Indiana 2023 Regular Session

Indiana House Bill HB1062 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. 1062
4	4	_____
5	5	DIGEST OF INTRODUCED BILL
6	6	Citations Affected: IC 36-1.5.
7	7	Synopsis: Reorganization of municipality and township. Allows a
8	8	municipality in a county (excluding Marion County) to reorganize with
9	9	a township that has at least 70% of its population within the
10	10	municipality, if: (1) the municipality adopts a reorganization plan; and
11	11	(2) more than 50% of the sum of all voters in the municipality and the
12	12	unincorporated area of the township approve the reorganization plan.
13	13	Allows the reorganized political subdivision to provide township
14	14	assistance within the former boundaries of the reorganizing township
15	15	by contracting with nonprofit organizations.
16	16	Effective: July 1, 2023.
17	17	Engleman
18	18	January 9, 2023, read first time and referred to Committee on Local Government.
19	19	2023 IN 1062—LS 6698/DI 87 Introduced
20	20	First Regular Session of the 123rd General Assembly (2023)
21	21	PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
22	22	Constitution) is being amended, the text of the existing provision will appear in this style type,
23	23	additions will appear in this style type, and deletions will appear in this style type.
24	24	Additions: Whenever a new statutory provision is being enacted (or a new constitutional
25	25	provision adopted), the text of the new provision will appear in this style type. Also, the
26	26	word NEW will appear in that style type in the introductory clause of each SECTION that adds
27	27	a new provision to the Indiana Code or the Indiana Constitution.
28	28	Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
29	29	between statutes enacted by the 2022 Regular Session of the General Assembly.
30	30	HOUSE BILL No. 1062
31	31	A BILL FOR AN ACT to amend the Indiana Code concerning local
32	32	government.
33	33	Be it enacted by the General Assembly of the State of Indiana:
34	34	1 SECTION 1. IC 36-1.5-4-1, AS ADDED BY P.L.186-2006,
35	35	2 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
36	36	3 JULY 1, 2023]: Sec. 1. (a) Any of the following may reorganize under
37	37	4 this chapter:
38	38	5 (1) Two (2) or more counties. A county reorganizing under this
39	39	6 subdivision must be adjacent to at least one (1) other county
40	40	7 participating in the reorganization.
41	41	8 (2) Two (2) or more townships located entirely within the same
42	42	9 county. A township reorganizing under this subdivision must be
43	43	10 adjacent to at least one (1) other township participating in the
44	44	11 reorganization.
45	45	12 (3) Two (2) or more municipalities. A municipality reorganizing
46	46	13 under this subdivision must be adjacent to at least one (1) other
47	47	14 municipality participating in the reorganization.
48	48	15 (4) Two (2) or more school corporations. A school corporation
49	49	16 reorganizing under this subdivision must be adjacent to at least
50	50	17 one (1) other school corporation participating in the
51	51	2023 IN 1062—LS 6698/DI 87 2
52	52	1 reorganization.
53	53	2 (5) Two (2) or more municipal corporations, other than a unit or
54	54	3 a school corporation, that have substantially equivalent powers.
55	55	4 A municipal corporation reorganizing under this subdivision must
56	56	5 be adjacent to at least one (1) other municipal corporation
57	57	6 participating in the reorganization.
58	58	7 (6) Two (2) or more special taxing districts that are adjacent to at
59	59	8 least one (1) other special taxing district participating in the
60	60	9 reorganization.
61	61	10 (7) A township and a municipality that is located in any part of
62	62	11 the same township. The governments of a township and a
63	63	12 municipality may also reorganize under IC 36-1.5-4.5, if at
64	64	13 least seventy percent (70%) of the population of the township
65	65	14 is located within the municipality.
66	66	15 (8) A county and one (1) or more townships that are located in the
67	67	16 county.
68	68	17 (9) A municipality and a county that does not contain a
69	69	18 consolidated city.
70	70	19 (10) A school corporation and a county or municipality in which
71	71	20 a majority of the students of the school corporation have legal
72	72	21 settlement (as defined by IC 20-18-2-11).
73	73	22 (11) A municipal corporation, other than a unit or a school
74	74	23 corporation, and a county or municipality in which a majority of
75	75	24 the population of the municipal corporation resides.
