*HB1472.1*
February 4, 2025
HOUSE BILL No. 1472
_____
DIGEST OF HB 1472 (Updated February 4, 2025 10:32 am - DI 140)
Citations Affected: IC 36-4.
Synopsis: Annexation of residential development. Allows the town of
Plainfield in Hendricks County to annex: (1) a noncontiguous
residential development; and (2) the right-of-way of a public highway
connecting the development to the town. Provides that the annexation
is initiated by: (1) the homeowner's association board petitioning the
town legislative body for annexation of the residential development;
and (2) the town legislative body adopting a resolution approving
initiation of the annexation process.
Effective: July 1, 2025.
Steuerwald
January 21, 2025, read first time and referred to Committee on Local Government.
February 4, 2025, reported — Do Pass. Referred to Committee on Ways and Means
pursuant to Rule 126.3.
HB 1472—LS 7621/DI 87 February 4, 2025
First Regular Session of the 124th General Assembly (2025)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
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additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in this style type. Also, the
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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. 1472
A BILL FOR AN ACT to amend the Indiana Code concerning local
government.
Be it enacted by the General Assembly of the State of Indiana:
1 SECTION 1. IC 36-4-3-4, AS AMENDED BY P.L.105-2022,
2 SECTION 38, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2025]: Sec. 4. (a) The legislative body of a municipality may,
4 by ordinance, annex any of the following:
5 (1) Territory that is contiguous to the municipality.
6 (2) Territory that is not contiguous to the municipality and is
7 occupied by a municipally owned or operated as either of the
8 following:
9 (A) An airport or landing field.
10 (B) A wastewater treatment facility or water treatment facility.
11 After a municipality annexes territory under this clause, the
12 municipality may annex additional territory to enlarge the
13 territory for the use of the wastewater treatment facility or
14 water treatment facility only if the county legislative body
15 approves that use of the additional territory by ordinance.
16 (3) Territory that is not contiguous to the municipality but is
17 found by the legislative body to be occupied by:
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1 (A) a municipally owned or regulated sanitary landfill, golf
2 course, or hospital;
3 (B) a police station of the municipality; or
4 (C) a solar electric generating facility that is or will be
5 interconnected to an electric utility owned by the municipality.
6 However, if territory annexed under subdivision (2) or (3) ceases to be
7 used for the purpose for which the territory was annexed for at least
8 one (1) year, the territory reverts to the jurisdiction of the unit having
9 jurisdiction before the annexation if the unit that had jurisdiction over
10 the territory still exists. If the unit no longer exists, the territory reverts
11 to the jurisdiction of the unit that would currently have jurisdiction over
12 the territory if the annexation had not occurred. The clerk of the
13 municipality shall notify the offices required to receive notice of a
14 disannexation under section 19 of this chapter when the territory
15 reverts to the jurisdiction of the unit having jurisdiction before the
16 annexation. Territory that is annexed under subdivision (2) (including
17 territory that is enlarged under subdivision (2)(B) for the use of the
18 wastewater treatment facility or water treatment facility) or subdivision
19 (3) may not be considered a part of the municipality for purposes of
20 annexing additional territory.
21 (b) This subsection applies to municipalities in any of the following
22 counties:
23 (1) A county having a population of more than sixty-six thousand
24 six hundred (66,600) and less than seventy thousand (70,000).
25 (2) A county having a population of more than eighty-two
26 thousand (82,000) and less than eighty-three thousand (83,000).
27 (3) A county having a population of more than eighty thousand
28 four hundred (80,400) and less than eighty-two thousand
29 (82,000).
30 (4) A county having a population of more than forty-six thousand
31 (46,000) and less than forty-six thousand four hundred (46,400).
32 (5) A county having a population of more than thirty-seven
33 thousand (37,000) and less than thirty-seven thousand nine
34 hundred (37,900).
35 (6) A county having a population of more than thirty-six thousand
36 five hundred (36,500) and less than thirty-six thousand seven
37 hundred (36,700).
38 (7) A county having a population of more than thirty-two
39 thousand (32,000) and less than thirty-three thousand (33,000).
40 (8) A county having a population of more than twenty-three
41 thousand (23,000) and less than twenty-three thousand three
42 hundred seventy-five (23,375).
HB 1472—LS 7621/DI 87 3
1 (9) A county having a population of more than two hundred
2 thousand (200,000) and less than two hundred fifty thousand
3 (250,000).
4 (10) A county having a population of more than two hundred fifty
5 thousand (250,000) and less than three hundred thousand
6 (300,000).
7 (11) A county having a population of more than thirty thousand
8 nine hundred (30,900) and less than thirty-two thousand (32,000).
9 (12) A county having a population of more than eighty thousand
10 (80,000) and less than eighty thousand four hundred (80,400).
