*SB0491.1*
February 14, 2025
SENATE BILL No. 491
_____
DIGEST OF SB 491 (Updated February 13, 2025 11:14 am - DI 87)
Citations Affected: IC 36-4.
Synopsis: Annexation of property for an industrial park. Allows the
city of Alexandria in Madison County to annex noncontiguous property
for use as an industrial park.
Effective: July 1, 2025.
Gaskill, Niemeyer
January 14, 2025, read first time and referred to Committee on Local Government.
February 13, 2025, amended, reported favorably — Do Pass.
SB 491—LS 6794/DI 87 February 14, 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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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:
SB 491—LS 6794/DI 87 2
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 municipality in a county having a population of more than
24 sixty-six thousand six hundred (66,600) and less than seventy
25 thousand (70,000).
26 (2) A municipality in a county having a population of more than
27 eighty-two thousand (82,000) and less than eighty-three thousand
28 (83,000).
29 (3) A municipality in a county having a population of more than
30 eighty thousand four hundred (80,400) and less than eighty-two
31 thousand (82,000).
32 (4) A municipality in a county having a population of more than
33 forty-six thousand (46,000) and less than forty-six thousand four
34 hundred (46,400).
35 (5) A municipality in a county having a population of more than
36 thirty-seven thousand (37,000) and less than thirty-seven
37 thousand nine hundred (37,900).
38 (6) A municipality in a county having a population of more than
39 thirty-six thousand five hundred (36,500) and less than thirty-six
40 thousand seven hundred (36,700).
41 (7) A municipality in a county having a population of more than
42 thirty-two thousand (32,000) and less than thirty-three thousand
SB 491—LS 6794/DI 87 3
1 (33,000).
2 (8) A municipality in a county having a population of more than
3 twenty-three thousand (23,000) and less than twenty-three
4 thousand three hundred seventy-five (23,375).
5 (9) A municipality in a county having a population of more than
6 two hundred thousand (200,000) and less than two hundred fifty
7 thousand (250,000).
8 (10) A municipality in a county having a population of more than
9 two hundred fifty thousand (250,000) and less than three hundred
10 thousand (300,000).
11 (11) A municipality in a county having a population of more than
12 thirty thousand nine hundred (30,900) and less than thirty-two
13 thousand (32,000).
14 (12) A municipality in a county having a population of more than
15 eighty thousand (80,000) and less than eighty thousand four
16 hundred (80,400).
17 (13) A city having a population of more than five thousand
18 one hundred forty (5,140) and less than five thousand two
19 hundred (5,200).
20 Except as provided in subsection (c), the legislative body of a
21 municipality to which this subsection applies may, by ordinance, annex
22 territory that is not contiguous to the municipality, has its entire area
23 not more than two (2) miles from the municipality's boundary, is to be
24 used for an industrial park containing one (1) or more businesses, and
25 is either owned by the municipality or by a property owner who
26 consents to the annexation. However, if territory annexed under this
27 subsection is not used as an industrial park within five (5) years after
28 the date of passage of the annexation ordinance, or if the territory
29 ceases to be used as an industrial park for at least one (1) year, the
30 territory reverts to the jurisdiction of the unit having jurisdiction before
31 the annexation if the unit that had jurisdiction over the territory still
32 exists. If the unit no longer exists, the territory reverts to the
33 jurisdiction of the unit that would currently have jurisdiction over the
34 territory if the annexation had not occurred. The clerk of the
35 municipality shall notify the offices entitled to receive notice of a
36 disannexation under section 19 of this chapter when the territory
37 reverts to the jurisdiction of the unit having jurisdiction before the
38 annexation.
39 (c) A city in a county with a population of more than two hundred
40 fifty thousand (250,000) and less than three hundred thousand
41 (300,000) may not annex territory as prescribed in subsection (b) until
42 the territory is zoned by the county for industrial purposes.
