Introduced Version
HOUSE BILL No. 1060
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 36-5.
Synopsis: Dissolution of towns. Repeals a statute relating to the
dissolution of a small town (a town with a population of less than 500)
and included towns in Marion County. Restates this statute and
additionally provides that if the county election board of the county in
which the greatest percentage of the population of a small town is
located finds that the town has not elected town officers during the
preceding 10 years, that county election board shall certify that fact to
the county executive of each county in which the town is located.
Removes from the statute as a reason for dissolving a small town that
the town has not had a "functioning town government" during the
preceding 10 years. Provides the following if a small town is dissolved:
(1) The property owned by the dissolved town after payment of debts
and liabilities shall be disposed of by the county executive of the
county in which the property is located. (2) Any money remaining after
payment of the dissolved town's debts and liabilities shall be deposited
in the general fund of each county in which the town was located, in
proportion to the assessed value of the dissolved town located in each
county. (3) Beginning with the date of the town's dissolution, the
following apply: any town ordinance relating to the town's budget, tax
rates, and tax levies for the calendar year is void; a budget, tax rate, and
tax levy may not be certified for the dissolved town; any distribution of
funds due to the town from the state shall be paid to the county; and the
county shall deposit any distribution payments made by the state in the
county's general fund. (4) Dissolution of the town does not affect the
validity of a contract to which the town is a party. (5) After dissolution,
the books and records of the dissolved town become the property of the
(Continued next page)
Effective: July 1, 2023.
Engleman
January 9, 2023, read first time and referred to Committee on Local Government.
2023 IN 1060—LS 6500/DI 75 Digest Continued
county executive of the county in which the greatest assessed value of
the dissolved town was located. (6) Provides that if a dissolved small
town was located in more than one county, the county executives may
enter into appropriate agreements concerning the disposition of the
property of the dissolved town, access to the town records, and other
matters considered relevant by the county executives of the respective
counties.
2023 IN 1060—LS 6500/DI 752023 IN 1060—LS 6500/DI 75 Introduced
First Regular Session of the 123rd General Assembly (2023)
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 2022 Regular Session of the General Assembly.
HOUSE BILL No. 1060
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 36-5-1-11.5 IS AMENDED TO READ AS
2 FOLLOWS [EFFECTIVE JULY 1, 2023]: Sec. 11.5. A locality that:
3 (1) has elected town officers and has governed itself as a town for
4 at least ten (10) years preceding September 1, 1988; or
5 (2) has been incorporated under this chapter after August 31,
6 1988;
7 is a town for all purposes unless the town has been dissolved under this
8 chapter, or IC 36-5-1.1 (before its repeal), or IC 36-5-1.3.
9 SECTION 2. IC 36-5-1-12, AS AMENDED BY P.L.219-2013,
10 SECTION 98, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
11 JULY 1, 2023]: Sec. 12. (a) Proceedings to dissolve a town may be
12 instituted under either this section chapter or IC 36-5-1.1. IC 36-5-1.3.
13 (b) A proceeding under this section may be instituted to either
14 dissolve the town or change its name. The proceeding is instituted by
15 filing a petition with the town clerk. The petition must be signed by at
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1 least the number of the voters of the town required to place a candidate
2 on the ballot under IC 3-8-6-3, must be verified by at least one (1) of
3 the petitioners, and must include the reasons for the dissolution or
4 change of name.
5 SECTION 3. IC 36-5-1.1 IS REPEALED [EFFECTIVE JULY 1,
6 2023]. (Dissolution of Small Towns).
7 SECTION 4. IC 36-5-1.3 IS ADDED TO THE INDIANA CODE
8 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
9 JULY 1, 2023]:
10 Chapter 1.3. Dissolution of Small Towns
11 Sec. 1. This chapter applies only to the following:
12 (1) The dissolution of a small town.
13 (2) The dissolution of an included town.
14 Sec. 2. As used in this chapter, "included town" has the meaning
15 set forth in IC 36-3-1-7.
16 Sec. 3. As used in this chapter, "small town" refers to a town
17 with a population of less than five hundred (500).
18 Sec. 4. (a) Except as provided in this subsection, a town may be
19 dissolved under any of the following:
20 (1) Section 6 of this chapter.
21 (2) Section 7 of this chapter.
22 (3) Section 8 of this chapter. However, this section applies
23 only to an included town.
24 (4) Section 9 of this chapter. However, this section applies
25 only to an included town.
26 (5) Section 10 of this chapter.
27 (b) Each of the sections listed in subsection (a) are separate and
28 independent procedures by which a town may be dissolved.
