Indiana 2024 Regular Session

Indiana House Bill HB1237 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. 1237
4	4	_____
5	5	DIGEST OF INTRODUCED BILL
6	6	Citations Affected: IC 36-4-3.
7	7	Synopsis: Annexation. Allows a town to annex: (1) a noncontiguous
8	8	residential development; and (2) the right-of-way of a public highway
9	9	connecting the development to the city. Provides that annexation is
10	10	initiated by: (1) the filing of a petition requesting annexation by the
11	11	owner of the residential development; and (2) the town legislative body
12	12	adopting a resolution approving initiation of the annexation process.
13	13	Requires the town to satisfy statutory requirements for annexation,
14	14	including adopting a written fiscal plan and annexation ordinance.
15	15	Effective: July 1, 2024.
16	16	Abbott, Soliday
17	17	January 9, 2024, read first time and referred to Committee on Local Government.
18	18	2024 IN 1237—LS 6977/DI 87 Introduced
19	19	Second Regular Session of the 123rd General Assembly (2024)
20	20	PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
21	21	Constitution) is being amended, the text of the existing provision will appear in this style type,
22	22	additions will appear in this style type, and deletions will appear in this style type.
23	23	Additions: Whenever a new statutory provision is being enacted (or a new constitutional
24	24	provision adopted), the text of the new provision will appear in this style type. Also, the
25	25	word NEW will appear in that style type in the introductory clause of each SECTION that adds
26	26	a new provision to the Indiana Code or the Indiana Constitution.
27	27	Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
28	28	between statutes enacted by the 2023 Regular Session of the General Assembly.
29	29	HOUSE BILL No. 1237
30	30	A BILL FOR AN ACT to amend the Indiana Code concerning local
31	31	government.
32	32	Be it enacted by the General Assembly of the State of Indiana:
33	33	1 SECTION 1. IC 36-4-3-1.7, AS AMENDED BY P.L.70-2022,
34	34	2 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
35	35	3 JULY 1, 2024]: Sec. 1.7. (a) This section applies only to an annexation
36	36	4 ordinance adopted after June 30, 2015. This section does not apply to
37	37	5 an annexation under section 5.1 or 5.3 of this chapter.
38	38	6 (b) Not earlier than six (6) months before a municipality introduces
39	39	7 an annexation ordinance, the municipality shall conduct an outreach
40	40	8 program to inform citizens regarding the proposed annexation. For an
41	41	9 annexation under section 3 or 4 of this chapter, the outreach program
42	42	10 must conduct at least six (6) public information meetings regarding the
43	43	11 proposed annexation. For an annexation under section 5 or 5.2 of this
44	44	12 chapter, the outreach program must conduct at least three (3) public
45	45	13 information meetings regarding the proposed annexation. The public
46	46	14 information meetings must provide citizens with the following
47	47	15 information:
48	48	16 (1) Maps showing the proposed boundaries of the annexation
49	49	17 territory.
50	50	2024 IN 1237—LS 6977/DI 87 2
51	51	1 (2) Proposed plans for extension of capital and noncapital
52	52	2 services in the annexation territory, including proposed dates of
53	53	3 extension. In the case of an annexation under section 5.2 of this
54	54	4 chapter, a copy of the preliminary written fiscal plan.
55	55	5 (3) Expected fiscal impact on taxpayers in the annexation
56	56	6 territory, including any increase in taxes and fees.
57	57	7 (c) The municipality shall provide notice of the dates, times, and
58	58	8 locations of the outreach program meetings. The municipality shall
59	59	9 publish the notice of the meetings under IC 5-3-1, including the date,
60	60	10 time, and location of the meetings, except that notice must be published
61	61	11 not later than thirty (30) days before the date of each meeting. The
62	62	12 municipality shall also send notice to each owner of land within the
63	63	13 annexation territory not later than thirty (30) days before the date of the
64	64	14 first meeting of the outreach program. The notice to landowners shall
65	65	15 be sent by first class mail, certified mail with return receipt requested,
66	66	16 or any other means of delivery that includes a return receipt and must
67	67	17 include the following information:
68	68	18 (1) The notice must inform the landowner that the municipality is
69	69	19 proposing to annex territory that includes the landowner's
70	70	20 property.
71	71	21 (2) The municipality is conducting an outreach program for the
72	72	22 purpose of providing information to landowners and the public
73	73	23 regarding the proposed annexation.
74	74	24 (3) The date, time, and location of the meetings to be conducted
75	75	25 under the outreach program.
76	76	26 (d) The notice shall be sent to the address of the landowner as listed
77	77	27 on the tax duplicate. If the municipality provides evidence that the
78	78	28 notice was sent:
79	79	29 (1) by certified mail, with return receipt requested or any other
80	80	30 means of delivery that includes a return receipt; and
81	81	31 (2) in accordance with this section;
82	82	32 it is not necessary that the landowner accept receipt of the notice. If a
83	83	33 remonstrance is filed under section 11 of this chapter, the municipality
84	84	34 shall file with the court proof that notices were sent to landowners
85	85	35 under this section and proof of publication.
86	86	36 (e) The notice required under this section is in addition to any notice
87	87	37 required under sections 2.1 and 2.2 of this chapter.
