CHAPTER 1.1. DISSOLUTION OF SMALL TOWNS
IC 36-5-1.1
Chapter 1.1. Dissolution of Small Towns
IC 36-5-1.1-1
Application of chapter
Sec. 1. This chapter applies to:
(1) towns having a population of less than five hundred (500);and
(2) included towns (as defined in IC 36-3-1-7).
As added by P.L.342-1987, SEC.2. Amended by P.L.5-1989,SEC.109.
IC 36-5-1.1-2
Institution of proceedings
Sec. 2. (a) Proceedings to dissolve a town may be instituted undersection 10.5 or 10.6 of this chapter or by filing with the executive ofthe county containing more than fifty percent (50%) in assessedvaluation of the land in the town:
(1) a resolution adopted by the town legislative body requestingdissolution; or
(2) a petition signed by at least twenty-five percent (25%) of thetown's voters registered at the last general election.
(b) On receipt of a petition or resolution for dissolution, thecounty executive shall mark the petition or resolution with the dateof filing.
As added by P.L.342-1987, SEC.2. Amended by P.L.5-1989,SEC.110; P.L.4-1991, SEC.143.
IC 36-5-1.1-3
Public hearing; notice
Sec. 3. The county executive shall hold a public hearing on apetition or resolution for dissolution filed under section 2 of thischapter not less than sixty (60) nor more than ninety (90) days afterthe date of the filing of the petition or resolution. The countyexecutive shall publish notice of the hearing in accordance withIC 5-3-1.
As added by P.L.342-1987, SEC.2.
IC 36-5-1.1-4
Recommendations of plan commission
Sec. 4. (a) The county executive shall forward one (1) copy of theresolution or petition filed under section 2 of this chapter to the plancommission, if any, having jurisdiction.
(b) The plan commission shall submit their writtenrecommendations for approval or disapproval of dissolution to thecounty executive at least ten (10) days before the hearing required bysection 3 of this chapter.
As added by P.L.342-1987, SEC.2. Amended by P.L.24-1995,SEC.26.
IC 36-5-1.1-5
Parties; remonstrance against dissolution; dismissal of petition
Sec. 5. The recipients of the notice required by section 3 of thischapter are parties to and are entitled to be heard at the publichearing. The petition for dissolution shall be dismissed if at any timeduring the dissolution proceedings, including an appeal, the countyexecutive or a court hearing an appeal is presented with a verifiedremonstrance against dissolution, signed by at least twenty-fivepercent (25%) of the town's voters registered at the last generalelection. The executive or court may determine the validity of theremonstrance by submitting it to the clerk of the circuit court for thecounty where the voter resides for verification.
As added by P.L.342-1987, SEC.2.
IC 36-5-1.1-6
Decision of county executive
Sec. 6. The county executive shall, on the date fixed under section3 of this chapter, hear and determine the petition or resolution andrender a decision on the question of dissolution.
As added by P.L.342-1987, SEC.2.
IC 36-5-1.1-7
Evidentiary considerations
Sec. 7. At the hearing the county executive shall approvedissolution unless the evidence establishes that:
(1) the petition requesting dissolution has not been signed by atleast twenty-five percent (25%) of the voters;
(2) there are enough invalid signatures on the petitionrequesting dissolution to reduce the number of valid signaturesto below twenty-five percent (25%) of the voters;
(3) at least twenty-five percent (25%) of the town's voters havesigned a petition under section 5 of this chapter remonstratingagainst the dissolution; or
(4) the town legislative body has passed a resolution opposingdissolution.
As added by P.L.342-1987, SEC.2.
IC 36-5-1.1-8
Residents' challenge to sufficiency or validity of petition
Sec. 8. The county executive shall permit the residents of the townto submit evidence challenging the sufficiency or the validity ofeither:
(1) a petition or resolution for dissolution; or
(2) a petition opposed to dissolution.
As added by P.L.342-1987, SEC.2.
IC 36-5-1.1-9
Appeal; notice; bond; transcript; change of venue; effective dateof dissolution
Sec. 9. (a) A person aggrieved by a decision made by the county
executive under section 6 of this chapter may, within thirty (30) days,appeal that decision or result to the circuit court for the countycontaining more than fifty percent (50%) in assessed valuation of theland in the town. The appeal is instituted by giving written notice tothe clerk of the circuit court and filing with the county executive abond for five hundred dollars ($500), with surety approved by thecounty executive. The bond must provide:
(1) that the appeal will be duly prosecuted; and
(2) that the appellants will pay all costs if the appeal is decidedagainst them.
