HB 1623 Summary

• Permits creation and operation of real estate investment trusts (REITs) in Indiana as unincorporated business trusts by filing a declaration of trust with the secretary of state.

• Establishes comprehensive governance requirements including mandatory annual shareholder meetings, trustee elections at least every three years, and provisions for share classes with different preferences and voting rights.

• Allows REITs to engage in standard business activities including acquiring and disposing of real and personal property, issuing securities, making contracts, and entering into mergers and conversions with other business entities.

• Requires REITs to pay filing fees substantially similar to corporation fees and comply with Internal Revenue Code Sections 856-858 requirements for federal REIT qualification.

• Imposes civil penalty of up to $1,000 on trustees who conduct business in Indiana without filing required declaration of trust with secretary of state; effective dates July 1, 2017 and July 1, 2018.