Introduced Version
HOUSE BILL No. 1062
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 36-1.5.
Synopsis: Reorganization of municipality and township. Allows a
municipality in a county (excluding Marion County) to reorganize with
a township that has at least 70% of its population within the
municipality, if: (1) the municipality adopts a reorganization plan; and
(2) more than 50% of the sum of all voters in the municipality and the
unincorporated area of the township approve the reorganization plan.
Allows the reorganized political subdivision to provide township
assistance within the former boundaries of the reorganizing township
by contracting with nonprofit organizations.
Effective: July 1, 2023.
Engleman
January 9, 2023, read first time and referred to Committee on Local Government.
2023 IN 1062—LS 6698/DI 87 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. 1062
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 36-1.5-4-1, AS ADDED BY P.L.186-2006,
2 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2023]: Sec. 1. (a) Any of the following may reorganize under
4 this chapter:
5 (1) Two (2) or more counties. A county reorganizing under this
6 subdivision must be adjacent to at least one (1) other county
7 participating in the reorganization.
8 (2) Two (2) or more townships located entirely within the same
9 county. A township reorganizing under this subdivision must be
10 adjacent to at least one (1) other township participating in the
11 reorganization.
12 (3) Two (2) or more municipalities. A municipality reorganizing
13 under this subdivision must be adjacent to at least one (1) other
14 municipality participating in the reorganization.
15 (4) Two (2) or more school corporations. A school corporation
16 reorganizing under this subdivision must be adjacent to at least
17 one (1) other school corporation participating in the
2023 IN 1062—LS 6698/DI 87 2
1 reorganization.
2 (5) Two (2) or more municipal corporations, other than a unit or
3 a school corporation, that have substantially equivalent powers.
4 A municipal corporation reorganizing under this subdivision must
5 be adjacent to at least one (1) other municipal corporation
6 participating in the reorganization.
7 (6) Two (2) or more special taxing districts that are adjacent to at
8 least one (1) other special taxing district participating in the
9 reorganization.
10 (7) A township and a municipality that is located in any part of
11 the same township. The governments of a township and a
12 municipality may also reorganize under IC 36-1.5-4.5, if at
13 least seventy percent (70%) of the population of the township
14 is located within the municipality.
15 (8) A county and one (1) or more townships that are located in the
16 county.
17 (9) A municipality and a county that does not contain a
18 consolidated city.
19 (10) A school corporation and a county or municipality in which
20 a majority of the students of the school corporation have legal
21 settlement (as defined by IC 20-18-2-11).
22 (11) A municipal corporation, other than a unit or a school
23 corporation, and a county or municipality in which a majority of
24 the population of the municipal corporation resides.
25 (b) If a political subdivision reorganizes under this article with one
26 (1) or more other political subdivisions:
27 (1) any political subdivisions that did not participate in the public
28 question on the reorganization are not reorganized under this
29 article;
30 (2) the reorganization affects only those political subdivisions in
31 which the reorganization is approved as specified in this article;
32 and
33 (3) the reorganization does not affect the rights, powers, and
34 duties of any political subdivisions in the county in which the
35 reorganization is not approved as specified in this article.
36 SECTION 2. IC 36-1.5-4-8, AS ADDED BY P.L.186-2006,
37 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
38 JULY 1, 2023]: Sec. 8. The department of local government finance
39 may prescribe forms for petitions, resolutions, certifications, and other
40 writings required under this chapter and IC 36-1.5-4.5. A petition,
41 resolution, certification, or other writing related to a reorganization
42 must be substantially in the form prescribed by the department of local
2023 IN 1062—LS 6698/DI 87 3
1 government finance.
2 SECTION 3. IC 36-1.5-4.5 IS ADDED TO THE INDIANA CODE
3 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
4 JULY 1, 2023]:
5 Chapter 4.5. Reorganization of Municipal and Township
6 Government
7 Sec. 1. This chapter applies only to the reorganization of a
8 township and a municipality, if at least seventy percent (70%) of
9 the population of the township is located within the boundaries of
10 the municipality.
11 Sec. 2. This chapter does not apply to a municipality or
12 township in Marion County.
