Introduced Version
HOUSE BILL No. 1430
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 20-23.
Synopsis: Disannexation from school corporations. Creates a process
by which residents of a part of an existing school corporation can elect
to disannex from that corporation and either annex to another existing
school corporation or establish a new school corporation. Makes
conforming changes.
Effective: July 1, 2011.
Lutz
January 18, 2011, read first time and referred to Committee on Education.
Introduced
First Regular Session 117th General Assembly (2011)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
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HOUSE BILL No. 1430
A BILL FOR AN ACT to amend the Indiana Code concerning
education.
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 20-23-5-1; (11)IN1430.1.1. -->
SECTION 1. IC 20-23-5-1, AS ADDED BY P.L.1-2005, SECTION
7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1,
2011]: Sec. 1. As used in this chapter,"acquiring school corporation"
means the a school corporation that acquires territory as a result of
annexation or disannexation.
SOURCE: IC 20-23-5-3; (11)IN1430.1.2. -->
SECTION 2. IC 20-23-5-3, AS ADDED BY P.L.1-2005, SECTION
7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1,
2011]: Sec. 3. As used in this chapter, "annexed territory" means the
territory acquired by an acquiring school corporation as a result of
annexation or disannexation from a losing relinquishing school
corporation.
SOURCE: IC 20-23-5-3.1; (11)IN1430.1.3. -->
SECTION 3. IC 20-23-5-3.1 IS ADDED TO THE INDIANA CODE
AS A
NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2011]:
Sec. 3.1. As used in this chapter, "disannex",
"disannexing", "disannexation", and "school disannexation" mean
any action whereby:
(1) the boundaries of a school corporation are changed by
removing territory from a relinquishing school corporation;
and
(2) the territory is transferred to an acquiring school
corporation or to a new school corporation other than by
annexation.
SOURCE: IC 20-23-5-4; (11)IN1430.1.4. -->
SECTION 4. IC 20-23-5-4, AS ADDED BY P.L.1-2005, SECTION
7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1,
2011]: Sec. 4. As used in this chapter, "losing school corporation"
means a school corporation that loses territory to an acquiring school
corporation by annexation. "new school corporation" means a school
corporation that is created by and acquires its territory as a result
of a disannexation.
SOURCE: IC 20-23-5-4.1; (11)IN1430.1.5. -->
SECTION 5. IC 20-23-5-4.1 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2011]: Sec. 4.1. As used in this chapter, "relinquishing school
corporation" means a school corporation that relinquishes
territory to an acquiring school corporation or a new school
corporation by annexation or disannexation.
SOURCE: IC 20-23-5-7; (11)IN1430.1.6. -->
SECTION 6. IC 20-23-5-7, AS ADDED BY P.L.1-2005, SECTION
7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1,
2011]: Sec. 7. Subject to the limitations and procedures in this chapter:
(1) a school corporation may annex territory from any other
school corporation by resolutions of the acquiring and losing
relinquishing school corporations under section 8 of this chapter ;
or
(2) territory may be disannexed from a school corporation
under sections 10.1 through 10.6 of this chapter.
SOURCE: IC 20-23-5-8; (11)IN1430.1.7. -->
SECTION 7. IC 20-23-5-8, AS ADDED BY P.L.1-2005, SECTION
7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1,
2011]: Sec. 8. An annexation may be effected by any school
corporation as follows:
(1) The acquiring and the
losing relinquishing school
corporations shall each adopt a substantially identical annexation
resolution. The resolution must contain the following items:
(A) The name of the acquiring school corporation, which may
differ from the name of the acquiring corporation at the time
of the adoption of the resolution, after the effective date.
(B) A description of the annexed territory. The description
shall as near as reasonably possible:
(i) be by streets and other boundaries known by common
names; and
(ii) does not have to be by legal description unless the
additional description is necessary to identify the annexed
territory.
A notice is not defective if there is a good faith compliance
with this section and if the area designated may be ascertained
with reasonable certainty by persons skilled in the area of real
estate description.
(C) The time the annexation takes place.
(D) Any terms and conditions facilitating education of students
in the:
(i) annexed territory;
(ii) losing relinquishing school corporation; or
(iii) acquiring school corporation.
