SB 490 Summary

• Creates a process allowing residents to disannex territory from existing school corporations and either annex to another school corporation or form a new school corporation.

• Permits disannexation initiation through three methods: petition signed by majority of households with school-age children, petition signed by 10% of registered voters, or petition signed by 55% of registered voters, with varying approval requirements for each method.

• Establishes requirements for new school corporations formed through disannexation: minimum average daily attendance of 270 students in grades 9-12 or 1,000 students in grades 1-12, and assessed valuation of at least $5,000 per student.

• Requires voter approval through election (either during regular primary/general election or special election held 60-120 days after certification) for disannexations initiated by lower petition thresholds.

• Specifies that acquiring or new school corporations assume proportional indebtedness of relinquishing school corporations and that disannexation becomes effective July 1 or January 1 following state board approval.