Indiana 2023 Regular Session

Indiana House Bill HB1060 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2	Introduced Version
3	3	HOUSE BILL No. 1060
4	4	_____
5	5	DIGEST OF INTRODUCED BILL
6	6	Citations Affected: IC 36-5.
7	7	Synopsis: Dissolution of towns. Repeals a statute relating to the
8	8	dissolution of a small town (a town with a population of less than 500)
9	9	and included towns in Marion County. Restates this statute and
10	10	additionally provides that if the county election board of the county in
11	11	which the greatest percentage of the population of a small town is
12	12	located finds that the town has not elected town officers during the
13	13	preceding 10 years, that county election board shall certify that fact to
14	14	the county executive of each county in which the town is located.
15	15	Removes from the statute as a reason for dissolving a small town that
16	16	the town has not had a "functioning town government" during the
17	17	preceding 10 years. Provides the following if a small town is dissolved:
18	18	(1) The property owned by the dissolved town after payment of debts
19	19	and liabilities shall be disposed of by the county executive of the
20	20	county in which the property is located. (2) Any money remaining after
21	21	payment of the dissolved town's debts and liabilities shall be deposited
22	22	in the general fund of each county in which the town was located, in
23	23	proportion to the assessed value of the dissolved town located in each
24	24	county. (3) Beginning with the date of the town's dissolution, the
25	25	following apply: any town ordinance relating to the town's budget, tax
26	26	rates, and tax levies for the calendar year is void; a budget, tax rate, and
27	27	tax levy may not be certified for the dissolved town; any distribution of
28	28	funds due to the town from the state shall be paid to the county; and the
29	29	county shall deposit any distribution payments made by the state in the
30	30	county's general fund. (4) Dissolution of the town does not affect the
31	31	validity of a contract to which the town is a party. (5) After dissolution,
32	32	the books and records of the dissolved town become the property of the
33	33	(Continued next page)
34	34	Effective: July 1, 2023.
35	35	Engleman
36	36	January 9, 2023, read first time and referred to Committee on Local Government.
37	37	2023 IN 1060—LS 6500/DI 75 Digest Continued
38	38	county executive of the county in which the greatest assessed value of
39	39	the dissolved town was located. (6) Provides that if a dissolved small
40	40	town was located in more than one county, the county executives may
41	41	enter into appropriate agreements concerning the disposition of the
42	42	property of the dissolved town, access to the town records, and other
43	43	matters considered relevant by the county executives of the respective
44	44	counties.
45	45	2023 IN 1060—LS 6500/DI 752023 IN 1060—LS 6500/DI 75 Introduced
46	46	First Regular Session of the 123rd General Assembly (2023)
47	47	PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
48	48	Constitution) is being amended, the text of the existing provision will appear in this style type,
49	49	additions will appear in this style type, and deletions will appear in this style type.
50	50	Additions: Whenever a new statutory provision is being enacted (or a new constitutional
51	51	provision adopted), the text of the new provision will appear in this style type. Also, the
52	52	word NEW will appear in that style type in the introductory clause of each SECTION that adds
53	53	a new provision to the Indiana Code or the Indiana Constitution.
54	54	Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
55	55	between statutes enacted by the 2022 Regular Session of the General Assembly.
56	56	HOUSE BILL No. 1060
57	57	A BILL FOR AN ACT to amend the Indiana Code concerning local
58	58	government.
59	59	Be it enacted by the General Assembly of the State of Indiana:
60	60	1 SECTION 1. IC 36-5-1-11.5 IS AMENDED TO READ AS
61	61	2 FOLLOWS [EFFECTIVE JULY 1, 2023]: Sec. 11.5. A locality that:
62	62	3 (1) has elected town officers and has governed itself as a town for
63	63	4 at least ten (10) years preceding September 1, 1988; or
64	64	5 (2) has been incorporated under this chapter after August 31,
65	65	6 1988;
66	66	7 is a town for all purposes unless the town has been dissolved under this
67	67	8 chapter, or IC 36-5-1.1 (before its repeal), or IC 36-5-1.3.
