Bill Text: IN SB0069 | 2011 | Regular Session | Amended


Bill Title: Annexation.

Spectrum: Partisan Bill (Republican 4-0)

Status: (Engrossed - Dead) 2011-03-29 - First reading: referred to Committee on Government and Regulatory Reform [SB0069 Detail]

Download: Indiana-2011-SB0069-Amended.html


February 11, 2011





SENATE BILL No. 69

_____


DIGEST OF SB 69 (Updated February 10, 2011 8:49 am - DI 87)



Citations Affected: IC 8-1; IC 36-4; IC 36-9.

Synopsis: Annexation. Provides, with certain exceptions, that when a municipality initiates an annexation, the municipality must file a petition with the court containing the signatures of: (1) at least 60% of the landowners in the territory proposed to be annexed; or (2) the owners of more than 75% in assessed valuation of the land in the annexed territory. Provides that, if the court finds that the petition has a sufficient number of signatures, a hearing must be conducted to review the annexation and fiscal plan. Allows a person to intervene as a party at the hearing to review the annexation and fiscal plan if: (1) the person is an owner of property in the territory; (2) the person and no other owner of the property have signed the petition filed by the municipality; and (3) the person appeared at the hearing conducted by the municipality on the annexation ordinance or submitted a remonstrance or other document into the record of the hearing. Eliminates a procedure that requires the court to order an annexation not to take place if certain circumstances are shown. Removes provisions allowing a municipality to obtain waivers of a landowner's right to remonstrate against an annexation. Provides that in all circumstances an annexation becomes effective when the ordinance or judgment is filed by the municipal clerk. Allows all municipalities to annex noncontiguous territory for the purpose of: (1) an industrial park; (2) a shopping center or mall; or (3) an economic development area. (Current law allows only certain municipalities to annex noncontiguous territory for purposes of an industrial park.). Repeals provisions concerning: (1) waivers of remonstrance against an annexation; (2) filing a remonstrance against an annexation; and (3) settlement agreements in lieu of annexation.

Effective: July 1, 2011.





Gard , Buck, Eckerty




    January 5, 2011, read first time and referred to Committee on Local Government.
    February 10, 2011, amended, reported favorably _ Do Pass.






February 11, 2011

First Regular Session 117th General Assembly (2011)


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.
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 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 2010 Regular Session of the General Assembly.

SENATE BILL No. 69



    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:

SOURCE: IC 8-1-2.3-6; (11)SB0069.1.1. -->     SECTION 1. IC 8-1-2.3-6 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 6. The boundaries of the assigned service areas of electricity suppliers may not be changed except under any one (1) of the following circumstances:
        (1) If a municipality which owns and operates an electric utility system furnishing retail electric service to the public annexes an area beyond the assigned service area of its municipally owned electric utility, the municipally owned electric utility may petition the commission to change the assigned service area of the municipally owned electric utility to include the annexed area, according to the following procedures:
            (A) The municipally owned electric utility shall file its petition with the commission not later than sixty (60) days after the annexation becomes effective. The petition must include a certified copy of the annexation ordinance, which serves as conclusive evidence that the area has been lawfully annexed

and is part of the municipality. After the filing of a petition under this subdivision, the commission shall promptly enter an order changing the assigned service area facet maps of the municipally owned electric utility and incumbent electricity suppliers to include the annexed area within the assigned service area of the municipally owned electric utility and giving the right to serve and immediate possession to the municipally owned electric utility. The commission order is enforceable in court pending an appeal of that order. An appellant from a court order enforcing a commission order under this subdivision is not entitled to a stay of the court order pending appeal. However, this subdivision does not apply to incorporations, consolidations, mergers, or annexations that are under IC 36-4-3-4(a)(2), IC 36-4-3-4(a)(3), IC 36-4-3-4(b), IC 36-4-3-4(h), or IC 36-4-3-4.1. or that are not contiguous under IC 36-4-3-13(b) or IC 36-4-3-13(c).
            (B) Not later than thirty (30) days after filing a petition under this subdivision, the municipally owned electric utility shall determine for each affected incumbent electricity supplier and pay to that supplier an amount not less than the value of all the electric utility property of the incumbent electricity supplier that is devoted to furnishing retail electric service within the additional assigned service area at its then reproduction cost new depreciated value. In addition, the municipally owned electric utility shall pay the incumbent electricity supplier severance damages in an amount equal to:
                (i) the value of the incumbent electricity supplier's distribution and substation facilities dedicated to and located within the annexed area or relocated by reason of the annexation or an amount equal to two and one-half (2 1/2) times the incumbent electricity supplier's gross revenues from electricity sales in the annexed area during the twelve (12) month period immediately preceding the date the annexation ordinance became effective, whichever is greater; plus
                (ii) if additional permanent service locations or service accounts are established in the annexed area during the five (5) year period beginning on the effective date of the annexation ordinance, one-tenth of one cent ($0.001) for each kilowatt hour of electricity sold to each of those permanent service locations or service accounts for sales

