Shown verbatim: the complete text as captured from the official PDF posted by the Indiana General Assembly, fetched 2026-09-25. Page and line markers are part of the official record; nothing is edited or removed. This is the current version. The official bill page.
First Regular Session of the 124th General Assembly (2025)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in this style type. Also, the
word NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
between statutes enacted by the 2024 Regular Session of the General Assembly.
HOUSE ENROLLED ACT No. 1142
AN ACT to amend the Indiana Code concerning taxation.
Be it enacted by the General Assembly of the State of Indiana:
SECTION 1. IC 4-12-1-20, AS AMENDED BY HEA 1001-2025,
SECTION 48, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 20. (a) As used in this section, "fund" refers to the
Pokagon Band Tribal-state compact fund established by subsection (c).
(b) As used in this section, "Tribal-state compact" refers to the
compact between the state and the Pokagon Band of Potawatomi
Indians pursuant to IC 4-29.
(c) The Pokagon Band Tribal-state compact fund is established for
the purposes set forth in subsection (f). The fund shall be administered
by the budget agency. The fund consists of the following:
(1) Money transferred to the fund as a result of the Tribal-state
compact.
(2) Appropriations, if any, made by the general assembly.
(3) Grants and gifts intended for deposit in the fund.
(4) Any earnings on money in the fund.
(d) The expenses of administering the fund shall be paid from
money in the fund.
(e) Money in the fund at the end of the state fiscal year does not
revert to the state general fund.
(f) Money in the fund may be used only for the following program
areas:
(1) Economic and workforce development.
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(2) Tourism promotion.
(3) Public health.
(4) Education.
(g) Subject to subsection (h), there is appropriated two million
dollars ($2,000,000) per state fiscal year from the fund to the Midwest
continental divide commission fund established under IC 36-10-16-28
for a period of twenty (20) state fiscal years beginning July 1, 2026,
and ending June 30, 2046.
(h) Money in the fund is continuously appropriated for the
purposes of the fund. This subsection expires June 30, 2027.
SECTION 2. IC 5-13-9-4, AS AMENDED BY HEA 1001-2025,
SECTION 61, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 4. (a) Each officer designated in section 1 of this
chapter may, subject to the restrictions provided in IC 5-13-8-9(a)
through IC 5-13-8-9(e), IC 5-13-8-9, deposit, invest, or reinvest any
funds that are held by the officer and available for investment in
transaction accounts issued or offered by a designated depository of a
political subdivision for the rates and terms agreed upon periodically
by the officer making the investment and the designated depository.
(b) The investing officer making a deposit in a certificate of deposit
shall obtain quotes of the specific rates of interest for the term of that
certificate of deposit that each designated depository will pay on the
certificate of deposit. Quotes may be solicited and taken by telephone.
A memorandum of all quotes solicited and taken shall be retained by
the investing officer as a public record of the political subdivision
under IC 5-14-3. If the deposit is not placed in the designated
depository quoting the highest rate of interest, the investing officer
shall:
(1) place the deposit in the depository quoting the second or third
highest rate of interest; and
(2) note the reason for placing the deposit on the memorandum of
quotes.
(c) If all of the designated depositories of a political subdivision
decline to issue or receive any deposit account, or to issue or receive
the deposit account at a rate of interest equal to the highest rate being
offered other investors, investments may be made in the deposit
accounts of any financial institution designated for state deposits as a
depository by the state board of finance under IC 5-13-9.5.
(d) Counties and political subdivisions subject to the requirements
of IC 5-13-8 and this chapter shall treat the local government
investment pool established by section 11 of this chapter as a financial
institution located within the state but not located in the county or
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political subdivision nor in a contiguous county.
(e) The seven (7) day yield published weekly by the treasurer of
state shall act as a quote for purposes of this chapter.
SECTION 3. IC 5-13-9-11, AS AMENDED BY HEA 1001-2025,
SECTION 62, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 11. (a) The following definitions apply throughout
this section:
(1) "Clearinghouse" refers to the clearinghouse registered with the
department of state revenue under IC 6-8.1-9.5-3.5.
(2) "Investment pool" means the local government investment
pool established by subsection (b).
(3) "Board" refers to the Indiana local government investment
pool board established by section 12 of this chapter.
(b) The local government investment pool is established within the
office and custody of the treasurer of state.
(c) An officer designated in section 1 of this chapter may pay any
funds held by the officer into the investment pool, subject to the
requirements provided in section 4 of this chapter, for the purpose of
deposit, investment, and reinvestment of the funds by the treasurer of
state on behalf of the unit of government paying the funds into the
investment pool.
(d) The treasurer of state may pay state funds into the investment
pool for the purpose of deposit, investment, and reinvestment of the
state funds.
(e) The treasurer of state shall establish an account in the investment
pool for the operator of the clearinghouse. The treasurer shall hold
amounts paid by the department of state revenue for deposit in the
clearinghouse operator's account in the investment pool.
(f) Upon signed written request of the operator of the clearinghouse,
the treasurer of state shall distribute the money in the operator's
account established under subsection (e):
(1) to the operator of the clearinghouse; or
(2) to specific investment pool accounts of political subdivisions
represented by the clearinghouse, if the written request submitted
under this subsection specifies:
(A) the political subdivision to which the funds are to be
disbursed;
(B) the specific amount of the funds to be disbursed; and
(C) the specific investment pool account to which the
disbursement is owed.
