Indiana 2024 Regular Session

Indiana Senate Bill SB0156 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	~~SB0156.1~~
2		-	~~January 19, 2024~~
	1	+
	2	+	Introduced Version
3	3		SENATE BILL No. 156
4	4		_____
5		-	DIGEST OF ~~SB 156 (Updated January 18, 2024 12:09 pm - DI 140)~~
	5	+	DIGEST OF INTRODUCED BILL
6	6		Citations Affected: IC 36-5.
7	7		Synopsis: Dissolution or name change of town. Establishes the
8	8		following procedure for dissolving a town or changing the name of a
9	9		town: (1) Requires at least 5% of the registered voters of the town to
10	10		file a petition for town dissolution or name change with the county
11	11		auditor. (2) Requires the county commissioners to hold a hearing on a
12	12		petition. (3) Requires approval of a public question by the town's voters
13	13		by an affirmative vote of at least 2/3 of the voters voting on the public
14	14		question. Provides, in the case of a town dissolution, for disposition of
15	15		funds, property, and records of a dissolved town. Repeals statutes
16	16		relating to: (1) town dissolutions; and (2) changing the name of a town.
17	17		Effective: July 1, 2024.
18	18		Buck
19	19		January 8, 2024, read first time and referred to Committee on Local Government.
20		-	January 18, 2024, reported favorably — Do Pass.
21		-	SB 156—LS 6584/DI 87 January 19, 2024
	20	+	2024 IN 156—LS 6584/DI 87 Introduced
22	21		Second Regular Session of the 123rd General Assembly (2024)
23	22		PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
24	23		Constitution) is being amended, the text of the existing provision will appear in this style type,
25	24		additions will appear in this style type, and deletions will appear in this style type.
26	25		Additions: Whenever a new statutory provision is being enacted (or a new constitutional
27	26		provision adopted), the text of the new provision will appear in this style type. Also, the
28	27		word NEW will appear in that style type in the introductory clause of each SECTION that adds
29	28		a new provision to the Indiana Code or the Indiana Constitution.
30	29		Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
31	30		between statutes enacted by the 2023 Regular Session of the General Assembly.
32	31		SENATE BILL No. 156
33	32		A BILL FOR AN ACT to amend the Indiana Code concerning local
34	33		government.
35	34		Be it enacted by the General Assembly of the State of Indiana:
36	35		1 SECTION 1. IC 36-5-1-11.5 IS AMENDED TO READ AS
37	36		2 FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 11.5. A locality that:
38	37		3 (1) has elected town officers and has governed itself as a town for
39	38		4 at least ten (10) years preceding September 1, 1988; or
40	39		5 (2) has been incorporated under this chapter after August 31,
41	40		6 1988;
42	41		7 is a town for all purposes unless the town has been dissolved under this
43	42		8 chapter or (before its amendment in 2024), IC 36-5-1.1 (before its
44	43		9 repeal), or IC 36-5-1.3.
45	44		10 SECTION 2. IC 36-5-1-12 IS REPEALED [EFFECTIVE JULY 1,
46	45		11 2024]. Sec. 12. (a) Proceedings to dissolve a town may be instituted
47	46		12 under either this section or IC 36-5-1.1.
48	47		13 (b) A proceeding under this section may be instituted to either
49	48		14 dissolve the town or change its name. The proceeding is instituted by
50	49		15 filing a petition with the town clerk. The petition must be signed by at
51	50		16 least the number of the voters of the town required to place a candidate
52	51		17 on the ballot under IC 3-8-6-3, must be verified by at least one (1) of
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54	53		1 the petitioners, and must include the reasons for the dissolution or
55	54		2 change of name.
56	55		3 SECTION 3. IC 36-5-1-13 IS REPEALED [EFFECTIVE JULY 1,
57	56		4 2024]. Sec. 13. A petition filed under section 12 of this chapter must
58	57		5 be accompanied by a bond for costs and expenses, payable to and
59	58		6 approved by the town legislative body. The petitioners shall pay all
60	59		7 costs and expenses incurred under this chapter, including the expenses
61	60		8 of an election, if their petition is not successful.
