*HB1362.1*
February 11, 2025
HOUSE BILL No. 1362
_____
DIGEST OF HB 1362 (Updated February 11, 2025 10:43 am - DI 116)
Citations Affected: IC 13-18; IC 36-4; IC 36-9.
Synopsis: Annexation. With certain exceptions, requires a
municipality that initiates an annexation to file with the court an
annexation petition approved by the signatures of: (1) at least 51% of
the owners of land not exempt from property taxes in the annexation
territory; or (2) the owners of at least 75% in assessed valuation of land
not exempt from property taxes in the annexation territory. Requires
the court to hold a hearing if the petition has the necessary signatures.
Adds provisions for determining the validity of signatures. Provides
that a landowner may enter into an agreement to consent to a future
annexation in certain circumstances. Eliminates the following: (1)
Remonstrances and remonstrance waivers. (2) Reimbursement of
remonstrator's attorney's fees and costs. (3) Adoption of a fiscal plan
for voluntary annexations requested by 100% of landowners in the
annexation territory. (4) Settlement agreements in lieu of annexation.
(5) Provisions regarding contiguity of a public highway.
Effective: Upon passage.
Hall, Morris
January 13, 2025, read first time and referred to Committee on Local Government.
February 11, 2025, amended, reported — Do Pass.
HB 1362—LS 7347/DI 116 February 11, 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.
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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. 1362
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 13-18-15-2, AS AMENDED BY P.L.257-2019,
2 SECTION 83, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 UPON PASSAGE]: Sec. 2. (a) The persons involved shall negotiate the
4 terms for connection and service under this chapter.
5 (b) If service is ordered under this chapter, a receiver of that service
6 that is located in an unincorporated area may grant a waiver to a
7 municipality providing the service. A waiver under this section:
8 (1) must waive the receiver's right of remonstrance against
9 annexation of the areas in which the service is to be provided; and
10 (2) may be one (1) of the terms for connection and service
11 described in subsection (a).
12 (c) The waiver, if granted:
13 (1) shall be noted on the deed of each property affected and
14 recorded as provided by law; and
15 (2) is considered a covenant running with the land.
16 (d) This subsection applies to any deed recorded after June 30,
17 2015. This subsection applies only to property that is subject to a
HB 1362—LS 7347/DI 116 2
1 remonstrance waiver. A municipality shall, within a reasonable time
2 after the recording of a deed to property located within the
3 municipality, provide written notice to the property owner that a waiver
4 of the right of remonstrance exists with respect to the property.
5 (e) A remonstrance waiver executed before July 1, 2003, is void.
6 This subsection does not invalidate an annexation that was effective on
7 or before July 1, 2019.
8 (f) A remonstrance waiver executed after June 30, 2003, and before
9 July 1, 2019, is subject to the following:
10 (1) The waiver is void unless the waiver was recorded (A) before
11 January 1, 2020, and (B) with the county recorder of the county
12 where the property subject to the waiver is located.
13 (2) A waiver that is not void under subdivision (1) or subsection
14 (h) expires not later than fifteen (15) years after the date the
15 waiver is executed.
16 This subsection does not invalidate an annexation that was effective on
17 or before July 1, 2019.
18 (g) A remonstrance waiver executed after June 30, 2019, is subject
19 to the following: (1) The waiver is void unless the waiver is must be
20 recorded (A) not later than thirty (30) business days after the date the
21 waiver was executed and (B) with the county recorder of the county
22 where the property subject to the waiver is located. (2) A waiver that
23 is not void under subdivision (1) expires not later than fifteen (15)
24 years after the date the waiver is executed. This subsection does not
25 invalidate an annexation that was effective on or before July 1, 2019.
26 (h) Notwithstanding any other law, a waiver of the right of
27 remonstrance is valid and binding on a landowner or a successor
28 in title only with regard to an annexation for which the annexation
29 ordinance was adopted before May 15, 2025.
30 (i) This subsection applies after May 14, 2025. If service is
31 ordered under this chapter, a receiver of that service that is located
32 in an unincorporated area may enter into an agreement described
33 in IC 36-4-3-5.5(i) with a municipality providing the service. An
34 agreement under this subsection:
35 (1) provides that the landowner consents to a future
36 annexation of the property by a municipality and the
37 landowner will be included on a petition under IC 36-4-3-5.5
38 in accordance with the terms set forth in IC 36-4-3-5.5(i); and
39 (2) may be one (1) of the terms for connection and service
40 described in subsection (a).
41 The agreement, if granted, shall be noted on the deed of each
42 property affected and recorded as provided by law and is
HB 1362—LS 7347/DI 116 3
1 considered a covenant running with the land.
2 SECTION 2. IC 36-4-3-1.5, AS AMENDED BY P.L.206-2016,
3 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
4 UPON PASSAGE]: Sec. 1.5. (a) For purposes of this chapter, territory
5 sought to be annexed may be considered "contiguous" only if at least
6 one-eighth (1/8) of the aggregate external boundaries of the territory
7 coincides with the boundaries of the annexing municipality. In
8 determining if a territory is contiguous, a strip of land less than one
9 hundred fifty (150) feet wide that connects the annexing municipality
10 to the territory is not considered a part of the boundaries of either the
11 municipality or the territory.
12 (b) This subsection applies to an annexation for which an
13 annexation ordinance is adopted after June 30, 2015, and before May
14 15, 2025. A public highway or the rights-of-way of a public highway
15 are contiguous to:
16 (1) the municipality; or
17 (2) property in the unincorporated area adjacent to the public
18 highway or rights-of-way of a public highway;
19 if the public highway or the rights-of-way of a public highway are
20 contiguous under subsection (a) and one (1) of the requirements in
21 subsection (c) is satisfied.
22 (c) This subsection applies to an annexation for which an
23 annexation ordinance is adopted after June 30, 2015, and before
24 May 15, 2025. A public highway or the rights-of-way of a public
25 highway are not contiguous unless one (1) of the following
26 requirements is met:
27 (1) The municipality obtains the written consent of the owners of
28 all property:
29 (A) adjacent to the entire length of the part of the public
30 highway and rights-of-way of the public highway that is being
31 annexed; and
32 (B) not already within the corporate boundaries of the
33 municipality.
34 A waiver of the right of remonstrance executed by a property
35 owner or a successor in title of the property owner for sewer
36 services or water services does not constitute written consent for
37 purposes of this subdivision.
38 (2) All property adjacent to at least one (1) side of the entire
39 length of the part of the public highway or rights-of-way of the
40 public highway being annexed is already within the corporate
41 boundaries of the municipality.
42 (3) All property adjacent to at least one (1) side of the entire
HB 1362—LS 7347/DI 116 4
1 length of the part of the public highway or rights-of-way of the
2 public highway being annexed is part of the same annexation
3 ordinance in which the public highway or rights-of-way of a
4 public highway are being annexed.
5 A municipality may not annex a public highway or the rights-of-way of
6 a public highway or annex territory adjacent to the public highway or
7 rights-of-way of a public highway unless the requirements of this
8 section are met.
9 SECTION 3. IC 36-4-3-1.7, AS AMENDED BY P.L.70-2022,
10 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
11 UPON PASSAGE]: Sec. 1.7. (a) This section applies only to an
12 annexation ordinance adopted after June 30, 2015. This section does
13 not apply to an annexation under section 5.1 of this chapter.
14 (b) Not earlier than six (6) months before a municipality introduces
15 an annexation ordinance, the municipality shall conduct an outreach
16 program to inform citizens regarding the proposed annexation. For an
17 annexation under section 3 or 4 of this chapter, the outreach program
18 must conduct at least six (6) public information meetings regarding the
19 proposed annexation. For an annexation under section 5 or 5.2 of this
20 chapter, the outreach program must conduct at least three (3) public
21 information meetings regarding the proposed annexation. The public
22 information meetings must provide citizens with the following
23 information:
24 (1) Maps showing the proposed boundaries of the annexation
25 territory.
26 (2) Proposed plans for extension of capital and noncapital
27 services in the annexation territory, including proposed dates of
28 extension. In the case of an annexation under section 5.2 of this
29 chapter, a copy of the preliminary written fiscal plan.
30 (3) Expected fiscal impact on taxpayers in the annexation
31 territory, including any increase in taxes and fees.
32 (c) The municipality shall provide notice of the dates, times, and
33 locations of the outreach program meetings. The municipality shall
34 publish the notice of the meetings under IC 5-3-1, including the date,
35 time, and location of the meetings, except that notice must be published
36 not later than thirty (30) days before the date of each meeting. The
37 municipality shall also send notice to each owner of land within the
38 annexation territory not later than thirty (30) days before the date of the
39 first meeting of the outreach program. The notice to landowners shall
40 be sent by first class mail, certified mail with return receipt requested,
41 or any other means of delivery that includes a return receipt and must
42 include the following information:
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1 (1) The notice to the landowner must inform the landowner that
2 the municipality is proposing to annex territory that includes the
3 landowner's property.
4 (2) The municipality is conducting an outreach program for the
5 purpose of providing information to landowners and the public
6 regarding the proposed annexation.
7 (3) The date, time, and location of the meetings to be conducted
8 under the outreach program.
9 (d) The notice shall be sent to the address of the landowner as listed
10 on the tax duplicate. If the municipality provides evidence that the
11 notice was sent:
12 (1) by certified mail, with return receipt requested or any other
13 means of delivery that includes a return receipt; and
14 (2) in accordance with this section;
15 it is not necessary that the landowner accept receipt of the notice.
16 (e) This subsection applies only to an annexation for which an
17 annexation ordinance is adopted after June 30, 2015, and before
18 May 15, 2025. If a remonstrance is filed under section 11 of this
19 chapter, the municipality shall file with the court proof that notices
20 were sent to landowners under this section and proof of publication.
21 (e) (f) The notice required under this section is in addition to any
22 notice required under sections 2.1 and 2.2 of this chapter.
23 SECTION 4. IC 36-4-3-3.1, AS AMENDED BY P.L.70-2022,
24 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
25 UPON PASSAGE]: Sec. 3.1. (a) This section does not apply to an
26 annexation under:
27 (1) section 4(a)(2), 4(a)(3), 4(b), 4(h), or 4.1 of this chapter; or
28 (2) section 5.1 of this chapter, for which an annexation
29 ordinance is adopted after May 14, 2025.
30 (b) A municipality shall develop and adopt a written fiscal plan and
31 establish a definite policy by resolution of the legislative body that
32 meets the requirements set forth in section 13 of this chapter.
33 (c) Except as provided in subsection (d) and section 5.2 of this
34 chapter, the municipality shall establish and adopt the written fiscal
35 plan before mailing the notification to landowners in the territory
36 proposed to be annexed under section 2.2 of this chapter.
37 (d) In an annexation under section 5 or 5.1 5.5 of this chapter, the
38 municipality shall establish and adopt the written fiscal plan before
39 adopting the annexation ordinance.
40 SECTION 5. IC 36-4-3-5, AS AMENDED BY P.L.149-2016,
41 SECTION 96, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
42 UPON PASSAGE]: Sec. 5. (a) This subsection applies only to a
HB 1362—LS 7347/DI 116 6
1 petition requesting annexation that is filed before July 1, 2015. If the
2 owners of land located outside of but contiguous to a municipality want
3 to have territory containing that land annexed to the municipality, they
4 may file with the legislative body of the municipality a petition:
5 (1) signed by at least:
6 (A) fifty-one percent (51%) of the owners of land in the
7 territory sought to be annexed; or
8 (B) the owners of seventy-five percent (75%) of the total
9 assessed value of the land for property tax purposes; and
10 (2) requesting an ordinance annexing the area described in the
11 petition.
