Indiana Code

IC 36-1.5 ARTICLE 1.5. GOVERNMENT MODERNIZATION

 

           Ch. 1. General Provisions

           Ch. 2. Definitions

           Ch. 3. Adjustment of Maximum Permissible Levies, Tax Rates, and Budgets

           Ch. 4. Reorganization by Referendum

           Ch. 5. Cooperative Agreements and Transfers of Responsibilities

           Ch. 6. School Corporation Efficiency Incentive Grants

 

IC 36-1.5-4-1 Types of reorganizations authorized; political subdivisions not participating in reorganization

     Sec. 1. (a) Any of the following may reorganize under this chapter:

(7) A township and a municipality that is located in any part of the same township.

(9) A municipality and a county that does not contain a consolidated city.

     (b) If a political subdivision reorganizes under this article with one (1) or more other political subdivisions:

(1) any political subdivisions that did not participate in the public question on the reorganization are not reorganized under this article;

(2) the reorganization affects only those political subdivisions in which the reorganization is approved as specified in this article; and

(3) the reorganization does not affect the rights, powers, and duties of any political subdivisions in the county in which the reorganization is not approved as specified in this article.

As added by P.L.186-2006, SEC.4.

 

IC 36-1.5-4-3 Types of reorganization

     Sec. 3. Political subdivisions described in section 1 of this chapter may participate under this chapter in any of the following types of reorganization:

(1) Consolidation of the participating political subdivisions into a single new political subdivision.

(2) Consolidation of the participating political subdivisions into one (1) of the participating political subdivisions.

As added by P.L.186-2006, SEC.4.

 

IC 36-1.5-4-5 Effective date of reorganization

     Sec. 5. A reorganization approved under this chapter takes effect when all of the following have occurred:

(1) The later of:

(A) the date that a copy of a joint certification from the county election board in each county in which reorganizing political subdivisions are located that indicates that:

(i) the reorganization has been approved by the voters of each reorganizing political subdivision; or

(ii) in the case of a reorganization described in section 1(a)(7) or 1(a)(9) of this chapter, the reorganization has been approved as set forth in section 32(b) or 32(c) of this chapter;

is recorded as required by section 31 of this chapter; or

(B) the date specified in the finally adopted plan of reorganization.

(2) The appointed or elected officers of the reorganized political subdivision are elected (as prescribed by section 36 of this chapter) or appointed and qualified, if:

(A) the reorganized political subdivision is a new political subdivision and reorganizing political subdivisions are not being consolidated into one (1) of the reorganizing political subdivisions;

(B) the reorganized political subdivision will have different boundaries than any of the reorganizing political subdivisions;

(C) the reorganized political subdivision will have different appointment or election districts than any of the reorganizing political subdivisions; or

(D) the finally adopted plan of reorganization requires new appointed or elected officers before the reorganization becomes effective.

As added by P.L.186-2006, SEC.4. Amended by P.L.113-2010, SEC.109; P.L.202-2013, SEC.2; P.L.233-2015, SEC.334; P.L.104-2022, SEC.144.

 

IC 36-1.5-4-6 Results of reorganization

     Sec. 6. When a reorganization under this chapter is effective:

(1) all of the participating political subdivisions, except the reorganized political subdivision, cease to exist;

(2) unless the plan of reorganization provides for the continuation of the term of office, the term of each of the elected offices of each of the reorganizing political subdivisions is terminated;

(3) if the plan of reorganization transfers the responsibilities of any office to another office, the office from which the responsibilities were transferred is abolished;

(4) the executives, legislative bodies, and fiscal bodies of the reorganizing political subdivisions (other than any reorganizing political subdivision that is treated under the plan of reorganization as the successor reorganized political subdivision) are abolished, and the responsibilities of the executives, legislative bodies, and fiscal bodies are transferred to the executive, legislative body, and fiscal body of the reorganized political subdivision; and

(5) the property and liabilities of the reorganizing political subdivisions become the property and liabilities of the reorganized political subdivision, subject to section 40 of this chapter.

As added by P.L.186-2006, SEC.4.

 

IC 36-1.5-4-7 Budgets, tax rates, and tax levies; deadline for certification; election districts

     Sec. 7. (a) In the year before the year in which the participating political subdivisions are reorganized under this chapter:

(1) subject to subsection (b), the fiscal bodies of the reorganizing political subdivisions shall, in the manner provided by IC 6-1.1-17, adopt tax levies, tax rates, and a budget for the reorganized political subdivision either through the adoption of substantially identical resolutions adopted by each of the fiscal bodies or, if authorized in the plan of reorganization, through a joint board established under an agreement of the fiscal bodies on which the members of each of the fiscal bodies are represented; and

(2) if the reorganized political subdivision will have elected offices and different election districts than any of the reorganizing political subdivisions, the legislative bodies of the reorganizing political subdivisions shall establish the election districts either through the adoption of substantially identical resolutions adopted by each of the legislative bodies or, if authorized in the plan of reorganization, through a joint board established under an agreement of the legislative bodies on which the members of each of the legislative bodies are represented.