The terms may provide for the continued attendance by
students in the annexed territory at schools in the losing
relinquishing school corporation for specified periods after
annexation on a transfer basis. If students will continue
attendance in schools in the losing relinquishing school
corporation, transfer tuition for the students shall be paid by
the acquiring school corporation to the losing relinquishing
school corporation:
(i) using the method; and
(ii) at the rates;
provided by the Indiana statutes governing the computation
and payment of transfer tuition costs.
(E) Disposition of assets and liabilities of the losing
relinquishing school corporation to the acquiring school
corporation.
(F) Allocation between the acquiring and losing relinquishing
school corporations of subsequently collected school taxes
levied on property in the annexed territory.
(G) The amount, if any, to be paid by the acquiring school
corporation to the losing relinquishing school corporation on
account of property received from the losing relinquishing
school corporation.
(H) Dispositions, allocations, and amounts transferred under
this subsection must be equitable.
(2) After the adoption of the resolution, notice shall be given by
publication in both the acquiring school corporation and the
losing relinquishing school corporation setting out:
(A) the text of the resolution; and
(B) a statement that the resolution has been adopted ; and
(C) that a right of remonstrance exists as provided in this
chapter.
(3) It is not necessary to set out the remonstrance provisions of
this chapter. A general reference to a right of remonstrance with
a reference to this chapter is sufficient.
(4) The annexation takes effect:
(A) within thirty (30) days after publication; or
(B) at the time provided in the resolution;
whichever is later, unless within the period during which a
remonstrance may be filed a remonstrance is filed in the circuit or
superior court of the county where the annexed territory or any
part of the annexed territory is located, by registered voters
residing in the losing relinquishing school corporation at least
equal in number to the greater of ten percent (10%) of the number
of registered voters residing in the losing relinquishing school
corporation or fifty-one percent (51%) of the number of registered
voters residing in the annexed territory.
SOURCE: IC 20-23-5-9; (11)IN1430.1.8. -->
SECTION 8. IC 20-23-5-9, AS ADDED BY P.L.1-2005, SECTION
7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1,
2011]: Sec. 9. (a) The notice by publication required by section 8 of
this chapter shall be made:
(1) two (2) times;
(2) a week apart; and
(3) in two (2) daily newspapers of general circulation, published
in the English language and of general circulation in the acquiring
school corporation and in the losing relinquishing school
corporation.
(b) If there is only one (1) or no daily newspaper in either school
corporation, a weekly newspaper may be used.
(c) If there is only one (1) daily or weekly newspaper, publication
in the newspaper is sufficient.
(d) If a newspaper is of general circulation in both the acquiring
school corporation and the losing relinquishing school corporation,
publication in the newspaper qualifies as one (1) of the required
publications in the acquiring school corporation and the losing
relinquishing school corporation.
(e) Publication may be made jointly by the losing relinquishing
school corporation and acquiring school corporation.
(f) The remonstrance period runs from the second publication.
SOURCE: IC 20-23-5-10; (11)IN1430.1.9. -->
SECTION 9. IC 20-23-5-10, AS ADDED BY P.L.1-2005,
SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2011]: Sec. 10. (a) A remonstrance under section 8 of this
chapter must be in the following or a substantially similar form:
"The undersigned hereby remonstrate against the annexation of
the following described territory situated in ______ County,
Indiana, whereby it would be transferred from ______ (the
losing
relinquishing corporation) to _______ (the acquiring
corporation):
(Description of the annexed territory sufficient to identify it.)".
The remonstrance may be filed in any number of counterparts. Each
counterpart shall have attached to it the affidavit of the person
circulating it that each signature appearing on the remonstrance was
affixed in the presence of the person circulating the petition and is the
true and lawful signature of the person who made the signature. The
person who makes the affidavit does not have to be one (1) of the
persons who signs the counterpart to which the affidavit is attached.
The remonstrance must be accompanied by a complaint filed by one (1)
or more of the remonstrators (who shall be treated as a representative
of the entire class of remonstrators) and signed by the remonstrator or
the remonstrator's attorney, stating the reasons for the remonstrance.
The reasons for the remonstrance are limited to the following:
(1) There is a procedural defect in the manner in which the
annexation is carried out that is jurisdictional.
(2) The annexed territory does not form a compact area abutting
the acquiring corporation.
(3) The benefits to be derived from the annexation are outweighed
by the detriments, taking into consideration the respective
benefits and detriments to the schools and of the students residing
in the acquiring school corporation, the
losing relinquishing
school corporation, and the annexed territory.
