First Regular Session of the 124th General Assembly (2025)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
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HOUSE ENROLLED ACT No. 1131
AN ACT to amend the Indiana Code concerning local government.
Be it enacted by the General Assembly of the State of Indiana:
SECTION 1. IC 36-3-1-7 IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2027]: Sec. 7. (a) A municipality, other
than a first class city, having a population of more than five thousand
(5,000) in the county is known as an excluded city and does not
become part of the consolidated city under this chapter. In addition, a
municipality that had qualified as an excluded city before January 1,
1973, under IC 18-4-1-2(d) (repealed September 1, 1981), is
considered an excluded city. The following municipalities are
excluded cities and are not part of the consolidated city under this
chapter:
(1) The city of Lawrence.
(2) The city of Beech Grove.
(3) The city of Southport.
(4) The town of Speedway.
(5) The town of Cumberland.
Any other municipality is known as an included town and does become
is a part of the consolidated city under this chapter.
(b) This article applies to any part of an included town the town of
Cumberland that is inside the county boundaries of Marion County,
even though part of it the town is outside those the boundaries of
Marion County.
SECTION 2. IC 36-3-8 IS ADDED TO THE INDIANA CODE AS
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A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2025]:
Chapter 8. Town of Cumberland
Sec. 1. This chapter applies only to the part of the town of
Cumberland located within Marion County.
Sec. 2. After December 31, 2026:
(1) the town remains a town government;
(2) the town's boundaries and name remain the same;
(3) the term of any elected or appointed officer of the town is
not affected;
(4) the town ceases to be:
(A) an included town under IC 36-3-1-7; and
(B) a part of the consolidated city;
(5) the town is an excluded city as provided in IC 36-3-1-7 and
IC 36-3-2-4 and has all of the rights, powers, duties, and
responsibilities of an excluded city;
(6) the town continues to fulfill the duties that were imposed
by law upon the consolidated city before January 1, 2027,
within the town boundaries;
(7) the resolutions, fees, schedules, or other actions adopted or
taken by the town legislative body or town clerk-treasurer
before January 1, 2027, remain valid;
(8) any appointments made by the town legislative body
before January 1, 2027, remain valid;
(9) the town retains its assets, debts, property rights,
equipment, records, personnel, and contracts; and
(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.
Sec. 3. After December 31, 2026, any reference in:
(1) the Indiana Code;
(2) the Indiana Administrative Code; or
(3) any resolution;
to an excluded city, unless expressly provided otherwise, is
considered a reference to the town.
Sec. 4. The town legislative body and the legislative body of the
consolidated city and county shall take any steps necessary to
implement this chapter, including adopting ordinances, resolutions,
and entering into interlocal agreements.
Sec. 5. (a) The department of local government finance shall
adjust maximum permissible property tax levies, rates, and
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budgets of units of local government as necessary to account for
the town becoming an excluded city.
(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.
Sec. 6. Notwithstanding IC 6-3.6-11-5, the department of local
government finance shall adjust the distributive shares of the
consolidated city and county and the town under IC 6-3.6-11-5 as
necessary to account for the town becoming an excluded city.
HEA 1131 Speaker of the House of Representatives
President of the Senate
President Pro Tempore
Governor of the State of Indiana
Date: Time:
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