*SB0073.1*
January 19, 2022
SENATE BILL No. 73
_____
DIGEST OF SB 73 (Updated January 13, 2022 11:10 am - DI 140)
Citations Affected: IC 13-18; IC 36-4; IC 36-9.
Synopsis: Annexation. Provides, with certain exceptions, that the
following apply to annexations for which an annexation ordinance is
adopted after March 31, 2022: (1) To proceed with an annexation
initiated by the municipality, the municipality must file a petition with
the court signed by: (A) at least 51% of the owners of non-tax exempt
land; or (B) the owners of at least 75% in assessed valuation of non-tax
exempt land; in the annexation territory. (2) If the petition has enough
signatures, the court must hold a hearing to review the annexation. (3)
Adds provisions regarding the validity of signatures. (4) Eliminates
remonstrances and reimbursement of remonstrator's attorney's fees and
costs. (5) Voids remonstrance waivers. (6) Eliminates provisions
regarding contiguity of a public highway and that prohibit an
annexation from taking effect in the year before a federal decennial
census is conducted. Voids a settlement agreement in lieu of
annexation executed after March 31, 2022. (7) Eliminates the
requirement that a municipality adopt a fiscal plan if the annexation is
petitioned for by 100% of the owners of land within the annexation
territory.
Effective: Upon passage.
Boots, Niemeyer
January 4, 2022, read first time and referred to Committee on Local Government.
January 18, 2022, reported favorably — Do Pass.
SB 73—LS 6364/DI 87 January 19, 2022
Second Regular Session of the 122nd General Assembly (2022)
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 2021 Regular Session of the General Assembly.
SENATE BILL No. 73
A BILL FOR AN ACT to amend the Indiana Code concerning local
government.
Be it enacted by the General Assembly of the State of Indiana:
1 SECTION 1. IC 13-18-15-2, AS AMENDED BY P.L.257-2019,
2 SECTION 83, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 UPON PASSAGE]: Sec. 2. (a) The persons involved shall negotiate the
4 terms for connection and service under this chapter.
5 (b) If service is ordered under this chapter, a receiver of that service
6 that is located in an unincorporated area may grant a waiver to a
7 municipality providing the service. A waiver under this section:
8 (1) must waive the receiver's right of remonstrance against
9 annexation of the areas in which the service is to be provided; and
10 (2) may be one (1) of the terms for connection and service
11 described in subsection (a).
12 (c) The waiver, if granted:
13 (1) shall be noted on the deed of each property affected and
14 recorded as provided by law; and
15 (2) is considered a covenant running with the land.
16 (d) This subsection applies to any deed recorded after June 30,
17 2015. This subsection applies only to property that is subject to a
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1 remonstrance waiver. A municipality shall, within a reasonable time
2 after the recording of a deed to property located within the
3 municipality, provide written notice to the property owner that a waiver
4 of the right of remonstrance exists with respect to the property.
5 (e) A remonstrance waiver executed before July 1, 2003, is void.
6 This subsection does not invalidate an annexation that was effective on
7 or before July 1, 2019.
8 (f) A remonstrance waiver executed after June 30, 2003, and before
9 July 1, 2019, is subject to the following:
10 (1) The waiver is void unless the waiver was recorded (A) before
11 January 1, 2020, and (B) with the county recorder of the county
12 where the property subject to the waiver is located.
13 (2) A waiver that is not void under subdivision (1) or subsection
14 (h) expires not later than fifteen (15) years after the date the
15 waiver is executed.
16 This subsection does not invalidate an annexation that was effective on
17 or before July 1, 2019.
18 (g) A remonstrance waiver executed after June 30, 2019, is subject
19 to the following: (1) The waiver is void unless the waiver is must be
20 recorded (A) not later than thirty (30) business days after the date the
21 waiver was executed and (B) with the county recorder of the county
22 where the property subject to the waiver is located. (2) A waiver that
23 is not void under subdivision (1) expires not later than fifteen (15)
24 years after the date the waiver is executed. This subsection does not
25 invalidate an annexation that was effective on or before July 1, 2019.
26 (h) Notwithstanding any other law, a waiver of the right of
27 remonstrance is valid and binding on a landowner or a successor
28 in title only with regard to an annexation for which the annexation
29 ordinance was adopted before April 1, 2022.
30 SECTION 2. IC 36-4-3-1.5, AS AMENDED BY P.L.206-2016,
31 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
32 UPON PASSAGE]: Sec. 1.5. (a) For purposes of this chapter, territory
33 sought to be annexed may be considered "contiguous" only if at least
34 one-eighth (1/8) of the aggregate external boundaries of the territory
35 coincides with the boundaries of the annexing municipality. In
36 determining if a territory is contiguous, a strip of land less than one
37 hundred fifty (150) feet wide that connects the annexing municipality
38 to the territory is not considered a part of the boundaries of either the
39 municipality or the territory.
40 (b) This subsection applies to an annexation for which an
41 annexation ordinance is adopted after June 30, 2015, and before April
42 1, 2022. A public highway or the rights-of-way of a public highway are
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1 contiguous to:
2 (1) the municipality; or
3 (2) property in the unincorporated area adjacent to the public
4 highway or rights-of-way of a public highway;
5 if the public highway or the rights-of-way of a public highway are
6 contiguous under subsection (a) and one (1) of the requirements in
7 subsection (c) is satisfied.
8 (c) This subsection applies to an annexation for which an
9 annexation ordinance is adopted after June 30, 2015, and before
10 April 1, 2022. A public highway or the rights-of-way of a public
11 highway are not contiguous unless one (1) of the following
12 requirements is met:
13 (1) The municipality obtains the written consent of the owners of
14 all property:
15 (A) adjacent to the entire length of the part of the public
16 highway and rights-of-way of the public highway that is being
17 annexed; and
18 (B) not already within the corporate boundaries of the
19 municipality.
20 A waiver of the right of remonstrance executed by a property
21 owner or a successor in title of the property owner for sewer
22 services or water services does not constitute written consent for
23 purposes of this subdivision.
24 (2) All property adjacent to at least one (1) side of the entire
25 length of the part of the public highway or rights-of-way of the
26 public highway being annexed is already within the corporate
27 boundaries of the municipality.
28 (3) All property adjacent to at least one (1) side of the entire
29 length of the part of the public highway or rights-of-way of the
30 public highway being annexed is part of the same annexation
31 ordinance in which the public highway or rights-of-way of a
32 public highway are being annexed.
33 A municipality may not annex a public highway or the rights-of-way of
34 a public highway or annex territory adjacent to the public highway or
35 rights-of-way of a public highway unless the requirements of this
36 section are met.
37 SECTION 3. IC 36-4-3-1.7, AS AMENDED BY P.L.206-2016,
38 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
39 UPON PASSAGE]: Sec. 1.7. (a) This section applies only to an
40 annexation ordinance adopted after June 30, 2015. This section does
41 not apply to an annexation under section 5.1 of this chapter.
42 (b) Not earlier than six (6) months before a municipality introduces
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1 an annexation ordinance, the municipality shall conduct an outreach
2 program to inform citizens regarding the proposed annexation. For an
3 annexation under section 3 or 4 of this chapter, the outreach program
4 must conduct at least six (6) public information meetings regarding the
5 proposed annexation. For an annexation under section 5 of this chapter,
6 the outreach program must conduct at least three (3) public information
7 meetings regarding the proposed annexation. The public information
8 meetings must provide citizens with the following information:
9 (1) Maps showing the proposed boundaries of the annexation
10 territory.
11 (2) Proposed plans for extension of capital and noncapital
12 services in the annexation territory, including proposed dates of
13 extension.
14 (3) Expected fiscal impact on taxpayers in the annexation
15 territory, including any increase in taxes and fees.
16 (c) The municipality shall provide notice of the dates, times, and
17 locations of the outreach program meetings. The municipality shall
18 publish the notice of the meetings under IC 5-3-1, including the date,
19 time, and location of the meetings, except that notice must be published
20 not later than thirty (30) days before the date of each meeting. The
21 municipality shall also send notice to each owner of land within the
22 annexation territory not later than thirty (30) days before the date of the
23 first meeting of the outreach program. The notice to landowners shall
24 be sent by first class mail, certified mail with return receipt requested,
25 or any other means of delivery that includes a return receipt and must
26 include the following information:
27 (1) The notice to the landowner must inform the landowner that
28 the municipality is proposing to annex territory that includes the
29 landowner's property.
30 (2) The municipality is conducting an outreach program for the
31 purpose of providing information to landowners and the public
32 regarding the proposed annexation.
33 (3) The date, time, and location of the meetings to be conducted
34 under the outreach program.
35 (d) The notice shall be sent to the address of the landowner as listed
36 on the tax duplicate. If the municipality provides evidence that the
37 notice was sent:
38 (1) by certified mail, with return receipt requested or any other
39 means of delivery that includes a return receipt; and
40 (2) in accordance with this section;
41 it is not necessary that the landowner accept receipt of the notice.
42 (e) This subsection applies only to an annexation for which an
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1 annexation ordinance is adopted after June 30, 2015, and before
2 April 1, 2022. If a remonstrance is filed under section 11 of this
3 chapter, the municipality shall file with the court proof that notices
4 were sent to landowners under this section and proof of publication.
5 (e) (f) The notice required under this section is in addition to any
6 notice required under sections 2.1 and 2.2 of this chapter.
7 SECTION 4. IC 36-4-3-3.1 IS AMENDED TO READ AS
8 FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 3.1. (a) This
9 section does not apply to an annexation under:
10 (1) section 4(a)(2), 4(a)(3), 4(b), 4(h), or 4.1 of this chapter; or
11 (2) section 5.1 of this chapter, for which an annexation
12 ordinance is adopted after March 31, 2022.
13 (b) A municipality shall develop and adopt a written fiscal plan and
14 establish a definite policy by resolution of the legislative body that
15 meets the requirements set forth in section 13 of this chapter.
16 (c) Except as provided in subsection (d), the municipality shall
17 establish and adopt the written fiscal plan before mailing the
18 notification to landowners in the territory proposed to be annexed
19 under section 2.2 of this chapter.
20 (d) In an annexation under section 5 or 5.1 5.5 of this chapter, the
21 municipality shall establish and adopt the written fiscal plan before
22 adopting the annexation ordinance.
23 SECTION 5. IC 36-4-3-5, AS AMENDED BY P.L.149-2016,
24 SECTION 96, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
25 UPON PASSAGE]: Sec. 5. (a) This subsection applies only to a
26 petition requesting annexation that is filed before July 1, 2015. If the
27 owners of land located outside of but contiguous to a municipality want
28 to have territory containing that land annexed to the municipality, they
29 may file with the legislative body of the municipality a petition:
30 (1) signed by at least:
31 (A) fifty-one percent (51%) of the owners of land in the
32 territory sought to be annexed; or
33 (B) the owners of seventy-five percent (75%) of the total
34 assessed value of the land for property tax purposes; and
35 (2) requesting an ordinance annexing the area described in the
36 petition.
37 (b) This subsection applies only to a petition requesting annexation
that is filed after June 30, 2015. 38 A municipality may not collect
39 signatures on an annexation petition that is filed with the legislative
40 body under this section after March 31, 2022. If the owners of land
41 located outside of but contiguous to a municipality want to have
42 territory containing that land annexed to the municipality, they may file
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1 with the legislative body of the municipality a petition that meets the
2 following requirements:
3 (1) The petition is signed by at least one (1) of the following:
4 (A) Fifty-one percent (51%) of the owners of land in the
5 territory sought to be annexed. An owner of land may not:
6 (i) be counted in calculating the total number of owners of
7 land in the annexation territory; or
8 (ii) have the owner's signature counted;
9 with regard to any single property that the owner has an
10 interest in that was exempt from property taxes under
11 IC 6-1.1-10 or any other state law for the immediately
12 preceding year.