     (b) This subsection applies to two (2) or more school corporations that participate in a reorganization in which the voters approve a plan of reorganization in a general election.

     

IC 36-1.5-4-8 Authority of department of local government finance to prescribe forms

     Sec. 8. The department of local government finance may prescribe forms for petitions, resolutions, certifications, and other writings required under this chapter. A petition, resolution, certification, or other writing related to a reorganization must be substantially in the form prescribed by the department of local government finance.

As added by P.L.186-2006, SEC.4.

 

IC 36-1.5-4-9 Initiation of reorganization

     Sec. 9. A reorganization may be initiated by:

(1) adopting a resolution under section 10 of this chapter; or

(2) filing a petition under section 11 of this chapter.

As added by P.L.186-2006, SEC.4.

 

IC 36-1.5-4-10 Initiation of reorganization by legislative body

     Sec. 10. (a) The legislative body of a political subdivision may initiate a proposed reorganization under this chapter by adopting a resolution that:

(1) proposes a reorganization; and

(2) names the political subdivisions that would be reorganized in the proposed reorganization.

     (b) The clerk of the political subdivision adopting the resolution shall certify the resolution to the clerk of each political subdivision named in the resolution.

As added by P.L.186-2006, SEC.4. Amended by P.L.202-2013, SEC.3.

 

IC 36-1.5-4-12 Action by legislative body on proposed reorganization; hearing

     Sec. 12. (a) If a petition is certified to the legislative body of a political subdivision under section 11 of this chapter, the legislative body shall conduct a public hearing on the proposed reorganization not sooner than five (5) days after publishing a notice of the public hearing under IC 5-3-1. Not more than thirty (30) days after the conclusion of the public hearing the legislative body shall adopt a resolution, substantially in the form prescribed by the department of local government finance, to do any of the following:

(1) Decline to participate in the proposed reorganization.

(2) Propose a reorganization with the political subdivisions named in the petition.

(3) Propose a reorganization with political subdivisions that differ in part or in whole from the political subdivisions named in the petition.

     (b) The clerk of the political subdivision adopting a resolution proposing a reorganization under this section shall certify the resolution to the clerk of each political subdivision named in the resolution.

As added by P.L.186-2006, SEC.4. Amended by P.L.202-2013, SEC.5.

 

IC 36-1.5-4-13 Action by legislative body receiving resolution on proposed reorganization from another political subdivision; hearing

     Sec. 13. (a) The legislative body of a political subdivision that receives a certified resolution under section 10 or 12 of this chapter may do any of the following:

(1) Adopt a resolution declining to participate in a proposed reorganization.

(2) Adopt a substantially identical resolution proposing to participate in a proposed reorganization with the political subdivisions named in a resolution certified to the political subdivision.

(3) Adopt a resolution proposing to participate in a proposed reorganization with political subdivisions that differ in part or in whole from the political subdivisions named in a resolution certified to the political subdivision.

     (b) The clerk of the political subdivision adopting a resolution proposing a reorganization under this section shall certify the resolution to the clerk of each political subdivision named in the resolution.

As added by P.L.186-2006, SEC.4. Amended by P.L.202-2013, SEC.6.

 

IC 36-1.5-4-14 Revision of resolutions

     Sec. 14. The legislative body of a political subdivision may revise a resolution certified under section 10, 12, or 13 of this chapter by adding or deleting proposed parties to the reorganization until all of the political subdivisions named in the resolution have adopted substantially identical reorganization resolutions.

As added by P.L.186-2006, SEC.4.

 

IC 36-1.5-4-18 Preparation of reorganization plan; required elements

     Sec. 18. (a) The legislative bodies of the reorganizing political subdivisions shall prepare a comprehensive plan of reorganization for the reorganizing political subdivisions. The plan of reorganization governs the actions, duties, and powers of the reorganized political subdivision that are not specified by law.

     (b) The plan of reorganization must include at least the following:

(1) The name and a description of the reorganized political subdivision that will succeed the reorganizing political subdivisions.

(2) A description of the boundaries of the reorganized political subdivision.