The clearinghouse shall assume liability for any legal or administrative
claims filed against a disbursement made by the treasurer of state that
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complies with this section.
(g) Any interest accrued by the investment pool on funds held in the
operator's account shall be distributed to the political subdivisions at a
rate equal to the percentage owed to that political subdivision based on
the overall setoff paid by the department of state revenue. No interest
shall accrue under this subsection on any fees owed to the
clearinghouse under IC 6-8.1-9.5-10(b).
(h) The treasurer of state shall invest the funds in the investment
pool in the same manner, in the same type of instruments, and subject
to the same limitations provided for the deposit and investment of state
funds by the treasurer of state under IC 5-13-10.5.
(i) The treasurer of state:
(1) shall administer the investment pool in accordance with the
policies of the board; and
(2) with the permission of the board, may contract with
accountants, attorneys, regulated investment advisors, money
managers, and other finance and investment professionals to
make investments and provide for the public accounting and legal
compliance necessary to ensure and maintain the safety, liquidity,
and yield of the investment pool.
(j) The treasurer of state shall follow the policies established by the
board. The treasurer of state must ensure the following:
(1) The administrative expenses of the investment pool shall be
accounted for by the treasurer of state and shall be paid from the
earnings of the investment pool.
(2) The earnings of the investment pool in excess of the
administrative expenses of the investment pool shall be credited
to the state and each unit of government participating in the
investment pool in a manner that equitably reflects the different
amounts and terms of the state's investment and each unit's
investment in the investment pool.
(3) The state and each unit of government participating in the
investment pool shall receive electronic or paper reports,
including:
(A) a daily transaction confirmation, reflecting any activity in
the state's or unit's account; and
(B) a monthly report showing:
(i) the state's or unit's investment activity in the investment
pool; and
(ii) the performance and composition of the investment pool.
(4) Publish the seven (7) day yield of the local government
investment pool every week to serve as a bid required for
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investment under section 4 of this chapter.
(k) A unit of government participating in the investment pool may
elect to have any funds due from the state wired directly to the
custodian bank of the investment pool for credit to the unit's investment
pool account by submitting in writing a request to the state comptroller
to wire the funds as directed. An election made by a unit of government
under this subsection may be revoked at any time by the unit by
submitting in writing a request to the state comptroller to cease wiring
the funds as previously directed by the unit.
SECTION 4. IC 6-3.6-2-7.4, AS AMENDED BY P.L.137-2024,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 7.4. "County with a single voting bloc" means
a county that has a local income tax council in which one (1) city that
is a member of the local income tax council or one (1) town that is a
member of the local income tax council is allocated more than fifty
percent (50%) of the total one hundred (100) votes allocated under
IC 6-3.6-3-6(d). This section expires May 31, 2025. 2027.
SECTION 5. IC 6-3.6-3-5, AS AMENDED BY P.L.137-2024,
SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 5. (a) The auditor of a county shall record all
votes taken on ordinances presented for a vote under this article and
not more than ten (10) days after the vote, send a certified copy of the
results to:
(1) the commissioner of the department of state revenue; and
(2) the commissioner of the department of local government
finance;
in an electronic format approved by the commissioner of the
department of local government finance.
(b) Except as provided in subsection (c), this subsection applies only
to a county that has a local income tax council. The county auditor may
cease sending certified copies after the county auditor sends a certified
copy of results showing that members of the local income tax council
have cast a majority of the votes on the local income tax council for or
against the proposed ordinance.
(c) This subsection applies only to a county with a single voting bloc
that proposes to increase (but not decrease) a tax rate in the county. The
county auditor may cease sending certified copies of the votes on the
local income tax council voting as a whole under section 9.5 of this
chapter after the county auditor sends a certified copy of results
showing that the individuals who sit on the fiscal bodies of the county,
cities, and towns that are members of the local income tax council have
cast a majority of the votes on the local income tax council voting as a
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whole under section 9.5 of this chapter for or against the proposed
ordinance. This subsection expires May 31, 2025. 2027.
SECTION 6. IC 6-3.6-3-6, AS AMENDED BY P.L.137-2024,
SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 6. (a) This section applies to a county in
which the county adopting body is a local income tax council.
(b) In the case of a city or town that lies within more than one (1)
county, the county auditor of each county shall base the allocations
required by subsections (d) and (e) on the population of that part of the
city or town that lies within the county for which the allocations are
being made.
(c) Each local income tax council has a total of one hundred (100)
votes.
(d) Each county, city, or town that is a member of a local income tax
council is allocated a percentage of the total one hundred (100) votes
that may be cast. The percentage that a city or town is allocated for a
year equals the same percentage that the population of the city or town
bears to the population of the county. The percentage that the county
is allocated for a year equals the same percentage that the population
of all areas in the county not located in a city or town bears to the
population of the county.
(e) This subsection applies only to a county with a single voting
bloc. Each individual who sits on the fiscal body of a county, city, or
town that is a member of the local income tax council is allocated for
a year the number of votes equal to the total number of votes allocated
to the particular county, city, or town under subsection (d) divided by
the number of members on the fiscal body of the county, city, or town.