13 (B) The owners of seventy-five percent (75%) of the total
14 assessed value of the land for property tax purposes. Land that
15 was exempt from property taxes under IC 6-1.1-10 or any
16 other state law for the immediately preceding year may not be
17 included in calculating the total assessed valuation of the land
18 in the annexation territory. The court may not count an owner's
19 signature on a petition with regard to any single property that
20 the owner has an interest in that was exempt from property
21 taxes under IC 6-1.1-10 or any other state law for the
22 immediately preceding year.
23 (2) The petition requests an ordinance annexing the area
24 described in the petition.
25 (c) The petition circulated by the landowners must include on each
26 page where signatures are affixed a heading that is substantially similar
27 to the following:
28 "PETITION FOR ANNEXATION INTO THE (insert whether city
29 or town) OF (insert name of city or town).".
30 (d) If the legislative body fails to pass the ordinance within one
31 hundred fifty (150) days after the date of filing of a petition under
32 subsection (a) or (b), the petitioners may file a duplicate copy of the
33 petition in the circuit or superior court of a county in which the territory
34 is located, and shall include a written statement of why the annexation
35 should take place. Notice of the proceedings, in the form of a
36 summons, shall be served on the municipality named in the petition.
37 The municipality is the defendant in the cause and shall appear and
38 answer.
39 (e) The court shall hear and determine the petition without a jury,
40 and shall order the proposed annexation to take place only if the
41 evidence introduced by the parties establishes that:
42 (1) essential municipal services and facilities are not available to
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1 the residents of the territory sought to be annexed;
2 (2) the municipality is physically and financially able to provide
3 municipal services to the territory sought to be annexed;
4 (3) the population density of the territory sought to be annexed is
5 at least three (3) persons per acre; and
6 (4) the territory sought to be annexed is contiguous to the
7 municipality.
8 If the evidence does not establish all four (4) of the preceding factors,
9 the court shall deny the petition and dismiss the proceeding.
10 (f) This subsection does not apply to a town that has abolished town
11 legislative body districts under IC 36-5-2-4.1. An ordinance adopted
12 under this section must assign the territory annexed by the ordinance
13 to at least one (1) municipal legislative body district.
14 SECTION 6. IC 36-4-3-5.1, AS AMENDED BY P.L.160-2020,
15 SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
16 UPON PASSAGE]: Sec. 5.1. (a) Owners of land that is located outside
17 but contiguous to a municipality or that is located in territory described
18 in section 4(i) of this chapter may file a petition with the legislative
19 body of the municipality:
20 (1) requesting an ordinance annexing the area described in the
21 petition; and
22 (2) signed by:
23 (A) one hundred percent (100%) of the landowners that reside
24 within the territory that is proposed to be annexed, in the case
25 of a petition filed before July 1, 2015; and
26 (B) in the case of a petition filed after June 30, 2015, one
27 hundred percent (100%) of the owners of land within the
28 territory that is proposed to be annexed.
29 (b) Sections 2.1 and 2.2 of this chapter do not apply to an
30 annexation under this section.
31 (c) The petition circulated by the landowners must include on each
32 page where signatures are affixed a heading that is substantially similar
33 to the following:
34 "PETITION FOR ANNEXATION INTO THE (insert whether city
35 or town) OF (insert name of city or town).".
36 (d) The municipality may (1) adopt an annexation ordinance
37 annexing the territory and (2) adopt a fiscal plan and establish a
38 definite policy by resolution of the legislative body; after the legislative
39 body has held a public hearing on the proposed annexation.
40 (e) The municipality may introduce and hold the public hearing on
41 the annexation ordinance not later than thirty (30) days after the
42 petition is filed with the legislative body. Notice of the public hearing
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1 may be published one (1) time in accordance with IC 5-3-1 at least
2 twenty (20) days before the hearing. All interested parties must have
3 the opportunity to testify at the hearing as to the proposed annexation.
4 (f) The municipality may adopt the annexation ordinance not earlier
5 than fourteen (14) days after the public hearing under subsection (e).
6 (g) A landowner may withdraw the landowner's signature from the
7 petition not more than thirteen (13) days after the municipality adopts
8 the fiscal plan date of the public hearing under subsection (e) by
9 providing written notice to the office of the clerk of the municipality.
10 If a landowner withdraws the landowner's signature, the petition shall
11 automatically be considered a voluntary petition that is filed with the
12 legislative body under section 5 of this chapter, fourteen (14) days after
13 the date the fiscal plan is adopted. of the public hearing under
14 subsection (e). All provisions applicable to a petition initiated under
15 section 5 of this chapter apply to the petition.
16 (h) If the municipality does not adopt an annexation ordinance
17 within sixty (60) days after the landowners file the petition with the
18 legislative body, the landowners may file a duplicate petition with the
19 circuit or superior court of a county in which the territory is located.
20 The court shall determine whether the annexation shall take place as
21 set forth in section 5 of this chapter.
22 (i) A remonstrance under section 11 of this chapter may not be filed.
23 However, an appeal under section 15.5 of this chapter may be filed.
24 (j) (i) In the absence of an appeal under section 15.5 of this chapter,
25 an annexation ordinance adopted under this section takes effect not less
26 than thirty (30) days after the adoption of the ordinance and upon the
27 filing and recording of the ordinance under section 22 of this chapter.
28 SECTION 7. IC 36-4-3-5.5 IS ADDED TO THE INDIANA CODE
29 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
30 UPON PASSAGE]: Sec. 5.5. (a) This section does not apply to an
31 annexation under section 5 or 5.1 of this chapter.
32 (b) This section applies only to an annexation for which an
33 annexation ordinance is adopted after March 31, 2022.
34 (c) After adopting an annexation ordinance under section 3 or
35 4 of this chapter, in order for the annexation to proceed, the
36 municipality must file a written petition under subsection (f) signed
37 by owners of land in the territory proposed to be annexed who are
38 in favor of the annexation. The petition must be signed by:
39 (1) at least fifty-one percent (51%) of the owners of land:
40 (A) not exempt from property taxes under IC 6-1.1-10 or
any other state law; and41
42 (B) in the territory proposed to be annexed; or
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1 (2) the owners of more than seventy-five percent (75%) in
2 assessed valuation of land:
3 (A) not exempt from property taxes under IC 6-1.1-10 or
4 any other state law; and
5 (B) in the territory proposed to be annexed.
6 (d) The petition circulated by the municipality must include on
7 each page where signatures are affixed a heading that is
8 substantially similar to the following:
9 "PETITION FOR ANNEXATION INTO THE (insert
10 whether city or town) OF (insert name of city or town).".
11 (e) A landowner may withdraw the landowner's signature from
12 the petition not more than ten (10) days after the municipality
13 adopts the annexation ordinance by providing written notice to the
14 office of the clerk of the municipality. A landowner who withdraws
15 the landowner's signature from the petition is considered not to
16 have signed the petition for purposes of subsection (h)(2).
17 (f) The municipality must file the petition with the circuit or
18 superior court of the county where the municipality is located not
19 later than ninety (90) days after the publication of the annexation
20 ordinance under section 7 of this chapter. The petition must be
21 accompanied by:
22 (1) a copy of the ordinance; and
23 (2) the names and addresses of all persons who meet the
24 requirements of subsection (h).
25 (g) On receipt of the petition, the court shall determine whether
26 the petition has the necessary signatures. In determining the total
27 number of landowners of the territory proposed to be annexed and
28 whether signers of the petition are landowners, the names
29 appearing on the tax duplicate for that territory constitute prima
30 facie evidence of ownership. Only one (1) person having an interest
31 in each single property, as evidenced by the tax duplicate, is
32 considered a landowner for purposes of this section. A person is
33 entitled to sign a petition only one (1) time, regardless of whether
34 the person owns more than one (1) parcel of real property. If the
35 court determines that the municipality's petition has a sufficient
36 number of signatures, the court shall fix a time, not later than sixty
37 (60) days after its determination, for a hearing on the petition.
38 (h) A person may intervene as a party at the hearing described
39 in subsection (g) if the following requirements are satisfied:
40 (1) The person owns, solely or with another person, property
41 that is in the territory proposed to be annexed.
42 (2) None of the owners of the property signed the petition filed
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1 by the municipality.
2 (3) The person appeared in person or submitted a
3 remonstrance or other document objecting to the annexation
4 into the record of the municipality's hearing on the
5 annexation ordinance under section 2.1 of this chapter.
6 The court shall give a person described in this subsection notice of
7 the hearing on the petition by certified mail.
8 SECTION 8. IC 36-4-3-5.6 IS ADDED TO THE INDIANA CODE
9 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
10 UPON PASSAGE]: Sec. 5.6. (a) This section applies only to an
11 annexation for which an annexation ordinance is adopted after
12 March 31, 2022.
13 (b) A waiver or release of the right of remonstrance by a
14 landowner or successor in title is void and may not be considered
15 or counted as a valid signature on a petition in favor of annexation
16 under section 5, 5.1, or 5.5 of this chapter.
17 (c) If, with regard to a signature on a petition for annexation
18 under section 5, 5.1, or 5.5 of this chapter:
19 (1) the validity of a signature is uncertain; and
20 (2) this section does not establish a standard to be applied in
21 the case;
22 a reasonable doubt must be resolved in favor of the validity of the
23 signature.
24 (d) Whenever the name of an individual, as printed or signed,
25 contains a minor variation from the name of the individual as set
26 forth in the relevant county records, the signature is considered
27 valid.
28 (e) Whenever the residence address or mailing address of an
29 individual contains a minor variation from the residence address
30 or mailing address as set forth in the relevant county records, the
signature is considered valid.31
32 (f) If the residence address or mailing address of an individual
33 contains a substantial variation from the residence address or
34 mailing address as set forth in the relevant county records, the
35 signature is considered invalid.
36 (g) If the signature of an individual does not substantially
37 conform with the signature of the individual in relevant county
38 records, the signature is considered invalid. In determining
39 whether a signature substantially conforms with the signature in
40 the relevant county records, consideration shall be given to
41 whether that lack of conformity may reasonably be attributed to
42 the age, disability, or impairment of the individual.
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1 SECTION 9. IC 36-4-3-7, AS AMENDED BY P.L.236-2019,
2 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 UPON PASSAGE]: Sec. 7. (a) After an ordinance is adopted under
4 section 3, 4, 5, or 5.1 of this chapter, it must be published in the
5 manner prescribed by IC 5-3-1.
6 (b) This subsection applies only to an annexation for which an
7 annexation ordinance is adopted before April 1, 2022. Except as
8 provided in subsection (b), (c) (d), or (f), (e), in the absence of
9 remonstrance and appeal under section 11 or 15.5 of this chapter, the
10 ordinance takes effect at least ninety (90) days after its publication and
11 upon the filing required by section 22(a) of this chapter.
12 (c) An annexation ordinance takes effect as follows:
13 (1) This subdivision applies to an annexation under section 5
14 of this chapter. Except as provided in subsection (e), in the
15 absence of an appeal under section 15.5 of this chapter, the
16 annexation ordinance takes effect at least ninety (90) days
17 after its publication and upon the filing under section 22(a) of
18 this chapter.
19 (2) This subdivision applies to an annexation under section 5.1
20 of this chapter. Except as provided in subsection (e), in the
21 absence of an appeal under section 15.5 of this chapter, the
22 ordinance takes effect at least thirty (30) days after the
23 adoption of the ordinance and upon the filing under section
24 22(a) of this chapter.