(b) When an appeal is instituted, the county executive shall filewith the clerk of the circuit court a transcript of all proceedings in thecase, together with all papers filed in the case. The county executivemay not take further action in the case until the appeal is heard anddetermined.
(c) An appeal under this section shall be heard by the circuit courtwithout a jury. Change of venue from the judge may be granted, butchange of venue from the county may not be granted. If the courtorders the dissolution to take place, the circuit court clerk shall,immediately after the judgment of the court, certify the judgment ofthe circuit court to:
(1) the clerk of the municipality;
(2) the circuit court clerk of any other county in which the townis located; and
(3) the office of the secretary of state.
(d) Except as provided in subsection (e), the dissolution takeseffect sixty (60) days after the order is certified.
(e) A dissolution under this section may not take effect during theyear preceding a year in which a federal decennial census isconducted. A dissolution under this section that would otherwise takeeffect during the year preceding the year in which the federaldecennial census is conducted takes effect January 1 of the year inwhich a federal decennial census is conducted.
(f) Notwithstanding subsection (e) as that subsection existed onDecember 31, 2009, a dissolution that took effect January 2, 2010,because of the application of subsection (e), as that subsectionexisted on December 31, 2009, is instead considered to take effectJanuary 1, 2010, without any additional action being required.
As added by P.L.342-1987, SEC.2. Amended by P.L.5-1989,SEC.111; P.L.3-1997, SEC.459; P.L.123-2000, SEC.7;P.L.113-2010, SEC.125.
IC 36-5-1.1-10
Dissolution ordinance; effective date; disposition of property;validity of contracts; records
Sec. 10. (a) If the county executive approves dissolution undersection 6 of this chapter, the county executive shall adopt:
(1) an ordinance; or
(2) an order in a county having a consolidated city;
dissolving the town. (b) Except as provided in subsection (e), a dissolution takeseffect:
(1) at least sixty (60) days after the ordinance or order undersubsection (a) is adopted; and
(2) when the county auditor files a copy of the ordinance ororder with:
(A) the circuit court clerk of each county in which the townis located; and
(B) the office of the secretary of state.
(c) The property owned by the town after payment of debts andliabilities shall be disposed of by the county executive. Any proceedsremaining shall be deposited in the county general fund. Dissolutionof a town does not affect the validity of a contract to which the townis a party.
(d) After dissolution, the books and records of the town becomethe property of the county executive for safekeeping.
(e) A dissolution under this section may not take effect during theyear preceding a year in which a federal decennial census isconducted. A dissolution under this section that would otherwise takeeffect during the year preceding a year in which a federal decennialcensus is conducted takes effect January 1 of the year in which afederal decennial census is conducted.
(f) Notwithstanding subsection (e) as that subsection existed onDecember 31, 2009, a dissolution that took effect January 2, 2010,because of the application of subsection (e), as that subsectionexisted on December 31, 2009, is instead considered to take effectJanuary 1, 2010, without any additional action being required.
As added by P.L.342-1987, SEC.2. Amended by P.L.5-1989,SEC.112; P.L.10-1992, SEC.29; P.L.3-1997, SEC.460;P.L.123-2000, SEC.8; P.L.113-2010, SEC.126.
IC 36-5-1.1-10.5
Dissolution of town; requisites of resolution; notice; hearing;adoption of ordinance; effective date of dissolution; validity oftown contracts
Sec. 10.5. (a) This section applies to the dissolution of anincluded town.
(b) The town legislative body may adopt a resolution to considerdissolution of the town under this section. The resolution must statethe following:
(1) That the town legislative body conduct a public hearing ata stated date, place, and time concerning the dissolution of thetown.
(2) That the town legislative body will hear all statementspresented in favor of or in opposition to dissolution.
(3) That the town legislative body may adopt an ordinance todissolve the town at the conclusion of the public hearing.
(c) The town clerk shall publish a notice of the public hearing inaccordance with IC 5-3-1.
(d) The town legislative body may continue a public hearing
under this section. If a hearing is continued, the clerk is not requiredto publish an additional notice under subsection (c).
(e) The town legislative body may adopt an ordinance followingthe conclusion of the public hearing under subsection (b). The townclerk shall file a copy of the ordinance with:
(1) the circuit court clerk of the county; and
(2) the office of the secretary of state.
(f) Except as provided in subsection (g), the ordinance dissolvingthe town takes effect:
(1) at least sixty (60) days after adoption; and
(2) when the ordinance is filed under subsection (e).
(g) A dissolution under this section may not take effect during theyear preceding a year in which a federal decennial census isconducted. A dissolution under this section that would otherwise takeeffect during the year preceding a year in which the federal decennialcensus is conducted takes effect January 1 of the year in which afederal decennial census is conducted.
