IC 20-23-5
    Chapter 5. Community School Corporations: TerritoryAnnexations

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 ofannexation.
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 theboundaries of a school corporation are changed so that additionalterritory, constituting all or a part of any one (1) or more other schoolcorporations, 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 theterritory acquired by an acquiring school corporation as a result ofannexation 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" meansa school corporation that loses territory to an acquiring schoolcorporation 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 schoolcorporation means a resolution adopted by the school corporation'sgoverning 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 otherstatute of the state of Indiana, which has common boundarieswith any school corporation or corporations formed underIC 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 schoolcorporation by resolutions of the acquiring and losing schoolcorporations 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 corporationas follows:
        (1) The acquiring and the losing school corporations shall eachadopt a substantially identical annexation resolution. Theresolution must contain the following items:
            (A) The name of the acquiring school corporation, whichmay differ from the name of the acquiring corporation at thetime of the adoption of the resolution, after the effectivedate.
            (B) A description of the annexed territory. The descriptionshall as near as reasonably possible:
                (i) be by streets and other boundaries known by commonnames; and
                (ii) does not have to be by legal description unless theadditional description is necessary to identify the annexedterritory.
            A notice is not defective if there is a good faith compliancewith this section and if the area designated may beascertained with reasonable certainty by persons skilled inthe area of real estate description.
            (C) The time the annexation takes place.
            (D) Any terms and conditions facilitating education ofstudents in the:
                (i) annexed territory;
                (ii) losing school corporation; or
                (iii) acquiring school corporation.
            The terms may provide for the continued attendance bystudents in the annexed territory at schools in the losingschool corporation for specified periods after annexation ona transfer basis. If students will continue attendance inschools in the losing school corporation, transfer tuition forthe students shall be paid by the acquiring schoolcorporation to the losing school corporation:
                (i) using the method; and
                (ii) at the rates;
            provided by the Indiana statutes governing the computationand payment of transfer tuition costs.            (E) Disposition of assets and liabilities of the losing schoolcorporation to the acquiring school corporation.
            (F) Allocation between the acquiring and losing schoolcorporations of subsequently collected school taxes leviedon property in the annexed territory.
            (G) The amount, if any, to be paid by the acquiring schoolcorporation to the losing school corporation on account ofproperty received from the losing school corporation.
            (H) Dispositions, allocations, and amounts transferred underthis subsection must be equitable.
        (2) After the adoption of the resolution, notice shall be given bypublication in both the acquiring school corporation and thelosing school corporation setting out:
            (A) the text of the resolution; and
            (B) a statement that the resolution has been adopted and thata right of remonstrance exists as provided in this chapter.
        (3) It is not necessary to set out the remonstrance provisions ofthis chapter. A general reference to a right of remonstrance witha 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 aremonstrance may be filed a remonstrance is filed in the circuitor superior court of the county where the annexed territory orany part of the annexed territory is located, by registered votersresiding in the losing school corporation at least equal innumber to the greater of ten percent (10%) of the number ofregistered voters residing in the losing school corporation orfifty-one percent (51%) of the number of registered votersresiding 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 thischapter shall be made:
        (1) two (2) times;
        (2) a week apart; and
        (3) in two (2) daily newspapers of general circulation, publishedin the English language and of general circulation in theacquiring school corporation and in the losing schoolcorporation.
    (b) If there is only one (1) or no daily newspaper in either schoolcorporation, a weekly newspaper may be used.
    (c) If there is only one (1) daily or weekly newspaper, publicationin the newspaper is sufficient.
    (d) If a newspaper is of general circulation in both the acquiringschool corporation and the losing school corporation, publication inthe 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 schoolcorporation 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 mustbe in the following or a substantially similar form:
        "The undersigned hereby remonstrate against the annexation ofthe following described territory situated in ______ County,Indiana, whereby it would be transferred from ______ (thelosing corporation) to _______ (the acquiring corporation):
    (Description of the annexed territory sufficient to identify it.)".