62	61		9 SECTION 4. IC 36-5-1-14 IS REPEALED [EFFECTIVE JULY 1,
63	62		10 2024]. Sec. 14. When a petition is filed under section 12 of this
64	63		11 chapter, the town clerk shall give notice of the filing and of the day of
65	64		12 a hearing on the petition, in the manner prescribed by IC 5-3-1.
66	65		13 SECTION 5. IC 36-5-1-15 IS REPEALED [EFFECTIVE JULY 1,
67	66		14 2024]. Sec. 15. (a) On the date named in the notice given under section
68	67		15 14 of this chapter, the town legislative body shall hear and consider:
69	68		16 (1) the petition; and
70	69		17 (2) all statements presented in favor of or in opposition to
71	70		18 granting the petition.
72	71		19 The legislative body shall then decide whether there is sufficient cause
73	72		20 to submit the question of dissolving the town or changing its name to
74	73		21 the voters of the town.
75	74		22 (b) A petitioner who wants to withdraw the petitioner's name from
76	75		23 the petition must do so before the legislative body makes its decision.
77	76		24 The legislative body may not count names withdrawn from the petition
78	77		25 as part of the total required by section 12 of this chapter.
79	78		26 SECTION 6. IC 36-5-1-16 IS REPEALED [EFFECTIVE JULY 1,
80	79		27 2024]. Sec. 16. If the town legislative body decides to submit the
81	80		28 question of dissolving the town or changing its name to the voters of
82	81		29 the town, it shall certify the question to the county election board. The
83	82		30 election board shall fix the date of an election for that purpose. The
84	83		31 town clerk shall give notice of the election in the manner prescribed by
85	84		32 IC 5-3-1.
86	85		33 SECTION 7. IC 36-5-1-17 IS REPEALED [EFFECTIVE JULY 1,
87	86		34 2024]. Sec. 17. (a) An election under section 16 of this chapter shall be
88	87		35 held in the town. The voters shall, by ballot, vote on the question
89	88		36 submitted to them. The question shall be placed on the ballot in the
90	89		37 form prescribed by IC 3-10-9-4 and must state "Shall the town of
91	90		38 ___________________ dissolve?" or "Shall the town of
92	91		39 _________________ change its name to ______________________?".
93	92		40 (b) Within four (4) days after the canvass of the vote by the county
94	93		41 election board, the town clerk shall prepare and attest a statement of all
95	94		42 the votes cast at the election, to be signed by the members of the county
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97	96		1 election board and filed with:
98	97		2 (1) the clerk of the county in which the greatest percentage of the
99	98		3 population of the town is located; and
100	99		4 (2) the office of the secretary of state.
101	100		5 SECTION 8. IC 36-5-1-18 IS REPEALED [EFFECTIVE JULY 1,
102	101		6 2024]. Sec. 18. (a) If at least two-thirds (2/3) of the votes cast in an
103	102		7 election under section 16 of this chapter are affirmative, the dissolution
104	103		8 or change of name takes effect in the manner prescribed by this section.
105	104		9 (b) A change of name takes effect thirty (30) days after the filing of
106	105		10 the statement required by section 17 of this chapter.
107	106		11 (c) A dissolution takes effect six (6) months after the filing of the
108	107		12 statement required by section 17 of this chapter. The property owned
109	108		13 by the town after payment of debts and liabilities shall be disposed of
110	109		14 in the manner chosen by a majority of the voters of the town at a
111	110		15 special election for that purpose. Dissolution of a town does not affect
112	111		16 the validity of a contract to which the town is a party.
113	112		17 SECTION 9. IC 36-5-1-19 IS REPEALED [EFFECTIVE JULY 1,
114	113		18 2024]. Sec. 19. (a) A person aggrieved by a decision made by the town
115	114		19 legislative body under section 15 of this chapter or by the result of an
116	115		20 election under section 16 of this chapter may, within thirty (30) days,
117	116		21 appeal that decision or result to the circuit court for the county in which
118	117		22 the town is located. The appeal is instituted by giving written notice to
119	118		23 the town legislative body and filing with the town clerk a bond in the
120	119		24 sum of five hundred dollars ($500), with surety approved by the
121	120		25 legislative body. The bond must provide that the appeal will be duly
122	121		26 prosecuted and that the appellants will pay all costs if the appeal is
123	122		27 decided against them.