This subsection expires May 31, 2025. 2027.
(f) On or before January 1 of each year, the county auditor shall
certify to each member of the local income tax council the number of
votes, rounded to the nearest one hundredth (0.01), each member has
for that year.
(g) This subsection applies only to a county with a single voting
bloc. On or before January 1 of each year, in addition to the
certification to each member of the local income tax council under
subsection (f), the county auditor shall certify to each individual who
sits on the fiscal body of each county, city, or town that is a member of
the local income tax council the number of votes, rounded to the
nearest one hundredth (0.01), each individual has under subsection (e)
for that year. This subsection expires May 31, 2025. 2027.
SECTION 7. IC 6-3.6-3-8, AS AMENDED BY P.L.137-2024,
SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
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UPON PASSAGE]: Sec. 8. (a) This section applies to a county in
which the county adopting body is a local income tax council.
(b) Except as provided in subsection (e), any member of a local
income tax council may present an ordinance for passage. To do so, the
member must adopt a resolution to propose the ordinance to the local
income tax council and distribute a copy of the proposed ordinance to
the county auditor. The county auditor shall treat any proposed
ordinance distributed to the auditor under this section as a casting of all
that member's votes in favor of the proposed ordinance.
(c) Except as provided in subsection (f), the county auditor shall
deliver copies of a proposed ordinance the auditor receives to all
members of the local income tax council within ten (10) days after
receipt. Subject to subsection (d), once a member receives a proposed
ordinance from the county auditor, the member shall vote on it within
thirty (30) days after receipt.
(d) Except as provided in subsection (h), if, before the elapse of
thirty (30) days after receipt of a proposed ordinance, the county
auditor notifies the member that the members of the local income tax
council have cast a majority of the votes on the local income tax
council for or against the proposed ordinance the member need not
vote on the proposed ordinance.
(e) This subsection applies only to a county with a single voting bloc
that proposes to increase (but not decrease) a tax rate in the county. The
fiscal body of any county, city, or town that is a member of a local
income tax council may adopt a resolution to propose an ordinance to
increase a tax rate in the county to be voted on by the local income tax
council as a whole as required under section 9.5 of this chapter and
distribute a copy of the proposed ordinance to the county auditor. The
county auditor shall treat the vote tally on the resolution adopted under
this subsection for each individual who is a member of the fiscal body
of the county, city, or town as the voting record for that individual
either for or against the ordinance being proposed for consideration by
the local income tax council as a whole under section 9.5 of this
chapter. This subsection expires May 31, 2025. 2027.
(f) This subsection applies only to a county with a single voting bloc
that proposes to increase (but not decrease) a tax rate in the county. The
county auditor shall deliver copies of a proposed ordinance the auditor
receives under subsection (e) to the fiscal officers of all members of the
local income tax council (other than the member proposing the
ordinance under subsection (e)) within ten (10) days after receipt.
Subject to subsection (h), once a member receives a proposed
ordinance from the county auditor, the member shall vote on it within
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thirty (30) days after receipt. This subsection expires May 31, 2025.
2027.
(g) This subsection applies only to a county with a single voting
bloc that proposes to increase (but not decrease) a tax rate in the
county. The fiscal body of each county, city, or town voting on a
resolution to propose an ordinance under subsection (e), or voting on
a proposed ordinance being considered by the local income tax council
as a whole under section 9.5 of this chapter, must take a roll call vote
on the resolution or the proposed ordinance. If an individual who sits
on the fiscal body is absent from the meeting in which a vote is taken
or abstains from voting on the resolution or proposed ordinance, the
fiscal officer of the county, city, or town shall nevertheless consider
that individual's vote as a "no" vote against the resolution or the
proposed ordinance being considered, whichever is applicable, for
purposes of the vote tally under this section and shall note on the vote
tally that the individual's "no" vote is due to absence or abstention. The
fiscal body of each county, city, or town shall certify the roll call vote
on a resolution or a proposed ordinance, either for or against, to the
county auditor as set forth under this chapter. This subsection expires
May 31, 2025. 2027.
(h) This subsection applies only to a county with a single voting
bloc that proposes to increase (but not decrease) a tax rate in the
county. If, before the elapse of thirty (30) days after receipt of a
proposed ordinance under subsection (e), the county auditor notifies
the member that the individuals who sit on the fiscal bodies of the
county, cities, and towns that are members of the local income tax
council have cast a majority of the votes on the local income tax
council for or against a proposed ordinance voting as a whole under
section 9.5 of this chapter, the member need not vote on the proposed
ordinance under subsection (e). This subsection expires May 31, 2025.
2027.
SECTION 8. IC 6-3.6-3-9.5, AS AMENDED BY P.L.137-2024,
SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 9.5. (a) This section applies to a county:
(1) in which the county adopting body is a local income tax
council;
(2) that is a county with a single voting bloc; and
(3) that proposes to increase a tax rate in the county.
However, the provisions under section 9 of this chapter shall apply to
a county described in subdivisions (1) and (2) that proposes to decrease
a tax rate in the county.
(b) A local income tax council described in subsection (a) must vote
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as a whole to exercise its authority to increase a tax rate under this
article.