25 (3) This subdivision applies to an annexation under section 5.5
26 of this chapter. Except as provided in subsection (e), if a final
27 and unappealable judgment under section 12 or 15.5 of this
28 chapter is entered in favor of the annexation, the annexation
29 is effective upon the filing under section 22(a) of this chapter.
30 (4) This subdivision applies to an annexation under section 7.1
31 of this chapter for which an annexation ordinance is adopted
32 after March 31, 2022. If a final and unappealable judgment
33 under section 12 or 15.5 of this chapter is entered in favor of
34 the annexation, the annexation is effective upon the filing
35 under section 22(a) of this chapter.
36 (b) An ordinance described in subsection (d) or adopted under
37 section 3, 4, 5, or 5.1 of this chapter may not take effect during the year
38 preceding a year in which a federal decennial census is conducted. An
39 ordinance that would otherwise take effect during the year preceding
40 a year in which a federal decennial census is conducted takes effect
41 January 1 of the year in which a federal decennial census is conducted.
42 (c) (d) Subsections (d) and (e) (e) and (f) apply to fire protection
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1 districts that are established after July 1, 1987, and to which subsection
(g) does not apply. 2 For the purposes of this section, territory that has
3 been:
4 (1) added to an existing fire protection district under
5 IC 36-8-11-11; or
6 (2) approved by ordinance of the county legislative body to be
7 added to an existing fire protection district under IC 36-8-11-11,
8 notwithstanding that the territory's addition to the fire protection
9 district has not yet taken effect;
10 shall be considered a part of the fire protection district as of the date
11 that the fire protection district was originally established.
12 (d) Except as provided in subsection (b), (e) Whenever a
13 municipality annexes territory, all or part of which lies within a fire
14 protection district (IC 36-8-11), the annexation ordinance in the
15 absence of remonstrance and appeal under section 11 or 15.5 of this
16 chapter (in the case of an annexation for which an annexation
17 ordinance is adopted before April 1, 2022) or in the absence of a
18 hearing or an appeal under section 12 or 15.5 of this chapter (in the
19 case of an annexation for which an annexation ordinance is
20 adopted after March 31, 2022) takes effect the second January 1 that
21 follows the date the ordinance is adopted and upon the filing required
22 by section 22(a) of this chapter. Except in the case of an annexation to
23 which subsection (g) applies, the municipality shall:
24 (1) provide fire protection to that territory beginning the date the
25 ordinance is effective; and
26 (2) send written notice to the fire protection district of the date the
27 municipality will begin to provide fire protection to the annexed
28 territory within ten (10) days of the date the ordinance is adopted.
29 (e) (f) If the fire protection district from which a municipality
30 annexes territory under subsection (d) (e) is indebted or has
31 outstanding unpaid bonds or other obligations at the time the
32 annexation is effective, the municipality is liable for and shall pay that
33 indebtedness in the same ratio as the assessed valuation of the property
34 in the annexed territory (that is part of the fire protection district) bears
35 to the assessed valuation of all property in the fire protection district,
36 as shown by the most recent assessment for taxation before the
37 annexation, unless the assessed property within the municipality is
38 already liable for the indebtedness. The annexing municipality shall
39 pay its indebtedness under this section to the board of fire trustees. If
40 the indebtedness consists of outstanding unpaid bonds or notes of the
41 fire protection district, the payments to the board of fire trustees shall
42 be made as the principal or interest on the bonds or notes becomes due.
SB 73—LS 6364/DI 87 13
1 (f) This subsection applies to an annexation initiated by property
2 owners under section 5.1 of this chapter in which all property owners
3 within the area to be annexed petition the municipality to be annexed.
4 Subject to subsections (b) and (d), and in the absence of an appeal
5 under section 15.5 of this chapter, an annexation ordinance takes effect
6 at least thirty (30) days after its publication and upon the filing required
7 by section 22(a) of this chapter.
8 (g) Whenever a municipality annexes territory that lies within a fire
9 protection district that has a total net assessed value (as determined by
10 the county auditor) of more than one billion dollars ($1,000,000,000)
11 on the date the annexation ordinance is adopted:
12 (1) the annexed area shall remain a part of the fire protection
13 district after the annexation takes effect; and
14 (2) the fire protection district shall continue to provide fire
15 protection services to the annexed area.
16 The municipality shall not tax the annexed territory for fire protection
17 services. The annexing municipality shall establish a special fire fund
18 for all fire protection services that are provided by the municipality
19 within the area of the municipality that is not within the fire protection
20 district, and which shall not be assessed to the annexed special taxing
21 district. The annexed territory that lies within the fire protection district
22 shall continue to be part of the fire protection district special taxing
23 district.
24 SECTION 10. IC 36-4-3-7.1, AS AMENDED BY P.L.257-2019,
25 SECTION 111, IS AMENDED TO READ AS FOLLOWS
26 [EFFECTIVE UPON PASSAGE]: Sec. 7.1. (a) Notwithstanding
27 section 7(b) of this chapter, An ordinance adopted under section 4 or
28 5.1 of this chapter that meets the conditions set forth in subsection
29 (b) takes effect as follows:
30 (1) In the case of an annexation for which an annexation
31 ordinance was adopted before April 1, 2022, the ordinance
32 takes effect immediately:
33 (A) upon the expiration of the remonstrance and appeal period
34 under section 11, 11.1, or 15.5 of this chapter; and
35 (B) after the publication, filing, and recording required by
36 section 22(a) of this chapter. if all of the following conditions
37 are met:
38 (2) In the case of an annexation for which an annexation
39 ordinance was adopted after March 31, 2022, the ordinance
40 takes effect as set forth in section 7(c)(4) of this chapter.
41 (b) This section applies to an annexation that meets all of the
42 following conditions:
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1 (1) The annexed territory has no population.
2 (2) Ninety percent (90%) of the total assessed value of the land
3 for property tax purposes has one (1) owner.
4 (3) The annexation is required to fulfill an economic development
5 incentive package and to retain an industry through various local
6 incentives, including urban enterprise zone benefits.
7 SECTION 11. IC 36-4-3-11, AS AMENDED BY P.L.206-2016,
8 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
9 UPON PASSAGE]: Sec. 11. (a) This subsection applies only to an
10 annexation for which an annexation ordinance was adopted before July
11 1, 2015. Except as provided in section 5.1(i) of this chapter (as in
12 effect on July 1, 2015) and subsections subsection (e), and (f),
13 whenever territory is annexed by a municipality under this chapter, the
14 annexation may be appealed by filing with the circuit or superior court
15 of a county in which the annexed territory is located a written
16 remonstrance signed by:
17 (1) at least sixty-five percent (65%) of the owners of land in the
18 annexed territory; or
19 (2) the owners of more than seventy-five percent (75%) in
20 assessed valuation of the land in the annexed territory.
21 The remonstrance must be filed within ninety (90) days after the
22 publication of the annexation ordinance under section 7 of this chapter,
23 must be accompanied by a copy of that ordinance, and must state the
24 reason why the annexation should not take place.
25 (b) This subsection applies only to an annexation for which an
26 annexation ordinance was adopted before July 1, 2015. On receipt of
27 the remonstrance, the court shall determine whether the remonstrance
28 has the necessary signatures. In determining the total number of
29 landowners of the annexed territory and whether signers of the
30 remonstrance are landowners, the names appearing on the tax duplicate
31 for that territory constitute prima facie evidence of ownership. Only
32 one (1) person having an interest in each single property, as evidenced
33 by the tax duplicate, is considered a landowner for purposes of this
34 section.
35 (c) This subsection applies only to an annexation for which an
36 annexation ordinance was adopted before July 1, 2015. If the court
37 determines that the remonstrance is sufficient, the court shall fix a time,
38 within sixty (60) days after the court's determination, for a hearing on
39 the remonstrance. Notice of the proceedings, in the form of a summons,
40 shall be served on the annexing municipality. The municipality is the
41 defendant in the cause and shall appear and answer.
42 (d) This subsection applies only to an annexation for which an
SB 73—LS 6364/DI 87 15
1 annexation ordinance was adopted after June 30, 2015, and before
2 April 1, 2022. If the requirements of section 11.3(c) or (after
3 December 31, 2016) section 11.4 of this chapter are met, the
4 annexation may be appealed by filing with the circuit or superior court
5 of a county in which the annexed territory is located:
6 (1) the signed remonstrances filed with the county auditor;
7 (2) the county auditor's certification under section 11.2(i) of this
8 chapter;
9 (3) the annexation ordinance; and
10 (4) a statement of the reason why the annexation should not take
11 place.
12 The remonstrance must be filed with the court not later than fifteen
13 (15) business days after the date the county auditor files the certificate
14 with the legislative body under section 11.2(i) of this chapter. After a
15 remonstrance petition is filed with the court, any person who signed a
16 remonstrance may file with the court a verified, written revocation of
17 the person's opposition to the annexation.
18 (e) If an annexation is initiated by property owners under section 5.1
19 of this chapter and all property owners within the area to be annexed
20 petition the municipality to be annexed, a remonstrance to the
21 annexation may not be filed under this section.
22 (f) (e) This subsection applies only to an annexation for which an
23 annexation ordinance is adopted before July 1, 2015. This subsection
24 applies if:
25 (1) the territory to be annexed consists of not more than one
26 hundred (100) parcels; and
27 (2) eighty percent (80%) of the boundary of the territory proposed
28 to be annexed is contiguous to the municipality.
29 An annexation may be appealed by filing with the circuit or superior
30 court of a county in which the annexed territory is located a written
31 remonstrance signed by at least seventy-five percent (75%) of the
32 owners of land in the annexed territory as determined under subsection
33 (b).
34 SECTION 12. IC 36-4-3-11.1, AS ADDED BY P.L.228-2015,
35 SECTION 13, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
36 UPON PASSAGE]: Sec. 11.1. (a) This section applies only to an
37 annexation ordinance adopted after June 30, 2015, and before April
38 1, 2022.
39 (b) After a municipality adopts an annexation ordinance in
40 accordance with all applicable notice and hearing requirements under
41 this chapter, the annexation may not proceed unless the annexing
42 municipality completes the procedures set forth in this section.
SB 73—LS 6364/DI 87 16
1 (c) The proper officers of the municipality must give notice of the
2 applicability of the remonstrance process by providing notice by:
3 (1) publication in accordance with IC 5-3-1; and
4 (2) first class mail or certified mail with return receipt requested,
5 or any other means of delivery that includes a return receipt;
6 to the circuit court clerk and to owners of real property described in
7 section 2.2 of this chapter. Notice under this section must be published
8 and mailed or delivered on the same date that notice of the adoption of
9 the annexation ordinance is published under section 7 of this chapter.
10 (d) The notice of the applicability of the remonstrance process under
11 subsection (c) must state the following:
12 (1) Any owners of real property within the area proposed to be
13 annexed who want to remonstrate against the proposed
14 annexation must complete and file remonstrance petitions in
15 compliance with this chapter. The notice must state:
16 (A) that remonstrance petitions must be filed not later than
17 ninety (90) days after the date that notice of the adoption of the
18 annexation ordinance was published under section 7 of this
19 chapter; and
20 (B) the last date in accordance with clause (A) that
21 remonstrance petitions must be filed with the county auditor
22 to be valid.
23 (2) A remonstrance petition may be signed at the locations
24 provided by the municipality under subsection (e). The notice
25 must provide the following information regarding each location:
26 (A) The address of the location.
27 (B) The dates and hours during which a remonstrance petition
28 may be signed at the location.
