Be it enacted by the General Assembly of the State of Indiana:
critical and necessary services.
(3) Strengthen the financial condition of state government.
Sec. 2. This article contains full and complete authority for the
following:
(1) Reorganization of political subdivisions.
(2) Exercise of governmental functions under a cooperative
agreement under this article.
(3) Transfer of responsibilities between offices and officers
under this article.
Sec. 3. Except as provided in this article, no law, procedure,
proceedings, publications, notices, consents, approvals, orders, or
acts by a political subdivision or any officer, department, agency,
or instrumentality of the state or a political subdivision is required
for political subdivisions to:
(1) reorganize;
(2) enter into or exercise governmental functions under a
cooperative agreement; or
(3) transfer responsibilities between offices and officers;
under this article.
Sec. 4. A political subdivision may exercise the powers granted
under this article to reorganize or enter into cooperative
agreements without complying with the provisions of any other
law, statute, or rule.
Sec. 5. This article shall be liberally construed to effect the
purposes of this article.
Sec. 6. Except as otherwise specifically provided by law, to the
extent the provisions of this article are inconsistent with the
provisions of any other general, special, or local law, the provisions
of this article are controlling, and compliance with this article shall
be treated as compliance with the conflicting law.
Sec. 7. This article does not prohibit the:
(1) reorganization of one (1) or more political subdivisions;
(2) exercise of governmental functions under an interlocal
cooperation agreement or a cooperative agreement; or
(3) transfer of responsibilities between offices and officers;
under another law that is not included in this article.
Sec. 8. More than one (1) resolution permitted under this article
may be consolidated into a combined resolution.
Sec. 9. Political subdivisions and reorganization committees
acting under this article are subject to IC 5-14-1.5 (open door law)
and IC 5-14-3 (public records law).
property tax levies, maximum permissible property tax rates, and
budgets of political subdivisions that enter into a reorganization
under this article as the department of local government finance
determines necessary to do the following:
(1) Eliminate double taxation by different political
subdivisions for services or goods provided under this article.
(2) Eliminate any excess by which the amount of property
taxes imposed by a political subdivision exceeds the amount
necessary to pay for services or goods provided under this
article.
(3) Restore taxing powers of a political subdivision after the
termination of a reorganization under this article that are
necessary to fund governmental services to the individuals
and entities served by the political subdivision.
(4) Restore taxing powers of a political subdivision after the
withdrawal of a party from a reorganization under this article
that are necessary to fund governmental services to the
individuals and entities served by the political subdivision.
Sec. 5. The department shall establish a formula for adjusting
maximum permissible property tax levies, maximum permissible
property tax rates, and budgets under this chapter that permits a
political subdivision (or a successor political subdivision) that
realizes a:
(1) savings to its taxpayers; or
(2) reduction in the reasonably foreseeable expenses that
would otherwise be incurred by its taxpayers;
through a reorganization under this article to continue to levy part
of the realized savings or reduction. The adjustment under this
section may not exceed fifty percent (50%) of the savings or
reduction realized in the first full year of operation after the
reorganization is implemented, as determined by the department
of local government finance.
Chapter 4. Reorganization by Referendum
Sec. 1. (a) Any of the following may reorganize under this
chapter:
(1) Two (2) or more counties. A county reorganizing under
this subdivision must be adjacent to at least one (1) other
county participating in the reorganization.
(2) Two (2) or more townships located entirely within the
same county. A township reorganizing under this subdivision
must be adjacent to at least one (1) other township
participating in the reorganization.
(3) Two (2) or more municipalities. A municipality
reorganizing under this subdivision must be adjacent to at
least one (1) other municipality participating in the
reorganization.
(4) Two (2) or more school corporations. A school corporation
reorganizing under this subdivision must be adjacent to at
least one (1) other school corporation participating in the
reorganization.
(5) Two (2) or more municipal corporations, other than a unit
or a school corporation, that have substantially equivalent
powers. A municipal corporation reorganizing under this
subdivision must be adjacent to at least one (1) other
municipal corporation participating in the reorganization.
(6) Two (2) or more special taxing districts that are adjacent
to at least one (1) other special taxing district participating in
the reorganization.
(7) A township and a municipality that is located in any part
of the same township.
(8) A county and one (1) or more townships that are located
in the county.
(9) A municipality and a county that does not contain a
consolidated city.