88	88	38 SECTION 2. IC 36-4-3-2.1, AS AMENDED BY P.L.70-2022,
89	89	39 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
90	90	40 JULY 1, 2024]: Sec. 2.1. (a) This section does not apply to an
91	91	41 annexation under section 5.1, or 5.2, or 5.3 of this chapter.
92	92	42 (b) A municipality may adopt an ordinance under this chapter only
93	93	2024 IN 1237—LS 6977/DI 87 3
94	94	1 after the legislative body has held a public hearing concerning the
95	95	2 proposed annexation. The municipality shall hold the public hearing
96	96	3 not earlier than sixty (60) days after the date the ordinance is
97	97	4 introduced. All interested parties must have the opportunity to testify
98	98	5 as to the proposed annexation. Except as provided in subsection (d),
99	99	6 notice of the hearing shall be:
100	100	7 (1) published in accordance with IC 5-3-1 except that the notice
101	101	8 shall be published at least sixty (60) days before the hearing; and
102	102	9 (2) mailed as set forth in section 2.2 of this chapter, if section 2.2
103	103	10 of this chapter applies to the annexation.
104	104	11 (c) A municipality may adopt an ordinance under this chapter not
105	105	12 earlier than thirty (30) days or not later than sixty (60) days after the
106	106	13 legislative body has held the public hearing under subsection (b).
107	107	14 (d) This subsection applies to an annexation under section 3 or 4 of
108	108	15 this chapter in which all property owners within the area to be annexed
109	109	16 provide written consent to the annexation. Notice of the hearing shall
110	110	17 be:
111	111	18 (1) published one (1) time at least twenty (20) days before the
112	112	19 hearing in accordance with IC 5-3-1; and
113	113	20 (2) mailed as set forth in section 2.2 of this chapter.
114	114	21 SECTION 3. IC 36-4-3-2.2, AS AMENDED BY P.L.70-2022,
115	115	22 SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
116	116	23 JULY 1, 2024]: Sec. 2.2. (a) This section does not apply to an
117	117	24 annexation under section 4(a)(2), 4(a)(3), 4(b), or 4(h) of this chapter
118	118	25 or an annexation described in section 5.1 or 5.3 of this chapter.
119	119	26 (b) Before a municipality may annex territory, the municipality shall
120	120	27 provide written notice of the hearing required under section 2.1 of this
121	121	28 chapter. Except as provided in subsections (f) and (g), the notice must
122	122	29 be sent by:
123	123	30 (1) certified mail, return receipt requested; or
124	124	31 (2) any other means of delivery that includes a return receipt;
125	125	32 at least sixty (60) days before the date of the hearing to each owner of
126	126	33 real property, as shown on the county auditor's current tax list, whose
127	127	34 real property is located within the territory proposed to be annexed.
128	128	35 (c) For purposes of an annexation of territory described in section
129	129	36 2.5 of this chapter, if the hearing required under section 2.1 of this
130	130	37 chapter is conducted after June 30, 2010, the notice required by this
131	131	38 section must also be sent to each owner of real property, as shown on
132	132	39 the county auditor's current tax list, whose real property is adjacent to
133	133	40 contiguous areas of rights-of-way of the public highway that are only
134	134	41 included in the annexation of territory by operation of section 2.5 of
135	135	42 this chapter on the side of the public highway that is not part of the
136	136	2024 IN 1237—LS 6977/DI 87 4
137	137	1 annexed territory.
138	138	2 (d) The notice required by this section must include the following:
139	139	3 (1) A legal description of the real property proposed to be
140	140	4 annexed.
141	141	5 (2) The date, time, location, and subject of the hearing.
142	142	6 (3) A map showing the current municipal boundaries and the
143	143	7 proposed municipal boundaries.
144	144	8 (4) Current zoning classifications for the area proposed to be
145	145	9 annexed and any proposed zoning changes for the area proposed
146	146	10 to be annexed.
147	147	11 (5) A detailed summary of the fiscal plan, described in section 13
148	148	12 of this chapter, if applicable.
149	149	13 (6) The location where the public may inspect and copy the fiscal
150	150	14 plan, if applicable.
151	151	15 (7) A statement that the municipality will provide a copy of the
152	152	16 fiscal plan, if applicable, after the fiscal plan is adopted
153	153	17 immediately to any landowner in the annexed territory who
154	154	18 requests a copy.
155	155	19 (8) The name and telephone number of a representative of the
156	156	20 municipality who may be contacted for further information.
157	157	21 (e) If the municipality complies with this section, the notice is not
158	158	22 invalidated if the owner does not receive the notice.
159	159	23 (f) This subsection applies to an annexation under section 3 or 4 of
160	160	24 this chapter in which all property owners within the area to be annexed
161	161	25 provide written consent to the annexation. The written notice described
162	162	26 in this section must be sent by:
163	163	27 (1) certified mail, return receipt requested; or
164	164	28 (2) any other means of delivery that includes a return receipt;
165	165	29 not later than twenty (20) days before the date of the hearing to each
166	166	30 owner of real property, as shown on the county auditor's current tax list,
167	167	31 whose real property is located within the territory proposed to be
168	168	32 annexed.