that occur during a five (5) year period beginning on the date each service location or service account is established, up to a maximum of one hundred seventy thousand (170,000) kilowatt hours per service account or service location for each monthly billing period.
            However, the municipally owned electric utility is not required to pay severance damages under item (ii) if, at the time each annual payment otherwise would accrue, it is purchasing all of its requirements for electric power and energy, except for generation directly provided by the municipally owned electric utility or by a customer, from the incumbent electricity supplier. Severance damages must be paid not later than thirty (30) days after the end of each calendar year in which severance damages have accrued. The municipally owned electric utility and incumbent electricity suppliers shall cooperate to calculate the amount of any severance damages and shall furnish to each other all information and records reasonably necessary for the determination and verification of severance damages. If the municipally owned electric utility and incumbent electricity suppliers cannot agree on the amount of severance damages the municipally owned electric utility is to pay, the commission shall determine the amount and order payment in accordance with this clause. Not later than twenty (20) days after making a payment, the municipally owned electric utility shall certify to the commission and to any affected incumbent electricity supplier that it has paid the amounts required under this clause.
            (C) If the municipally owned electric utility fails to make a payment under clause (B), an affected incumbent electricity supplier may, not later than sixty (60) days after the payment is due and after giving the municipally owned electric utility reasonable notice of and an opportunity to cure the defect, file with the commission a petition alleging that a payment due under clause (B) has not been made. If the commission finds after notice and hearing that any payments owed to the incumbent electricity supplier have not been timely and fully paid, the commission shall order the municipally owned electric utility to pay:
                (i) the delinquent payments by a date determined by the commission;
                (ii) accrued interest at the rate set forth in IC 24-4.6-1-102; and


                (iii) the incumbent electricity supplier's costs of filing and prosecuting a petition under this clause.
            If the commission finds against the incumbent electricity supplier, it shall order the incumbent electricity supplier to pay the costs incurred by the municipally owned electric utility in defending against the incumbent electricity supplier's petition.
            (D) A certified copy of a final commission order that:
                (i) determines and orders the payment of severance damages under clause (B); or
                (ii) orders the payment of delinquent payments, interest, and costs under clause (C);
            may be filed with the clerk of the circuit or superior court of any county in which part or all of the annexed area is located. A commission order that is filed in a court under this clause may be enforced and executed in the same manner as if it were a final judgment of that court.
        (2) Upon mutual agreement of the affected electricity suppliers and approval of the commission. If notice of a verified request for a change of boundary lines by mutual agreement under this subdivision is published in a newspaper of general circulation in every county in which the boundary lines are located and an affected electricity customer does not request a hearing within twenty (20) days of the last date of publication, the commission may approve the change without a hearing. The commission shall approve a boundary line change under this subdivision unless the commission finds, after a public hearing, that the change would cause:
            (A) duplication of electric utility facilities;
            (B) waste of materials or resources; or
            (C) uneconomic, inefficient, or inadequate electric service to the public.
        (3) In the case where a landowner owns a single tract of land that is intersected by the boundary lines of two (2) or more assigned service areas, and retail electric service can best be supplied by only one (1) electricity supplier, or in the case where a customer or customers are housed in a single structure or constitute a single governmental, industrial, or institutional operation, and the electricity suppliers involved are unable to agree which shall furnish the electric service, any of the electricity suppliers may submit the matter to the commission for its determination based upon public convenience and necessity. If, after notice and hearing, the commission determines that one (1) or more

electricity suppliers are to supply the required retail electric service and the boundaries of an assigned service area are to be changed, the assigned service area maps of the electricity suppliers shall be changed to reflect the new boundaries.

SOURCE: IC 36-4-3-0.1; (11)SB0069.1.2. -->     SECTION 2. IC 36-4-3-0.1 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 0.1. The addition of and amendments made to sections 3.1, 4, 5, 5.5, 7, 7.1, 8, 12, 13, 14, 15, 16, and 22 of this chapter by legislation enacted during the 2011 regular session of the general assembly apply to an annexation for which an annexation ordinance is adopted after June 30, 2011.
SOURCE: IC 36-4-3-3.1; (11)SB0069.1.3. -->     SECTION 3. IC 36-4-3-3.1 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 3.1. (a) This section does not apply to an annexation under section 4(a)(2), 4(a)(3), 4(b), 4(h), or 4.1 of this chapter.
    (b) A municipality shall develop and adopt a written fiscal plan and establish a definite policy by resolution of the legislative body that meets the requirements set forth in section 13 of this chapter.
    (c) Except as provided in subsection (d), the municipality shall establish and adopt the written fiscal plan before mailing the notification to landowners in the territory proposed to be annexed under section 2.2 of this chapter.
    (d) In an annexation under section 5, or 5.1, or 5.5 of this chapter, the municipality shall establish and adopt the written fiscal plan before adopting the annexation ordinance.
SOURCE: IC 36-4-3-4; (11)SB0069.1.4. -->     SECTION 4. IC 36-4-3-4, AS AMENDED BY P.L.182-2009(ss), SECTION 402, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 4. (a) The legislative body of a municipality may, by ordinance, annex any of the following:
        (1) Territory that is contiguous to the municipality.
        (2) Territory that is not contiguous to the municipality and is occupied by a municipally owned or operated airport or landing field.
        (3) Territory that is not contiguous to the municipality but is found by the legislative body to be occupied by a municipally owned or regulated sanitary landfill, golf course, or hospital. However, if territory annexed under this subsection ceases to be used as a municipally owned or regulated sanitary landfill, golf course, or hospital for at least one (1) year, the territory reverts to the jurisdiction of the unit having jurisdiction before the annexation if the unit that had jurisdiction over the territory still exists. If the unit no longer exists, the territory reverts to the

