Introduced Version
SENATE BILL No. 491
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 36-4-3-4.
Synopsis: Annexation of property for an industrial park. Allows a
municipality in Madison County to annex noncontiguous property for
use as an industrial park.
Effective: July 1, 2025.
Gaskill
January 14, 2025, read first time and referred to Committee on Local Government.
2025 IN 491—LS 6794/DI 87 Introduced
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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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.
SENATE BILL No. 491
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).
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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 (13) A county having a population of more than one hundred
12 thirty thousand (130,000) and less than one hundred
13 thirty-nine thousand (139,000).
14 Except as provided in subsection (c), the legislative body of a
15 municipality to which this subsection applies may, by ordinance, annex
16 territory that is not contiguous to the municipality, has its entire area
17 not more than two (2) miles from the municipality's boundary, is to be
18 used for an industrial park containing one (1) or more businesses, and
19 is either owned by the municipality or by a property owner who
20 consents to the annexation. However, if territory annexed under this
21 subsection is not used as an industrial park within five (5) years after
22 the date of passage of the annexation ordinance, or if the territory
23 ceases to be used as an industrial park for at least one (1) year, the
24 territory reverts to the jurisdiction of the unit having jurisdiction before
25 the annexation if the unit that had jurisdiction over the territory still
26 exists. If the unit no longer exists, the territory reverts to the
27 jurisdiction of the unit that would currently have jurisdiction over the
28 territory if the annexation had not occurred. The clerk of the
29 municipality shall notify the offices entitled to receive notice of a
30 disannexation under section 19 of this chapter when the territory
31 reverts to the jurisdiction of the unit having jurisdiction before the
32 annexation.
33 (c) A city in a county with a population of more than two hundred
34 fifty thousand (250,000) and less than three hundred thousand
35 (300,000) may not annex territory as prescribed in subsection (b) until
36 the territory is zoned by the county for industrial purposes.
37 (d) Notwithstanding any other law, territory that is annexed under
38 subsection (b) or (h) is not considered a part of the municipality for the
39 purposes of:
40 (1) annexing additional territory:
41 (A) in a county that is not described by clause (B); or
42 (B) in a county having a population of more than two hundred
2025 IN 491—LS 6794/DI 87 4
1 fifty thousand (250,000) and less than three hundred thousand
2 (300,000), unless the boundaries of the noncontiguous territory
3 become contiguous to the city, as allowed by Indiana law;
4 (2) expanding the municipality's extraterritorial jurisdictional
5 area; or
6 (3) changing an assigned service area under IC 8-1-2.3-6(1).
7 (e) As used in this section, "airport" and "landing field" have the
8 meanings prescribed by IC 8-22-1.
9 (f) As used in this section, "hospital" has the meaning prescribed by
10 IC 16-18-2-179(b).
11 (g) An ordinance adopted under this section must assign the
12 territory annexed by the ordinance to at least one (1) municipal
13 legislative body district.
14 (h) This subsection applies to a city having a population of more
15 than twenty-eight thousand (28,000) and less than twenty-nine
16 thousand (29,000). The city legislative body may, by ordinance, annex
17 territory that:
18 (1) is not contiguous to the city;
19 (2) has its entire area not more than eight (8) miles from the city's
20 boundary;
21 (3) does not extend more than:
22 (A) one and one-half (1 1/2) miles to the west;
23 (B) three-fourths (3/4) mile to the east;
24 (C) one-half (1/2) mile to the north; or
25 (D) one-half (1/2) mile to the south;
26 of an interchange of an interstate highway (as designated by the
27 federal highway authorities) and a state highway (as designated
28 by the state highway authorities); and
29 (4) is owned by the city or by a property owner that consents to
30 the annexation.
31 (i) This subsection applies to a city having a population of more
32 than thirty-four thousand (34,000) and less than thirty-four thousand
33 five hundred (34,500). The city legislative body may, by ordinance,
34 annex territory under section 5.1 of this chapter:
35 (1) that is not contiguous to the city;
36 (2) that is south of the southernmost boundary of the city;
37 (3) the entire area of which is not more than four (4) miles from
38 the city's boundary; and
39 (4) that does not extend more than one (1) mile to the east of a
40 state highway (as designated by the state highway authorities).
41 Territory annexed under this subsection is not considered a part of the
42 city for purposes of annexation of additional territory. A city may not
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1 require connection to a sewer installed to provide service to territory
2 annexed under this subsection.
3 (j) A third class city may annex a residential development under
4 section 5.2 of this chapter that is not contiguous to the city.
2025 IN 491—LS 6794/DI 87