29 (e) Beginning the day after publication of the notice under
30 subsection (c) and ending not later than ninety (90) days after
31 publication of the notice under subsection (c), the municipality shall
32 provide both of the following:
33 (1) At least one (1) location in the offices of the municipality
34 where a person may sign a remonstrance petition during regular
35 business hours.
36 (2) At least one (1) additional location that is available for at least
37 five (5) days, where a person may sign a remonstrance petition.
38 The location must meet the following requirements:
39 (A) The location must be in a public building:
40 (i) owned or leased by the state or a political subdivision,
41 including a public library, community center, or parks and
42 recreation building; and
SB 73—LS 6364/DI 87 17
1 (ii) located within the boundaries of the municipality or the
2 annexation territory.
3 (B) The location must be open according to the following:
4 (i) On a day that the location is open on a weekday, the
5 location must be open at a minimum from 5 p.m. to 9 p.m.
6 (ii) On a day that the location is open on a Saturday or
7 Sunday, the location must be open at least four (4) hours
8 during the period from 9 a.m. to 5 p.m.
9 (f) An additional location may not be open on a day that is a legal
10 holiday. At any location and during the hours that a remonstrance
11 petition may be signed, the municipality shall have a person present:
12 (1) to witness the signing of remonstrance petitions; and
13 (2) who shall swear and affirm before a notary public that the
14 person witnessed each person sign the remonstrance petition.
15 SECTION 13. IC 36-4-3-11.2, AS AMENDED BY P.L.206-2016,
16 SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
17 UPON PASSAGE]: Sec. 11.2. (a) This section applies only to an
18 annexation ordinance adopted after June 30, 2015, and before April
19 1, 2022.
20 (b) A remonstrance petition may be filed by an owner of real
21 property that:
22 (1) is within the area to be annexed;
23 (2) was not exempt from property taxes under IC 6-1.1-10 or any
24 other state law for the immediately preceding year; and
25 (3) is not subject to a valid waiver of remonstrance.
26 (c) A remonstrance petition must comply with the following in order
27 to be effective:
28 (1) Each signature on a remonstrance petition must be dated, and
29 the date of the signature may not be earlier than the date on which
30 the remonstrance forms may be issued by the county auditor
31 under subsection (e)(7).
32 (2) Each person who signs a remonstrance petition must indicate
33 the address of the real property owned by the person in the area
34 to be annexed.
35 (3) A remonstrance petition must be verified in compliance with
36 subsection (e).
37 (d) The state board of accounts shall design the remonstrance forms
38 to be used solely in the remonstrance process described in this section.
39 The state board of accounts shall provide the forms to the county
40 auditor in an electronic format that permits the county auditor to copy
41 or reproduce the forms using:
42 (1) the county auditor's own equipment; or
SB 73—LS 6364/DI 87 18
1 (2) a commercial copying service.
2 The annexing municipality shall reimburse the county auditor for the
3 cost of reproducing the remonstrance forms.
4 (e) The county auditor's office shall issue remonstrance forms
5 accompanied by instructions detailing all of the following
6 requirements:
7 (1) The closing date for the remonstrance period.
8 (2) Only one (1) person having an interest in each single property
9 as evidenced by the tax duplicate is considered an owner of
10 property and may sign a remonstrance petition. A person is
11 entitled to sign a petition only one (1) time in a remonstrance
12 process, regardless of whether the person owns more than one (1)
13 parcel of real property.
14 (3) An individual may not be:
15 (A) compensated for; or
16 (B) reimbursed for expenses incurred in;
17 circulating a remonstrance petition and obtaining signatures.
18 (4) The remonstrance petition may be executed in several
19 counterparts, the total of which constitutes the remonstrance
20 petition. An affidavit of the person circulating a counterpart must
21 be attached to the counterpart. The affidavit must state that each
22 signature appearing on the counterpart was affixed in the person's
23 presence and is the true and lawful signature of the signer. The
24 affidavit must be notarized.
25 (5) A remonstrance petition that is not executed in counterparts
26 must be verified by the person signing the petition in the manner
27 prescribed by the state board of accounts and notarized.
28 (6) A remonstrance petition may be delivered to the county
29 auditor's office in person or by:
30 (A) certified mail, return receipt requested; or
31 (B) any other means of delivery that includes a return receipt.
32 The remonstrance petition must be postmarked not later than the
33 closing date for the remonstrance period.
34 (7) The county auditor's office may not issue a remonstrance
35 petition earlier than the day that notice is published under section
36 11.1 of this chapter. The county auditor's office shall certify the
37 date of issuance on each remonstrance petition. Any person may
38 pick up additional copies of the remonstrance petition to
39 distribute to other persons.
40 (8) A person who signs a remonstrance petition may withdraw the
41 person's signature from a remonstrance petition before a
42 remonstrance petition is filed with the county auditor by filing a
SB 73—LS 6364/DI 87 19
1 verified request to remove the person's name from the
2 remonstrance petition. Names may not be added to a
3 remonstrance petition after the remonstrance petition is filed with
4 the county auditor.
5 (f) The county auditor shall prepare and update weekly a list of the
6 persons who have signed a remonstrance petition. The list must include
7 a statement that the list includes all persons who have signed a
8 remonstrance petition as of a particular date, and does not represent a
9 list of persons certified by the county auditor as actual landowners in
10 the annexation territory using the auditor's current tax records under
11 subsection (i). The county auditor shall post the list in the office of the
12 county auditor. The list is a public record under IC 5-14-3.
13 (g) Not later than five (5) business days after receiving the
14 remonstrance petition, the county auditor shall submit a copy of the
15 remonstrance petition to the legislative body of the annexing
16 municipality.
17 (h) Not later than fifteen (15) business days after the legislative
18 body of the annexing municipality receives a copy of the remonstrance
19 petition from the county auditor, the annexing municipality shall
20 provide documentation to the county auditor regarding any valid waiver
21 of the right of remonstrance that exists on the property within the
22 annexation territory.
23 (i) Not later than fifteen (15) business days after receiving the
24 documentation regarding any valid waiver of the right of remonstrance
25 from the annexing municipality under subsection (h), if any, the county
26 auditor's office shall make a final determination of the number of
27 owners of real property within the territory to be annexed:
28 (1) who signed the remonstrance; and
29 (2) whose property is not subject to a valid waiver of the right of
30 remonstrance;
31 using the auditor's current tax records as provided in section 2.2 of this
32 chapter. The county auditor shall file a certificate with the legislative
33 body of the annexing municipality certifying the number of property
34 owners not later than five (5) business days after making the
35 determination.
36 SECTION 14. IC 36-4-3-11.3, AS ADDED BY P.L.228-2015,
37 SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
38 UPON PASSAGE]: Sec. 11.3. (a) This section applies only to an
39 annexation ordinance adopted after June 30, 2015, and before April
40 1, 2022.
41 (b) An annexation ordinance is void if a written remonstrance
42 petition is signed by one (1) of the following:
SB 73—LS 6364/DI 87 20
1 (1) At least sixty-five percent (65%) of the owners of land in the
2 annexed territory. An owner of land may not:
3 (A) be counted in calculating the total number of owners of
4 land in the annexation territory; or
5 (B) have the owner's signature counted on a remonstrance;
6 with regard to any single property that an owner has an interest in
7 that was exempt from property taxes under IC 6-1.1-10 or any
8 other state law for the immediately preceding year.
9 (2) The owners of at least eighty percent (80%) in assessed
10 valuation of the land in the annexed territory. Land that was
11 exempt from property taxes under IC 6-1.1-10 or any other state
12 law for the immediately preceding year may not be included in
13 calculating the total assessed valuation of the land in the
14 annexation territory. The court may not count the owner's
15 signature on a remonstrance with regard to any single property
16 that the owner has an interest in that was exempt from property
17 taxes under IC 6-1.1-10 or any other state law for the immediately
18 preceding year.
19 (c) The annexation may be appealed to the court under section 11
20 of this chapter, if a written remonstrance is signed by one (1) of the
21 following:
22 (1) At least fifty-one percent (51%) but less than sixty-five
23 percent (65%) of the owners of land. An owner of land may not:
24 (A) be counted in calculating the total number of owners of
25 land in the annexation territory; or
26 (B) have the owner's signature counted on a remonstrance;
27 with regard to any single property that the owner has an interest
28 in that was exempt from property taxes under IC 6-1.1-10 or any
29 other state law for the immediately preceding year.
30 (2) The owners of at least sixty percent (60%) but less than eighty
31 percent (80%) in assessed valuation of land in the annexed
32 territory. Land that was exempt from property taxes under
33 IC 6-1.1-10 or any other state law for the immediately preceding
34 year may not be included in calculating the total assessed
35 valuation of the land in the annexation territory. The court may
36 not count an owner's signature on a remonstrance with regard to
37 any single property that the owner has an interest in that was
38 exempt from property taxes under IC 6-1.1-10 or any other state
39 law for the immediately preceding year.
40 SECTION 15. IC 36-4-3-11.4, AS ADDED BY P.L.228-2015,
41 SECTION 16, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
42 UPON PASSAGE]: Sec. 11.4. (a) This section applies only to an
SB 73—LS 6364/DI 87 21
1 annexation that the meets all of the following requirements:
2 (1) The annexation ordinance is adopted after December 31,
3 2016, and before April 1, 2022.
4 (2) Notwithstanding the contiguity requirements of section 1.5 of
5 this chapter, at least one-tenth (1/10) of the aggregate external
6 boundaries of the territory sought to be annexed coincides with
7 the boundaries of:
8 (A) the municipality; and
9 (B) the site of an economic development project.
10 (b) As used in this section, "economic development project" means
11 any project developed by the municipality that meets all of the
12 following requirements:
13 (1) The annexing municipality determines that the project will:
14 (A) promote significant opportunities for the gainful
employment of its citizens;15
16 (B) attract a major new business enterprise to the municipality;
17 or
18 (C) retain or expand a significant business enterprise within
19 the municipality.
20 (2) The project involves expenditures by the annexing
21 municipality for any of the following:
22 (A) Land acquisition, interests in land, site improvements,
23 infrastructure improvements, buildings, or structures.
24 (B) Rehabilitation, renovation, and enlargement of buildings
25 and structures.
26 (C) Machinery, equipment, furnishings, or facilities.
27 (D) Substance removal or remedial action.
28 (c) Notwithstanding section 11.3(b) of this chapter, even if a
29 remonstrance has enough signatures to satisfy the requirements of
30 section 11.3(b) of this chapter, the annexation ordinance is not void and
31 may be appealed to the court under section 11 of this chapter, if all of
the following requirements are met:32
33 (1) The economic development project site needs the following
34 capital services that the municipality is lawfully able to provide:
35 (A) water;
36 (B) sewer;
37 (C) gas; or
38 (D) any combination of the capital services described in
39 clauses (A) through (C).
40 (2) The municipality finds that it is in the municipality's best
41 interest to annex the annexation territory in order to extend,
42 construct, or operate the capital services that are provided to the
SB 73—LS 6364/DI 87 22
1 economic development project site.
2 (3) Before the date the annexation ordinance is adopted, a
3 taxpayer whose business will occupy the economic development
4 project site has done at least one (1) of the following:
5 (A) Filed a statement of benefits under IC 6-1.1-12.1 with the
6 designating body for the annexing municipality for a deduction
7 or abatement.
8 (B) Entered into an agreement with the Indiana economic
9 development corporation for a credit under IC 6-3.1-13.
10 (d) If the economic development project:
11 (1) has not commenced within twelve (12) months after the date
the annexation 12 ordinance is adopted; or
13 (2) is not completed within thirty-six (36) months after the date
14 the annexation ordinance is adopted;
15 the annexation territory is disannexed from the municipality and reverts
16 to the jurisdiction of the unit having jurisdiction before the annexation.