(3) Subject to section 40 of this chapter, a description of the taxing areas in which taxes to retire obligations of the reorganizing political subdivisions will be imposed.

(4) A description of the membership of the legislative body, fiscal body, and executive of the reorganized political subdivision, a description of the election districts or appointment districts from which officers will be elected or appointed, and the manner in which the membership of each elected or appointed office will be elected or appointed.

(5) A description of the services to be offered by the reorganized political subdivision and the service areas in which the services will be offered.

(6) The disposition of the personnel, the agreements, the assets, and, subject to section 40 of this chapter, the liabilities of the reorganizing political subdivisions, including the terms and conditions upon which the transfer of property and personnel will be achieved.

(7) Any other matter that the:

(A) the legislative bodies of the reorganizing political subdivisions determine to be necessary or appropriate to include in the plan of reorganization.

(8) This subdivision applies only to a reorganization described in section 1(a)(7) of this chapter that is voted on by voters after December 31, 2013, regardless of when the plan of reorganization is adopted. The legislative bodies of the reorganizing political subdivisions shall include in the reorganization plan an approval threshold, specified as a percentage, that applies for purposes of section 32(b) of this chapter. The approval threshold must be the same for each municipality that is a party to the proposed reorganization and to each township that is a party to the proposed reorganization. The approval threshold must be greater than fifty percent (50%), but not more than fifty-five percent (55%).

(9) This subdivision applies only to a reorganization described in section 1(a)(7) of this chapter that is voted on by voters after December 31, 2013, regardless of when the plan of reorganization is adopted. The legislative bodies of the reorganizing political subdivisions shall determine and include in the reorganization plan the percentage of voters in both the municipality and the township voting on the public question regarding the proposed reorganization who must vote in favor of the proposed reorganization for the public question to be approved. This percentage is referred to in this chapter as the "municipality-township vote approval percentage". The municipality-township vote approval percentage must be greater than fifty percent (50%).

(10) In the case of a reorganization described in section 1(a)(9) of this chapter, the legislative bodies of the reorganizing political subdivisions shall include in the reorganization plan an approval threshold, specified as a percentage, that applies for purposes of section 32(c) of this chapter. The approval threshold must be the same for each municipality that is a party to the proposed reorganization and to the county that is a party to the proposed reorganization. The approval threshold must be greater than fifty percent (50%), but not more than fifty-five percent (55%).

(11) In the case of a reorganization described in section 1(a)(9) of this chapter, the legislative bodies of the reorganizing political subdivisions shall determine and include in the reorganization plan the percentage of voters voting on the public question regarding the proposed reorganization who must vote, on a countywide basis, in favor of the proposed reorganization for the public question to be approved. This percentage is referred to in this chapter as the "countywide vote approval percentage". The countywide vote approval percentage must be greater than fifty percent (50%).

(12) The fiscal impact analysis required by subsection (d).

     (c) In the case of a plan of reorganization prepared by the legislative bodies of the reorganizing political subdivisions, the political subdivision shall post a copy of the plan of reorganization on an Internet web site maintained or authorized by the political subdivision not more than thirty (30) days after the plan of reorganization is prepared by the legislative bodies of the reorganizing political subdivisions. If the plan of reorganization is amended, the political subdivision shall post the amended plan on the Internet web site maintained or authorized by the political subdivision within seven (7) days after the amended plan is adopted.

     (d) The legislative bodies of the reorganizing political subdivisions preparing a reorganization plan after December 31, 2013, must include in the plan of reorganization a fiscal impact analysis of the proposed reorganization. The fiscal impact analysis must include at least the following:

(1) The estimated effect of the proposed reorganization on taxpayers in each of the political subdivisions to which the proposed reorganization applies, including the expected tax rates, tax levies, expenditure levels, service levels, and annual debt service payments in those political subdivisions.

(2) A description of the planned services to be provided in the reorganized political subdivision and the method or methods of financing the planned services. The fiscal impact analysis must:

(A) present itemized estimated costs for each department or agency of the reorganized political subdivision; and

(B) explain how specific and detailed expenses will be funded from taxes, fees, grants, and other funding.

(3) A description of the capital improvements to be provided in the reorganized political subdivision and the method or methods of financing those capital improvements.

(4) Any estimated effects on political subdivisions in the county that are not participating in the reorganization and on taxpayers located in those political subdivisions.