The remonstrance may be filed in any number of counterparts. Eachcounterpart shall have attached to it the affidavit of the personcirculating it that each signature appearing on the remonstrance wasaffixed in the presence of the person circulating the petition and isthe true and lawful signature of the person who made the signature.The person who makes the affidavit does not have to be one (1) ofthe persons who signs the counterpart to which the affidavit isattached. The remonstrance must be accompanied by a complaintfiled by one (1) or more of the remonstrators (who shall be treated asa representative of the entire class of remonstrators) and signed bythe remonstrator or the remonstrator's attorney, stating the reasonsfor the remonstrance. The reasons for the remonstrance are limitedto the following:
        (1) There is a procedural defect in the manner in which theannexation is carried out that is jurisdictional.
        (2) The annexed territory does not form a compact area abuttingthe acquiring corporation.
        (3) The benefits to be derived from the annexation areoutweighed by the detriments, taking into consideration therespective benefits and detriments to the schools and of thestudents residing in the acquiring school corporation, the losingschool corporation, and the annexed territory.
        (4) The:
            (A) disposition of assets and liabilities of the losing schoolcorporation;
            (B) allocation of school tax receipts between the acquiringschool corporation and the losing school corporation; and
            (C) amount to be paid by the acquiring school corporation asset out in the annexation resolution;
        are inequitable. Except with respect to subdivision (1), theallegations may be made in the statutory language.
    (b) The plaintiff in a remonstrance under section 8 of this chaptermust be the person whose name appears on the complaint. Thedefendants in a remonstrance under section 8 of this chapter shall beboth the acquiring school corporation and the losing school

corporation. Service of process shall be made on the defendants asin other civil actions.
    (c) To determine if a petition was timely filed, the time of filingis the time of filing with the clerk without regard to the time ofissuance of the summons. If the thirtieth day falls on Sunday, aholiday, or any other day when the clerk's office is not open, the timeshall be extended to the next day when the office is open.
    (d) The issues in a remonstrance under section 8 of this chapterare made up by the complaint. The allegations in the complaint shallbe treated as denied by each defendant. A responsive pleading maynot be filed except that any defendant may, if appropriate, file amotion to dismiss the remonstrance on the ground that:
        (1) the requisite number of qualified remonstrators have notsigned 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 respectto a motion under subdivisions (1) and (2), the allegations of thepleading shall be treated as denied by the remonstrators. Todetermine whether there are the requisite number of qualifiedremonstrators, a person may not withdraw the person's name after aremonstrance has been filed or add the person's name to theremonstrance. Any person may, however, at the trial of the cause andin support or derogation of the substantive matters in the complaint,introduce into evidence a verified statement that the person wishesthe person's name added to or withdrawn from the remonstrance. Thecourt may either hear all or a part of the matters raised by the motionto dismiss separately or may consolidate for trial all or a part of thematters with the matters relating to the substance of the case. Acomplaint may not be dismissed for failure to state a cause of actionif a fair reading of the complaint supports one (1) of the grounds forremonstrance provided in subsection (a). The court may permit anamendment of the complaint if the amendment does not state a newground of remonstrance.
    (e) The trial of a remonstrance shall be conducted as other civilcases by the court without the intervention of a jury on the issuesraised by the complaint or a motion to dismiss, or both. A change ofvenue from a judge may be permitted. A change of venue from thecounty may not be permitted. The court shall expedite the hearing ofthe case. The court's judgment, except with respect to any matterraised 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 thereasons for the remonstrance described in subsection (a)(1) through(a)(4), the court's judgment shall be that the annexation may not takeplace. Unless the remonstrators have proved at least one (1) of thereasons 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), thecourt's judgment may be either that the disposition, allocation, andamount set out in the annexing resolution is equitable or that it isinequitable. In the latter event, the court in the court's judgment shallprovide for an equitable disposition, allocation, and amount. Costsshall follow judgment. Appeals may be taken from any judgment ofthe 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 takesplace, the governing body of the acquiring school corporation andlosing school corporation shall adopt a plan determining the mannerin which the governing body shall be constituted. The plan shall beadopted in accordance with the requirements and procedures ofIC 20-23-8, except as set out in subsection (b).