(h) When an ordinance dissolving a town becomes effective:
(1) the territory included within the town when the ordinancewas adopted becomes a part of the consolidated city;
(2) the books and records of the town become the property ofthe county executive;
(3) the property owned by the town after payment of debts andliabilities shall be disposed of by the county executive; and
(4) the county executive shall deposit any proceeds remainingafter payment of debts and liabilities into the county generalfund.
(i) The dissolution of a town under this section does not affect thevalidity of a contract to which the town is a party.
(j) Notwithstanding subsection (g) as that subsection existed onDecember 31, 2009, a dissolution that took effect January 2, 2010,because of the application of subsection (g), as that subsectionexisted on December 31, 2009, is instead considered to take effectJanuary 1, 2010, without any additional action being required.
As added by P.L.5-1989, SEC.113. Amended by P.L.3-1997,SEC.461; P.L.123-2000, SEC.9; P.L.113-2010, SEC.127.
IC 36-5-1.1-10.6
Included towns; petition; ballot question; filing certification; timeof dissolution; year preceding census year; results of dissolution;contracts
Sec. 10.6. (a) This section applies to included towns.
(b) The dissolution of a town under this section may be institutedby filing a petition with the county board of registration. The petitionmust be signed by at least the number of the registered voters of thetown required to place a candidate on the ballot under IC 3-8-6-3.The petition must be filed not later than June 1 of a year in which ageneral or municipal election will be held.
(c) If a petition meets the criteria set forth in subsection (b), thecounty board of registration shall certify the public question to the
county election board under IC 3-10-9-3. The county election boardshall place the question of dissolution on the ballot provided forvoters in the included town at the first general or municipal electionfollowing certification. The question shall be placed on the ballot inthe form prescribed by IC 3-10-9-4 and must state "Shall the town of________ dissolve?".
(d) If the public question is approved by a majority of the votersvoting on the question, the county election board shall file a copy ofthe certification prepared under IC 3-12-4-9 concerning the publicquestion described by this section with the following:
(1) The circuit court clerk of the county.
(2) The office of the secretary of state.
(e) Except as provided in subsection (f), dissolution occurs:
(1) at least sixty (60) days after certification under IC 3-12-4-9;and
(2) when the certification is filed under subsection (d).
(f) A dissolution under this section may not take effect during theyear preceding a year in which a federal decennial census isconducted. A dissolution under this section that would otherwise takeeffect during the year preceding a year in which the federal decennialcensus is conducted takes effect January 1 of the year in which afederal decennial census is conducted.
(g) When a town is dissolved under this section:
(1) the territory included within the town when the ordinancewas adopted becomes a part of the consolidated city;
(2) the books and records of the town become the property ofthe county executive;
(3) the property owned by the town after payment of debts andliabilities shall be disposed of by the county executive; and
(4) the county executive shall deposit any proceeds remainingafter payment of debts and liabilities into the county generalfund.
(h) The dissolution of a town under this section does not affect thevalidity of a contract to which the town is a party.
(i) Notwithstanding subsection (f) as that subsection existed onDecember 31, 2009, a dissolution that took effect January 2, 2010,because of the application of subsection (f), as that subsectionexisted on December 31, 2009, is instead considered to take effectJanuary 1, 2010, without any additional action being required.
As added by P.L.4-1991, SEC.144. Amended by P.L.3-1993,SEC.270; P.L.12-1995, SEC.130; P.L.3-1997, SEC.462;P.L.123-2000, SEC.10; P.L.113-2010, SEC.128.
IC 36-5-1.1-11
Limitation
Sec. 11. If a dissolution proceeding under this chapter isunsuccessful, the person seeking dissolution may not attempt a newproceeding under this chapter or IC 36-5-1 for at least one (1) yearfollowing the hearing under section 3 or 10.5 of this chapter or theelection under section 10.6 of this chapter.As added by P.L.342-1987, SEC.2. Amended by P.L.5-1989,SEC.114; P.L.4-1991, SEC.145.
IC 36-5-1.1-12
Towns not functioning for ten years; hearing; findings; adoptionof ordinance or ordering dissolution
Sec. 12. (a) This section does not apply to a town described byIC 36-5-1-11.5.
(b) A town subject to this chapter may be dissolved if the countyelection board of the county in which the greatest percentage ofpopulation of the town is located conducts a public hearing and findsthat the town has not elected town officers or had a functioning towngovernment during the preceding ten (10) years.
(c) The county election board shall certify the board's findings tothe county executive, who may adopt an ordinance or (in a countyhaving a consolidated city or subject to IC 36-2-3.5) issue an orderto dissolve the town.
As added by P.L.3-1993, SEC.271.