SB 491—LS 6794/DI 87 4
1 (d) Notwithstanding any other law, territory that is annexed under
2 subsection (b) or (h) is not considered a part of the municipality for the
3 purposes of:
4 (1) annexing additional territory:
5 (A) in a county that is not described by clause (B); or
6 (B) in a county having a population of more than two hundred
7 fifty thousand (250,000) and less than three hundred thousand
8 (300,000), unless the boundaries of the noncontiguous territory
9 become contiguous to the city, as allowed by Indiana law;
10 (2) expanding the municipality's extraterritorial jurisdictional
11 area; or
12 (3) changing an assigned service area under IC 8-1-2.3-6(1).
13 (e) As used in this section, "airport" and "landing field" have the
14 meanings prescribed by IC 8-22-1.
15 (f) As used in this section, "hospital" has the meaning prescribed by
16 IC 16-18-2-179(b).
17 (g) An ordinance adopted under this section must assign the
18 territory annexed by the ordinance to at least one (1) municipal
19 legislative body district.
20 (h) This subsection applies to a city having a population of more
21 than twenty-eight thousand (28,000) and less than twenty-nine
22 thousand (29,000). The city legislative body may, by ordinance, annex
23 territory that:
24 (1) is not contiguous to the city;
25 (2) has its entire area not more than eight (8) miles from the city's
26 boundary;
27 (3) does not extend more than:
28 (A) one and one-half (1 1/2) miles to the west;
29 (B) three-fourths (3/4) mile to the east;
30 (C) one-half (1/2) mile to the north; or
31 (D) one-half (1/2) mile to the south;
32 of an interchange of an interstate highway (as designated by the
33 federal highway authorities) and a state highway (as designated
34 by the state highway authorities); and
35 (4) is owned by the city or by a property owner that consents to
36 the annexation.
37 (i) This subsection applies to a city having a population of more
38 than thirty-four thousand (34,000) and less than thirty-four thousand
39 five hundred (34,500). The city legislative body may, by ordinance,
40 annex territory under section 5.1 of this chapter:
41 (1) that is not contiguous to the city;
42 (2) that is south of the southernmost boundary of the city;
SB 491—LS 6794/DI 87 5
1 (3) the entire area of which is not more than four (4) miles from
2 the city's boundary; and
3 (4) that does not extend more than one (1) mile to the east of a
4 state highway (as designated by the state highway authorities).
5 Territory annexed under this subsection is not considered a part of the
6 city for purposes of annexation of additional territory. A city may not
7 require connection to a sewer installed to provide service to territory
8 annexed under this subsection.
9 (j) A third class city may annex a residential development under
10 section 5.2 of this chapter that is not contiguous to the city.
SB 491—LS 6794/DI 87 6
COMMITTEE REPORT
Mr. President: The Senate Committee on Local Government, to
which was referred Senate Bill No. 491, has had the same under
consideration and begs leave to report the same back to the Senate with
the recommendation that said bill be AMENDED as follows:
Page 2, line 21, strike "municipalities in any of".
Page 2, line 21, after "following" insert ":".
Page 2, line 22, strike "counties:".
Page 2, line 23, after "(1) A" insert "municipality in a".
Page 2, line 25, after "(2) A" insert "municipality in a".
Page 2, line 27, after "(3) A" insert "municipality in a".
Page 2, line 30, after "(4) A" insert "municipality in a".
Page 2, line 32, after "(5) A" insert "municipality in a".
Page 2, line 35, after "(6) A" insert "municipality in a".
Page 2, line 38, after "(7) A" insert "municipality in a".
Page 2, line 40, after "(8) A" insert "municipality in a".
Page 3, line 1, after "(9) A" insert "municipality in a".
Page 3, line 4, after "(10) A" insert "municipality in a".
Page 3, line 7, after "(11) A" insert "municipality in a".
Page 3, line 9, after "(12) A" insert "municipality in a".
Page 3, line 11, delete "county having a population of more than one
hundred" and insert "city having a population of more than five
thousand one hundred forty (5,140) and less than five thousand two
hundred (5,200).".
Page 3, delete lines 12 through 13.
and when so amended that said bill do pass.
(Reference is to SB 491 as introduced.)
BUCK, Chairperson
Committee Vote: Yeas 9, Nays 0.
SB 491—LS 6794/DI 87