68	68	9 SECTION 2. IC 36-5-1-12, AS AMENDED BY P.L.219-2013,
69	69	10 SECTION 98, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
70	70	11 JULY 1, 2023]: Sec. 12. (a) Proceedings to dissolve a town may be
71	71	12 instituted under either this section chapter or IC 36-5-1.1. IC 36-5-1.3.
72	72	13 (b) A proceeding under this section may be instituted to either
73	73	14 dissolve the town or change its name. The proceeding is instituted by
74	74	15 filing a petition with the town clerk. The petition must be signed by at
75	75	2023 IN 1060—LS 6500/DI 75 2
76	76	1 least the number of the voters of the town required to place a candidate
77	77	2 on the ballot under IC 3-8-6-3, must be verified by at least one (1) of
78	78	3 the petitioners, and must include the reasons for the dissolution or
79	79	4 change of name.
80	80	5 SECTION 3. IC 36-5-1.1 IS REPEALED [EFFECTIVE JULY 1,
81	81	6 2023]. (Dissolution of Small Towns).
82	82	7 SECTION 4. IC 36-5-1.3 IS ADDED TO THE INDIANA CODE
83	83	8 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
84	84	9 JULY 1, 2023]:
85	85	10 Chapter 1.3. Dissolution of Small Towns
86	86	11 Sec. 1. This chapter applies only to the following:
87	87	12 (1) The dissolution of a small town.
88	88	13 (2) The dissolution of an included town.
89	89	14 Sec. 2. As used in this chapter, "included town" has the meaning
90	90	15 set forth in IC 36-3-1-7.
91	91	16 Sec. 3. As used in this chapter, "small town" refers to a town
92	92	17 with a population of less than five hundred (500).
93	93	18 Sec. 4. (a) Except as provided in this subsection, a town may be
94	94	19 dissolved under any of the following:
95	95	20 (1) Section 6 of this chapter.
96	96	21 (2) Section 7 of this chapter.
97	97	22 (3) Section 8 of this chapter. However, this section applies
98	98	23 only to an included town.
99	99	24 (4) Section 9 of this chapter. However, this section applies
100	100	25 only to an included town.
101	101	26 (5) Section 10 of this chapter.
102	102	27 (b) Each of the sections listed in subsection (a) are separate and
103	103	28 independent procedures by which a town may be dissolved.
104	104	29 Sec. 5. (a) This section applies only to the dissolution of a town
105	105	30 located in more than one (1) county.
106	106	31 (b) If a town is located in more than one county, a reference in
107	107	32 this chapter to the county executive of the county is considered a
108	108	33 reference to the county executive of each county in which the town
109	109	34 is located.
110	110	35 (c) Except as provided otherwise in this chapter, the following
111	111	36 apply:
112	112	37 (1) If this chapter requires an action to be taken by the county
113	113	38 executive, that action must be taken by the county executive
114	114	39 of each county in which the town is located.
115	115	40 (2) If this chapter requires a document to be filed with the
116	116	41 county executive, a copy of the document must be filed with
117	117	42 the county executive of each county in which the town is
118	118	2023 IN 1060—LS 6500/DI 75 3
119	119	1 located.
120	120	2 (3) The effective date of the dissolution of a town must be the
121	121	3 same date in the ordinance or resolution adopted by the
122	122	4 county executive of each county in which the town is located.
123	123	5 Sec. 6. (a) A town may be dissolved under this section if the town
124	124	6 legislative body adopts a resolution requesting dissolution of the
125	125	7 town. The town legislative body must file a copy of the resolution
126	126	8 with the county executive.
127	127	9 (b) Upon receiving a resolution for the dissolution of a town, the
128	128	10 county executive shall mark the resolution with the date the
129	129	11 resolution is filed.
