IN
Indiana House Bill HB1131

Indiana 2025 Regular Session

Indiana House Bill HB1131 Compare Versions

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1+*EH1131.2*
2+March 19, 2025
3+ENGROSSED
4+HOUSE BILL No. 1131
5+_____
6+DIGEST OF HB 1131 (Updated March 18, 2025 9:28 am - DI 140)
7+Citations Affected: IC 36-3.
8+Synopsis: Town of Cumberland. Provides that on January 1, 2027, the
9+town of Cumberland is an excluded city and no longer part of the
10+consolidated city. Requires the town legislative body and the legislative
11+body of the consolidated city and county to take any steps necessary to
12+transition the town to an excluded city. Requires the department of
13+local government finance to adjust property tax levies, rates, budgets,
14+and distributive shares of local units of local government as necessary
15+to account for the town becoming an excluded city. Provides that, after
16+December 31, 2026, any part of the town that is included in a fire
17+protection district on December 31, 2026, that is located in the county
18+containing the consolidated city, shall continue to be included in the
19+fire protection district. Provides that, after December 31, 2026, the
20+town is liable for debt service owed by the consolidated city on
21+December 31, 2026, in the same ratio as the assessed valuation of the
22+property in the town bears to the assessed valuation of all property
23+included in the consolidated city until the particular debt service is
24+satisfied.
25+Effective: July 1, 2025; January 1, 2027.
26+Miller D, Pressel, Heine, Gore
27+(SENATE SPONSOR — CRIDER)
28+January 8, 2025, read first time and referred to Committee on Local Government.
29+January 28, 2025, amended, reported — Do Pass. Referred to Committee on Ways and
30+Means pursuant to Rule 126.3.
31+February 6, 2025, reported — Do Pass.
32+February 10, 2025, read second time, ordered engrossed.
33+February 11, 2025, engrossed. Read third time, passed. Yeas 89, nays 3.
34+SENATE ACTION
35+February 20, 2025, read first time and referred to Committee on Local Government.
36+March 10, 2025, reported favorably — Do Pass; reassigned to Committee on Tax and
37+Fiscal Policy.
38+March 18, 2025, reported favorably — Do Pass.
39+EH 1131—LS 6346/DI 87 March 19, 2025
140 First Regular Session of the 124th General Assembly (2025)
241 PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
342 Constitution) is being amended, the text of the existing provision will appear in this style type,
443 additions will appear in this style type, and deletions will appear in this style type.
544 Additions: Whenever a new statutory provision is being enacted (or a new constitutional
645 provision adopted), the text of the new provision will appear in this style type. Also, the
746 word NEW will appear in that style type in the introductory clause of each SECTION that adds
847 a new provision to the Indiana Code or the Indiana Constitution.
948 Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
1049 between statutes enacted by the 2024 Regular Session of the General Assembly.
11-HOUSE ENROLLED ACT No. 1131
12-AN ACT to amend the Indiana Code concerning local government.
50+ENGROSSED
51+HOUSE BILL No. 1131
52+A BILL FOR AN ACT to amend the Indiana Code concerning local
53+government.
1354 Be it enacted by the General Assembly of the State of Indiana:
14-SECTION 1. IC 36-3-1-7 IS AMENDED TO READ AS FOLLOWS
15-[EFFECTIVE JANUARY 1, 2027]: Sec. 7. (a) A municipality, other
16-than a first class city, having a population of more than five thousand
17-(5,000) in the county is known as an excluded city and does not
18-become part of the consolidated city under this chapter. In addition, a
19-municipality that had qualified as an excluded city before January 1,
20-1973, under IC 18-4-1-2(d) (repealed September 1, 1981), is
21-considered an excluded city. The following municipalities are
22-excluded cities and are not part of the consolidated city under this
23-chapter:
24-(1) The city of Lawrence.
25-(2) The city of Beech Grove.
26-(3) The city of Southport.
27-(4) The town of Speedway.
28-(5) The town of Cumberland.
29-Any other municipality is known as an included town and does become
30-is a part of the consolidated city under this chapter.
31-(b) This article applies to any part of an included town the town of
32-Cumberland that is inside the county boundaries of Marion County,
33-even though part of it the town is outside those the boundaries of
34-Marion County.
35-SECTION 2. IC 36-3-8 IS ADDED TO THE INDIANA CODE AS
36-HEA 1131 2
37-A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY
38-1, 2025]:
39-Chapter 8. Town of Cumberland
40-Sec. 1. This chapter applies only to the part of the town of
41-Cumberland located within Marion County.