(c) A resolution passed by the fiscal body of a county, city, or town
that is a member of the local income tax council exercises the vote of
each individual who sits on the fiscal body of the county, city, or town
on the proposed ordinance, and the individual's vote may not be
changed during the year.
(d) This section expires May 31, 2025. 2027.
SECTION 9. IC 8-22-3-4.3, AS AMENDED BY HEA 1001-2025,
SECTION 103, AND AS AMENDED BY HEA 1196-2025, SECTION
4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON
PASSAGE]: Sec. 4.3. (a) This section applies only to the board of an
airport authority that:
(1) is not located in a county containing a consolidated city;
(2) is established by a city; and
(3) has entered into a federal interstate compact.
(b) The board of an airport authority described in subsection (a)
consists of members appointed as follows:
(1) Four (4) members appointed by the executive of the city in
which the airport is located. Except as provided in section 3.9 of
this chapter, not more than two (2) members appointed under this
subdivision may be members of the same political party.
(2) One (1) member appointed by the executive of the county in
which the airport is located.
(3) One (1) member appointed by the executive of the county
(other than the county in which the airport is located) that is
closest geographically to the airport.
(4) One (1) member appointed by the governor.
(c) A member of the board holds office for four (4) years and until
the member's successor is appointed and qualified.
(d) If a vacancy occurs in the board, the authority that appointed the
member that vacated the board shall appoint an individual to serve for
the remainder of the unexpired term.
(e) A board member may be reappointed to successive terms.
(f) A board member may be impeached under the procedure
provided for the impeachment of county officers.
(g) The board member appointed under subsection (b)(4) serves as
the president of the board.
(h) On September 1, 2013, the term of each member serving on the
board of the airport authority originally established by the city of Gary
is terminated. The appointing authorities required to make
appointments to the board under this section shall make new
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appointments to the board as soon as possible after August 31, 2013.
(i) Each person appointed by an appointing authority under
subsection (b) must have knowledge of and at least five (5) years
professional work experience in at least one (1) of the following:
(1) Aviation management at an executive level.
(2) Regional economic development.
(3) Business or finance.
(j) A person appointed by an appointing authority under subsection
(b) may not personally have, or be employed by or have an ownership
interest in an entity that has, a significant contractual or business
relationship with the airport authority.
(k) The board of an airport authority described in subsection (a)
shall contract with a certified public accountant for an annual financial
audit of the airport authority. The certified public accountant may not
be selected without review of the accountant's proposal and approval
of the accountant by the state board of accounts. The certified public
accountant may not have a significant financial interest, as determined
by the board of the airport authority, in a project, facility, or service
owned by, funded by, or leased by or to the airport authority. The
certified public accountant shall present the annual financial audit not
later than four (4) months after the end of the airport authority's fiscal
year. The board of the airport authority shall pay the cost of the annual
financial audit. In addition, the state board of accounts may at any time
conduct an audit of any phase of the operations of the airport authority.
The airport authority shall pay the cost of any audit by the state board
of accounts.
(l) The board of the airport authority shall, not later than four (4)
months after the end of the airport authority's fiscal year, submit an
annual report of the board's activities for the preceding fiscal year to:
(1) the budget agency, for review by the budget committee; and
(2) the legislative council.
An annual report submitted under this section to the legislative council
must be in an electronic format under IC 5-14-6. The annual report
must set forth a complete operating and financial statement of the
airport authority for the airport authority's preceding fiscal year.
(m) The city council of the city of Gary shall terminate, as of
January 1, 2026, 2031, the compact between the city of Chicago and
the city of Gary relating to the establishment of the Chicago-Gary
Regional Airport Authority that was entered in to and became effective
on April 15, 1995. Not later than July 1, 2025: 2030:
(1) a majority of the directors designated or appointed to the
Chicago-Gary Regional Airport Authority by the Gary city
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council shall adopt a resolution that provides for the termination
of the compact on January 1, 2026; 2031; and
(2) the Gary city council shall adopt an ordinance that provides
for the termination of the compact on January 1, 2026. 2031.
SECTION 10. IC 36-7-4-604, AS AMENDED BY P.L.161-2021,
SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 604. (a) Before the plan commission certifies a
proposal to the legislative body under section 605 of this chapter, the
plan commission must hold a public hearing under this section.
(b) The plan commission shall give notice of the hearing by
publication under IC 5-3-1. The notice must state:
(1) the time and place of the hearing;
(2) either:
(A) in the case of a proposal under section 606, 606.5, or 607,
or 607.5 of this chapter, the geographic areas (or zoning
districts in a specified geographic area) to which the proposal
applies; or
(B) in the case of a proposal under section 608 of this chapter,
the geographic area that is the subject of the zone map change;
(This subdivision does not require the identification of any real
property by metes and bounds.)
