IndianaSB 468First Regular Session 124th General Assembly (2025)Senate

Midwest continental divide commission.

Sponsored By: David Niezgodski (Democratic)

Signed by Governor

Summary

Allows an eligible county and city to establish by ordinance, a Midwest continental divide commission and district for the purpose of acquiring, developing, funding, constructing, equipping, and owning economic improvement projects in or serving the district. Amends an appropriation made in P.L.201-2023 to the northern Indiana regional economic development authority to allow funds to be used to support and fund the commission and the commission's projects.

appropriationsthe houseways and means

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Bill Overview

Analyzed Economic Effects

8 provisions identified: 3 benefits, 1 costs, 4 mixed.

New commission supports local trails and development

Beginning July 1, 2025, an eligible Indiana county and city can jointly create the Midwest Continental Divide Commission by ordinance. The county must have more than 250,000 but fewer than 300,000 people; the city, more than 100,000 but fewer than 110,000. The ordinance must set district boundaries, include a trail in the development plan, and approve a land use and zoning plan. The commission must coordinate related tourism and development with local governments, tribal governments at reservation sites, and development authorities. It must provide for the trail's design, construction, operation, and upkeep, and can fund and own economic improvement projects. It can also offer loans, guarantees, grants, and federal grant matches for eligible local governments and transportation agencies.

Local agencies gain project leaseback options

Eligible participants and Indiana nonprofits can sell land or projects to the commission, lease them back, and enter joint project agreements. An eligible participant can set a sale price it finds serves its best interest. For bond-refinancing transactions, the sale price must cover refinancing the bonds. Leases can last no more than 20 years, and eligible participants must find the rent fair and reasonable. Rent for new construction or improvements cannot start until the work is complete and ready to use. The renter must have an option to buy the project for the amount needed to pay its related debt, including refinancing debt.

Tax breaks support commission construction projects

Commission-owned property, its lease interests, and its revenue are exempt from Indiana state taxation, except the financial institutions tax. Contractors can use sales-tax exemption certificates for materials built into real property on commission-owned or commission-leased land in the district. Securities issued under this law are also exempt from state securities registration requirements.

District property faces new commission powers

Beginning July 1, 2025, changes or exceptions to the district's adopted land use and zoning plan require commission approval. The commission can also seek to take district property through condemnation when agreement with owners, renters, or occupants fails. Before filing, it must adopt a resolution describing the property, planned use, and public interest and necessity. The eligible city's legislative body must approve acquisitions inside that city; otherwise, the eligible county's legislative body must approve.

Public oversight comes with commission expenses

Beginning July 1, 2025, the commission must follow Indiana public records and open meeting laws. The State Board of Accounts must allow an annual certified public accountant audit, subject to State Examiner approval and direction. The commission pays; reports are due within four months after each calendar year and must review internal controls and recommend improvements. The accountant cannot hold a significant financial interest in commission-funded or leased projects, facilities, or services. The state can waive an audit when the commission certifies it had no financial activity that year. Members receive no salary, but nonlegislative members receive necessary work-expense reimbursement from commission funds. Legislative members receive lawmakers' interim-study daily, mileage, and travel allowances from money appropriated for that purpose.

Commission funding can redirect local money

The commission must create a fund that can receive local, state, and federal money, grants, and gifts. Local transfers can include property tax and tax increment financing revenue, but not money legally restricted or committed elsewhere. Fund money stays available for the law's purposes and does not revert to another fund. When a county or local unit misses a required transfer, the treasurer must divert an equal amount from its distributions. Beginning July 1, 2025, the Northern Indiana Regional Development Authority can also use an existing $30 million appropriation for commission support. That appropriation covers the budget year ending June 30, 2024; this added use expires July 1, 2028. This is not new funding, and the law does not require the full $30 million to go to the commission.

Commission projects face bidding and review rules

Beginning July 1, 2025, the commission must follow Indiana public purchasing and public works laws and applicable federal bidding rules. An eligible public entity can lease property to the commission at a price and on terms that entity sets. When a lease calls for commission construction or improvements, every agency legally assigned to review the plans must approve them.

Appraisals guide commission property deals

Beginning July 1, 2025, covered purchases generally require two independent appraisals, with the initial offer capped at their average. Auctions, purchases of at least $75,000, and government-to-government transactions are exempt from these acquisition rules. A higher acquisition price needs commission approval or a court order in condemnation proceedings. Public sales and leases generally require two appraisals, notice, written offers, and an offering price no lower than the appraisal average. One appraisal is enough for a parcel under five acres valued below $50,000. Specified procedures exclude transfers to eligible participants, Indiana nonprofits, and qualifying developers, and lease renewals totaling no more than five years.

Sponsors & Cosponsors

Sponsor

  • David Niezgodski

    Democratic • Senate

Cosponsors

  • Blake Doriot

    Republican • Senate

  • Dale DeVon

    Republican • House

  • Ed Charbonneau

    Republican • Senate

  • Jake Teshka

    Republican • House

  • Linda Rogers

    Republican • Senate

  • Lonnie Randolph

    Democratic • Senate

  • Maureen Bauer

    Democratic • House

  • Rodney Pol

    Democratic • Senate

  • Ryan Mishler

    Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 181 • No: 4

Senate vote • 4/17/2025

Senate concurred with House amendments

Yes: 38 • No: 4

House vote • 4/8/2025

Third reading: passed

Yes: 94 • No: 0

Senate vote • 2/10/2025

Third reading: passed

Yes: 49 • No: 0

Actions Timeline

  1. Signed by the Governor

    5/1/2025Senate
  2. Public Law 141

    5/1/2025Senate
  3. Signed by the President of the Senate

    4/23/2025Senate
  4. Signed by the President Pro Tempore

    4/22/2025Senate
  5. Signed by the Speaker

    4/22/2025House
  6. Senate concurred with House amendments; Roll Call 474: yeas 38, nays 4

    4/17/2025Senate
  7. Motion to concur filed

    4/10/2025Senate
  8. Returned to the Senate with amendments

    4/9/2025House
  9. Third reading: passed; Roll Call 406: yeas 94, nays 0

    4/8/2025House
  10. Second reading: ordered engrossed

    4/7/2025House
  11. Committee report: amend do pass, adopted

    4/3/2025House
  12. First reading: referred to Committee on Ways and Means

    3/3/2025House
  13. Referred to the House

    2/11/2025Senate
  14. House sponsor: Representative Teshka

    2/10/2025Senate
  15. Third reading: passed; Roll Call 93: yeas 49, nays 0

    2/10/2025Senate
  16. Cosponsors: Representatives DeVon and Bauer

    2/10/2025Senate
  17. Amendment #3 (Niezgodski) prevailed; voice vote

    2/6/2025Senate
  18. Second reading: amended, ordered engrossed

    2/6/2025Senate
  19. Senator Doriot added as coauthor

    2/3/2025Senate
  20. Committee report: amend do pass, adopted

    1/23/2025Senate
  21. Senator Mishler added as second author

    1/23/2025Senate
  22. Senator Rogers added as third author

    1/23/2025Senate
  23. Senators Pol and Randolph added as coauthors

    1/23/2025Senate
  24. Senator Charbonneau added as coauthor

    1/23/2025Senate
  25. Authored by Senator Niezgodski

    1/13/2025Senate

Bill Text

  • Engrossed Senate Bill (H)

  • Enrolled Senate Bill (S)

  • Introduced Senate Bill (S)

  • Senate Bill (S)

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