11 Except as provided in subsection (c), the legislative body of a
12 municipality to which this subsection applies may, by ordinance, annex
13 territory that is not contiguous to the municipality, has its entire area
14 not more than two (2) miles from the municipality's boundary, is to be
15 used for an industrial park containing one (1) or more businesses, and
16 is either owned by the municipality or by a property owner who
17 consents to the annexation. However, if territory annexed under this
18 subsection is not used as an industrial park within five (5) years after
19 the date of passage of the annexation ordinance, or if the territory
20 ceases to be used as an industrial park for at least one (1) year, the
21 territory reverts to the jurisdiction of the unit having jurisdiction before
22 the annexation if the unit that had jurisdiction over the territory still
23 exists. If the unit no longer exists, the territory reverts to the
24 jurisdiction of the unit that would currently have jurisdiction over the
25 territory if the annexation had not occurred. The clerk of the
26 municipality shall notify the offices entitled to receive notice of a
27 disannexation under section 19 of this chapter when the territory
28 reverts to the jurisdiction of the unit having jurisdiction before the
29 annexation.
30 (c) A city in a county with a population of more than two hundred
31 fifty thousand (250,000) and less than three hundred thousand
32 (300,000) may not annex territory as prescribed in subsection (b) until
33 the territory is zoned by the county for industrial purposes.
34 (d) Notwithstanding any other law, territory that is annexed under
35 subsection (b) or (h) is not considered a part of the municipality for the
36 purposes of:
37 (1) annexing additional territory:
38 (A) in a county that is not described by clause (B); or
39 (B) in a county having a population of more than two hundred
40 fifty thousand (250,000) and less than three hundred thousand
41 (300,000), unless the boundaries of the noncontiguous territory
42 become contiguous to the city, as allowed by Indiana law;
HB 1472—LS 7621/DI 87 4
1 (2) expanding the municipality's extraterritorial jurisdictional
2 area; or
3 (3) changing an assigned service area under IC 8-1-2.3-6(1).
4 (e) As used in this section, "airport" and "landing field" have the
5 meanings prescribed by IC 8-22-1.
6 (f) As used in this section, "hospital" has the meaning prescribed by
7 IC 16-18-2-179(b).
8 (g) An ordinance adopted under this section must assign the
9 territory annexed by the ordinance to at least one (1) municipal
10 legislative body district.
11 (h) This subsection applies to a city having a population of more
12 than twenty-eight thousand (28,000) and less than twenty-nine
13 thousand (29,000). The city legislative body may, by ordinance, annex
14 territory that:
15 (1) is not contiguous to the city;
16 (2) has its entire area not more than eight (8) miles from the city's
17 boundary;
18 (3) does not extend more than:
19 (A) one and one-half (1 1/2) miles to the west;
20 (B) three-fourths (3/4) mile to the east;
21 (C) one-half (1/2) mile to the north; or
22 (D) one-half (1/2) mile to the south;
23 of an interchange of an interstate highway (as designated by the
24 federal highway authorities) and a state highway (as designated
25 by the state highway authorities); and
26 (4) is owned by the city or by a property owner that consents to
27 the annexation.
28 (i) This subsection applies to a city having a population of more
29 than thirty-four thousand (34,000) and less than thirty-four thousand
30 five hundred (34,500). The city legislative body may, by ordinance,
31 annex territory under section 5.1 of this chapter:
32 (1) that is not contiguous to the city;
33 (2) that is south of the southernmost boundary of the city;
34 (3) the entire area of which is not more than four (4) miles from
35 the city's boundary; and
36 (4) that does not extend more than one (1) mile to the east of a
37 state highway (as designated by the state highway authorities).
38 Territory annexed under this subsection is not considered a part of the
39 city for purposes of annexation of additional territory. A city may not
40 require connection to a sewer installed to provide service to territory
41 annexed under this subsection.
42 (j) A third class city municipality may annex a residential
HB 1472—LS 7621/DI 87 5
1 development under section 5.2 of this chapter that is not contiguous to
2 the city. municipality.
3 SECTION 2. IC 36-4-3-5.2, AS AMENDED BY P.L.82-2023,
4 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
5 JULY 1, 2025]: Sec. 5.2. (a) As used in this section, "homeowners
6 association" means a corporation that satisfies all of the following:
7 (1) The corporation is exempt from federal income taxation under
8 26 U.S.C. 528.
9 (2) The control and management of the corporation is vested in a
10 board of directors.
11 (3) The corporation is organized and operated exclusively for the
12 benefit of two (2) or more persons who each own:
13 (A) a dwelling in fee simple; or
14 (B) a commercial building in fee simple;
15 within the residential development.
16 (4) The purpose of the corporation is to:
17 (A) own, maintain, and operate common areas and facilities;
18 (B) administer and enforce covenants and restrictions on
19 property; and
20 (C) collect and distribute assessments on property;
21 located within the residential development.
22 (5) The corporation acts in accordance with the articles, bylaws,
23 or other documents governing the corporation to:
24 (A) adopt and enforce rules and regulations necessary for the
25 enjoyment of common areas, recreation facilities, and other
26 amenities located within the residential development; and
27 (B) exercise the corporation's power to:
28 (i) levy assessments on property within the residential
29 development; and
30 (ii) collect assessments on property located within the
31 residential development by enforcing the corporation's lien
32 and foreclosure rights.
33 (b) As used in this section, "municipality" means:
34 (1) a third class city; or
35 (2) a town having a population of more than thirty thousand
36 (30,000) located in a county having a population of more than
37 one hundred seventy-four thousand (174,000) and less than
38 one hundred eighty thousand (180,000).