169	169	33 (g) This subsection applies to an annexation under section 5.2 of
170	170	34 this chapter. The written notice described in this section must be sent
171	171	35 by:
172	172	36 (1) certified mail, return receipt requested; or
173	173	37 (2) any other means of delivery that includes a return receipt;
174	174	38 not later than thirty (30) days before the date of the hearing to each
175	175	39 owner of real property, as shown on the county auditor's current tax list,
176	176	40 whose real property is located within the territory proposed to be
177	177	41 annexed.
178	178	42 SECTION 4. IC 36-4-3-3.1, AS AMENDED BY P.L.70-2022,
179	179	2024 IN 1237—LS 6977/DI 87 5
180	180	1 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
181	181	2 JULY 1, 2024]: Sec. 3.1. (a) This section does not apply to an
182	182	3 annexation under section 4(a)(2), 4(a)(3), 4(b), 4(h), or 4.1 of this
183	183	4 chapter.
184	184	5 (b) A municipality shall develop and adopt a written fiscal plan and
185	185	6 establish a definite policy by resolution of the legislative body that
186	186	7 meets the requirements set forth in section 13 of this chapter.
187	187	8 (c) Except as provided in subsection (d) and section 5.2 of this
188	188	9 chapter, the municipality shall establish and adopt the written fiscal
189	189	10 plan before mailing the notification to landowners in the territory
190	190	11 proposed to be annexed under section 2.2 of this chapter.
191	191	12 (d) In an annexation under section 5, or 5.1, or 5.3 of this chapter,
192	192	13 the municipality shall establish and adopt the written fiscal plan before
193	193	14 adopting the annexation ordinance.
194	194	15 SECTION 5. IC 36-4-3-4, AS AMENDED BY P.L.105-2022,
195	195	16 SECTION 38, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
196	196	17 JULY 1, 2024]: Sec. 4. (a) The legislative body of a municipality may,
197	197	18 by ordinance, annex any of the following:
198	198	19 (1) Territory that is contiguous to the municipality.
199	199	20 (2) Territory that is not contiguous to the municipality and is
200	200	21 occupied by a municipally owned or operated as either of the
201	201	22 following:
202	202	23 (A) An airport or landing field.
203	203	24 (B) A wastewater treatment facility or water treatment facility.
204	204	25 After a municipality annexes territory under this clause, the
205	205	26 municipality may annex additional territory to enlarge the
206	206	27 territory for the use of the wastewater treatment facility or
207	207	28 water treatment facility only if the county legislative body
208	208	29 approves that use of the additional territory by ordinance.
209	209	30 (3) Territory that is not contiguous to the municipality but is
210	210	31 found by the legislative body to be occupied by:
211	211	32 (A) a municipally owned or regulated sanitary landfill, golf
212	212	33 course, or hospital;
213	213	34 (B) a police station of the municipality; or
214	214	35 (C) a solar electric generating facility that is or will be
215	215	36 interconnected to an electric utility owned by the municipality.
216	216	37 However, if territory annexed under subdivision (2) or (3) ceases to be
217	217	38 used for the purpose for which the territory was annexed for at least
218	218	39 one (1) year, the territory reverts to the jurisdiction of the unit having
219	219	40 jurisdiction before the annexation if the unit that had jurisdiction over
220	220	41 the territory still exists. If the unit no longer exists, the territory reverts
221	221	42 to the jurisdiction of the unit that would currently have jurisdiction over
222	222	2024 IN 1237—LS 6977/DI 87 6
223	223	1 the territory if the annexation had not occurred. The clerk of the
224	224	2 municipality shall notify the offices required to receive notice of a
225	225	3 disannexation under section 19 of this chapter when the territory
226	226	4 reverts to the jurisdiction of the unit having jurisdiction before the
227	227	5 annexation. Territory that is annexed under subdivision (2) (including
228	228	6 territory that is enlarged under subdivision (2)(B) for the use of the
229	229	7 wastewater treatment facility or water treatment facility) or subdivision
230	230	8 (3) may not be considered a part of the municipality for purposes of
231	231	9 annexing additional territory.
232	232	10 (b) This subsection applies to municipalities in any of the following
233	233	11 counties:
234	234	12 (1) A county having a population of more than sixty-six thousand
235	235	13 six hundred (66,600) and less than seventy thousand (70,000).
236	236	14 (2) A county having a population of more than eighty-two
237	237	15 thousand (82,000) and less than eighty-three thousand (83,000).
238	238	16 (3) A county having a population of more than eighty thousand
239	239	17 four hundred (80,400) and less than eighty-two thousand
240	240	18 (82,000).
241	241	19 (4) A county having a population of more than forty-six thousand
242	242	20 (46,000) and less than forty-six thousand four hundred (46,400).
243	243	21 (5) A county having a population of more than thirty-seven
244	244	22 thousand (37,000) and less than thirty-seven thousand nine
245	245	23 hundred (37,900).
246	246	24 (6) A county having a population of more than thirty-six thousand
247	247	25 five hundred (36,500) and less than thirty-six thousand seven
248	248	26 hundred (36,700).
249	249	27 (7) A county having a population of more than thirty-two
250	250	28 thousand (32,000) and less than thirty-three thousand (33,000).
251	251	29 (8) A county having a population of more than twenty-three
252	252	30 thousand (23,000) and less than twenty-three thousand three
253	253	31 hundred seventy-five (23,375).