76	76	25 (b) If a political subdivision reorganizes under this article with one
77	77	26 (1) or more other political subdivisions:
78	78	27 (1) any political subdivisions that did not participate in the public
79	79	28 question on the reorganization are not reorganized under this
80	80	29 article;
81	81	30 (2) the reorganization affects only those political subdivisions in
82	82	31 which the reorganization is approved as specified in this article;
83	83	32 and
84	84	33 (3) the reorganization does not affect the rights, powers, and
85	85	34 duties of any political subdivisions in the county in which the
86	86	35 reorganization is not approved as specified in this article.
87	87	36 SECTION 2. IC 36-1.5-4-8, AS ADDED BY P.L.186-2006,
88	88	37 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
89	89	38 JULY 1, 2023]: Sec. 8. The department of local government finance
90	90	39 may prescribe forms for petitions, resolutions, certifications, and other
91	91	40 writings required under this chapter and IC 36-1.5-4.5. A petition,
92	92	41 resolution, certification, or other writing related to a reorganization
93	93	42 must be substantially in the form prescribed by the department of local
94	94	2023 IN 1062—LS 6698/DI 87 3
95	95	1 government finance.
96	96	2 SECTION 3. IC 36-1.5-4.5 IS ADDED TO THE INDIANA CODE
97	97	3 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
98	98	4 JULY 1, 2023]:
99	99	5 Chapter 4.5. Reorganization of Municipal and Township
100	100	6 Government
101	101	7 Sec. 1. This chapter applies only to the reorganization of a
102	102	8 township and a municipality, if at least seventy percent (70%) of
103	103	9 the population of the township is located within the boundaries of
104	104	10 the municipality.
105	105	11 Sec. 2. This chapter does not apply to a municipality or
106	106	12 township in Marion County.
107	107	13 Sec. 3. As used in this chapter, "reorganized political
108	108	14 subdivision" means the governmental entity that is the successor
109	109	15 to the reorganizing municipality and reorganizing township after
110	110	16 a reorganization under this chapter.
111	111	17 Sec. 4. As used in this chapter, "reorganizing municipality"
112	112	18 means the municipality that adopts a resolution under section 6 of
113	113	19 this chapter.
114	114	20 Sec. 5. As used in this chapter, "reorganizing township" means
115	115	21 the township named in the resolution adopted under section 6 of
116	116	22 this chapter.
117	117	23 Sec. 6. (a) A municipal legislative body may initiate a
118	118	24 reorganization under this chapter by adopting a resolution
119	119	25 proposing a reorganization with the township named in the
120	120	26 resolution.
121	121	27 (b) The clerk of the reorganizing municipality shall certify the
122	122	28 resolution to the township trustee and township board of the
123	123	29 reorganizing township.
124	124	30 Sec. 7. A reorganization approved under this chapter takes
125	125	31 effect when the officers of the reorganized political subdivision are
126	126	32 elected as provided in section 20 of this chapter.
127	127	33 Sec. 8. When a reorganization under this chapter takes effect,
128	128	34 the following occur:
129	129	35 (1) The reorganizing township government and offices of the
130	130	36 reorganizing township cease to exist and the terms of the
131	131	37 township trustee and township board of the reorganizing
132	132	38 township are terminated.
133	133	39 (2) The reorganizing municipal government and offices of the
134	134	40 reorganizing municipality cease to exist and the terms of the
135	135	41 executive of the municipality and legislative body of the
136	136	42 reorganizing municipality are terminated.
137	137	2023 IN 1062—LS 6698/DI 87 4
138	138	1 (3) If provided for in the approved reorganization plan, the
139	139	2 boundaries of the reorganizing municipality, the reorganizing
140	140	3 township, or both, are adjusted as described in the
141	141	4 reorganization plan. However, the area within the boundaries
142	142	5 of the reorganizing township constitute the service area for
143	143	6 purposes of providing township assistance under section 26 of
144	144	7 this chapter.
145	145	8 (4) The property and liabilities of the reorganizing township
146	146	9 become the property and liabilities of the reorganized political
147	147	10 subdivision, subject to section 24 of this chapter.
148	148	11 (5) Any reference:
149	149	12 (A) in the Indiana Code;
150	150	13 (B) in the Indiana Administrative Code; or
151	151	14 (C) in any resolution;
152	152	15 to the township board or township legislative body of a
153	153	16 reorganizing township shall be considered a reference to the
154	154	17 legislative body of the reorganized political subdivision.
155	155	18 (6) Any reference:
156	156	19 (A) in the Indiana Code;
157	157	20 (B) in the Indiana Administrative Code; or
158	158	21 (C) in any resolution;
159	159	22 to the township trustee or township executive of a
160	160	23 reorganizing township shall be considered a reference to the
161	161	24 executive of the reorganized political subdivision.