130	130	12 (c) The county executive shall hold a public hearing on a
131	131	13 resolution for dissolution filed under this section not less than sixty
132	132	14 (60) days nor more than ninety (90) days after the date the
133	133	15 resolution is filed. The county executive shall publish notice of the
134	134	16 hearing in accordance with IC 5-3-1.
135	135	17 (d) The county executive shall forward one (1) copy of the
136	136	18 resolution filed under this section to the plan commission, if any,
137	137	19 having jurisdiction. The plan commission shall submit written
138	138	20 recommendations for approval or disapproval of the dissolution to
139	139	21 the county executive not later than ten (10) days before the hearing
140	140	22 required by this section.
141	141	23 (e) The recipients of the notice required by this section are
142	142	24 parties to and are entitled to be heard at the public hearing. A
143	143	25 resolution for dissolution shall be dismissed if at any time during
144	144	26 the dissolution proceedings, including an appeal, the county
145	145	27 executive or a court hearing the appeal is presented with a verified
146	146	28 remonstrance against dissolution, signed by at least twenty-five
147	147	29 percent (25%) of the town's registered voters. The county
148	148	30 executive or court may determine the validity of the remonstrance
149	149	31 by submitting it to the circuit court clerk of the county where the
150	150	32 voter resides for verification.
151	151	33 (f) The county executive shall, on the date fixed under this
152	152	34 section, hear the resolution and decide the question of dissolution.
153	153	35 (g) The county executive shall permit the residents of the town
154	154	36 to submit evidence challenging the sufficiency or the validity of
155	155	37 either the resolution for dissolution or a petition opposed to
156	156	38 dissolution.
157	157	39 (h) At the hearing, the county executive shall approve
158	158	40 dissolution unless the evidence establishes at least twenty-five
159	159	41 percent (25%) of the town's voters have signed a petition under
160	160	42 this section remonstrating against the dissolution.
161	161	2023 IN 1060—LS 6500/DI 75 4
162	162	1 (i) If the county executive approves dissolution under this
163	163	2 section, the county executive shall adopt an ordinance dissolving
164	164	3 the town. The dissolution of the town takes effect on the date set
165	165	4 forth in the ordinance, subject to section 12 of this chapter, but not
166	166	5 sooner than sixty (60) days after the ordinance is adopted.
167	167	6 (j) Sections 11 and 12 of this chapter also apply to a dissolution
168	168	7 under this section.
169	169	8 Sec. 7. (a) A town may be dissolved under this section if a
170	170	9 petition signed by at least twenty-five percent (25%) of the town's
171	171	10 registered voters is filed with the county executive.
172	172	11 (b) Upon receiving a petition for the dissolution of a town, the
173	173	12 county executive shall mark the petition with the date the petition
174	174	13 is filed.
175	175	14 (c) The county executive shall hold a public hearing on a petition
176	176	15 for dissolution filed under this section not less than sixty (60) days
177	177	16 nor more than ninety (90) days after the date of the filing of the
178	178	17 petition. The county executive shall publish notice of the hearing in
179	179	18 accordance with IC 5-3-1.
180	180	19 (d) The county executive shall forward one (1) copy of the
181	181	20 petition filed under this section to the plan commission, if any,
182	182	21 having jurisdiction. The plan commission shall submit written
183	183	22 recommendations for approval or disapproval of dissolution to the
184	184	23 county executive not later than ten (10) days before the hearing
185	185	24 required by this section.
186	186	25 (e) The recipients of the notice required by this section are
187	187	26 parties to and are entitled to be heard at the public hearing. The
188	188	27 petition for dissolution shall be dismissed if at any time during the
189	189	28 dissolution proceedings, including an appeal, the county executive
190	190	29 or a court hearing an appeal is presented with a verified
191	191	30 remonstrance against dissolution, signed by at least twenty-five
192	192	31 percent (25%) of the town's registered voters. The executive or
193	193	32 court may determine the validity of the remonstrance by
194	194	33 submitting it to the circuit court clerk for the county where the
195	195	34 voter resides for verification.