(4) The:
(A) disposition of assets and liabilities of the
losing
relinquishing school corporation;
(B) allocation of school tax receipts between the acquiring
school corporation and the
losing relinquishing school
corporation; and
(C) amount to be paid by the acquiring school corporation as
set out in the annexation resolution;
are inequitable. Except with respect to subdivision (1), the
allegations may be made in the statutory language.
(b) The plaintiff in a remonstrance under section 8 of this chapter
must be the person whose name appears on the complaint. The
defendants in a remonstrance under section 8 of this chapter shall be
both the acquiring school corporation and the
losing relinquishing
school corporation. Service of process shall be made on the defendants
as in other civil actions.
(c) To determine if a petition was timely filed, the time of filing is
the time of filing with the clerk without regard to the time of issuance
of the summons. If the thirtieth day falls on Sunday, a holiday, or any
other day when the clerk's office is not open, the time shall be extended
to the next day when the office is open.
(d) The issues in a remonstrance under section 8 of this chapter are
made up by the complaint. The allegations in the complaint shall be
treated as denied by each defendant. A responsive pleading may not be
filed except that any defendant may, if appropriate, file a motion to
dismiss the remonstrance on the ground that:
(1) the requisite number of qualified remonstrators have not
signed the petition;
(2) the remonstrance was not timely filed; or
(3) the complaint does not state a cause of action.
A responsive pleading to this motion may not be filed. With respect to
a motion under subdivisions (1) and (2), the allegations of the pleading
shall be treated as denied by the remonstrators. To determine whether
there are the requisite number of qualified remonstrators, a person may
not withdraw the person's name after a remonstrance has been filed or
add the person's name to the remonstrance. Any person may, however,
at the trial of the cause and in support or derogation of the substantive
matters in the complaint, introduce into evidence a verified statement
that the person wishes the person's name added to or withdrawn from
the remonstrance. The court may either hear all or a part of the matters
raised by the motion to dismiss separately or may consolidate for trial
all or a part of the matters with the matters relating to the substance of
the case. A complaint may not be dismissed for failure to state a cause
of action if a fair reading of the complaint supports one (1) of the
grounds for remonstrance provided in subsection (a). The court may
permit an amendment of the complaint if the amendment does not state
a new ground of remonstrance.
(e) The trial of a remonstrance shall be conducted as other civil
cases by the court without the intervention of a jury on the issues raised
by the complaint or a motion to dismiss, or both. A change of venue
from a judge may be permitted. A change of venue from the county
may not be permitted. The court shall expedite the hearing of the case.
The court's judgment, except with respect to any matter raised under
subsection (a)(4), shall be either that:
(1) the annexation shall take place;
(2) the annexation shall not take place; or
(3) the remonstrance shall be dismissed.
If the court finds that the remonstrators have proved any of the reasons
for the remonstrance described in subsection (a)(1) through (a)(4), the
court's judgment shall be that the annexation may not take place.
Unless the remonstrators have proved at least one (1) of the reasons for
a remonstrance described in subsection (a)(1) through (a)(4), the court's
judgment shall be that the annexation shall take place. With respect to
any matter raised under subsection (a)(4), the court's judgment may be
either that the disposition, allocation, and amount set out in the
annexing resolution is equitable or that it is inequitable. In the latter
event, the court in the court's judgment shall provide for an equitable
disposition, allocation, and amount. Costs shall follow judgment.
Appeals may be taken from any judgment of the court in the same
manner as appeals are taken in other civil cases.
SOURCE: IC 20-23-5-10.1; (11)IN1430.1.10. -->
SECTION 10. IC 20-23-5-10.1 IS ADDED TO THE INDIANA
CODE AS A
NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2011]:
Sec. 10.1. (a) For the purpose of this
section, a "school age child" is one who:
(1) is not less than four (4) years of age and not more than
nineteen (19) years of age; and
(2) is enrolled in a school.
(b) Disannexation may be initiated by any of the following:
(1) A petition signed on behalf of a majority of the
households:
(A) in which a school age child resides; and
(B) that are located in the territory proposed to be
disannexed.