162	162	25 Sec. 9. (a) The municipal legislative body shall prepare a
163	163	26 comprehensive plan of reorganization. The plan of reorganization
164	164	27 governs the actions, duties, and powers of the reorganized political
165	165	28 subdivision that are not specified by law.
166	166	29 (b) The plan of reorganization must include at least the
167	167	30 following:
168	168	31 (1) Subject to section 24 of this chapter, a description of the
169	169	32 taxing areas in which taxes to retire obligations of the
170	170	33 reorganizing municipality and reorganizing township will be
171	171	34 imposed.
172	172	35 (2) A description of the election districts or appointment
173	173	36 districts from which officers of the reorganized political
174	174	37 subdivision will be elected or appointed, and the manner in
175	175	38 which the membership of each elected or appointed office will
176	176	39 be elected or appointed.
177	177	40 (3) Subject to IC 36-1.5-4-40.5, a description of the services to
178	178	41 be provided by the reorganized political subdivision within
179	179	42 the area of the township including fire protection services,
180	180	2023 IN 1062—LS 6698/DI 87 5
181	181	1 and the service areas in which the services will be provided.
182	182	2 (4) A description of the provision of township assistance by
183	183	3 contract with qualified providers in accordance with section
184	184	4 26 of this chapter.
185	185	5 (5) The disposition of the personnel, the agreements, the
186	186	6 assets, and, subject to section 24 of this chapter, the liabilities
187	187	7 of the reorganizing municipality and reorganizing township,
188	188	8 including the terms and conditions upon which the transfer of
189	189	9 property and personnel will be achieved.
190	190	10 (6) Any other matter that the legislative body of the
191	191	11 reorganizing municipality determines is necessary or
192	192	12 appropriate to include in the plan of reorganization.
193	193	13 (7) The fiscal impact analysis required by subsection (d).
194	194	14 (c) The reorganizing municipality shall post a copy of the plan
195	195	15 of reorganization on a website maintained or authorized by the
196	196	16 reorganizing municipality not more than thirty (30) days after the
197	197	17 plan of reorganization is prepared by the municipal legislative
198	198	18 body. If the plan of reorganization is amended, the reorganizing
199	199	19 municipality shall post the amended plan on the website
200	200	20 maintained or authorized by the reorganizing municipality not
201	201	21 later than seven (7) days after the amended plan is adopted.
202	202	22 (d) The reorganizing municipal legislative body must include in
203	203	23 the plan of reorganization a fiscal impact analysis of the proposed
204	204	24 reorganization. The fiscal impact analysis must include at least the
205	205	25 following:
206	206	26 (1) The estimated effect of the proposed reorganization on all
207	207	27 taxpayers residing in the reorganizing municipality and
208	208	28 reorganizing township, including the expected tax rates, tax
209	209	29 levies, expenditure levels, service levels, and annual debt
210	210	30 service payments in those political subdivisions.
211	211	31 (2) A description of the services to be provided within the
212	212	32 reorganized political subdivision, including fire protection
213	213	33 services, and the method or methods of financing services
214	214	34 within the reorganized political subdivision. The fiscal impact
215	215	35 analysis must:
216	216	36 (A) present itemized estimated costs for each department
217	217	37 or agency of the reorganizing municipality and
218	218	38 reorganizing township; and
219	219	39 (B) explain how specific and detailed expenses will be
220	220	40 funded from taxes, fees, grants, and other funding.
221	221	41 (3) A description of any capital improvements to be provided
222	222	42 in the reorganized political subdivision and the method or
223	223	2023 IN 1062—LS 6698/DI 87 6
224	224	1 methods of financing those capital improvements.
225	225	2 (4) Any estimated effects on political subdivisions in the
226	226	3 county that are not participating in the reorganization and on
227	227	4 taxpayers located in those political subdivisions.
228	228	5 (e) The legislative body of the reorganizing municipality shall
229	229	6 submit the fiscal impact analysis to the department of local
230	230	7 government finance at least three (3) months before the election in
231	231	8 which the public question will be on the ballot. The municipal
232	232	9 legislative body may not adopt a plan of reorganization unless the
233	233	10 reorganizing municipal legislative body has submitted the fiscal
234	234	11 impact analysis to the department of local government finance. The
235	235	12 department of local government finance must do the following
236	236	13 within a reasonable time, but not later than thirty (30) days before
237	237	14 the date of the election in which the public question will be on the
238	238	15 ballot:
239	239	16 (1) Review the fiscal impact analysis.