jurisdiction of the unit that would currently have jurisdiction over the territory if the annexation had not occurred. The clerk of the municipality shall notify the offices required to receive notice of a disannexation under section 19 of this chapter when the territory reverts to the jurisdiction of the unit having jurisdiction before the annexation.
    (b) This subsection applies to municipalities in a county having a population of:
        (1) more than seventy-three thousand (73,000) but less than seventy-four thousand (74,000);
        (2) more than seventy-one thousand four hundred (71,400) but less than seventy-three thousand (73,000);
        (3) more than seventy thousand (70,000) but less than seventy-one thousand (71,000);
        (4) more than forty-five thousand (45,000) but less than forty-five thousand nine hundred (45,900);
        (5) more than forty thousand nine hundred (40,900) but less than forty-one thousand (41,000);
        (6) more than thirty-eight thousand (38,000) but less than thirty-nine thousand (39,000);
        (7) more than thirty thousand (30,000) but less than thirty thousand seven hundred (30,700);
        (8) more than twenty-three thousand five hundred (23,500) but less than twenty-four thousand (24,000);
        (9) more than one hundred eighty-two thousand seven hundred ninety (182,790) but less than three hundred thousand (300,000); or
        (10) more than thirty-four thousand nine hundred fifty (34,950) but less than thirty-six thousand (36,000).
     (b) Except as provided in subsection (c), the legislative body of a municipality to which this subsection applies may, by ordinance, annex territory that:
         (1) is not contiguous to the municipality;
         (2) has its entire area not more than two (2) miles from the municipality's boundary;
         (3) is to be used for:
             (A) an industrial park containing one (1) or more businesses;
             (B) a shopping center or mall; or
            (C) an economic development area under IC 36-7-14;
and
         (4) is either owned by the municipality or by a property owner who consents to the annexation.
However, if territory annexed under this subsection is not used as an

industrial park for the purpose under subdivision (3) for which the territory was annexed within five (5) years after the date of passage of the annexation ordinance, or if the territory ceases to be used as an industrial park for the purpose under subdivision (3) for which the territory was annexed for at least one (1) year, the territory reverts to the jurisdiction of the unit having jurisdiction before the annexation if the unit that had jurisdiction over the territory still exists. If the unit no longer exists, the territory reverts to the jurisdiction of the unit that would currently have jurisdiction over the territory if the annexation had not occurred. The clerk of the municipality shall notify the offices entitled to receive notice of a disannexation under section 19 of this chapter when the territory reverts to the jurisdiction of the unit having jurisdiction before the annexation.
    (c) A city in a county with a population of more than two hundred thousand (200,000) but less than three hundred thousand (300,000) may not annex territory as prescribed in subsection (b) until the territory is zoned by the county for industrial purposes.
    (d) Notwithstanding any other law, territory that is annexed under subsection (b) or (h) is not considered a part of the municipality for the purposes of:
        (1) annexing additional territory:
            (A) in a county that is not described by clause (B); or
            (B) in a county having a population of more than two hundred thousand (200,000) but less than three hundred thousand (300,000), unless the boundaries of the noncontiguous territory become contiguous to the city, as allowed by Indiana law;
        (2) expanding the municipality's extraterritorial jurisdictional area; or
        (3) changing an assigned service area under IC 8-1-2.3-6(1).
    (e) As used in this section, "airport" and "landing field" have the meanings prescribed by IC 8-22-1.
    (f) As used in this section, "hospital" has the meaning prescribed by IC 16-18-2-179(b).
    (g) An ordinance adopted under this section must assign the territory annexed by the ordinance to at least one (1) municipal legislative body district.
    (h) This subsection applies to a city having a population of more than thirty-one thousand (31,000) but less than thirty-two thousand (32,000). The legislative body of a city may, by ordinance, annex territory that:
        (1) is not contiguous to the city;
        (2) has its entire area not more than eight (8) miles from the city's

boundary;
        (3) does not extend more than:
            (A) one and one-half (1 1/2) miles to the west;
            (B) three-fourths (3/4) mile to the east;
            (C) one-half (1/2) mile to the north; or
            (D) one-half (1/2) mile to the south;
        of an interchange of an interstate highway (as designated by the federal highway authorities) and a state highway (as designated by the state highway authorities); and
        (4) is owned by the city or by a property owner that consents to the annexation.

SOURCE: IC 36-4-3-5; (11)SB0069.1.5. -->     SECTION 5. IC 36-4-3-5 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 5. (a) A municipality may not:
        (1) initiate or promote an annexation petition; or
        (2) collect signatures on an annexation petition;
under this section.

    (a) (b) If the owners of land located outside of but contiguous to a municipality want to have territory containing that land annexed to the municipality, they may file with the legislative body of the municipality a petition:
        (1) signed by at least:
            (A) fifty-one percent (51%) of the owners of land in the territory sought to be annexed; or
            (B) the owners of seventy-five percent (75%) of the total assessed value of the land for property tax purposes; and
        (2) requesting an ordinance annexing the area described in the petition.
    (b) (c) The petition circulated by the landowners must include on each page where signatures are affixed a heading that is substantially similar to the following:
    "PETITION FOR ANNEXATION INTO THE (insert whether city or town) OF (insert name of city or town).".
    (c) (d) Except as provided in section 5.1 of this chapter, if the legislative body fails to pass the ordinance within one hundred fifty (150) days after the date of filing of a petition under subsection (a), (b), the petitioners may file a duplicate copy of the petition in the circuit or superior court of a county in which the territory is located, and shall include a written statement of why the annexation should take place. Notice of the proceedings, in the form of a summons, shall be served on the municipality named in the petition. The municipality is the defendant in the cause and shall appear and answer.
    (d) (e) The court shall hear and determine the petition without a

jury, and shall order the proposed annexation to take place only if the evidence introduced by the parties establishes that:
        (1) essential municipal services and facilities are not available to the residents of the territory sought to be annexed;
        (2) the municipality is physically and financially able to provide municipal services to the territory sought to be annexed;
        (3) the population density of the territory sought to be annexed is at least three (3) persons per acre; and
        (4) the territory sought to be annexed is contiguous to the municipality.
If the evidence does not establish all four (4) of the preceding factors, the court shall deny the petition and dismiss the proceeding.
    (e) (f) This subsection does not apply to a town that has abolished town legislative body districts under IC 36-5-2-4.1. An ordinance adopted under this section must assign the territory annexed by the ordinance to at least one (1) municipal legislative body district.

