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Bill Watch, Jan. 23, 2018: Current Real Estate & Land Use Legislation of Note - Real Estate and Land Use News

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Real Estate and Land Use News


Posted on: Jan 23, 2018

The IndyBar Legislative Committee is currently monitoring the following real estate & land use related legislation. IndyBar members can request that the Legislative Committee track specific legislation by contacting committee chair Lawren Mills at lawren.mills@icemiller.com.

Click here to view the full Bill Watch reports.

HB1015    UNLAWFUL INDEMNITY AGREEMENTS. (TORR J) Provides that the law concerning indemnity agreements in construction or design contracts applies to certain design-build contracts. Specifies that a provision in a professional services contract that requires indemnification and defense of a promisee for certain liability is void.

HB1048    TAX CREDITS. (LEHMAN M) Establishes the regional development tax credit (credit). Allows a taxpayer to apply to the Indiana economic development corporation (IEDC) for the credit. Provides that a taxpayer is entitled to a credit against state tax liability if: (1) the taxpayer makes a qualified investment for the redevelopment or rehabilitation of real property that is vacant or underused; and (2) the qualified investment is approved by the IEDC. Specifies the factors that the IEDC shall consider in evaluating applications for a proposed qualified investment. Specifies that the credit is subject to an agreement entered into by the IEDC and the taxpayer. Provides that the amount of the credit is equal to: (1) the qualified investment made by the taxpayer and approved by the IEDC in the agreement; multiplied by (2) the applicable credit percentage determined by the IEDC. Specifies the maximum applicable credit percentages that apply to qualified investments. Prohibits the carryback or refund of any unused credit. Allows a taxpayer to carry forward any unused credit amounts and to assign any part of a credit to which the taxpayer is entitled. Authorizes the IEDC to negotiate with a taxpayer and include in the credit agreement a return on investment provision requiring the taxpayer to repay all or part of a credit awarded to the taxpayer if one or more conditions specified in the agreement are satisfied. Provides that a taxpayer is not entitled to receive any of the following (with certain exceptions): (1) An industrial recovery tax credit for a qualified investment made after December 31, 2018. (2) A community revitalization enhancement district tax credit for a qualified investment made after December 31, 2018.

HB1120    STATE DEPARTMENT OF HEALTH MATTERS. (KIRCHHOFER C) Changes references to "methamphetamine laboratory" to "contaminating controlled substance". Requires a law enforcement agency to report to the department of child services if a child is found at a site used for the illegal manufacture, use, or disposal of a contaminating controlled substance. Authorizes the state department of health (state department) instead of the Indiana department of environmental management (department) to certify qualified inspectors and oversee the decontamination of a site that has been used in the illegal manufacture, use, or disposal of a contaminating controlled substance. Specifies the responsibilities and procedure a property owner must complete regarding the decontamination and notice concerning a site that has been used in the illegal manufacture, use, or disposal of a contaminating controlled substance. Transfers from the department to the state department powers, duties, records, property, and rules concerning decontamination of a site that has been contaminated by a contaminating controlled substance. Requires a local board of health or health officer that issues an order to vacate a dwelling to record the order and any subsequent revocation of the order with the county recorder at no cost. Repeals the postnatal donation initiative. Makes conforming amendments.

HB1225    WIND POWER DEVICES. (SAUNDERS T) Provides that a county official or a relative of a county official who has entered into an agreement for a lease, an easement, or another agreement with a developer (a person that seeks to obtain a right to locate a wind power device on real property or a person that seeks to locate a wind power device on real property in which the person owns an interest) concerning a wind power device shall recuse himself or herself from any matter that involves the ownership, operation, construction, or location of a wind power device in the county. Prohibits a county official or a relative of a county official who is subject to this recusal requirement from participating in a meeting in another county where a proposed wind power device is the subject of discussion. Establishes criteria that a developer must meet to record a lease, an easement, or another agreement for a wind power device. Requires the county recorder to: (1) publish and mail to each owner whose real property is located within two miles of the real property that is the proposed location of a proposed wind power device, notice that includes: (A) a copy of the county's wind energy conversion system ordinance, if applicable; (B) a copy of the developer's registration statement, if any; and (C) the name and contact information of a county official to contact with questions about the proposed wind farm development; and (2) send an invoice to the developer of the county recorder's costs to comply with the notification requirements. Provides that a developer shall reimburse the county recorder for the county recorder's costs to comply with the notification requirements. Requires a developer to file with the circuit court clerk a registration statement that provides: (1) contact information for the developer; (2) contact information for any agent, representative, or employee that is working or will work for the developer; (3) the identity of each county official the developer has contacted or plans to contact; and (4) a list of proceedings held by the county at which the developer has participated or plans to participate. Imposes a penalty on a developer if the developer fails to file a registration statement with the clerk.