The individual who signs the petition on behalf of a household
described in this subdivision must be a parent, guardian, or
person having physical custody of the school age child or
children. After the initiation of a disannexation by means of
a petition satisfying the requirements of this subdivision, the
disannexation must be approved by a majority vote of persons
voting in the territory proposed to be disannexed in an
election in the territory under section 10.4 of this chapter.
(2) A petition signed by ten percent (10%) of the number of
registered voters residing in the territory proposed to be
disannexed. After the initiation of a disannexation by means
of a petition satisfying the requirements of this subdivision,
the disannexation must be approved by a majority vote of
persons voting in the territory proposed to be disannexed in
an election in the territory under section 10.4 of this chapter.
(3) A petition signed by at least fifty-five percent (55%) of the
registered voters residing in the territory proposed to be
disannexed.
(c) A petition referred to in subsection (b) must state that the
signers request the disannexation of territory from a school
corporation. The petition must set forth the following information:
(1) The name of the school corporation from which the
territory is to be disannexed.
(2) A description of the boundaries of the territory to be
disannexed. The description must, as nearly as reasonably
possible, be:
(A) by streets and other boundaries known by common
names; and
(B) by legal description, unless a description in addition to
the legal description is necessary to identify the annexed
territory.
(3) Whether the territory is to be annexed to an existing
school corporation or formed into a new school corporation.
(4) If the territory is to be annexed to an existing school
corporation, the name of the existing school corporation.
(5) If the territory is to be formed into a new school
corporation, the following information about the new school
corporation:
(A) The name of the proposed school corporation.
(B) A general description of the boundaries.
(C) The number of members of the board of school
trustees.
(D) The manner in which the permanent board of school
trustees, and, if provided for, the interim board of school
trustees, will be elected or appointed.
(E) The compensation, if any, of the members of the
permanent board of school trustees and, if provided for,
the interim board of school trustees.
(d) A petition referred to in subsection (b) must show:
(1) the date on which each person signed the petition;
(2) the person's residence address on that date; and
(3) in the case of a petition under subsection (b)(1), the name
or names of the school age children residing at the address.
(e) A petition referred to in subsection (b) may be executed in
several counterparts, the total of which constitutes the petition
described in this section. An affidavit of the person circulating a
counterpart must be attached to the counterpart. The affidavit
must state that each signature appearing on the counterpart was
affixed in the person's presence and is the true and lawful
signature of the signer.
(f) Each signer of a petition referred to in subsection (b) may
withdraw the signer's signature from the petition before the
petition is filed under section 10.2, 10.3, or 10.5 of this chapter.
Names may not be added to the petition after the petition is filed
under section 10.2, 10.3, or 10.5 of this chapter.
(g) The following apply to a proposed disannexation under this
chapter:
(1) In order for a territory that is to be disannexed to be
annexed to an existing school corporation, the acquiring
school corporation must adopt a resolution containing the
elements described in section 8(1) of this chapter and file a
copy of the resolution with the state board before the filing of:
(A) the certification by the state board under section
10.2(b) of this chapter; or
(B) the certification by the county clerk or clerks under
section 10.3(b) of this chapter.
(2) In order for a territory that is to be disannexed to be
formed into a new school corporation, the territory must have
an average daily attendance of students who are residents in
the territory, in accordance with the applicable regulations of
the state superintendent, of at least two hundred seventy (270)
students in grades 9 through 12 or at least one thousand
(1,000) students in grades 1 through 12, and an assessed
valuation per student of at least five thousand dollars
($5,000).
SOURCE: IC 20-23-5-10.2; (11)IN1430.1.11. -->
SECTION 11. IC 20-23-5-10.2 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2011]: Sec. 10.2. (a) A petition described in
section 10.1(b)(1) of this chapter must be filed with the state board.
The state board shall, within sixty (60) days of the filing of the
petition, determine:
(1) whether the petition has been signed on behalf of a
majority of the households in the territory proposed to be
annexed in which school age children reside; and
(2) whether the petition otherwise complies with the
requirements of section 10.1 of this chapter.
In making its determination, the state board may examine
information from the school corporation currently serving the
territory proposed to be disannexed. The determination of the state
board is final and conclusive.
(b) If the state board determines that a petition described in
section 10.1(b)(1) of this chapter meets the requirements of section
10.1 of this chapter and that the petition has been signed on behalf
of a majority of the households in the territory proposed to be
annexed in which school age children reside, the state board shall
certify its determination to the clerk of the circuit court of the
county or counties in which the territory is located.