(3) either:
(A) in the case of a proposal under section 606 or 606.5 of this
chapter, a summary (which the plan commission shall have
prepared) of the subject matter contained in the proposal (not
the entire text of the ordinance);
(B) in the case of a proposal under section 607 or 607.5 of this
chapter, a summary (which the plan commission shall have
prepared) of the subject matter contained in the proposal (not
the entire text) that describes any new or changed provisions;
or
(C) in the case of a proposal under section 608 of this chapter,
a description of the proposed change in the zone maps;
(4) if the proposal contains or would add or amend any penalty or
forfeiture provisions, the entire text of those penalty or forfeiture
provisions;
(5) the place where a copy of the proposal is on file for
examination before the hearing;
(6) that written objections to the proposal that are filed with the
secretary of the commission before the hearing will be
considered;
(7) that oral comments concerning the proposal will be heard; and
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(8) that the hearing may be continued from time to time as may be
found necessary.
(c) The plan commission shall also provide for due notice to
interested parties at least ten (10) days before the date set for the
hearing. The commission shall by rule determine who are interested
parties, how notice is to be given to interested parties, and who is
required to give that notice. However, if the subject matter of the
proposal:
(1) references a specific parcel of real estate;
(2) is unrelated to:
(A) a zone map change to a county ordinance under section
608 of this chapter;
(B) the adoption of an initial county zoning ordinance (or
adoption of a replacement county zoning ordinance after
repealing the entire county zoning ordinance, including
amendments and zone maps) under section 606 or 606.5 of
this chapter; or
(C) an amendment or partial repeal of the text (not zone maps)
of a county zoning ordinance under section 607 or 607.5 of
this chapter; and
(3) abuts or includes a county line (or a county line street or road
or county line body of water);
then all owners of real property to a depth of two (2) ownerships or
one-eighth (1/8) of a mile into the adjacent county, whichever is less,
are interested parties who must receive notice under this subsection.
(d) The hearing must be held by the plan commission at the place
stated in the notice. The commission may also give notice and hold
hearings at other places within the county where the distribution of
population or diversity of interests of the people indicate that the
hearings would be desirable. The commission shall adopt rules
governing the conduct of hearings under this section.
(e) A zoning ordinance may not be held invalid on the ground that
the plan commission failed to comply with the requirements of this
section, if the notice and hearing substantially complied with this
section.
(f) The files of the plan commission concerning proposals are public
records and shall be kept available at the commission's office for
inspection by any interested person.
(g) METRO. In the case of a proposal to amend a zone map under
section 608 of this chapter or in the case of a proposed approval of a
development plan required by a zoning ordinance as a condition of
development, a person may not communicate before the hearing with
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any hearing officer, member of the historic preservation commission,
or member of the plan commission with intent to influence the officer's
or member's action on the proposal. Before the hearing, the staff may
submit a statement of fact concerning the physical characteristics of the
area involved in the proposal, along with a recital of surrounding land
use and public facilities available to serve the area. The staff may
include with the statement an opinion of the proposal. The statement
must be made a part of the file concerning the proposal not less than six
(6) days before the proposal is scheduled to be heard. The staff shall
furnish copies of the statement to persons in accordance with rules
adopted by the commission.
(h) METRO. In the case of a proposal to amend a zone map under
section 608 or 608.7 of this chapter, this subsection applies if the
proposal affects only real property within the corporate boundaries of
an excluded city (as described in IC 36-3-1-7). Notwithstanding the
other provisions of this section, the legislative body of the excluded
city, rather than the plan commission, shall hold the public hearing
prescribed by this section. Whenever the plan commission receives a
proposal subject to this section, the plan commission shall refer the
proposal to the legislative body of the excluded city. Not later than
thirty (30) days after receiving the proposal, the legislative body shall
hold the hearing, acting for purposes of this section as if the legislative
body is the plan commission. The legislative body shall then make the
final determination as to the proposal.
(i) Before a proposal involving a structure regulated under
IC 8-21-10 may become effective, the plan commission must have
received:
(1) a copy of:
(A) the permit for the structure issued by the Indiana
department of transportation; or
(B) the Determination of No Hazard to Air Navigation issued
by the Federal Aviation Administration; and
(2) evidence that notice was delivered to a public use airport as
required in IC 8-21-10-3 not less than sixty (60) days before the
proposal is considered.
SECTION 11. IC 36-7-4-605, AS AMENDED BY P.L.161-2021,
SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 605. (a) ADVISORY)AREA. A proposed zoning
ordinance shall be certified to each participating legislative body by the
plan commission as follows:
(1) If the proposal is to adopt an initial zoning ordinance (or to
adopt a replacement zoning ordinance after repealing the entire
HEA 1142 — CC 1
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zoning ordinance, including amendments and zone maps) under
section 606 or 606.5 of this chapter, it may be certified only if it
receives a favorable recommendation from the commission.
(2) If the proposal is to amend or partially repeal the text (not
zone maps) of the ordinance under section 607 or 607.5 of this
chapter, it may be certified with a favorable recommendation, an
unfavorable recommendation, or no recommendation from the
commission.
(3) If the proposal is to change the zone maps incorporated by
reference into the ordinance under section 608 of this chapter, it
may be certified with a favorable recommendation, an
unfavorable recommendation, or no recommendation from the
commission.
(b) METRO. Except as provided in subsection (c), a proposal shall
be certified to the legislative body by the metropolitan development
commission only if it receives a favorable recommendation from the
commission.
