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 ofannexation.
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 theboundaries of a school corporation are changed so that additionalterritory, constituting all or a part of one (1) or more other schoolcorporations, 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 theterritory acquired by an acquiring school corporation as a result ofannexation 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 actionin 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 acivil 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" meansa school corporation that loses territory to an acquiring schoolcorporation 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 trusteeand a majority of the township board; and
(2) any other school corporation means a resolution dulyadopted 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 schoolcorporation 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 aschool town; or
(4) has succeeded to the jurisdiction of a major part in area ofa 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 apublic school corporation of the state located in whole or in part ina 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 thischapter, any:
(1) school corporation may annex territory from any otherschool corporation by resolutions of the acquiring and losingschool corporations as provided in section 11 of this chapter;and
(2) school city may annex territory from any other schoolcorporation by a single resolution of the school city as providedin 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 schoolcorporation and a losing school corporation each adopts asubstantially identical annexation resolution that contains thefollowing items:
(1) A description of the annexed territory. The description must,as near as reasonably possible, be by streets and otherboundaries known by common names. The description does notneed to include a legal description unless a legal description isnecessary to identify the annexed territory. A notice is notdefective if there is a good faith compliance with this section
and if the area designated may be ascertained with reasonablecertainty by a person skilled in the area of real estatedescription.
(2) The time the annexation takes place. The time theannexation takes place may vary with respect to the differentparts of the annexed territory. If the entire annexed territory iscontiguous to the acquiring school corporation, the annexedterritory may be annexed so that some parts may not becontiguous to the annexed territory for temporary periods.
(3) The terms and conditions facilitating education of studentsin the annexed territory, losing school corporation, or acquiringschool corporation. The terms may include, but are not limitedto, the continued attendance by students in the annexed territoryat schools in the losing school corporation for specified periodsafter annexation on a transfer basis. If a student in an annexedterritory attends a school in a losing school corporation underthis subdivision, transfer tuition for the student must be paid bythe acquiring school corporation to the losing schoolcorporation in the manner and at the rates provided by thestatutes governing the computation and payment of transfertuition costs.
(4) The:
(A) disposition of assets and liabilities of the losing schoolcorporation to the acquiring school corporation;
(B) allocation between the acquiring school corporation andlosing school corporation of subsequently collected schooltaxes levied on property in the annexed territory; and
(C) amount, if any, to be paid by the acquiring schoolcorporation to the losing school corporation on account ofproperty 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 schoolcorporation and the losing school corporation. The notice mustinclude the text of the resolution, a statement that the resolution hasbeen adopted, and a statement that a right of remonstrance exists asprovided in this chapter. It is not necessary to set out theremonstrance provisions of this chapter in the notice. A generalreference to a right of remonstrance with a reference to this chapteris sufficient to satisfy the requirements of this subsection. Theannexation must take effect not later than thirty (30) days after thepublication of the notice or at the time provided in the resolution,whichever is later. However, the annexation is not required to takeeffect 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 thischapter, is filed in the circuit or superior court of the county in whichthe annexed territory or any part of the annexed territory is located.The remonstrance must be filed by registered voters residing in thelosing 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 votersresiding 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 schoolcity may effect an annexation as follows:
(1) The acquiring school corporation must adopt an annexationresolution of the type provided in section 11 of this chapter.Unless the losing corporation consents, the resolution may notprovide a time for annexation before July 1 following the May1 next succeeding the last publication of the notice ofannexation.
(2) The acquiring school corporation, after adopting aresolution under subdivision (1), shall give notice of the typeprovided in section 11 of this chapter by publication in theacquiring school corporation and in the losing schoolcorporation. The acquiring school corporation shall also givenotice to the losing school corporation before the lastpublication of notice of the type provided in section 11 of thischapter. The annexation must take effect thirty (30) days afterthe last publication in the losing school corporation or at thetime provided in the resolution, whichever is later. However,the annexation is not required to take effect within the periodrequired by this subdivision if a remonstrance, based on aground 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 theannexed 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 theannexed territory; or
(C) the owners of seventy-five percent (75%) or more inassessed 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 ofproperty are considered an owner.
(2) If record title of a single piece of property is in more thanone (1) individual, all the individuals constitute only one (1)owner, and the remonstrance of any one (1) of the individualsconstitutes the remonstrance of all the individuals, whether ornot the other individuals authorized the filing of theremonstrance.
