee. No hearing has been set.
IAA Opinion: This bill was filed on behalf of IAA and is our answer to the onerous rental inspection ordinances that continue to crop up across the state. As municipalities continue to have to trim their budgets, we are finding that more are instituting inspection and registration ordinances to prop up their budgets. Our desire is to create revenue streams at the expense of renters.

HB1316 - Use of engineered lumber
Author: Rep. Nancy Ann Michael, D-Greencastle
Summary: Requires the fire prevention and building safety commission to adopt rules creating requirements governing: (1) the design of a placard that identifies engineered lumber and the location in the structure; and (2) the location of the placard. Requires a city, town, or county (unit) to issue placards. Provides that a building permit may not be issued unless the applicant is issued a placard from the unit. It would require an owner to maintain a placard affixed to the structure for the life of the structure. Allows a unit to adopt an ordinance regulating the installation and maintenance of placards on structures and providing a civil penalty, if the ordinance does not conflict with state law. Prior to the bill being filed, IAA met with the bill's author to discuss where the placards should be placed. The bill now reads that it should be permanently affixed below the structure's electrical meter. If the structure does not have electrical service, then the placard would be placed on the left side of the front entrance four to six feet above ground.
Action: This bill has been assigned to the Local Government Committee.
IAA Opinion: IAA will continue to monitor this legislation.

HB1073 - Termination of Residential Leases
Author: Rep. Craig Fry, D-Mishawaka
Summary: Termination of residential leases. Provides that a tenant leasing a dwelling may terminate a lease agreement if the tenant is the victim of certain crimes, including burglary, residential entry, and criminal trespass committed at the dwelling. Requires the tenant to provide, in the tenant's notice of termination to the landlord, a certified copy of a police report filed in connection with the alleged offense committed against the tenant.
Action: This bill currently resides in the House Public Policy Committee. The bill is also known as "Sheena's Law." The bill is named for Sheena Kiska, who was murdered in her apartment in Bristol. Reports indicate that her apartment had been burglarized the month before and she had requested that the management company let her out of her lease. She was not allowed out of her lease and was subsequently killed a month later by an intruder. The case is unsolved and no arrests have been made.
IAA Opinion: IAA testified this week on the matter. This is a very delicate matter and a sensitive issue and we are working with legislators to find a workable solution. As proposed, the bill has many flaws and is of great concern to our membership.

HB1118 - Nuisance actions by community organizations
Author: Rep. John Day, D-Indianapolis
Summary: Allows a community organization within whose specific geographic boundaries a nuisance exists to bring an action under the laws governing: (1) general nuisance actions; (2) actions for indecent nuisances; and (3) actions for drug nuisances; as applicable. Makes the drug nuisance law consistent with the indecent nuisance law by adding the attorney general to the list of prosecuting officials that may bring an action under the drug nuisance law.
Action: Passed the House Courts and Criminal Code Committe, 9-3.
IAA Opinion: John Hamilton represented IAA at the hearing Wednesday afternoon raising several reasons why IAA is opposed to this piece of troubling legislation. One of our biggest quesitons, which was also raised by lawmakers on the committee, is why such an ordinance is needed when people can already file suit against nuisance properties. If made into law, this could put a target on apartment communities across the state if members of a community organization or a homeowners' association decide that neighboring apartments are impeding on their ability to enjoy their property. This bill allows community organizations to file action against a property owner without putting up a bond to pay for legal expenses. Day filed the bill on behalf of Sheila Jenkins, executive director of the Community Development Law Center, which has concerns about blocks and blocks of dilapidated buildings on the eastside of Indianapolis.
Call to Action: We are asking people to call their lawmakers and tell them this is a bad bill because it is creating yet another layer of bureaucracy on an issue where there is already a law in place to ward off nuisance properties. You can go to www.iaaonline.net and click on Legislative Action Center and contact the members of the House or call (800) 382-9842.

HB1015 - Limit on real property assessment increases
Author: Rep. Greg Steuerwald, R-Danville
Summary: Limits the annual increase in the gross assessed value of real property to 10% unless the increase results from a factor that would have increased the assessed value even if neither an annual assessment adjustment nor a general assessment applied.
Action: Assigned to House Ways and Means Committee.
IAA Opinion: IAA will continue to monitor this bill.

HB1004 - Property taxes
Author: Rep. Dale Grubb, D-Covington
Summary: Changes the formula for assessing agricultural land. Limits the property tax bill for real property based on the consumer price index. Exempts taxes imposed after being approved by the voters in a referendum or local public question and taxes payable in the first year after certaintransfers of title. Makes annual adjustments (trending) biannual.
Action: Passed the House, 82-13.
IAA Opinion: IAA supports this bill, but because of the fiscal impact of the bill in its present form, it has an uncertain future in the Senate.

HB1086 - Property taxes
Author: Rep. Peggy Welch, D-Bloomington
Summary: In this lengthy bill addressing several different property tax matters, it also corrects references to the definition of homestead, removes references to obsolete administrative rules related to inventory, and makes other technical changes property tax laws.
Action: This bill has been assigned to the Rules and Legislative Procedures committee.
IAA Opinion: IAA supports this bill.

Senate

SJR0001 - Circuit breakers and other property tax matters
Author: Sen. Luke Kenley, R-Noblesville
Summary: Requires, for property taxes first due and payable in 2012 and thereafter, the general assembly to limit a taxpayer's property tax liability as follows: (1) A taxpayer's property tax liability on homestead property may not exceed 1% of the gross assessed value of the homestead property. (2) A taxpayer's property tax liability on other residential property may not exceed 2% of the gross assessed value of the other residential property. (3) A taxpayer's property tax liability on agricultural land may not exceed 2% of the gross assessed value of the property that is the basis for the determination of the agricultural land. (4) A taxpayer's property tax liability on other real property may not exceed 3% of the gross assessed value of the other real property. (5) A taxpayer's property tax liability on personal property may not exceed 3% of the gross assessed value of the taxpayer's personal property that is the basis for the determination of property taxes within a particular taxing district.
Action: Passed the Senate, 35-15. Will be assigned to a committee in the House.
IAA Opinion: IAA supports this bill along with HJR0001.

SB0175 - Various health issues
Author: Sen. Patricia Miller, R-Indianapolis
Summary: Among other issues, this bill would require the state department to establish a lead-based paint poisoning prevention program concerning renovations performed for compensation in target housing and child-occupied facilities.
Action: Assigned to Senate Health and Provider Services Committee.
IAA Opinion: IAA testified and the bill was amended to read: "The state department's program must be as protective as, but not more protective than, the federal regulations under 40 CFR Par 745, Subparts E and L."

SB0028 - Limit on property tax assessed value increases
Author: Sen. Connie Lawson, R-Danville
Summary: Limits the annual increase in the gross assessed value of real property to 10% unless the increase results from a factor that would have increased the assessed value even if neither an annual assessment adjustment nor a general assessment applied.
Action: Assigned to Senate Tax and Fiscal Policy Committee.
IAA Opinion: IAA will continue to monitor this bill.