(c) METRO. A proposal to change the zone maps incorporated by
reference into the ordinance under section 608 of this chapter shall be
certified to the legislative body of the county or if the proposal
concerns real property located within the boundaries of an excluded
city (as described in IC 36-3-1-7), the legislative body of the excluded
city, regardless of whether the proposal receives a favorable
recommendation, an unfavorable recommendation, or no
recommendation from the commission.
(d) The legislative body shall consider the recommendation (if any)
of the commission before acting on the proposal under section 606,
606.5, 607, 607.5, or 608 of this chapter.
SECTION 12. IC 36-7-4-609 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 609. (a) ADVISORY.
A legislative body may take action under section 606, 607, 606.5,
607.5, or 608 of this chapter only by a vote of at least a majority of all
the elected members of the body.
(b) AREA. A legislative body may take action under section 606,
607, or 608 of this chapter only by a vote of at least a majority of all the
elected members of the body.
(c) METRO. The legislative body may take action under section
606, 607, or 608 of this chapter only by a vote of at least three-fifths
(3/5) of all the elected members of the body.
(d) ADVISORY)AREA. AREA. Each city shall determine whether
its zoning ordinances will be subject to veto by the executive of the
city. If the city legislative body, by general ordinance, so provides, then
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each zoning ordinance adopted by that city under section 606, 607, or
608 of this chapter may be vetoed by the executive of the city. The
executive must exercise the veto:
(1) in a case in which the legislative body adopts (as certified) the
proposal, within ten (10) days after the legislative body acts;
(2) in a case in which the legislative body amends the proposal
and the plan commission approves the amendment or fails to act,
within fifty-five (55) days after the proposal is returned to the plan
commission for its consideration;
(3) in a case in which the legislative body amends the proposal
and confirms its original amendment by another vote, within ten
(10) days after the legislative body confirms its original
amendment; or
(4) in a case in which the proposal is to take effect because of the
legislative body's failure to act within a period of days, within ten
(10) days after the expiration of that period.
(e) ADVISORY. Each city shall determine whether its zoning
ordinances will be subject to veto by the executive of the city. If the
city legislative body, by general ordinance, so provides, then each
zoning ordinance adopted by that city under section 606.5, 607.5,
or 608 of this chapter may be vetoed by the executive of the city.
The executive must exercise the veto according to the following:
(1) If the legislative body adopts a proposal under section
606.5 or 607.5 of this chapter, the executive must exercise the
veto within ten (10) days after the legislative body acts.
(2) If the legislative body adopts an ordinance under section
608 of this chapter, the executive must exercise the veto:
(A) in a case in which the legislative body adopts (as
certified) the proposal, within ten (10) days after the
legislative body acts;
(B) in a case in which the legislative body amends the
proposal and the plan commission approves the
amendment or fails to act, within fifty-five (55) days after
the proposal is returned to the plan commission for its
consideration;
(C) in a case in which the legislative body amends the
proposal and confirms its original amendment by another
vote, within ten (10) days after the legislative body
confirms its original amendment; or
(D) in a case in which the proposal is to take effect because
of the legislative body's failure to act within a period of
days, within ten (10) days after the expiration of that
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period.
(e) (f) If a city zoning ordinance is not vetoed under subsection (d)
or (e), it takes effect without any action being taken by the executive
of the city.
(f) (g) ADVISORY)AREA. If a city zoning ordinance is vetoed
under subsection (d) or (e), it is defeated unless the city legislative
body, at its first regular or special meeting after receiving the veto
message, passes the ordinance over the veto by a two-thirds (2/3) vote.
SECTION 13. IC 36-7-4-610, AS AMENDED BY P.L.126-2011,
SECTION 16, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 610. (a) After adoption of a zoning ordinance
under section 606 or 606.5 of this chapter, the plan commission shall
publish a notice of adoption in accordance with IC 5-3-1. The notice of
adoption (which the plan commission shall have prepared) must:
(1) summarize the subject matter of the ordinance;
(2) give the date of adoption;
(3) specify the places or areas that would be directly affected by
the ordinance (this subdivision does not require the identification
of any real property by metes and bounds);
(4) specify the penalty or forfeiture prescribed for a violation of
the ordinance; and
(5) give two (2) locations open to the public where the entire text
of the ordinance is available for inspection.
(b) After adoption of a zoning ordinance under section 606, 606.5,
or 607, or 607.5 of this chapter, the plan commission shall print the
text of the ordinance in book or pamphlet form (or arrange for the
inclusion of the zoning ordinance in the code of ordinances printed by
the unit under IC 36-1-5), and no other printing or publication of any
zoning ordinance is required. Printing of the text of a zoning ordinance
in compliance with this subsection constitutes presumptive evidence:
(1) of the text of the ordinance that is contained in the code of
ordinances, book, or pamphlet (and supplement, if any);
(2) of the date of adoption of the ordinance, and of any
amendment to the ordinance that is contained in the code of
ordinances, book, or pamphlet (and supplement, if any); and
(3) that the ordinance, along with any amendment to the
ordinance that is contained in the code of ordinances, book, or
pamphlet (and supplement, if any), has been properly signed,
attested, and recorded.
(c) Zone maps incorporated by reference into the zoning ordinance
are not required to be printed in the code of ordinances, book, or
pamphlet printed under this section, but the plan commission shall
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keep them available at its office for public inspection.