124	123		28 (b) When an appeal is instituted, the town clerk shall file with the
125	124		29 clerk of the circuit court a transcript of all proceedings in the case,
126	125		30 together with all papers filed in the case. The town legislative body
127	126		31 may not take further action in the case until the appeal is heard and
128	127		32 determined.
129	128		33 (c) An appeal under this section shall be heard by the circuit court
130	129		34 without a jury. Change of venue from the judge may be granted, but
131	130		35 change of venue from the county may not be granted.
132	131		36 SECTION 10. IC 36-5-1-20 IS REPEALED [EFFECTIVE JULY 1,
133	132		37 2024]. Sec. 20. (a) This section does not apply to a town described by
134	133		38 IC 36-5-1-11.5.
135	134		39 (b) A town subject to this chapter may be dissolved if the county
136	135		40 election board of the county in which the greatest percentage of
137	136		41 population of the town is located conducts a public hearing and finds
138	137		42 that the town has not elected town officers or had a functioning town
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140	139		1 government during the preceding ten (10) years.
141	140		2 (c) The county election board shall certify the board's findings to the
142	141		3 county executive, who may adopt an ordinance or (in a county subject
143	142		4 to IC 36-2-3.5) issue an order to dissolve the town.
144	143		5 SECTION 11. IC 36-5-1.1 IS REPEALED [EFFECTIVE JULY 1,
145	144		6 2024]. (Dissolution of Small Towns).
146	145		7 SECTION 12. IC 36-5-1.2 IS REPEALED [EFFECTIVE JULY 1,
147	146		8 2024]. (Change of Name of a Small Town).
148	147		9 SECTION 13. IC 36-5-1.3 IS ADDED TO THE INDIANA CODE
149	148		10 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
150	149		11 JULY 1, 2024]:
151	150		12 Chapter 1.3. Dissolution of Towns
152	151		13 Sec. 1. This chapter applies to the dissolution of a town.
153	152		14 Sec. 2. For purposes of this chapter, "county auditor" refers to
154	153		15 the county auditor of the county that contains the largest
155	154		16 percentage of the population of the town, unless otherwise
156	155		17 provided in this chapter.
157	156		18 Sec. 3. For purposes of this chapter, "county commissioners"
158	157		19 refers to the following, unless otherwise provided in this chapter:
159	158		20 (1) In a county having a consolidated city, the board of
160	159		21 commissioners of the county as provided in IC 36-3-1-5(b).
161	160		22 (2) In a county other than a county having a consolidated city,
162	161		23 the county executive of the county that contains the largest
163	162		24 percentage of the population of the town.
164	163		25 Sec. 4. (a) A proceeding to dissolve a town is instituted by filing
165	164		26 a petition with the county auditor.
166	165		27 (b) A petition under this section must satisfy all of the following:
167	166		28 (1) The petition must be signed by at least five percent (5%)
168	167		29 of the town's registered voters.
169	168		30 (2) The petition must be verified by at least one (1) of the
170	169		31 petitioners.
171	170		32 (3) The petition must include the reasons for the dissolution of
172	171		33 the town.
173	172		34 (c) A petitioner who wants to withdraw the petitioner's name
174	173		35 from the petition must do so before the hearing held under section
175	174		36 6 of this chapter.
176	175		37 Sec. 5. (a) If a petition is filed under section 4 of this chapter, the
177	176		38 county auditor shall give notice of the filing and of the date of a
178	177		39 hearing on the petition in the manner prescribed by IC 5-3-1.
179	178		40 (b) The hearing required by section 6 of this chapter must be
180	179		41 held at least sixty (60) days and not more than ninety (90) days
181	180		42 after the date of the filing of the petition.
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183	182		1 Sec. 6. (a) On the date stated in the notice given under section 5
184	183		2 of this chapter, the county commissioners shall:
185	184		3 (1) allow the town residents to submit testimony regarding the
186	185		4 dissolution of the town; and
187	186		5 (2) hear and consider:
188	187		6 (A) the petition; and
189	188		7 (B) all statements presented in favor of or in opposition to
190	189		8 the dissolution of the town.