12 (b) This subsection applies only to a petition requesting annexation
that is filed after June 30, 2015. 13 A municipality may not collect
14 signatures on an annexation petition that is filed with the legislative
15 body under this section after May 14, 2025. If the owners of land
16 located outside of but contiguous to a municipality want to have
17 territory containing that land annexed to the municipality, they may file
18 with the legislative body of the municipality a petition that meets the
19 following requirements:
20 (1) The petition is signed by at least one (1) of the following:
21 (A) Fifty-one percent (51%) of the owners of land in the
22 territory sought to be annexed. An owner of land may not:
23 (i) be counted in calculating the total number of owners of
24 land in the annexation territory; or
25 (ii) have the owner's signature counted;
26 with regard to any single property that the owner has an
27 interest in that was exempt from property taxes under
28 IC 6-1.1-10 or any other state law for the immediately
29 preceding year.
30 (B) The owners of seventy-five percent (75%) of the total
31 assessed value of the land for property tax purposes. Land that
32 was exempt from property taxes under IC 6-1.1-10 or any
33 other state law for the immediately preceding year may not be
34 included in calculating the total assessed valuation of the land
35 in the annexation territory. The court may not count an owner's
36 signature on a petition with regard to any single property that
37 the owner has an interest in that was exempt from property
38 taxes under IC 6-1.1-10 or any other state law for the
39 immediately preceding year.
40 (2) The petition requests an ordinance annexing the area
41 described in the petition.
42 (c) The petition circulated by the landowners must include on each
HB 1362—LS 7347/DI 116 7
1 page where signatures are affixed a heading that is substantially similar
2 to the following:
3 "PETITION FOR ANNEXATION INTO THE (insert whether city
4 or town) OF (insert name of city or town).".
5 (d) If the legislative body fails to pass the ordinance within one
6 hundred fifty (150) days after the date of filing of a petition under
7 subsection (a) or (b), the petitioners may file a duplicate copy of the
8 petition in the circuit or superior court of a county in which the territory
9 is located, and shall include a written statement of why the annexation
10 should take place. Notice of the proceedings, in the form of a
11 summons, shall be served on the municipality named in the petition.
12 The municipality is the defendant in the cause and shall appear and
13 answer.
14 (e) The court shall hear and determine the petition without a jury,
15 and shall order the proposed annexation to take place only if the
16 evidence introduced by the parties establishes that:
17 (1) essential municipal services and facilities are not available to
18 the residents of the territory sought to be annexed;
19 (2) the municipality is physically and financially able to provide
20 municipal services to the territory sought to be annexed;
21 (3) the population density of the territory sought to be annexed is
22 at least three (3) persons per acre; and
23 (4) the territory sought to be annexed is contiguous to the
24 municipality.
25 If the evidence does not establish all four (4) of the preceding factors,
26 the court shall deny the petition and dismiss the proceeding.
27 (f) This subsection does not apply to a town that has abolished town
28 legislative body districts under IC 36-5-2-4.1. An ordinance adopted
29 under this section must assign the territory annexed by the ordinance
30 to at least one (1) municipal legislative body district.
31 SECTION 6. IC 36-4-3-5.1, AS AMENDED BY P.L.160-2020,
32 SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
33 UPON PASSAGE]: Sec. 5.1. (a) Owners of land that is located outside
34 but contiguous to a municipality or that is located in territory described
35 in section 4(i) of this chapter may voluntarily file a petition with the
36 legislative body of the municipality:
37 (1) requesting an ordinance annexing the area described in the
38 petition; and
39 (2) signed by:
40 (A) one hundred percent (100%) of the landowners that reside
41 within the territory that is proposed to be annexed, in the case
42 of a petition filed before July 1, 2015; and
HB 1362—LS 7347/DI 116 8
1 (B) in the case of a petition filed after June 30, 2015, one
2 hundred percent (100%) of the owners of land within the
3 territory that is proposed to be annexed.
4 (b) Sections 2.1 and 2.2 of this chapter do not apply to an
5 annexation under this section.
6 (c) The petition circulated by the landowners must include on each
7 page where signatures are affixed a heading that is substantially similar
8 to the following:
9 "PETITION FOR ANNEXATION INTO THE (insert whether city
10 or town) OF (insert name of city or town).".
11 (d) The municipality may (1) adopt an annexation ordinance
12 annexing the territory and (2) adopt a fiscal plan and establish a
13 definite policy by resolution of the legislative body; after the legislative
14 body has held a public hearing on the proposed annexation.
15 (e) The municipality may introduce and hold the public hearing on
16 the annexation ordinance not later than thirty (30) days after the
17 petition is filed with the legislative body. Notice of the public hearing
18 may be published one (1) time in accordance with IC 5-3-1 at least
19 twenty (20) days before the hearing. All interested parties must have
20 the opportunity to testify at the hearing as to the proposed annexation.
21 (f) The municipality may adopt the annexation ordinance not earlier
22 than fourteen (14) days after the public hearing under subsection (e).
23 (g) A landowner may withdraw the landowner's signature from the
24 petition not more than thirteen (13) days after the municipality adopts
25 the fiscal plan date of the public hearing under subsection (e) by
26 providing written notice to the office of the clerk of the municipality.
27 If a landowner withdraws the landowner's signature, the petition shall
28 automatically be considered a voluntary petition that is filed with the
29 legislative body under section 5 of this chapter, fourteen (14) days after
30 the date the fiscal plan is adopted. of the public hearing under
31 subsection (e). All provisions applicable to a petition initiated under
32 section 5 of this chapter apply to the petition.
33 (h) If the municipality does not adopt an annexation ordinance
34 within sixty (60) days after the landowners file the petition with the
35 legislative body, the landowners may file a duplicate petition with the
36 circuit or superior court of a county in which the territory is located.
37 The court shall determine whether the annexation shall take place as
38 set forth in section 5 of this chapter.
39 (i) A remonstrance under section 11 of this chapter may not be filed.
40 However, an appeal under section 15.5 of this chapter may be filed.
41 (j) (i) In the absence of an appeal under section 15.5 of this chapter,
42 an annexation ordinance adopted under this section takes effect not less
HB 1362—LS 7347/DI 116 9
1 than thirty (30) days after the adoption of the ordinance and upon the
2 filing and recording of the ordinance under section 22 of this chapter.
3 SECTION 7. IC 36-4-3-5.5 IS ADDED TO THE INDIANA CODE
4 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
5 UPON PASSAGE]: Sec. 5.5. (a) This section does not apply to an
6 annexation under section 5 or 5.1 of this chapter.
7 (b) This section applies only to an annexation for which an
8 annexation ordinance is adopted after May 14, 2025.
9 (c) Except as provided in subsection (i), after adopting an
10 annexation ordinance under section 3 or 4 of this chapter, in order
11 for the annexation to proceed, the municipality must file a written
12 petition under subsection (f) signed by owners of land in the
13 territory proposed to be annexed who are in favor of the
14 annexation. The petition must be signed by:
15 (1) at least fifty-one percent (51%) of the owners of land:
16 (A) not exempt from property taxes under IC 6-1.1-10 or
any other state law; and17
18 (B) in the territory proposed to be annexed; or
19 (2) the owners of more than seventy-five percent (75%) in
20 assessed valuation of land:
21 (A) not exempt from property taxes under IC 6-1.1-10 or
22 any other state law; and
23 (B) in the territory proposed to be annexed.
24 The municipality may collect signatures for the petition by mail on
25 a form prescribed by the municipality that meets the requirements
26 of this section as long as the signature is made under oath or
27 affirmation.
28 (d) The petition circulated by the municipality must include on
29 each page where signatures are affixed a heading that is
30 substantially similar to the following:
31 "PETITION FOR ANNEXATION INTO THE (insert whether
32 city or town) OF (insert name of city or town).".
33 (e) A landowner may withdraw the landowner's signature from
34 the petition not more than ten (10) days after the municipality
35 adopts the annexation ordinance by providing written notice to the
36 office of the clerk of the municipality. A landowner who withdraws
37 the landowner's signature from the petition is considered not to
38 have signed the petition for purposes of subsection (h)(2).
39 (f) The municipality must file the petition with the circuit or
40 superior court of the county where the municipality is located not
41 later than ninety (90) days after the publication of the annexation
42 ordinance under section 7 of this chapter. The petition must be
HB 1362—LS 7347/DI 116 10
1 accompanied by:
2 (1) a copy of the ordinance; and
3 (2) the names and addresses of all persons who meet the
4 requirements of subsection (h).
5 (g) On receipt of the petition, the court shall determine whether
6 the petition has the necessary signatures. In determining the total
7 number of landowners of the territory proposed to be annexed and
8 whether signers of the petition are landowners, the names
9 appearing on the tax duplicate for that territory constitute prima
10 facie evidence of ownership. Only one (1) person having an interest
11 in each single property, as evidenced by the tax duplicate, is
12 considered a landowner for purposes of this section. A person is
13 entitled to sign a petition only one (1) time, regardless of whether
14 the person owns more than one (1) parcel of real property. If the
15 court determines that the municipality's petition has a sufficient
16 number of signatures, the court shall fix a time, not later than sixty
17 (60) days after its determination, for a public hearing on the
18 petition.
19 (h) A person may intervene as a party at the hearing described
20 in subsection (g) if the following requirements are satisfied:
21 (1) The person owns, solely or with another person, property
22 that is in the territory proposed to be annexed.
23 (2) None of the owners of the property signed the petition filed
24 by the municipality.
25 (3) The person appeared in person or submitted a
26 remonstrance or other document objecting to the annexation
27 into the record of the municipality's public hearing on the
28 annexation ordinance under section 2.1 of this chapter.
29 The court shall give a person described in this subsection notice of
30 the public hearing on the petition by certified mail.
31 (i) A receiver of service under IC 13-18-15, IC 36-9-22, or
32 IC 36-9-25-14 whose property is located in an unincorporated area
33 may enter into an agreement to provide consent to a future
34 annexation in accordance with the requirements set forth in this
35 section. A landowner who signs an agreement under this subsection
36 shall be included in the petition described in subsection (c).
37 However, an agreement under this subsection is subject to the
38 following:
39 (1) The agreement is void unless the agreement is recorded:
40 (A) not later than thirty (30) business days after the date
41 the agreement was executed; and
42 (B) with the county recorder of the county where the
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1 property subject to the agreement is located.
2 (2) An agreement that is not void under subdivision (1)
3 expires not later than fifteen (15) years after the date the
4 agreement is executed.
5 A municipality shall provide written notice to any successor in title
6 to the property within a reasonable time after the deed is recorded,
7 that an agreement has been made with respect to the property in
8 accordance with this subsection. This subsection does not
9 invalidate an annexation that was effective on or before May 15,
10 2025.
11 SECTION 8. IC 36-4-3-5.6 IS ADDED TO THE INDIANA CODE
12 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
13 UPON PASSAGE]: Sec. 5.6. (a) This section applies only to an
14 annexation for which an annexation ordinance is adopted after
15 May 14, 2025.
16 (b) A waiver or release of the right of remonstrance by a
17 landowner or successor in title is void and may not be considered
18 or counted as a valid signature on a petition in favor of annexation
19 under section 5, 5.1, or 5.5 of this chapter.
20 (c) If, with regard to a signature on a petition for annexation
21 under section 5, 5.1, or 5.5 of this chapter:
22 (1) the validity of a signature is uncertain; and
23 (2) this section does not establish a standard to be applied in
24 the case;
25 a reasonable doubt must be resolved in favor of the validity of the
26 signature.
27 (d) Whenever the name of an individual, as printed or signed,
28 contains a minor variation from the name of the individual as set
29 forth in the relevant county records, the signature is considered
30 valid.
31 (e) Whenever the residence address or mailing address of an
32 individual contains a minor variation from the residence address
33 or mailing address as set forth in the relevant county records, the
signature is considered valid.34
35 (f) If the residence address or mailing address of an individual
36 contains a substantial variation from the residence address or
37 mailing address as set forth in the relevant county records, the
38 signature is considered invalid.
39 (g) If the signature of an individual does not substantially
40 conform with the signature of the individual as set forth in the
41 relevant county records, the signature is considered invalid. In
42 determining whether a signature substantially conforms with the
HB 1362—LS 7347/DI 116 12
1 signature in the relevant county records, consideration shall be
2 given to whether that lack of conformity may reasonably be
3 attributed to the age, disability, or impairment of the individual.