SOURCE: IC 36-4-3-5.1; (11)SB0069.1.6. -->     SECTION 6. IC 36-4-3-5.1 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 5.1. (a) This section applies to an annexation in which owners of land located outside but contiguous to a municipality file a petition with the legislative body of the municipality:
        (1) requesting an ordinance annexing the area described in the petition; and
        (2) signed by one hundred percent (100%) of the landowners that reside within the territory that is proposed to be annexed.
    (b) Sections 2.1 and 2.2 of this chapter do not apply to an annexation under this section.
    (c) The petition circulated by the landowners must include on each page where signatures are affixed a heading that is substantially similar to the following:
    "PETITION FOR ANNEXATION INTO THE (insert whether city or town) OF (insert name of city or town).".
    (d) The municipality may:
        (1) adopt an annexation ordinance annexing the territory; and
        (2) adopt a fiscal plan and establish a definite policy by resolution of the legislative body;
after the legislative body has held a public hearing on the proposed annexation.
    (e) The municipality may introduce and hold the public hearing on the annexation ordinance not later than thirty (30) days after the petition is filed with the legislative body. Notice of the public hearing may be published one (1) time in accordance with IC 5-3-1 at least

twenty (20) days before the hearing. All interested parties must have the opportunity to testify at the hearing as to the proposed annexation.
    (f) The municipality may adopt the annexation ordinance not earlier than fourteen (14) days after the public hearing under subsection (e).
    (g) A landowner may withdraw the landowner's signature from the petition not more than thirteen (13) days after the municipality adopts the fiscal plan by providing written notice to the office of the clerk of the municipality. If a landowner withdraws the landowner's signature, the petition shall automatically be considered a voluntary petition that is filed with the legislative body under section 5 of this chapter, fourteen (14) days after the date the fiscal plan is adopted. All provisions applicable to a petition initiated under section 5 of this chapter apply to the petition.
    (h) If the municipality does not adopt an annexation ordinance within sixty (60) days after the landowners file the petition with the legislative body, the landowners may file a duplicate petition with the circuit or superior court of a county in which the territory is located. The court shall determine whether the annexation shall take place as set forth in section 5 of this chapter.
    (i) A remonstrance under section 11 of this chapter may not be filed. However, an appeal under section 15.5 of this chapter may be filed.
    (j) (i) In the absence of an appeal under section 15.5 of this chapter, an annexation ordinance adopted under this section takes effect not less than thirty (30) days after the adoption of the ordinance and upon the filing and recording of the ordinance under section 22 of this chapter.

SOURCE: IC 36-4-3-5.5; (11)SB0069.1.7. -->     SECTION 7. IC 36-4-3-5.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 5.5. (a) This section:
        (1) applies to an annexation ordinance adopted after June 30, 2011; and
        (2) does not apply to an annexation under section 5 or 5.1 of this chapter.
    (b) After a municipality adopts an annexation ordinance under section 3 or 4 of this chapter, in order for the annexation to proceed, the municipality must file a written petition under subsection (e), signed by owners of land in the territory proposed to be annexed who are in favor of the annexation. The petition must be signed by:
        (1) at least sixty percent (60%) of the owners of land in the territory proposed to be annexed; or
        (2) the owners of more than seventy-five percent (75%) in assessed valuation of the land in the annexed territory.
    (c) The petition circulated by the municipality must include on each page where signatures are affixed a heading that is substantially similar to the following:
        "PETITION FOR ANNEXATION INTO THE (insert whether city or town) OF (insert name of city or town).".

     (d) A landowner may withdraw the landowner's signature from the petition not more than ten (10) days after the municipality adopts the annexation ordinance by providing written notice to the office of the clerk of the municipality. A person who withdraws the person's signature from the petition is considered not to have signed the petition for purposes of subsection (g)(2).
     (e) The municipality must file the petition with the circuit or superior court of the county where the municipality is located not later than ninety (90) days after the publication of the annexation ordinance under section 7 of this chapter. The petition must be accompanied by:
        (1) a copy of the ordinance; and

         (2) the names and addresses of all persons who meet the requirements of subsection (g).
     (f) On receipt of the petition, the court shall determine whether the petition has the necessary signatures. In determining the total number of landowners of the territory proposed to be annexed and whether signers of the petition are landowners, the names appearing on the tax duplicate for that territory constitute prima facie evidence of ownership. Only one (1) person having an interest in each single property, as evidenced by the tax duplicate, is considered a landowner for purposes of this section. If the court determines that the municipality's petition is sufficient, the court shall fix a time, not later than sixty (60) days after its determination, for a hearing on the petition.
     (g) A person may intervene as a party if:
        (1) the person is an owner of property in the area proposed to be annexed;
        (2) the person and no other owner of the property have signed the petition filed by the municipality; and
        (3) the person appeared in person or submitted a remonstrance or other document into the record of the hearing under section 2.1 of this chapter.