(10) A school corporation and a county or municipality in
which a majority of the students of the school corporation
have legal settlement (as defined by IC 20-18-2-11).
(11) A municipal corporation, other than a unit or a school
corporation, and a county or municipality in which a majority
of the population of the municipal corporation resides.
(b) If a political subdivision reorganizes under this article with
one (1) or more other political subdivisions:
(1) any political subdivisions that did not participate in the
public question on the reorganization are not reorganized
under this article;
(2) the reorganization affects only those political subdivisions
in which the reorganization is approved as specified in this
article; and
(3) the reorganization does not affect the rights, powers, and
duties of any political subdivisions in the county in which the
reorganization is not approved as specified in this article.
Sec. 2. For purposes of this chapter, two (2) political
subdivisions may not be treated as adjacent if the political
subdivisions are connected by a strip of land that is less than one
hundred fifty (150) feet wide.
Sec. 3. Political subdivisions described in section 1 of this
chapter may participate under this chapter in any of the following
types of reorganization:
(1) Consolidation of the participating political subdivisions
into a single new political subdivision.
(2) Consolidation of the participating political subdivisions
into one (1) of the participating political subdivisions.
Sec. 4. As part of a reorganization in a finally approved plan of
reorganization, one (1) or more of the reorganizing political
subdivisions or the reorganized political subdivision may do the
following:
(1) Adjust any of its boundaries.
(2) Establish a joint service area with another political
subdivision.
(3) Transfer the functions of an office to another office.
(4) Provide for a legislative body, an executive, or a fiscal
body of the reorganized political subdivision to exercise the
powers of a legislative body, an executive, or a fiscal body of
a reorganizing political subdivision.
(5) Change the name of the political subdivision or select a
new name.
Sec. 5. (a) Except as provided in subsection (b), a reorganization
approved under this chapter takes effect when all of the following
have occurred:
(1) The later of:
(A) the date that a copy of a joint certification from the
county election board in each county in which reorganizing
political subdivisions are located that indicates that:
(i) the reorganization has been approved by the voters of
each reorganizing political subdivision; or
(ii) in the case of a reorganization described in section
1(a)(9) of this chapter, the reorganization has been
approved as set forth in section 32(b) of this chapter;
is recorded as required by section 31 of this chapter; or
(B) the date specified in the finally adopted plan of
reorganization.
(2) The appointed or elected officers of the reorganized
political subdivision are elected (as prescribed by section 36
of this chapter) or appointed and qualified, if:
(A) the reorganized political subdivision is a new political
subdivision and reorganizing political subdivisions are not
being consolidated into one (1) of the reorganizing political
subdivisions;
(B) the reorganized political subdivision will have different
boundaries than any of the reorganizing political
subdivisions;
(C) the reorganized political subdivision will have different
appointment or election districts than any of the
reorganizing political subdivisions; or
(D) the finally adopted plan of reorganization requires new
appointed or elected officers before the reorganization
becomes effective.
(b) A reorganization approved under this chapter may not take
effect during the year preceding a year in which a federal decennial
census is conducted. A consolidation that would otherwise take
effect during the year preceding a year in which a federal decennial
census is conducted takes effect January 2 of the year in which a
federal decennial census is conducted.
Sec. 6. When a reorganization under this chapter is effective:
(1) all of the participating political subdivisions, except the
reorganized political subdivision, cease to exist;
(2) unless the plan of reorganization provides for the
continuation of the term of office, the term of each of the
elected offices of each of the reorganizing political
subdivisions is terminated;
(3) if the plan of reorganization transfers the responsibilities
of any office to another office, the office from which the
responsibilities were transferred is abolished;
(4) the executives, legislative bodies, and fiscal bodies of the
reorganizing political subdivisions (other than any
reorganizing political subdivision that is treated under the
plan of reorganization as the successor reorganized political
subdivision) are abolished, and the responsibilities of the
executives, legislative bodies, and fiscal bodies are transferred
to the executive, legislative body, and fiscal body of the
reorganized political subdivision; and
(5) the property and liabilities of the reorganizing political
subdivisions become the property and liabilities of the
reorganized political subdivision, subject to section 40 of this
chapter.