4 SECTION 9. IC 36-4-3-7, AS AMENDED BY THE TECHNICAL
5 CORRECTIONS BILL OF THE 2025 GENERAL ASSEMBLY, IS
6 AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON
7 PASSAGE]: Sec. 7. (a) After an ordinance is adopted under section 3,
8 4, 5, 5.1, or 5.2 of this chapter, it must be published in the manner
9 prescribed by IC 5-3-1.
10 (b) This subsection applies only to an annexation for which an
11 annexation ordinance is adopted before May 15, 2025. Except as
12 provided in subsection (b), (c), (d), or (e), in the absence of
13 remonstrance and appeal under section 11 or 15.5 of this chapter, the
14 ordinance takes effect at least ninety (90) days after its publication and
15 upon the filing required by section 22(a) of this chapter.
16 (c) An annexation ordinance takes effect as follows:
17 (1) This subdivision applies to an annexation under section 5
18 of this chapter. Except as provided in subsection (e), in the
19 absence of an appeal under section 15.5 of this chapter, the
20 annexation ordinance takes effect at least ninety (90) days
21 after its publication and upon the filing under section 22(a) of
22 this chapter.
23 (2) This subdivision applies to an annexation under section 5.1
24 of this chapter. Except as provided in subsection (e), in the
25 absence of an appeal under section 15.5 of this chapter, the
26 ordinance takes effect at least thirty (30) days after the
27 adoption of the ordinance and upon the filing under section
28 22(a) of this chapter.
29 (3) This subdivision applies to an annexation under section 5.5
30 of this chapter. Except as provided in subsection (e), if a final
31 and unappealable judgment under section 12 or 15.5 of this
32 chapter is entered in favor of the annexation, the annexation
33 is effective upon the filing under section 22(a) of this chapter.
34 (4) This subdivision applies to an annexation under section 7.1
35 of this chapter for which an annexation ordinance is adopted
36 after May 14, 2025. If a final and unappealable judgment
37 under section 12 or 15.5 of this chapter is entered in favor of
38 the annexation, the annexation is effective upon the filing
39 under section 22(a) of this chapter.
40 (5) This subdivision applies to an annexation under section 7.2
41 of this chapter. In the absence of an appeal under section 15.5
42 of this chapter, the annexation ordinance takes effect at least
HB 1362—LS 7347/DI 116 13
1 thirty (30) days after its publication and upon the filing under
2 section 22(a) of this chapter.
3 (b) (d) For the purposes of this section, territory that has been:
4 (1) added to an existing fire protection district under
5 IC 36-8-11-11; or
6 (2) approved by ordinance of the county legislative body to be
7 added to an existing fire protection district under IC 36-8-11-11,
8 notwithstanding that the territory's addition to the fire protection
9 district has not yet taken effect;
10 shall be considered a part of the fire protection district as of the date
11 that the fire protection district was originally established.
12 (c) (e) This subsection applies only to a fire protection district
13 established after July 1, 1987. This subsection does not apply to an
14 annexation under subsection (g). Whenever a municipality annexes
15 territory, all or part of which lies within a fire protection district
16 (IC 36-8-11), the annexation ordinance, in the absence of remonstrance
17 and appeal under section 11 or 15.5 of this chapter (in the case of an
18 annexation for which an annexation ordinance is adopted before
19 May 15, 2025), or in the absence of a hearing or an appeal under
20 section 12 or 15.5 of this chapter (in the case of an annexation for
21 which an annexation ordinance is adopted after May 14, 2025),
22 takes effect the second January 1 that follows the date the ordinance is
23 adopted and upon the filing required by section 22(a) of this chapter.
24 The municipality shall:
25 (1) provide fire protection to that territory beginning the date the
26 ordinance is effective; and
27 (2) send written notice to the fire protection district of the date the
28 municipality will begin to provide fire protection to the annexed
29 territory within ten (10) days of the date the ordinance is adopted.
30 (d) (f) This subsection applies only to a fire protection district
31 established after July 1, 1987. This subsection does not apply to an
32 annexation under subsection (g). If the fire protection district from
33 which a municipality annexes territory is indebted or has outstanding
34 unpaid bonds or other obligations at the time the annexation is
35 effective, the municipality is liable for and shall pay that indebtedness
36 in the same ratio as the assessed valuation of the property in the
37 annexed territory (that is part of the fire protection district) bears to the
38 assessed valuation of all property in the fire protection district, as
39 shown by the most recent assessment for taxation before the
40 annexation, unless the assessed property within the municipality is
41 already liable for the indebtedness. The annexing municipality shall
42 pay its indebtedness under this section to the board of fire trustees. If
HB 1362—LS 7347/DI 116 14
1 the indebtedness consists of outstanding unpaid bonds or notes of the
2 fire protection district, the payments to the board of fire trustees shall
3 be made as the principal or interest on the bonds or notes becomes due.
4 (e) This subsection applies to an annexation initiated by property
5 owners under section 5.1 of this chapter in which all property owners
6 within the area to be annexed petition the municipality to be annexed.
7 Subject to subsection (c), and in the absence of an appeal under section
8 15.5 of this chapter, an annexation ordinance takes effect at least thirty
9 (30) days after its publication and upon the filing required by section
10 22(a) of this chapter.
11 (f) (g) Whenever a municipality annexes territory that lies within a
12 fire protection district that has a total net assessed value (as determined
13 by the county auditor) of more than one billion dollars
14 ($1,000,000,000) on the date the annexation ordinance is adopted:
15 (1) the annexed area shall remain a part of the fire protection
16 district after the annexation takes effect; and
17 (2) the fire protection district shall continue to provide fire
18 protection services to the annexed area.
19 The municipality shall not tax the annexed territory for fire protection
20 services. The annexing municipality shall establish a special fire fund
21 for all fire protection services that are provided by the municipality
22 within the area of the municipality that is not within the fire protection
23 district, and which shall not be assessed to the annexed special taxing
24 district. The annexed territory that lies within the fire protection district
25 shall continue to be part of the fire protection district special taxing
26 district.
27 SECTION 10. IC 36-4-3-7.1, AS AMENDED BY P.L.104-2022,
28 SECTION 156, IS AMENDED TO READ AS FOLLOWS
29 [EFFECTIVE UPON PASSAGE]: Sec. 7.1. (a) An ordinance adopted
30 under section 4 or 5.1 of this chapter that meets the conditions set
31 forth in subsection (b) takes effect as follows:
32 (1) In the case of an annexation for which an annexation
33 ordinance was adopted before May 15, 2025, the ordinance
34 takes effect immediately:
35 (A) upon the expiration of the remonstrance and appeal period
36 under section 11, 11.1, or 15.5 of this chapter; and
37 (B) after the publication, filing, and recording required by
38 section 22(a) of this chapter. if all of the following conditions
39 are met:
40 (2) In the case of an annexation for which an annexation
41 ordinance was adopted after May 14, 2025, the ordinance
42 takes effect as set forth in section 7(c)(4) of this chapter.
HB 1362—LS 7347/DI 116 15
1 (b) This section applies to an annexation that meets all of the
2 following conditions:
3 (1) The annexed territory has no population.
4 (2) Ninety percent (90%) of the total assessed value of the land
5 for property tax purposes has one (1) owner.
6 (3) The annexation is required to fulfill an economic development
7 incentive package and to retain an industry through various local
8 incentives, including urban enterprise zone benefits.
9 SECTION 11. IC 36-4-3-7.2, AS AMENDED BY THE
10 TECHNICAL CORRECTIONS BILL OF THE 2025 GENERAL
11 ASSEMBLY, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
12 UPON PASSAGE]: Sec. 7.2. (a) This section applies to an annexation
13 that satisfies all of the following:
14 (1) The annexation ordinance is adopted after December 31,
15 2020.
16 (2) The annexation is initiated by property owners under section
17 5.1 of this chapter in which all property owners within the
18 annexation territory petition the municipality to be annexed.
19 (3) All or part of the annexation territory is within a fire
20 protection district that was established after July 1, 1987.
21 (4) At least a majority of the members of the board of trustees of
22 the fire protection district adopt a resolution consenting to the
23 annexation.
24 (5) The portion of the annexation territory located within the fire
25 protection district constitutes less than three percent (3%) of the
26 total net assessed value (as determined by the county auditor) of
27 the fire protection district on the date the annexation ordinance is
28 adopted.
29 (b) Section 7(b), 7(c), 7(d), and 7(e) 7(f) of this chapter apply to an
30 annexation under this section.
31 (c) Section 7(a), 7(d), 7(b) 7(f), and 7(g) of this chapter do not apply
32 to an annexation under this section.
33 (d) After an annexation ordinance is adopted, the ordinance must be
34 published in the manner prescribed by IC 5-3-1. In the absence of an
35 appeal under section 15.5 of this chapter, the annexation ordinance
36 takes effect at least thirty (30) days after its publication and upon the
37 filing required by section 22(a) of this chapter. The annexation
38 ordinance takes effect as set forth in section 7(c)(5) of this chapter.
39 SECTION 12. IC 36-4-3-11, AS AMENDED BY P.L.206-2016,
40 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
41 UPON PASSAGE]: Sec. 11. (a) This subsection applies only to an
42 annexation for which an annexation ordinance was adopted before July
HB 1362—LS 7347/DI 116 16
1 1, 2015. Except as provided in section 5.1(i) of this chapter (as in
2 effect on July 1, 2015) and subsections subsection (e), and (f),
3 whenever territory is annexed by a municipality under this chapter, the
4 annexation may be appealed by filing with the circuit or superior court
5 of a county in which the annexed territory is located a written
6 remonstrance signed by:
7 (1) at least sixty-five percent (65%) of the owners of land in the
8 annexed territory; or
9 (2) the owners of more than seventy-five percent (75%) in
10 assessed valuation of the land in the annexed territory.
11 The remonstrance must be filed within ninety (90) days after the
12 publication of the annexation ordinance under section 7 of this chapter,
13 must be accompanied by a copy of that ordinance, and must state the
14 reason why the annexation should not take place.
15 (b) This subsection applies only to an annexation for which an
16 annexation ordinance was adopted before July 1, 2015. On receipt of
17 the remonstrance, the court shall determine whether the remonstrance
18 has the necessary signatures. In determining the total number of
19 landowners of the annexed territory and whether signers of the
20 remonstrance are landowners, the names appearing on the tax duplicate
21 for that territory constitute prima facie evidence of ownership. Only
22 one (1) person having an interest in each single property, as evidenced
23 by the tax duplicate, is considered a landowner for purposes of this
24 section.
25 (c) This subsection applies only to an annexation for which an
26 annexation ordinance was adopted before July 1, 2015. If the court
27 determines that the remonstrance is sufficient, the court shall fix a time,
28 within sixty (60) days after the court's determination, for a hearing on
29 the remonstrance. Notice of the proceedings, in the form of a summons,
30 shall be served on the annexing municipality. The municipality is the
31 defendant in the cause and shall appear and answer.
32 (d) This subsection applies only to an annexation for which an
33 annexation ordinance was adopted after June 30, 2015, and before
34 May 15, 2025. If the requirements of section 11.3(c) or (after
35 December 31, 2016) section 11.4 of this chapter are met, the
36 annexation may be appealed by filing with the circuit or superior court
37 of a county in which the annexed territory is located:
38 (1) the signed remonstrances filed with the county auditor;
39 (2) the county auditor's certification under section 11.2(i) of this
40 chapter;
41 (3) the annexation ordinance; and
42 (4) a statement of the reason why the annexation should not take
HB 1362—LS 7347/DI 116 17
1 place.
2 The remonstrance must be filed with the court not later than fifteen
3 (15) business days after the date the county auditor files the certificate
4 with the legislative body under section 11.2(i) of this chapter. After a
5 remonstrance petition is filed with the court, any person who signed a
6 remonstrance may file with the court a verified, written revocation of
7 the person's opposition to the annexation.