The court shall give a person who meets the requirements of subdivisions (1) through (3) notice of the hearing on the petition by certified mail.
SOURCE: IC 36-4-3-7; (11)SB0069.1.8. -->     SECTION 8. IC 36-4-3-7, AS AMENDED BY P.L.113-2010,

SECTION 116, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 7. (a) After an annexation ordinance is adopted, under section 3, 4, 5, or 5.1 of this chapter, it the ordinance must be published in the manner prescribed by IC 5-3-1. Except as provided in subsection (b), (c), or (f), in the absence of remonstrance and appeal under section 11 or 15.5 of this chapter, the ordinance takes effect at least ninety (90) days after its publication and upon the filing required by section 22(a) of this chapter. The ordinance takes effect as follows:
        (1) Except as provided in subsection (b) or (d), if the ordinance is adopted under section 5 of this chapter, in the absence of an appeal under section 15.5 of this chapter,
the ordinance takes effect at least ninety (90) days after its publication and upon filing under section 22(a) of this chapter.
        (2) Except as provided in subsection (b) or (d), if the ordinance is adopted under section 5.1 of this chapter, in the absence of an appeal under section 15.5 of this chapter, the ordinance takes effect not less than thirty (30) days after the adoption of the ordinance and upon the filing under section 22(a) of this chapter.
         (3) Except as provided in subsection (b) or (d), if the ordinance is adopted under section 5.5 of this chapter, and the court's judgment under section 12 of this chapter orders the annexation to take place, the annexation is effective upon the filing under section 22(a) of this chapter.
         (4) Notwithstanding subsection (b), and except as provided in subsection (d), if the ordinance is adopted under section 7.1 of this chapter and the court's judgment under section 12 of this chapter orders the annexation to take place, the annexation is effective immediately upon the filing under section 22(a) of this chapter.
    (b) An ordinance described in subsection (d) or adopted under section 3, 4, 5, or 5.1 of this chapter annexation may not take effect during the year preceding a year in which a federal decennial census is conducted. An ordinance that would otherwise take effect during the year preceding a year in which a federal decennial census is conducted takes effect January 1 of the year in which a federal decennial census is conducted.
    (c) Subsections (d) and (e) apply to fire protection districts that are established after June 14, 1987.
    (d) Except as provided in subsection (b), whenever a municipality

annexes territory, all or part of which lies within a fire protection district (IC 36-8-11), the annexation ordinance (in the absence of remonstrance and a hearing or an appeal under section 11 12 or 15.5 of this chapter) takes effect the second January 1 that follows the date the ordinance is adopted and upon the filing required by section 22(a) of this chapter. The municipality shall:
        (1) provide fire protection to that territory beginning the date the ordinance is effective; and
        (2) send written notice to the fire protection district of the date the municipality will begin to provide fire protection to the annexed territory within ten (10) days of the date the ordinance is adopted.
    (e) If the fire protection district from which a municipality annexes territory under subsection (d) is indebted or has outstanding unpaid bonds or other obligations at the time the annexation is effective, the municipality is liable for and shall pay that indebtedness in the same ratio as the assessed valuation of the property in the annexed territory (that is part of the fire protection district) bears to the assessed valuation of all property in the fire protection district, as shown by the most recent assessment for taxation before the annexation, unless the assessed property within the municipality is already liable for the indebtedness. The annexing municipality shall pay its indebtedness under this section to the board of fire trustees. If the indebtedness consists of outstanding unpaid bonds or notes of the fire protection district, the payments to the board of fire trustees shall be made as the principal or interest on the bonds or notes becomes due.
    (f) This subsection applies to an annexation initiated by property owners under section 5.1 of this chapter in which all property owners within the area to be annexed petition the municipality to be annexed. Subject to subsections (b) and (d), and in the absence of an appeal under section 15.5 of this chapter, an annexation ordinance takes effect at least thirty (30) days after its publication and upon the filing required by section 22(a) of this chapter.

SOURCE: IC 36-4-3-7.1; (11)SB0069.1.9. -->     SECTION 9. IC 36-4-3-7.1 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 7.1. Notwithstanding section 7(b) of this chapter, if an ordinance is adopted under section 4 of this chapter and the court's judgment under section 12 of this chapter orders the annexation to take place, the annexation takes effect immediately upon the expiration of the sixty (60) day remonstrance and appeal period under section 11 or 15.5 of this chapter and after the publication, filing and recording required by section 22(a) of this chapter if all of the following conditions are met:
        (1) The annexed territory has no population.
        (2) Ninety percent (90%) of the total assessed value of the land for property tax purposes has one (1) owner.
        (3) The annexation is required to fulfill an economic development incentive package and to retain an industry through various local incentives, including urban enterprise zone benefits.
SOURCE: IC 36-4-3-8; (11)SB0069.1.10. -->     SECTION 10. IC 36-4-3-8 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 8. (a) This section does not apply to an ordinance adopted under section 5 or 5.1 of this chapter.
    (b) An ordinance adopted under section 3 or 4 of this chapter must include terms and conditions fairly calculated to make the annexation equitable to the property owners and residents of the municipality and the annexed territory. The terms and conditions may include:
        (1) postponing the effective date of the annexation for not more than three (3) years; and
        (2) establishing equitable provisions for the future management and improvement of the annexed territory and for the rendering of needed services.
    (c) This subsection applies to territory sought to be annexed that meets all of the following requirements:
        (1) The resident population density of the territory is at least three (3) persons per acre.
        (2) The territory is subdivided or is parceled through separate ownerships into lots or parcels such that at least sixty percent (60%) of the total number of lots and parcels are not more than one (1) acre.
This subsection does not apply to an ordinance annexing territory described in section 4(a)(2), 4(a)(3), 4(b), or 4(h) of this chapter. The ordinance must include terms and conditions impounding in a special fund all of the municipal property taxes imposed on the annexed territory after the annexation takes effect that are not used to meet the basic services described in section 13(d)(4) and 13(d)(5) 13(e)(4) and 13(e)(5) of this chapter for a period of at least three (3) years. The impounded property taxes must be used to provide additional services that were not specified in the plan of annexation. The impounded property taxes in the fund shall be expended as set forth in this section, not later than five (5) years after the annexation becomes effective.
SOURCE: IC 36-4-3-12; (11)SB0069.1.11. -->     SECTION 11. IC 36-4-3-12, AS AMENDED BY P.L.113-2010, SECTION 117, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 12. (a) The circuit or superior court shall:
        (1) on the date fixed under section 11 5.5 of this chapter, hear and

determine the remonstrance petition without a jury; and
        (2) without delay, enter judgment on the question of the annexation according to the evidence that either party may introduce.
    (b) If the court enters judgment in favor of the annexation, the annexation may not take effect during the year preceding the year in which a federal decennial census is conducted. An annexation that would otherwise take effect during the year preceding a year in which a federal decennial census is conducted takes effect January 1 of the year in which a federal decennial census is conducted.