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 and12 of this chapter shall be made two (2) times a week apart in two (2)daily newspapers of general circulation in the acquiring schoolcorporation and the losing school corporation. The two (2) dailynewspapers must be published in the English language. If there isonly one (1) daily newspaper or if there are not any daily newspapersin either school corporation, a weekly newspaper may be used toprovide notice. If there is only one (1) daily or weekly newspaper,publication in that newspaper is sufficient. If a newspaper is ofgeneral circulation in both school corporations, the publication ofnotice in the newspaper qualifies as one (1) of the requiredpublications in each of the school corporations. Publication may bemade jointly by the losing school corporation and the acquiringschool corporation. The remonstrance period runs from the secondpublication.
(b) If notice is required to be given by an acquiring schoolcorporation to a losing school corporation, it may be made byregistered or certified United States mail, return receipt requested,addressed to the:
(1) governing body of the losing school corporation at thegoverning 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 governingbody 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 chaptermust be in substantially the following form:
The undersigned hereby remonstrate against the annexation of thefollowing described territory situated in ________ County, Indiana,whereby it would be transferred from ___________ (the losingcorporation) to ____________ (the acquiring corporation):
(Description of the annexed territory sufficient to identify it.)
The remonstrance may be filed in any number of counterparts. Eachcounterpart must have attached to it the affidavit of the individualcirculating the counterpart that affirms that each signature appearingon the counterpart was affixed in the presence of the individualcirculating the counterpart and that each signature is the true andlawful signature of the individual who made it. The individual whomakes the affidavit is not required to be one (1) of the individualswho signs the counterpart to which the affidavit is attached. Theremonstrance must be accompanied by a complaint filed by one (1)or more of the remonstrators. The individual or individuals who filethe complaint must be treated as a representative of the entire classof remonstrators and must sign the complaint individually or havetheir respective attorneys sign it. The complaint must state thereasons for the remonstrance. The reasons for the remonstrance are
limited to 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 school corporation.
(3) The losing school corporation is left with no high schoolfacilities, or its enrollment after annexation will be less than onethousand (1,000) students. This subdivision does not provide abasis for a remonstrance if the annexation includes all of theterritory of the losing school corporation.
(4) The benefits to be derived from the annexation areoutweighed by the detriments after consideration of therespective benefits and detriments to the schools, the studentsresiding in the acquiring school corporation, the studentsresiding in the losing school corporation, and the studentsresiding in the annexed territory.
(5) The disposition of assets and liabilities of the losingcorporation, the allocation of school tax receipts between thetwo (2) school corporations, and the amount to be paid by theacquiring school corporation as set out in the annexationresolution are inequitable.
Except for subdivision (1), each allegation enumerated under thissubsection may be made in the statutory language.
(b) The plaintiff in a remonstrance suit is the individual whosename appears on the complaint and may be the losing schoolcorporation in a remonstrance under section 12 of this chapter. Thedefendants in a remonstrance under section 11 of this chapter are theacquiring school corporation and the losing school corporation. Thedefendant in a remonstrance under section 12 of this chapter is theacquiring school corporation. Service of process shall be made oneach defendant in the manner required in other civil actions.
(c) To determine if a petition is timely filed, the time of filing isthe time of filing with the clerk of the circuit court without regard tothe time of issuance of the summons. If the thirtieth day falls onSunday, a holiday, or any other day when the clerk's office is notopen, the time for filing must be extended to the next day when theclerk's office is open.
(d) The issues in a remonstrance suit are made up by theallegations in the complaint that are denied by each defendant. Aresponsive pleading does not need to be filed. A defendant may filea motion to dismiss the suit on the ground that the:
(1) requisite number of qualified remonstrators have not signedthe 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 befiled. With respect to a motion under subdivisions (1) and (2), theallegations are considered denied by the remonstrators. In order todetermine whether there are the requisite number of qualifiedremonstrators, an individual is not entitled to withdraw the
individual's name after a remonstrance is filed, and an individual isnot entitled to add the individual's name to the remonstrance after theremonstrance is filed. An individual may, however, at a remonstrancetrial, in support or derogation of the substantive matters in thecomplaint, introduce into evidence a verified statement that theindividual wishes to add or withdraw the individual's name from theremonstrance. The court may hear all or part of the matters raised bythe motion to dismiss separately, or the court may consolidate all orpart of the matters in the motion to dismiss with matters relating tothe substance of the case for trial. A complaint may not be dismissedfor failure to state a cause of action if a fair reading of the complaintmakes out one (1) of the grounds for remonstrance and suit providedin subsection (a). An amendment of the complaint may be permittedin the discretion of the court if the amendment does not state a newground of remonstrance.