(d) Unless a zoning ordinance provides for a later effective date, the
ordinance takes effect when it is adopted under section 606, 606.5, 607,
607.5, or 608 of this chapter, subject to subsection (e).
(e) When a provision prescribing a penalty or forfeiture for a
violation is printed under this section, it may not take effect until
fourteen (14) days after the later of the following:
(1) The final day on which notice of its adoption is published
under subsection (a).
(2) The day on which it is filed in the clerk's office under
subsection (f).
(f) If the zoning ordinance is not included in the code of ordinances
printed by a unit under IC 36-1-5:
(1) the book or pamphlet (and supplement, if any) that comprises
the zoning ordinance shall be incorporated by reference into the
code of ordinances;
(2) two (2) copies of the book or pamphlet (and supplement, if
any) as printed under this section shall be filed in the office of the
clerk of each participating legislative body, and these copies shall
be kept on file in that office for public inspection as required by
IC 36-1-5-4; and
(3) the clerk shall keep additional copies of the book or pamphlet
(and supplement, if any) in the clerk's office for the purpose of
sale or distribution.
(g) If a unit includes the zoning ordinance in the unit's code of
ordinances printed under IC 36-1-5, the plan commission shall also
make copies of the zoning ordinance available to the public in
accordance with IC 5-14-3.
(h) This chapter does not prohibit a unit from adopting:
(1) a unified development ordinance that combines the unit's
zoning and subdivision control ordinances into a single book,
pamphlet, or code title, article, or chapter; or
(2) form based codes or ordinances that employ combinations of
maps, plats, charts, diagrams, tables, text, and images.
SECTION 14. IC 36-7-4-1109, AS AMENDED BY SEA 425-2025,
SECTION 16, AND AS AMENDED BY HEA 1005-2025, SECTION
5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1,
2025]: Sec. 1109. (a) As used in this section, "applicant" means a
person that applies to a local authority for a permit or approval.
(b) As used in this section, "development agreement" means a
contract that is entered into between a person and a local authority
regarding the development of property and that is executed after June
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30, 2025.
(c) As used in this section, "development standards" includes the
following:
(1) Project elements including:
(A) permitted uses;
(B) residential densities;
(C) nonresidential densities and intensities;
(D) building sizes;
(E) impact fees, inspection fees, or dedications;
(F) mitigation measures, development conditions, and other
requirements;
(G) design standards;
(H) affordable housing;
(I) parks and open space preservation;
(J) phasing; and
(K) review procedures and standards for implementing
decisions.
(2) Any other development requirement or procedure.
(d) As used in this section, "legal restrictions" means statutes,
ordinances, rules, development standards, policies, and regulations.
The term does not include building codes under IC 22-13.
(e) As used in this section, "local authority" includes any agency,
officer, board, or commission of a local unit of government that may
issue:
(1) a permit; or
(2) an approval:
(A) of a land use; or
(B) for the construction of a development, a building, or
another structure.
(f) As used in this section, "permit" means any of the following:
(1) An improvement location permit.
(2) A building permit.
(3) A certificate of occupancy.
(4) Approval of a site-specific development plan.
(5) Approval of a primary or secondary plat.
(6) Approval of a variance, contingent use, conditional use,
special exception, or special use.
(7) Approval of a planned unit development.
(g) If a person files with the appropriate local authority a complete
application for a permit, as required by the legal restrictions of a local
unit of government or a local authority, the granting of:
(1) the permit; and
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(2) any secondary, additional, or related permits or approvals
required from the same local authority with respect to the general
subject matter of the application for the first permit;
are governed, for a period of at least three (3) years after the date the
person files a complete permit application, by the legal restrictions in
effect and applicable to the property at the time the complete
application is filed.
(h) Subsection (g) applies even if the legal restrictions governing the
granting of the permit or approval are changed by the general assembly
or the applicable local legislative body or regulatory body:
(1) before the issuance of the permit;
(2) while the permit approval process is pending;
(3) before the issuance of any secondary, additional, or related
permits or approvals; or
(4) while the secondary, additional, or related permit or approval
process is pending.
Subsection (g) applies regardless of whether the changes to the legal
restrictions are part of a zoning ordinance, a subdivision control
ordinance, or a statute, ordinance, or regulation that is based on the
general police powers of the local unit of government. However, after
the issuance or approval of a permit subsection (g) does not apply if the
development or other activity to which the permit relates is not
completed within ten (10) years after the development or activity is
commenced.
(i) Subsection (j) applies if:
(1) either:
(A) a local authority issues to a person a permit or grants a
person approval for the construction of a development, a
building, or another structure; or
(B) a permit or approval is not required from the local
authority for the construction of the development, building, or
structure;
(2) before beginning the construction of the development,
building, or structure, the person must obtain a permit or approval
for the construction of the development, building, or structure
from a state governmental agency; and
(3) the person has applied for the permit or requested the approval
for the construction of the development, building, or structure
from the state governmental agency within ninety (90) days of
issuance of the permit or the granting of approval by the local
authority, as applicable.