Sec. 7. In the year before the year in which the participating
political subdivisions are reorganized under this chapter:
(1) the fiscal bodies of the reorganizing political subdivisions
shall, in the manner provided by IC 6-1.1-17, adopt tax levies,
tax rates, and a budget for the reorganized political
subdivision either through the adoption of substantially
identical resolutions adopted by each of the fiscal bodies or, if
authorized in the plan of reorganization, through a joint
board established under an agreement of the fiscal bodies on
which the members of each of the fiscal bodies are
represented; and
(2) if the reorganized political subdivision will have elected
offices and different election districts than any of the
reorganizing political subdivisions, the legislative bodies of the
reorganizing political subdivisions shall establish the election
districts either through the adoption of substantially identical
resolutions adopted by each of the legislative bodies or, if
authorized in the plan of reorganization, through a joint
board established under an agreement of the legislative bodies
on which the members of each of the legislative bodies are
represented.
Sec. 8. The department of local government finance may
prescribe forms for petitions, resolutions, certifications, and other
writings required under this chapter. A petition, resolution,
certification, or other writing related to a reorganization must be
substantially in the form prescribed by the department of local
government finance.
Sec. 9. A reorganization may be initiated by:
(1) adopting a resolution under section 10 of this chapter; or
(2) filing a petition under section 11 of this chapter.
Sec. 10. (a) The legislative body of a political subdivision may
initiate a proposed reorganization under this chapter by adopting
a resolution that:
(1) proposes a reorganization;
(2) names the political subdivisions that would be reorganized
in the proposed reorganization; and
(3) only in the case of a proposed reorganization described in
section 1(a)(9) of this chapter, states whether the vote on the
public question regarding the reorganization shall be:
(A) conducted on a countywide basis under section 30(b) of
this chapter, without a rejection threshold; or
(B) conducted on a countywide basis under section 30(b) of
this chapter, with a rejection threshold.
(b) The clerk of the political subdivision adopting the resolution
shall certify the resolution to the clerk of each political subdivision
named in the resolution.
Sec. 11. (a) The voters of a political subdivision may initiate a
proposed reorganization by filing a written petition, substantially
in the form prescribed by the department, with the clerk of the
political subdivision that:
(1) proposes a reorganization; and
(2) names the political subdivisions that would be reorganized
in the proposed reorganization.
(b) If the written petition is signed by at least five percent (5%)
of the voters of the political subdivision, as determined by the vote
cast in the political subdivision for secretary of state at the most
recent general election, the clerk of the political subdivision shall
certify the petition to the legislative body of the political
subdivision.
Sec. 12. (a) If a petition is certified to the legislative body of a
political subdivision under section 11 of this chapter, the legislative
body shall conduct a public hearing on the proposed
reorganization not sooner than five (5) days after publishing a
notice of the public hearing under IC 5-3-1. Not more than thirty
(30) days after the conclusion of the public hearing the legislative
body shall adopt a resolution, substantially in the form prescribed
by the department of local government finance, to do any of the
following:
(1) Decline to participate in the proposed reorganization.
(2) Propose a reorganization with the political subdivisions
named in the petition.
(3) Propose a reorganization with political subdivisions that
differ in part or in whole from the political subdivisions
named in the petition.
(b) In the case of a resolution adopted under this section
proposing a reorganization described in section 1(a)(9) of this
chapter, the resolution must also state whether the vote on the
public question regarding the reorganization shall be:
(1) conducted on a countywide basis under section 30(b) of
this chapter, without a rejection threshold; or
(2) conducted on a countywide basis under section 30(b) of
this chapter, with a rejection threshold.
(c) The clerk of the political subdivision adopting a resolution
proposing a reorganization under this section shall certify the
resolution to the clerk of each political subdivision named in the
resolution.
Sec. 13. (a) The legislative body of a political subdivision that
receives a certified resolution under section 10 or 12 of this chapter
may do any of the following:
(1) Adopt a resolution declining to participate in a proposed
reorganization.
(2) Adopt a substantially identical resolution proposing to
participate in a proposed reorganization with the political
subdivisions named in a resolution certified to the political
subdivision.
(3) Adopt a resolution proposing to participate in a proposed
reorganization with political subdivisions that differ in part
or in whole from the political subdivisions named in a
resolution certified to the political subdivision.
(b) In the case of a resolution adopted under this section
proposing to participate in a proposed reorganization described in
section 1(a)(9) of this chapter, the resolution must also state
whether the vote on the public question regarding the
reorganization shall be:
(1) conducted on a countywide basis under section 30(b) of
this chapter, without a rejection threshold; or
(2) conducted on a countywide basis under section 30(b) of
this chapter, with a rejection threshold.