29 Sec. 5. (a) This section applies only to the dissolution of a town
30 located in more than one (1) county.
31 (b) If a town is located in more than one county, a reference in
32 this chapter to the county executive of the county is considered a
33 reference to the county executive of each county in which the town
34 is located.
35 (c) Except as provided otherwise in this chapter, the following
36 apply:
37 (1) If this chapter requires an action to be taken by the county
38 executive, that action must be taken by the county executive
39 of each county in which the town is located.
40 (2) If this chapter requires a document to be filed with the
41 county executive, a copy of the document must be filed with
42 the county executive of each county in which the town is
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1 located.
2 (3) The effective date of the dissolution of a town must be the
3 same date in the ordinance or resolution adopted by the
4 county executive of each county in which the town is located.
5 Sec. 6. (a) A town may be dissolved under this section if the town
6 legislative body adopts a resolution requesting dissolution of the
7 town. The town legislative body must file a copy of the resolution
8 with the county executive.
9 (b) Upon receiving a resolution for the dissolution of a town, the
10 county executive shall mark the resolution with the date the
11 resolution is filed.
12 (c) The county executive shall hold a public hearing on a
13 resolution for dissolution filed under this section not less than sixty
14 (60) days nor more than ninety (90) days after the date the
15 resolution is filed. The county executive shall publish notice of the
16 hearing in accordance with IC 5-3-1.
17 (d) The county executive shall forward one (1) copy of the
18 resolution filed under this section to the plan commission, if any,
19 having jurisdiction. The plan commission shall submit written
20 recommendations for approval or disapproval of the dissolution to
21 the county executive not later than ten (10) days before the hearing
22 required by this section.
23 (e) The recipients of the notice required by this section are
24 parties to and are entitled to be heard at the public hearing. A
25 resolution for dissolution shall be dismissed if at any time during
26 the dissolution proceedings, including an appeal, the county
27 executive or a court hearing the appeal is presented with a verified
28 remonstrance against dissolution, signed by at least twenty-five
29 percent (25%) of the town's registered voters. The county
30 executive or court may determine the validity of the remonstrance
31 by submitting it to the circuit court clerk of the county where the
32 voter resides for verification.
33 (f) The county executive shall, on the date fixed under this
34 section, hear the resolution and decide the question of dissolution.
35 (g) The county executive shall permit the residents of the town
36 to submit evidence challenging the sufficiency or the validity of
37 either the resolution for dissolution or a petition opposed to
38 dissolution.
39 (h) At the hearing, the county executive shall approve
40 dissolution unless the evidence establishes at least twenty-five
41 percent (25%) of the town's voters have signed a petition under
42 this section remonstrating against the dissolution.
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1 (i) If the county executive approves dissolution under this
2 section, the county executive shall adopt an ordinance dissolving
3 the town. The dissolution of the town takes effect on the date set
4 forth in the ordinance, subject to section 12 of this chapter, but not
5 sooner than sixty (60) days after the ordinance is adopted.
6 (j) Sections 11 and 12 of this chapter also apply to a dissolution
7 under this section.
8 Sec. 7. (a) A town may be dissolved under this section if a
9 petition signed by at least twenty-five percent (25%) of the town's
10 registered voters is filed with the county executive.
11 (b) Upon receiving a petition for the dissolution of a town, the
12 county executive shall mark the petition with the date the petition
13 is filed.
14 (c) The county executive shall hold a public hearing on a petition
15 for dissolution filed under this section not less than sixty (60) days
16 nor more than ninety (90) days after the date of the filing of the
17 petition. The county executive shall publish notice of the hearing in
18 accordance with IC 5-3-1.
19 (d) The county executive shall forward one (1) copy of the
20 petition filed under this section to the plan commission, if any,
21 having jurisdiction. The plan commission shall submit written
22 recommendations for approval or disapproval of dissolution to the
23 county executive not later than ten (10) days before the hearing
24 required by this section.
25 (e) The recipients of the notice required by this section are
26 parties to and are entitled to be heard at the public hearing. The
27 petition for dissolution shall be dismissed if at any time during the
28 dissolution proceedings, including an appeal, the county executive
29 or a court hearing an appeal is presented with a verified
30 remonstrance against dissolution, signed by at least twenty-five
31 percent (25%) of the town's registered voters. The executive or
32 court may determine the validity of the remonstrance by
33 submitting it to the circuit court clerk for the county where the
34 voter resides for verification.
35 (f) The county executive shall, on the date fixed under this
36 section, hear the petition and decide the question of dissolution.
