LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
200 W. Washington St., Suite 301
Indianapolis, IN 46204
(317) 233-0696
iga.in.gov
FISCAL IMPACT STATEMENT
LS 6977 NOTE PREPARED: Jan 4, 2024
BILL NUMBER: HB 1237 BILL AMENDED:
SUBJECT: Annexation.
FIRST AUTHOR: Rep. Abbott BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED: GENERAL IMPACT: Local
DEDICATED
FEDERAL
Summary of Legislation: This bill allows a town to annex: (1) a noncontiguous residential development;
and (2) the right-of-way of a public highway connecting the development to the city. It provides that
annexation is initiated by: (1) the filing of a petition requesting annexation by the owner of the residential
development; and (2) the town legislative body adopting a resolution approving initiation of the annexation
process. The bill also requires the town to satisfy statutory requirements for annexation, including adopting
a written fiscal plan and annexation ordinance.
Effective Date: July 1, 2024.
Explanation of State Expenditures:
Explanation of State Revenues:
Explanation of Local Expenditures: The bill’s provisions expand residential development annexation laws
for towns to include (1) a noncontiguous residential development and (2) the right-of-way of a public
highway connecting the development to the town as long as the nearest boundary of the residential
development is at least 1.6 miles and not more than 2.6 miles outside a town’s corporate boundaries. The
town legislative body would have to hold a public hearing on the petitioner’s request to annex the residential
development and would have to adopt a written fiscal plan that incorporates the residential development
before adopting an ordinance approving the annexation. Remonstrances to these particular annexation
petitions would not be permitted under the bill’s provisions.
This bill’s provision may result in an increase in the administrative workload for a town’s legislative body
HB 1237 1 to the extent that the owner of the residential development petitions for annexation by the applicable town
legislative body. Actual impact would vary from jurisdiction and would be contingent on the level of
residential subdivision development activity, which meet the criteria noted in the bill, in unincorporated
areas adjacent to individual towns.
Explanation of Local Revenues:
State Agencies Affected:
Local Agencies Affected: Town legislative bodies.
Information Sources:
Fiscal Analyst: James Johnson, 317-232-9869.
HB 1237 2