17 For purposes of this subsection, a an economic development project is
18 considered to have commenced on the day that the physical erection,
19 installation, alteration, repair, or remodeling of a building or structure
20 commences on the site of the economic development project.
21 SECTION 16. IC 36-4-3-11.5 IS AMENDED TO READ AS
22 FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 11.5. (a) A
23 landowner in an unincorporated area is not required to grant a
24 municipality a waiver against remonstrance as a condition of
25 connection to a sewer or water service if all of the following conditions
26 apply:
27 (1) The landowner is required to connect to the sewer or water
28 service because a person other than the landowner has polluted or
29 contaminated the area.
30 (2) A person other than the landowner or the municipality has
31 paid the cost of connection to the service.
32 (b) Notwithstanding any other law, a waiver against
33 remonstrance is effective and binding on a landowner or a
34 successor in title only with regard to an annexation for which the
35 annexation ordinance was adopted before April 1, 2022.
36 SECTION 17. IC 36-4-3-11.6, AS ADDED BY P.L.228-2015,
37 SECTION 17, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
38 UPON PASSAGE]: Sec. 11.6. (a) This section applies to a
39 remonstrance filed after June 30, 2015, and before April 1, 2022.
40 (b) If the court orders an annexation not to take place after a hearing
41 under section 11 of this chapter, the remonstrators shall be reimbursed
42 by the annexing municipality for any reasonable attorney's fees,
SB 73—LS 6364/DI 87 23
1 including litigation expenses and appeal costs:
2 (1) that are incurred:
3 (A) after the date the annexation ordinance is adopted; and
4 (B) in remonstrating against the annexation; and
5 (2) not to exceed thirty-seven thousand five hundred dollars
6 ($37,500).
7 SECTION 18. IC 36-4-3-11.7, AS AMENDED BY P.L.257-2019,
8 SECTION 112, IS AMENDED TO READ AS FOLLOWS
9 [EFFECTIVE UPON PASSAGE]: Sec. 11.7. (a) This subsection
10 applies to any deed recorded after June 30, 2015. This subsection
11 applies only to property that is subject to a remonstrance waiver. A
12 municipality shall, within a reasonable time after the recording of a
13 deed to property located within the municipality, provide written notice
14 to the property owner that a waiver of the right of remonstrance exists
15 with respect to the property.
16 (b) A remonstrance waiver executed before July 1, 2003, is void.
17 This subsection does not invalidate an annexation that was effective on
18 or before July 1, 2019.
19 (c) A remonstrance waiver executed after June 30, 2003, and before
20 July 1, 2019, is subject to the following:
21 (1) The waiver is void unless the waiver was recorded:
22 (A) before January 1, 2020; and
23 (B) with the county recorder of the county where the property
24 subject to the waiver is located.
25 (2) A waiver that is not void under subdivision (1) expires not
26 later than fifteen (15) years after the date the waiver is executed.
27 This subsection does not invalidate an annexation that was effective on
28 or before July 1, 2019.
29 (d) A remonstrance waiver executed after June 30, 2019, is subject
30 to the following: (1) The waiver is void unless the waiver is must be
31 recorded (A) not later than thirty (30) business days after the date the
32 waiver was executed and (B) with the county recorder of the county
33 where the property subject to the waiver is located. (2) A waiver that
34 is not void under subdivision (1) expires not later than fifteen (15)
35 years after the date the waiver is executed. This subsection does not
36 invalidate an annexation that was effective on or before July 1, 2019.
37 (e) Notwithstanding any other law, a remonstrance waiver is
38 effective and binding on a landowner or a successor in title only
39 with regard to an annexation for which the annexation ordinance
40 was adopted before April 1, 2022.
41 SECTION 19. IC 36-4-3-12, AS AMENDED BY P.L.113-2010,
42 SECTION 117, IS AMENDED TO READ AS FOLLOWS
SB 73—LS 6364/DI 87 24
1 [EFFECTIVE UPON PASSAGE]: Sec. 12. (a) The circuit or superior
2 court shall:
3 (1) on the date fixed under:
4 (A) section 11 of this chapter (in the case of an annexation
5 for which an annexation ordinance is adopted before April
6 1, 2022), hear and determine the remonstrance without a jury;
7 or
8 (B) section 5.5 of this chapter (in the case of an annexation
9 for which an annexation ordinance is adopted after March
10 31, 2022), hear and determine the petition without a jury;
11 and
12 (2) without delay, enter judgment on the question of the
13 annexation according to the evidence that either party may
14 introduce.
15 (b) If the court enters judgment in favor of the annexation, the
16 annexation may not take effect during the year preceding the year in
17 which a federal decennial census is conducted. An annexation that
18 would otherwise take effect during the year preceding a year in which
19 a federal decennial census is conducted takes effect January 1 of the
20 year in which a federal decennial census is conducted.
21 SECTION 20. IC 36-4-3-13, AS AMENDED BY P.L.206-2016,
22 SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
23 UPON PASSAGE]: Sec. 13. (a) Except as provided in subsection (e),
24 at the hearing under section 12 of this chapter, the court shall order a
25 proposed annexation to take place if the following requirements are
26 met:
27 (1) The requirements of either subsection (b) or (c).
28 (2) The requirements of subsection (d).
29 (3) The requirements of subsection (i) (in the case of an
30 annexation for which an annexation ordinance is adopted
31 before April 1, 2022).
32 (b) The requirements of this subsection are met if the evidence
33 establishes the following:
34 (1) That the territory sought to be annexed is contiguous to the
35 municipality.
36 (2) One (1) of the following:
37 (A) The resident population density of the territory sought to
38 be annexed is at least three (3) persons per acre.
39 (B) Sixty percent (60%) of the territory is subdivided.
40 (C) The territory is zoned for commercial, business, or
41 industrial uses.
42 (c) The requirements of this subsection are met if the evidence
SB 73—LS 6364/DI 87 25
1 establishes one (1) of the following:
2 (1) That the territory sought to be annexed is:
3 (A) contiguous to the municipality as required by section 1.5
4 of this chapter, except that at least one-fourth (1/4), instead of
5 one-eighth (1/8), of the aggregate external boundaries of the
6 territory sought to be annexed must coincide with the
7 boundaries of the municipality; and
8 (B) needed and can be used by the municipality for its
9 development in the reasonably near future.
10 (2) This subdivision applies only to an annexation for which an
11 annexation ordinance is adopted after December 31, 2016, and
12 before April 1, 2022. That the territory sought to be annexed
13 involves an economic development project and the requirements
14 of section 11.4 of this chapter are met.
15 (d) The requirements of this subsection are met if the evidence
16 establishes that the municipality has developed and adopted a written
17 fiscal plan and has established a definite policy, by resolution of the
18 legislative body as set forth in section 3.1 of this chapter. The fiscal
19 plan must show the following:
20 (1) The cost estimates of planned services to be furnished to the
21 territory to be annexed. The plan must present itemized estimated
22 costs for each municipal department or agency.
23 (2) The method or methods of financing the planned services. The
24 plan must explain how specific and detailed expenses will be
25 funded and must indicate the taxes, grants, and other funding to
26 be used.
27 (3) The plan for the organization and extension of services. The
28 plan must detail the specific services that will be provided and the
29 dates the services will begin.
30 (4) That planned services of a noncapital nature, including police
31 protection, fire protection, street and road maintenance, and other
32 noncapital services normally provided within the corporate
33 boundaries, will be provided to the annexed territory within one
34 (1) year after the effective date of annexation and that they will be
35 provided in a manner equivalent in standard and scope to those
36 noncapital services provided to areas within the corporate
37 boundaries regardless of similar topography, patterns of land use,
38 and population density.
39 (5) That services of a capital improvement nature, including street
40 construction, street lighting, sewer facilities, water facilities, and
41 stormwater storm water drainage facilities, will be provided to
42 the annexed territory within three (3) years after the effective date
SB 73—LS 6364/DI 87 26
1 of the annexation in the same manner as those services are
2 provided to areas within the corporate boundaries, regardless of
3 similar topography, patterns of land use, and population density,
4 and in a manner consistent with federal, state, and local laws,
5 procedures, and planning criteria.
6 (6) This subdivision applies to a fiscal plan prepared after June
7 30, 2015. The estimated effect of the proposed annexation on
8 taxpayers in each of the political subdivisions to which the
9 proposed annexation applies, including the expected tax rates, tax
10 levies, expenditure levels, service levels, and annual debt service
11 payments in those political subdivisions for four (4) years after
12 the effective date of the annexation.
13 (7) This subdivision applies to a fiscal plan prepared after June
14 30, 2015. The estimated effect the proposed annexation will have
15 on municipal finances, specifically how municipal tax revenues
16 will be affected by the annexation for four (4) years after the
17 effective date of the annexation.
18 (8) This subdivision applies to a fiscal plan prepared after June
19 30, 2015. Any estimated effects on political subdivisions in the
20 county that are not part of the annexation and on taxpayers
21 located in those political subdivisions for four (4) years after the
22 effective date of the annexation.
23 (9) This subdivision applies to a fiscal plan prepared after June
24 30, 2015. A list of all parcels of property in the annexation
territory and the following information regarding each parcel:25
26 (A) The name of the owner of the parcel.
27 (B) The parcel identification number.
28 (C) The most recent assessed value of the parcel.
29 (D) The existence of a known waiver of the right to
30 remonstrate on the parcel. This clause applies only to a fiscal
31 plan prepared after June 30, 2016, and before April 1, 2022.
32 (e) At the hearing under section 12 of this chapter with regard to
33 an annexation for which an annexation ordinance was adopted
34 before April 1, 2022, the court shall do the following:
35 (1) Consider evidence on the conditions listed in subdivision (2).
36 (2) Order a proposed annexation not to take place if the court
37 finds that all of the following conditions that are applicable to the
38 annexation exist in the territory proposed to be annexed:
39 (A) This clause applies only to an annexation for which an
40 annexation ordinance was adopted before July 1, 2015. The
41 following services are adequately furnished by a provider
42 other than the municipality seeking the annexation:
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1 (i) Police and fire protection.
2 (ii) Street and road maintenance.
3 (B) The annexation will have a significant financial impact on
4 the residents or owners of land. The court may not consider:
5 (i) the personal finances; or
6 (ii) the business finances;
7 of a resident or owner of land. The personal and business
8 financial records of the residents or owners of land, including
9 state, federal, and local income tax returns, may not be subject
10 to a subpoena or discovery proceedings.
11 (C) The annexation is not in the best interests of the owners of
12 land in the territory proposed to be annexed as set forth in
13 subsection (f).
14 (D) This clause applies only to an annexation for which an
15 annexation ordinance is adopted before July 1, 2015. One (1)
16 of the following opposes the annexation:
17 (i) At least sixty-five percent (65%) of the owners of land in
18 the territory proposed to be annexed.
19 (ii) The owners of more than seventy-five percent (75%) in
20 assessed valuation of the land in the territory proposed to be
21 annexed.
22 Evidence of opposition may be expressed by any owner of land
23 in the territory proposed to be annexed.
24 (E) This clause applies only to an annexation for which an
25 annexation ordinance is adopted after June 30, 2015, and
26 before April 1, 2022. One (1) of the following opposes the
27 annexation:
28 (i) At least fifty-one percent (51%) of the owners of land in
29 the territory proposed to be annexed.
30 (ii) The owners of more than sixty percent (60%) in assessed
31 valuation of the land in the territory proposed to be annexed.
32 The remonstrance petitions filed with the court under section
33 11 of this chapter are evidence of the number of owners of
34 land that oppose the annexation, minus any written revocations
35 of remonstrances that are filed with the court under section 11
36 of this chapter.