(j) Subject to subsection (l), if the conditions of subsection (i) are
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satisfied:
(1) a permit or approval issued or granted to a person by the local
authority for the construction of the development, building, or
structure; or
(2) the person's right to construct the development, building, or
structure without a permit or approval from the local authority;
is governed, for a period of at least three (3) years after the person
applies to the state governmental agency for the permit, by the legal
restrictions in effect and applicable to the property when the person
applies for the permit or requests approval from the state governmental
agency for the construction of the development, building, or structure.
(k) Subsection (j) applies even if the legal restrictions governing the
granting of the permit or approval from the local authority are changed
by the general assembly or the applicable local legislative body or
regulatory body:
(1) before the commencement of the construction; or
(2) while the permit application or approval request is pending
with the state governmental agency.
Subsection (j) applies regardless of whether the changes to the legal
restrictions are part of a zoning ordinance, a subdivision control
ordinance, or a statute, ordinance, or regulation that is based on the
general police powers of the local unit of government. However,
subsection (j) does not apply if the development or other activity to
which the permit or approval request relates is not completed within
ten (10) years after the development or activity is commenced.
(l) Subsection (j) does not apply to property when it is demonstrated
by the local authority or state governmental agency that the
construction of the development, building, or structure would cause
imminent peril to life or property.
(m) A development agreement entered into by a local authority must
set forth the legal restrictions, including development standards and
any other provisions applying to and governing the use and
development of the real property for the period specified in the
development agreement. A development agreement must:
(1) reserve authority for the local authority to impose new or
different legal restrictions to the extent required by a serious
threat to public health and safety; and
(2) be consistent with applicable legal restrictions adopted by the
local authority.
(n) Subject to subsection (j), the local authority's legal restrictions
governing the development of the real property at the time the
development agreement is executed govern the development of the real
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property for the period specified in the development agreement.
(o) This section does not authorize the impairment of any vested
right or abrogate any rights vested under common law. Without
limiting the time in which rights might vest, an applicant's rights are
considered vested in land use when the applicant obtains a permit or
reasonably relies on existing law regarding development of a specific
project. Rights considered vested under this subsection are not affected
by a subsequent amendment to a zoning ordinance.
(p) This section does not apply to building codes under IC 22-13.
(q) The following provision is considered to be included in any
regulation adopted under section 601(d)(2)(B) of this chapter that sets
forth requirements for signs:
"The owner of any sign that is otherwise allowed by this
regulation may substitute noncommercial copy in place of any
other commercial or noncommercial copy. This substitution of
copy may be made without the issuance of any additional permit
by a local authority. The purpose of this provision is to prevent
any inadvertent favoring of commercial speech over
noncommercial speech, or the favoring of any particular
noncommercial message over any other noncommercial message.
This provision prevails over any more specific provision in this
regulation to the contrary.".
(r) Notwithstanding any other law, After December 31, 2025, this
subsection does not apply to a permit to which IC 36-7-2.5 applies. A
local authority must, not later than twelve (12) business days after a
person has filed a complete application for a permit for which approval
is ministerial under IC 36-7-4-402 or an improvement location permit
issued under the 800 series of this chapter and meets all conditions
required under this chapter and any other statute, issue the permit to the
person.
SECTION 15. IC 36-7-4-1109.4 AS ADDED BY SEA 425-2025,
SECTION 20, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 1109.4. (a) This section does not apply to the
issuance of:
(1) a design release or a plan review under IC 22-15;
(2) a Class 2 permit according to the timeline set forth in
IC 36-2-7.5 (after December 31, 2025); or
(3) a permit according to the timeline set forth in section
1109(r) of this chapter.
(b) A local authority shall review a permit application for
completeness. If a local authority determines that an application is
incomplete, the local authority must, not later than thirty (30) days after
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receipt of the application, notify the applicant in writing of all defects
in the application. If a local authority fails to notify an applicant as
required under this subsection, the local authority shall consider the
permit application to be complete.
(c) An applicant that receives a timely written notice that an
application is incomplete under subsection (b) may:
(1) cure the defects in the application; and
(2) resubmit the corrected application to the local authority;
not later than thirty (30) days after receiving the notice. If an applicant
is unable to cure the defects within the thirty (30) day period, the
applicant shall notify the local authority of the additional time the
applicant requires to cure the defects.
(d) Subject to subsection (e), not more than ninety (90) days after
making an initial determination of completeness under subsection (b),
a local authority shall:
(1) review the application to determine if it complies with all
applicable requirements; and
(2) notify the applicant in writing whether the application is
approved or denied.
The local authority shall provide to the applicant the local authority's
written determination and findings of fact.
(e) If an applicant requested additional time under subsection (c) to
cure defects in the application, the ninety (90) day period set forth in
subsection (d) is extended for a corresponding amount of time.
(f) Any official action on a previously approved permit application,
including an extension of specific conditions set forth in the permit,
must be made not later than sixty (60) days after the applicant's filing
that initiated the official action. The local authority shall provide to the
applicant the local authority's written determination and findings of fact
with respect to the official action.
SECTION 16. An emergency is declared for this act.
HEA 1142 — CC 1
Speaker of the House of Representatives
President of the Senate
President Pro Tempore
Governor of the State of Indiana
Date: Time:
HEA 1142 — CC 1Every fact on this page links to its source, starting with the official bill record.