SOURCE: IC 20-23-5-10.3; (11)IN1430.1.12. -->
SECTION 12. IC 20-23-5-10.3 IS ADDED TO THE INDIANA
CODE AS A
NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2011]:
Sec. 10.3. (a) A petition described in
section 10.1(b)(2) of this chapter must be filed with the clerk of the
circuit court of the county or counties in which the territory
proposed to be disannexed is located.
(b) After receiving a petition under subsection (a), the clerk of
the circuit court shall make a certification under the clerk's hand
and seal of the clerk's office as to:
(1) the number of signers of the petition;
(2) the number of signers of the petition who are registered
voters residing in:
(A) the territory proposed to be disannexed; or
(B) the part of the territory proposed to be disannexed that
is located in the clerk's county;
as disclosed by the voter registration records of the county;
and
(3) the number of registered voters residing in:
(A) the territory proposed to be disannexed; or
(B) the part of the territory proposed to be disannexed that
is located in the clerk's county, as disclosed by the voter
registration records of the county; and
(4) the date of the filing of the petition with the clerk.
If a territory proposed to be disannexed includes only part of a
voting precinct, the clerk of the circuit court shall ascertain, from
any means available, the number of registered voters residing in
the part of the voting precinct that is within the territory proposed
to be disannexed.
(c) In addition to making the certification under subsection (b)
as to whether the petition was signed by ten percent (10%) of the
number of registered voters residing in the territory proposed to
be disannexed, the clerk of the circuit court shall determine
whether the petition otherwise meets the requirements of section
10.1 of this chapter
(d) The clerk of the circuit court shall make the certification
required by subsection (b) and the determination required by
subsection (c) not later than thirty (30) days after the filing of the
petition under subsection (a), excluding from the calculation of that
period any time during which the registration records are
unavailable to the clerk. In certifying the number of registered
voters, the clerk shall disregard any signature on the petition that
was not made within the ninety (90) days that immediately precede
the filing of the petition with the clerk, as shown by the dates set
out in the petition. The clerk shall establish a record of the
certification in the clerk's office and shall file the certification with
the state board.
SOURCE: IC 20-23-5-10.4; (11)IN1430.1.13. -->
SECTION 13. IC 20-23-5-10.4 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2011]: Sec. 10.4. (a) If:
(1) the state board, under section 10.2(b) of this chapter,
certifies to the clerk of the circuit court of the county or
counties in which a territory proposed to be disannexed is
located that a petition described in section 10.1(b)(1) of this
chapter:
(A) was signed on behalf of a majority of the households in
the territory proposed to be disannexed in which school
aged children reside; and
(B) otherwise meets the requirements of section 10.1 of this
chapter; or
(2) the clerk of the circuit court of the county or counties in
which a territory proposed to be disannexed is located, under
section 10.3 of this chapter, certifies that the petition
described section 10.1(b)(2) of this chapter:
(A) has been signed by ten percent (10%) of the number of
registered voters residing in the territory proposed to be
disannexed; and
(B) otherwise meets the requirements of section 10.1 of this
chapter;
the clerk of the circuit court shall take the action specified in
subsection (b).
(b) If subsection (a) applies to a petition described in section
10.1(b)(1) or section 10.1(b)(2) of this chapter, the clerk of the
circuit court shall:
(1) certify to the county election board the public question of
whether the disannexation, as described in the petition under
section 10.1(c) of this chapter, should take place; and
(2) order the county election board:
(A) to place the public question on the ballot for a primary
election or general election under IC 3-10-9 as a local
public question, if subsection (c) applies; or
(B) to conduct a special election under IC 3-10-8-1(5) at
which the registered voters residing in the territory of the
proposed disannexation may vote on the public question,
if subsection (d) applies.
(c) If:
(1) a primary election at which county officials are
nominated; or
(2) a general election at which county officials are elected;
and for which the question can be certified in compliance with
IC 3-10-9-3 is to be held not within six (6) months after the
certification by the state board described in subsection (a)(1) or the
certification by the clerk of court described in subsection (a)(2), the
question of whether the disannexation should take place shall be
placed as a public question on the ballot for the primary election
or general election.