8 (e) If an annexation is initiated by property owners under section 5.1
9 of this chapter and all property owners within the area to be annexed
10 petition the municipality to be annexed, a remonstrance to the
11 annexation may not be filed under this section.
12 (f) (e) This subsection applies only to an annexation for which an
13 annexation ordinance is adopted before July 1, 2015. This subsection
14 applies if:
15 (1) the territory to be annexed consists of not more than one
16 hundred (100) parcels; and
17 (2) eighty percent (80%) of the boundary of the territory proposed
18 to be annexed is contiguous to the municipality.
19 An annexation may be appealed by filing with the circuit or superior
20 court of a county in which the annexed territory is located a written
21 remonstrance signed by at least seventy-five percent (75%) of the
22 owners of land in the annexed territory as determined under subsection
23 (b).
24 SECTION 13. IC 36-4-3-11.1, AS ADDED BY P.L.228-2015,
25 SECTION 13, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
26 UPON PASSAGE]: Sec. 11.1. (a) This section applies only to an
27 annexation ordinance adopted after June 30, 2015, and before May 15,
28 2025.
29 (b) After a municipality adopts an annexation ordinance in
30 accordance with all applicable notice and hearing requirements under
31 this chapter, the annexation may not proceed unless the annexing
32 municipality completes the procedures set forth in this section.
33 (c) The proper officers of the municipality must give notice of the
34 applicability of the remonstrance process by providing notice by:
35 (1) publication in accordance with IC 5-3-1; and
36 (2) first class mail or certified mail with return receipt requested,
37 or any other means of delivery that includes a return receipt;
38 to the circuit court clerk and to owners of real property described in
39 section 2.2 of this chapter. Notice under this section must be published
40 and mailed or delivered on the same date that notice of the adoption of
41 the annexation ordinance is published under section 7 of this chapter.
42 (d) The notice of the applicability of the remonstrance process under
HB 1362—LS 7347/DI 116 18
1 subsection (c) must state the following:
2 (1) Any owners of real property within the area proposed to be
3 annexed who want to remonstrate against the proposed
4 annexation must complete and file remonstrance petitions in
5 compliance with this chapter. The notice must state:
6 (A) that remonstrance petitions must be filed not later than
7 ninety (90) days after the date that notice of the adoption of the
8 annexation ordinance was published under section 7 of this
9 chapter; and
10 (B) the last date in accordance with clause (A) that
11 remonstrance petitions must be filed with the county auditor
12 to be valid.
13 (2) A remonstrance petition may be signed at the locations
14 provided by the municipality under subsection (e). The notice
15 must provide the following information regarding each location:
16 (A) The address of the location.
17 (B) The dates and hours during which a remonstrance petition
18 may be signed at the location.
19 (e) Beginning the day after publication of the notice under
20 subsection (c) and ending not later than ninety (90) days after
21 publication of the notice under subsection (c), the municipality shall
22 provide both of the following:
23 (1) At least one (1) location in the offices of the municipality
24 where a person may sign a remonstrance petition during regular
25 business hours.
26 (2) At least one (1) additional location that is available for at least
27 five (5) days, where a person may sign a remonstrance petition.
28 The location must meet the following requirements:
29 (A) The location must be in a public building:
30 (i) owned or leased by the state or a political subdivision,
31 including a public library, community center, or parks and
32 recreation building; and
33 (ii) located within the boundaries of the municipality or the
34 annexation territory.
35 (B) The location must be open according to the following:
36 (i) On a day that the location is open on a weekday, the
37 location must be open at a minimum from 5 p.m. to 9 p.m.
38 (ii) On a day that the location is open on a Saturday or
39 Sunday, the location must be open at least four (4) hours
40 during the period from 9 a.m. to 5 p.m.
41 (f) An additional location may not be open on a day that is a legal
42 holiday. At any location and during the hours that a remonstrance
HB 1362—LS 7347/DI 116 19
1 petition may be signed, the municipality shall have a person present:
2 (1) to witness the signing of remonstrance petitions; and
3 (2) who shall swear and affirm before a notary public that the
4 person witnessed each person sign the remonstrance petition.
5 SECTION 14. IC 36-4-3-11.2, AS AMENDED BY P.L.206-2016,
6 SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
7 UPON PASSAGE]: Sec. 11.2. (a) This section applies only to an
8 annexation ordinance adopted after June 30, 2015, and before May 15,
9 2025.
10 (b) A remonstrance petition may be filed by an owner of real
11 property that:
12 (1) is within the area to be annexed;
13 (2) was not exempt from property taxes under IC 6-1.1-10 or any
14 other state law for the immediately preceding year; and
15 (3) is not subject to a valid waiver of remonstrance.
16 (c) A remonstrance petition must comply with the following in order
17 to be effective:
18 (1) Each signature on a remonstrance petition must be dated, and
19 the date of the signature may not be earlier than the date on which
20 the remonstrance forms may be issued by the county auditor
21 under subsection (e)(7).
22 (2) Each person who signs a remonstrance petition must indicate
23 the address of the real property owned by the person in the area
24 to be annexed.
25 (3) A remonstrance petition must be verified in compliance with
26 subsection (e).
27 (d) The state board of accounts shall design the remonstrance forms
28 to be used solely in the remonstrance process described in this section.
29 The state board of accounts shall provide the forms to the county
30 auditor in an electronic format that permits the county auditor to copy
31 or reproduce the forms using:
32 (1) the county auditor's own equipment; or
33 (2) a commercial copying service.
34 The annexing municipality shall reimburse the county auditor for the
35 cost of reproducing the remonstrance forms.
36 (e) The county auditor's office shall issue remonstrance forms
37 accompanied by instructions detailing all of the following
38 requirements:
39 (1) The closing date for the remonstrance period.
40 (2) Only one (1) person having an interest in each single property
41 as evidenced by the tax duplicate is considered an owner of
42 property and may sign a remonstrance petition. A person is
HB 1362—LS 7347/DI 116 20
1 entitled to sign a petition only one (1) time in a remonstrance
2 process, regardless of whether the person owns more than one (1)
3 parcel of real property.
4 (3) An individual may not be:
5 (A) compensated for; or
6 (B) reimbursed for expenses incurred in;
7 circulating a remonstrance petition and obtaining signatures.
8 (4) The remonstrance petition may be executed in several
9 counterparts, the total of which constitutes the remonstrance
10 petition. An affidavit of the person circulating a counterpart must
11 be attached to the counterpart. The affidavit must state that each
12 signature appearing on the counterpart was affixed in the person's
13 presence and is the true and lawful signature of the signer. The
14 affidavit must be notarized.
15 (5) A remonstrance petition that is not executed in counterparts
16 must be verified by the person signing the petition in the manner
17 prescribed by the state board of accounts and notarized.
18 (6) A remonstrance petition may be delivered to the county
19 auditor's office in person or by:
20 (A) certified mail, return receipt requested; or
21 (B) any other means of delivery that includes a return receipt.
22 The remonstrance petition must be postmarked not later than the
23 closing date for the remonstrance period.
24 (7) The county auditor's office may not issue a remonstrance
25 petition earlier than the day that notice is published under section
26 11.1 of this chapter. The county auditor's office shall certify the
27 date of issuance on each remonstrance petition. Any person may
28 pick up additional copies of the remonstrance petition to
29 distribute to other persons.
30 (8) A person who signs a remonstrance petition may withdraw the
31 person's signature from a remonstrance petition before a
32 remonstrance petition is filed with the county auditor by filing a
33 verified request to remove the person's name from the
34 remonstrance petition. Names may not be added to a
35 remonstrance petition after the remonstrance petition is filed with
36 the county auditor.
37 (f) The county auditor shall prepare and update weekly a list of the
38 persons who have signed a remonstrance petition. The list must include
39 a statement that the list includes all persons who have signed a
40 remonstrance petition as of a particular date, and does not represent a
41 list of persons certified by the county auditor as actual landowners in
42 the annexation territory using the auditor's current tax records under
HB 1362—LS 7347/DI 116 21
1 subsection (i). The county auditor shall post the list in the office of the
2 county auditor. The list is a public record under IC 5-14-3.
3 (g) Not later than five (5) business days after receiving the
4 remonstrance petition, the county auditor shall submit a copy of the
5 remonstrance petition to the legislative body of the annexing
6 municipality.
7 (h) Not later than fifteen (15) business days after the legislative
8 body of the annexing municipality receives a copy of the remonstrance
9 petition from the county auditor, the annexing municipality shall
10 provide documentation to the county auditor regarding any valid waiver
11 of the right of remonstrance that exists on the property within the
12 annexation territory.
13 (i) Not later than fifteen (15) business days after receiving the
14 documentation regarding any valid waiver of the right of remonstrance
15 from the annexing municipality under subsection (h), if any, the county
16 auditor's office shall make a final determination of the number of
17 owners of real property within the territory to be annexed:
18 (1) who signed the remonstrance; and
19 (2) whose property is not subject to a valid waiver of the right of
20 remonstrance;
21 using the auditor's current tax records as provided in section 2.2 of this
22 chapter. The county auditor shall file a certificate with the legislative
23 body of the annexing municipality certifying the number of property
24 owners not later than five (5) business days after making the
25 determination.
26 SECTION 15. IC 36-4-3-11.3, AS ADDED BY P.L.228-2015,
27 SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
28 UPON PASSAGE]: Sec. 11.3. (a) This section applies only to an
29 annexation ordinance adopted after June 30, 2015, and before May 15,
30 2025.
31 (b) An annexation ordinance is void if a written remonstrance
32 petition is signed by one (1) of the following:
33 (1) At least sixty-five percent (65%) of the owners of land in the
34 annexed territory. An owner of land may not:
35 (A) be counted in calculating the total number of owners of
36 land in the annexation territory; or
37 (B) have the owner's signature counted on a remonstrance;
38 with regard to any single property that an owner has an interest in
39 that was exempt from property taxes under IC 6-1.1-10 or any
40 other state law for the immediately preceding year.
41 (2) The owners of at least eighty percent (80%) in assessed
42 valuation of the land in the annexed territory. Land that was
HB 1362—LS 7347/DI 116 22
1 exempt from property taxes under IC 6-1.1-10 or any other state
2 law for the immediately preceding year may not be included in
3 calculating the total assessed valuation of the land in the
4 annexation territory. The court may not count the owner's
5 signature on a remonstrance with regard to any single property
6 that the owner has an interest in that was exempt from property
7 taxes under IC 6-1.1-10 or any other state law for the immediately
8 preceding year.
9 (c) The annexation may be appealed to the court under section 11
10 of this chapter, if a written remonstrance is signed by one (1) of the
11 following:
12 (1) At least fifty-one percent (51%) but less than sixty-five
13 percent (65%) of the owners of land. An owner of land may not:
14 (A) be counted in calculating the total number of owners of
15 land in the annexation territory; or
16 (B) have the owner's signature counted on a remonstrance;
17 with regard to any single property that the owner has an interest
18 in that was exempt from property taxes under IC 6-1.1-10 or any
19 other state law for the immediately preceding year.
20 (2) The owners of at least sixty percent (60%) but less than eighty
21 percent (80%) in assessed valuation of land in the annexed
22 territory. Land that was exempt from property taxes under
23 IC 6-1.1-10 or any other state law for the immediately preceding
24 year may not be included in calculating the total assessed
25 valuation of the land in the annexation territory. The court may
26 not count an owner's signature on a remonstrance with regard to
27 any single property that the owner has an interest in that was
28 exempt from property taxes under IC 6-1.1-10 or any other state
29 law for the immediately preceding year.
30 SECTION 16. IC 36-4-3-11.4, AS AMENDED BY THE
31 TECHNICAL CORRECTIONS BILL OF THE 2025 GENERAL
32 ASSEMBLY, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
33 UPON PASSAGE]: Sec. 11.4. (a) This section applies only to an
34 annexation that the meets all of the following requirements:
35 (1) The annexation ordinance is adopted after December 31,
36 2016, and before May 15, 2025.