13 Sec. 3. As used in this chapter, "reorganized political
14 subdivision" means the governmental entity that is the successor
15 to the reorganizing municipality and reorganizing township after
16 a reorganization under this chapter.
17 Sec. 4. As used in this chapter, "reorganizing municipality"
18 means the municipality that adopts a resolution under section 6 of
19 this chapter.
20 Sec. 5. As used in this chapter, "reorganizing township" means
21 the township named in the resolution adopted under section 6 of
22 this chapter.
23 Sec. 6. (a) A municipal legislative body may initiate a
24 reorganization under this chapter by adopting a resolution
25 proposing a reorganization with the township named in the
26 resolution.
27 (b) The clerk of the reorganizing municipality shall certify the
28 resolution to the township trustee and township board of the
29 reorganizing township.
30 Sec. 7. A reorganization approved under this chapter takes
31 effect when the officers of the reorganized political subdivision are
32 elected as provided in section 20 of this chapter.
33 Sec. 8. When a reorganization under this chapter takes effect,
34 the following occur:
35 (1) The reorganizing township government and offices of the
36 reorganizing township cease to exist and the terms of the
37 township trustee and township board of the reorganizing
38 township are terminated.
39 (2) The reorganizing municipal government and offices of the
40 reorganizing municipality cease to exist and the terms of the
41 executive of the municipality and legislative body of the
42 reorganizing municipality are terminated.
2023 IN 1062—LS 6698/DI 87 4
1 (3) If provided for in the approved reorganization plan, the
2 boundaries of the reorganizing municipality, the reorganizing
3 township, or both, are adjusted as described in the
4 reorganization plan. However, the area within the boundaries
5 of the reorganizing township constitute the service area for
6 purposes of providing township assistance under section 26 of
7 this chapter.
8 (4) The property and liabilities of the reorganizing township
9 become the property and liabilities of the reorganized political
10 subdivision, subject to section 24 of this chapter.
11 (5) Any reference:
12 (A) in the Indiana Code;
13 (B) in the Indiana Administrative Code; or
14 (C) in any resolution;
15 to the township board or township legislative body of a
16 reorganizing township shall be considered a reference to the
17 legislative body of the reorganized political subdivision.
18 (6) Any reference:
19 (A) in the Indiana Code;
20 (B) in the Indiana Administrative Code; or
21 (C) in any resolution;
22 to the township trustee or township executive of a
23 reorganizing township shall be considered a reference to the
24 executive of the reorganized political subdivision.
25 Sec. 9. (a) The municipal legislative body shall prepare a
26 comprehensive plan of reorganization. The plan of reorganization
27 governs the actions, duties, and powers of the reorganized political
28 subdivision that are not specified by law.
29 (b) The plan of reorganization must include at least the
30 following:
31 (1) Subject to section 24 of this chapter, a description of the
32 taxing areas in which taxes to retire obligations of the
33 reorganizing municipality and reorganizing township will be
34 imposed.
35 (2) A description of the election districts or appointment
36 districts from which officers of the reorganized political
37 subdivision will be elected or appointed, and the manner in
38 which the membership of each elected or appointed office will
39 be elected or appointed.
40 (3) Subject to IC 36-1.5-4-40.5, a description of the services to
41 be provided by the reorganized political subdivision within
42 the area of the township including fire protection services,
2023 IN 1062—LS 6698/DI 87 5
1 and the service areas in which the services will be provided.
2 (4) A description of the provision of township assistance by
3 contract with qualified providers in accordance with section
4 26 of this chapter.
5 (5) The disposition of the personnel, the agreements, the
6 assets, and, subject to section 24 of this chapter, the liabilities
7 of the reorganizing municipality and reorganizing township,
8 including the terms and conditions upon which the transfer of
9 property and personnel will be achieved.
10 (6) Any other matter that the legislative body of the
11 reorganizing municipality determines is necessary or
12 appropriate to include in the plan of reorganization.
13 (7) The fiscal impact analysis required by subsection (d).