37 (g) The county executive shall permit the residents of the town
38 to submit evidence challenging the sufficiency or the validity of
39 either a petition for the dissolution or a petition opposed to the
40 dissolution.
41 (h) At the hearing, the county executive shall approve
42 dissolution unless the evidence establishes at least one (1) of the
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1 following:
2 (1) The petition requesting dissolution has not been signed by
3 at least twenty-five percent (25%) of the town's registered
4 voters.
5 (2) There are enough invalid signatures on the petition
6 requesting dissolution to reduce the number of valid
7 signatures to less than twenty-five percent (25%) of the town's
8 registered voters.
9 (3) At least twenty-five percent (25%) of the town's registered
10 voters have signed a petition under this section remonstrating
11 against the dissolution.
12 (4) The town legislative body has passed a resolution opposing
13 dissolution.
14 (i) If the county executive approves dissolution under this
15 section, the county executive shall adopt an ordinance dissolving
16 the town. The dissolution of the town takes effect on the date set
17 forth in the ordinance, subject to section 12 of this chapter, but not
18 sooner than sixty (60) days after the ordinance is adopted.
19 (j) Sections 11 and 12 of this chapter also apply to a dissolution
20 under this section.
21 Sec. 8. (a) This section applies only to the dissolution of an
22 included town.
23 (b) The town legislative body may adopt a resolution to consider
24 dissolution of the town under this section. The resolution must state
25 the following:
26 (1) That the town legislative body conduct a public hearing at
27 a stated date, place, and time concerning the dissolution of the
28 town.
29 (2) That the town legislative body will hear all statements
30 presented in favor of or in opposition to dissolution.
31 (3) That the town legislative body may adopt an ordinance to
32 dissolve the town at the conclusion of the public hearing.
33 (c) The town clerk shall publish a notice of the public hearing in
34 accordance with IC 5-3-1.
35 (d) The town legislative body may continue a public hearing
36 under this section. If a hearing is continued, the clerk is not
37 required to publish an additional notice under subsection (c).
38 (e) The town legislative body may adopt an ordinance following
39 the conclusion of the public hearing under subsection (b). The town
40 clerk shall file a copy of the ordinance with each of the following:
41 (1) The circuit court clerk of the county.
42 (2) The county auditor of the county.
2023 IN 1060—LS 6500/DI 75 6
1 (f) The ordinance dissolving the town takes effect on the date set
2 forth in the ordinance, subject to section 12 of this chapter, but not
3 sooner than sixty (60) days after the ordinance is adopted.
4 (g) Sections 11 and 12 of this chapter also apply to a dissolution
5 under this section.
6 Sec. 9. (a) This section applies only to the dissolution of an
7 included town.
8 (b) The dissolution of a town under this section may be
9 instituted by filing a petition with the county board of registration.
10 The petition must be signed by at least the number of the registered
11 voters of the town required to place a candidate on the ballot under
12 IC 3-8-6-3. The petition must be filed not later than June 1 of a
13 year in which a general or municipal election will be held.
14 (c) If a petition meets the criteria set forth in subsection (b), the
15 county board of registration shall certify the public question to the
16 county election board under IC 3-10-9-3. The county election
17 board shall place the question of dissolution on the ballot provided
18 for voters in the included town at the first general or municipal
19 election following certification. The question shall be placed on the
20 ballot in the form prescribed by IC 3-10-9-4 and must state: "Shall
21 the town of ________ dissolve?".
22 (d) If the public question is approved by a majority of the voters
23 voting on the question, the county election board shall file a copy
24 of the certification prepared under IC 3-12-4-9 concerning the
25 public question described by this section with the following:
26 (1) The circuit court clerk of the county.
27 (2) The county auditor of the county.
28 (e) Dissolution of the town occurs on January 1 of the year
29 immediately after the public question is certified under
30 IC 3-12-4-9, subject to section 12 of this chapter.
31 (f) Sections 11 and 12 of this chapter also apply to a dissolution
32 under this section.
33 Sec. 10. (a) If, after conducting a public hearing, the county
34 election board of the county in which the greatest percentage of
35 population of a town is located finds that the town has not elected
36 town officers during the preceding ten (10) years, the county
37 election board shall certify its findings to the county executive of
38 each county in which the town is located.
39 (b) If a county election board certifies the board's findings to the
40 county executive of each county in which a town is located under
41 subsection (a), the respective county executives shall adopt an
42 ordinance or (in a county having a consolidated city or subject to
2023 IN 1060—LS 6500/DI 75 7
1 IC 36-2-3.5) issue an order to dissolve the town.
2 (c) The dissolution of a town under this section takes effect,
3 subject to section 12 of this chapter, on the date specified in the
4 ordinance or order adopted under this section but not sooner than
5 sixty (60) days after the ordinance is adopted.
