CHAPTER 5. COMMUNITY SCHOOL CORPORATIONS: TERRITORY ANNEXATIONS
IC 20-23-5
Chapter 5. Community School Corporations: Territory
Annexations
IC 20-23-5-1
"Acquiring school corporation"
Sec. 1. As used in this chapter,"acquiring school corporation"
means the school corporation that acquires territory as a result of
annexation.
As added by P.L.1-2005, SEC.7.
IC 20-23-5-2
"Annex"
Sec. 2. As used in this chapter, "annex", "annexing",
"annexation", and "school annexation" mean any action whereby the
boundaries of a school corporation are changed so that additional
territory, constituting all or a part of any one (1) or more other school
corporations, is transferred to the school corporation.
As added by P.L.1-2005, SEC.7.
IC 20-23-5-3
"Annexed territory"
Sec. 3. As used in this chapter, "annexed territory" means the
territory acquired by an acquiring school corporation as a result of
annexation from a losing school corporation.
As added by P.L.1-2005, SEC.7.
IC 20-23-5-4
"Losing school corporation"
Sec. 4. As used in this chapter, "losing school corporation" means
a school corporation that loses territory to an acquiring school
corporation by annexation.
As added by P.L.1-2005, SEC.7.
IC 20-23-5-5
"Resolution"
Sec. 5. As used in this chapter, "resolution" of a school
corporation means a resolution adopted by the school corporation's
governing body.
As added by P.L.1-2005, SEC.7.
IC 20-23-5-6
"School corporation"
Sec. 6. As used in this chapter, "school corporation" means:
(1) a school corporation created under IC 20-23-4; and
(2) any other school corporation established under any other
statute of the state of Indiana, which has common boundaries
with any school corporation or corporations formed under
IC 20-23-4.
The term does not include any public school corporation located in
whole or any part in a county containing a consolidated city.
As added by P.L.1-2005, SEC.7.
IC 20-23-5-7
Annexations authorized
Sec. 7. Subject to the limitations and procedures in this chapter,
a school corporation may annex territory from any other school
corporation by resolutions of the acquiring and losing school
corporations under section 8 of this chapter.
As added by P.L.1-2005, SEC.7.
IC 20-23-5-8
Annexation procedure
Sec. 8. An annexation may be effected by any school corporation
as follows:
(1) The acquiring and the losing 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 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
school corporation for specified periods after annexation on
a transfer basis. If students will continue attendance in
schools in the losing school corporation, transfer tuition for
the students shall be paid by the acquiring school
corporation to the losing 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 school
corporation to the acquiring school corporation.
(F) Allocation between the acquiring and losing 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 school corporation on account of
property received from the losing 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 school corporation setting out:
(A) the text of the resolution; and
(B) a statement that the resolution has been adopted and 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 school corporation at least equal in
number to the greater of ten percent (10%) of the number of
registered voters residing in the losing school corporation or
fifty-one percent (51%) of the number of registered voters
residing in the annexed territory.
As added by P.L.1-2005, SEC.7.
IC 20-23-5-9
Notice requirements
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 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 school corporation, publication in
the newspaper qualifies as one (1) of the required publications in the
acquiring school corporation and the losing school corporation.
(e) Publication may be made jointly by the losing school
corporation and acquiring school corporation.
(f) The remonstrance period runs from the second publication.
As added by P.L.1-2005, SEC.7.
IC 20-23-5-10
Remonstrances; form; filing; contents
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 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
school corporation, and the annexed territory.
(4) The:
(A) disposition of assets and liabilities of the losing school
corporation;
(B) allocation of school tax receipts between the acquiring
school corporation and the losing 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 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.
As added by P.L.1-2005, SEC.7.
IC 20-23-5-11
Adoption of plans for governing bodies of school corporations
Sec. 11. (a) Within sixty (60) days after the annexation takes
place, the governing body of the acquiring school corporation and
losing 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 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.
As added by P.L.1-2005, SEC.7.
IC 20-23-5-12
Disposition of assets and liabilities of losing school corporation;
allocation of school tax receipts and amount to be paid by
acquiring school corporation; standards
Sec. 12. (a) With respect to whether the disposition of the assets
and liabilities of the losing school corporation, allocation of school
tax receipts, and the amount to be paid by the acquiring school
corporation 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 school corporation (other than current obligations or
temporary borrowing) that fall due after the end of the last
calendar year in which the losing 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 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 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 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 school
corporation and acquiring school corporation shall, upon
enforcement, be allocated between the losing school corporation and
acquiring school corporation in accordance with subsection (a)(1)
and (a)(2).
As added by P.L.1-2005, SEC.7. Amended by P.L.231-2005, SEC.21;
P.L.2-2006, SEC.94.
IC 20-23-5-13
Effective date of annexation in case of remonstrance; limitations on
new annexation proceeding following adverse judgment
Sec. 13. (a) If a remonstrance 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 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.
As added by P.L.1-2005, SEC.7.
IC 20-23-5-14
Repeal of conflicting laws; supplemental effect of chapter
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.
As added by P.L.1-2005, SEC.7.