37 (F) This clause applies only to an annexation for which an
38 annexation ordinance is adopted before July 1, 2015. This
39 clause applies only to an annexation in which eighty percent
40 (80%) of the boundary of the territory proposed to be annexed
41 is contiguous to the municipality and the territory consists of
42 not more than one hundred (100) parcels. At least seventy-five
SB 73—LS 6364/DI 87 28
1 percent (75%) of the owners of land in the territory proposed
2 to be annexed oppose the annexation as determined under
3 section 11(b) of this chapter.
4 (f) This subsection applies only to an annexation for which an
5 annexation ordinance is adopted before April 1, 2022. The
6 municipality under subsection (e)(2)(C) bears the burden of proving
7 that the annexation is in the best interests of the owners of land in the
8 territory proposed to be annexed. In determining this issue, the court
9 may consider whether the municipality has extended sewer or water
10 services to the entire territory to be annexed:
11 (1) within the three (3) years preceding the date of the
12 introduction of the annexation ordinance; or
13 (2) under a contract in lieu of annexation entered into under
14 IC 36-4-3-21.
15 The court may not consider the provision of water services as a result
16 of an order by the Indiana utility regulatory commission to constitute
17 the provision of water services to the territory to be annexed.
18 (g) The most recent:
19 (1) federal decennial census;
20 (2) federal special census;
21 (3) special tabulation; or
22 (4) corrected population count;
23 shall be used as evidence of resident population density for purposes
24 of subsection (b)(2)(A), but this evidence may be rebutted by other
25 evidence of population density.
26 (h) A municipality that prepares a fiscal plan after June 30, 2015,
27 must comply with this subsection. A municipality may not amend the
28 fiscal plan after the date that:
29 (1) a remonstrance is filed with the court under section 11 of this
30 chapter (in the case of an annexation for which an annexation
31 ordinance was adopted before April 1, 2022); or
32 (2) a petition is filed with the court under section 5.5 of this
33 chapter (in the case of an annexation for which an annexation
34 ordinance was adopted after March 31, 2022);
35 unless amendment of the fiscal plan is consented to by at least
36 sixty-five percent (65%) of the persons who signed the remonstrance
or the petition.37
38 (i) The municipality must submit proof that the municipality has
39 complied with:
40 (A) (1) the outreach program requirements and notice
41 requirements of section 1.7 of this chapter; and
42 (B) (2) the requirements of section 11.1 of this chapter (in the
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1 case of an annexation for which an annexation ordinance was
2 adopted after June 30, 2015, and before April 1, 2022).
3 SECTION 21. IC 36-4-3-15, AS AMENDED BY P.L.228-2015,
4 SECTION 21, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
5 UPON PASSAGE]: Sec. 15. (a) The court's judgment under section 12
6 or 15.5 of this chapter must specify the annexation ordinance. on which
7 the remonstrance is based. The clerk of the court shall deliver a
8 certified copy of the final and unappealable judgment to the clerk of the
9 municipality. The clerk of the municipality shall:
10 (1) record the judgment in the clerk's ordinance record; and
11 (2) make a cross-reference to the record of the judgment on the
12 margin of the record of the annexation ordinance.
13 (b) If a final and unappealable judgment under section 12 or 15.5 of
14 this chapter is adverse to annexation, the municipality may not make
15 further attempts to annex the territory or any part of the territory during
16 the four (4) years after the later of:
17 (1) the judgment of the circuit or superior court; or
18 (2) the date of the final disposition of all appeals to a higher court;
19 unless the annexation is petitioned for under section 5 or 5.1 of this
20 chapter.
21 (c) This subsection applies if a municipality repeals the annexation
22 ordinance:
23 (1) less than sixty-one (61) days after the publication of the
24 ordinance under section 7(a) of this chapter; and
25 (2) before the hearing commences:
26 (A) on the remonstrance under section 11(c) of this chapter (in
the 27 case of an annexation for which an annexation
28 ordinance is adopted before April 1, 2022); or
(B) on the petition under section 12 of this chapter (in the29
30 case of an annexation for which an annexation ordinance
31 is adopted after March 31, 2022).
32 A municipality may not make further attempts to annex the territory or
33 any part of the territory during the twelve (12) months after the date the
34 municipality repeals the annexation ordinance. This subsection does
35 not prohibit an annexation of the territory or part of the territory that is
36 petitioned for under section 5 or 5.1 of this chapter.
37 (d) This subsection applies if a municipality repeals the annexation
38 ordinance:
39 (1) at least sixty-one (61) days but not more than one hundred
40 twenty (120) days after the publication of the ordinance under
41 section 7(a) of this chapter; and
42 (2) before the hearing commences:
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1 (A) on the remonstrance under section 11(c) of this chapter (in
2 the case of an annexation for which an annexation
3 ordinance is adopted before April 1, 2022); or
(B) on the petition under section 12 of this chapter (in the4
5 case of an annexation for which an annexation ordinance
6 is adopted after March 31, 2022).
7 A municipality may not make further attempts to annex the territory or
8 any part of the territory during the twenty-four (24) months after the
9 date the municipality repeals the annexation ordinance. This subsection
10 does not prohibit an annexation of the territory or part of the territory
11 that is petitioned for under section 5 or 5.1 of this chapter.
12 (e) This subsection applies if a municipality repeals the annexation
13 ordinance:
14 (1) either:
15 (A) at least one hundred twenty-one (121) days after
16 publication of the ordinance under section 7(a) of this chapter
17 but before the hearing commences:
18 (i) on the remonstrance under section 11(c) of this chapter
19 (in the case of an annexation for which an annexation
20 ordinance is adopted before April 1, 2022); or
(ii) on the petition under section 12 of this chapter (in the21
22 case of an annexation for which an annexation ordinance
23 is adopted after March 31, 2022); or
24 (B) after the hearing commences:
25 (i) on the remonstrance as set forth in section 11(c) of this
26 chapter (in the case of an annexation for which an
27 annexation ordinance is adopted before April 1, 2022);
28 or
(ii) on the petition under section 12 of this chapter (in the29
30 case of an annexation for which an annexation ordinance
31 is adopted after March 31, 2022); and
32 (2) before the date of the judgment of the circuit or superior court
33 as set forth in subsection (b).
34 A municipality may not make further attempts to annex the territory or
35 any part of the territory during the forty-two (42) months after the date
36 the municipality repeals the annexation ordinance. This subsection
37 does not prohibit an annexation of the territory or part of the territory
38 that is petitioned for under section 5 or 5.1 of this chapter.
39 (f) An annexation is effective when the clerk of the municipality
40 complies with the filing requirement of section 22(a) of this chapter.
41 SECTION 22. IC 36-4-3-15.3, AS AMENDED BY P.L.156-2020,
42 SECTION 138, IS AMENDED TO READ AS FOLLOWS
SB 73—LS 6364/DI 87 31
1 [EFFECTIVE UPON PASSAGE]: Sec. 15.3. (a) As used in this
2 section, "prohibition against annexation" means that a municipality
3 may not make further attempts to annex certain territory or any part of
4 that territory.
5 (b) As used in this section, "settlement agreement" means a written
6 court approved settlement of a dispute involving annexation under this
7 chapter between a municipality and remonstrators.
8 (c) Under a settlement agreement between the annexing
9 municipality and either:
10 (1) seventy-five percent (75%) or more of all landowners
11 participating in the remonstrance; or
12 (2) the owners of more than seventy-five percent (75%) in
13 assessed valuation of the land owned by all landowners
14 participating in the remonstrance;
15 the parties may mutually agree to a prohibition against annexation of
16 all or part of the territory by the municipality for a period not to exceed
17 twenty (20) years. The settlement agreement may address issues and
18 bind the parties to matters relating to the provision by a municipality
19 of planned services of a noncapital nature and services of a capital
20 improvement nature (as described in section 13(d) of this chapter), in
21 addition to a prohibition against annexation. The settlement agreement
22 is binding upon the successors, heirs, and assigns of the parties to the
23 agreement. However, the settlement agreement may be amended or
24 revised periodically on further agreement between the annexing
25 municipality and landowners who meet the qualifications of
26 subdivision (1) or (2).
27 (d) A settlement agreement executed after March 31, 2022, is
28 void.
29 SECTION 23. IC 36-4-3-15.5, AS AMENDED BY P.L.207-2014,
30 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
31 UPON PASSAGE]: Sec. 15.5. (a) Except as provided in subsection (b):
32 (1) an owner of land within one-half (1/2) mile of territory
33 proposed to be annexed under this chapter; or
34 (2) a municipality located in the same county as the territory
35 proposed to be annexed;
36 may, not later than sixty (60) days after the publication of the
37 annexation ordinance, appeal that annexation to a circuit court or
38 superior court of a county in which the annexed territory is located. The
39 complaint must state that the reason the annexation should not take
40 place is that the territory sought to be annexed is not contiguous to the
41 annexing municipality.
42 (b) This subsection applies to an annexation initiated by property
SB 73—LS 6364/DI 87 32
1 owners under section 5.1 of this chapter in which all property owners
2 within the area to be annexed petition the municipality to be annexed.
3 Either of the following may appeal that annexation to a circuit court or
4 superior court of a county in which the annexed territory is located:
5 (1) An owner of land within one-half (1/2) mile of the territory
6 proposed to be annexed under this chapter.
7 (2) A municipality located in the same county as the territory
8 proposed to be annexed.
9 An appeal under this subsection must be filed not later than thirty (30)
10 days after the publication of the annexation ordinance. The complaint
11 must state that the reason the annexation should not take place is that
12 the territory sought to be annexed is not contiguous to the annexing
13 municipality.
14 (c) Upon the determination of the court that the complaint is
15 sufficient, the judge shall fix a time for a hearing to be held not later
16 than sixty (60) days after the determination. Notice of the proceedings
17 shall be served by summons upon the proper officers of the annexing
18 municipality. The municipality shall become a defendant in the cause
19 and be required to appear and answer. The judge of the circuit or
20 superior court shall, upon the date fixed, proceed to hear and determine
21 the appeal without a jury, and shall, without delay, give judgment upon
22 the question of the annexation according to the evidence introduced by
23 the parties. If the evidence establishes that the territory sought to be
24 annexed is contiguous to the annexing municipality, the court shall
25 deny the appeal and dismiss the proceeding. If the evidence does not
26 establish the foregoing factor, the court shall issue an order to prevent
27 the proposed annexation from taking effect. The laws providing for
28 change of venue from the county do not apply, but changes of venue
29 from the judge may be had. Costs follow judgment. Pending the appeal,
30 and during the time within which the appeal may be taken, the territory
31 sought to be annexed is not a part of the annexing municipality.
32 (d) If the court enters a judgment in favor of the municipality, the
33 annexation may not take effect during the year preceding a year in
34 which a federal decennial census is conducted. An annexation that
35 would otherwise take effect during the year preceding a year in which
36 a federal decennial census is conducted takes effect January 1 of the
37 year in which a federal decennial census is conducted.
38 SECTION 24. IC 36-4-3-16 IS AMENDED TO READ AS
39 FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 16. (a) This
40 section does not apply to an annexation under:
41 (1) section 4(a)(2), 4(a)(3), 4(b), 4(h), or 4.1 of this chapter; or
42 (2) section 5.1 of this chapter for which an annexation
SB 73—LS 6364/DI 87 33
1 ordinance is adopted after March 31, 2022.