     (e) The legislative bodies of the reorganizing political subdivisions preparing a plan of reorganization after December 31, 2013, must submit the fiscal impact analysis described in subsection (d) to the department of local government finance at least three (3) months before the election in which the public question will be on the ballot. A legislative body of a reorganizing political subdivision may not adopt a plan of reorganization unless the legislative bodies of the reorganizing political subdivisions have submitted the fiscal impact analysis to the department of local government finance as required by this subsection. The department of local government finance must do the following within a reasonable time, but not later than thirty (30) days before the date of the election in which the public question will be on the ballot:

(1) Review the fiscal impact analysis.

(2) Make any comments concerning the fiscal impact analysis that the department considers appropriate.

(3) Provide the department's comments under subdivision (2) to the legislative body of the reorganizing political subdivisions.

(4) Post the department's comments under subdivision (2) on the department's Internet web site.

The department of local government finance shall certify to the legislative bodies of the reorganizing political subdivisions the total amount of expense incurred by the department in carrying out the department's review and preparing the department's comments. Upon receipt of the department's certification of the expenses, the reorganizing political subdivisions shall immediately pay to the treasurer of state the amount charged. The share of the cost to be paid by each reorganizing political subdivision shall be determined by the legislative bodies of the reorganizing political subdivisions. Money paid by a reorganizing political subdivision under this subsection shall be deposited in the state general fund.

As added by P.L.186-2006, SEC.4. Amended by P.L.113-2010, SEC.110; P.L.202-2013, SEC.10; P.L.233-2015, SEC.335.

 

IC 36-1.5-4-19 Consideration of reorganization plan by legislative bodies

     Sec. 19. The legislative body of each of the reorganizing political subdivisions shall provide for the following:

(1) Consideration of a plan of reorganization in the form of a resolution incorporating the plan of reorganization in full or by reference.

(2) Reading of the resolution incorporating the plan of reorganization in at least two (2) separate meetings of the legislative body of the political subdivision.

(3) Conducting a public hearing on the plan of reorganization:

(A) not sooner than five (5) days after notice of the public hearing is published under IC 5-3-1; and

(B) before the legislative body takes final action on the resolution to adopt the plan of reorganization.

As added by P.L.186-2006, SEC.4. Amended by P.L.202-2013, SEC.11.

 

IC 36-1.5-4-20 Actions by legislative bodies on reorganization plan

     Sec. 20. At a public hearing on a plan of reorganization conducted under section 19 of this chapter, or in a public meeting held not more than thirty (30) days after the public hearing concludes, a legislative body of a reorganizing political subdivision shall do one (1) of the following:

(1) Adopt the plan of reorganization.

(2) Adopt the plan of reorganization with modifications.

(3) Reject the plan of reorganization.

As added by P.L.186-2006, SEC.4. Amended by P.L.202-2013, SEC.12.

 

IC 36-1.5-4-21 Modifications to reorganization plan

     Sec. 21. Any modifications in a plan of reorganization that are adopted by a legislative body of a reorganizing political subdivision must be adopted by the legislative body of each of the reorganizing political subdivisions before the modifications are effective.

As added by P.L.186-2006, SEC.4.

 

IC 36-1.5-4-32 Approval of public question

     Sec. 32. (a) This subsection does not apply to a reorganization described in section 1(a)(7) or 1(a)(9) of this chapter.

     (b) This subsection applies only to a reorganization described in section 1(a)(7) of this chapter. This subsection applies only to a reorganization voted on by voters after December 31, 2013. In the case of a proposed reorganization between a municipality and a township, the reorganization is approved only if:

(1) the percentage of all voters voting on the public question who:

(A) reside in:

(i) the reorganizing municipality;

(ii) the reorganizing township and not the reorganizing municipality; and

(iii) both the reorganizing municipality and the reorganizing township; and

(B) vote in favor of the proposed reorganization;

is greater than fifty percent (50%);

(2) the percentage of voters of the reorganizing municipality voting on the public question in favor of the reorganization equals or exceeds the approval threshold included in the final reorganization plan, which must be greater than fifty percent (50%) but not more than fifty-five percent (55%); and

(3) the percentage of voters who reside within the reorganizing township but do not reside within the reorganizing municipality and who vote on the public question in favor of the reorganization equals or exceeds the approval threshold included in the final reorganization plan, which must be greater than fifty percent (50%) but not more than fifty-five percent (55%).

If the reorganization is not approved, the reorganization is terminated. In tabulating the votes under subdivisions (2) and (3), the vote of voters of a reorganizing municipality who are also voters in the reorganizing township shall be included only in the tally of votes for the municipality in which the voters reside.

     (c) The following apply only to a reorganization described in section 1(a)(9) of this chapter:

As added by P.L.186-2006, SEC.4. Amended by P.L.202-2013, SEC.19.