SOURCE: IC 36-4-3-13; (11)SB0069.1.12. -->     SECTION 12. IC 36-4-3-13, AS AMENDED BY P.L.111-2005, SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 13. (a) Except as provided in subsections (e) and (g), Except as provided in subsection (b), at the hearing under section 12 of this chapter, the court shall order a proposed annexation to take place if the following requirements are met:
        (1) The requirements of either subsection (b) (c) or (c). (d).
        (2) The requirements of subsection (d). (e).
     (b) This subsection applies only to an annexation under section 4(a)(2), 4(a)(3), 4(b), 4(h), or 4.1 of this chapter. At the hearing under section 12 of this chapter, the court shall order a proposed annexation to take place if the requirements of subsection (c) are met.
    (b) (c) The requirements of this subsection are met if the evidence establishes the following:
        (1) That the territory sought to be annexed is:
             (A) contiguous to the municipality; or
            (B) not contiguous to the municipality in the case of an annexation under section 4(a)(2), 4(a)(3), 4(b), or 4(h) of this chapter.

        (2) One (1) of the following:
            (A) The resident population density of the territory sought to be annexed is at least three (3) persons per acre.
            (B) Sixty percent (60%) of the territory is subdivided.
            (C) The territory is zoned for commercial, business, or industrial uses;
             (D) In the case of an annexation:
                 (i) under section 4(a)(2) or 4(a)(3) of this chapter, the territory is zoned for special uses; or
                (ii) under section 4.1 of this chapter, the territory is zoned for agricultural use.

    (c) (d) The requirements of this subsection are met if the evidence

establishes the following:
        (1) That the territory sought to be annexed is contiguous to the municipality as required by section 1.5 of this chapter, except that at least one-fourth (1/4), instead of one-eighth (1/8), of the aggregate external boundaries of the territory sought to be annexed must coincide with the boundaries of the municipality.
        (2) That the territory sought to be annexed is needed and can be used by the municipality for its development in the reasonably near future.
    (d) (e) The requirements of this subsection are met if the evidence establishes that the municipality has developed and adopted a written fiscal plan and has established a definite policy, by resolution of the legislative body as set forth in section 3.1 of this chapter. The fiscal plan must show the following:
        (1) The cost estimates of planned services to be furnished to the territory to be annexed. The plan must present itemized estimated costs for each municipal department or agency.
        (2) The method or methods of financing the planned services. The plan must explain how specific and detailed expenses will be funded and must indicate the taxes, grants, and other funding to be used.
        (3) The plan for the organization and extension of services. The plan must detail the specific services that will be provided and the dates the services will begin.
        (4) That planned services of a noncapital nature, including police protection, fire protection, street and road maintenance, and other noncapital services normally provided within the corporate boundaries, will be provided to the annexed territory within one (1) year after the effective date of annexation and that they will be provided in a manner equivalent in standard and scope to those noncapital services provided to areas within the corporate boundaries regardless of similar topography, patterns of land use, and population density.
        (5) That services of a capital improvement nature, including street construction, street lighting, sewer facilities, water facilities, and stormwater drainage facilities, will be provided to the annexed territory within three (3) years after the effective date of the annexation in the same manner as those services are provided to areas within the corporate boundaries, regardless of similar topography, patterns of land use, and population density, and in a manner consistent with federal, state, and local laws, procedures, and planning criteria.


    (e) At the hearing under section 12 of this chapter, the court shall do the following:
        (1) Consider evidence on the conditions listed in subdivision (2).
        (2) Order a proposed annexation not to take place if the court finds that all of the conditions set forth in clauses (A) through (D) and, if applicable, clause (E) exist in the territory proposed to be annexed:
            (A) The following services are adequately furnished by a provider other than the municipality seeking the annexation:
                (i) Police and fire protection.
                (ii) Street and road maintenance.
            (B) The annexation will have a significant financial impact on the residents or owners of land.
            (C) The annexation is not in the best interests of the owners of land in the territory proposed to be annexed as set forth in subsection (f).
            (D) One (1) of the following opposes the annexation:
                (i) At least sixty-five percent (65%) of the owners of land in the territory proposed to be annexed.
                (ii) The owners of more than seventy-five percent (75%) in assessed valuation of the land in the territory proposed to be annexed.
            Evidence of opposition may be expressed by any owner of land in the territory proposed to be annexed.
            (E) This clause applies only to an annexation in which eighty percent (80%) of the boundary of the territory proposed to be annexed is contiguous to the municipality and the territory consists of not more than one hundred (100) parcels. At least seventy-five percent (75%) of the owners of land in the territory proposed to be annexed oppose the annexation as determined under section 11(b) of this chapter.
    (f) The municipality under subsection (e)(2)(C) bears the burden of proving that the annexation is in the best interests of the owners of land in the territory proposed to be annexed. In determining this issue, the court may consider whether the municipality has extended sewer or water services to the entire territory to be annexed:
        (1) within the three (3) years preceding the date of the introduction of the annexation ordinance; or
        (2) under a contract in lieu of annexation entered into under IC 36-4-3-21.
The court may not consider the provision of water services as a result of an order by the Indiana utility regulatory commission to constitute