14 (c) The reorganizing municipality shall post a copy of the plan
15 of reorganization on a website maintained or authorized by the
16 reorganizing municipality not more than thirty (30) days after the
17 plan of reorganization is prepared by the municipal legislative
18 body. If the plan of reorganization is amended, the reorganizing
19 municipality shall post the amended plan on the website
20 maintained or authorized by the reorganizing municipality not
21 later than seven (7) days after the amended plan is adopted.
22 (d) The reorganizing municipal legislative body must include in
23 the plan of reorganization a fiscal impact analysis of the proposed
24 reorganization. The fiscal impact analysis must include at least the
25 following:
26 (1) The estimated effect of the proposed reorganization on all
27 taxpayers residing in the reorganizing municipality and
28 reorganizing township, including the expected tax rates, tax
29 levies, expenditure levels, service levels, and annual debt
30 service payments in those political subdivisions.
31 (2) A description of the services to be provided within the
32 reorganized political subdivision, including fire protection
33 services, and the method or methods of financing services
34 within the reorganized political subdivision. The fiscal impact
35 analysis must:
36 (A) present itemized estimated costs for each department
37 or agency of the reorganizing municipality and
38 reorganizing township; and
39 (B) explain how specific and detailed expenses will be
40 funded from taxes, fees, grants, and other funding.
41 (3) A description of any capital improvements to be provided
42 in the reorganized political subdivision and the method or
2023 IN 1062—LS 6698/DI 87 6
1 methods of financing those capital improvements.
2 (4) Any estimated effects on political subdivisions in the
3 county that are not participating in the reorganization and on
4 taxpayers located in those political subdivisions.
5 (e) The legislative body of the reorganizing municipality shall
6 submit the fiscal impact analysis to the department of local
7 government finance at least three (3) months before the election in
8 which the public question will be on the ballot. The municipal
9 legislative body may not adopt a plan of reorganization unless the
10 reorganizing municipal legislative body has submitted the fiscal
11 impact analysis to the department of local government finance. The
12 department of local government finance must do the following
13 within a reasonable time, but not later than thirty (30) days before
14 the date of the election in which the public question will be on the
15 ballot:
16 (1) Review the fiscal impact analysis.
17 (2) Make any comments concerning the fiscal impact analysis
18 that the department of local government finance considers
19 appropriate.
20 (3) Provide the department of local government finance's
21 comments under subdivision (2) to the legislative body of the
22 reorganizing municipality and reorganizing township.
23 (4) Post the department of local government finance's
24 comments under subdivision (2) on the department of local
25 government finance's website.
26 Sec. 10. (a) The reorganizing municipal legislative body shall
27 provide for the following:
28 (1) Consideration of a plan of reorganization in the form of a
29 resolution incorporating the plan of reorganization in full or
30 by reference.
31 (2) Reading of the resolution incorporating the plan of
32 reorganization in at least two (2) separate meetings of the
33 reorganizing municipal legislative body.
34 (3) Conducting a public hearing on the plan of reorganization:
35 (A) not sooner than five (5) days after notice of the public
36 hearing is published under IC 5-3-1; and
37 (B) before the reorganizing municipal legislative body
38 takes final action on the resolution to adopt the plan of
39 reorganization.
40 (b) At a public hearing on a plan of reorganization under
41 subsection (a), or in a public meeting held not more than thirty (30)
42 days after the public hearing concludes, the legislative body of a
2023 IN 1062—LS 6698/DI 87 7
1 reorganizing municipality shall do one (1) of the following:
2 (1) Adopt the plan of reorganization.
3 (2) Adopt the plan of reorganization with modifications.
4 (3) Reject the plan of reorganization.
5 (c) The reorganizing municipal legislative body shall take any
6 of the actions described in subsection (b) on:
7 (1) a revised plan of reorganization; and
8 (2) each resolution modifying a plan of reorganization or
9 revised plan of reorganization;
10 in the same manner as the legislative body may take action on the
11 initially submitted plan of reorganization.
12 Sec. 11. When a reorganization plan becomes effective under
13 this chapter, the following occur:
14 (1) The resolutions, rules, and bylaws of the reorganizing
15 township government:
16 (A) remain in force within the township; and
17 (B) continue in force until amended or repealed by the
18 reorganized municipal legislative body or an
19 administrative body of the reorganized municipality.
