Ind. Code ch. 20-23-19

Ind. Code ch. 20-23-19
in effect

Ind. Code § 20-23-19-1 "Annex"

Sec. 1. As used in this chapter, "annex" has the meaning set forth in IC 20-23-5-2. As added by P.L.68-2025, SEC.200.

Ind. Code § 20-23-19-2 Dissolution of school corporation on July 1, 2027

Sec. 2. The Union School Corporation and the governing body of the Union School Corporation are dissolved on July 1, 2027. As added by P.L.68-2025, SEC.200.

Ind. Code § 20-23-19-3 Annexation of territory of school corporation; prohibition on issuing new bonds after July 1, 2027

Sec. 3. (a) On July 1, 2027, the territory of the Union School Corporation is annexed as follows: (1) All of the territory of the Union School Corporation that is located in Henry County is annexed to the Blue River Valley Schools School Corporation. (2) All of the territory of the Union School Corporation that is located in Randolph County is annexed to the Monroe Central School Corporation. (b) The Union School Corporation may not, after July 1, 2025, do any of the following: (1) Issue new bonds. (2) Enter into a lease. (3) Otherwise incur any new obligations. As added by P.L.68-2025, SEC.200.

Ind. Code § 20-23-19-4 Sale of building and real property owned by the school corporation before dissolution; procedures if sale does not occur

Sec. 4. (a) Notwithstanding IC 20-26-7.1, the governing body of the Union School Corporation, before its dissolution under this chapter, shall offer for sale and sell in the open market any building and real property owned by the Union School Corporation. (b) If the governing body is unable to sell a building described in subsection (a), the governing body of the Union School Corporation shall make the building available for purchase as provided under IC 20-26-7.1. (c) If the governing body of the Union School Corporation does not sell a building or any real property described in subsection (a), the governing body shall transfer ownership of the building and any real property to the governing body of the Monroe Central School Corporation. (d) Notwithstanding IC 20-26-7.1, the governing body of the Monroe Central School Corporation may offer for sale and sell any building or real property transferred under subsection (c) in the open market. As added by P.L.68-2025, SEC.200.

Ind. Code § 20-23-19-5 Payment of existing debts and liabilities of the dissolving school corporation

Sec. 5. (a) The governing body of the Union School Corporation shall use any unencumbered funds and assets, including buses or other personal property, owned or held by the Union School Corporation to pay existing debts or liabilities of the Union School Corporation. (b) If funds and assets described in subsection (a) are insufficient to pay all the existing debts or liabilities of the Union School Corporation, there is appropriated on June 1, 2027, to the Union School Corporation from the state general fund an amount sufficient to pay off all existing debts of the Union School Corporation. As added by P.L.68-2025, SEC.200.

Ind. Code § 20-23-19-6 Division and transfer of any remaining unencumbered funds

Sec. 6. (a) If the Union School Corporation has any remaining unencumbered funds or assets after all debts of the Union School Corporation are paid, the remaining unencumbered funds or assets must be divided for transfer to the Blue River Valley Schools School Corporation and the Monroe Central School Corporation as follows: STEP ONE: Determine the total assessed value of all property subject to taxation by the Union School Corporation. STEP TWO: Determine the total assessed value of all property subject to taxation by the Union School Corporation that is located in Henry County. STEP THREE: Determine the total assessed value of all property subject to taxation by the Union School Corporation that is located in Randolph County. STEP FOUR: Calculate the quotient of: (A) STEP TWO; divided by (B) STEP ONE. STEP FIVE: Calculate the quotient of: (A) STEP THREE; divided by (B) STEP ONE. STEP SIX: Determine the product of: (A) the amount or value of any remaining unencumbered funds or assets of the Union School Corporation; multiplied by (B) STEP FOUR. STEP SEVEN: Determine the product of: (A) the amount or value of any remaining unencumbered funds or assets of the Union School Corporation; multiplied by (B) STEP FIVE. (b) The governing body of the Union School Corporation shall do the following: (1) Determine the amount of the fair market value of each remaining unencumbered asset owned by the Union School Corporation. (2) Transfer the following not later than June 30, 2027: (A) The amount of any funds plus assets, as applicable, that is equal to the product determined under STEP SIX of subsection (a) to the Blue River Valley Schools School Corporation. (B) The amount of any funds plus assets, as applicable, that is equal to the product determined under STEP SEVEN of subsection (a) to the Monroe Central School Corporation. As added by P.L.68-2025, SEC.200.

Ind. Code § 20-23-19-7 Plans for annexed territory of the dissolving school corporation to be adopted not later than May 15, 2027

Sec. 7. (a) With the addition of the annexed territory under this chapter, the governing body of the Blue River Valley Schools School Corporation shall, not later than July 1, 2025, begin the process of adopting a plan, as needed, to determine the manner in which the governing body shall be constituted. (b) With the addition of the annexed territory under this chapter, the governing body of the Monroe Central School Corporation shall, not later than July 1, 2025, begin the process of adopting a plan, as needed, to determine the manner in which the governing body shall be constituted. (c) Except as provided in subsection (d), the plan shall be adopted in accordance with the requirements and procedures of IC 20-23-8. (d) The adoption of a plan under IC 20-23-8-10 and the submission of the plan to the state board under IC 20-23-8-15 are the only procedures required when an existing plan is changed as described in IC 20-23-5-11(b). (e) A plan described in subsection (a) or (b) must be adopted and effective not later than May 15, 2027. As added by P.L.68-2025, SEC.200.

Ind. Code § 20-23-19-8 Determination of residency in annexing districts; attribution and distribution of property tax revenue

Sec. 8. For purposes of meeting the requirements of IC 3-8-1-34, an individual residing in territory annexed under section 3 of this chapter is considered a resident of the Blue River Valley Schools School Corporation or the Monroe Central School Corporation, whichever is applicable, during the time period in which the individual resided in the territory before the annexation. As added by P.L.68-2025, SEC.200.

Ind. Code § 20-23-19-9 Applicability

Sec. 9. This subsection applies to the second installment of property taxes first due and payable in 2027. In the case of property tax revenue that, if not for the application of this chapter, is collected for Union School Corporation that is attributable to tangible property located in Randolph County, the Randolph County auditor shall distribute the property tax revenue instead to Monroe Central School Corporation. In the case of property tax revenue that, if not for the application of this chapter, is collected for Union School Corporation that is attributable to tangible property located in Henry County, the Henry County auditor shall distribute the property tax revenue instead to Blue River Valley School Corporation. As added by P.L.68-2025, SEC.200.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://iga.in.gov/laws/2026/ic/titles/20Fetched: 10/17/2026

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