240	240	17 (2) Make any comments concerning the fiscal impact analysis
241	241	18 that the department of local government finance considers
242	242	19 appropriate.
243	243	20 (3) Provide the department of local government finance's
244	244	21 comments under subdivision (2) to the legislative body of the
245	245	22 reorganizing municipality and reorganizing township.
246	246	23 (4) Post the department of local government finance's
247	247	24 comments under subdivision (2) on the department of local
248	248	25 government finance's website.
249	249	26 Sec. 10. (a) The reorganizing municipal legislative body shall
250	250	27 provide for the following:
251	251	28 (1) Consideration of a plan of reorganization in the form of a
252	252	29 resolution incorporating the plan of reorganization in full or
253	253	30 by reference.
254	254	31 (2) Reading of the resolution incorporating the plan of
255	255	32 reorganization in at least two (2) separate meetings of the
256	256	33 reorganizing municipal legislative body.
257	257	34 (3) Conducting a public hearing on the plan of reorganization:
258	258	35 (A) not sooner than five (5) days after notice of the public
259	259	36 hearing is published under IC 5-3-1; and
260	260	37 (B) before the reorganizing municipal legislative body
261	261	38 takes final action on the resolution to adopt the plan of
262	262	39 reorganization.
263	263	40 (b) At a public hearing on a plan of reorganization under
264	264	41 subsection (a), or in a public meeting held not more than thirty (30)
265	265	42 days after the public hearing concludes, the legislative body of a
266	266	2023 IN 1062—LS 6698/DI 87 7
267	267	1 reorganizing municipality shall do one (1) of the following:
268	268	2 (1) Adopt the plan of reorganization.
269	269	3 (2) Adopt the plan of reorganization with modifications.
270	270	4 (3) Reject the plan of reorganization.
271	271	5 (c) The reorganizing municipal legislative body shall take any
272	272	6 of the actions described in subsection (b) on:
273	273	7 (1) a revised plan of reorganization; and
274	274	8 (2) each resolution modifying a plan of reorganization or
275	275	9 revised plan of reorganization;
276	276	10 in the same manner as the legislative body may take action on the
277	277	11 initially submitted plan of reorganization.
278	278	12 Sec. 11. When a reorganization plan becomes effective under
279	279	13 this chapter, the following occur:
280	280	14 (1) The resolutions, rules, and bylaws of the reorganizing
281	281	15 township government:
282	282	16 (A) remain in force within the township; and
283	283	17 (B) continue in force until amended or repealed by the
284	284	18 reorganized municipal legislative body or an
285	285	19 administrative body of the reorganized municipality.
286	286	20 (2) Pending actions that involve the reorganizing township
287	287	21 government shall be prosecuted to final judgment and
288	288	22 execution, and judgments rendered in those actions may be
289	289	23 executed and enforced against the reorganized political
290	290	24 subdivision without any change of the name of the plaintiff or
291	291	25 defendant.
292	292	26 Sec. 12. (a) The municipal legislative body shall certify the
293	293	27 legislative body's final action on a plan of reorganization or revised
294	294	28 plan of reorganization, as modified by the legislative body, in the
295	295	29 manner prescribed by the department of local government finance,
296	296	30 to the following:
297	297	31 (1) The township trustee of the reorganizing township.
298	298	32 (2) The county fiscal officer of each county in which the
299	299	33 reorganizing municipality and reorganizing township are
300	300	34 located.
301	301	35 (3) The county recorder of each county in which the
302	302	36 reorganizing municipality and reorganizing township are
303	303	37 located.
304	304	38 (4) The county voter registration office of each county in
305	305	39 which the reorganizing municipality and reorganizing
306	306	40 township are located.
307	307	41 (5) The department of local government finance.
308	308	42 (b) Each county recorder receiving a certification under
309	309	2023 IN 1062—LS 6698/DI 87 8
310	310	1 subsection (a) shall record the certification and the plan of
311	311	2 reorganization in the records of the county recorder without
312	312	3 charge.
313	313	4 (c) The county recorder shall notify the county election board
314	314	5 of each county in which the reorganizing municipality and
315	315	6 reorganizing township are located when the certification is
316	316	7 received. The county election board shall then prepare and submit
317	317	8 ballot language to the department of local government finance.
