Bill Text: IN HB1126 | 2012 | Regular Session | Enrolled
Bill Title: Water and wastewater issues.
Spectrum: Bipartisan Bill
Status: (Enrolled - Dead) 2012-03-19 - Signed by the Governor [HB1126 Detail]
Download: Indiana-2012-HB1126-Enrolled.html
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in
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AN ACT to amend the Indiana Code concerning utilities.
Be it enacted by the General Assembly of the State of Indiana:
(1) water
(2) wastewater utility; or
(3) combined water and wastewater utility;
that
(b) As used in this section, "works" refers to water or wastewater utility works.
(1) published in accordance with IC 5-3-1 (IC 5-3-1-1 through IC 5-3-1-9);
(2) mailed to owners of vacant or unimproved property if the
ordinance includes a fee for water or wastewater service to
vacant or unimproved property; and
(3) mailed to users of the waterworks of the works for service to
property located outside the municipality's corporate boundaries.
The notice may be mailed in any form so long as the notice of hearing
is conspicuous. The hearing may be adjourned from time to time.
Notice mailed under subdivision (3) must include a statement that,
following adoption of the ordinance, the users described in
subdivision (3) may be entitled to petition the commission under
section 8.3 of this chapter to review and adjust the rates and
charges imposed on the users if a petition under section 8.2 of this
chapter or under IC 36-9-23-26.1 with respect to the same rate
ordinance has not been filed.
(c) (d) After the hearing, the municipal legislative body shall adopt
the ordinance establishing the rates and charges, either as originally
introduced or as modified. A copy of the schedule of rates and charges
adopted shall be kept on file and available for public inspection in the
offices of the board and the municipal clerk. An ordinance adopted
after March 31, 2012, that imposes different rates and charges for
service to property located outside the corporate boundaries of the
municipality as compared to property located within the corporate
boundaries of the municipality must state in plain language the
percentage difference between the rates and charges.
(d) (e) The rates and charges established for any class of users or
property shall be extended to cover any additional property that is
subsequently served and falls within the same class, without any
hearing or notice.
(e) (f) The municipal legislative body may change or readjust the
rates and charges in the same manner as they were established.
(f) (g) Rates and charges collected under this chapter are considered
revenues of the waterworks. utility.
SECTION 2. IC 8-1.5-3-8.2 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 8.2. (a) As used in
this section: applies to all municipally owned water utilities that have
been taken out of the jurisdiction of the commission for the approval
of rates and charges.
(1) "utility"; and
(2) "works";
have the meaning set forth for those terms in section 8.1 of this
chapter.
(b) Owners of property connected or to be connected to and served
by the waterworks works authorized under this chapter may file a
written petition objecting to the rates and charges of the waterworks
utility so long as:
(1) the petition contains the names and addresses of the
petitioners;
(2) the petitioners attended the public hearing provided under
section 8.1 of this chapter;
(3) the written petition is filed with the municipal legislative body
within five (5) days after the ordinance establishing the rates and
charges is adopted under section 8.1 of this chapter; and
(4) the written petition states specifically the ground or grounds
of objection; and
(5) a petition has not been filed with the commission under
section 8.3 of this chapter or under IC 36-9-23-26.1 appealing
the same rates and charges of the utility.
(c) Unless the objecting petition is abandoned, the municipal clerk
shall file in the office of the clerk of the circuit or superior court of the
county a copy of the rate ordinance or ordinances together with the
petition. The court shall then set the matter for hearing at the earliest
date possible, which must be within twenty (20) days after the filing of
the petition with the court. The court shall send notice of the hearing
by certified mail to the municipality and to the first signer of the
petition at the address shown on the petition. All interested parties shall
appear in the court without further notice, and the municipality may not
conduct any further proceedings concerning the rates and charges until
the matters presented by the petition have been heard and determined
by the court.
(d) At the discretion and upon direction of the court, the petitioners
shall file with the petition a bond in the sum and with the security fixed
by the court. The bond must be conditioned on the petitioners' payment
of all or part of the costs of the hearing and any damages awarded to
the municipality if the petition is denied, as ordered by the court.
