CHAPTER 16.5. DISSOLUTION OF SMALLER DISTRICT AND ASSUMPTION OF OPERATIONS, OBLIGATIONS, AND ASSETS BY LARGER DISTRICT
IC 14-33-16.5
Chapter 16.5. Dissolution of Smaller District and Assumption ofOperations, Obligations, and Assets by Larger District
IC 14-33-16.5-1
Application
Sec. 1. This chapter applies to any two (2) conservancy districtsthat:
(1) are contiguous; and
(2) share at least one (1) common purpose set forth inIC 14-33-1-1.
As added by P.L.189-2005, SEC.7.
IC 14-33-16.5-2
Definitions
Sec. 2. As used in this chapter:
(1) "freeholder" means an owner of real property, as reflectedin the real property tax records of the county auditor;
(2) "larger district" means, of the two (2) districts referred to insection 1 of this chapter, the one (1) that has the larger numberof freeholders; and
(3) "smaller district" means, of the two (2) districts referred toin section 1 of this chapter, the one (1) that has the smallernumber of freeholders.
As added by P.L.189-2005, SEC.7.
IC 14-33-16.5-3
Initiation of dissolution proceedings; petition
Sec. 3. (a) The freeholders of a smaller district may initiatedissolution proceedings under this chapter by filing a petition withthe county auditor of the county in which most of the smallerdistrict's area is located. The petition must be signed by at least thelesser of:
(1) fifty (50); or
(2) five percent (5%);
of the smaller district's freeholders.
(b) A petition under subsection (a) may be circulated andpresented in separate parts. All the parts of the petition constitute asingle petition.
(c) The petitioning freeholders must sign the petition, showing:
(1) the name and address of each petitioner; and
(2) the date of the signature.
(d) A petition must state that the petitioners desire an election onthe question of whether:
(1) the smaller district will dissolve and become part of thelarger district; and
(2) the larger district will assume the smaller district'soperation, obligations, and assets.
(e) A person who presents a petition from the smaller district'sfreeholders under this section to the county auditor must verify and
certify the signatures on the petition upon oath.
As added by P.L.189-2005, SEC.7.
IC 14-33-16.5-4
County auditor; certification of petition; board resolution
Sec. 4. (a) Not later than thirty (30) days after a petition is filedwith the county auditor under section 3 of this chapter, the countyauditor shall:
(1) prepare and certify a list of freeholders of the smallerdistrict;
(2) make the list available for inspection by any person; and
(3) determine and certify whether the petition:
(A) was signed by the number of freeholders required undersection 3(a) of this chapter; and
(B) otherwise meets the requirements of this chapter.
(b) A deficiency in the list of the smaller district's freeholders oran omission of the name of a freeholder does not void the election orthe election's outcome.
(c) If the county auditor determines that a petition filed undersection 3 of this chapter meets the requirements of this chapter, theauditor shall, not later than forty (40) days after receiving thepetition, forward a notice to the board of directors of the largerdistrict by personal delivery or by certified mail. The notice must:
(1) inform the larger district that a petition was filed undersection 3 of this chapter by the freeholders of the smallerdistrict; and
(2) ask if the larger district is willing and able to assume thesmaller district's operation, obligations, and assets if the smallerdistrict's freeholders vote to dissolve the smaller district.
(d) Not later than thirty (30) days after receiving the notice fromthe county auditor under subsection (c), the board of directors of thelarger district may pass a resolution stating that:
(1) the larger district is willing and able to assume the smallerdistrict's operation, obligations, and assets; and
(2) upon becoming part of the larger district, the freeholders ofthe smaller district will:
(A) become full and equal freeholders of the larger district;and
(B) pay the same special benefits taxes and user chargesgenerally charged by the larger district.
(e) If the board of directors of the larger district passes a timelyresolution under subsection (d):
(1) the board of directors of the larger district must forward atrue and accurate copy of the resolution to the county auditor bypersonal delivery or by certified mail not later than ten (10)business days after the board passes the resolution; and
(2) the board of directors of the smaller district must hold adissolution and assumption election of the smaller district'sfreeholders under this chapter.
(f) If the board of directors of the larger district: (1) does not pass a timely resolution under subsection (d); or
(2) passes a timely resolution under subsection (d), but does nottimely forward a copy of the resolution under subsection (e)(1);
the dissolution proceedings that began with the filing of a petitionunder section 3 of this chapter are ended.