(c) The clerk of the political subdivision adopting a resolution
proposing a reorganization under this section shall certify the
resolution to the clerk of each political subdivision named in the
resolution.
Sec. 14. The legislative body of a political subdivision may revise
a resolution certified under section 10, 12, or 13 of this chapter by
adding or deleting proposed parties to the reorganization until all
of the political subdivisions named in the resolution have adopted
substantially identical reorganization resolutions.
Sec. 15. Not later than thirty (30) days after the clerk of the last
political subdivision to adopt a reorganization resolution under this
chapter has certified the substantially identical resolution to all of
the political subdivisions named in the resolution, the reorganizing
political subdivisions shall appoint the number of individuals
specified in section 16 of this chapter to serve on a reorganization
committee to develop a plan of reorganization for the reorganizing
political subdivisions.
Sec. 16. (a) Members shall be appointed to a reorganization
committee as follows:
(1) In accordance with an agreement adopted by the
reorganizing political subdivisions. An agreement under this
subdivision must provide that not more than a simple
majority of the members appointed by each political
subdivision may be members of the same political party.
(2) If an agreement does not provide for the membership of a
reorganization committee under this chapter, three (3)
members shall be appointed by the executive of each political
subdivision participating in the reorganization. Not more than
two (2) of the members appointed by an executive of a
political subdivision may be members of the same political
party.
(b) The members of a reorganization committee serve at the
pleasure of the appointing authority. The reorganization
committee shall select a chairperson and any other officers that the
reorganization committee determines necessary from the members
of the reorganization committee.
(c) The members of a reorganization committee serve without
compensation. The members, however, are entitled to
reimbursement from the reorganizing political subdivisions for the
necessary expenses incurred in the performance of their duties.
(d) The reorganizing political subdivisions shall provide
necessary office space, supplies, and staff to the reorganization
committee. The reorganizing political subdivisions may employ
attorneys, accountants, consultants, and other professionals for the
reorganization committee.
(e) Except as otherwise provided in an agreement adopted by
the reorganizing political subdivisions, claims for expenditures for
the reorganization committee shall be made to the fiscal officer for
the reorganizing political subdivision with the largest population.
The fiscal officer shall pay the necessary expenditures and obtain
reimbursement from the reorganizing political subdivisions:
(1) in accordance with an agreement adopted by the
reorganizing political subdivisions; or
(2) in the absence of an agreement, in proportion to the
population of each reorganizing political subdivision.
subdivisions named in the resolution.
Sec. 19. The legislative body of each of the reorganizing political
subdivisions shall provide for the following:
(1) Consideration of a plan of reorganization presented by a
reorganization committee in the form of a resolution
incorporating the plan of reorganization in full or by
reference.
(2) Reading of the resolution incorporating the plan of
reorganization in at least two (2) separate meetings of the
legislative body of the political subdivision.
(3) Conducting a public hearing on the plan of reorganization:
(A) not sooner than five (5) days after notice of the public
hearing is published under IC 5-3-1; and
(B) before the legislative body takes final action on the
resolution to adopt the plan of reorganization.
Sec. 20. At a public hearing on a plan of reorganization
conducted under section 19 of this chapter, or in a public meeting
held not more than thirty (30) days after the public hearing
concludes, a legislative body of a reorganizing political subdivision
shall do one (1) of the following:
(1) Adopt the plan of reorganization as presented to the
legislative body.
(2) Adopt the plan of reorganization with modifications.
(3) Reject the plan of reorganization and order a
reorganization committee to submit a new plan of
reorganization within thirty (30) days after the legislative
body rejects the plan of reorganization.
Sec. 21. Any modifications in a plan of reorganization that are
adopted by a legislative body of a reorganizing political subdivision
must be adopted by the legislative body of each of the reorganizing
political subdivisions before the modifications are effective.
Sec. 22. The legislative body of each reorganizing political
subdivision shall take any of the actions described in section 20 of
this chapter on a revised plan of reorganization submitted by a
reorganization committee and each resolution modifying a plan of
reorganization or revised plan of reorganization in the same
manner as the legislative body may take action on the initially
submitted plan of reorganization.
Sec. 23. The legislative body of a reorganizing political
subdivision shall certify the legislative body's final action on a plan
of reorganization or revised plan of reorganization, as modified by
the legislative body, in the manner prescribed by the department
of local government finance, to the following:
(1) The chair of the reorganization committee.