37 (2) Notwithstanding the contiguity requirements of section 1.5 of
38 this chapter, at least one-tenth (1/10) of the aggregate external
39 boundaries of the territory sought to be annexed coincides with
40 the boundaries of:
41 (A) the municipality; and
42 (B) the site of an economic development project.
HB 1362—LS 7347/DI 116 23
1 (b) As used in this section, "economic development project" means
2 any project developed by the municipality that meets all of the
3 following requirements:
4 (1) The annexing municipality determines that the project will:
5 (A) promote significant opportunities for the gainful
employment of its citizens;6
7 (B) attract a major new business enterprise to the municipality;
8 or
9 (C) retain or expand a significant business enterprise within
10 the municipality.
11 (2) The project involves expenditures by the annexing
12 municipality for any of the following:
13 (A) Land acquisition, interests in land, site improvements,
14 infrastructure improvements, buildings, or structures.
15 (B) Rehabilitation, renovation, and enlargement of buildings
16 and structures.
17 (C) Machinery, equipment, furnishings, or facilities.
18 (D) Substance removal or remedial action.
19 (c) Notwithstanding section 11.3(b) of this chapter, even if a
20 remonstrance has enough signatures to satisfy the requirements of
21 section 11.3(b) of this chapter, the annexation ordinance is not void and
22 may be appealed to the court under section 11 of this chapter, if all of
the following requirements are met:23
24 (1) The economic development project site needs the following
25 capital services that the municipality is lawfully able to provide:
26 (A) water;
27 (B) sewer;
28 (C) gas; or
29 (D) any combination of the capital services described in
30 clauses (A) through (C).
31 (2) The municipality finds that it is in the municipality's best
32 interest to annex the annexation territory in order to extend,
33 construct, or operate the capital services that are provided to the
34 economic development project site.
35 (3) Before the date the annexation ordinance is adopted, a
36 taxpayer whose business will occupy the economic development
37 project site has done at least one (1) of the following:
38 (A) Filed a statement of benefits under IC 6-1.1-12.1 with the
39 designating body for the annexing municipality for a deduction
40 or abatement.
41 (B) Entered into an agreement with the Indiana economic
42 development corporation for a credit under IC 6-3.1-13.
HB 1362—LS 7347/DI 116 24
1 (d) If the economic development project:
2 (1) has not commenced within twelve (12) months after the date
the annexation 3 ordinance is adopted; or
4 (2) is not completed within thirty-six (36) months after the date
5 the annexation ordinance is adopted;
6 the annexation territory is disannexed from the municipality and reverts
7 to the jurisdiction of the unit having jurisdiction before the annexation.
8 For purposes of this subsection, a an economic development project is
9 considered to have commenced on the day that the physical erection,
10 installation, alteration, repair, or remodeling of a building or structure
11 commences on the site of the economic development project.
12 SECTION 17. IC 36-4-3-11.5 IS AMENDED TO READ AS
13 FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 11.5. (a) A
14 landowner in an unincorporated area is not required to grant a
15 municipality a waiver against remonstrance as a condition of
16 connection to a sewer or water service if all of the following conditions
17 apply:
18 (1) The landowner is required to connect to the sewer or water
19 service because a person other than the landowner has polluted or
20 contaminated the area.
21 (2) A person other than the landowner or the municipality has
22 paid the cost of connection to the service.
23 (b) Notwithstanding any other law, a waiver against
24 remonstrance is effective and binding on a landowner or a
25 successor in title only with regard to an annexation for which the
26 annexation ordinance was adopted before May 15, 2025.
27 SECTION 18. IC 36-4-3-11.6, AS ADDED BY P.L.228-2015,
28 SECTION 17, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
29 UPON PASSAGE]: Sec. 11.6. (a) This section applies to a
30 remonstrance filed after June 30, 2015, and before May 15, 2025.
31 (b) If the court orders an annexation not to take place after a hearing
32 under section 11 of this chapter, the remonstrators shall be reimbursed
33 by the annexing municipality for any reasonable attorney's fees,
34 including litigation expenses and appeal costs:
35 (1) that are incurred:
36 (A) after the date the annexation ordinance is adopted; and
37 (B) in remonstrating against the annexation; and
38 (2) not to exceed thirty-seven thousand five hundred dollars
39 ($37,500).
40 SECTION 19. IC 36-4-3-11.7, AS AMENDED BY P.L.257-2019,
41 SECTION 112, IS AMENDED TO READ AS FOLLOWS
42 [EFFECTIVE UPON PASSAGE]: Sec. 11.7. (a) This subsection
HB 1362—LS 7347/DI 116 25
1 applies to any deed recorded after June 30, 2015. This subsection
2 applies only to property that is subject to a remonstrance waiver. A
3 municipality shall, within a reasonable time after the recording of a
4 deed to property located within the municipality, provide written notice
5 to the property owner that a waiver of the right of remonstrance exists
6 with respect to the property.
7 (b) A remonstrance waiver executed before July 1, 2003, is void.
8 This subsection does not invalidate an annexation that was effective on
9 or before July 1, 2019.
10 (c) A remonstrance waiver executed after June 30, 2003, and before
11 July 1, 2019, is subject to the following:
12 (1) The waiver is void unless the waiver was recorded:
13 (A) before January 1, 2020; and
14 (B) with the county recorder of the county where the property
15 subject to the waiver is located.
16 (2) A waiver that is not void under subdivision (1) expires not
17 later than fifteen (15) years after the date the waiver is executed.
18 This subsection does not invalidate an annexation that was effective on
19 or before July 1, 2019.
20 (d) A remonstrance waiver executed after June 30, 2019, is subject
21 to the following: (1) The waiver is void unless the waiver is must be
22 recorded (A) not later than thirty (30) business days after the date the
23 waiver was executed and (B) with the county recorder of the county
24 where the property subject to the waiver is located. (2) A waiver that
25 is not void under subdivision (1) expires not later than fifteen (15)
26 years after the date the waiver is executed. This subsection does not
27 invalidate an annexation that was effective on or before July 1, 2019.
28 (e) Notwithstanding any other law, a remonstrance waiver is
29 effective and binding on a landowner or a successor in title only
30 with regard to an annexation for which the annexation ordinance
31 was adopted before May 15, 2025.
32 SECTION 20. IC 36-4-3-12, AS AMENDED BY P.L.104-2022,
33 SECTION 158, IS AMENDED TO READ AS FOLLOWS
34 [EFFECTIVE UPON PASSAGE]: Sec. 12. The circuit or superior court
35 shall:
36 (1) on the date fixed under:
37 (A) section 11 of this chapter (in the case of an annexation
38 for which an annexation ordinance is adopted before May
39 15, 2025), hear and determine the remonstrance without a jury;
40 or
41 (B) section 5.5 of this chapter (in the case of an annexation
42 for which an annexation ordinance is adopted after May
HB 1362—LS 7347/DI 116 26
1 14, 2025), hear and determine the petition without a jury;
2 and
3 (2) without delay, enter judgment on the question of the
4 annexation according to the evidence that either party may
5 introduce.
6 SECTION 21. IC 36-4-3-13, AS AMENDED BY P.L.70-2022,
7 SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
8 UPON PASSAGE]: Sec. 13. (a) Except as provided in subsection (e),
9 at the hearing under section 12 of this chapter, the court shall order a
10 proposed annexation to take place if the following requirements are
11 met:
12 (1) The requirements of either subsection (b) or (c).
13 (2) The requirements of subsection (d).
14 (3) The requirements of subsection (i) (in the case of an
15 annexation for which an annexation ordinance is adopted
16 before May 15, 2025).
17 (b) The requirements of this subsection are met if the evidence
18 establishes the following:
19 (1) That the territory sought to be annexed is contiguous to the
20 municipality.
21 (2) One (1) of the following:
22 (A) The resident population density of the territory sought to
23 be annexed is at least three (3) persons per acre.
24 (B) Sixty percent (60%) of the territory is subdivided.
25 (C) The territory is zoned for commercial, business, or
26 industrial uses.
27 (c) The requirements of this subsection are met if the evidence
28 establishes one (1) of the following:
29 (1) That the territory sought to be annexed is:
30 (A) contiguous to the municipality as required by section 1.5
31 of this chapter, except that at least one-fourth (1/4), instead of
32 one-eighth (1/8), of the aggregate external boundaries of the
33 territory sought to be annexed must coincide with the
34 boundaries of the municipality; and
35 (B) needed and can be used by the municipality for its
36 development in the reasonably near future.
37 (2) This subdivision applies only to an annexation for which an
38 annexation ordinance is adopted after December 31, 2016, and
39 before May 15, 2025. That the territory sought to be annexed
40 involves an economic development project and the requirements
41 of section 11.4 of this chapter are met.
42 (3) The territory is described in section 5.2 of this chapter.
HB 1362—LS 7347/DI 116 27
1 (d) The requirements of this subsection are met if the evidence
2 establishes that the municipality has developed and adopted a written
3 fiscal plan and has established a definite policy, by resolution of the
4 legislative body as set forth in section 3.1 of this chapter. The fiscal
5 plan must show the following:
6 (1) The cost estimates of planned services to be furnished to the
7 territory to be annexed. The plan must present itemized estimated
8 costs for each municipal department or agency.
9 (2) The method or methods of financing the planned services. The
10 plan must explain how specific and detailed expenses will be
11 funded and must indicate the taxes, grants, and other funding to
12 be used.
13 (3) The plan for the organization and extension of services. The
14 plan must detail the specific services that will be provided and the
15 dates the services will begin.
16 (4) That planned services of a noncapital nature, including police
17 protection, fire protection, street and road maintenance, and other
18 noncapital services normally provided within the corporate
19 boundaries, will be provided to the annexed territory within one
20 (1) year after the effective date of annexation and that they will be
21 provided in a manner equivalent in standard and scope to those
22 noncapital services provided to areas within the corporate
23 boundaries regardless of similar topography, patterns of land use,
24 and population density.
25 (5) That services of a capital improvement nature, including street
26 construction, street lighting, sewer facilities, water facilities, and
27 storm water drainage facilities, will be provided to the annexed
28 territory within three (3) years after the effective date of the
29 annexation in the same manner as those services are provided to
30 areas within the corporate boundaries, regardless of similar
31 topography, patterns of land use, and population density, and in
32 a manner consistent with federal, state, and local laws,
33 procedures, and planning criteria.
34 (6) This subdivision applies to a fiscal plan prepared after June
35 30, 2015. The estimated effect of the proposed annexation on
36 taxpayers in each of the political subdivisions to which the
37 proposed annexation applies, including the expected tax rates, tax
38 levies, expenditure levels, service levels, and annual debt service
39 payments in those political subdivisions for four (4) years after
40 the effective date of the annexation.
41 (7) This subdivision applies to a fiscal plan prepared after June
42 30, 2015. The estimated effect the proposed annexation will have
HB 1362—LS 7347/DI 116 28
1 on municipal finances, specifically how municipal tax revenues
2 will be affected by the annexation for four (4) years after the
3 effective date of the annexation.
4 (8) This subdivision applies to a fiscal plan prepared after June
5 30, 2015. Any estimated effects on political subdivisions in the
6 county that are not part of the annexation and on taxpayers
7 located in those political subdivisions for four (4) years after the
8 effective date of the annexation.
9 (9) This subdivision applies to a fiscal plan prepared after June
10 30, 2015. A list of all parcels of property in the annexation
11 territory and the following information regarding each parcel:
12 (A) The name of the owner of the parcel.
13 (B) The parcel identification number.
14 (C) The most recent assessed value of the parcel.
15 (D) The existence of a known waiver of the right to
16 remonstrate on the parcel. This clause applies only to a fiscal
17 plan prepared after June 30, 2016, and before May 15, 2025.
18 (e) At the hearing under section 12 of this chapter with regard to
19 an annexation for which an annexation ordinance was adopted
20 before May 15, 2025, the court shall do the following:
21 (1) Consider evidence on the conditions listed in subdivision (2).