the provision of water services to the territory to be annexed.
    (g) This subsection applies only to cities located in a county having a population of more than two hundred thousand (200,000) but less than three hundred thousand (300,000). However, this subsection does not apply if on April 1, 1993, the entire boundary of the territory that is proposed to be annexed was contiguous to territory that was within the boundaries of one (1) or more municipalities. At the hearing under section 12 of this chapter, the court shall do the following:
        (1) Consider evidence on the conditions listed in subdivision (2).
        (2) Order a proposed annexation not to take place if the court finds that all of the following conditions exist in the territory proposed to be annexed:
            (A) The following services are adequately furnished by a provider other than the municipality seeking the annexation:
                (i) Police and fire protection.
                (ii) Street and road maintenance.
            (B) The annexation will have a significant financial impact on the residents or owners of land.
            (C) One (1) of the following opposes the annexation:
                (i) A majority of the owners of land in the territory proposed to be annexed.
                (ii) The owners of more than seventy-five percent (75%) in assessed valuation of the land in the territory proposed to be annexed.
            Evidence of opposition may be expressed by any owner of land in the territory proposed to be annexed.
    (h) (f) The most recent:
        (1) federal decennial census;
        (2) federal special census;
        (3) special tabulation; or
        (4) corrected population count;
shall be used as evidence of resident population density for purposes of subsection (b)(2)(A), (c)(2)(A), but this evidence may be rebutted by other evidence of population density.

SOURCE: IC 36-4-3-14; (11)SB0069.1.13. -->     SECTION 13. IC 36-4-3-14 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 14. In a hearing under section 12 of this chapter, the laws providing for change of venue from the county do not apply, but changes of venue from the judge may be had as in other cases. Costs follow judgment. Pending the remonstrance, and during the time within which the remonstrance may be taken, hearing under section 12 of this chapter and appellate review of the court's judgment, the territory sought to be annexed is

not considered a part of the municipality.

SOURCE: IC 36-4-3-15; (11)SB0069.1.14. -->     SECTION 14. IC 36-4-3-15 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 15. (a) The court's judgment under section 12 or 15.5 of this chapter must specify the annexation ordinance. on which the remonstrance is based. The clerk of the court shall deliver a certified copy of the judgment to the clerk of the municipality. The clerk of the municipality shall:
        (1) record the judgment in the clerk's ordinance record; and
        (2) make a cross-reference to the record of the judgment on the margin of the record of the annexation ordinance.
    (b) If a judgment under section 12 or 15.5 of this chapter is adverse to annexation, the municipality may not make further attempts to annex the territory or any part of the territory during the four (4) years after the later of:
        (1) the judgment of the circuit or superior court; or
        (2) the date of the final disposition of all appeals to a higher court;
unless the annexation is petitioned for under section 5 or 5.1 of this chapter.
    (c) This subsection applies if a municipality repeals the annexation ordinance:
        (1) less than sixty-one (61) days after the publication of the ordinance under section 7(a) of this chapter; and
        (2) before the hearing commences on the remonstrance under section 11(c) 12 of this chapter.
A municipality may not make further attempts to annex the territory or any part of the territory during the twelve (12) months after the date the municipality repeals the annexation ordinance. This subsection does not prohibit an annexation of the territory or part of the territory that is petitioned for under section 5 or 5.1 of this chapter.
    (d) This subsection applies if a municipality repeals the annexation ordinance:
        (1) at least sixty-one (61) days but not more than one hundred twenty (120) days after the publication of the ordinance under section 7(a) of this chapter; and
        (2) before the hearing commences on the remonstrance under section 11(c) 12 of this chapter.
A municipality may not make further attempts to annex the territory or any part of the territory during the twenty-four (24) months after the date the municipality repeals the annexation ordinance. This subsection does not prohibit an annexation of the territory or part of the territory that is petitioned for under section 5 or 5.1 of this chapter.
    (e) This subsection applies if a municipality repeals the annexation

ordinance:
        (1) either:
            (A) at least one hundred twenty-one (121) days after publication of the ordinance under section 7(a) of this chapter but before the hearing commences on the remonstrance under section 11(c) 12 of this chapter; or
            (B) after the hearing commences on the remonstrance as set forth in section 11(c) 12 of this chapter; and
        (2) before the date of the judgment of the circuit or superior court as set forth in subsection (b).
A municipality may not make further attempts to annex the territory or any part of the territory during the forty-two (42) months after the date the municipality repeals the annexation ordinance. This subsection does not prohibit an annexation of the territory or part of the territory that is petitioned for under section 5 or 5.1 of this chapter.
    (f) If a judgment under section 12 or 15.5 of this chapter orders the annexation to take place, the annexation is effective when the clerk of the municipality complies with the filing requirement of section 22(a) of this chapter.

SOURCE: IC 36-4-3-16; (11)SB0069.1.15. -->     SECTION 15. IC 36-4-3-16 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 16. (a) Within one (1) year after the expiration of:
        (1) the one (1) year period for implementation of planned services of a noncapital nature under section 13(d)(4) 13(e)(4) of this chapter; or
        (2) the three (3) year period for the implementation of planned services of a capital improvement nature under section 13(d)(5) 13(e)(5) of this chapter;
any person who pays taxes on property located within the annexed territory may file a complaint alleging injury resulting from the failure of the municipality to implement the plan. The complaint must name the municipality as defendant and shall be filed with the circuit or superior court of the county in which the annexed territory is located.
    (b) The court shall hear the case within sixty (60) days without a jury. In order to be granted relief, the plaintiff must establish one (1) of the following:
        (1) That the municipality has without justification failed to implement the plan required by section 13 of this chapter within the specific time limit for implementation after annexation.
        (2) That the municipality has not provided police protection, fire protection, sanitary sewers, and water for human consumption within the specific time limit for implementation, unless one (1)