196	196	35 (f) The county executive shall, on the date fixed under this
197	197	36 section, hear the petition and decide the question of dissolution.
198	198	37 (g) The county executive shall permit the residents of the town
199	199	38 to submit evidence challenging the sufficiency or the validity of
200	200	39 either a petition for the dissolution or a petition opposed to the
201	201	40 dissolution.
202	202	41 (h) At the hearing, the county executive shall approve
203	203	42 dissolution unless the evidence establishes at least one (1) of the
204	204	2023 IN 1060—LS 6500/DI 75 5
205	205	1 following:
206	206	2 (1) The petition requesting dissolution has not been signed by
207	207	3 at least twenty-five percent (25%) of the town's registered
208	208	4 voters.
209	209	5 (2) There are enough invalid signatures on the petition
210	210	6 requesting dissolution to reduce the number of valid
211	211	7 signatures to less than twenty-five percent (25%) of the town's
212	212	8 registered voters.
213	213	9 (3) At least twenty-five percent (25%) of the town's registered
214	214	10 voters have signed a petition under this section remonstrating
215	215	11 against the dissolution.
216	216	12 (4) The town legislative body has passed a resolution opposing
217	217	13 dissolution.
218	218	14 (i) If the county executive approves dissolution under this
219	219	15 section, the county executive shall adopt an ordinance dissolving
220	220	16 the town. The dissolution of the town takes effect on the date set
221	221	17 forth in the ordinance, subject to section 12 of this chapter, but not
222	222	18 sooner than sixty (60) days after the ordinance is adopted.
223	223	19 (j) Sections 11 and 12 of this chapter also apply to a dissolution
224	224	20 under this section.
225	225	21 Sec. 8. (a) This section applies only to the dissolution of an
226	226	22 included town.
227	227	23 (b) The town legislative body may adopt a resolution to consider
228	228	24 dissolution of the town under this section. The resolution must state
229	229	25 the following:
230	230	26 (1) That the town legislative body conduct a public hearing at
231	231	27 a stated date, place, and time concerning the dissolution of the
232	232	28 town.
233	233	29 (2) That the town legislative body will hear all statements
234	234	30 presented in favor of or in opposition to dissolution.
235	235	31 (3) That the town legislative body may adopt an ordinance to
236	236	32 dissolve the town at the conclusion of the public hearing.
237	237	33 (c) The town clerk shall publish a notice of the public hearing in
238	238	34 accordance with IC 5-3-1.
239	239	35 (d) The town legislative body may continue a public hearing
240	240	36 under this section. If a hearing is continued, the clerk is not
241	241	37 required to publish an additional notice under subsection (c).
242	242	38 (e) The town legislative body may adopt an ordinance following
243	243	39 the conclusion of the public hearing under subsection (b). The town
244	244	40 clerk shall file a copy of the ordinance with each of the following:
245	245	41 (1) The circuit court clerk of the county.
246	246	42 (2) The county auditor of the county.
247	247	2023 IN 1060—LS 6500/DI 75 6
248	248	1 (f) The ordinance dissolving the town takes effect on the date set
249	249	2 forth in the ordinance, subject to section 12 of this chapter, but not
250	250	3 sooner than sixty (60) days after the ordinance is adopted.
251	251	4 (g) Sections 11 and 12 of this chapter also apply to a dissolution
252	252	5 under this section.
253	253	6 Sec. 9. (a) This section applies only to the dissolution of an
254	254	7 included town.
255	255	8 (b) The dissolution of a town under this section may be
256	256	9 instituted by filing a petition with the county board of registration.
