February 5, 2010

IAA successfully defeated HB1118, the onerouse nuisance building bill. We lobbied against it because it would give community organizations broad powers to bring action against properties they consider a nuisance. IAA organized a coalition of organizations including the Indiana Bankers Association, Indiana Association of Realtors, Indiana Chamber of Commerce, Indiana Builders Association, Indiana Mortgage Bankers Association, Indiana Petroleum Council, Indiana Energy Association, and Indiana Manufacturer’s Association, to oppose this legislation.

At this time, all bills that passed on third reading are being assigned to a committee in the opposite chamber. IAA will continue to monitor and lobby several bills including:

House

HB1073 - Termination of Residential Leases
Author: Rep. Craig Fry, D-Mishawaka
Summary: Provides that a tenant leasing a dwelling may terminate a lease agreement if the tenant is the victim of certain crimes committed in the tenant's unit. Provides that the lease may be terminated through procedures established under the statute providing for court issuance of emergency possessory orders for residential rental units. Establishes the criteria for the court to consider for termination of the tenant's lease agreement. 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.
Action: This bill, with IAA's amendment that would allow for termination of the lease if the court decided so under the emergency possessory statute, passed the House.
IAA Opinion: We are not opposed to this bill as long as our amendment is in there. Rep. Fry is not in favor of this amendment and we will lobby the Senate to make sure the amendment remains.

HB1240 - Various insurance matters
Author: Rep. Craig Fry, D-Mishawaka
Summary: Rep. Fry has amended the original language of HB1073 (Termination of Leases) into this bill.
Action: This bill is now in the Senate.
IAA Opinion: IAA is opposed to this bill with the original language of HB1073 added. We expect that language to be stripped out of the bill in the Senate because termination of a lease is not germaine to the bill.

HJR0001 - Circuit breakers and other property tax matters
Author: Rep. William Crawford, D-Indianapolis
Summary: This is the 3-2-1 property tax cap legislation that would put a referendum on the ballot to make the tax caps permanent in the state constitution.
Action: This is now awaiting the governor's signature. It will be on the November ballot.
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: IAA will attempt to amend it into a Senate bill that is now in the House.
IAA Opinion: This bill 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.

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.

Senate

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: Passed out of Senate and has been assigned to the Public Health Committee in the House.
IAA Opinion: IAA testified in the Senate 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."

SB239 - Tax matters
Author: Sen. Brandt Hershman, R-Monticello
Summary: Deletes the statute requiring a general reassessment to begin in 2010. Requires the county assessor of each county to prepare and submit to the department of local government finance (DLGF) a reassessment plan for the county. This would create rolling assessments.
Action: Passed out of the Senate.
IAA Opinion: IAA is working in the House to clarify the definition of homestead for assessment purposes to insure the entire area of the multifamily property is included at the 2% cap, not just the building and footprint, which seems to be the practice of some assessors in some counties.

Dead Bills

HB1118 - Nuisance actions by community organizations
HB1316 - Use of engineered lumber
HB1015 - Limit on real property assessment increases
HB1179 - Mechanics Liens
SB0028 - Limit on property tax assessed value increases