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Senate Bill 0459

Senate Bill 0459

ARCHIVE (2013)

Latest Information

DIGEST OF SB 459 (Updated April 26, 2013 2:59 pm - DI 87)

Local government reorganization. Specifies that after a local government reorganization, a reorganized political subdivision may (except as provided in the plan of reorganization) do any of the following: (1) Establish any fund that one or more of the reorganizing political subdivisions were authorized to establish before the reorganization. (2) Impose any tax levy or adopt any tax that one or more of the reorganizing political subdivisions were authorized to impose or adopt before the reorganization. Provides that in the case of: (1) a local government reorganization; (2) a township merger; (3) a transfer or sharing of powers, duties, functions, or resources under an interlocal cooperation agreement; or (4) a combination or reorganization of a political subdivision's departments, agencies, or functions; the reorganizing or merging local governments shall specify in the reorganization plan or in the cooperative agreement or other agreement the amount (if any) of the decrease that the department of local government finance (DLGF) shall make to the maximum property tax levies, maximum property tax rates, and budgets of the political subdivision to eliminate double taxation or eliminate any excess by which the amount of property taxes imposed by the political subdivision exceeds the amount necessary to pay for services. Provides the following regarding a township that merges with another township: (1) The new township may use any funds that are not needed to deliver services to pay the indebtedness of the new township government. (2) After satisfaction of the indebtedness, the new township may do the following with any remaining excess funds: (A) Transfer the funds to the county or a municipality having jurisdiction within the new township to make improvements to infrastructure located within the new township. (B) Transfer the funds to a transportation corporation that offers service within the area of the new township for use within the new township. (C) Use the funds for improvement of fire services within the new township. (D) Transfer the funds to a political subdivision that has jurisdiction within the new township for improvement of any fire department that provides service within the area of the new township. Provides that in the case of a government reorganization that involves one or more municipalities and one or more townships, all of which are participating units in a fire protection territory on the date the reorganization is approved by voters, the fiscal body of the reorganized political subdivision that results from a reorganization may establish an equipment replacement fund under the fire protection territory law and impose a property tax for the fund and take any other action under the fire protection territory law that may be taken by a participating unit in a fire protection territory. Specifies that the requirements and procedures in the statute governing the establishment of a cumulative fund and the imposing or increasing of a property tax rate for a cumulative fund also apply to an equipment replacement fund established for a fire protection territory. Requires the DLGF to assist township mergers and prohibits the DLGF from preventing or delaying township mergers. Removes the requirement that a county legislative body adopt an ordinance ordering a township merger after the legislative bodies of the merging townships adopt resolutions approving the merger. Removes provisions that prohibit a merger from being approved less than one year before the merger becomes effective. Provides that a township merger may reduce the term of office of a township trustee.
    Current Status:
    Law Enacted
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