257	257	10 The petition must be signed by at least the number of the registered
258	258	11 voters of the town required to place a candidate on the ballot under
259	259	12 IC 3-8-6-3. The petition must be filed not later than June 1 of a
260	260	13 year in which a general or municipal election will be held.
261	261	14 (c) If a petition meets the criteria set forth in subsection (b), the
262	262	15 county board of registration shall certify the public question to the
263	263	16 county election board under IC 3-10-9-3. The county election
264	264	17 board shall place the question of dissolution on the ballot provided
265	265	18 for voters in the included town at the first general or municipal
266	266	19 election following certification. The question shall be placed on the
267	267	20 ballot in the form prescribed by IC 3-10-9-4 and must state: "Shall
268	268	21 the town of ________ dissolve?".
269	269	22 (d) If the public question is approved by a majority of the voters
270	270	23 voting on the question, the county election board shall file a copy
271	271	24 of the certification prepared under IC 3-12-4-9 concerning the
272	272	25 public question described by this section with the following:
273	273	26 (1) The circuit court clerk of the county.
274	274	27 (2) The county auditor of the county.
275	275	28 (e) Dissolution of the town occurs on January 1 of the year
276	276	29 immediately after the public question is certified under
277	277	30 IC 3-12-4-9, subject to section 12 of this chapter.
278	278	31 (f) Sections 11 and 12 of this chapter also apply to a dissolution
279	279	32 under this section.
280	280	33 Sec. 10. (a) If, after conducting a public hearing, the county
281	281	34 election board of the county in which the greatest percentage of
282	282	35 population of a town is located finds that the town has not elected
283	283	36 town officers during the preceding ten (10) years, the county
284	284	37 election board shall certify its findings to the county executive of
285	285	38 each county in which the town is located.
286	286	39 (b) If a county election board certifies the board's findings to the
287	287	40 county executive of each county in which a town is located under
288	288	41 subsection (a), the respective county executives shall adopt an
289	289	42 ordinance or (in a county having a consolidated city or subject to
290	290	2023 IN 1060—LS 6500/DI 75 7
291	291	1 IC 36-2-3.5) issue an order to dissolve the town.
292	292	2 (c) The dissolution of a town under this section takes effect,
293	293	3 subject to section 12 of this chapter, on the date specified in the
294	294	4 ordinance or order adopted under this section but not sooner than
295	295	5 sixty (60) days after the ordinance is adopted.
296	296	6 (d) Sections 11 and 12 of this chapter also apply to a dissolution
297	297	7 under this section.
298	298	8 Sec. 11. (a) This section applies to the dissolution of a town
299	299	9 under any section of this chapter listed under section 4(a) of this
300	300	10 chapter.
301	301	11 (b) The county auditor of each county in which a dissolved town
302	302	12 was located shall file a copy of:
303	303	13 (1) the order or ordinance adopted by the county auditor's
304	304	14 county executive under this chapter;
305	305	15 (2) if a dissolution occurs under section 8 of this chapter, a
306	306	16 copy of the ordinance adopted under section 8 of this chapter;
307	307	17 or
308	308	18 (3) if a dissolution occurs under section 9 of this chapter, a
309	309	19 copy of the certification prepared under IC 3-12-4-9;
310	310	20 with the secretary of state not later than the effective date of the
311	311	21 dissolution of the town. Failure to file a copy of the certification,
312	312	22 order, or ordinance does not invalidate the dissolution of the town.
313	313	23 (c) The secretary of state shall provide a copy of the
314	314	24 certification, order, or ordinance to each of the following:
315	315	25 (1) The election division.
316	316	26 (2) The state board of accounts.
317	317	27 (3) The department of local government finance.
318	318	28 (d) The property owned by a dissolved town after payment of
319	319	29 debts and liabilities shall be disposed of by the county executive of
320	320	30 the county in which the property is located.
321	321	31 (e) Any money remaining after payment of a dissolved town's
322	322	32 debts and liabilities shall be deposited in the general fund of each
323	323	33 county in which the town was located, in proportion to the assessed
324	324	34 value of the dissolved town in each county.