20 (2) Pending actions that involve the reorganizing township
21 government shall be prosecuted to final judgment and
22 execution, and judgments rendered in those actions may be
23 executed and enforced against the reorganized political
24 subdivision without any change of the name of the plaintiff or
25 defendant.
26 Sec. 12. (a) The municipal legislative body shall certify the
27 legislative body's final action on a plan of reorganization or revised
28 plan of reorganization, as modified by the legislative body, in the
29 manner prescribed by the department of local government finance,
30 to the following:
31 (1) The township trustee of the reorganizing township.
32 (2) The county fiscal officer of each county in which the
33 reorganizing municipality and reorganizing township are
34 located.
35 (3) The county recorder of each county in which the
36 reorganizing municipality and reorganizing township are
37 located.
38 (4) The county voter registration office of each county in
39 which the reorganizing municipality and reorganizing
40 township are located.
41 (5) The department of local government finance.
42 (b) Each county recorder receiving a certification under
2023 IN 1062—LS 6698/DI 87 8
1 subsection (a) shall record the certification and the plan of
2 reorganization in the records of the county recorder without
3 charge.
4 (c) The county recorder shall notify the county election board
5 of each county in which the reorganizing municipality and
6 reorganizing township are located when the certification is
7 received. The county election board shall then prepare and submit
8 ballot language to the department of local government finance.
9 Sec. 13. (a) Before the public question on a reorganization under
10 this chapter is placed on the ballot, the municipal legislative body
11 may adopt a resolution to rescind the plan of reorganization
12 previously adopted and certified. The resolution to rescind the plan
13 of reorganization must be certified by the legislative body to the:
14 (1) clerk of the reorganizing municipality and the township
15 trustee of the reorganizing township;
16 (2) county fiscal officer of each county in which the
17 reorganizing municipality and reorganizing township are
18 located; and
19 (3) county recorder of each county in which the reorganizing
20 municipality and reorganizing township are located;
21 not later than July 15.
22 (b) Each county recorder receiving a certification under
23 subsection (a) shall do the following:
24 (1) Record the certification in the records of the county
25 recorder without charge.
26 (2) Notify the county election board of each county in which
27 the reorganizing municipality and reorganizing township are
28 located that the public question on the plan of reorganization
29 is not eligible to be placed on the ballot for consideration by
30 the voters of the reorganizing municipality and reorganizing
31 township.
32 After the county election board is notified that a public question on
33 a plan of reorganization is not eligible to be placed on the ballot,
34 the county election board shall not place the public question on the
35 ballot.
36 Sec. 14. (a) A public question under this chapter shall be placed
37 on the ballot in all the precincts that are located in the reorganizing
38 municipality and the unincorporated area of the reorganizing
39 township in substantially the following form:
40 (Insert a brief description of the structure of the proposed
41 reorganized political subdivision that will succeed the
42 reorganizing municipality and reorganizing township.)
2023 IN 1062—LS 6698/DI 87 9
1 "Shall _________ (insert name of municipality) and
2 _________ (insert name of township) reorganize as a single
3 political subdivision?".
4 (b) The public question must appear on the ballot in the form
5 approved by the county election board in the form prescribed by
6 IC 3-10-9-4. The county election board shall submit the language
7 to the department of local government finance for review.
8 (c) The department of local government finance shall review the
9 language of the public question to evaluate whether the description
10 of the reorganized political subdivision that will succeed the
11 reorganizing municipality and reorganizing township is accurate
12 and is not biased against either a vote in favor of the
13 reorganization or a vote against the reorganization. The
14 department of local government finance may:
15 (1) approve the ballot language as submitted; or
16 (2) modify the ballot language as necessary to ensure that the
17 description of the reorganized political subdivision that will
18 succeed the reorganizing municipality and reorganizing
19 township is accurate and is not biased.
