Sec. 38. (a) A reorganized political subdivision has the powers granted by statute to a political subdivision of the same type as the reorganized political subdivision, including a power described in subsection (b). However, if authorized by the plan of reorganization approved by the voters in a public question under this chapter, the reorganized political subdivision will exercise a power or have the officers or number of offices that a statute would have permitted any of the reorganizing political subdivisions to have.

(b) Except as provided in the plan of reorganization, a reorganized political subdivision may also do any of the following:

(1) Establish any fund that one (1) or more of the reorganizing political subdivisions (either acting on its own or jointly with another political subdivision) were authorized to establish before the reorganization.

(2) Impose any tax levy or adopt any tax that one (1) or more of the reorganizing political subdivisions were authorized to impose or adopt before the reorganization.

(c) This subsection applies to reorganizations approved by voters after June 30, 2013. Notwithstanding subsection (a), if:

(1) a first political subdivision is located in whole or in part within one (1) or more other political subdivisions that reorganize under this article; and

(2) the first political subdivision does not participate in or does not approve the reorganization;

the reorganization does not affect the rights, powers, and duties of the first political subdivision, and the reorganized political subdivision may not exercise within the first political subdivision any right, power, or duty unless that right, power, or duty was exercised within the first political subdivision before the reorganization by at least one (1) of the reorganizing political subdivisions.

As added by P.L.186-2006, SEC.4. Amended by P.L.202-2013, SEC.22; P.L.255-2013, SEC.9.