22 (2) Order a proposed annexation not to take place if the court
23 finds that all of the following conditions that are applicable to the
24 annexation exist in the territory proposed to be annexed:
25 (A) This clause applies only to an annexation for which an
26 annexation ordinance was adopted before July 1, 2015. The
27 following services are adequately furnished by a provider
28 other than the municipality seeking the annexation:
29 (i) Police and fire protection.
30 (ii) Street and road maintenance.
31 (B) The annexation will have a significant financial impact on
32 the residents or owners of land. The court may not consider:
33 (i) the personal finances; or
34 (ii) the business finances;
35 of a resident or owner of land. The personal and business
36 financial records of the residents or owners of land, including
37 state, federal, and local income tax returns, may not be subject
38 to a subpoena or discovery proceedings.
39 (C) The annexation is not in the best interests of the owners of
40 land in the territory proposed to be annexed as set forth in
41 subsection (f).
42 (D) This clause applies only to an annexation for which an
HB 1362—LS 7347/DI 116 29
1 annexation ordinance is adopted before July 1, 2015. One (1)
2 of the following opposes the annexation:
3 (i) At least sixty-five percent (65%) of the owners of land in
4 the territory proposed to be annexed.
5 (ii) The owners of more than seventy-five percent (75%) in
6 assessed valuation of the land in the territory proposed to be
7 annexed.
8 Evidence of opposition may be expressed by any owner of land
9 in the territory proposed to be annexed.
10 (E) This clause applies only to an annexation for which an
11 annexation ordinance is adopted after June 30, 2015, and
12 before May 15, 2025. One (1) of the following opposes the
13 annexation:
14 (i) At least fifty-one percent (51%) of the owners of land in
15 the territory proposed to be annexed.
16 (ii) The owners of more than sixty percent (60%) in assessed
17 valuation of the land in the territory proposed to be annexed.
18 The remonstrance petitions filed with the court under section
19 11 of this chapter are evidence of the number of owners of
20 land that oppose the annexation, minus any written revocations
21 of remonstrances that are filed with the court under section 11
22 of this chapter.
23 (F) This clause applies only to an annexation for which an
24 annexation ordinance is adopted before July 1, 2015. This
25 clause applies only to an annexation in which eighty percent
26 (80%) of the boundary of the territory proposed to be annexed
27 is contiguous to the municipality and the territory consists of
28 not more than one hundred (100) parcels. At least seventy-five
29 percent (75%) of the owners of land in the territory proposed
30 to be annexed oppose the annexation as determined under
31 section 11(b) of this chapter.
32 (f) This subsection applies only to an annexation for which an
33 annexation ordinance is adopted before May 15, 2025. The
34 municipality under subsection (e)(2)(C) bears the burden of proving
35 that the annexation is in the best interests of the owners of land in the
36 territory proposed to be annexed. In determining this issue, the court
37 may consider whether the municipality has extended sewer or water
38 services to the entire territory to be annexed:
39 (1) within the three (3) years preceding the date of the
40 introduction of the annexation ordinance; or
41 (2) under a contract in lieu of annexation entered into under
42 IC 36-4-3-21. section 21 of this chapter.
HB 1362—LS 7347/DI 116 30
1 The court may not consider the provision of water services as a result
2 of an order by the Indiana utility regulatory commission to constitute
3 the provision of water services to the territory to be annexed.
4 (g) The most recent:
5 (1) federal decennial census;
6 (2) federal special census;
7 (3) special tabulation; or
8 (4) corrected population count;
9 shall be used as evidence of resident population density for purposes
10 of subsection (b)(2)(A), but this evidence may be rebutted by other
11 evidence of population density.
12 (h) A municipality that prepares a fiscal plan after June 30, 2015,
13 must comply with this subsection. A municipality may not amend the
14 fiscal plan after the date that:
15 (1) a remonstrance is filed with the court under section 11 of this
16 chapter (in the case of an annexation for which an annexation
17 ordinance was adopted before May 15, 2025); or
18 (2) a petition is filed with the court under section 5.5 of this
19 chapter (in the case of an annexation for which an annexation
20 ordinance was adopted after May 14, 2025);
21 unless amendment of the fiscal plan is consented to by at least
22 sixty-five percent (65%) of the persons who signed the remonstrance
23 or the petition.
24 (i) The municipality must submit proof that the municipality has
25 complied with:
26 (1) the outreach program requirements and notice requirements
27 of section 1.7 of this chapter; and
28 (2) the requirements of section 11.1 of this chapter (in the case of
29 an annexation for which an annexation ordinance was
30 adopted after June 30, 2015, and before May 15, 2025).
31 SECTION 22. IC 36-4-3-15, AS AMENDED BY P.L.228-2015,
32 SECTION 21, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
33 UPON PASSAGE]: Sec. 15. (a) The court's judgment under section 12
34 or 15.5 of this chapter must specify the annexation ordinance. on which
35 the remonstrance is based. The clerk of the court shall deliver a
36 certified copy of the final and unappealable judgment to the clerk of the
37 municipality. The clerk of the municipality shall:
38 (1) record the judgment in the clerk's ordinance record; and
39 (2) make a cross-reference to the record of the judgment on the
40 margin of the record of the annexation ordinance.
41 (b) If a final and unappealable judgment under section 12 or 15.5 of
42 this chapter is adverse to annexation, the municipality may not make
HB 1362—LS 7347/DI 116 31
1 further attempts to annex the territory or any part of the territory during
2 the four (4) years after the later of:
3 (1) the judgment of the circuit or superior court; or
4 (2) the date of the final disposition of all appeals to a higher court;
5 unless the annexation is petitioned for under section 5 or 5.1 of this
6 chapter.
7 (c) This subsection applies if a municipality repeals the annexation
8 ordinance:
9 (1) less than sixty-one (61) days after the publication of the
10 ordinance under section 7(a) of this chapter; and
11 (2) before the hearing commences:
12 (A) on the remonstrance under section 11(c) of this chapter (in
the 13 case of an annexation for which an annexation
14 ordinance is adopted before May 15, 2025); or
(B) on the petition under section 12 of this chapter (in the15
16 case of an annexation for which an annexation ordinance
17 is adopted after May 14, 2025).
18 A municipality may not make further attempts to annex the territory or
19 any part of the territory during the twelve (12) months after the date the
20 municipality repeals the annexation ordinance. This subsection does
21 not prohibit an annexation of the territory or part of the territory that is
22 petitioned for under section 5 or 5.1 of this chapter.
23 (d) This subsection applies if a municipality repeals the annexation
24 ordinance:
25 (1) at least sixty-one (61) days but not more than one hundred
26 twenty (120) days after the publication of the ordinance under
27 section 7(a) of this chapter; and
28 (2) before the hearing commences:
29 (A) on the remonstrance under section 11(c) of this chapter (in
30 the case of an annexation for which an annexation
31 ordinance is adopted before May 15, 2025); or
(B) on the petition under section 12 of this chapter (in the32
33 case of an annexation for which an annexation ordinance
34 is adopted after May 14, 2025).
35 A municipality may not make further attempts to annex the territory or
36 any part of the territory during the twenty-four (24) months after the
37 date the municipality repeals the annexation ordinance. This subsection
38 does not prohibit an annexation of the territory or part of the territory
39 that is petitioned for under section 5 or 5.1 of this chapter.
40 (e) This subsection applies if a municipality repeals the annexation
41 ordinance:
42 (1) either:
HB 1362—LS 7347/DI 116 32
1 (A) at least one hundred twenty-one (121) days after
2 publication of the ordinance under section 7(a) of this chapter
3 but before the hearing commences:
4 (i) on the remonstrance under section 11(c) of this chapter
5 (in the case of an annexation for which an annexation
6 ordinance is adopted before May 15, 2025); or
(ii) on the petition under section 12 of this chapter (in the7
8 case of an annexation for which an annexation ordinance
9 is adopted after May 14, 2025); or
10 (B) after the hearing commences:
11 (i) on the remonstrance as set forth in section 11(c) of this
12 chapter (in the case of an annexation for which an
13 annexation ordinance is adopted before May 15, 2025);
14 or
(ii) on the petition under section 12 of this chapter (in the15
16 case of an annexation for which an annexation ordinance
17 is adopted after May 14, 2025); and
18 (2) before the date of the judgment of the circuit or superior court
19 as set forth in subsection (b).
20 A municipality may not make further attempts to annex the territory or
21 any part of the territory during the forty-two (42) months after the date
22 the municipality repeals the annexation ordinance. This subsection
23 does not prohibit an annexation of the territory or part of the territory
24 that is petitioned for under section 5 or 5.1 of this chapter.
25 (f) An annexation is effective when the clerk of the municipality
26 complies with the filing requirement of section 22(a) of this chapter.
27 SECTION 23. IC 36-4-3-15.3, AS AMENDED BY P.L.156-2020,
28 SECTION 138, IS AMENDED TO READ AS FOLLOWS
29 [EFFECTIVE UPON PASSAGE]: Sec. 15.3. (a) As used in this
30 section, "prohibition against annexation" means that a municipality
31 may not make further attempts to annex certain territory or any part of
32 that territory.
33 (b) As used in this section, "settlement agreement" means a written
34 court approved settlement of a dispute involving annexation under this
35 chapter between a municipality and remonstrators.
36 (c) Under a settlement agreement between the annexing
37 municipality and either:
38 (1) seventy-five percent (75%) or more of all landowners
39 participating in the remonstrance; or
40 (2) the owners of more than seventy-five percent (75%) in
41 assessed valuation of the land owned by all landowners
42 participating in the remonstrance;
HB 1362—LS 7347/DI 116 33
1 the parties may mutually agree to a prohibition against annexation of
2 all or part of the territory by the municipality for a period not to exceed
3 twenty (20) years. The settlement agreement may address issues and
4 bind the parties to matters relating to the provision by a municipality
5 of planned services of a noncapital nature and services of a capital
6 improvement nature (as described in section 13(d) of this chapter), in
7 addition to a prohibition against annexation. The settlement agreement
8 is binding upon the successors, heirs, and assigns of the parties to the
9 agreement. However, the settlement agreement may be amended or
10 revised periodically on further agreement between the annexing
11 municipality and landowners who meet the qualifications of
12 subdivision (1) or (2).
13 (d) A settlement agreement executed after May 14, 2025, is void.
14 SECTION 24. IC 36-4-3-16 IS AMENDED TO READ AS
15 FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 16. (a) This
16 section does not apply to an annexation under:
17 (1) section 4(a)(2), 4(a)(3), 4(b), 4(h), or 4.1 of this chapter; or
18 (2) section 5.1 of this chapter, for which an annexation
19 ordinance is adopted after May 14, 2025.
20 (a) (b) Within one (1) year after the expiration of:
21 (1) the one (1) year period for implementation of planned services
22 of a noncapital nature under section 13(d)(4) of this chapter; or
23 (2) the three (3) year period for the implementation of planned
24 services of a capital improvement nature under section 13(d)(5)
25 of this chapter;
26 any person who pays taxes on property located within the annexed
27 territory may file a complaint alleging injury resulting from the failure
28 of the municipality to implement the plan. The complaint must name
29 the municipality as defendant and shall be filed with the circuit or
30 superior court of the county in which the annexed territory is located.
31 (b) (c) The court shall hear the case within sixty (60) days without
32 a jury. In order to be granted relief, the plaintiff must establish one (1)
33 of the following:
34 (1) That the municipality has without justification failed to
35 implement the plan required by section 13 of this chapter within
36 the specific time limit for implementation after annexation.
37 (2) That the municipality has not provided police protection, fire
38 protection, sanitary sewers, and water for human consumption
39 within the specific time limit for implementation, unless one (1)
40 of these services is being provided by a separate taxing district or
41 by a privately owned public utility.
42 (3) That the annexed territory is not receiving governmental and
HB 1362—LS 7347/DI 116 34
1 proprietary services substantially equivalent in standard and scope
2 to the services provided by the municipality to other areas of the
3 municipality, regardless of topography, patterns of land use, and
4 population density similar to the annexed territory.