(d) If a primary or general election will not be held within six (6)
months after the certification by the state board described in
subsection (a)(1) or the certification by the clerk of court described
in subsection (a)(2), the question of whether the disannexation
should take place shall be placed on the ballot of a special election
IC 3-10-8-1(5). The special election shall be held:
(1) not less than sixty (60) days; and
(2) not more than one hundred twenty (120) days;
after the certification described in subsection (a)(1) or subsection
(a)(2).
(e) The county election board, under IC 5-3-1, shall give notice
of:
(1) the public question on the ballot at the primary election or
general election, if subsection (c) applies; or
(2) the special election, if subsection (d) applies.
(f) The notice required under subsection (e) must:
(1) clearly state that the election is called to afford the
registered voters an opportunity to approve or reject a
proposal for the disannexation of territory from an existing
school corporation;
(2) set forth a general description of the boundaries of the
territory to be disannexed, as set out in the petition;
(3) if the territory is to be annexed to an existing school
corporation, state the name of the existing school corporation;
(4) if the territory is to be formed into a new school
corporation, state the name of the proposed community school
corporation; and
(5) designate the date, time, and voting place or places at
which the election will be held.
(g) If subsection (c) applies, the county election board shall place
the public question on the ballot in the form prescribed by
IC 3-10-9-4. Except as otherwise provided under in this chapter,
the election is governed by IC 3.
(h) If subsection (d) applies, the special election conducted
under this section shall be under the direction of the county
election board of the county in which the territory proposed for
disannexation is located. The election board shall take all steps
necessary to carry out the special election. Except as otherwise
provided under in this chapter, the special election is governed by
IC 3.
(i) The certified result of:
(1) the local public question, if subsection (c) applies; or
(2) the special election, if subsection (d) applies;
shall be filed with the state board.
(j) If the certified result filed with the state board under
subsection (i) was approval of the disannexation by a majority of
the persons voting on the question, the state board:
(1) shall immediately cause notice of the result to be published
in the county or counties where the disannexation will take
place; and
(2) declare the disannexation final and approve either:
(A) the annexation of the territory to the acquiring school
corporation; or
(B) the creation of the new corporation consisting of the
disannexed territory;
by adopting a resolution to that effect.
(k) Notice of the adoption of a resolution under subsection (j)(2)
must be published at least once in one (1) newspaper of general
circulation published in the county or counties where the
disannexation will take place.
SOURCE: IC 20-23-5-10.5; (11)IN1430.1.14. -->
SECTION 14. IC 20-23-5-10.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2011]: Sec. 10.5. (a) A petition described in
section 10.1(b)(3) of this chapter must be filed with the clerk of the
circuit court of the county or counties in which the territory
proposed to be disannexed is located.
(b) After receiving a petition under subsection (a), the clerk of
the circuit court shall make a certification under the clerk's hand
and seal of the clerk's office as to whether the petition is signed by
at least fifty-five percent (55%) of the registered voters residing in
territory proposed to be disannexed.
(c) If the clerk of the circuit court certifies under subsection (b)
that the petition is signed by at least fifty-five percent (55%) of the
registered voters residing in territory proposed to be disannexed,
the state board shall, within thirty (30) days after the filing of the
clerk's certification, conduct a hearing in the county in which the
greater part of the territory to be disannexed is located. At least
ten (10) days before the date of a hearing, notice of the hearing
shall be given by publication at least once in one (1) newspaper of
general circulation published in the county.
(d) At the hearing held under subsection (c), the state board
whether the receive public comment on whether the petition and
the proposed disannexation meet all of the requirements of section
10.1 of this chapter, including section 10.1(g)(1) or section
10.1(g)(2), whichever is applicable.
(e) Within thirty (30) days after the hearing held under
subsection (c), the state board shall meet and determine whether all
of the requirements for disannexation have been met. If the state
board determines that all the requirements have been met, the
state board shall declare the disannexation final and approve
either:
(1) the annexation of the territory to the acquiring school
corporation; or
(2) the creation of the new corporation consisting of the
disannexed territory;
by adopting a resolution to that effect.
(f) Notice of the adoption of a resolution under subsection (e)
must be published at least once in one (1) newspaper of general
circulation published in the county or counties where the
disannexation will take place.
SOURCE: IC 20-23-5-10.6; (11)IN1430.1.15. -->
SECTION 15. IC 20-23-5-10.6 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2011]: Sec. 10.6. (a) A disannexation and
annexation to an existing school corporation or creation of a new
community school corporation under section 10.4 or 10.5 of this
chapter takes effect on the earlier of:
(1) July 1; or
(2) January 1;
that next follows the date of the publication of the notice by the
state board.
