CHAPTER 5. REAL PROPERTY ANNEXATIONS AND TRANSFERS; REMONSTRANCES
IC 20-25-5
Chapter 5. Real Property Annexations and Transfers;
Remonstrances
IC 20-25-5-1
"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.9.
IC 20-25-5-2
"Annex"
Sec. 2. As used in this chapter, "annex", "annexing",
"annexation", and "school annexation" mean an action in which the
boundaries of a school corporation are changed so that additional
territory, constituting all or a part of one (1) or more other school
corporations, is transferred to the acquiring school corporation.
As added by P.L.1-2005, SEC.9.
IC 20-25-5-3
"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.9.
IC 20-25-5-4
"Civil annexation"
Sec. 4. As used in this chapter, "civil annexation" means an action
in which the civil boundaries of a civil city are extended.
As added by P.L.1-2005, SEC.9.
IC 20-25-5-5
"Civil city"
Sec. 5. As used in this chapter, "civil city" means a civil city or a
civil town, the area of which, or the major part of the area of which,
is under the jurisdiction of a school city.
As added by P.L.1-2005, SEC.9.
IC 20-25-5-6
"Losing school corporation"
Sec. 6. 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.9.
IC 20-25-5-7
"Resolution"
Sec. 7. As used in this chapter, "resolution" of:
(1) a school township means a resolution adopted by the trustee
and a majority of the township board; and
(2) any other school corporation means a resolution duly
adopted by the school corporation's governing body.
As added by P.L.1-2005, SEC.9.
IC 20-25-5-8
"School city"
Sec. 8. As used in this chapter, "school city" means a school
corporation that at any time:
(1) is a school city;
(2) is a school town;
(3) has succeeded to the jurisdiction of all a school city or a
school town; or
(4) has succeeded to the jurisdiction of a major part in area of
a school city or school town.
As added by P.L.1-2005, SEC.9.
IC 20-25-5-9
"School corporation"
Sec. 9. As used in this chapter, "school corporation" means a
public school corporation of the state located in whole or in part in
a county containing a consolidated city.
As added by P.L.1-2005, SEC.9.
IC 20-25-5-10
Annexation authorized
Sec. 10. Subject to the limitations and procedure set out in this
chapter, any:
(1) school corporation may annex territory from any other
school corporation by resolutions of the acquiring and losing
school corporations as provided in section 11 of this chapter;
and
(2) school city may annex territory from any other school
corporation by a single resolution of the school city as provided
in section 12 of this chapter.
As added by P.L.1-2005, SEC.9.
IC 20-25-5-11
Annexation by school corporations; procedure
Sec. 11. (a) An annexation may be effected if an acquiring school
corporation and a losing school corporation each adopts a
substantially identical annexation resolution that contains the
following items:
(1) A description of the annexed territory. The description must,
as near as reasonably possible, be by streets and other
boundaries known by common names. The description does not
need to include a legal description unless a legal 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 a person skilled in the area of real estate
description.
(2) The time the annexation takes place. The time the
annexation takes place may vary with respect to the different
parts of the annexed territory. If the entire annexed territory is
contiguous to the acquiring school corporation, the annexed
territory may be annexed so that some parts may not be
contiguous to the annexed territory for temporary periods.
(3) The terms and conditions facilitating education of students
in the annexed territory, losing school corporation, or acquiring
school corporation. The terms may include, but are not limited
to, 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 a student in an annexed
territory attends a school in a losing school corporation under
this subdivision, transfer tuition for the student must be paid by
the acquiring school corporation to the losing school
corporation in the manner and at the rates provided by the
statutes governing the computation and payment of transfer
tuition costs.
(4) The:
(A) disposition of assets and liabilities of the losing school
corporation to the acquiring school corporation;
(B) allocation between the acquiring school corporation and
losing school corporation of subsequently collected school
taxes levied on property in the annexed territory; and
(C) 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.
The disposition, allocation, and amount must be equitable.
(b) After the adoption of the resolutions under subsection (a),
notice shall be given by publication in both the acquiring school
corporation and the losing school corporation. The notice must
include the text of the resolution, a statement that the resolution has
been adopted, and a statement that a right of remonstrance exists as
provided in this chapter. It is not necessary to set out the
remonstrance provisions of this chapter in the notice. A general
reference to a right of remonstrance with a reference to this chapter
is sufficient to satisfy the requirements of this subsection. The
annexation must take effect not later than thirty (30) days after the
publication of the notice or at the time provided in the resolution,
whichever is later. However, the annexation is not required to take
effect within the period required by this subsection if a remonstrance,
based on a ground other than that set out in section 14(a)(5) of this
chapter, is filed in the circuit or superior court of the county in which
the annexed territory or any part of the annexed territory is located.