(2) The clerk of each reorganizing political subdivision.
(3) The county fiscal officer of each county in which a
reorganizing political subdivision is located.
(4) The county recorder of each county in which a
reorganizing political subdivision is located.
Sec. 23.5. The following apply if the legislative bodies of all
political subdivisions that have been presented with a plan of
reorganization under section 18(d) of this chapter have not adopted
a plan of reorganization, either as presented by the reorganization
committee or as modified by all of the political subdivisions, within
one (1) year after the initial plan of reorganization is presented:
(1) Not later than one (1) month after the end of the one (1)
year period in which the legislative bodies must adopt a plan
of reorganization, the reorganization committee shall submit
a final plan of reorganization to the legislative bodies of the
political subdivisions.
(2) Not later than one (1) month after receiving the final plan
of reorganization under subdivision (1), each of the legislative
bodies must:
(A) hold a hearing on the final plan of reorganization; and
(B) adopt either a resolution approving the final plan of
reorganization or a resolution rejecting the final plan of
reorganization.
If a legislative body does not adopt a resolution under this
subdivision within the one (1) month period, the failure to
adopt a resolution is considered to be an approval of the final
plan of reorganization.
(3) If a legislative body adopts a resolution approving the final
plan of reorganization, the legislative body shall certify its
approval under section 23 of this chapter.
(4) If any of the legislative bodies adopts a resolution rejecting
the final plan of reorganization, the registered voters of a
political subdivision in which the final plan of reorganization
was rejected by a legislative body under subdivision (2) may
submit a petition to the clerk of the circuit court approving
the final plan of reorganization and requesting that a public
question be held on the final plan of reorganization. The
petition must be submitted not later than one hundred eighty
(180) days after the legislative body voted to reject the final
plan of reorganization. If the petition is signed by at least ten
percent (10%) of the voters of the political subdivision, as
determined by the vote cast in the political subdivision for
secretary of state at the most recent general election:
(A) the political subdivision is considered to have approved
the holding of the public question on the final plan of
reorganization, notwithstanding the vote by the legislative
body rejecting the final plan of reorganization; and
(B) the clerk of the circuit court shall certify approval of
the final plan of the reorganization and the holding of the
public question in the manner specified in section 23 of this
chapter.
Sec. 24. The legislative body of the reorganizing political
subdivision with the largest population shall provide for a certified
copy of the plan of reorganization to be filed with each of the
following at the same time certifications are made under section 23
of this chapter:
(1) The county recorder of each county in which a
reorganizing political subdivision is located.
(2) The department of local government finance.
(3) If any of the reorganizing political subdivisions is a school
corporation, the department of education.
(4) If the plan of reorganization changes any election district
or abolishes an elected office, the clerk of the circuit court in
each county affected by the election district or elected office.
Sec. 25. Each county recorder receiving a certification under
section 23 of this chapter, either from the legislative body of a
political subdivision or from a clerk of the circuit court after a
petition process under section 23.5 of this chapter in a political
subdivision, shall record the certification and the plan of
reorganization in the records of the county recorder without
charge.
Sec. 26. When a county recorder has received certifications
under this chapter from all of the reorganizing political
subdivisions, either from the legislative body of a political
subdivision or from a clerk of the circuit court after a petition
process under section 23.5 of this chapter in a political subdivision,
the county recorder shall notify the county election board of each
county in which a reorganizing political subdivision is located that
a public question on a plan of reorganization is eligible to be placed
on the ballot for consideration of the voters of each of the
reorganizing political subdivisions or (in the case of a
reorganization described in section 1(a)(9) of this chapter) for
consideration by the voters of the entire county.
Sec. 27. After the county recorder of each county in which
reorganizing political subdivisions are located has notified the
county election board that a public question on a plan of
reorganization is eligible to be placed on the ballot, the county
election board shall place the public question on the ballot in
accordance with IC 3-10-9 on the first regularly scheduled election
that will occur in all of the precincts of the reorganizing political
subdivisions at least sixty (60) days after the required notices are
received.
Sec. 28. A public question under this chapter shall be placed on
the ballot in all of the precincts that are located in the reorganizing
political subdivisions in substantially the following form:
"Shall _________ (insert name of political subdivision) and
_________ (insert name of political subdivision) reorganize as
a single political subdivision?".