(b) The acquiring or new school corporation shall assume a part
of all installments of principal and interest on any indebtedness of
the relinquishing school corporation (other than current
obligations or temporary borrowing) that fall due after the end of
the last calendar year in which the relinquishing school
corporation is entitled to receive current tax receipts from
property tax levies on the property of the disannexed territory. The
part consists of the following:
(1) All installments relating to any indebtedness incurred in
connection with the acquisition or construction of any
building located in the disannexed territory.
(2) A proportion of all installments relating to any other
indebtedness that is in the same proportion as the valuation of
the real property in the disannexed territory bears to the
valuation of all the real property in the relinquishing school
corporation, as the indebtedness is assessed for general
taxation immediately before disannexation.
(c) The acquiring or new school corporation shall make the
payments and assume the obligations provided for a school
corporation acquiring territory or a building or buildings under
IC 20-47-5.
(d) If a public official fails to perform a duty required of the
official under this chapter within the time prescribed in this
section, the omission does not invalidate the proceedings taken
under this chapter.
(e) An action:
(1) to contest the validity of the disannexation of territory and
the annexation of territory to an acquiring school corporation
or the creation of a community school corporation under this
section;
(2) to declare that a community school corporation;
(A) has not been validly formed or created; or
(B) is not validly existing; or
(3) to enjoin the disannexation, annexation, or operation of a
community school corporation;
may not be instituted later than thirty (30) days after the date of
publication of the notice under section 10.4(k) or 10.5(f) of this
chapter. There shall be no remonstrance to a disannexation.
SOURCE: IC 20-23-5-11; (11)IN1430.1.16. -->
SECTION 16. IC 20-23-5-11, AS ADDED BY P.L.1-2005,
SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2011]: Sec. 11. (a) Within sixty (60) days after the annexation
or disannexation takes place, the governing body of the acquiring
school corporation and losing relinquishing school corporation shall
adopt a plan determining the manner in which the governing body shall
be constituted. The plan shall be adopted in accordance with the
requirements and procedures of IC 20-23-8, except as set out in
subsection (b).
(b) The adoption of a plan by the governing body in accordance with
IC 20-23-8-10 and its submission to the state board under
IC 20-23-8-15 are the only procedures required when an existing plan
is changed as follows:
(1) All governing body members are elected at large, and there
are no governing body member residency districts.
(2) Governing body members are elected from governing body
member residency districts, and the annexed territory is added to
or deleted from one (1) or more districts.
(3) A governing body member is appointed from a given area or
district, and the annexed territory is added to or deleted from one
(1) or more districts or areas.
(4) A governing body member is elected solely by the voters in a
school governing body member district, but the addition or
deletion of the annexed territory to or from an existing district
does not constitute a denial of equal protection of the laws.
If a school corporation elects or appoints members of its governing
body both from a school governing body member district encompassing
the entire school corporation and from smaller districts, the governing
body of the acquiring school corporation shall add the annexed territory
both to the district consisting of the entire school corporation and to
one (1) or more smaller districts. In a comparable situation, the losing
relinquishing school corporation shall delete the annexed territory
both from the district consisting of the entire school corporation and
from any smaller district or districts. The change in the plan becomes
effective upon its approval by the state board. The application of this
subsection does not limit the initiation of, or further changes in, any
plan under IC 20-23-8.
SOURCE: IC 20-23-5-12; (11)IN1430.1.17. -->
SECTION 17. IC 20-23-5-12, AS AMENDED BY P.L.2-2006,
SECTION 94, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2011]: Sec. 12. (a) With respect to whether the disposition of
the assets and liabilities of the
losing relinquishing school corporation,
allocation of school tax receipts, and the amount to be paid by the
acquiring school corporation
in an annexation under section 8 of this
chapter is equitable, the court, subject to subsection (b), shall be
satisfied that the annexing resolution conforms substantially to the
following standards:
(1) The acquiring school corporation shall assume a part of all
installments of principal and interest on any indebtedness of the
losing relinquishing school corporation (other than current
obligations or temporary borrowing) that fall due after the end of
the last calendar year in which the losing relinquishing school
corporation is entitled to receive current tax receipts from
property tax levies on the property of the annexed territory. The
part consists of the following:
(A) All installments relating to any indebtedness incurred in
connection with the acquisition or construction of any building
located in the annexed territory.