20 The department of local government finance shall certify its
21 approval or recommendations to the county election board not
22 more than ten (10) days after the language of the public question
23 is submitted to the department of local government finance for
24 review. If the department of local government finance recommends
25 a modification to the ballot language, the county election board
26 shall, after reviewing the recommendations of the department of
27 local government finance, submit modified ballot language to the
28 department of local government finance for the approval or
29 recommendation of any additional modifications. The public
30 question may not be certified under IC 3-10-9-3 unless the
31 department of local government finance has first certified the
32 department of local government finance's final approval of the
33 ballot language for the public question to the county recorder.
34 (d) When the county recorder receives final approval of the
35 ballot language under this section, the county recorder shall
36 immediately certify the public question to the county election
37 board under IC 3-10-9-3 and file a notice of the certification with
38 the county auditor. The county election board shall place the public
39 question on the ballot in accordance with IC 3-10-9 at the next
40 regularly scheduled general election that will occur in all the
41 precincts of the reorganizing municipality and reorganizing
42 township.
2023 IN 1062—LS 6698/DI 87 10
1 Sec. 15. IC 3 applies to the election at which a public question
2 under this chapter is considered.
3 Sec. 16. (a) Except as provided in subsection (b), at the same
4 time that election results are certified under IC 3, the circuit court
5 clerk of each of the counties in which a public question under this
6 chapter is on the ballot shall jointly issue, in the form prescribed by
7 the Indiana election commission, a certificate declaring whether
8 the public question is approved or rejected by a majority of the
9 sum of the voters voting on the public question in the reorganizing
10 municipality and the unincorporated area of the reorganizing
11 township. In addition to any other requirements under IC 3
12 concerning filing of the certification, the certification shall be sent
13 to each of the following:
14 (1) The township trustee of the reorganizing township.
15 (2) The clerk of the reorganizing municipality.
16 (3) The county auditor of each county in which the
17 reorganizing municipality and reorganizing township are
18 located.
19 (4) The county recorder of each county in which the
20 reorganizing municipality and reorganizing township are
21 located.
22 (5) The state board of accounts.
23 (6) The department of local government finance.
24 (7) The department of state revenue.
25 (8) The budget agency.
26 (b) The following apply to a public question under this chapter:
27 (1) The public question on a plan of reorganization shall be
28 placed on the ballot for consideration by the voters of the
29 reorganizing municipality and the unincorporated area of the
30 reorganizing township.
31 (2) The vote on the public question shall be tabulated by
32 determining the sum of the votes of voters who reside in the
33 reorganizing municipality and the unincorporated area of the
34 reorganizing township.
35 (3) The circuit court clerk shall issue, in a form prescribed by
36 the Indiana election commission, a certificate regarding
37 whether the public question is approved or rejected by the
38 sum of the voters of the reorganizing municipality and
39 unincorporated area of the reorganizing township voting on
40 the public question.
41 Sec. 17. Each county recorder receiving a certification from a
42 circuit court clerk under section 16 of this chapter shall file the
2023 IN 1062—LS 6698/DI 87 11
1 certification without charge with the plan of reorganization
2 recorded under section 12 of this chapter.
3 Sec. 18. (a) The reorganization is approved only if the
4 percentage of the sum of the voters voting on the public question
5 who:
6 (1) reside within the reorganizing municipality and the
7 unincorporated area of the reorganizing township; and
8 (2) vote in favor of the proposed reorganization;
9 is greater than fifty percent (50%). If the reorganization is not
10 approved, the reorganization is terminated.
11 (b) If the reorganization is approved, the municipality and
12 township are reorganized in the form and under the conditions
13 specified in the plan of reorganization filed with the county
14 recorder under this chapter. The reorganization does not become
15 effective until officers are elected as provided in section 20 of this
16 chapter.
17 Sec. 19. (a) This section applies to a reorganization involving a
18 reorganizing municipality and a reorganizing township that are
19 participating units in a fire protection territory on the date the
20 reorganization is approved by voters.
21 (b) The fiscal body of the reorganized political subdivision may:
22 (1) establish an equipment replacement fund under
23 IC 36-8-19-8.5 and impose a property tax for the fund as
24 provided in IC 36-8-19-8.5; and
25 (2) take any other action under IC 36-8-19-8.5 that may be
26 taken under that section by a participating unit in a fire
27 protection territory.