Sec. 29. IC 3 applies to the election at which a public question
under this chapter is considered.
Sec. 30. (a) Except as provided in subsection (b), at the same
time that election results are certified under IC 3, the circuit court
clerk of each of the counties in which a public question under this
chapter is on the ballot shall jointly issue, in the form prescribed by
the state election board, a certificate declaring whether the public
question is approved or rejected by a majority of the voters voting
on the public question in each of the reorganizing political
subdivisions. In addition to any other requirements in IC 3
concerning filing of the certification, the certification shall be sent
to each of the following:
(1) The clerk of each of the reorganizing political subdivisions.
(2) The county auditor of each county in which a reorganizing
political subdivision is located.
(3) The county recorder of each county in which a
reorganizing political subdivision is located.
(4) The state board of accounts.
(5) The department of local government finance.
(6) The department of state revenue.
(7) The budget agency.
(8) If any of the reorganizing political subdivisions is a school
corporation, the department of education.
(b) In the case of a public question on a reorganization
described in section 1(a)(9) of this chapter:
(1) the public question on a plan of reorganization shall be
placed on the ballot for consideration by the voters of the
entire county;
(2) the vote on the public question by the voters of the entire
county shall be tabulated;
(3) if the legislative bodies of the reorganizing political
subdivisions have agreed that the vote on the public question
shall be conducted with a rejection threshold, the vote on the
public question by the voters of:
(A) each reorganizing municipality; and
(B) the county (excluding the voters of the reorganizing
municipalities);
shall be tabulated separately; and
(4) the circuit court clerk shall issue, in a form prescribed by
the state election board, separate certificates regarding
whether the public question is approved or rejected by the
voters of:
(A) the entire county;
(B) each reorganizing municipality (if the legislative bodies
of the reorganizing political subdivisions have agreed that
the vote on the public question shall be conducted with a
rejection threshold); and
(C) the county, excluding the voters of the reorganizing
municipalities (if the legislative bodies of the reorganizing
political subdivisions have agreed that the vote on the
public question shall be conducted with a rejection
threshold);
voting on the public question
Sec. 31. Each county recorder receiving a certification from a
circuit court clerk under section 30 of this chapter shall file the
certification without charge with the plan of reorganization
recorded under section 25 of this chapter.
Sec. 32. (a) This subsection does not apply to a reorganization
described in section 1(a)(9) of this chapter. A reorganization as
specified in the plan of reorganization is approved if a majority of
the voters in each reorganizing political subdivision voting on the
public question approve the public question on the reorganization.
The vote of voters of a reorganizing political subdivision (for
example, a city) who also are voters in a second reorganizing
political subdivision (for example, a township) that is
geographically larger than the first political subdivision and that
includes the territory of the first political subdivision shall be
included only in the tally of votes for the first reorganizing political
subdivision in which the voters reside.
(b) This subsection applies only to a reorganization described in
section 1(a)(9) of this chapter. The reorganization is approved only
if:
(1) the percentage of voters voting on the public question who
vote, on a countywide basis, in favor of the proposed
reorganization is at least equal to the countywide vote
approval percentage specified in the final reorganization plan;
(2) if the legislative bodies of the reorganizing political
subdivisions have agreed that the vote on the public question
shall be conducted with a rejection threshold, the percentage
of voters of the county (excluding the voters of the
reorganizing municipalities) voting on the public question
who vote against the reorganization is less than the rejection
threshold included in the final reorganization plan; and
(3) if the legislative bodies of the reorganizing political
subdivisions have agreed that the vote on the public question
shall be conducted with a rejection threshold, the percentage
of voters of each reorganizing municipality voting on the
public question who vote against the reorganization is less
than the rejection threshold included in the final
reorganization plan.
If the reorganization is not approved, the reorganization is
terminated. If the legislative bodies of the reorganizing political
subdivisions have agreed that the vote in the public question shall
be conducted with a rejection threshold, then in tabulating the
votes under subdivisions (2) and (3), the vote of voters of a
reorganizing municipality who also are voters in the county shall
be included only in the tally of votes for the municipality in which
the voters reside.