318	318	9 Sec. 13. (a) Before the public question on a reorganization under
319	319	10 this chapter is placed on the ballot, the municipal legislative body
320	320	11 may adopt a resolution to rescind the plan of reorganization
321	321	12 previously adopted and certified. The resolution to rescind the plan
322	322	13 of reorganization must be certified by the legislative body to the:
323	323	14 (1) clerk of the reorganizing municipality and the township
324	324	15 trustee of the reorganizing township;
325	325	16 (2) county fiscal officer of each county in which the
326	326	17 reorganizing municipality and reorganizing township are
327	327	18 located; and
328	328	19 (3) county recorder of each county in which the reorganizing
329	329	20 municipality and reorganizing township are located;
330	330	21 not later than July 15.
331	331	22 (b) Each county recorder receiving a certification under
332	332	23 subsection (a) shall do the following:
333	333	24 (1) Record the certification in the records of the county
334	334	25 recorder without charge.
335	335	26 (2) Notify the county election board of each county in which
336	336	27 the reorganizing municipality and reorganizing township are
337	337	28 located that the public question on the plan of reorganization
338	338	29 is not eligible to be placed on the ballot for consideration by
339	339	30 the voters of the reorganizing municipality and reorganizing
340	340	31 township.
341	341	32 After the county election board is notified that a public question on
342	342	33 a plan of reorganization is not eligible to be placed on the ballot,
343	343	34 the county election board shall not place the public question on the
344	344	35 ballot.
345	345	36 Sec. 14. (a) A public question under this chapter shall be placed
346	346	37 on the ballot in all the precincts that are located in the reorganizing
347	347	38 municipality and the unincorporated area of the reorganizing
348	348	39 township in substantially the following form:
349	349	40 (Insert a brief description of the structure of the proposed
350	350	41 reorganized political subdivision that will succeed the
351	351	42 reorganizing municipality and reorganizing township.)
352	352	2023 IN 1062—LS 6698/DI 87 9
353	353	1 "Shall _________ (insert name of municipality) and
354	354	2 _________ (insert name of township) reorganize as a single
355	355	3 political subdivision?".
356	356	4 (b) The public question must appear on the ballot in the form
357	357	5 approved by the county election board in the form prescribed by
358	358	6 IC 3-10-9-4. The county election board shall submit the language
359	359	7 to the department of local government finance for review.
360	360	8 (c) The department of local government finance shall review the
361	361	9 language of the public question to evaluate whether the description
362	362	10 of the reorganized political subdivision that will succeed the
363	363	11 reorganizing municipality and reorganizing township is accurate
364	364	12 and is not biased against either a vote in favor of the
365	365	13 reorganization or a vote against the reorganization. The
366	366	14 department of local government finance may:
367	367	15 (1) approve the ballot language as submitted; or
368	368	16 (2) modify the ballot language as necessary to ensure that the
369	369	17 description of the reorganized political subdivision that will
370	370	18 succeed the reorganizing municipality and reorganizing
371	371	19 township is accurate and is not biased.
372	372	20 The department of local government finance shall certify its
373	373	21 approval or recommendations to the county election board not
374	374	22 more than ten (10) days after the language of the public question
375	375	23 is submitted to the department of local government finance for
376	376	24 review. If the department of local government finance recommends
377	377	25 a modification to the ballot language, the county election board
378	378	26 shall, after reviewing the recommendations of the department of
379	379	27 local government finance, submit modified ballot language to the
380	380	28 department of local government finance for the approval or
381	381	29 recommendation of any additional modifications. The public
382	382	30 question may not be certified under IC 3-10-9-3 unless the
383	383	31 department of local government finance has first certified the
384	384	32 department of local government finance's final approval of the
385	385	33 ballot language for the public question to the county recorder.
386	386	34 (d) When the county recorder receives final approval of the
387	387	35 ballot language under this section, the county recorder shall
388	388	36 immediately certify the public question to the county election
389	389	37 board under IC 3-10-9-3 and file a notice of the certification with
390	390	38 the county auditor. The county election board shall place the public
391	391	39 question on the ballot in accordance with IC 3-10-9 at the next
392	392	40 regularly scheduled general election that will occur in all the
393	393	41 precincts of the reorganizing municipality and reorganizing
394	394	42 township.
395	395	2023 IN 1062—LS 6698/DI 87 10
396	396	1 Sec. 15. IC 3 applies to the election at which a public question
397	397	2 under this chapter is considered.