254	254	32 (9) A county having a population of more than two hundred
255	255	33 thousand (200,000) and less than two hundred fifty thousand
256	256	34 (250,000).
257	257	35 (10) A county having a population of more than two hundred fifty
258	258	36 thousand (250,000) and less than three hundred thousand
259	259	37 (300,000).
260	260	38 (11) A county having a population of more than thirty thousand
261	261	39 nine hundred (30,900) and less than thirty-two thousand (32,000).
262	262	40 (12) A county having a population of more than eighty thousand
263	263	41 (80,000) and less than eighty thousand four hundred (80,400).
264	264	42 Except as provided in subsection (c), the legislative body of a
265	265	2024 IN 1237—LS 6977/DI 87 7
266	266	1 municipality to which this subsection applies may, by ordinance, annex
267	267	2 territory that is not contiguous to the municipality, has its entire area
268	268	3 not more than two (2) miles from the municipality's boundary, is to be
269	269	4 used for an industrial park containing one (1) or more businesses, and
270	270	5 is either owned by the municipality or by a property owner who
271	271	6 consents to the annexation. However, if territory annexed under this
272	272	7 subsection is not used as an industrial park within five (5) years after
273	273	8 the date of passage of the annexation ordinance, or if the territory
274	274	9 ceases to be used as an industrial park for at least one (1) year, the
275	275	10 territory reverts to the jurisdiction of the unit having jurisdiction before
276	276	11 the annexation if the unit that had jurisdiction over the territory still
277	277	12 exists. If the unit no longer exists, the territory reverts to the
278	278	13 jurisdiction of the unit that would currently have jurisdiction over the
279	279	14 territory if the annexation had not occurred. The clerk of the
280	280	15 municipality shall notify the offices entitled to receive notice of a
281	281	16 disannexation under section 19 of this chapter when the territory
282	282	17 reverts to the jurisdiction of the unit having jurisdiction before the
283	283	18 annexation.
284	284	19 (c) A city in a county with a population of more than two hundred
285	285	20 fifty thousand (250,000) and less than three hundred thousand
286	286	21 (300,000) may not annex territory as prescribed in subsection (b) until
287	287	22 the territory is zoned by the county for industrial purposes.
288	288	23 (d) Notwithstanding any other law, territory that is annexed under
289	289	24 subsection (b) or (h) is not considered a part of the municipality for the
290	290	25 purposes of:
291	291	26 (1) annexing additional territory:
292	292	27 (A) in a county that is not described by clause (B); or
293	293	28 (B) in a county having a population of more than two hundred
294	294	29 fifty thousand (250,000) and less than three hundred thousand
295	295	30 (300,000), unless the boundaries of the noncontiguous territory
296	296	31 become contiguous to the city, as allowed by Indiana law;
297	297	32 (2) expanding the municipality's extraterritorial jurisdictional
298	298	33 area; or
299	299	34 (3) changing an assigned service area under IC 8-1-2.3-6(1).
300	300	35 (e) As used in this section, "airport" and "landing field" have the
301	301	36 meanings prescribed by IC 8-22-1.
302	302	37 (f) As used in this section, "hospital" has the meaning prescribed by
303	303	38 IC 16-18-2-179(b).
304	304	39 (g) An ordinance adopted under this section must assign the
305	305	40 territory annexed by the ordinance to at least one (1) municipal
306	306	41 legislative body district.
307	307	42 (h) This subsection applies to a city having a population of more
308	308	2024 IN 1237—LS 6977/DI 87 8
309	309	1 than twenty-eight thousand (28,000) and less than twenty-nine
310	310	2 thousand (29,000). The city legislative body may, by ordinance, annex
311	311	3 territory that:
312	312	4 (1) is not contiguous to the city;
313	313	5 (2) has its entire area not more than eight (8) miles from the city's
314	314	6 boundary;
315	315	7 (3) does not extend more than:
316	316	8 (A) one and one-half (1 1/2) miles to the west;
317	317	9 (B) three-fourths (3/4) mile to the east;
318	318	10 (C) one-half (1/2) mile to the north; or
319	319	11 (D) one-half (1/2) mile to the south;
320	320	12 of an interchange of an interstate highway (as designated by the
321	321	13 federal highway authorities) and a state highway (as designated
322	322	14 by the state highway authorities); and
323	323	15 (4) is owned by the city or by a property owner that consents to
324	324	16 the annexation.
325	325	17 (i) This subsection applies to a city having a population of more
326	326	18 than thirty-four thousand (34,000) and less than thirty-four thousand
327	327	19 five hundred (34,500). The city legislative body may, by ordinance,
328	328	20 annex territory under section 5.1 of this chapter:
329	329	21 (1) that is not contiguous to the city;
330	330	22 (2) that is south of the southernmost boundary of the city;
331	331	23 (3) the entire area of which is not more than four (4) miles from
332	332	24 the city's boundary; and
333	333	25 (4) that does not extend more than one (1) mile to the east of a
334	334	26 state highway (as designated by the state highway authorities).
335	335	27 Territory annexed under this subsection is not considered a part of the
336	336	28 city for purposes of annexation of additional territory. A city may not
337	337	29 require connection to a sewer installed to provide service to territory
338	338	30 annexed under this subsection.