2 (a) (b) Within one (1) year after the expiration of:
3 (1) the one (1) year period for implementation of planned services
4 of a noncapital nature under section 13(d)(4) of this chapter; or
5 (2) the three (3) year period for the implementation of planned
6 services of a capital improvement nature under section 13(d)(5)
7 of this chapter;
8 any person who pays taxes on property located within the annexed
9 territory may file a complaint alleging injury resulting from the failure
10 of the municipality to implement the plan. The complaint must name
11 the municipality as defendant and shall be filed with the circuit or
12 superior court of the county in which the annexed territory is located.
13 (b) (c) The court shall hear the case within sixty (60) days without
14 a jury. In order to be granted relief, the plaintiff must establish one (1)
15 of the following:
16 (1) That the municipality has without justification failed to
17 implement the plan required by section 13 of this chapter within
18 the specific time limit for implementation after annexation.
19 (2) That the municipality has not provided police protection, fire
20 protection, sanitary sewers, and water for human consumption
21 within the specific time limit for implementation, unless one (1)
22 of these services is being provided by a separate taxing district or
23 by a privately owned public utility.
24 (3) That the annexed territory is not receiving governmental and
25 proprietary services substantially equivalent in standard and scope
26 to the services provided by the municipality to other areas of the
27 municipality, regardless of topography, patterns of land use, and
28 population density similar to the annexed territory.
29 (c) (d) The court may:
30 (1) grant an injunction prohibiting the collection of taxes levied
31 by the municipality on the plaintiff's property located in the
32 annexed territory;
33 (2) award damages to the plaintiff not to exceed one and
34 one-fourth (1 1/4) times the taxes collected by the municipality
35 for the plaintiff's property located in the annexed territory;
36 (3) order the annexed territory or any part of it to be disannexed
37 from the municipality;
38 (4) order the municipality to submit a revised fiscal plan for
39 providing the services to the annexed territory within time limits
40 set up by the court; or
41 (5) grant any other appropriate relief.
42 (d) (e) A change of venue from the county is not permitted for an
SB 73—LS 6364/DI 87 34
1 action brought under this section.
2 (e) (f) If the court finds for the plaintiff, the defendant shall pay all
3 court costs and reasonable attorney's fees as approved by the court.
4 (f) (g) The provisions of this chapter that apply to territory
5 disannexed by other procedures apply to territory disannexed under this
6 section.
7 SECTION 25. IC 36-4-3-19, AS AMENDED BY P.L.38-2021,
8 SECTION 83, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
9 UPON PASSAGE]: Sec. 19. (a) If disannexation is ordered under this
10 chapter by the works board of a municipality and no appeal is taken,
11 the clerk of the municipality shall, without compensation and not later
12 than ten (10) days after the order is made, make and certify a complete
13 transcript of the disannexation proceedings to the auditor of each
14 county in which the disannexed lots or lands lie and to the office of the
15 secretary of state. The county auditor shall list those lots or lands
16 appropriately for taxation. The proceedings of the works board shall not
17 be certified to the county auditor or to the office of the secretary of
18 state if an appeal to the circuit court has been taken.
19 (b) In all proceedings begun in or appealed to the circuit court, if
20 vacation or disannexation is ordered, the clerk of the court shall
21 immediately after the judgment of the court, or after a decision on
22 appeal to the supreme court or court of appeals if the judgment on
23 appeal is not reversed, certify the judgment of the circuit court, as
24 affirmed or modified, to each of the following:
25 (1) The auditor of each county in which the lands or lots affected
26 lie, on receipt of one dollar ($1) for the making and certifying of
27 the transcript from the petitioners for the disannexation.
28 (2) The office of the secretary of state.
29 (3) The circuit court clerk of each county in which the lands or
30 lots affected are located.
31 (4) The county election board of each county in which the lands
32 or lots affected are located.
33 (5) If a board of registration exists, the board of each county in
34 which the lands or lots affected are located.
35 (6) The office of census data established by IC 2-5-1.1-12.2.
36 (c) The county auditor shall forward a list of lots or lands
37 disannexed under this section to the following:
38 (1) The county highway department of each county in which the
39 lands or lots affected are located.
40 (2) The county surveyor of each county in which the lands or lots
41 affected are located.
42 (3) Each plan commission, if any, that lost or gained jurisdiction
SB 73—LS 6364/DI 87 35
1 over the disannexed territory.
2 (4) The township trustee of each township that lost or gained
3 jurisdiction over the disannexed territory.
4 (5) The sheriff of each county in which the lands or lots affected
5 are located.
6 (6) The office of the secretary of state.
7 (7) The office of census data established by IC 2-5-1.1-12.2.
8 (8) The department of local government finance, not later than
9 August 1, in the manner described by the department.
10 The county auditor may require the clerk of the municipality to furnish
11 an adequate number of copies of the list of disannexed lots or lands or
12 may charge the clerk a fee for photoreproduction of the list.
13 (d) A disannexation described by this section takes effect upon the
14 clerk of the municipality filing the order with:
15 (1) the county auditor of each county in which the annexed
16 territory is located; and
17 (2) the circuit court clerk, or if a board of registration exists, the
18 board of each county in which the annexed territory is located.
19 (e) The clerk of the municipality shall notify the office of the
20 secretary of state and the office of census data established by
21 IC 2-5-1.1-12.2 of the date a disannexation is effective under this
22 chapter.
23 (f) A disannexation order under this chapter may not take effect
24 during the year preceding a year in which a federal decennial census is
25 conducted. A disannexation order that would otherwise take effect
26 during the year preceding a year in which a federal decennial census is
27 conducted takes effect January 1 of the year in which a federal
28 decennial census is conducted.
29 SECTION 26. IC 36-4-3-22, AS AMENDED BY P.L.38-2021,
30 SECTION 84, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
31 UPON PASSAGE]: Sec. 22. (a) The clerk of the municipality shall file:
32 (1) each annexation ordinance:
33 (A) against which:
34 (A) (i) a remonstrance (in the case of an annexation for
35 which an annexation ordinance is adopted before April
36 1, 2022); or
37 (ii) an appeal;
38 has not been filed during the period permitted under this
39 chapter; or
40 (B) against which a remonstrance was filed without a
41 sufficient number of signatures to meet the requirements of
42 section 11.3(c) of this chapter, in the case of an annexation for
SB 73—LS 6364/DI 87 36
1 which an annexation ordinance was adopted after June 30,
2 2015, and before April 1, 2022; or
3 (2) the certified copy of a final and unappealable judgment
4 ordering an annexation to take place;
5 with the county auditor, circuit court clerk, and board of registration (if
6 a board of registration exists) of each county in which the annexed
7 territory is located, the office of the secretary of state, and the office of
8 census data established by IC 2-5-1.1-12.2. The clerk of the
9 municipality shall record each annexation ordinance adopted under this
10 chapter in the office of the county recorder of each county in which the
11 annexed territory is located.
12 (b) The ordinance or judgment must be filed and recorded no later
13 than ninety (90) days after:
14 (1) the expiration of the period permitted for:
15 (A) a remonstrance (in the case of an annexation for which
16 an annexation ordinance is adopted before April 1, 2022);
17 or
18 (B) an appeal under section 15.5 of this chapter;
19 (2) the delivery of a certified order under section 15 of this
20 chapter; or
21 (3) the date the county auditor files the written certification with
22 the legislative body under section 11.2 of this chapter, in the case
23 of an annexation:
24 (A) described in subsection (a)(1)(B); and
25 (B) for which an annexation ordinance is adopted before
26 April 1, 2022.
27 (c) Failure to record the annexation ordinance as provided in
28 subsection (a) does not invalidate the ordinance.
29 (d) The county auditor shall forward a copy of any annexation
30 ordinance filed under this section to the following:
31 (1) The county highway department of each county in which the
32 lots or lands affected are located.
33 (2) The county surveyor of each county in which the lots or lands
34 affected are located.
35 (3) Each plan commission, if any, that lost or gained jurisdiction
36 over the annexed territory.
37 (4) The sheriff of each county in which the lots or lands affected
38 are located.
39 (5) The township trustee of each township that lost or gained
40 jurisdiction over the annexed territory.
41 (6) The office of the secretary of state.
42 (7) The office of census data established by IC 2-5-1.1-12.2.
SB 73—LS 6364/DI 87 37
1 (8) The department of local government finance, not later than
2 August 1, in the manner described by the department.
3 (e) The county auditor may require the clerk of the municipality to
4 furnish an adequate number of copies of the annexation ordinance or
5 may charge the clerk a fee for photoreproduction of the ordinance. The
6 county auditor shall notify the office of the secretary of state and the
7 office of census data established by IC 2-5-1.1-12.2 of the date that the
8 annexation ordinance is effective under this chapter.
9 (f) The county auditor or county surveyor shall, upon determining
10 that an annexation ordinance has become effective under this chapter,
11 indicate the annexation upon the property taxation records maintained
12 in the office of the auditor or the office of the county surveyor.
13 SECTION 27. IC 36-4-7-7 IS AMENDED TO READ AS
14 FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 7. (a) The fiscal
15 officer shall present the report of budget estimates to the city legislative
16 body under IC 6-1.1-17. After reviewing the report, the legislative body
17 shall prepare an ordinance fixing the rate of taxation for the ensuing
18 budget year and an ordinance making appropriations for the estimated
19 department budgets and other city purposes during the ensuing budget
20 year. The legislative body, in the appropriation ordinance, may reduce
21 any estimated item from the figure submitted in the report of the fiscal
22 officer, but it may increase an item only if the executive recommends
23 an increase. The legislative body shall promptly act on the
24 appropriation ordinance.
25 (b) In preparing the ordinances described in subsection (a), the
26 legislative body shall make an allowance for the cost of fire protection
27 to annexed territory described in IC 36-4-3-7(d), IC 36-4-3-7(e), for
28 the year fire protection is first offered to that territory.
29 SECTION 28. IC 36-9-22-2, AS AMENDED BY P.L.156-2020,
30 SECTION 148, IS AMENDED TO READ AS FOLLOWS
31 [EFFECTIVE UPON PASSAGE]: Sec. 2. (a) The power of the
32 municipal works board to fix the terms of a contract under this section
33 applies to contracts for the installation of sewage works that have not
34 been finally approved or accepted for full maintenance and operation
35 by the municipality on July 1, 1979.
36 (b) The works board of a municipality may contract with owners of
37 real property for the construction of sewage works within the
38 municipality or within four (4) miles outside its corporate boundaries
39 in order to provide service for the area in which the real property of the
40 owners is located. The contract must provide, for a period of not to
41 exceed fifteen (15) years, for the payment to the owners and their
42 assigns by any owner of real property who:
SB 73—LS 6364/DI 87 38
1 (1) did not contribute to the original cost of the sewage works;
2 and
3 (2) subsequently taps into, uses, or deposits sewage or storm
4 waters in the sewage works or any lateral sewers connected to
5 them;
6 of a fair pro rata share of the cost of the construction of the sewage
7 works, subject to the rules of the board and notwithstanding any other
8 law relating to the functions of local governmental entities. However,
9 the contract does not apply to any owner of real property who is not a
10 party to the contract unless the contract or (after June 30, 2013) a
11 signed memorandum of the contract has been recorded in the office of
12 the recorder of the county in which the real property of the owner is
13 located before the owner taps into or connects to the sewers and
14 facilities. The board may provide that the fair pro rata share of the cost
15 of construction includes interest at a rate not exceeding the amount of
16 interest allowed on judgments, and the interest shall be computed from
17 the date the sewage works are approved until the date payment is made
18 to the municipality.
19 (c) The contract must include, as part of the consideration running
20 to the municipality, the release of the right of:
21 (1) the parties to the contract; and
22 (2) the successors in title of the parties to the contract;
23 to remonstrate against pending or future annexations by the
24 municipality of the area served by the sewage works. Any person
25 tapping into or connecting to the sewage works contracted for is
26 considered to waive the person's rights to remonstrate against the
27 annexation of the area served by the sewage works.