398	398	3 Sec. 16. (a) Except as provided in subsection (b), at the same
399	399	4 time that election results are certified under IC 3, the circuit court
400	400	5 clerk of each of the counties in which a public question under this
401	401	6 chapter is on the ballot shall jointly issue, in the form prescribed by
402	402	7 the Indiana election commission, a certificate declaring whether
403	403	8 the public question is approved or rejected by a majority of the
404	404	9 sum of the voters voting on the public question in the reorganizing
405	405	10 municipality and the unincorporated area of the reorganizing
406	406	11 township. In addition to any other requirements under IC 3
407	407	12 concerning filing of the certification, the certification shall be sent
408	408	13 to each of the following:
409	409	14 (1) The township trustee of the reorganizing township.
410	410	15 (2) The clerk of the reorganizing municipality.
411	411	16 (3) The county auditor of each county in which the
412	412	17 reorganizing municipality and reorganizing township are
413	413	18 located.
414	414	19 (4) The county recorder of each county in which the
415	415	20 reorganizing municipality and reorganizing township are
416	416	21 located.
417	417	22 (5) The state board of accounts.
418	418	23 (6) The department of local government finance.
419	419	24 (7) The department of state revenue.
420	420	25 (8) The budget agency.
421	421	26 (b) The following apply to a public question under this chapter:
422	422	27 (1) The public question on a plan of reorganization shall be
423	423	28 placed on the ballot for consideration by the voters of the
424	424	29 reorganizing municipality and the unincorporated area of the
425	425	30 reorganizing township.
426	426	31 (2) The vote on the public question shall be tabulated by
427	427	32 determining the sum of the votes of voters who reside in the
428	428	33 reorganizing municipality and the unincorporated area of the
429	429	34 reorganizing township.
430	430	35 (3) The circuit court clerk shall issue, in a form prescribed by
431	431	36 the Indiana election commission, a certificate regarding
432	432	37 whether the public question is approved or rejected by the
433	433	38 sum of the voters of the reorganizing municipality and
434	434	39 unincorporated area of the reorganizing township voting on
435	435	40 the public question.
436	436	41 Sec. 17. Each county recorder receiving a certification from a
437	437	42 circuit court clerk under section 16 of this chapter shall file the
438	438	2023 IN 1062—LS 6698/DI 87 11
439	439	1 certification without charge with the plan of reorganization
440	440	2 recorded under section 12 of this chapter.
441	441	3 Sec. 18. (a) The reorganization is approved only if the
442	442	4 percentage of the sum of the voters voting on the public question
443	443	5 who:
444	444	6 (1) reside within the reorganizing municipality and the
445	445	7 unincorporated area of the reorganizing township; and
446	446	8 (2) vote in favor of the proposed reorganization;
447	447	9 is greater than fifty percent (50%). If the reorganization is not
448	448	10 approved, the reorganization is terminated.
449	449	11 (b) If the reorganization is approved, the municipality and
450	450	12 township are reorganized in the form and under the conditions
451	451	13 specified in the plan of reorganization filed with the county
452	452	14 recorder under this chapter. The reorganization does not become
453	453	15 effective until officers are elected as provided in section 20 of this
454	454	16 chapter.
455	455	17 Sec. 19. (a) This section applies to a reorganization involving a
456	456	18 reorganizing municipality and a reorganizing township that are
457	457	19 participating units in a fire protection territory on the date the
458	458	20 reorganization is approved by voters.
459	459	21 (b) The fiscal body of the reorganized political subdivision may:
460	460	22 (1) establish an equipment replacement fund under
461	461	23 IC 36-8-19-8.5 and impose a property tax for the fund as
462	462	24 provided in IC 36-8-19-8.5; and
463	463	25 (2) take any other action under IC 36-8-19-8.5 that may be
464	464	26 taken under that section by a participating unit in a fire
465	465	27 protection territory.
466	466	28 (c) If a reorganized political subdivision establishes an
467	467	29 equipment replacement fund under IC 36-8-19-8.5 as authorized
468	468	30 by this section, the department of local government finance may
469	469	31 adjust the maximum permissible ad valorem property tax levy that
470	470	32 would otherwise apply to the reorganized political subdivision in
471	471	33 the same manner in which the department of local government
472	472	34 finance may adjust the maximum permissible ad valorem property
473	473	35 tax levy of a civil taxing unit under IC 6-1.1-18.5-10.5 to meet the
474	474	36 civil taxing unit's obligations to a fire protection territory
475	475	37 established under IC 36-8-19.