(e) Upon the date fixed in the notice, the court shall, without a jury,
hear the evidence produced. The court may confirm the decision of the
municipal legislative body or sustain the objecting petition. The order
of the court is final and conclusive upon all parties to the proceeding
and parties who might have appeared at the hearing, subject only to the
right of direct appeal. All questions that were presented or might have
been presented are considered to have been adjudicated by the order of
the court, and no collateral attack upon the decision of the municipal
legislative body or order of the court is permitted.
(f) If the court sustains the petition, or if the petition is sustained on
appeal, the municipal legislative body shall set the rates and charges in
accordance with the decision of the court.
SECTION 3. IC 8-1.5-3-8.3 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 8.3. (a) This section applies to a utility that
provides service to property located outside the corporate
boundaries of the municipality.
(b) As used in this section:
(1) "utility"; and
(2) "works";
have the meaning set forth for those terms in section 8.1 of this
chapter.
(c) This subsection applies if a municipal legislative body adopts
an ordinance under section 8.1 of this chapter or under
IC 36-9-23-26 that is in effect on March 31, 2012, and that imposes
rates and charges on users of the works for service to property
located outside the corporate boundaries of the municipality that
exceed by more than fifteen percent (15%), but not more than fifty
percent (50%), the rates and charges imposed on users of the
works for service to property located within the corporate
boundaries of the municipality. Not later than September 30, 2012,
the municipality may petition the commission to approve the
percentage difference between rates and charges established in the
ordinance for property within and property outside the corporate
boundaries. In the petition, the municipality shall set forth the
following:
(1) The date on which the ordinance took effect.
(2) The percentage difference between rates and charges
imposed on users of the works for service to property located
outside the corporate boundaries of the municipality and to
property located within the corporate boundaries of the
municipality.
(3) Whether the works that is the subject of the ordinance is
a water utility works, a wastewater utility works, or both a
water and wastewater utility works.
If the commission determines that a petition filed under this
subsection satisfies the requirements of this subsection, the
commission shall approve the petition, including the percentage
difference between rates and charges described in subdivision (2).
If the commission determines that a petition filed under this
subsection does not satisfy the requirements of this subsection, the
commission shall disapprove the petition. However, if the
percentage difference imposed in the ordinance was the subject of
an objecting petition that was filed under section 8.2 of this chapter
or under IC 36-9-23-26.1 and sustained on final judgment or
appeal, as applicable, by a court, the percentage difference is
considered approved without the filing of a petition under this
subsection.
(d) If a municipality that files, or that is exempt from filing, a
petition under subsection (c) adopts an ordinance under section 8.1
of this chapter after March 31, 2012, that imposes rates and
charges on users of the works for service to property located
outside the corporate boundaries of the municipality that exceed
the rates and charges imposed on users of the works for service to
property located within the corporate boundaries of the
municipality by more than the sum of the percentage difference
approved or considered approved by the commission under
subsection (c) plus fifteen percent (15%), either or both of the
following may petition the commission to review and adjust, if
necessary, the rates and charges imposed on users of the works for
service to property located outside the corporate boundaries of the
municipality:
(1) The municipality.
(2) The lesser of:
(A) ten percent (10%) of all; or
(B) twenty-five (25);
users of the works whose property is located outside the
corporate boundaries of the municipality.
A petition filed under this subsection must be filed not more than
fourteen (14) days after the date on which the ordinance referred
to in this subsection is adopted. A petition may not be filed under
this subsection if a petition has already been filed under section 8.2
of this chapter appealing the same rates and charges.
(e) If a municipal legislative body, other than a municipal
legislative body described in subsection (c), adopts an ordinance
under section 8.1 of this chapter after March 31, 2012, that imposes
rates and charges on users of the works for service to property
located outside the corporate boundaries of the municipality that
exceed the rates and charges imposed on users of the works for
service to property located within the corporate boundaries of the
municipality by more than fifteen percent (15%), either or both of
the following may petition the commission to review and adjust, if
necessary, the rates and charges imposed on users of the works for
service to property located outside the corporate boundaries of the
municipality:
(1) The municipality.
