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 6584 NOTE PREPARED: Jan 23, 2024
BILL NUMBER: SB 156 BILL AMENDED:
SUBJECT: Dissolution or Name Change of Town.
FIRST AUTHOR: Sen. Buck BILL STATUS: 2
nd
Reading - 1
st
House
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
DEDICATED
FEDERAL
Summary of Legislation: This bill establishes the following procedure for dissolving a town or changing
the name of a town:
(1) Requires at least 5% of the registered voters of the town to file a petition for town dissolution or name
change with the county auditor.
(2) Requires the county commissioners to hold a hearing on a petition.
(3) Requires approval of a public question by the town's voters by an affirmative vote of at least 2/3 of the
voters voting on the public question.
The bill provides, in the case of a town dissolution, for disposition of funds, property, and records of a
dissolved town.
This bill also repeals statutes relating to: (1) town dissolutions; and (2) changing the name of a town.
Effective Date: July 1, 2024.
Explanation of State Expenditures: Department of State Revenue; Secretary of State (Election Division),
State Board of Accounts, Department of Local Government Finance: The bill’s requirements of the county
election board filing results of the public question pertaining to the town dissolution or name change with
the aforementioned agencies are within the agencies’ routine administrative functions and should be able to
be implemented with no additional appropriations, assuming near customary agency staffing and resource
levels.
SB 156 1 Explanation of State Revenues:
Explanation of Local Expenditures: Dissolution or Name Change of a Town – The bill repeals the process
to file a petition of dissolution or name change of a small town under IC 36-5-1.1 or 1.2. Under the bill,
public questions would occur in either a primary or general election, if the primary or general election takes
place more than 90 and less than 180 days from the hearing date. Otherwise, the public question could
potentially be set in a separate special election. As a result, there could be potential additional expenditures
to the county for a special election for a referendum to dissolve or change the name of a town, if the county
commissioners approve the petition to place the question on the ballot.
This bill’s requirements will also result in an increase of the administrative workload for both the county
executive and county auditor of the impacted county - assuming that the public question to dissolve a town
is approved - due to the following:
County executives will be required to dispose of property owned by the dissolved town after payment of
debts and liabilities are made, and take ownership of the books and records of the dissolved town.
County auditors will be required to handle the transfer of any remaining fund balance from the dissolved
town’s accounts to the county’s general fund - after payment of debt and liabilities.
Additionally, the county will have to assume oversight responsibility of current contracts that the dissolved
town may have been partied to prior to the dissolution.
Explanation of Local Revenues: Dissolution of a Town– Towns that are dissolved under this bill would no
longer receive a property tax levy beginning with the date of the town's dissolution. Additionally, any
distribution of funds due to the dissolved town from the state shall be paid to the county and deposited into
the county’s general fund.
State Agencies Affected: Department of State Revenue; Department of Local Government Finance.
Secretary of State (Election Division), and State Board of Accounts.
Local Agencies Affected: Circuit court clerks; town clerk-treasurers; county election boards; county
commissioners; county auditors.
Information Sources:
Fiscal Analyst: James Johnson, 317-232-9869.
SB 156 2