28 (c) If a reorganized political subdivision establishes an
29 equipment replacement fund under IC 36-8-19-8.5 as authorized
30 by this section, the department of local government finance may
31 adjust the maximum permissible ad valorem property tax levy that
32 would otherwise apply to the reorganized political subdivision in
33 the same manner in which the department of local government
34 finance may adjust the maximum permissible ad valorem property
35 tax levy of a civil taxing unit under IC 6-1.1-18.5-10.5 to meet the
36 civil taxing unit's obligations to a fire protection territory
37 established under IC 36-8-19.
38 Sec. 20. At the next general election after the voters approve a
39 reorganization, one (1) set of officers for the reorganized political
40 subdivision shall be elected by the voters residing in the
41 reorganizing municipality and in the unincorporated area of the
42 reorganizing township. In the election:
2023 IN 1062—LS 6698/DI 87 12
1 (1) one (1) member of the legislative body of the reorganized
2 political subdivision shall be elected from each election
3 district established by the reorganizing municipality by
4 resolution; and
5 (2) the total number of at-large members shall be elected if
6 prescribed by statute for the reorganizing political
7 subdivision.
8 Sec. 21. (a) The reorganized political subdivision has the powers
9 granted by statute to the reorganizing township or reorganizing
10 municipality, including a power described in subsection (b).
11 However, if authorized by the plan of reorganization approved by
12 the voters in a public question under this chapter, the reorganized
13 political subdivision will exercise a power or have the officers or
14 number of offices that a statute would have permitted the
15 reorganizing township to have.
16 (b) Except as provided in the plan of reorganization, the
17 reorganized political subdivision may also do any of the following:
18 (1) Establish any fund that the reorganizing municipality or
19 reorganizing township (either acting on its own or jointly with
20 another political subdivision) was authorized to establish
21 before the reorganization.
22 (2) Impose any tax levy or adopt any tax that the reorganizing
23 municipality or reorganizing township was authorized to
24 impose or adopt before the reorganization.
25 (c) Notwithstanding subsection (a), the reorganization of the
26 municipality and township does not affect the rights, powers, and
27 duties of a political subdivision located in whole or in part within
28 the reorganizing municipality or reorganizing township. The
29 reorganized political subdivision may not exercise within the
30 political subdivision any right, power, or duty unless that right,
31 power, or duty was exercised within the political subdivision before
32 the reorganization by the reorganizing municipality or
33 reorganizing township.
34 Sec. 22. (a) If a law does not permit the reorganized political
35 subdivision to exercise generally throughout the reorganized
36 political subdivision a power that the reorganized municipality or
37 reorganized township had before the reorganization, the
38 reorganized political subdivision may exercise the power outside
39 the original territory of the municipality only by following the laws
40 applicable to the expansion of the service area of the reorganizing
41 municipality.
42 (b) Subject to subsection (a), the reorganized political
2023 IN 1062—LS 6698/DI 87 13
1 subdivision shall continue to carry out the duties imposed by
2 Indiana law on the township that reorganized with the
3 municipality.
4 Sec. 23. A plan of reorganization may establish within a
5 reorganized political subdivision territories or districts:
6 (1) in which specified township services provided by the
7 municipality will be provided at different levels, quantities, or
8 amounts; and
9 (2) in which the fees, charges, or taxes imposed by the
10 municipality will vary depending on the level, quantity, or
11 amount of the services provided.
12 Sec. 24. The following apply in the case of a reorganization
13 under this chapter:
14 (1) Indebtedness that was incurred by the reorganizing
15 municipality or reorganizing township before the
16 reorganization:
17 (A) may not be imposed on taxpayers that were not
18 responsible for payment of the indebtedness before the
19 reorganization; and
20 (B) must be paid by the taxpayers that were responsible for
21 payment of the indebtedness before the reorganization.
22 (2) Pension obligations existing as of the effective date of the
23 reorganization:
24 (A) may not be imposed on taxpayers that were not
25 responsible for payment of the pension obligations before
26 the reorganization; and
27 (B) must be paid by the taxpayers that were responsible for
28 payment of the pension obligations before the
29 reorganization.