325	325	35 (f) Beginning with the date of the town's dissolution, the
326	326	36 following apply:
327	327	37 (1) Any town ordinance relating to the town's budget, tax
328	328	38 rates, and tax levies for the calendar year is void.
329	329	39 (2) A budget, tax rate, and tax levy may not be certified for
330	330	40 the dissolved town.
331	331	41 (3) Any distribution of funds due to the town from the state
332	332	42 shall be paid to the county. The county shall deposit any
333	333	2023 IN 1060—LS 6500/DI 75 8
334	334	1 payments made by the state under this subdivision in the
335	335	2 county's general fund.
336	336	3 (g) Dissolution of a town does not affect the validity of a
337	337	4 contract to which the town is a party.
338	338	5 (h) After dissolution, the books and records of a town become
339	339	6 the property of the county executive of the county in which the
340	340	7 greatest assessed value of the dissolved town is located.
341	341	8 (i) If a dissolved town was located in more than one (1) county,
342	342	9 the county executives may enter into appropriate agreements
343	343	10 concerning the disposition of the property of the dissolved town,
344	344	11 access to the town records, and other matters considered relevant
345	345	12 by the county executives of the respective counties.
346	346	13 Sec. 12. (a) This section applies to the dissolution of a town
347	347	14 under any section of this chapter listed under section 4(a) of this
348	348	15 chapter.
349	349	16 (b) A person aggrieved by a decision made by the county
350	350	17 executive under this chapter may, not later than (30) days after the
351	351	18 decision is made, appeal that decision or result to the circuit court
352	352	19 for the county containing the greatest assessed valuation of the
353	353	20 town. For purposes of computing time under this subsection, if the
354	354	21 town is located in more than one (1) county, the decision is
355	355	22 considered to be made on the latest date when the county executive
356	356	23 of each county in which the town is located adopts a dissolution
357	357	24 order or ordinance.
358	358	25 (c) The appeal is instituted by giving written notice to the circuit
359	359	26 court clerk and filing with the county executive a bond for five
360	360	27 hundred dollars ($500), with surety approved by the county
361	361	28 executive. For purposes of this subsection, a bond must be filed and
362	362	29 approved only by the county executive of the county in which the
363	363	30 greatest assessed value of the town is located. The bond must
364	364	31 provide:
365	365	32 (1) that the appeal will be duly prosecuted; and
366	366	33 (2) that the appellants will pay all costs if the appeal is decided
367	367	34 against them.
368	368	35 (d) When an appeal is instituted, the county executive of each
369	369	36 county in which the town is located shall file with the clerk of the
370	370	37 circuit court a transcript of all proceedings in the case, together
371	371	38 with all papers filed in the case. A county executive may not take
372	372	39 further action in the case until the appeal is heard and determined.
373	373	40 (e) An appeal under this section shall be heard by the circuit
374	374	41 court without a jury. Change of venue from the judge may be
375	375	42 granted, but change of venue from the county may not be granted.
376	376	2023 IN 1060—LS 6500/DI 75 9
377	377	1 If the court orders the dissolution to take place, the circuit court
378	378	2 clerk shall, immediately after the judgment of the court, certify the
379	379	3 judgment of the circuit court to each of the following:
380	380	4 (1) The town's clerk.
381	381	5 (2) The circuit court clerk of any other county in which the
382	382	6 town is located.
383	383	7 (3) The office of the secretary of state. The secretary of state
384	384	8 shall provide a copy of the circuit court clerk's certification to
385	385	9 each of the following:
386	386	10 (A) The election division.
387	387	11 (B) The state board of accounts.
388	388	12 (C) The department of local government finance.
389	389	13 (f) The dissolution takes effect sixty (60) days after the order is
390	390	14 certified.
391	391	2023 IN 1060—LS 6500/DI 75