339	339	31 (j) A third class city may annex a residential development under
340	340	32 section 5.2 of this chapter that is not contiguous to the city. A town
341	341	33 may annex a residential development under section 5.3 of this
342	342	34 chapter that is not contiguous to the town.
343	343	35 SECTION 6. IC 36-4-3-5.3 IS ADDED TO THE INDIANA CODE
344	344	36 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
345	345	37 1, 2024]: Sec. 5.3. (a) As used in this section, "residential
346	346	38 development" means a parcel of land that is subdivided or will be
347	347	39 subdivided into:
348	348	40 (1) lots, parcels, tracts, units, or interests that:
349	349	41 (A) include an existing Class 2 structure (as defined in
350	350	42 IC 22-12-1-5); or
351	351	2024 IN 1237—LS 6977/DI 87 9
352	352	1 (B) are designated for the construction of a Class 2
353	353	2 structure;
354	354	3 each of which is encumbered by substantively identical
355	355	4 restrictive covenants concerning one (1) or more servient
356	356	5 estates located within the boundaries of the original undivided
357	357	6 parcel, or other governing document of record;
358	358	7 (2) lots, parcels, tracts, units, or interests that:
359	359	8 (A) include an existing Class 1 structure (as defined in
360	360	9 IC 22-12-1-4); or
361	361	10 (B) are designated for the construction of a Class 1
362	362	11 structure; and
363	363	12 (3) a common area.
364	364	13 (b) In addition to annexing territory under section 3, 4, 5, or 5.1
365	365	14 of this chapter, a town may annex a residential development that
366	366	15 is not contiguous to the town, if all of the following are satisfied:
367	367	16 (1) At least fifty (50) proposed single family lots and sixty (60)
368	368	17 proposed multi-family lots will be within the residential
369	369	18 development.
370	370	19 (2) The nearest boundary of the residential development is at
371	371	20 least one and six-tenths (1.6) miles and not more than two and
372	372	21 six-tenths (2.6) miles outside the town's corporate boundaries.
373	373	22 (3) Upon construction, the residential development dwellings
374	374	23 will be connected to the:
375	375	24 (A) water service of the town; and
376	376	25 (B) sewer service of the town or a regional sewer district
377	377	26 established under IC 13-26.
378	378	27 (4) The residential development includes a commercial area
379	379	28 containing or proposed to contain buildings intended to be
380	380	29 used and operated for commercial purposes.
381	381	30 (5) The residential development that connects the residential
382	382	31 development to the corporate limits of the city is adjacent to
383	383	32 the public highway right-of-way which is part of the state
384	384	33 highway system (as defined in IC 8-23-1-40).
385	385	34 (6) The annexation territory includes only the public highway
386	386	35 right-of-way and the residential development.
387	387	36 (7) The aggregate external boundary of the annexation
388	388	37 territory that coincides with the boundary of the municipality
389	389	38 is greater than zero (0).
390	390	39 (c) The owner of the property that is the site of the residential
391	391	40 development may file a petition with the legislative body of the
392	392	41 town requesting the town to annex all of the property that
393	393	42 comprises the residential development site. The annexation may
394	394	2024 IN 1237—LS 6977/DI 87 10
395	395	1 proceed only if the town adopts a resolution approving the
396	396	2 initiation of the annexation process not more than sixty (60) days
397	397	3 after the petition is filed. If the town does not adopt a resolution
398	398	4 within the sixty (60) day period, the petition is void.
399	399	5 (d) If the town legislative body adopts a resolution approving
400	400	6 initiation of the annexation, the town shall prepare a written
401	401	7 preliminary fiscal plan that must be made available to the public
402	402	8 by posting the fiscal plan and any revisions to the fiscal plan on the
403	403	9 town's website. Before adopting the annexation ordinance, the
404	404	10 town legislative body shall adopt a written fiscal plan by resolution
405	405	11 that incorporates any revisions made to the preliminary fiscal plan.
406	406	12 (e) The town shall hold a public hearing not earlier than thirty
407	407	13 (30) days after the date the annexation ordinance is introduced. All
408	408	14 interested parties must have the opportunity to testify as to the
409	409	15 proposed annexation. Notice of the hearing shall be published in
410	410	16 accordance with IC 5-3-1 except that the notice shall be published
411	411	17 at least thirty (30) days before the hearing. The town may adopt an
412	412	18 ordinance not earlier than thirty (30) days or not later than sixty
413	413	19 (60) days after the town legislative body has held the public hearing
414	414	20 under this subsection.
415	415	21 (f) Territory annexed under this section may not be considered
416	416	22 a part of the town for purposes of annexing additional territory
417	417	23 under section 3 or 4 of this chapter. However, territory annexed
418	418	24 under this chapter shall be considered a part of the town for
419	419	25 purposes of annexing additional territory under section 5 or 5.1 of
420	420	26 this chapter.
421	421	27 (g) For purposes of an annexation under this section:
422	422	28 (1) section 1.5 of this chapter does not apply; and
423	423	29 (2) the landowner of the public highway right-of-way that is
424	424	30 part of the state highway system (as defined in IC 8-23-1-40)
425	425	31 is considered to be the state of Indiana.