(2) The lesser of:
(A) ten percent (10%) of all; or
(B) twenty-five (25);
users of the works whose property is located outside the corporate boundaries of the municipality.
A petition must be filed not more than fourteen (14) days after the date on which the ordinance is adopted. A petition may not be filed under this subsection if a petition has already been filed under section 8.2 of this chapter or under IC 36-9-23-26.1 appealing the same rates and charges.
(f) The filing of a petition with the commission under subsection (d) or (e) stays the ordinance adopted under section 8.1 of this chapter or under IC 36-9-23-26. The rates and charges in effect before the adoption of the ordinance remain in effect until:
(1) the commission approves or disapproves the petition, or the petition is dismissed under subsection (g); and
(2) if applicable, the commission adjusts the rates and charges imposed by the ordinance on users of the works whose property is located outside the corporate boundaries of the municipality.
(g) The commission shall prescribe the form and manner in which a petition must be filed under subsection (d) or (e). The burden of proof to demonstrate that the proposed rates and charges are nondiscriminatory, reasonable, and just is on the municipality, regardless of who petitions the commission. If the commission fails to approve or disapprove a petition within one hundred twenty (120) days after the petition is filed in the form and manner prescribed by the commission, the petition is dismissed, and the ordinance adopted under section 8.1 of this chapter or under IC 36-9-23-26 takes effect. A petition is automatically disapproved if the petitioner has filed a petition under section 8.2 of this chapter or under IC 36-9-23-26.1 with respect to the same rate ordinance.
(h) For purposes of determining whether the percentage difference between rates and charges imposed on users of the works for service to property located outside the corporate boundaries of the municipality and the rates and charges imposed on users of the works for service to property located within the corporate boundaries of the municipality is nondiscriminatory, reasonable, and just under section 8 of this chapter, the commission:
(1) may consider the benefit and expense to all users of the works of extending the works outside the corporate boundaries of the municipality; and
(2) may not consider any connection fees or capital surcharges imposed on users of the works for service to property that is located outside the corporate boundaries of the municipality that are specifically designated to pay for the costs associated with main extensions to the users of the works.
(i) If the commission determines that the percentage difference between the rates and charges imposed on users of the works for service to property located outside the corporate boundaries of the municipality and the rates and charges imposed on users of the works for service to property located within the corporate boundaries of the municipality is not nondiscriminatory, reasonable, and just under section 8 of this chapter, the commission may:
(1) establish nondiscriminatory, reasonable, and just rates and charges for users of the works for service to property located outside the corporate boundaries of the municipality; and
(2) order the municipal legislative body to adopt an ordinance imposing the nondiscriminatory, reasonable, and just rates and charges.
However, with respect to rates and charges imposed in an ordinance that was the subject of an objecting petition filed under section 8.2 of this chapter or under IC 36-9-23-26.1 and sustained on final judgment or appeal, as applicable, by a court, the commission may not establish rates and charges such that the percentage difference between rates and charges established by the commission is less than the percentage difference between rates and charges imposed in the ordinance.
(j) This section does not:
(1) authorize the commission to review or revise rates and charges imposed on users of the works for service to property located within the corporate boundaries of the municipality; or
(2) otherwise return or subject a utility to the jurisdiction of the commission for the approval of rates and charges.
(k) The commission may adopt rules under IC 4-22-2 to implement this section.
(l) The commission may not impose a fee with respect to proceedings under this section.
SECTION 4. IC 13-26-4-6.1, AS ADDED TO THE INDIANA CODE BY HEA 1117-2012, SEC. 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 6.1. (a) This section applies to a district that is:
(1) a countywide district; and
(2) established in response to an agreed order entered into after December 31, 1982, by the department and the executive and fiscal bodies of the county.
(b) Not later than December 31, 2012, the parties to an agreed order described in subsection (a)(2) shall amend the agreed order to provide for the appointment of trustees as follows:
(1) Beginning July 1, 2013, at least one (1) appointed trustee must reside in the geographic area that is the subject of the department investigation resulting in the agreed order.
(2) Beginning July 1, 2013, an appointed trustee may not be served by a municipal sewer system.