476	476	38 Sec. 20. At the next general election after the voters approve a
477	477	39 reorganization, one (1) set of officers for the reorganized political
478	478	40 subdivision shall be elected by the voters residing in the
479	479	41 reorganizing municipality and in the unincorporated area of the
480	480	42 reorganizing township. In the election:
481	481	2023 IN 1062—LS 6698/DI 87 12
482	482	1 (1) one (1) member of the legislative body of the reorganized
483	483	2 political subdivision shall be elected from each election
484	484	3 district established by the reorganizing municipality by
485	485	4 resolution; and
486	486	5 (2) the total number of at-large members shall be elected if
487	487	6 prescribed by statute for the reorganizing political
488	488	7 subdivision.
489	489	8 Sec. 21. (a) The reorganized political subdivision has the powers
490	490	9 granted by statute to the reorganizing township or reorganizing
491	491	10 municipality, including a power described in subsection (b).
492	492	11 However, if authorized by the plan of reorganization approved by
493	493	12 the voters in a public question under this chapter, the reorganized
494	494	13 political subdivision will exercise a power or have the officers or
495	495	14 number of offices that a statute would have permitted the
496	496	15 reorganizing township to have.
497	497	16 (b) Except as provided in the plan of reorganization, the
498	498	17 reorganized political subdivision may also do any of the following:
499	499	18 (1) Establish any fund that the reorganizing municipality or
500	500	19 reorganizing township (either acting on its own or jointly with
501	501	20 another political subdivision) was authorized to establish
502	502	21 before the reorganization.
503	503	22 (2) Impose any tax levy or adopt any tax that the reorganizing
504	504	23 municipality or reorganizing township was authorized to
505	505	24 impose or adopt before the reorganization.
506	506	25 (c) Notwithstanding subsection (a), the reorganization of the
507	507	26 municipality and township does not affect the rights, powers, and
508	508	27 duties of a political subdivision located in whole or in part within
509	509	28 the reorganizing municipality or reorganizing township. The
510	510	29 reorganized political subdivision may not exercise within the
511	511	30 political subdivision any right, power, or duty unless that right,
512	512	31 power, or duty was exercised within the political subdivision before
513	513	32 the reorganization by the reorganizing municipality or
514	514	33 reorganizing township.
515	515	34 Sec. 22. (a) If a law does not permit the reorganized political
516	516	35 subdivision to exercise generally throughout the reorganized
517	517	36 political subdivision a power that the reorganized municipality or
518	518	37 reorganized township had before the reorganization, the
519	519	38 reorganized political subdivision may exercise the power outside
520	520	39 the original territory of the municipality only by following the laws
521	521	40 applicable to the expansion of the service area of the reorganizing
522	522	41 municipality.
523	523	42 (b) Subject to subsection (a), the reorganized political
524	524	2023 IN 1062—LS 6698/DI 87 13
525	525	1 subdivision shall continue to carry out the duties imposed by
526	526	2 Indiana law on the township that reorganized with the
527	527	3 municipality.
528	528	4 Sec. 23. A plan of reorganization may establish within a
529	529	5 reorganized political subdivision territories or districts:
530	530	6 (1) in which specified township services provided by the
531	531	7 municipality will be provided at different levels, quantities, or
532	532	8 amounts; and
533	533	9 (2) in which the fees, charges, or taxes imposed by the
534	534	10 municipality will vary depending on the level, quantity, or
535	535	11 amount of the services provided.
536	536	12 Sec. 24. The following apply in the case of a reorganization
537	537	13 under this chapter:
538	538	14 (1) Indebtedness that was incurred by the reorganizing
539	539	15 municipality or reorganizing township before the
540	540	16 reorganization:
541	541	17 (A) may not be imposed on taxpayers that were not
542	542	18 responsible for payment of the indebtedness before the
543	543	19 reorganization; and
544	544	20 (B) must be paid by the taxpayers that were responsible for
545	545	21 payment of the indebtedness before the reorganization.
546	546	22 (2) Pension obligations existing as of the effective date of the
547	547	23 reorganization:
548	548	24 (A) may not be imposed on taxpayers that were not
549	549	25 responsible for payment of the pension obligations before
550	550	26 the reorganization; and
551	551	27 (B) must be paid by the taxpayers that were responsible for
552	552	28 payment of the pension obligations before the
553	553	29 reorganization.
554	554	30 Sec. 25. The following apply in the case of a reorganization
555	555	31 under this chapter:
556	556	32 (1) If the reorganizing township borrowed money from a
557	557	33 township fund under IC 36-6-6-14(c) to pay the operating
558	558	34 expenses of the township fire department or a volunteer fire
559	559	35 department before the reorganization:
560	560	36 (A) the reorganized political subdivision is not required to
561	561	37 repay the entire loan during the following year; and
562	562	38 (B) the reorganized political subdivision may repay the
563	563	39 loan in installments during the following five (5) years.