426	426	32 (h) An annexation ordinance adopted under this section takes
427	427	33 effect not less than thirty (30) days after the adoption of the
428	428	34 ordinance and upon the filing and recording of the ordinance
429	429	35 under section 22 of this chapter.
430	430	36 SECTION 7. IC 36-4-3-7, AS AMENDED BY P.L.105-2022,
431	431	37 SECTION 39, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
432	432	38 JULY 1, 2024]: Sec. 7. (a) After an ordinance is adopted under section
433	433	39 3, 4, 5, 5.1, or 5.2, or 5.3 of this chapter, it must be published in the
434	434	40 manner prescribed by IC 5-3-1. Except as provided in subsection (b),
435	435	41 (c), or (e), or (f), in the absence of remonstrance and appeal under
436	436	42 section 11 or 15.5 of this chapter, the ordinance takes effect at least
437	437	2024 IN 1237—LS 6977/DI 87 11
438	438	1 ninety (90) days after its publication and upon the filing required by
439	439	2 section 22(a) of this chapter.
440	440	3 (b) For the purposes of this section, territory that has been:
441	441	4 (1) added to an existing fire protection district under
442	442	5 IC 36-8-11-11; or
443	443	6 (2) approved by ordinance of the county legislative body to be
444	444	7 added to an existing fire protection district under IC 36-8-11-11,
445	445	8 notwithstanding that the territory's addition to the fire protection
446	446	9 district has not yet taken effect;
447	447	10 shall be considered a part of the fire protection district as of the date
448	448	11 that the fire protection district was originally established.
449	449	12 (c) This subsection applies only to a fire protection district
450	450	13 established after July 1, 1987. This subsection does not apply to an
451	451	14 annexation under subsection (g). Whenever a municipality annexes
452	452	15 territory, all or part of which lies within a fire protection district (IC
453	453	16 36-8-11), the annexation ordinance (in the absence of remonstrance
454	454	17 and appeal under section 11 or 15.5 of this chapter) takes effect the
455	455	18 second January 1 that follows the date the ordinance is adopted and
456	456	19 upon the filing required by section 22(a) of this chapter. The
457	457	20 municipality shall:
458	458	21 (1) provide fire protection to that territory beginning the date the
459	459	22 ordinance is effective; and
460	460	23 (2) send written notice to the fire protection district of the date the
461	461	24 municipality will begin to provide fire protection to the annexed
462	462	25 territory within ten (10) days of the date the ordinance is adopted.
463	463	26 (d) This subsection applies only to a fire protection district
464	464	27 established after July 1, 1987. This subsection does not apply to an
465	465	28 annexation under subsection (g). If the fire protection district from
466	466	29 which a municipality annexes territory is indebted or has outstanding
467	467	30 unpaid bonds or other obligations at the time the annexation is
468	468	31 effective, the municipality is liable for and shall pay that indebtedness
469	469	32 in the same ratio as the assessed valuation of the property in the
470	470	33 annexed territory (that is part of the fire protection district) bears to the
471	471	34 assessed valuation of all property in the fire protection district, as
472	472	35 shown by the most recent assessment for taxation before the
473	473	36 annexation, unless the assessed property within the municipality is
474	474	37 already liable for the indebtedness. The annexing municipality shall
475	475	38 pay its indebtedness under this section to the board of fire trustees. If
476	476	39 the indebtedness consists of outstanding unpaid bonds or notes of the
477	477	40 fire protection district, the payments to the board of fire trustees shall
478	478	41 be made as the principal or interest on the bonds or notes becomes due.
479	479	42 (e) This subsection applies to an annexation initiated by property
480	480	2024 IN 1237—LS 6977/DI 87 12
481	481	1 owners under section 5.1 of this chapter in which all property owners
482	482	2 within the area to be annexed petition the municipality to be annexed.
483	483	3 Subject to subsection (c), and in the absence of an appeal under section
484	484	4 15.5 of this chapter, an annexation ordinance takes effect at least thirty
485	485	5 (30) days after its publication and upon the filing required by section
486	486	6 22(a) of this chapter.
487	487	7 (f) This subsection applies to an annexation initiated by a
488	488	8 property owner under section 5.3 of this chapter. Subject to
489	489	9 subsection (c), an annexation ordinance takes effect at least thirty
490	490	10 (30) days after the ordinance's publication and upon the filing
491	491	11 required by section 22(a) of this chapter.
492	492	12 (f) (g) Whenever a municipality annexes territory that lies within a
493	493	13 fire protection district that has a total net assessed value (as determined
494	494	14 by the county auditor) of more than one billion dollars
495	495	15 ($1,000,000,000) on the date the annexation ordinance is adopted:
496	496	16 (1) the annexed area shall remain a part of the fire protection
497	497	17 district after the annexation takes effect; and
498	498	18 (2) the fire protection district shall continue to provide fire
499	499	19 protection services to the annexed area.
500	500	20 The municipality shall not tax the annexed territory for fire protection
501	501	21 services. The annexing municipality shall establish a special fire fund
502	502	22 for all fire protection services that are provided by the municipality
503	503	23 within the area of the municipality that is not within the fire protection
504	504	24 district, and which shall not be assessed to the annexed special taxing
505	505	25 district. The annexed territory that lies within the fire protection district
506	506	26 shall continue to be part of the fire protection district special taxing
507	507	27 district.