30 Sec. 25. The following apply in the case of a reorganization
31 under this chapter:
32 (1) If the reorganizing township borrowed money from a
33 township fund under IC 36-6-6-14(c) to pay the operating
34 expenses of the township fire department or a volunteer fire
35 department before the reorganization:
36 (A) the reorganized political subdivision is not required to
37 repay the entire loan during the following year; and
38 (B) the reorganized political subdivision may repay the
39 loan in installments during the following five (5) years.
40 (2) Except as provided in subdivision (3):
41 (A) the reorganized political subdivision continues to be
42 responsible after the reorganization for providing
2023 IN 1062—LS 6698/DI 87 14
1 township services in all areas of the township; and
(B) subject to section 26 of this chapter, 2 the reorganized
3 political subdivision retains the powers of a township after
4 the reorganization in order to provide township services as
5 required by clause (A).
6 (3) Powers and duties of the reorganized political subdivision
7 may be transferred as authorized in an interlocal cooperation
8 agreement approved under IC 36-1-7 or as authorized in a
9 cooperative agreement approved under IC 36-1.5-5.
10 (4) Section 23 of this chapter applies to the debt service levy
11 of the municipality and to the department of local government
12 finance's determination of the new maximum permissible ad
13 valorem property tax levy for the reorganized political
14 subdivision.
15 (5) The reorganized political subdivision may not borrow
16 money under IC 36-6-6-14(b) or IC 36-6-6-14(c).
17 (6) The new maximum permissible ad valorem property tax
18 levy for the reorganized political subdivision's firefighting
19 fund under IC 36-8-13-4 is equal to:
20 (A) the result of:
21 (i) the maximum permissible ad valorem property tax
22 levy for the township's firefighting fund under
23 IC 36-8-13-4 in the year preceding the year in which the
24 reorganization is effective; multiplied by
25 (ii) the assessed value growth quotient applicable for
26 property taxes first due and payable in the year in which
27 the reorganization is effective; plus
28 (B) any amounts borrowed by the township under
29 IC 36-6-6-14(b) or IC 36-6-6-14(c) in the year preceding
30 the year in which the reorganization is effective.
31 Sec. 26. (a) As used in this section, "qualified service provider"
32 means a nonprofit social services organization, nonprofit human
33 services organization, nonprofit community organization, or other
34 nonprofit organization that provides support to those in need.
35 (b) A reorganized political subdivision may provide all township
36 assistance within the former boundaries of the reorganizing
37 township by contracting with qualified service providers to provide
38 township assistance in accordance with the township assistance
39 standards adopted by the legislative body of the reorganized
40 political subdivision under IC 12-20-5.5-2.
41 (c) The reorganized political subdivision may fund township
42 assistance from taxes collected as a result of the township
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1 assistance tax rate and credited to the township assistance fund. A
2 qualified service provider may use money the provider is paid from
3 the township assistance fund to provide grants of township
4 assistance to individuals and to augment the qualified service
5 provider's programs that provide services consistent with the
6 township standards. The reorganized political subdivision shall bid
7 the contract under this section by issuing a request for proposals
8 under IC 5-22-9.
9 Sec. 27. If the functions of an elected office are transferred to
10 another elected office by a reorganization under this chapter, any
11 law, rule, or agreement that requires or permits an action by an
12 elected officer shall be treated after the functions of the elected
13 officer are transferred as referring to the elected officer to whom
14 the functions have been transferred by the reorganization.
15 Sec. 28. The legislative body of a reorganized political
16 subdivision may terminate a reorganization or restore the
17 reorganizing township in the same manner that a reorganization
18 may be initiated under this chapter. If the voters in the reorganized
19 political subdivision approve a public question approving
20 termination of the reorganization or restoration of the
21 reorganizing township, the reorganized political subdivision
22 terminates the reorganization and restores the reorganizing
23 municipality and reorganizing township in the same manner as a
24 reorganization is completed under this chapter.
25 Sec. 29. The provisions of this article apply to a reorganization
26 under this chapter to the extent that the provisions of this article
27 are applicable and do not conflict with this chapter.
2023 IN 1062—LS 6698/DI 87