564	564	40 (2) Except as provided in subdivision (3):
565	565	41 (A) the reorganized political subdivision continues to be
566	566	42 responsible after the reorganization for providing
567	567	2023 IN 1062—LS 6698/DI 87 14
568	568	1 township services in all areas of the township; and
569	569	(B) subject to section 26 of this chapter, 2 the reorganized
570	570	3 political subdivision retains the powers of a township after
571	571	4 the reorganization in order to provide township services as
572	572	5 required by clause (A).
573	573	6 (3) Powers and duties of the reorganized political subdivision
574	574	7 may be transferred as authorized in an interlocal cooperation
575	575	8 agreement approved under IC 36-1-7 or as authorized in a
576	576	9 cooperative agreement approved under IC 36-1.5-5.
577	577	10 (4) Section 23 of this chapter applies to the debt service levy
578	578	11 of the municipality and to the department of local government
579	579	12 finance's determination of the new maximum permissible ad
580	580	13 valorem property tax levy for the reorganized political
581	581	14 subdivision.
582	582	15 (5) The reorganized political subdivision may not borrow
583	583	16 money under IC 36-6-6-14(b) or IC 36-6-6-14(c).
584	584	17 (6) The new maximum permissible ad valorem property tax
585	585	18 levy for the reorganized political subdivision's firefighting
586	586	19 fund under IC 36-8-13-4 is equal to:
587	587	20 (A) the result of:
588	588	21 (i) the maximum permissible ad valorem property tax
589	589	22 levy for the township's firefighting fund under
590	590	23 IC 36-8-13-4 in the year preceding the year in which the
591	591	24 reorganization is effective; multiplied by
592	592	25 (ii) the assessed value growth quotient applicable for
593	593	26 property taxes first due and payable in the year in which
594	594	27 the reorganization is effective; plus
595	595	28 (B) any amounts borrowed by the township under
596	596	29 IC 36-6-6-14(b) or IC 36-6-6-14(c) in the year preceding
597	597	30 the year in which the reorganization is effective.
598	598	31 Sec. 26. (a) As used in this section, "qualified service provider"
599	599	32 means a nonprofit social services organization, nonprofit human
600	600	33 services organization, nonprofit community organization, or other
601	601	34 nonprofit organization that provides support to those in need.
602	602	35 (b) A reorganized political subdivision may provide all township
603	603	36 assistance within the former boundaries of the reorganizing
604	604	37 township by contracting with qualified service providers to provide
605	605	38 township assistance in accordance with the township assistance
606	606	39 standards adopted by the legislative body of the reorganized
607	607	40 political subdivision under IC 12-20-5.5-2.
608	608	41 (c) The reorganized political subdivision may fund township
609	609	42 assistance from taxes collected as a result of the township
610	610	2023 IN 1062—LS 6698/DI 87 15
611	611	1 assistance tax rate and credited to the township assistance fund. A
612	612	2 qualified service provider may use money the provider is paid from
613	613	3 the township assistance fund to provide grants of township
614	614	4 assistance to individuals and to augment the qualified service
615	615	5 provider's programs that provide services consistent with the
616	616	6 township standards. The reorganized political subdivision shall bid
617	617	7 the contract under this section by issuing a request for proposals
618	618	8 under IC 5-22-9.
619	619	9 Sec. 27. If the functions of an elected office are transferred to
620	620	10 another elected office by a reorganization under this chapter, any
621	621	11 law, rule, or agreement that requires or permits an action by an
622	622	12 elected officer shall be treated after the functions of the elected
623	623	13 officer are transferred as referring to the elected officer to whom
624	624	14 the functions have been transferred by the reorganization.
625	625	15 Sec. 28. The legislative body of a reorganized political
626	626	16 subdivision may terminate a reorganization or restore the
627	627	17 reorganizing township in the same manner that a reorganization
628	628	18 may be initiated under this chapter. If the voters in the reorganized
629	629	19 political subdivision approve a public question approving
630	630	20 termination of the reorganization or restoration of the
631	631	21 reorganizing township, the reorganized political subdivision
632	632	22 terminates the reorganization and restores the reorganizing
633	633	23 municipality and reorganizing township in the same manner as a
634	634	24 reorganization is completed under this chapter.
635	635	25 Sec. 29. The provisions of this article apply to a reorganization
636	636	26 under this chapter to the extent that the provisions of this article
637	637	27 are applicable and do not conflict with this chapter.
638	638	2023 IN 1062—LS 6698/DI 87