HB 1177 Summary

• Creates a disannexation process allowing residents of a school corporation territory to separate and either annex to another school corporation or form a new school corporation, effective July 1, 2012.

• Establishes three petition methods to initiate disannexation: majority of households with school-age children, 10% of registered voters, or 55% of registered voters in the territory.

• Requires state board review of petitions and voter approval through special election or primary/general election ballot before disannexation becomes final.

• Sets minimum requirements for new school corporations: average daily attendance of at least 270 high school or 1,000 K-12 students and assessed valuation of at least $5,000 per student.

• Specifies that acquiring or newly-formed school corporations assume proportional shares of the relinquishing corporation's indebtedness and related financial obligations; disannexations cannot be challenged by remonstrance and lawsuits must be filed within 30 days of notice publication.