*HB1131.2*
February 6, 2025
HOUSE BILL No. 1131
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DIGEST OF HB 1131 (Updated February 4, 2025 5:24 pm - DI 140)
Citations Affected: IC 36-3.
Synopsis: Town of Cumberland. Provides that on January 1, 2027, the
town of Cumberland is an excluded city and no longer part of the
consolidated city. Requires the town legislative body and the legislative
body of the consolidated city and county to take any steps necessary to
transition the town to an excluded city. Requires the department of
local government finance to adjust property tax levies, rates, budgets,
and distributive shares of local units of local government as necessary
to account for the town becoming an excluded city. Provides that, after
December 31, 2026, any part of the town that is included in a fire
protection district on December 31, 2026, that is located in the county
containing the consolidated city, shall continue to be included in the
fire protection district. Provides that, after December 31, 2026, the
town is liable for debt service owed by the consolidated city on
December 31, 2026, in the same ratio as the assessed valuation of the
property in the town bears to the assessed valuation of all property
included in the consolidated city until the particular debt service is
satisfied.
Effective: July 1, 2025; January 1, 2027.
Miller D, Pressel, Heine, Gore
January 8, 2025, read first time and referred to Committee on Local Government.
January 28, 2025, amended, reported — Do Pass. Referred to Committee on Ways and
Means pursuant to Rule 126.3.
February 6, 2025, reported — Do Pass.
HB 1131—LS 6346/DI 87 February 6, 2025
First Regular Session of the 124th General Assembly (2025)
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 2024 Regular Session of the General Assembly.
HOUSE BILL No. 1131
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 36-3-1-7 IS AMENDED TO READ AS FOLLOWS
2 [EFFECTIVE JANUARY 1, 2027]: Sec. 7. (a) A municipality, other
3 than a first class city, having a population of more than five thousand
4 (5,000) in the county is known as an excluded city and does not
5 become part of the consolidated city under this chapter. In addition, a
6 municipality that had qualified as an excluded city before January 1,
7 1973, under IC 18-4-1-2(d) (repealed September 1, 1981), is
8 considered an excluded city. The following municipalities are
9 excluded cities and are not part of the consolidated city under this
10 chapter:
11 (1) The city of Lawrence.
12 (2) The city of Beech Grove.
13 (3) The city of Southport.
14 (4) The town of Speedway.
15 (5) The town of Cumberland.
16 Any other municipality is known as an included town and does become
17 is a part of the consolidated city under this chapter.
HB 1131—LS 6346/DI 87 2
1 (b) This article applies to any part of an included town the town of
2 Cumberland that is inside the county boundaries of Marion County,
3 even though part of it the town is outside those the boundaries of
4 Marion County.
5 SECTION 2. IC 36-3-8 IS ADDED TO THE INDIANA CODE AS
6 A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY
7 1, 2025]:
8 Chapter 8. Town of Cumberland
9 Sec. 1. This chapter applies only to the part of the town of
10 Cumberland located within Marion County.
11 Sec. 2. After December 31, 2026:
12 (1) the town remains a town government;
13 (2) the town's boundaries and name remain the same;
14 (3) the term of any elected or appointed officer of the town is
15 not affected;
16 (4) the town ceases to be:
17 (A) an included town under IC 36-3-1-7; and
18 (B) a part of the consolidated city;
19 (5) the town is an excluded city as provided in IC 36-3-1-7 and
20 IC 36-3-2-4 and has all of the rights, powers, duties, and
21 responsibilities of an excluded city;
22 (6) the town continues to fulfill the duties that were imposed
23 by law upon the consolidated city before January 1, 2027,
24 within the town boundaries;
25 (7) the resolutions, fees, schedules, or other actions adopted or
26 taken by the town legislative body or town clerk-treasurer
27 before January 1, 2027, remain valid;
28 (8) any appointments made by the town legislative body
29 before January 1, 2027, remain valid;
30 (9) the town retains its assets, debts, property rights,
31 equipment, records, personnel, and contracts; and
32 (10) any part of the town that is included in a fire protection
33 district established under IC 36-8-11 on December 31, 2026,
34 that is located in the county containing the consolidated city,
35 shall continue to be included in the fire protection district.
36 Sec. 3. After December 31, 2026, any reference in:
37 (1) the Indiana Code;
38 (2) the Indiana Administrative Code; or
39 (3) any resolution;
40 to an excluded city, unless expressly provided otherwise, is
41 considered a reference to the town.
42 Sec. 4. The town legislative body and the legislative body of the
HB 1131—LS 6346/DI 87 3
1 consolidated city and county shall take any steps necessary to
2 implement this chapter, including adopting ordinances, resolutions,
3 and entering into interlocal agreements.
4 Sec. 5. (a) The department of local government finance shall
5 adjust maximum permissible property tax levies, rates, and
6 budgets of units of local government as necessary to account for
7 the town becoming an excluded city.
8 (b) After December 31, 2026, the town is liable for debt service
9 owed by the consolidated city on December 31, 2026, in the same
10 ratio as the assessed valuation of the property in the town bears to
11 the assessed valuation of all property included in the consolidated
12 city until the particular debt service is satisfied. The town is not
13 liable for debt service issued by the consolidated city after
14 December 31, 2026.
15 Sec. 6. Notwithstanding IC 6-3.6-11-5, the department of local
16 government finance shall adjust the distributive shares of the
17 consolidated city and county and the town under IC 6-3.6-11-5 as
18 necessary to account for the town becoming an excluded city.
HB 1131—LS 6346/DI 87 4
COMMITTEE REPORT
Mr. Speaker: Your Committee on Local Government, to which was
referred House Bill 1131, has had the same under consideration and
begs leave to report the same back to the House with the
recommendation that said bill be amended as follows:
Page 2, line 29, delete "and".
Page 2, line 31, delete "contracts." and insert "contracts; and".
Page 2, between lines 31 and 32, begin a new line block indented
and insert:
"(10) any part of the town that is included in a fire protection
district established under IC 36-8-11 on December 31, 2026,
that is located in the county containing the consolidated city,
shall continue to be included in the fire protection district.".
Page 2, line 42, after "5." insert "(a)".
Page 3, between lines 3 and 4, begin a new paragraph and insert:
"(b) After December 31, 2026, the town is liable for debt service
owed by the consolidated city on December 31, 2026, in the same
ratio as the assessed valuation of the property in the town bears to
the assessed valuation of all property included in the consolidated
city until the particular debt service is satisfied. The town is not
liable for debt service issued by the consolidated city after
December 31, 2026.".
Renumber all SECTIONS consecutively.
and when so amended that said bill do pass.
(Reference is to HB 1131 as introduced.)
MAY
Committee Vote: yeas 10, nays 0.
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COMMITTEE REPORT
Mr. Speaker: Your Committee on Ways and Means, to which was
referred House Bill 1131, has had the same under consideration and
begs leave to report the same back to the House with the
recommendation that said bill do pass.
(Reference is to HB 1131 as printed January 28, 2025.)
THOMPSON
Committee Vote: Yeas 22, Nays 0
HB 1131—LS 6346/DI 87