191	190		9 (b) At the conclusion of the hearing held under this section, the
192	191		10 county commissioners shall adopt a resolution approving or
193	192		11 disapproving the dissolution of the town. If the county
194	193		12 commissioners:
195	194		13 (1) disapprove the town's dissolution, the proceedings to
196	195		14 dissolve the town are terminated; or
197	196		15 (2) approve the town's dissolution, the county commissioners
198	197		16 shall determine at which election a public question shall be
199	198		17 placed on the ballot under section 7 of this chapter.
200	199		18 Sec. 7. The county commissioners may determine that the public
201	200		19 question is placed on the ballot at any of the following elections:
202	201		20 (1) The next primary election that is held in the precincts in
203	202		21 the town, if that primary election is more than ninety (90)
204	203		22 days and less than one hundred eighty (180) days from the
205	204		23 date of the hearing.
206	205		24 (2) The next general election that is held in the precincts in the
207	206		25 town, if that general election is more than ninety (90) days
208	207		26 and less than one hundred eighty (180) days from the date of
209	208		27 the hearing.
210	209		28 (3) A special election held at a date determined by the county
211	210		29 commissioners. However, a special election may not be held
212	211		30 for a public question under this subdivision if the public
213	212		31 question may be placed on the ballot under subdivision (1) or
214	213		32 (2).
215	214		33 Sec. 8. The county commissioners shall certify the public
216	215		34 question to the county election board of each county in which
217	216		35 precincts of the town are located. The county election boards shall
218	217		36 give notice of the election in the manner prescribed by IC 5-3-1.
219	218		37 Sec. 9. (a) A public question shall be placed on the ballot in the
220	219		38 precincts of the town at the election as determined under section 7
221	220		39 of this chapter.
222	221		40 (b) The public question shall be placed on the ballot in the form
223	222		41 prescribed by IC 3-10-9-4 and must state the following:
224	223		42 "Shall the town of _______________ be dissolved?".
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226	225		1 (c) The county election boards shall tabulate, canvass, and
227	226		2 report the results of the public question as provided under IC 3-12.
228	227		3 (d) The county election boards shall report the results of the
229	228		4 vote on the public question to each of the following:
230	229		5 (1) The town clerk.
231	230		6 (2) The circuit court clerk of each county in which the town is
232	231		7 located.
233	232		8 (3) The county executive of each county in which the town is
234	233		9 located.
235	234		10 (4) The county auditor of each county in which the town is
236	235		11 located.
237	236		12 (5) The department of local government finance.
238	237		13 (6) The department of state revenue.
239	238		14 (7) The state board of accounts.
240	239		15 (8) The office of the secretary of state.
241	240		16 (9) The office of census data established by IC 2-5-1.1-12.2.
242	241		17 (10) The election division.
243	242		18 Sec. 10. If at least two-thirds (2/3) of the votes cast on the public
244	243		19 question under this chapter are in favor of dissolving the town, the
245	244		20 dissolution of the town takes effect six (6) months after the date of
246	245		21 the report of the results of the vote on the public question under
247	246		22 section 9(d) of this chapter.
248	247		23 Sec. 11. (a) The county must pay the cost of the notice by the
249	248		24 county auditor under section 5 of this chapter and any expenses
250	249		25 incurred in conducting the hearing under section 6 of this chapter.
251	250		26 (b) If a public question is placed on the ballot, the county must
252	251		27 also pay the costs of the election relating to the public question.
253	252		28 Sec. 12. If an attempt to dissolve a town is unsuccessful, further
254	253		29 attempts to dissolve the town may not be made for three (3) years
255	254		30 after the date of:
256	255		31 (1) the county commissioner's resolution disapproving the
257	256		32 dissolution under section 6 of this chapter; or
258	257		33 (2) the report of the results of the vote on the public question
259	258		34 under section 9(d) of this chapter in which voters did not
260	259		35 approve the dissolution of the town.
261	260		36 Sec. 13. (a) This section applies if a town is dissolved as provided
262	261		37 in this chapter.
263	262		38 (b) The property owned by a dissolved town after payment of
264	263		39 debts and liabilities shall be disposed of by the county executive of
265	264		40 the county in which the property is located.
266	265		41 (c) Any money remaining after payment of a dissolved town's
267	266		42 debts and liabilities shall be deposited in the general fund of each
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269	268		1 county in which the dissolved town was located, in proportion to
270	269		2 the assessed value of the dissolved town in each county.