(e) A remonstrance trial must be conducted in the same manner asother civil cases by the court without the intervention of a jury on theissues raised by a complaint or a motion to dismiss, or both. Achange of venue from a judge is permitted, but a change of venuefrom the county is not permitted. The court shall expedite the hearingof the case. A court's judgment, except with respect to a matter raisedunder 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 reasonfor 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 remonstrancedescribed in subsection (a)(1) through (a)(4), the court's judgmentshall be that the annexation will take place. If the remonstrators raisean issue under subsection (a)(5) in support of a remonstrance, thecourt's judgment may be either that the disposition, allocation, andamount set out in the annexing resolution are equitable orinequitable. If the court finds that the disposition, allocation, andamount set out in the annexing resolution are inequitable, the courtshall provide for an equitable disposition, allocation, and amount.Costs will follow judgment. Appeals may be taken from anyjudgment of the court in the same manner as appeals are taken inother 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 andliabilities of the losing school corporation is equitable, the allocationof school tax receipts is equitable, and the amount to be paid by theacquiring school corporation is equitable, a court must be satisfiedthat the annexing resolution conforms substantially to the following
standards:
(1) Except for current obligations or temporary borrowing, theacquiring school corporation shall assume a part of allinstallments of principal and interest on the indebtedness of thelosing school corporation that is 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 in the annexed territory. The part assumed by theacquiring school corporation consists of the following:
(A) All installments relating to any indebtedness incurred inconnection with the acquisition or construction of a buildinglocated in the annexed territory.
(B) A proportion of all installments relating to any otherindebtedness that is in the same proportion as the valuationof the real property in the annexed territory bears to thevaluation of all the real property in the losing schoolcorporation. Valuation under this clause is based upon theassessment for general taxation immediately beforeannexation.
(2) The acquiring school corporation shall make the paymentsand assume the obligations provided for a school corporationacquiring:
(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 schoolcorporation, the acquiring school corporation shall:
(A) acquire all the property and assets of the losing schoolcorporation without making any payments for the losingschool corporation; and
(B) assume all of the liabilities and obligations of the losingschool 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 aground set forth in section 14(a)(5) of this chapter, annexation doesnot become effective until final judgment in the remonstrance suit.A judgment is not considered final until the time for taking an appealhas expired or, if an appeal is taken within the permitted time, untila final judgment is issued in the appeal.
(b) A judgment of a trial court dismissing a remonstrance is afinal judgment, subject to subsection (a).
(c) If a judgment is against annexation, no further annexation ofthe annexed territory may occur for two (2) years after the date of thefiling of the remonstrance. However, a judgment against annexationdoes not prevent either the: (1) acquiring school corporation; or
(2) acquiring school corporation and the losing schoolcorporation;
from rescinding the annexation resolution. If an annexationresolution is rescinded under this subsection, the suit must bedismissed without prejudice. If an annexation suit is dismissedwithout prejudice under this subsection, the two (2) year prohibitiondoes not apply unless a subsequent annexation resolution is adoptedprimarily for the purpose of harassment and not for another purpose,such as the correction of procedural irregularities or a substantialchange in the annexed territory or the annexation resolution.
(d) If a remonstrance relates solely to a matter raised undersection 14(a)(5) of this chapter, the annexation takes effect at thetime 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 theboundaries of a school city or school town are coterminous orcoextensive with the boundaries of a civil city or civil town, theboundaries of a school city may be changed after March 8, 1961,solely by annexation under this chapter if this chapter was in effectat 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 partof 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 issupplementary. However, IC 20-23-4 and IC 20-23-16 are void to theextent that IC 20-23-4 and IC 20-23-16 conflict with the subsequentprovisions of this section.
(c) An annexation sought under this chapter does not require theapproval 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 isfinally 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) ormore school corporations.As added by P.L.1-2005, SEC.9.
IC 20-25-5-19
Annexations not effective before February 25, 1969; repeal ofstatute
Sec. 19. Acts 1961, c.186, s.9 is repealed regarding an annexationthat 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 inIC 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 theschool 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 boardof park commissioners of the city in which the school city is locatedand must be operated, managed, controlled, and maintained as arecreation center for the use and benefit of the city.
As added by P.L.1-2005, SEC.9.