(3) Beginning July 1, 2013, at least one (1) appointed trustee must be an elected official who represents a political subdivision that has territory in the district.
SECTION 5. IC 36-9-23-26, AS AMENDED BY P.L.114-2008, SECTION 30, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 26. (a) After the introduction of the ordinance establishing fees under section 25 of this chapter, but before it is finally adopted, the municipal legislative body shall hold a public hearing at which users of the sewage works, owners of property served or to be served by the works, and other interested persons may be heard concerning the proposed fees. Notice of the hearing, setting forth the proposed schedule of fees, shall be:
(1) published in accordance with IC 5-3-1;
(2) mailed to owners of vacant or unimproved property if the ordinance includes a fee for sewer availability to vacant or unimproved property; and
(3) mailed to users of the sewage works for service to property located outside the municipality's corporate boundaries.
The notice may be mailed in any form so long as the notice of the hearing is conspicuous. The hearing may be adjourned from time to time. Notice mailed under subdivision (3) must include the statement required by IC 8-1.5-3-8.1(c).
(b) After the hearing, the municipal legislative body shall adopt the ordinance establishing the fees, either as originally introduced or as modified. A copy of the schedule of fees adopted shall be kept on file and available for public inspection in the offices of the board and the
municipal clerk. An ordinance adopted after March 31, 2012, that
imposes different rates and charges on users of the works for
service to property located outside the corporate boundaries of the
municipality or to property located within the corporate
boundaries of the municipality must state in plain language the
percentage difference between the rates and charges, as required
by IC 8-1.5-3-8.1(d).
(c) Subject to section 37 of this chapter, the fees established for any
class of users or property shall be extended to cover any additional
property that is subsequently served and falls within the same class,
without any hearing or notice.
(d) The municipal legislative body may change or readjust the fees
in the same manner by which they were established.
(e) Fees collected under this chapter are considered revenues of the
sewage works.
SECTION 6. IC 36-9-23-26.1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 26.1. (a) Owners
of property connected or to be connected to and served by the sewage
works authorized under this chapter may file a written petition
objecting to the rates and charges of the sewage works so long as:
(1) the petition contains the names and addresses of the
petitioners;
(2) the petitioners attended the public hearing provided under
section 26 of this chapter;
(3) the written petition is filed with the municipal legislative body
within five (5) days after the ordinance establishing the rates and
charges is adopted under section 26 of this chapter; and
(4) the written petition states specifically the ground or grounds
of objection; and
(5) the petitioners have not filed a petition with the
commission under IC 8-1.5-3-8.3 appealing the same rates and
charges of the utility.
(b) Unless the objecting petition is abandoned, the municipal clerk
shall file in the office of the clerk of the circuit or superior court of the
county a copy of the rate ordinance or ordinances together with the
petition. The court shall then set the matter for hearing at the earliest
date possible, which must be within twenty (20) days after the filing of
the petition with the court. The court shall send notice of the hearing
by certified mail to the municipality and to the first signer of the
petition at the address shown on the petition. All interested parties shall
appear in the court without further notice, and the municipality may not
conduct any further proceedings concerning the rates and charges until
the matters presented by the petition have been heard and determined
by the court.
(c) At the discretion and upon direction of the court, the petitioners
shall file with the petition a bond in the sum and with the security fixed
by the court. The bond must be conditioned on the petitioners' payment
of all or part of the costs of the hearing and any damages awarded to
the municipality if the petition is denied, as ordered by the court.
(d) Upon the date fixed in the notice, the court shall, without a jury,
hear the evidence produced. The court may confirm the decision of the
municipal legislative body or sustain the objecting petition. The order
of the court is final and conclusive upon all parties to the proceeding
and parties who might have appeared at the hearing, subject only to the
right of direct appeal. All questions that were presented or might have
been presented are considered to have been adjudicated by the order of
the court, and no collateral attack upon the decision of the municipal
legislative body or order of the court is permitted.
(e) If the court sustains the petition, or if it is sustained on appeal,
the municipal legislative body shall set the rates and charges in
accordance with the decision of the court.
SECTION 7. An emergency is declared for this act.
HEA 1126
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