271	270		3 (d) Beginning with the date of the town's dissolution, the
272	271		4 following apply:
273	272		5 (1) Any town ordinance relating to the dissolved town's
274	273		6 budget, tax rates, and tax levies for the calendar year is void.
275	274		7 (2) A budget, tax rate, and tax levy may not be certified for
276	275		8 the dissolved town.
277	276		9 (3) Any distribution of funds due to the dissolved town from
278	277		10 the state shall be paid to the county. The county shall deposit
279	278		11 any payments made by the state under this subdivision in the
280	279		12 county's general fund.
281	280		13 (e) Dissolution of a town does not affect the validity of a contract
282	281		14 to which the town is a party.
283	282		15 (f) After dissolution, the books and records of a dissolved town
284	283		16 become the property of the county executive of the county in which
285	284		17 the greatest assessed value of the dissolved town is located.
286	285		18 (g) If a dissolved town was located in more than one (1) county,
287	286		19 the county executives may enter into appropriate agreements
288	287		20 concerning the disposition of the property of the dissolved town,
289	288		21 access to the dissolved town records, and other matters considered
290	289		22 relevant by the county executives of the respective counties.
291	290		23 SECTION 14. IC 36-5-1.4 IS ADDED TO THE INDIANA CODE
292	291		24 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
293	292		25 JULY 1, 2024]:
294	293		26 Chapter 1.4. Town Name Change
295	294		27 Sec. 1. This chapter applies to a change of the name of a town.
296	295		28 Sec. 2. For purposes of this chapter, "county auditor" refers to
297	296		29 the county auditor of the county that contains the largest
298	297		30 percentage of the population of the town, unless otherwise
299	298		31 provided in this chapter.
300	299		32 Sec. 3. For purposes of this chapter, "county commissioners"
301	300		33 refers to the following, unless otherwise provided in this chapter:
302	301		34 (1) In a county having a consolidated city, the board of
303	302		35 commissioners of the county as provided in IC 36-3-1-5(b).
304	303		36 (2) In a county other than a county having a consolidated city,
305	304		37 the county executive of the county that contains the largest
306	305		38 percentage of the population of the town.
307	306		39 Sec. 4. (a) A proceeding to change the name of a town is
308	307		40 instituted by filing a petition with the county auditor.
309	308		41 (b) A petition under this section must satisfy all of the following:
310	309		42 (1) The petition must be signed by at least five percent (5%)
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312	311		1 of the town's registered voters.
313	312		2 (2) The petition must be verified by at least one (1) of the
314	313		3 petitioners.
315	314		4 (3) The petition must include the reasons for the change of the
316	315		5 name of the town.
317	316		6 (c) A petitioner who wants to withdraw the petitioner's name
318	317		7 from the petition must do so before the hearing held under section
319	318		8 6 of this chapter.
320	319		9 Sec. 5. (a) If a petition is filed under section 4 of this chapter, the
321	320		10 county auditor shall give notice of the filing and of the date of a
322	321		11 hearing on the petition in the manner prescribed by IC 5-3-1.
323	322		12 (b) The hearing required by section 6 of this chapter must be
324	323		13 held at least sixty (60) days and not more than ninety (90) days
325	324		14 after the date of the filing of the petition.
326	325		15 Sec. 6. (a) On the date stated in the notice given under section 5
327	326		16 of this chapter, the county commissioners shall:
328	327		17 (1) allow the town residents to submit testimony regarding
329	328		18 changing the name of the town; and
330	329		19 (2) hear and consider:
331	330		20 (A) the petition; and
332	331		21 (B) all statements presented in favor of or in opposition to
333	332		22 changing the name of the town.
334	333		23 (b) At the conclusion of the hearing held under this section, the
335	334		24 county commissioners shall adopt a resolution approving or
336	335		25 disapproving changing the name of the town. If the county
337	336		26 commissioners:
338	337		27 (1) disapprove the town's change of name, the proceedings to
339	338		28 change the name of the town are terminated; or
340	339		29 (2) approve the town's change of name, the county
341	340		30 commissioners shall determine at which election a public
342	341		31 question shall be placed on the ballot under section 7 of this
343	342		32 chapter.