of these services is being provided by a separate taxing district or by a privately owned public utility.
        (3) That the annexed territory is not receiving governmental and proprietary services substantially equivalent in standard and scope to the services provided by the municipality to other areas of the municipality, regardless of topography, patterns of land use, and population density similar to the annexed territory.
    (c) The court may:
        (1) grant an injunction prohibiting the collection of taxes levied by the municipality on the plaintiff's property located in the annexed territory;
        (2) award damages to the plaintiff not to exceed one and one-fourth (1 1/4) times the taxes collected by the municipality for the plaintiff's property located in the annexed territory;
        (3) order the annexed territory or any part of it to be disannexed from the municipality;
        (4) order the municipality to submit a revised fiscal plan for providing the services to the annexed territory within time limits set up by the court; or
        (5) grant any other appropriate relief.
    (d) A change of venue from the county is not permitted for an action brought under this section.
    (e) If the court finds for the plaintiff, the defendant shall pay all court costs and reasonable attorney's fees as approved by the court.
    (f) The provisions of this chapter that apply to territory disannexed by other procedures apply to territory disannexed under this section.

SOURCE: IC 36-4-3-22; (11)SB0069.1.16. -->     SECTION 16. IC 36-4-3-22 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 22. (a) The clerk of the municipality shall do the following:
        (1) File each annexation ordinance against which a remonstrance or an appeal has not been filed during the period permitted under this chapter or the certified copy of a judgment ordering an annexation to take place with each of the following:
            (A) The county auditor of each county in which the annexed territory is located.
            (B) The circuit court clerk of each county in which the annexed territory is located.
            (C) If a board of registration exists, the registration board of each county in which the annexed territory is located.
            (D) The office of the secretary of state.
            (E) The office of census data established by IC 2-5-1.1-12.2.
        (2) Record each annexation ordinance adopted under this chapter

in the office of the county recorder of each county in which the annexed territory is located.
    (b) The copy must be filed and recorded no later than ninety (90) days after:
        (1) the expiration of the period permitted for a remonstrance or an appeal; or
        (2) the delivery of a certified order under section 15 of this chapter.
    (c) Failure to record the annexation ordinance as provided in subsection (a)(2) does not invalidate the ordinance.
    (d) The county auditor shall forward a copy of any annexation ordinance filed under this section to the following:
        (1) The county highway department of each county in which the lots or lands affected are located.
        (2) The county surveyor of each county in which the lots or lands affected are located.
        (3) Each plan commission, if any, that lost or gained jurisdiction over the annexed territory.
        (4) The sheriff of each county in which the lots or lands affected are located.
        (5) The township trustee of each township that lost or gained jurisdiction over the annexed territory.
        (6) The office of the secretary of state.
        (7) The office of census data established by IC 2-5-1.1-12.2.
    (e) The county auditor may require the clerk of the municipality to furnish an adequate number of copies of the annexation ordinance or may charge the clerk a fee for photoreproduction of the ordinance. The county auditor shall notify the office of the secretary of state and the office of census data established by IC 2-5-1.1-12.2 of the date that the annexation ordinance is effective under this chapter.
    (f) The county auditor or county surveyor shall, upon determining that an annexation ordinance has become effective under this chapter, indicate the annexation upon the property taxation records maintained in the office of the auditor or the office of the county surveyor.

SOURCE: IC 36-9-22-2; (11)SB0069.1.17. -->     SECTION 17. IC 36-9-22-2 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 2. (a) The power of the municipal works board to fix the terms of a contract under this section applies to contracts for the installation of sewage works that have not been finally approved or accepted for full maintenance and operation by the municipality on July 1, 1979.
    (b) The works board of a municipality may contract with owners of real property for the construction of sewage works within the

municipality or within four (4) miles outside its corporate boundaries in order to provide service for the area in which the real property of the owners is located. The contract must provide, for a period of not to exceed fifteen (15) years, for the payment to the owners and their assigns by any owner of real property who:
        (1) did not contribute to the original cost of the sewage works; and
        (2) subsequently taps into, uses, or deposits sewage or storm waters in the sewage works or any lateral sewers connected to them;
of a fair pro rata share of the cost of the construction of the sewage works, subject to the rules of the board and notwithstanding any other law relating to the functions of local governmental entities. However, the contract does not apply to any owner of real property who is not a party to it unless it has been recorded in the office of the recorder of the county in which the real property of the owner is located before the owner taps into or connects to the sewers and facilities. The board may provide that the fair pro rata share of the cost of construction includes interest at a rate not exceeding the amount of interest allowed on judgments, and the interest shall be computed from the date the sewage works are approved until the date payment is made to the municipality.
    (c) The contract must include, as part of the consideration running to the municipality, the release of the right of the parties to the contract and their successors in title to remonstrate against pending or future annexations by the municipality of the area served by the sewage works. Any person tapping into or connecting to the sewage works contracted for is considered to waive his rights to remonstrate against the annexation of the area served by the sewage works.
    (d) Subsection (c) does not apply to a landowner if all of the following conditions apply:
        (1) The landowner is required to connect to the sewage works because a person other than the landowner has polluted or contaminated the area.
        (2) The costs of extension of or connection to the sewage works are paid by a person other than the landowner or the municipality.

SOURCE: IC 13-18-15-2; IC 36-4-3-11; IC 36-4-3-11.5; IC 36-4-3- 15.3.
; (11)SB0069.1.18. -->     SECTION 18. THE FOLLOWING ARE REPEALED [EFFECTIVE JULY 1, 2011]: IC 13-18-15-2; IC 36-4-3-11; IC 36-4-3-11.5; IC 36-4-3-15.3.

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