5 (c) (d) The court may:
6 (1) grant an injunction prohibiting the collection of taxes levied
7 by the municipality on the plaintiff's property located in the
8 annexed territory;
9 (2) award damages to the plaintiff not to exceed one and
10 one-fourth (1 1/4) times the taxes collected by the municipality
11 for the plaintiff's property located in the annexed territory;
12 (3) order the annexed territory or any part of it to be disannexed
13 from the municipality;
14 (4) order the municipality to submit a revised fiscal plan for
15 providing the services to the annexed territory within time limits
16 set up by the court; or
17 (5) grant any other appropriate relief.
18 (d) (e) A change of venue from the county is not permitted for an
19 action brought under this section.
20 (e) (f) If the court finds for the plaintiff, the defendant shall pay all
21 court costs and reasonable attorney's fees as approved by the court.
22 (f) (g) The provisions of this chapter that apply to territory
23 disannexed by other procedures apply to territory disannexed under this
24 section.
25 SECTION 25. IC 36-4-3-22, AS AMENDED BY P.L.38-2021,
26 SECTION 84, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
27 UPON PASSAGE]: Sec. 22. (a) The clerk of the municipality shall file:
28 (1) each annexation ordinance:
29 (A) against which:
30 (A) (i) a remonstrance (in the case of an annexation for
31 which an annexation ordinance is adopted before May
32 15, 2025); or
33 (ii) an appeal;
34 has not been filed during the period permitted under this
35 chapter; or
36 (B) against which a remonstrance was filed without a
37 sufficient number of signatures to meet the requirements of
38 section 11.3(c) of this chapter, in the case of an annexation for
39 which an annexation ordinance was adopted after June 30,
40 2015, and before May 15, 2025; or
41 (2) the certified copy of a final and unappealable judgment
42 ordering an annexation to take place;
HB 1362—LS 7347/DI 116 35
1 with the county auditor, circuit court clerk, and board of registration (if
2 a board of registration exists) of each county in which the annexed
3 territory is located, the office of the secretary of state, and the office of
4 census data established by IC 2-5-1.1-12.2. The clerk of the
5 municipality shall record each annexation ordinance adopted under this
6 chapter in the office of the county recorder of each county in which the
7 annexed territory is located.
8 (b) The ordinance or judgment must be filed and recorded no later
9 than ninety (90) days after:
10 (1) the expiration of the period permitted for:
11 (A) a remonstrance (in the case of an annexation for which
12 an annexation ordinance is adopted before May 15, 2025);
13 or
14 (B) an appeal under section 15.5 of this chapter;
15 (2) the delivery of a certified order under section 15 of this
16 chapter; or
17 (3) the date the county auditor files the written certification with
18 the legislative body under section 11.2 of this chapter, in the case
19 of an annexation:
20 (A) described in subsection (a)(1)(B); and
21 (B) for which an annexation ordinance is adopted before
22 May 15, 2025.
23 (c) Failure to record the annexation ordinance as provided in
24 subsection (a) does not invalidate the ordinance.
25 (d) The county auditor shall forward a copy of any annexation
26 ordinance filed under this section to the following:
27 (1) The county highway department of each county in which the
28 lots or lands affected are located.
29 (2) The county surveyor of each county in which the lots or lands
30 affected are located.
31 (3) Each plan commission, if any, that lost or gained jurisdiction
32 over the annexed territory.
33 (4) The sheriff of each county in which the lots or lands affected
34 are located.
35 (5) The township trustee of each township that lost or gained
36 jurisdiction over the annexed territory.
37 (6) The office of the secretary of state.
38 (7) The office of census data established by IC 2-5-1.1-12.2.
39 (8) The department of local government finance, not later than
40 August 1, in the manner described by the department.
41 (e) The county auditor may require the clerk of the municipality to
42 furnish an adequate number of copies of the annexation ordinance or
HB 1362—LS 7347/DI 116 36
1 may charge the clerk a fee for photoreproduction of the ordinance. The
2 county auditor shall notify the office of the secretary of state and the
3 office of census data established by IC 2-5-1.1-12.2 of the date that the
4 annexation ordinance is effective under this chapter.
5 (f) The county auditor or county surveyor shall, upon determining
6 that an annexation ordinance has become effective under this chapter,
7 indicate the annexation upon the property taxation records maintained
8 in the office of the auditor or the office of the county surveyor.
9 SECTION 26. IC 36-4-7-7, AS AMENDED BY P.L.104-2022,
10 SECTION 162, IS AMENDED TO READ AS FOLLOWS
11 [EFFECTIVE UPON PASSAGE]: Sec. 7. (a) The fiscal officer shall
12 present the report of budget estimates to the city legislative body under
13 IC 6-1.1-17. After reviewing the report, the legislative body shall
14 prepare an ordinance fixing the rate of taxation for the ensuing budget
15 year and an ordinance making appropriations for the estimated
16 department budgets and other city purposes during the ensuing budget
17 year. The legislative body, in the appropriation ordinance, may reduce
18 any estimated item from the figure submitted in the report of the fiscal
19 officer, but it may increase an item only if the executive recommends
20 an increase. The legislative body shall promptly act on the
21 appropriation ordinance.
22 (b) In preparing the ordinances described in subsection (a) the
23 legislative body shall make an allowance for the cost of fire protection
24 to annexed territory described in IC 36-4-3-7(c), IC 36-4-3-7(e), for the
25 year fire protection is first offered to that territory.
26 SECTION 27. IC 36-9-22-2, AS AMENDED BY P.L.156-2020,
27 SECTION 148, IS AMENDED TO READ AS FOLLOWS
28 [EFFECTIVE UPON PASSAGE]: Sec. 2. (a) The power of the
29 municipal works board to fix the terms of a contract under this section
30 applies to contracts for the installation of sewage works that have not
31 been finally approved or accepted for full maintenance and operation
32 by the municipality on July 1, 1979.
33 (b) The works board of a municipality may contract with owners of
34 real property for the construction of sewage works within the
35 municipality or within four (4) miles outside its corporate boundaries
36 in order to provide service for the area in which the real property of the
37 owners is located. The contract must provide, for a period of not to
38 exceed fifteen (15) years, for the payment to the owners and their
39 assigns by any owner of real property who:
40 (1) did not contribute to the original cost of the sewage works;
41 and
42 (2) subsequently taps into, uses, or deposits sewage or storm
HB 1362—LS 7347/DI 116 37
1 waters in the sewage works or any lateral sewers connected to
2 them;
3 of a fair pro rata share of the cost of the construction of the sewage
4 works, subject to the rules of the board and notwithstanding any other
5 law relating to the functions of local governmental entities. However,
6 the contract does not apply to any owner of real property who is not a
7 party to the contract unless the contract or (after June 30, 2013) a
8 signed memorandum of the contract has been recorded in the office of
9 the recorder of the county in which the real property of the owner is
10 located before the owner taps into or connects to the sewers and
11 facilities. The board may provide that the fair pro rata share of the cost
12 of construction includes interest at a rate not exceeding the amount of
13 interest allowed on judgments, and the interest shall be computed from
14 the date the sewage works are approved until the date payment is made
15 to the municipality.
16 (c) The contract must include, as part of the consideration running
17 to the municipality, the release of the right of:
18 (1) the parties to the contract; and
19 (2) the successors in title of the parties to the contract;
20 to remonstrate against pending or future annexations by the
21 municipality of the area served by the sewage works. Any person
22 tapping into or connecting to the sewage works contracted for is
23 considered to waive the person's rights to remonstrate against the
24 annexation of the area served by the sewage works.
25 (d) Notwithstanding subsection (c) or (m), the works board of a
26 municipality may waive the provisions of subsection (c) or (m) in the
27 contract if:
28 (1) the works board considers a waiver of subsection (c) or (m)
29 to be in the best interests of the municipality; or
30 (2) the contract involves connection to the sewage works under
31 IC 36-9-22.5.
32 (e) This subsection does not affect any rights or liabilities accrued,
33 or proceedings begun before July 1, 2013. Those rights, liabilities, and
34 proceedings continue and shall be imposed and enforced under prior
35 law as if this subsection had not been enacted. For contracts executed
36 after June 30, 2013, if the release of the right to remonstrate is not void
37 under subsection (i), (j), or (k), or (l), the release is binding on a
38 successor in title to a party to the contract only if the successor in title:
39 (1) has actual notice of the release; or
40 (2) has constructive notice of the release because the contract, or
41 a signed memorandum of the contract stating the release, has been
42 recorded in the chain of title of the property.
HB 1362—LS 7347/DI 116 38
1 (f) Subsection (c) does not apply to a landowner if all of the
2 following conditions apply:
3 (1) The landowner is required to connect to the sewage works
4 because a person other than the landowner has polluted or
5 contaminated the area.
6 (2) The costs of extension of or connection to the sewage works
7 are paid by a person other than the landowner or the municipality.
8 (g) Subsection (c) does not apply to a landowner who taps into,
9 connects to, or is required to tap into or connect to the sewage works
10 of a municipality only because the municipality provides wholesale
11 sewage service (as defined in IC 8-1-2-61.7) to another municipality
12 that provides sewage service to the landowner.
13 (h) This subsection applies to any deed recorded after June 30,
14 2015. This subsection applies only to property that is subject to a
15 remonstrance waiver. A municipality shall provide written notice to
16 any successor in title to property within a reasonable time after the
17 deed is recorded, that a waiver of the right of remonstrance exists with
18 respect to the property.
19 (i) A remonstrance waiver executed on or before July 1, 2003, is
20 void. This subsection does not invalidate an annexation that was
21 effective on or before July 1, 2019.
22 (j) A remonstrance waiver executed after June 30, 2003, and not
23 later than June 30, 2019, is subject to the following:
24 (1) The waiver is void unless the waiver was recorded:
25 (A) before January 1, 2020; and
26 (B) with the county recorder of the county where the property
27 subject to the waiver is located.
28 (2) A waiver that is not void under subdivision (1) or subsection
29 (l) expires not later than fifteen (15) years after the date the
30 waiver is executed.
31 This subsection does not invalidate an annexation that was effective on
32 or before July 1, 2019.
33 (k) A remonstrance waiver executed after June 30, 2019, is subject
34 to the following: (1) The waiver is void unless the waiver is must be
35 recorded (A) not later than thirty (30) business days after the date the
36 waiver was executed and (B) with the county recorder of the county
37 where the property subject to the waiver is located. (2) A waiver that
38 is not void under subdivision (1) expires not later than fifteen (15)
39 years after the date the waiver is executed. This subsection does not
40 invalidate an annexation that was effective on or before July 1, 2019.
41 (l) Notwithstanding any other law, a remonstrance waiver is
42 effective and binding on a landowner or a successor in title to a
HB 1362—LS 7347/DI 116 39
1 party to the contract only with regard to an annexation for which
2 the annexation ordinance was adopted before May 15, 2025.
3 (m) This subsection applies after May 14, 2025. The contract
4 must include, as part of the consideration running to the
5 municipality, consent of:
6 (1) the parties to the contract; and
7 (2) the successors in title of the parties to the contract;
8 to be included on a petition under IC 36-4-3-5.5 for any pending or
9 future annexations by the municipality of the area served by the
10 sewage works.
11 SECTION 28. IC 36-9-25-14, AS AMENDED BY P.L.156-2020,
12 SECTION 149, IS AMENDED TO READ AS FOLLOWS
13 [EFFECTIVE UPON PASSAGE]: Sec. 14. (a) As to each municipality
14 to which this chapter applies:
15 (1) all the territory included within the corporate boundaries of
16 the municipality; and
17 (2) any territory, town, addition, platted subdivision, or unplatted
18 land lying outside the corporate boundaries of the municipality
19 that has been taken into the district in accordance with a prior
20 statute, the sewage or drainage of which discharges into or
21 through the sewage system of the municipality;
22 constitutes a special taxing district for the purpose of providing for the
23 sanitary disposal of the sewage of the district in a manner that protects
24 the public health and prevents the undue pollution of watercourses of
25 the district.