42-Sec. 2. After December 31, 2026:
43-(1) the town remains a town government;
44-(2) the town's boundaries and name remain the same;
45-(3) the term of any elected or appointed officer of the town is
46-not affected;
47-(4) the town ceases to be:
48-(A) an included town under IC 36-3-1-7; and
49-(B) a part of the consolidated city;
50-(5) the town is an excluded city as provided in IC 36-3-1-7 and
51-IC 36-3-2-4 and has all of the rights, powers, duties, and
52-responsibilities of an excluded city;
53-(6) the town continues to fulfill the duties that were imposed
54-by law upon the consolidated city before January 1, 2027,
55-within the town boundaries;
56-(7) the resolutions, fees, schedules, or other actions adopted or
57-taken by the town legislative body or town clerk-treasurer
58-before January 1, 2027, remain valid;
59-(8) any appointments made by the town legislative body
60-before January 1, 2027, remain valid;
61-(9) the town retains its assets, debts, property rights,
62-equipment, records, personnel, and contracts; and
63-(10) any part of the town that is included in a fire protection
55+1 SECTION 1. IC 36-3-1-7 IS AMENDED TO READ AS FOLLOWS
56+2 [EFFECTIVE JANUARY 1, 2027]: Sec. 7. (a) A municipality, other
57+3 than a first class city, having a population of more than five thousand
58+4 (5,000) in the county is known as an excluded city and does not
59+5 become part of the consolidated city under this chapter. In addition, a
60+6 municipality that had qualified as an excluded city before January 1,
61+7 1973, under IC 18-4-1-2(d) (repealed September 1, 1981), is
62+8 considered an excluded city. The following municipalities are
63+9 excluded cities and are not part of the consolidated city under this
64+10 chapter:
65+11 (1) The city of Lawrence.
66+12 (2) The city of Beech Grove.
67+13 (3) The city of Southport.
68+14 (4) The town of Speedway.
69+15 (5) The town of Cumberland.
70+16 Any other municipality is known as an included town and does become
71+17 is a part of the consolidated city under this chapter.
72+EH 1131—LS 6346/DI 87 2
73+1 (b) This article applies to any part of an included town the town of
74+2 Cumberland that is inside the county boundaries of Marion County,
75+3 even though part of it the town is outside those the boundaries of
76+4 Marion County.
77+5 SECTION 2. IC 36-3-8 IS ADDED TO THE INDIANA CODE AS
78+6 A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY
79+7 1, 2025]:
80+8 Chapter 8. Town of Cumberland
81+9 Sec. 1. This chapter applies only to the part of the town of
82+10 Cumberland located within Marion County.
83+11 Sec. 2. After December 31, 2026:
84+12 (1) the town remains a town government;
85+13 (2) the town's boundaries and name remain the same;
86+14 (3) the term of any elected or appointed officer of the town is
87+15 not affected;
88+16 (4) the town ceases to be:
89+17 (A) an included town under IC 36-3-1-7; and
90+18 (B) a part of the consolidated city;
91+19 (5) the town is an excluded city as provided in IC 36-3-1-7 and
92+20 IC 36-3-2-4 and has all of the rights, powers, duties, and
93+21 responsibilities of an excluded city;
94+22 (6) the town continues to fulfill the duties that were imposed
95+23 by law upon the consolidated city before January 1, 2027,
96+24 within the town boundaries;
97+25 (7) the resolutions, fees, schedules, or other actions adopted or
98+26 taken by the town legislative body or town clerk-treasurer
99+27 before January 1, 2027, remain valid;
100+28 (8) any appointments made by the town legislative body
101+29 before January 1, 2027, remain valid;
102+30 (9) the town retains its assets, debts, property rights,
103+31 equipment, records, personnel, and contracts; and
104+32 (10) any part of the town that is included in a fire protection
105+33 district established under IC 36-8-11 on December 31, 2026,
106+34 that is located in the county containing the consolidated city,
107+35 shall continue to be included in the fire protection district.
108+36 Sec. 3. After December 31, 2026, any reference in:
109+37 (1) the Indiana Code;
110+38 (2) the Indiana Administrative Code; or
111+39 (3) any resolution;
112+40 to an excluded city, unless expressly provided otherwise, is
113+41 considered a reference to the town.
114+42 Sec. 4. The town legislative body and the legislative body of the
115+EH 1131—LS 6346/DI 87 3
116+1 consolidated city and county shall take any steps necessary to
117+2 implement this chapter, including adopting ordinances, resolutions,
118+3 and entering into interlocal agreements.
119+4 Sec. 5. (a) The department of local government finance shall
120+5 adjust maximum permissible property tax levies, rates, and
121+6 budgets of units of local government as necessary to account for
122+7 the town becoming an excluded city.