39 (b) (c) As used in this section, "residential development" means a
40 parcel of land that is subdivided or will be subdivided upon collection
41 of the annexation into:
42 (1) lots, parcels, tracts, units, or interests that:
HB 1472—LS 7621/DI 87 6
1 (A) include an existing Class 2 structure (as defined in
2 IC 22-12-1-5); or
3 (B) are designated for the construction of a Class 2 structure;
4 each of which is encumbered by substantively identical restrictive
5 covenants concerning one (1) or more servient estates located
6 within the boundaries of the original undivided parcel, or other
7 governing document of record;
8 (2) lots, parcels, tracts, units, or interests that:
9 (A) include an existing Class 1 structure (as defined in
10 IC 22-12-1-4); or
11 (B) are designated for the construction of a Class 1 structure;
12 and
13 (3) a common area.
14 (c) (d) In addition to annexing territory under section 3, 4, 5, or 5.1
15 of this chapter, a third class city municipality may annex a residential
16 development and a public highway right-of-way that connects the
17 residential development to the corporate limits of the third class city,
18 municipality, if all of the following are satisfied:
19 (1) The residential development is governed by a homeowners
20 association.
21 (2) The residential development has at least any combination of
22 three hundred (300) proposed or existing, or both, single family
23 lots within the proposed or existing residential developments.
24 (3) The residential development is located in its entirety not more
25 than four and five-tenths (4.5) miles outside the third class city's
26 municipality's corporate boundaries.
27 (4) The residential development dwellings are or will be upon
28 construction connected to the third class city's municipality's
29 sewer or water service.
30 (5) The residential development includes a commercial area
31 containing or proposed to contain buildings intended to be used
32 and operated for commercial purposes.
33 (6) The residential development is adjacent to the public highway
34 right-of-way.
35 (7) The public highway that connects the residential development
36 to the corporate limits of the city municipality is part of the state
37 highway system (as defined in IC 8-23-1-40).
38 (8) The annexation territory includes only the public highway
39 right-of-way and the residential development.
40 (9) The aggregate external boundary of the annexation territory
41 that coincides with the boundary of the municipality is greater
42 than zero (0).
HB 1472—LS 7621/DI 87 7
1 (d) (e) Unless the articles, bylaws, or other governing documents of
2 the homeowners association expressly provide otherwise, the board of
3 directors of the homeowners association may file a petition with the
4 legislative body of the third class city municipality requesting the city
5 municipality to annex all property within the residential development.
6 The annexation may proceed only if the third class city municipality
7 adopts a resolution approving the initiation of the annexation process
8 not more than sixty (60) days after the petition is filed. If the third class
9 city municipality does not adopt a resolution within the sixty (60) day
10 period, the petition is void.
11 (e) (f) If the legislative body of the third class city municipality
12 adopts a resolution approving initiation of the annexation, the city
13 municipality shall prepare a written preliminary fiscal plan that must
14 be made available to the public at each of the outreach program
15 meetings under section 1.7 of this chapter.
16 (f) (g) Upon completion of the outreach program meetings and
17 before mailing the notification to landowners under section 2.2 of this
18 chapter, the legislative body of the third class city municipality shall
19 adopt a written fiscal plan by resolution that incorporates any revisions
20 to the preliminary fiscal plan.
21 (g) (h) The third class city municipality shall hold a public hearing
22 not earlier than thirty (30) days after the date the annexation ordinance
23 is introduced. All interested parties must have the opportunity to testify
24 as to the proposed annexation. Notice of the hearing shall be:
25 (1) published in accordance with IC 5-3-1 except that the notice
26 shall be published at least thirty (30) days before the hearing; and
27 (2) mailed as set forth in section 2.2 of this chapter.
28 A third class city municipality may adopt an ordinance not earlier than
29 thirty (30) days or not later than sixty (60) days after the legislative
30 body of the third class city municipality has held the public hearing
31 under this subsection.
32 (h) (i) A landowner may file a remonstrance against the annexation
33 as provided in section 11 of this chapter.
34 (i) (j) Territory annexed under this section may not be considered
35 a part of the third class city municipality for purposes of annexing
36 additional territory under section 3 or 4 of this chapter. However,
37 territory annexed under this chapter shall be considered a part of the
38 third class city municipality for purposes of annexing additional
39 territory under section 5 or 5.1 of this chapter.
40 (j) (k) For purposes of an annexation under this section:
41 (1) section 1.5 of this chapter does not apply; and
42 (2) the landowner of the public highway right-of-way that is part
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1 of the state highway system (as defined in IC 8-23-1-40) is
2 considered to be the state of Indiana.
HB 1472—LS 7621/DI 87 9
COMMITTEE REPORT
Mr. Speaker: Your Committee on Local Government, to which was
referred House Bill 1472, has had the same under consideration and
begs leave to report the same back to the House with the
recommendation that said bill do pass.
(Reference is to HB 1472 as introduced.)
MAY
Committee Vote: Yeas 10, Nays 0
HB 1472—LS 7621/DI 87