26 (b) Upon request by:
27 (1) a resolution adopted by the legislative body of another
28 municipality in the same county; or
29 (2) a petition of the majority of the resident freeholders in a
30 platted subdivision or of the owners of unplatted land outside the
31 boundaries of a municipality, if the platted subdivision or
32 unplatted land is in the same county;
33 the board may adopt a resolution incorporating all or any part of the
34 area of the municipality, platted subdivision, or unplatted land into the
35 district.
36 (c) A request under subsection (b) must be signed and certified as
37 correct by the secretary of the legislative body, resident freeholders, or
38 landowners. The original shall be preserved in the records of the board.
39 The resolution of the board incorporating an area in the district must be
40 in writing and must contain an accurate description of the area
41 incorporated into the district. A certified copy of the resolution, signed
42 by the president and secretary of the board, together with a map
HB 1362—LS 7347/DI 116 40
1 showing the boundaries of the district and the location of additional
2 areas, shall be delivered to the auditor of the county within which the
3 district is located. It shall be properly indexed and kept in the
4 permanent records of the offices of the auditor.
5 (d) In addition, upon request by ten (10) or more interested resident
6 freeholders in a platted or unplatted territory, the board may define the
7 limits of an area within the county and including the property of the
8 freeholders that is to be considered for inclusion into the district.
9 Notice of the defining of the area by the board, and notice of the
10 location and limits of the area, shall be given by publication in
11 accordance with IC 5-3-1. Upon request by a majority of the resident
12 freeholders of the area, the area may be incorporated into the district in
13 the manner provided in this section. The resolution of the board
14 incorporating the area into the district and a map of the area shall be
15 made and filed in the same manner.
16 (e) In addition, a person owning or occupying real property outside
17 the district may enter into a sewer service agreement with the board for
18 connection to the sewage works of the district. If the agreement
19 provides for connection at a later time, the date or the event upon
20 which the service commences shall be stated in the agreement. The
21 agreement may impose any conditions for connection that the board
22 determines. The agreement must also provide the amount of service
23 charge to be charged for connection if the persons are not covered
24 under section 11 of this chapter, with the amount to be fixed by the
25 board in its discretion and without a hearing.
26 (f) All sewer service agreements made under subsection (e) or (after
27 June 30, 2013) a signed memorandum of the sewer service agreement
28 shall be recorded in the office of the recorder of the county where the
29 property is located. The agreements run with the property described
30 and are binding upon the persons owning or occupying the property,
31 their personal representatives, heirs, devisees, grantees, successors, and
32 assigns. Each agreement that is recorded, or each agreement of which
33 a signed memorandum is recorded, and that provides for the property
34 being served to be placed on the tax rolls shall be certified by the board
35 to the auditor of the county where the property is located. The
36 certification must state the date the property is to be placed on the tax
37 rolls, and upon receipt of the certification together with a copy of the
38 agreement, the auditor shall immediately place the property certified
39 upon the rolls of property subject to the levy and collection of taxes for
40 the district. An agreement may provide for the collection of a service
41 charge for the period services are rendered before the levy and
42 collection of the tax.
HB 1362—LS 7347/DI 116 41
1 (g) Except as provided in subsections (j) and (l), sewer service
2 agreements made under subsection (e) must contain a waiver provision
3 that persons (other than municipalities) who own or occupy property
4 agree for themselves, their executors, administrators, heirs, devisees,
5 grantees, successors, and assigns that they will:
6 (1) neither object to nor file a remonstrance against the proposed
7 annexation of the property by a municipality within the
8 boundaries of the district;
9 (2) not appeal from an order or a judgment annexing the property
10 to a municipality; and
11 (3) not file a complaint or an action against annexation
12 proceedings.
13 (h) This subsection does not affect any rights or liabilities accrued
14 or proceedings begun before July 1, 2013. Those rights, liabilities, and
15 proceedings continue and shall be imposed and enforced under prior
16 law as if this subsection had not been enacted. For contracts executed
17 after June 30, 2013, a waiver of the right to remonstrate under
18 subsection (g) that is not void under subsection (m), (n), or (o), or (p)
19 is binding as to an executor, administrator, heir, devisee, grantee,
20 successor, or assign of a party to a sewer service agreement under
21 subsection (g) only if the executor, administrator, heir, devisee,
22 grantee, successor, or assign:
23 (1) has actual notice of the waiver; or
24 (2) has constructive notice of the waiver because the sewer
25 service agreement or a signed memorandum of the sewer service
26 agreement stating the waiver has been recorded in the chain of
27 title of the property.
28 (i) This section does not affect any sewer service agreements
29 entered into before March 13, 1953. However, this section applies to
30 a remonstrance waiver regardless of when the waiver was executed.
31 (j) Subsection (g) does not apply to a landowner if all of the
32 following conditions apply:
33 (1) The landowner is required to connect to a sewer service
34 because a person other than the landowner has polluted or
35 contaminated the area.
36 (2) The costs of extension of service or connection to the sewer
37 service are paid by a person other than the landowner or the
38 municipality.
39 (k) This subsection applies to any deed recorded after June 30,
40 2015. This subsection applies only to property that is subject to a
41 remonstrance waiver. A municipality shall provide written notice to
42 any successor in title to property within a reasonable time after the
HB 1362—LS 7347/DI 116 42
1 deed is recorded, that a waiver of the right of remonstrance has been
2 granted with respect to the property.
3 (l) The board may waive the waiver provision described in
4 subsection (g) or (q) in a sewer service agreement made under
5 subsection (e) if the sewer service agreement involves a connection to
6 the district's sewage works under IC 36-9-22.5.
7 (m) A remonstrance waiver executed before July 1, 2003, is void.
8 This subsection does not invalidate an annexation that was effective on
9 or before July 1, 2019.
10 (n) A remonstrance waiver executed after June 30, 2003, and before
11 July 1, 2019, is subject to the following:
12 (1) The waiver is void unless the waiver was recorded:
13 (A) before January 1, 2020; and
14 (B) with the county recorder of the county where the property
15 subject to the waiver is located.
16 (2) A waiver that is not void under subdivision (1) or subsection
17 (p) expires not later than fifteen (15) years after the date the
18 waiver is executed.
19 This subsection does not invalidate an annexation that was effective on
20 or before July 1, 2019.
21 (o) A remonstrance waiver executed after June 30, 2019, is subject
22 to the following: (1) The waiver is void unless the waiver is must be
23 recorded (A) not later than thirty (30) business days after the date the
24 waiver was executed and (B) with the county recorder of the county
25 where the property subject to the waiver is located. (2) A waiver that
26 is not void under subdivision (1) expires not later than fifteen (15)
27 years after the date the waiver is executed. This subsection does not
28 invalidate an annexation that was effective on or before July 1, 2019.
29 (p) Notwithstanding any other law, a remonstrance waiver is
30 effective and binding on a landowner or a successor in title to a
31 party to the contract only with regard to an annexation for which
32 the annexation ordinance was adopted before May 15, 2025.
33 (q) This subsection applies after May 14, 2025. Except as
34 provided in subsections (j) and (l), sewer service agreements made
35 under subsection (e) must contain a provision that persons (other
36 than municipalities) who own or occupy property agree for
37 themselves, their executors, administrators, heirs, devisees,
38 grantees, successors, and assigns that they will:
39 (1) consent to a future annexation of the property by a
40 municipality within the boundaries of the district and to be
41 included on a petition under IC 36-4-3-5.5 in accordance with
42 the terms set forth in IC 36-4-3-5.5(i);
HB 1362—LS 7347/DI 116 43
1 (2) not appeal from an order or a judgment annexing the
2 property to a municipality; and
3 (3) not file a complaint or an action against annexation
4 proceedings.
5 The terms of the provision must conform to the requirements set
6 forth in IC 36-4-3-5.5(i).
7 SECTION 29. An emergency is declared for this act.
HB 1362—LS 7347/DI 116 44
COMMITTEE REPORT
Mr. Speaker: Your Committee on Local Government, to which was
referred House Bill 1362, 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, between lines 29 and 30, begin a new paragraph and insert:
"(i) This subsection applies after May 14, 2025. If service is
ordered under this chapter, a receiver of that service that is located
in an unincorporated area may enter into an agreement described
in IC 36-4-3-5.5(i) with a municipality providing the service. An
agreement under this subsection:
(1) provides that the landowner consents to a future
annexation of the property by a municipality and the
landowner will be included on a petition under IC 36-4-3-5.5
in accordance with the terms set forth in IC 36-4-3-5.5(i); and
(2) may be one (1) of the terms for connection and service
described in subsection (a).
The agreement, if granted, shall be noted on the deed of each
property affected and recorded as provided by law and is
considered a covenant running with the land.".
Page 8, line 37, delete "After" and insert "Except as provided in
subsection (i), after".
Page 8, line 42, delete "sixty-five percent (65%)" and insert
"fifty-one percent (51%)".
Page 9, line 4, delete "eighty percent (80%)" and insert
"seventy-five percent (75%)".
Page 9, between lines 8 and 9, begin a new line blocked left and
insert:
"The municipality may collect signatures for the petition by mail
on a form prescribed by the municipality that meets the
requirements of this section as long as the signature is made under
oath or affirmation.".
Page 10, between lines 11 and 12, begin a new paragraph and insert:
"(i) A receiver of service under IC 13-18-15, IC 36-9-22, or
IC 36-9-25-14 whose property is located in an unincorporated area
may enter into an agreement to provide consent to a future
annexation in accordance with the requirements set forth in this
section. A landowner who signs an agreement under this subsection
shall be included in the petition described in subsection (c).
However, an agreement under this subsection is subject to the
following:
(1) The agreement is void unless the agreement is recorded:
HB 1362—LS 7347/DI 116 45
(A) not later than thirty (30) business days after the date
the agreement was executed; and
(B) with the county recorder of the county where the
property subject to the agreement is located.
(2) An agreement that is not void under subdivision (1)
expires not later than fifteen (15) years after the date the
agreement is executed.
A municipality shall provide written notice to any successor in title
to the property within a reasonable time after the deed is recorded,
that an agreement has been made with respect to the property in
accordance with this subsection. This subsection does not
invalidate an annexation that was effective on or before May 15,
2025.".
Page 36, line 26, after "subsection (c)" delete "," and insert "or
(m),".
Page 36, line 27, after "subsection (c)" insert "or (m)".
Page 36, line 29, after "subsection (c)" insert "or (m)".
Page 38, between lines 3 and 4, begin a new paragraph and insert:
"(m) This subsection applies after May 14, 2025. The contract
must include, as part of the consideration running to the
municipality, consent of:
(1) the parties to the contract; and
(2) the successors in title of the parties to the contract;
to be included on a petition under IC 36-4-3-5.5 for any pending or
future annexations by the municipality of the area served by the
sewage works.".
Page 40, line 39, after "(g)" insert "or (q)".
Page 41, between lines 25 and 26, begin a new paragraph and insert:
"(q) This subsection applies after May 14, 2025. Except as
provided in subsections (j) and (l), sewer service agreements made
under subsection (e) must contain a provision that persons (other
than municipalities) who own or occupy property agree for
themselves, their executors, administrators, heirs, devisees,
grantees, successors, and assigns that they will:
(1) consent to a future annexation of the property by a
municipality within the boundaries of the district and to be
included on a petition under IC 36-4-3-5.5 in accordance with
the terms set forth in IC 36-4-3-5.5(i);
(2) not appeal from an order or a judgment annexing the
property to a municipality; and
(3) not file a complaint or an action against annexation
proceedings.
HB 1362—LS 7347/DI 116 46
The terms of the provision must conform to the requirements set
forth in IC 36-4-3-5.5(i).".
and when so amended that said bill do pass.
(Reference is to HB 1362 as introduced.)
MAY
Committee Vote: yeas 9, nays 4.
HB 1362—LS 7347/DI 116