123+8 (b) After December 31, 2026, the town is liable for debt service
124+9 owed by the consolidated city on December 31, 2026, in the same
125+10 ratio as the assessed valuation of the property in the town bears to
126+11 the assessed valuation of all property included in the consolidated
127+12 city until the particular debt service is satisfied. The town is not
128+13 liable for debt service issued by the consolidated city after
129+14 December 31, 2026.
130+15 Sec. 6. Notwithstanding IC 6-3.6-11-5, the department of local
131+16 government finance shall adjust the distributive shares of the
132+17 consolidated city and county and the town under IC 6-3.6-11-5 as
133+18 necessary to account for the town becoming an excluded city.
134+EH 1131—LS 6346/DI 87 4
135+COMMITTEE REPORT
136+Mr. Speaker: Your Committee on Local Government, to which was
137+referred House Bill 1131, has had the same under consideration and
138+begs leave to report the same back to the House with the
139+recommendation that said bill be amended as follows:
140+Page 2, line 29, delete "and".
141+Page 2, line 31, delete "contracts." and insert "contracts; and".
142+Page 2, between lines 31 and 32, begin a new line block indented
143+and insert:
144+"(10) any part of the town that is included in a fire protection
64145 district established under IC 36-8-11 on December 31, 2026,
65146 that is located in the county containing the consolidated city,
66-shall continue to be included in the fire protection district.
67-Sec. 3. After December 31, 2026, any reference in:
68-(1) the Indiana Code;
69-(2) the Indiana Administrative Code; or
70-(3) any resolution;
71-to an excluded city, unless expressly provided otherwise, is
72-considered a reference to the town.
73-Sec. 4. The town legislative body and the legislative body of the
74-consolidated city and county shall take any steps necessary to
75-implement this chapter, including adopting ordinances, resolutions,
76-and entering into interlocal agreements.
77-Sec. 5. (a) The department of local government finance shall
78-adjust maximum permissible property tax levies, rates, and
79-HEA 1131 3
80-budgets of units of local government as necessary to account for
81-the town becoming an excluded city.
82-(b) After December 31, 2026, the town is liable for debt service
147+shall continue to be included in the fire protection district.".
148+Page 2, line 42, after "5." insert "(a)".
149+Page 3, between lines 3 and 4, begin a new paragraph and insert:
150+"(b) After December 31, 2026, the town is liable for debt service
83151 owed by the consolidated city on December 31, 2026, in the same
84152 ratio as the assessed valuation of the property in the town bears to
85153 the assessed valuation of all property included in the consolidated
86154 city until the particular debt service is satisfied. The town is not
87155 liable for debt service issued by the consolidated city after
88-December 31, 2026.
89-Sec. 6. Notwithstanding IC 6-3.6-11-5, the department of local
90-government finance shall adjust the distributive shares of the
91-consolidated city and county and the town under IC 6-3.6-11-5 as
92-necessary to account for the town becoming an excluded city.
93-HEA 1131 Speaker of the House of Representatives
94-President of the Senate
95-President Pro Tempore
96-Governor of the State of Indiana
97-Date: Time:
98-HEA 1131
156+December 31, 2026.".
157+Renumber all SECTIONS consecutively.
158+and when so amended that said bill do pass.
159+(Reference is to HB 1131 as introduced.)
160+MAY
161+Committee Vote: yeas 10, nays 0.
162+_____
163+COMMITTEE REPORT
164+Mr. Speaker: Your Committee on Ways and Means, to which was
165+referred House Bill 1131, has had the same under consideration and
166+begs leave to report the same back to the House with the
167+recommendation that said bill do pass.
168+(Reference is to HB 1131 as printed January 28, 2025.)
169+THOMPSON
170+Committee Vote: Yeas 22, Nays 0
171+EH 1131—LS 6346/DI 87 5
172+COMMITTEE REPORT
173+Mr. President: The Senate Committee on Local Government, to
174+which was referred House Bill No. 1131, has had the same under
175+consideration and begs leave to report the same back to the Senate with
176+the recommendation that said bill DO PASS and be reassigned to the
177+Senate Committee on Tax and Fiscal Policy.
178+ (Reference is to HB 1131 as printed February 6, 2025.)
179+NIEMEYER, Chairperson
180+Committee Vote: Yeas 8, Nays 0
181+_____
182+COMMITTEE REPORT
183+Mr. President: The Senate Committee on Tax and Fiscal Policy, to
184+which was referred Engrossed House Bill No. 1131, has had the same
185+under consideration and begs leave to report the same back to the
186+Senate with the recommendation that said bill DO PASS.
187+ (Reference is to EHB 1131 as printed March 11, 2025.)
188+
189+HOLDMAN, Chairperson
190+Committee Vote: Yeas 12, Nays 0
191+EH 1131—LS 6346/DI 87