As added by P.L.189-2005, SEC.7.
IC 14-33-16.5-5
County auditor; notification of election
Sec. 5. Not later than ten (10) days after the county auditorreceives a resolution from the board of directors of the larger districtunder section 4 of this chapter, the county auditor shall, by personaldelivery or by certified mail, notify the board of directors of thesmaller district that the board of directors of the smaller district musthold the election referred to in section 4(e)(2) of this chapter.
As added by P.L.189-2005, SEC.7.
IC 14-33-16.5-6
Election procedures
Sec. 6. (a) Not later than ten (10) days after receipt of a noticeunder section 5 of this chapter, the board of directors of the smallerdistrict shall fix the following:
(1) A convenient and suitable place for the smaller district'selection.
(2) The date for the election that is at least sixty (60) days afterthe date on which the county auditor notifies the smallerdistrict's board under section 5 of this chapter.
(b) The voting place must open at 9 a.m. local time and remainopen for balloting continuously until 9 p.m. local time. If the numberof freeholders in the smaller district is too great for balloting at asingle voting place while allowing each freeholder a reasonable timeto cast a ballot, the board shall arrange for the number of votingplaces necessary to accommodate the freeholders eligible to vote.
(c) Notice of the date, time, place, and purpose of the electionmust be given for two (2) consecutive weeks in an English languagenewspaper of general circulation published in each county havingland in the smaller district, with the last publication:
(1) not less than fifteen (15) days; and
(2) not more than thirty (30) days;
before the date of the election.
(d) The board of directors of the smaller district shall also causeindividual notice of the election to be given to all the smallerdistrict's freeholders by first class mail.
(e) The notice published under subsection (c) and the individualfreeholder notice mailed under subsection (d) must be in thefollowing form:
Notice of a Dissolution and Assumption Election
to the Freeholders of the _______________
(insert smaller district) Conservancy District
1. You are a freeholder (i.e. a real property owner) of the
_______________ (insert smaller district) Conservancy District. Asa freeholder, you are one of the owners of the _______________(insert smaller district) Conservancy District.
2. A legally required number of the freeholders of the_______________ (insert smaller district) Conservancy District hasfiled a petition with the _______________ (insert county name)County Auditor requesting that the _______________ (insert smallerdistrict) Conservancy District be dissolved, and that the operation,obligations, and assets of the _____________ (insert smaller district)Conservancy District be assumed by the _____________ (insertlarger district) Conservancy District.
3. The _______________ (insert larger district) Conservancy Districtis contiguous to, has the same purpose as, and has a greater numberof freeholders than the _______________ (insert smaller district)Conservancy District.
4. The Board of Directors of the _______________ (insert largerdistrict) Conservancy District has passed a resolution stating:
A. That the _______________ (insert larger district)Conservancy District is willing to assume the operation,obligations, and assets of the _______________ (insert smallerdistrict) Conservancy District; and
B. That upon becoming part of the _______________ (insertlarger district) Conservancy District, the freeholders of the_______________ (insert smaller district) Conservancy Districtwill become full and equal freeholders of the _______________(insert larger district) Conservancy District and be subject toand pay the same special benefits taxes and user chargesgenerally charged by the (insert larger district) ConservancyDistrict.
5. An election of the freeholders of the _______________ (insertsmaller district) Conservancy District is set for the day of___________, ____, from 9:00 a.m. to 9:00 p.m., at the followinglocation(s): __________________.
6. The question presented for the election is whether the_______________ (insert smaller district) Conservancy Districtshould be dissolved, and whether the _______________ (insertlarger district) Conservancy District should assume the operations,obligations, and assets of the ________________ (insert smallerdistrict) Conservancy District.
7. A majority of the votes cast at the election will determine thequestion of whether the _______________ (insert smaller district)Conservancy District should be dissolved, and whether the_______________ (insert larger district) Conservancy Districtshould assume the operations, obligations, and assets of the_______________ (insert smaller district) Conservancy District.
8. As a freeholder of the _______________ (insert smaller district)Conservancy District, you are entitled to and encouraged to vote atthe election.