344	343		33 Sec. 7. The county commissioners may determine that the public
345	344		34 question is placed on the ballot at any of the following elections:
346	345		35 (1) The next primary election that is held in the precincts in
347	346		36 the town, if that primary election is more than ninety (90)
348	347		37 days and less than one hundred eighty (180) days from the
349	348		38 date of the hearing.
350	349		39 (2) The next general election that is held in the precincts in the
351	350		40 town, if that general election is more than ninety (90) days
352	351		41 and less than one hundred eighty (180) days from the date of
353	352		42 the hearing.
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355	354		1 (3) A special election held at a date determined by the county
356	355		2 commissioners. However, a special election may not be held
357	356		3 for a public question under this subdivision if the public
358	357		4 question may be placed on the ballot under subdivision (1) or
359	358		5 (2).
360	359		6 Sec. 8. The county commissioners shall certify the public
361	360		7 question to the county election board of each county in which
362	361		8 precincts of the town are located. The county election boards shall
363	362		9 give notice of the election in the manner prescribed by IC 5-3-1.
364	363		10 Sec. 9. (a) A public question shall be placed on the ballot in the
365	364		11 precincts of the town at the election as determined under section 7
366	365		12 of this chapter.
367	366		13 (b) The public question shall be placed on the ballot in the form
368	367		14 prescribed by IC 3-10-9-4 and must state the following:
369	368		15 "Shall the town of _______________ change its name to
370	369		16 _______________?".
371	370		17 (c) The county election boards shall tabulate, canvass, and
372	371		18 report the results of the public question as provided under IC 3-12.
373	372		19 (d) The county election boards shall report the results of the
374	373		20 vote on the public question to each of the following:
375	374		21 (1) The town clerk.
376	375		22 (2) The circuit court clerk of each county in which the town is
377	376		23 located.
378	377		24 (3) The county executive of each county in which the town is
379	378		25 located.
380	379		26 (4) The county auditor of each county in which the town is
381	380		27 located.
382	381		28 (5) The department of local government finance.
383	382		29 (6) The department of state revenue.
384	383		30 (7) The state board of accounts.
385	384		31 (8) The office of the secretary of state.
386	385		32 (9) The office of census data established by IC 2-5-1.1-12.2.
387	386		33 (10) The election division.
388	387		34 Sec. 10. If at least two-thirds (2/3) of the votes cast on the public
389	388		35 question under this chapter are in favor of the change of the name
390	389		36 of the town, the change of name takes effect thirty (30) days after
391	390		37 the date of the report of the results of the vote on the public
392	391		38 question under section 9(d) of this chapter.
393	392		39 Sec. 11. (a) The county must pay the cost of the notice by the
394	393		40 county auditor under section 5 of this chapter and any expenses
395	394		41 incurred in conducting the hearing under section 6 of this chapter.
396	395		42 (b) If a public question is placed on the ballot, the county must
397		-	SB 156—LS 6584/DI 87 10
	396	+	2024 IN 156—LS 6584/DI 87 10
398	397		1 also pay the costs of the election relating to the public question.
399	398		2 Sec. 12. If an attempt to change the name of a town is
400	399		3 unsuccessful, further attempts to change the name of the town may
401	400		4 not be made for three (3) years after the date of:
402	401		5 (1) the county commissioner's resolution disapproving the
403	402		6 change of the name of the town under section 6 of this
404	403		7 chapter; or
405	404		8 (2) the report of the results of the vote on the public question
406	405		9 under section 9(d) of this chapter in which voters did not
407	406		10 approve the change of the name of the town.
408		-	SB 156—LS 6584/DI 87 11
409		-	COMMITTEE REPORT
410		-	Madam President: The Senate Committee on Local Government, to
411		-	which was referred Senate Bill No. 156, has had the same under
412		-	consideration and begs leave to report the same back to the Senate with
413		-	the recommendation that said bill DO PASS.
414		-	(Reference is to SB 156 as introduced.)
415		-
416		-	BUCK, Chairperson
417		-	Committee Vote: Yeas 9, Nays 0
418		-	SB 156—LS 6584/DI 87
	407	+	2024 IN 156—LS 6584/DI 87