(B) A proportion of all installments relating to any other
indebtedness that is the same proportion as the valuation of the
real property in the annexed territory bears to the valuation of
all the real property in the losing relinquishing school
corporation, as the indebtedness is assessed for general
taxation immediately before annexation.
(2) The acquiring school corporation shall make the payments and
assume the obligations provided for a school corporation
acquiring territory or a building or buildings under IC 20-47-5.
(b) Standards under subsection (a) may not be applicable to the
extent the losing relinquishing school corporation and acquiring
school corporation otherwise agree in a situation where all or a
majority of the students in the annexed territory have been transferred
from the losing relinquishing school corporation to the acquiring
school corporation for the five (5) school years immediately preceding
the transfer. The agreement between school corporations may not
prejudice the rights of bondholders or lessors whose rights against the
losing relinquishing school corporation and acquiring school
corporation shall, upon enforcement, be allocated between the losing
relinquishing school corporation and acquiring school corporation in
accordance with subsection (a)(1) and (a)(2).
SOURCE: IC 20-23-5-13; (11)IN1430.1.18. -->
SECTION 18. IC 20-23-5-13, AS ADDED BY P.L.1-2005,
SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2011]: Sec. 13. (a) If a remonstrance to an annexation under
section 8 of this chapter is filed on grounds other than the grounds in
section 10(a)(4) of this chapter, annexation does not become effective
until final judgment in the remonstrance suit. Judgment may not be
considered to be final until:
(1) the time for taking an appeal has expired; or
(2) final judgment in the appeal is entered.
A judgment of the trial court dismissing a remonstrance is a final
judgment. If judgment is against the annexation, a further annexation
of the annexed territory may not take place for two (2) years after the
date the remonstrance was filed. A final judgment may not prevent
either the acquiring school corporation or acquiring school corporation
and losing relinquishing school corporation from rescinding the
annexation resolution. If the suit is dismissed without prejudice, the
two (2) year prohibition does not apply unless a subsequent annexation
resolution is adopted primarily for the purpose of harassment and not
for some other purpose, including the correction of procedural
irregularities or a substantial change in the annexed territory or the
annexation resolution.
(b) If the remonstrance relates solely to any matter raised under
section 10(a)(4) of this chapter, the annexation takes effect at the time
provided under section 8 of this chapter.
SOURCE: IC 20-23-5-14; (11)IN1430.1.19. -->
SECTION 19. IC 20-23-5-14, AS ADDED BY P.L.1-2005,
SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2011]: Sec. 14. (a) Laws or parts of laws in conflict with this
chapter are repealed. This chapter may not be construed to repeal any
part of IC 20-23-4 or any statute concerning the consolidation of two
(2) or more school corporations, to which this chapter is
supplementary, except to the extent that IC 20-23-4 conflicts with this
section.
(b) An annexation that is undertaken under or that results by
operation of any section of this chapter may require, for its
effectiveness, any approval of any county committee or state
commission or committee created under, or referred to in, IC 20-23-4.
SOURCE: IC 20-23-6-16; (11)IN1430.1.20. -->
SECTION 20. IC 20-23-6-16, AS ADDED BY P.L.1-2005,
SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2011]: Sec. 16.
(a) It is the policy of the state that whenever
a community school corporation (as defined in IC 20-23-4-3) seeks to:
(1) reorganize into a community school corporation under
IC 20-23-4 or IC 20-23-16-1 through IC 20-23-16-11;
(2) enter into a territorial annexation under IC 20-23-5 either as
an acquiring school corporation or a
losing relinquishing school
corporation (as defined in
IC 20-23-5-4); IC 20-23-5-4.1;
(3) consolidate with another school corporation under IC 20-23-6;
or
(4) consolidate with another school corporation into one (1)
metropolitan school district under IC 20-23-7;
the school corporation shall give consideration to the educational
opportunities for students, local community interest, the effect on the
community as a whole, and the economic interests of the community
relative to establishing the boundaries of the school corporation that is
involved in the school corporation reorganization, consolidation, or
annexation attempt.
(b) The provisions of this section are not applicable to school
disannexation under IC 20-23-5.