/ss/ Board of Directors, _______________
(insert smaller district) Conservancy District (f) If the board of directors of the smaller district fails to hold theelection as required by this chapter, the county auditor of the countyin which the smaller district's petition was filed shall:
(1) conduct the election as required by this chapter; and
(2) bill the board of directors of the smaller district for thecounty auditor's costs incurred for the election.
(g) The board of directors of the smaller district shall promptlypay a bill submitted to the smaller district under subsection (f).
As added by P.L.189-2005, SEC.7.
IC 14-33-16.5-7
Ballot requirements
Sec. 7. After receiving a notice under section 5 of this chapter, theboard of directors of the smaller district shall prepare and furnishballots in sufficient number in the following form:
"Shall the _______________ (insert smaller district) ConservancyDistrict be dissolved and its operations, obligations, and assets beassumed by the _______________ (insert larger district)Conservancy District?
[ ] Yes [ ] No"
As added by P.L.189-2005, SEC.7.
IC 14-33-16.5-8
Assistant secretary; voting list
Sec. 8. After receiving a notice under section 5 of this chapter, theboard of directors of the smaller district shall do the following:
(1) Appoint an assistant secretary.
(2) Provide a voting list at each voting place.
As added by P.L.189-2005, SEC.7.
IC 14-33-16.5-9
Clerks; list of freeholders
Sec. 9. (a) Before the voting begins under this chapter, the boardof directors of the smaller district shall appoint three (3) freeholdersof the district as clerks to conduct the dissolution and assumptionelection.
(b) Before casting a vote, each freeholder must sign the list offreeholders opposite the freeholder's name in the presence of thedistrict secretary.
(c) If:
(1) a clerk finds a freeholder's name is omitted from the list; and
(2) all three (3) clerks determine that the freeholder's nameshould be added to the list;
the clerks shall place the freeholder's name on the list and thefreeholder may vote.
As added by P.L.189-2005, SEC.7.
IC 14-33-16.5-10
Assistant secretary and clerks of smaller district; duties
Sec. 10. (a) After an election is held under this chapter, the
assistant secretary of the smaller district shall do the following:
(1) Keep the ballots safe and secure until the end of the votingperiod.
(2) At the end of the voting period, present all ballots cast to thethree (3) clerks.
(3) Record the election results in the records of the smallerdistrict.
(4) Certify the results of the election to the county auditor andthe circuit court having supervisory jurisdiction over the smallerdistrict as promptly as possible.
(b) The clerks of the smaller district shall do the following:
(1) Count the ballots.
(2) Report the results of the election to the secretary in writingover the signature of each clerk.
As added by P.L.189-2005, SEC.7.
IC 14-33-16.5-11
Determination of election by majority vote
Sec. 11. In an election held under this chapter, a majority of allvotes cast by the freeholders of the smaller district determines thequestion of the dissolution of the smaller district and the largerdistrict's assumption of the smaller district's operations, obligations,and assets.
As added by P.L.189-2005, SEC.7. Amended by P.L.1-2006,SEC.232.
IC 14-33-16.5-12
Election costs paid by smaller district
Sec. 12. The costs of a smaller district's election held under thischapter shall be paid by the smaller district.
As added by P.L.189-2005, SEC.7.
IC 14-33-16.5-13
Board of smaller district; duties after election
Sec. 13. (a) In an election held under this chapter, if a majority ofthe freeholders of the smaller district votes to dissolve the smallerdistrict, not later than sixty (60) days after the election, as the finalaction of the board of directors of the smaller district, the boardshall:
(1) make a full and final accounting to the circuit court havingsupervisory jurisdiction over the smaller district; and
(2) file all records of the smaller district with the court.
(b) If the smaller district's board of directors fails to timelycomply with subsection (a), the circuit court having supervisoryjurisdiction over the smaller district shall order the board to complyor suffer a finding of contempt of court.
(c) The larger district shall take custody and control of the smallerdistrict's operations, obligations, and assets on the earlier of:
(1) the date the smaller district's board of directors complieswith subsection (a)(1); or (2) the sixtieth day after the election.
(d) The larger district is directly responsible for payment of thesmaller district's bonds or notes outstanding upon the larger districttaking custody and control of the smaller district's operations,obligations, and assets.
(e) When the smaller district's board of directors complies withsubsection (a), the circuit court shall issue an order:
(1) dissolving the smaller district; and
(2) discharging the board of directors of the smaller district.
As added by P.L.189-2005, SEC.7.