Sec. 33. Except in the case of a reorganization described in
section 1(a)(9) of this chapter, if a reorganization is not approved
by the majority of the voters in each reorganizing political
subdivision voting on the public question, the reorganization is
terminated. A political subdivision in which voters of the political
subdivision approved the reorganization may continue with a
reorganization with another political subdivision in which the
reorganization was approved only if a new plan of reorganization
is approved by the voters of each political subdivision in the
manner provided by this chapter. The reorganization committee
shall adopt a plan to specify how matters related to the termination
of the reorganization shall be handled.
Sec. 34. (a) This section applies if:
(1) in the case of a reorganization that is not described in
section 1(a)(9) of this chapter, the majority of the voters of
each of the reorganizing political subdivisions voting on the
public question approve the public question concerning the
reorganization; or
(2) in the case of a reorganization described in section 1(a)(9)
of this chapter, the reorganization is approved as set forth in
section 32(b) of this chapter.
(b) The political subdivisions are reorganized in the form and
under the conditions specified by the legislative bodies of the
reorganizing political subdivisions in the plan of reorganization
filed with the county recorder under this chapter.
Sec. 35. (a) This section applies to an initial election:
(1) of the members of a governing body or officers that are
elected by the voters for a reorganized political subdivision
that:
(A) is a town; and
(B) has town boundaries that encompass part of another
town that was part of the reorganization;
(2) that is conducted before the reorganization takes effect;
and
(3) to which IC 3-10-7-1 applies.
(b) The members of each precinct board shall be jointly
appointed by the town election boards of each of the reorganizing
political subdivisions.
Sec. 36. (a) This section applies if section 5 of this chapter
requires an election for a reorganization to become effective.
(b) At the next:
(1) general election, if the reorganized political subdivision is
not a municipality or a school corporation;
(2) municipal election, if the reorganized political subdivision
is a municipality; or
(3) primary or general election, as specified in an election plan
adopted in substantially identical resolutions by the legislative
body of each of the participating political subdivisions if the
reorganized political subdivision is a school corporation;
after the voters approve a reorganization, one (1) set of officers for
the reorganized political subdivision having the combined
population of the reorganizing political subdivisions shall be
elected by the voters in the territory of the reorganized political
subdivision as prescribed by statute.
(c) In the election described in subsection (b):
(1) one (1) member of the legislative body of the reorganized
political subdivision shall be elected from each election
district established by the reorganizing political subdivisions
in substantially identical resolutions adopted by the legislative
body of each of the reorganizing political subdivisions; and
(2) the total number of at large members shall be elected as
prescribed by statute for the reorganized political subdivision.
(d) If appointed officers are required in the reorganized political
subdivision, one (1) set of appointed officers shall be appointed for
the reorganized political subdivision. The appointments shall be
made as required by statute for the reorganized political
subdivision. Any statute requiring an appointed officer to reside in
the political subdivision where the appointed officer resides shall
be treated as permitting the appointed officer to reside in any part
of the territory of the reorganized political subdivision.
Sec. 37. The legislative bodies of the reorganizing political
subdivisions and an adjacent political subdivision may change the
boundaries of the reorganized political subdivision by adopting
substantially identical resolutions clearly describing the boundary
changes. The resolutions must be filed as required by law for a
boundary change for the reorganized political subdivision and may
not provide for a territory that is smaller than the territory
permitted by law for any of the political subdivisions. If the law
establishes additional procedures for the annexation or
disannexation of the territory of a political subdivision, the political
subdivisions changing boundaries must comply with the annexation
or disannexation procedures required by law.
Sec. 38. A reorganized political subdivision has the powers
granted by statute to a political subdivision of the same type as the
reorganized political subdivision. However, if authorized by the
plan of reorganization approved by the voters in a public question
under this chapter, the reorganized political subdivision will
exercise a power or have the officers or number of offices that a
statute would have permitted any of the reorganizing political
subdivisions to have.
Sec. 39. If a law does not permit the reorganized political
subdivision to exercise generally throughout the territory of the
reorganized political subdivision a power that any of the
reorganizing political subdivisions had before the reorganization,
the reorganized political subdivision may exercise the power
outside the original territory of the reorganizing political
subdivision only by following the laws applicable to the expansion
of the service area of the reorganizing political subdivision.
Sec. 40. The following apply in the case of a reorganization
under this article:
(1) Indebtedness that was incurred by a political subdivision
before the reorganization:
(A) may not be imposed on taxpayers that were not
responsible for payment of the indebtedness before the
reorganization; and
(B) must be paid by the taxpayers that were responsible for
payment of the indebtedness before the reorganization.