The remonstrance must be filed by registered voters residing in the
losing school corporation at least equal in number to the greater of:
(1) ten percent (10%) of the number of registered voters
residing in the losing school corporation; or
(2) fifty-one percent (51%) of the number of registered voters
residing in the annexed territory.
As added by P.L.1-2005, SEC.9.
IC 20-25-5-12
Annexation by school city; procedure
Sec. 12. (a) Notwithstanding section 11 of this chapter, a school
city may effect an annexation as follows:
(1) The acquiring school corporation must adopt an annexation
resolution of the type provided in section 11 of this chapter.
Unless the losing corporation consents, the resolution may not
provide a time for annexation before July 1 following the May
1 next succeeding the last publication of the notice of
annexation.
(2) The acquiring school corporation, after adopting a
resolution under subdivision (1), shall give notice of the type
provided in section 11 of this chapter by publication in the
acquiring school corporation and in the losing school
corporation. The acquiring school corporation shall also give
notice to the losing school corporation before the last
publication of notice of the type provided in section 11 of this
chapter. The annexation must take effect thirty (30) days after
the last publication in the losing school corporation or at the
time provided in the resolution, whichever is later. However,
the annexation is not required to take effect within the period
required by this subdivision if a remonstrance, based on a
ground other than that set out in section 14(a)(5) of this chapter,
is filed in the circuit or superior court of the county in which the
annexed territory or a part of the annexed territory is located.
The remonstrance must be filed by:
(A) the losing school corporation;
(B) not less than a majority of the owners of land in the
annexed territory; or
(C) the owners of seventy-five percent (75%) or more in
assessed valuation of the real estate in the annexed territory.
(b) For purposes of determining ownership under subsection
(a)(2)(B) and (a)(2)(C), the following rules apply:
(1) Only the record title holder or holders of a single piece of
property are considered an owner.
(2) If record title of a single piece of property is in more than
one (1) individual, all the individuals constitute only one (1)
owner, and the remonstrance of any one (1) of the individuals
constitutes the remonstrance of all the individuals, whether or
not the other individuals authorized the filing of the
remonstrance.
As added by P.L.1-2005, SEC.9.
IC 20-25-5-13
Notice of annexation; publication; notice to losing school
corporation
Sec. 13. (a) The notice by publication required by sections 11 and
12 of this chapter shall be made two (2) times a week apart in two (2)
daily newspapers of general circulation in the acquiring school
corporation and the losing school corporation. The two (2) daily
newspapers must be published in the English language. If there is
only one (1) daily newspaper or if there are not any daily newspapers
in either school corporation, a weekly newspaper may be used to
provide notice. If there is only one (1) daily or weekly newspaper,
publication in that newspaper is sufficient. If a newspaper is of
general circulation in both school corporations, the publication of
notice in the newspaper qualifies as one (1) of the required
publications in each of the school corporations. Publication may be
made jointly by the losing school corporation and the acquiring
school corporation. The remonstrance period runs from the second
publication.
(b) If notice is required to be given by an acquiring school
corporation to a losing school corporation, it may be made by
registered or certified United States mail, return receipt requested,
addressed to the:
(1) governing body of the losing school corporation at the
governing body's established business office;
(2) township trustee in the case of a school township; or
(3) superintendent of schools or any officer of the governing
body of any other school corporation.
As added by P.L.1-2005, SEC.9.
IC 20-25-5-14
Remonstrance; procedure; grounds
Sec. 14. (a) A remonstrance under section 11 or 12 of this chapter
must be in substantially the following 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 must have attached to it the affidavit of the individual
circulating the counterpart that affirms that each signature appearing
on the counterpart was affixed in the presence of the individual
circulating the counterpart and that each signature is the true and
lawful signature of the individual who made it. The individual who
makes the affidavit is not required to be one (1) of the individuals
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. The individual or individuals who file
the complaint must be treated as a representative of the entire class
of remonstrators and must sign the complaint individually or have
their respective attorneys sign it. The complaint must state 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 school corporation.
(3) The losing school corporation is left with no high school
facilities, or its enrollment after annexation will be less than one
thousand (1,000) students. This subdivision does not provide a
basis for a remonstrance if the annexation includes all of the
territory of the losing school corporation.