508	508	28 SECTION 8. IC 36-4-3-7.2, AS ADDED BY P.L.23-2022,
509	509	29 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
510	510	30 JULY 1, 2024]: Sec. 7.2. (a) This section applies to an annexation that
511	511	31 satisfies all of the following:
512	512	32 (1) The annexation ordinance is adopted after December 31,
513	513	33 2020.
514	514	34 (2) The annexation is initiated by property owners under section
515	515	35 5.1 of this chapter in which all property owners within the
516	516	36 annexation territory petition the municipality to be annexed.
517	517	37 (3) All or part of the annexation territory is within a fire
518	518	38 protection district that was established after July 1, 1987.
519	519	39 (4) At least a majority of the members of the board of trustees of
520	520	40 the fire protection district adopt a resolution consenting to the
521	521	41 annexation.
522	522	42 (5) The portion of the annexation territory located within the fire
523	523	2024 IN 1237—LS 6977/DI 87 13
524	524	1 protection district constitutes less than three percent (3%) of the
525	525	2 total net assessed value (as determined by the county auditor) of
526	526	3 the fire protection district on the date the annexation ordinance is
527	527	4 adopted.
528	528	5 (b) Section 7(b) 7(c), and 7(d) 7(e) of this chapter apply to an
529	529	6 annexation under this section.
530	530	7 (c) Section 7(a), 7(c), 7(d), 7(e), 7(f), and 7(g) of this chapter do not
531	531	8 apply to an annexation under this section.
532	532	9 (d) After an annexation ordinance is adopted, the ordinance must be
533	533	10 published in the manner prescribed by IC 5-3-1. In the absence of an
534	534	11 appeal under section 15.5 of this chapter, the annexation ordinance
535	535	12 takes effect at least thirty (30) days after its publication and upon the
536	536	13 filing required by section 22(a) of this chapter.
537	537	14 SECTION 9. IC 36-4-3-8 IS AMENDED TO READ AS FOLLOWS
538	538	15 [EFFECTIVE JULY 1, 2024]: Sec. 8. (a) This section does not apply
539	539	16 to an ordinance adopted under section 5, or 5.1, or 5.3 of this chapter.
540	540	17 (b) An ordinance adopted under section 3 or 4 of this chapter must
541	541	18 include terms and conditions fairly calculated to make the annexation
542	542	19 equitable to the property owners and residents of the municipality and
543	543	20 the annexed territory. The terms and conditions may include:
544	544	21 (1) postponing the effective date of the annexation for not more
545	545	22 than three (3) years; and
546	546	23 (2) establishing equitable provisions for the future management
547	547	24 and improvement of the annexed territory and for the rendering of
548	548	25 needed services.
549	549	26 (c) This subsection applies to territory sought to be annexed that
550	550	27 meets all of the following requirements:
551	551	28 (1) The resident population density of the territory is at least three
552	552	29 (3) persons per acre.
553	553	30 (2) The territory is subdivided or is parceled through separate
554	554	31 ownerships into lots or parcels such that at least sixty percent
555	555	32 (60%) of the total number of lots and parcels are not more than
556	556	33 one (1) acre.
557	557	34 This subsection does not apply to an ordinance annexing territory
558	558	35 described in section 4(a)(2), 4(a)(3), 4(b), or 4(h) of this chapter. The
559	559	36 ordinance must include terms and conditions impounding in a special
560	560	37 fund all of the municipal property taxes imposed on the annexed
561	561	38 territory after the annexation takes effect that are not used to meet the
562	562	39 basic services described in section 13(d)(4) and 13(d)(5) of this chapter
563	563	40 for a period of at least three (3) years. The impounded property taxes
564	564	41 must be used to provide additional services that were not specified in
565	565	42 the plan of annexation. The impounded property taxes in the fund shall
566	566	2024 IN 1237—LS 6977/DI 87 14
567	567	1 be expended as set forth in this section, not later than five (5) years
568	568	2 after the annexation becomes effective.
569	569	3 SECTION 10. IC 36-4-3-9, AS AMENDED BY P.L.243-2013,
570	570	4 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
571	571	5 JULY 1, 2024]: Sec. 9. (a) A town must obtain the consent of both the
572	572	6 metropolitan development commission and the legislative body of a
573	573	7 county having a consolidated city before annexing territory within the
574	574	8 county where a consolidated city is located.
575	575	9 (b) A town may not annex within an area that extends one (1) mile
576	576	10 outside the corporate boundaries of a second or third class city. A town
577	577	11 may annex within the area that extends:
578	578	12 (1) more than one (1) mile; and
579	579	13 (2) not more than three (3) miles;
580	580	14 outside the corporate boundaries of a second or third class city, if the
581	581	15 annexation by the town does not include territory that extends more
582	582	16 than one (1) mile outside the corporate boundaries of the town.
583	583	17 (c) Subsection (b) does not apply to:
584	584	18 (1) a town that proposes to annex territory located in a different
585	585	19 county than the city; or
586	586	20 (2) an annexation by a town that is:
587	587	21 (A) an annexation under section 5, or 5.1, or 5.3 of this
588	588	22 chapter; or
589	589	23 (B) consented to by at least fifty-one percent (51%) of the
590	590	24 owners of land in the territory the town proposes to annex.