SB163    DISTRIBUTIONS FROM ESCROW ACCOUNTS. (MESSMER M) Repeals a requirement that any funds that: (1) exceed $10,000 and are disbursed from an escrow account in connection with a real estate transaction; and (2) are received from a single party to the transaction; must be wired good funds. Makes a conforming amendment.

SB351   APPRAISAL MANAGEMENT COMPANIES. (KRUSE D) Provides that an appraisal management company that engages a real estate appraiser to perform an appraisal shall pay the real estate appraiser for the appraisal not later than: (1) the payment date or due date set forth in: (A) the contract or agreement between the appraisal management company and the real estate appraiser; or (B) the real estate appraiser's invoice, if such a contract or agreement: (i) does not exist; or (ii) exists but does not specify a payment date; or (2) 30 days after the delivery of the appraisal report to the appraisal management company if a contract, an agreement, or an invoice: (A) does not exist with respect to the appraisal; or (B) exists but does not specify a payment date. Specifies exceptions to an appraisal management company's obligation to pay at the required times, in the case of the following: (1) A breach of the contract between the appraisal management company and the real estate appraiser. (2) The inclusion in the appraisal report of significant and material documented errors. (3) The failure of the real estate appraiser's scope of work to meet or exceed: (A) the expectations of parties in similar assignments; and (B) what the actions of the real estate appraiser's peers would be in similar assignments. Provides that an appraisal management company may not prohibit a real estate appraiser from including in an appraisal report the real estate appraiser's fee amount for preparing the appraisal. Requires an appraisal management company that qualifies as an appraisal management company under federal law to pay to the real estate appraiser licensure and certification board (board) the annual AMC registry fee, as established by the Appraisal Subcommittee of the Federal Financial Institutions Examination Council (Appraisal Subcommittee). Sets forth the formula for determining the amount of the fee. Requires the board to transmit the AMC registry fees collected to the Appraisal Subcommittee on an annual basis. Authorizes the real estate commission to adopt and amend rules to implement these provisions and to conform the AMC registry fee imposed by the board with the AMC registry fee established by the Appraisal Subcommittee. Makes a technical change.

SB422   LAND BANKS. (BECKER V) Revises the land bank statute. Provides that in a county that has established a county land bank the county treasurer shall establish a county land bank fund for the purpose of accumulating money for distribution to the county land bank. Provides that a county fiscal body may adopt an ordinance to allocate to the county land bank an amount or percentage of the county's share of any penalties and interest on delinquent tax payments that is distributed to the county from the semiannual distribution made by the county auditor. Increases the fee charged for filing a sales disclosure form. Provides that in a county that has established a county land bank, part of the revenue received from fees charged for filing a sales disclosure form and any associated penalties shall be deposited in the county land bank fund. Reinstates the mortgage foreclosure counseling and education fee (expired July 1, 2017) to be collected as a civil cost in all mortgage foreclosure actions. Enacts a blight fee to be collected as a civil cost in all mortgage foreclosure actions. Enacts a supplemental tax deed petition fee to be collected as a civil cost in all petitions for issuance of a tax deed. Provides that redevelopment commissions and land banks are not required to pay recording fees or other fees charged by county recorders. Shortens the time limit for claiming a refund of excess property taxes paid by a taxpayer from three years to two years. Provides that unclaimed property tax refunds shall be deposited into the county land bank fund in a county that has established a land bank and a county land bank fund. Increases the penalties for delinquent property taxes in those counties that have established a county land bank. Emphasizes that the statute requiring execution of a residential real estate sales disclosure form does not apply to transfers of residential real property to or from a redevelopment commission or a land bank. Provides that the usual procedures for disposal of real property by a political subdivision do not apply to the disposal of property by a land bank. Provides that an enforcement authority may, upon determination that a vacant structure or an abandoned structure exists, inform the executive of the county, city, or town with which the enforcement authority is associated that the property is a candidate for inclusion on the executive's list of vacant or abandoned properties that are eligible for tax sale. Revises the statute concerning the determination by a court or hearing authority that real property is abandoned.

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