2021 Indiana Code
Title 20. Education
Article 23. Organization of School Corporations
Chapter 6. Consolidation of School Corporations
20-23-6-9. Abandonment of Old School Corporations; Transfer of Property and Obligations to New Corporations; Disposition of Unneeded Property; Procedure
Sec. 9. (a) When any:
(1) school town;
(2) school city;
(3) school township;
(4) joint school; or
(5) consolidated school;
has become consolidated by resolution or election and the new governing body has been appointed and legally organized, the former school township, school town, school city, joint school, or consolidated school is considered abandoned.
(b) All school:
(1) property;
(2) rights;
(3) privileges; and
(4) any indebtedness;
from the abandoned school is considered to accrue to and be assumed by the new consolidated school corporation.
(c) The title of property shall pass to and become vested in the new consolidated school corporation. All debts of the former school corporations shall be assumed and paid by the new consolidated school corporation. All the privileges and rights conferred by law upon the former:
(1) school town;
(2) school city;
(3) school township;
(4) joint school; or
(5) consolidated school;
are granted to the newly consolidated school corporation.
(d) This subsection applies when the consolidated governing body of a consolidated school corporation decides that property acquired under subsection (b) from a township is no longer needed for school purposes. The governing body shall offer the property as a gift to the township that owned the property before the school was consolidated. If the property contains a structure that the governing body wishes to demolish, the governing body shall give written notice of the proposed demolition to the township. The township shall, within ninety (90) days after receiving the notice, inform the governing body in writing as to whether the township wishes to retain the structure. If the township wishes to retain the structure, the governing body may not demolish the structure before transferring the property. The township may sell or lease the property to an Indiana nonprofit corporation that is exempt from federal income taxation under Section 501 of the Internal Revenue Code. If the township board accepts the offer, the governing body shall give the township a quitclaim deed to the property. If the township board refuses the offer, the governing body may sell the property in the manner provided in subsection (e).
(e) This subsection provides the procedure for the sale of school property that is no longer needed for school purposes by the governing body of a consolidated school corporation. The governing body shall cause the property to be appraised at a fair cash value by:
(1) one (1) disinterested resident freeholder of the school corporation offering the property for sale; and
(2) two (2) disinterested appraisers licensed under IC 25-34.1;
who are residents of Indiana. One (1) of the appraisers described under subdivision (2) must reside not more than fifty (50) miles from the property. The appraisals shall be made under oath and spread of record upon the records of the governing body. A sale may not be made for less than the appraised value, and the sale must be made for cash. The sale shall take place after the governing body gives notice under IC 5-3-1 of the terms, date, time, and place of sale.
(f) Proceeds from a sale under subsection (e) shall be placed in the operations fund of the consolidated school corporation.
(g) This subsection applies when the consolidated governing body of a consolidated school corporation decides that property acquired under subsection (b) from a city or town is no longer needed for school purposes. The governing body shall offer the property as a gift to the city or town that owned the property before the school was consolidated. If the property contains a structure that the governing body wishes to demolish, the governing body shall give written notice of the proposed demolition to the city or town. The city or town shall, within ninety (90) days after receiving the notice, inform the governing body in writing as to whether the city or town wishes to retain the structure. If the city or town wishes to retain the structure, the governing body may not demolish the structure before transferring the property. If the fiscal body of the city or town accepts the offer, the governing body shall give the city or town a quitclaim deed to the property. If the fiscal body of the city or town refuses the offer, the governing body may sell the property in the manner provided in subsection (e).
[Pre-2005 Elementary and Secondary Education Recodification Citation: 20-4-5-8.]
As added by P.L.1-2005, SEC.7. Amended by P.L.2-2006, SEC.97; P.L.113-2006, SEC.13; P.L.220-2015, SEC.3; P.L.244-2017, SEC.25.