591	591	25 (d) In determining the total number of landowners of the annexed
592	592	26 territory and whether signers of a consent under subsection (c)(2)(B)
593	593	27 are landowners, the names appearing on the tax duplicate for that
594	594	28 territory constitute prima facie evidence of ownership. Only one (1)
595	595	29 person having an interest in each single property, as evidenced by the
596	596	30 tax duplicate, is considered a landowner for purposes of this section.
597	597	31 (e) Each municipality that is known as an included town under
598	598	32 IC 36-3-1-7 is also considered a town for purposes of this section.
599	599	33 SECTION 11. IC 36-4-3-11, AS AMENDED BY P.L.206-2016,
600	600	34 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
601	601	35 JULY 1, 2024]: Sec. 11. (a) This subsection applies only to an
602	602	36 annexation for which an annexation ordinance was adopted before July
603	603	37 1, 2015. Except as provided in section 5.1(i) of this chapter and
604	604	38 subsections (e) and (f), whenever territory is annexed by a municipality
605	605	39 under this chapter, the annexation may be appealed by filing with the
606	606	40 circuit or superior court of a county in which the annexed territory is
607	607	41 located a written remonstrance signed by:
608	608	42 (1) at least sixty-five percent (65%) of the owners of land in the
609	609	2024 IN 1237—LS 6977/DI 87 15
610	610	1 annexed territory; or
611	611	2 (2) the owners of more than seventy-five percent (75%) in
612	612	3 assessed valuation of the land in the annexed territory.
613	613	4 The remonstrance must be filed within ninety (90) days after the
614	614	5 publication of the annexation ordinance under section 7 of this chapter,
615	615	6 must be accompanied by a copy of that ordinance, and must state the
616	616	7 reason why the annexation should not take place.
617	617	8 (b) This subsection applies only to an annexation for which an
618	618	9 annexation ordinance was adopted before July 1, 2015. On receipt of
619	619	10 the remonstrance, the court shall determine whether the remonstrance
620	620	11 has the necessary signatures. In determining the total number of
621	621	12 landowners of the annexed territory and whether signers of the
622	622	13 remonstrance are landowners, the names appearing on the tax duplicate
623	623	14 for that territory constitute prima facie evidence of ownership. Only
624	624	15 one (1) person having an interest in each single property, as evidenced
625	625	16 by the tax duplicate, is considered a landowner for purposes of this
626	626	17 section.
627	627	18 (c) This subsection applies only to an annexation for which an
628	628	19 annexation ordinance was adopted before July 1, 2015. If the court
629	629	20 determines that the remonstrance is sufficient, the court shall fix a time,
630	630	21 within sixty (60) days after the court's determination, for a hearing on
631	631	22 the remonstrance. Notice of the proceedings, in the form of a summons,
632	632	23 shall be served on the annexing municipality. The municipality is the
633	633	24 defendant in the cause and shall appear and answer.
634	634	25 (d) This subsection applies only to an annexation for which an
635	635	26 annexation ordinance was adopted after June 30, 2015. If the
636	636	27 requirements of section 11.3(c) or (after December 31, 2016) section
637	637	28 11.4 of this chapter are met, the annexation may be appealed by filing
638	638	29 with the circuit or superior court of a county in which the annexed
639	639	30 territory is located:
640	640	31 (1) the signed remonstrances filed with the county auditor;
641	641	32 (2) the county auditor's certification under section 11.2(i) of this
642	642	33 chapter;
643	643	34 (3) the annexation ordinance; and
644	644	35 (4) a statement of the reason why the annexation should not take
645	645	36 place.
646	646	37 The remonstrance must be filed with the court not later than fifteen
647	647	38 (15) business days after the date the county auditor files the certificate
648	648	39 with the legislative body under section 11.2(i) of this chapter. After a
649	649	40 remonstrance petition is filed with the court, any person who signed a
650	650	41 remonstrance may file with the court a verified, written revocation of
651	651	42 the person's opposition to the annexation.
652	652	2024 IN 1237—LS 6977/DI 87 16
653	653	1 (e) If an annexation is initiated by property owners under section 5.1
654	654	2 or 5.3 of this chapter and all property owners within the area to be
655	655	3 annexed petition the municipality to be annexed, a remonstrance to the
656	656	4 annexation may not be filed under this section.
657	657	5 (f) This subsection applies only to an annexation for which an
658	658	6 annexation ordinance is adopted before July 1, 2015. This subsection
659	659	7 applies if:
660	660	8 (1) the territory to be annexed consists of not more than one
661	661	9 hundred (100) parcels; and
662	662	10 (2) eighty percent (80%) of the boundary of the territory proposed
663	663	11 to be annexed is contiguous to the municipality.
664	664	12 An annexation may be appealed by filing with the circuit or superior
665	665	13 court of a county in which the annexed territory is located a written
666	666	14 remonstrance signed by at least seventy-five percent (75%) of the
667	667	15 owners of land in the annexed territory as determined under subsection
668	668	16 (b).
669	669	2024 IN 1237—LS 6977/DI 87