(4) The benefits to be derived from the annexation are
outweighed by the detriments after consideration of the
respective benefits and detriments to the schools, the students
residing in the acquiring school corporation, the students
residing in the losing school corporation, and the students
residing in the annexed territory.
(5) The disposition of assets and liabilities of the losing
corporation, the allocation of school tax receipts between the
two (2) school corporations, and the amount to be paid by the
acquiring school corporation as set out in the annexation
resolution are inequitable.
Except for subdivision (1), each allegation enumerated under this
subsection may be made in the statutory language.
(b) The plaintiff in a remonstrance suit is the individual whose
name appears on the complaint and may be the losing school
corporation in a remonstrance under section 12 of this chapter. The
defendants in a remonstrance under section 11 of this chapter are the
acquiring school corporation and the losing school corporation. The
defendant in a remonstrance under section 12 of this chapter is the
acquiring school corporation. Service of process shall be made on
each defendant in the manner required in other civil actions.
(c) To determine if a petition is timely filed, the time of filing is
the time of filing with the clerk of the circuit court 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 for filing must be extended to the next day when the
clerk's office is open.
(d) The issues in a remonstrance suit are made up by the
allegations in the complaint that are denied by each defendant. A
responsive pleading does not need to be filed. A defendant may file
a motion to dismiss the suit on the ground that the:
(1) requisite number of qualified remonstrators have not signed
the petition;
(2) remonstrance was not timely filed; or
(3) complaint does not state a cause of action.
A responsive pleading to a motion to dismiss does not need to be
filed. With respect to a motion under subdivisions (1) and (2), the
allegations are considered denied by the remonstrators. In order to
determine whether there are the requisite number of qualified
remonstrators, an individual is not entitled to withdraw the
individual's name after a remonstrance is filed, and an individual is
not entitled to add the individual's name to the remonstrance after the
remonstrance is filed. An individual may, however, at a remonstrance
trial, in support or derogation of the substantive matters in the
complaint, introduce into evidence a verified statement that the
individual wishes to add or withdraw the individual's name from the
remonstrance. The court may hear all or part of the matters raised by
the motion to dismiss separately, or the court may consolidate all or
part of the matters in the motion to dismiss with matters relating to
the substance of the case for trial. A complaint may not be dismissed
for failure to state a cause of action if a fair reading of the complaint
makes out one (1) of the grounds for remonstrance and suit provided
in subsection (a). An amendment of the complaint may be permitted
in the discretion of the court if the amendment does not state a new
ground of remonstrance.
(e) A remonstrance trial must be conducted in the same manner as
other civil cases by the court without the intervention of a jury on the
issues raised by a complaint or a motion to dismiss, or both. A
change of venue from a judge is permitted, but a change of venue
from the county is not permitted. The court shall expedite the hearing
of the case. A court's judgment, except with respect to a matter raised
under subsection (a)(5), must be that the:
(1) annexation will take place;
(2) annexation will not take place; or
(3) remonstrance is dismissed.
(f) If the court finds that the remonstrators have proved a reason
for the remonstrance described in subsection (a)(1) through (a)(4),
the court's judgment shall be that the annexation will not take place.
If the remonstrators fail to prove a reason for the remonstrance
described in subsection (a)(1) through (a)(4), the court's judgment
shall be that the annexation will take place. If the remonstrators raise
an issue under subsection (a)(5) in support of a remonstrance, the
court's judgment may be either that the disposition, allocation, and
amount set out in the annexing resolution are equitable or
inequitable. If the court finds that the disposition, allocation, and
amount set out in the annexing resolution are inequitable, the court
shall provide for an equitable disposition, allocation, and amount.
Costs will 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.9.
IC 20-25-5-15
Equitable disposition of assets and liabilities, allocation of taxes,
and payment by acquiring school corporation
Sec. 15. With respect to whether the disposition of the assets and
liabilities of the losing school corporation is equitable, the allocation
of school tax receipts is equitable, and the amount to be paid by the
acquiring school corporation is equitable, a court must be satisfied
that the annexing resolution conforms substantially to the following
standards:
(1) Except for current obligations or temporary borrowing, the
acquiring school corporation shall assume a part of all
installments of principal and interest on the indebtedness of the
losing school corporation that is 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 in the annexed territory. The part assumed by the
acquiring school corporation consists of the following:
(A) All installments relating to any indebtedness incurred in
connection with the acquisition or construction of a building
located in the annexed territory.