6 (d) Sections 11 and 12 of this chapter also apply to a dissolution
7 under this section.
8 Sec. 11. (a) This section applies to the dissolution of a town
9 under any section of this chapter listed under section 4(a) of this
10 chapter.
11 (b) The county auditor of each county in which a dissolved town
12 was located shall file a copy of:
13 (1) the order or ordinance adopted by the county auditor's
14 county executive under this chapter;
15 (2) if a dissolution occurs under section 8 of this chapter, a
16 copy of the ordinance adopted under section 8 of this chapter;
17 or
18 (3) if a dissolution occurs under section 9 of this chapter, a
19 copy of the certification prepared under IC 3-12-4-9;
20 with the secretary of state not later than the effective date of the
21 dissolution of the town. Failure to file a copy of the certification,
22 order, or ordinance does not invalidate the dissolution of the town.
23 (c) The secretary of state shall provide a copy of the
24 certification, order, or ordinance to each of the following:
25 (1) The election division.
26 (2) The state board of accounts.
27 (3) The department of local government finance.
28 (d) The property owned by a dissolved town after payment of
29 debts and liabilities shall be disposed of by the county executive of
30 the county in which the property is located.
31 (e) Any money remaining after payment of a dissolved town's
32 debts and liabilities shall be deposited in the general fund of each
33 county in which the town was located, in proportion to the assessed
34 value of the dissolved town in each county.
35 (f) Beginning with the date of the town's dissolution, the
36 following apply:
37 (1) Any town ordinance relating to the town's budget, tax
38 rates, and tax levies for the calendar year is void.
39 (2) A budget, tax rate, and tax levy may not be certified for
40 the dissolved town.
41 (3) Any distribution of funds due to the town from the state
42 shall be paid to the county. The county shall deposit any
2023 IN 1060—LS 6500/DI 75 8
1 payments made by the state under this subdivision in the
2 county's general fund.
3 (g) Dissolution of a town does not affect the validity of a
4 contract to which the town is a party.
5 (h) After dissolution, the books and records of a town become
6 the property of the county executive of the county in which the
7 greatest assessed value of the dissolved town is located.
8 (i) If a dissolved town was located in more than one (1) county,
9 the county executives may enter into appropriate agreements
10 concerning the disposition of the property of the dissolved town,
11 access to the town records, and other matters considered relevant
12 by the county executives of the respective counties.
13 Sec. 12. (a) This section applies to the dissolution of a town
14 under any section of this chapter listed under section 4(a) of this
15 chapter.
16 (b) A person aggrieved by a decision made by the county
17 executive under this chapter may, not later than (30) days after the
18 decision is made, appeal that decision or result to the circuit court
19 for the county containing the greatest assessed valuation of the
20 town. For purposes of computing time under this subsection, if the
21 town is located in more than one (1) county, the decision is
22 considered to be made on the latest date when the county executive
23 of each county in which the town is located adopts a dissolution
24 order or ordinance.
25 (c) The appeal is instituted by giving written notice to the circuit
26 court clerk and filing with the county executive a bond for five
27 hundred dollars ($500), with surety approved by the county
28 executive. For purposes of this subsection, a bond must be filed and
29 approved only by the county executive of the county in which the
30 greatest assessed value of the town is located. The bond must
31 provide:
32 (1) that the appeal will be duly prosecuted; and
33 (2) that the appellants will pay all costs if the appeal is decided
34 against them.
35 (d) When an appeal is instituted, the county executive of each
36 county in which the town is located shall file with the clerk of the
37 circuit court a transcript of all proceedings in the case, together
38 with all papers filed in the case. A county executive may not take
39 further action in the case until the appeal is heard and determined.
40 (e) An appeal under this section shall be heard by the circuit
41 court without a jury. Change of venue from the judge may be
42 granted, but change of venue from the county may not be granted.
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1 If the court orders the dissolution to take place, the circuit court
2 clerk shall, immediately after the judgment of the court, certify the
3 judgment of the circuit court to each of the following:
4 (1) The town's clerk.
5 (2) The circuit court clerk of any other county in which the
6 town is located.
7 (3) The office of the secretary of state. The secretary of state
8 shall provide a copy of the circuit court clerk's certification to
9 each of the following:
10 (A) The election division.
11 (B) The state board of accounts.
12 (C) The department of local government finance.
13 (f) The dissolution takes effect sixty (60) days after the order is
14 certified.
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