28 (d) Notwithstanding subsection (c), the works board of a
29 municipality may waive the provisions of subsection (c) in the contract
30 if:
31 (1) the works board considers a waiver of subsection (c) to be in
32 the best interests of the municipality; or
33 (2) the contract involves connection to the sewage works under
34 IC 36-9-22.5.
35 (e) This subsection does not affect any rights or liabilities accrued,
36 or proceedings begun before July 1, 2013. Those rights, liabilities, and
37 proceedings continue and shall be imposed and enforced under prior
38 law as if this subsection had not been enacted. For contracts executed
39 after June 30, 2013, if the release of the right to remonstrate is not void
40 under subsection (i), (j), or (k), the release is binding on a successor in
41 title to a party to the contract only if the successor in title:
42 (1) has actual notice of the release; or
SB 73—LS 6364/DI 87 39
1 (2) has constructive notice of the release because the contract, or
2 a signed memorandum of the contract stating the release, has been
3 recorded in the chain of title of the property.
4 (f) Subsection (c) does not apply to a landowner if all of the
5 following conditions apply:
6 (1) The landowner is required to connect to the sewage works
7 because a person other than the landowner has polluted or
8 contaminated the area.
9 (2) The costs of extension of or connection to the sewage works
10 are paid by a person other than the landowner or the municipality.
11 (g) Subsection (c) does not apply to a landowner who taps into,
12 connects to, or is required to tap into or connect to the sewage works
13 of a municipality only because the municipality provides wholesale
14 sewage service (as defined in IC 8-1-2-61.7) to another municipality
15 that provides sewage service to the landowner.
16 (h) This subsection applies to any deed recorded after June 30,
17 2015. This subsection applies only to property that is subject to a
18 remonstrance waiver. A municipality shall provide written notice to
19 any successor in title to property within a reasonable time after the
20 deed is recorded, that a waiver of the right of remonstrance exists with
21 respect to the property.
22 (i) A remonstrance waiver executed on or before July 1, 2003, is
23 void. This subsection does not invalidate an annexation that was
24 effective on or before July 1, 2019.
25 (j) A remonstrance waiver executed after June 30, 2003, and not
26 later than June 30, 2019, is subject to the following:
27 (1) The waiver is void unless the waiver was recorded:
28 (A) before January 1, 2020; and
29 (B) with the county recorder of the county where the property
30 subject to the waiver is located.
31 (2) A waiver that is not void under subdivision (1) or subsection
32 (l) expires not later than fifteen (15) years after the date the
33 waiver is executed.
34 This subsection does not invalidate an annexation that was effective on
35 or before July 1, 2019.
36 (k) A remonstrance waiver executed after June 30, 2019, is subject
37 to the following: (1) The waiver is void unless the waiver is must be
38 recorded (A) not later than thirty (30) business days after the date the
39 waiver was executed and (B) with the county recorder of the county
40 where the property subject to the waiver is located. (2) A waiver that
41 is not void under subdivision (1) expires not later than fifteen (15)
42 years after the date the waiver is executed. This subsection does not
SB 73—LS 6364/DI 87 40
1 invalidate an annexation that was effective on or before July 1, 2019.
2 (l) Notwithstanding any other law, a remonstrance waiver is
3 effective and binding on a landowner or a successor in title to a
4 party to the contract only with regard to an annexation for which
5 the annexation ordinance was adopted before April 1, 2022.
6 SECTION 29. IC 36-9-25-14, AS AMENDED BY P.L.156-2020,
7 SECTION 149, IS AMENDED TO READ AS FOLLOWS
8 [EFFECTIVE UPON PASSAGE]: Sec. 14. (a) As to each municipality
9 to which this chapter applies:
10 (1) all the territory included within the corporate boundaries of
11 the municipality; and
12 (2) any territory, town, addition, platted subdivision, or unplatted
13 land lying outside the corporate boundaries of the municipality
14 that has been taken into the district in accordance with a prior
15 statute, the sewage or drainage of which discharges into or
16 through the sewage system of the municipality;
17 constitutes a special taxing district for the purpose of providing for the
18 sanitary disposal of the sewage of the district in a manner that protects
19 the public health and prevents the undue pollution of watercourses of
20 the district.
21 (b) Upon request by:
22 (1) a resolution adopted by the legislative body of another
23 municipality in the same county; or
24 (2) a petition of the majority of the resident freeholders in a
25 platted subdivision or of the owners of unplatted land outside the
26 boundaries of a municipality, if the platted subdivision or
27 unplatted land is in the same county;
28 the board may adopt a resolution incorporating all or any part of the
29 area of the municipality, platted subdivision, or unplatted land into the
30 district.
31 (c) A request under subsection (b) must be signed and certified as
32 correct by the secretary of the legislative body, resident freeholders, or
33 landowners. The original shall be preserved in the records of the board.
34 The resolution of the board incorporating an area in the district must be
35 in writing and must contain an accurate description of the area
36 incorporated into the district. A certified copy of the resolution, signed
37 by the president and secretary of the board, together with a map
38 showing the boundaries of the district and the location of additional
39 areas, shall be delivered to the auditor of the county within which the
40 district is located. It shall be properly indexed and kept in the
41 permanent records of the offices of the auditor.
42 (d) In addition, upon request by ten (10) or more interested resident
SB 73—LS 6364/DI 87 41
1 freeholders in a platted or unplatted territory, the board may define the
2 limits of an area within the county and including the property of the
3 freeholders that is to be considered for inclusion into the district.
4 Notice of the defining of the area by the board, and notice of the
5 location and limits of the area, shall be given by publication in
6 accordance with IC 5-3-1. Upon request by a majority of the resident
7 freeholders of the area, the area may be incorporated into the district in
8 the manner provided in this section. The resolution of the board
9 incorporating the area into the district and a map of the area shall be
10 made and filed in the same manner.
11 (e) In addition, a person owning or occupying real property outside
12 the district may enter into a sewer service agreement with the board for
13 connection to the sewage works of the district. If the agreement
14 provides for connection at a later time, the date or the event upon
15 which the service commences shall be stated in the agreement. The
16 agreement may impose any conditions for connection that the board
17 determines. The agreement must also provide the amount of service
18 charge to be charged for connection if the persons are not covered
19 under section 11 of this chapter, with the amount to be fixed by the
20 board in its discretion and without a hearing.
21 (f) All sewer service agreements made under subsection (e) or (after
22 June 30, 2013) a signed memorandum of the sewer service agreement
23 shall be recorded in the office of the recorder of the county where the
24 property is located. The agreements run with the property described
25 and are binding upon the persons owning or occupying the property,
26 their personal representatives, heirs, devisees, grantees, successors, and
27 assigns. Each agreement that is recorded, or each agreement of which
28 a signed memorandum is recorded, and that provides for the property
29 being served to be placed on the tax rolls shall be certified by the board
30 to the auditor of the county where the property is located. The
31 certification must state the date the property is to be placed on the tax
32 rolls, and upon receipt of the certification together with a copy of the
33 agreement, the auditor shall immediately place the property certified
34 upon the rolls of property subject to the levy and collection of taxes for
35 the district. An agreement may provide for the collection of a service
36 charge for the period services are rendered before the levy and
37 collection of the tax.
38 (g) Except as provided in subsections (j) and (l), sewer service
39 agreements made under subsection (e) must contain a waiver provision
40 that persons (other than municipalities) who own or occupy property
41 agree for themselves, their executors, administrators, heirs, devisees,
42 grantees, successors, and assigns that they will:
SB 73—LS 6364/DI 87 42
1 (1) neither object to nor file a remonstrance against the proposed
2 annexation of the property by a municipality within the
3 boundaries of the district;
4 (2) not appeal from an order or a judgment annexing the property
5 to a municipality; and
6 (3) not file a complaint or an action against annexation
7 proceedings.
8 (h) This subsection does not affect any rights or liabilities accrued
9 or proceedings begun before July 1, 2013. Those rights, liabilities, and
10 proceedings continue and shall be imposed and enforced under prior
11 law as if this subsection had not been enacted. For contracts executed
12 after June 30, 2013, a waiver of the right to remonstrate under
13 subsection (g) that is not void under subsection (m), (n), or (o) is
14 binding as to an executor, administrator, heir, devisee, grantee,
15 successor, or assign of a party to a sewer service agreement under
16 subsection (g) only if the executor, administrator, heir, devisee,
17 grantee, successor, or assign:
18 (1) has actual notice of the waiver; or
19 (2) has constructive notice of the waiver because the sewer
20 service agreement or a signed memorandum of the sewer service
21 agreement stating the waiver has been recorded in the chain of
22 title of the property.
23 (i) This section does not affect any sewer service agreements
24 entered into before March 13, 1953. However, this section applies to
25 a remonstrance waiver regardless of when the waiver was executed.
26 (j) Subsection (g) does not apply to a landowner if all of the
27 following conditions apply:
28 (1) The landowner is required to connect to a sewer service
29 because a person other than the landowner has polluted or
30 contaminated the area.
31 (2) The costs of extension of service or connection to the sewer
32 service are paid by a person other than the landowner or the
33 municipality.
34 (k) This subsection applies to any deed recorded after June 30,
35 2015. This subsection applies only to property that is subject to a
36 remonstrance waiver. A municipality shall provide written notice to
37 any successor in title to property within a reasonable time after the
38 deed is recorded, that a waiver of the right of remonstrance has been
39 granted with respect to the property.
40 (l) The board may waive the waiver provision described in
41 subsection (g) in a sewer service agreement made under subsection (e)
42 if the sewer service agreement involves a connection to the district's
SB 73—LS 6364/DI 87 43
1 sewage works under IC 36-9-22.5.
2 (m) A remonstrance waiver executed before July 1, 2003, is void.
3 This subsection does not invalidate an annexation that was effective on
4 or before July 1, 2019.
5 (n) A remonstrance waiver executed after June 30, 2003, and before
6 July 1, 2019, is subject to the following:
7 (1) The waiver is void unless the waiver was recorded:
8 (A) before January 1, 2020; and
9 (B) with the county recorder of the county where the property
10 subject to the waiver is located.
11 (2) A waiver that is not void under subdivision (1) or subsection
12 (p) expires not later than fifteen (15) years after the date the
13 waiver is executed.
14 This subsection does not invalidate an annexation that was effective on
15 or before July 1, 2019.
16 (o) A remonstrance waiver executed after June 30, 2019, is subject
17 to the following: (1) The waiver is void unless the waiver is must be
18 recorded (A) not later than thirty (30) business days after the date the
19 waiver was executed and (B) with the county recorder of the county
20 where the property subject to the waiver is located. (2) A waiver that
21 is not void under subdivision (1) expires not later than fifteen (15)
22 years after the date the waiver is executed. This subsection does not
23 invalidate an annexation that was effective on or before July 1, 2019.
24 (p) Notwithstanding any other law, a remonstrance waiver is
25 effective and binding on a landowner or a successor in title to a
26 party to the contract only with regard to an annexation for which
27 the annexation ordinance was adopted before April 1, 2022.
28 SECTION 30. An emergency is declared for this act.
SB 73—LS 6364/DI 87 44
COMMITTEE REPORT
Madam President: The Senate Committee on Local Government, to
which was referred Senate Bill No. 73, has had the same under
consideration and begs leave to report the same back to the Senate with
the recommendation that said bill DO PASS.
(Reference is to SB 73 as introduced.)
BUCK, Chairperson
Committee Vote: Yeas 6, Nays 3
SB 73—LS 6364/DI 87