HB-5853 Summary

• Adds transparency requirements for local development financing authorities (LDFAs), including mandatory website posting of board minutes, budgets, audits, development plans, tax increment financing plans, and promotional materials for the preceding 5 fiscal years.

• Requires each LDFA board to hold at least one annual informational meeting to present authority activities and finances, with notice provided to the creating municipality and affected taxing jurisdictions at least 20 days in advance.

• Expands the annual financial report requirements submitted to the governing body and state to include total new public investment, sponsorship contributions, funding sources, and captured assessed value retained by the authority for each taxing jurisdiction.

• Changes enforcement authority from the state tax commission to the department of treasury, which may issue written violation notices and suspend an authority's ability to capture tax increment revenues in excess of bonded indebtedness if the authority fails to comply within 60 days.

• Modifies tax increment financing plan termination provisions to clarify that plans cannot expire or terminate until bonds are paid off or funds are placed in an irrevocable trust for bondholders.