    (b) The adoption of a plan by the governing body in accordancewith IC 20-23-8-10 and its submission to the state board underIC 20-23-8-15 are the only procedures required when an existing planis changed as follows:
        (1) All governing body members are elected at large, and thereare no governing body member residency districts.
        (2) Governing body members are elected from governing bodymember residency districts, and the annexed territory is addedto or deleted from one (1) or more districts.
        (3) A governing body member is appointed from a given area ordistrict, and the annexed territory is added to or deleted fromone (1) or more districts or areas.
        (4) A governing body member is elected solely by the voters ina school governing body member district, but the addition ordeletion of the annexed territory to or from an existing districtdoes not constitute a denial of equal protection of the laws.
If a school corporation elects or appoints members of its governingbody both from a school governing body member districtencompassing the entire school corporation and from smallerdistricts, the governing body of the acquiring school corporationshall add the annexed territory both to the district consisting of theentire school corporation and to one (1) or more smaller districts. Ina comparable situation, the losing school corporation shall delete theannexed territory both from the district consisting of the entireschool corporation and from any smaller district or districts. Thechange in the plan becomes effective upon its approval by the stateboard. The application of this subsection does not limit the initiationof, 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 assetsand liabilities of the losing school corporation, allocation of schooltax receipts, and the amount to be paid by the acquiring schoolcorporation is equitable, the court, subject to subsection (b), shall besatisfied that the annexing resolution conforms substantially to thefollowing standards:
        (1) The acquiring school corporation shall assume a part of allinstallments of principal and interest on any indebtedness of thelosing school corporation (other than current obligations ortemporary borrowing) that fall due after the end of the lastcalendar year in which the losing school corporation is entitledto receive current tax receipts from property tax levies on theproperty of the annexed territory. The part consists of thefollowing:
            (A) All installments relating to any indebtedness incurred inconnection with the acquisition or construction of anybuilding located in the annexed territory.
            (B) A proportion of all installments relating to any otherindebtedness that is the same proportion as the valuation ofthe real property in the annexed territory bears to thevaluation of all the real property in the losing schoolcorporation, as the indebtedness is assessed for generaltaxation immediately before annexation.
        (2) The acquiring school corporation shall make the paymentsand assume the obligations provided for a school corporationacquiring territory or a building or buildings under IC 20-47-5.
    (b) Standards under subsection (a) may not be applicable to theextent the losing school corporation and acquiring school corporationotherwise agree in a situation where all or a majority of the studentsin the annexed territory have been transferred from the losing schoolcorporation to the acquiring school corporation for the five (5)school years immediately preceding the transfer. The agreementbetween school corporations may not prejudice the rights ofbondholders or lessors whose rights against the losing schoolcorporation and acquiring school corporation shall, uponenforcement, be allocated between the losing school corporation andacquiring 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 onnew annexation proceeding following adverse judgment
    Sec. 13. (a) If a remonstrance is filed on grounds other than thegrounds in section 10(a)(4) of this chapter, annexation does notbecome 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 finaljudgment. If judgment is against the annexation, a further annexationof the annexed territory may not take place for two (2) years after thedate the remonstrance was filed. A final judgment may not preventeither the acquiring school corporation or acquiring schoolcorporation and losing school corporation from rescinding theannexation resolution. If the suit is dismissed without prejudice, thetwo (2) year prohibition does not apply unless a subsequentannexation resolution is adopted primarily for the purpose ofharassment and not for some other purpose, including the correctionof procedural irregularities or a substantial change in the annexedterritory or the annexation resolution.
    (b) If the remonstrance relates solely to any matter raised undersection 10(a)(4) of this chapter, the annexation takes effect at thetime 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 arerepealed. This chapter may not be construed to repeal any part ofIC 20-23-4 or any statute concerning the consolidation of two (2) ormore 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 byoperation of any section of this chapter may require, for itseffectiveness, any approval of any county committee or statecommission or committee created under, or referred to in,IC 20-23-4.
As added by P.L.1-2005, SEC.7.