(B) 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 annexed territory bears to the
valuation of all the real property in the losing school
corporation. Valuation under this clause is based upon the
assessment 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:
(A) territory;
(B) a building or buildings; or
(C) both territory and a building or buildings;
under IC 20-47-5.
(3) If the annexed territory includes an entire losing school
corporation, the acquiring school corporation shall:
(A) acquire all the property and assets of the losing school
corporation without making any payments for the losing
school corporation; and
(B) assume all of the liabilities and obligations of the losing
school corporation.
As added by P.L.1-2005, SEC.9. Amended by P.L.231-2005, SEC.27;
P.L.2-2006, SEC.115.
IC 20-25-5-16
Effective date of annexation
Sec. 16. (a) If a remonstrance is filed on any ground other than a
ground set forth in section 14(a)(5) of this chapter, annexation does
not become effective until final judgment in the remonstrance suit.
A judgment is not considered final until the time for taking an appeal
has expired or, if an appeal is taken within the permitted time, until
a final judgment is issued in the appeal.
(b) A judgment of a trial court dismissing a remonstrance is a
final judgment, subject to subsection (a).
(c) If a judgment is against annexation, no further annexation of
the annexed territory may occur for two (2) years after the date of the
filing of the remonstrance. However, a judgment against annexation
does not prevent either the:
(1) acquiring school corporation; or
(2) acquiring school corporation and the losing school
corporation;
from rescinding the annexation resolution. If an annexation
resolution is rescinded under this subsection, the suit must be
dismissed without prejudice. If an annexation suit is dismissed
without prejudice under this subsection, the two (2) year prohibition
does not apply unless a subsequent annexation resolution is adopted
primarily for the purpose of harassment and not for another purpose,
such as the correction of procedural irregularities or a substantial
change in the annexed territory or the annexation resolution.
(d) If a remonstrance relates solely to a matter raised under
section 14(a)(5) of this chapter, the annexation takes effect at the
time provided under section 11 or 12 of this chapter.
As added by P.L.1-2005, SEC.9.
IC 20-25-5-17
Boundaries of school city or school town; application of chapter
Sec. 17. Notwithstanding any other statute that provides that the
boundaries of a school city or school town are coterminous or
coextensive with the boundaries of a civil city or civil town, the
boundaries of a school city may be changed after March 8, 1961,
solely by annexation under this chapter if this chapter was in effect
at the time the annexation became effective or finally effective.
As added by P.L.1-2005, SEC.9.
IC 20-25-5-18
Conflicting laws void; continued effect of consolidation laws;
approval not required for annexation
Sec. 18. (a) Except as provided in subsection (b), a law or a part
of a law in conflict with this chapter is void.
(b) This chapter may not be construed to invalidate IC 20-23-4,
IC 20-23-16, or any other statute concerning the consolidation of two
(2) or more school corporations to which this chapter is
supplementary. However, IC 20-23-4 and IC 20-23-16 are void to the
extent that IC 20-23-4 and IC 20-23-16 conflict with the subsequent
provisions of this section.
(c) An annexation sought under this chapter does not require the
approval of a:
(1) county committee;
(2) state commission; or
(3) committee created under or referred to in IC 20-23-4.
(d) Acts 1961, c.186, s.9, with respect to an annexation that is
finally effective before February 25, 1969, operates after March 8,
1961, before and after a final plan is put into effect by:
(1) election;
(2) petition;
(3) another proceeding under IC 20-23-4 or IC 20-23-16; or
(4) another statute concerning the consolidation of two (2) or
more school corporations.
As added by P.L.1-2005, SEC.9.
IC 20-25-5-19
Annexations not effective before February 25, 1969; repeal of
statute
Sec. 19. Acts 1961, c.186, s.9 is repealed regarding an annexation
that is not effective or finally effective before February 25, 1969.
As added by P.L.1-2005, SEC.9.
IC 20-25-5-20
Transfer of unused property to board of park commissioners
Sec. 20. (a) This section applies to a school city described in
IC 20-25-2-12.
(b) All real estate belonging to a school city that:
(1) consists of lots and buildings on the real property of the
school city; and
(2) has not been used for school purposes for at least five (5)
years;
may be transferred to and placed under the jurisdiction of the board
of park commissioners of the city in which the school city is located
and must be operated, managed, controlled, and maintained as a
recreation center for the use and benefit of the city.
As added by P.L.1-2005, SEC.9.