(2) Pension obligations existing as of the effective date of the
reorganization:
(A) may not be imposed on taxpayers that were not
responsible for payment of the pension obligations before
the reorganization; and
(B) must be paid by the taxpayers that were responsible for
payment of the pension obligations before the
reorganization.
Sec. 41. (a) Notwithstanding any other law, an individual:
(1) who is employed as a firefighter or a police officer by a
political subdivision that is reorganized under this article;
(2) who is a member of the 1977 fund before the effective date
of the reorganization under this article; and
(3) who, after the reorganization, becomes an employee of the
fire department, police department, or county police
department of the reorganized political subdivision;
remains a member of the 1977 fund without being required to meet
the requirements under IC 36-8-8-19 and IC 36-8-8-21. The
firefighter or police officer shall receive credit for any service as a
member of the 1977 fund before the reorganization to determine
the firefighter's or police officer's eligibility for benefits under
IC 36-8-8.
under this article; and
(3) who, after the reorganization, becomes an employee of the
reorganized political subdivision in a position that qualifies
the individual for service credit in the Indiana state teachers'
retirement fund;
remains a member of the pre-1996 account.
Sec. 42. If the functions of an elected office are transferred to
another elected office by a reorganization under this article, any
law, rule, or agreement that requires or permits an action by an
elected officer shall be treated after the functions of the elected
officer are transferred as referring to the elected officer to which
the functions have been transferred by the reorganization.
Sec. 43. The legislative body or voters of a reorganized political
subdivision may terminate a reorganization or restore one (1) or
more of the reorganizing political subdivisions participating in a
reorganization in the same manner that a reorganization may be
initiated under this chapter. If the voters in the reorganized
political subdivision approve a public question approving
termination of the reorganization or restoration of a reorganizing
political subdivision, the reorganized political subdivision shall
terminate the reorganization and restore the reorganizing political
subdivisions in the same manner as a reorganization is completed
under this chapter.
Chapter 5. Cooperative Agreements and Transfers of
Responsibilities
Sec. 1. Notwithstanding any other law, two (2) or more political
subdivisions may enter into a cooperative agreement under this
chapter by using the same procedures set forth in this article for
the initiation and approval of a reorganization under this article.
A cooperative agreement under this chapter may be initiated and
approved only in the manner set forth in this article for the
initiation and approval of a reorganization under this article.
Sec. 2. (a) A cooperative agreement under this chapter must
provide at least for the following:
(1) Its duration.
(2) Its purpose.
(3) The manner of financing, staffing, and supplying any joint
undertaking and of establishing and maintaining a budget for
any joint undertaking that is the subject of the cooperative
agreement.
(4) The methods that may be employed in accomplishing the
partial or complete termination of the cooperative agreement
and for disposing of property upon partial or complete
termination of the cooperative agreement.
(5) The manner in which the cooperative agreement is to be
administered.
(6) The manner of acquiring, holding, and disposing of real
and personal property that is the subject of the cooperative
agreement.
(b) A cooperative agreement may include any condition or term
that is necessary or appropriate.
Sec. 3. (a) The cooperative agreement may transfer the
functions of an employee or a department of a political subdivision,
including an elected office, to another employee or department of
any political subdivision that has entered into the cooperative
agreement.
(b) The functions of an elected office may be transferred only to
another elected office.
(c) The cooperative agreement may provide for the abolishment
of an elected office that is not required by the Constitution of the
State of Indiana.
Sec. 4. A political subdivision may enter into a cooperative
agreement with an entity to share the services of an employee
employed by any party to the agreement.
Sec. 5. A cooperative agreement may provide that a political
subdivision:
(1) may appropriate and pledge any legally available revenues
to the payment of the bonds, leases, or other obligations of
another political subdivision that is a party to the cooperative
agreement; and
(2) will appropriate legally available revenues for any other
payment under the cooperative agreement;
if the political subdivision's fiscal body finds that it is necessary,
desirable, and in the best interests of the residents of that political
subdivision.
Sec. 6. (a) A cooperative agreement may not permit an entity or
another instrumentality established to administer the cooperative
agreement to take any action that at least one (1) of the parties to
the cooperative agreement could not carry out on its own.
(b) A cooperative agreement may permit the transfer of money
from one (1) fund of a political subdivision for a use authorized by
the cooperative agreement.
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