Bill Text: IN SB0204 | 2013 | Regular Session | Engrossed
Bill Title: Sewer connections.
Spectrum: Partisan Bill (Republican 3-0)
Status: (Passed) 2013-05-13 - Public Law 178 [SB0204 Detail]
Download: Indiana-2013-SB0204-Engrossed.html
Citations Affected: IC 8-1; IC 13-26.
Synopsis: Sewer connections. Provides that a not-for-profit public
sewer utility or a regional sewage district may require connection to its
sewage disposal system if there is an available sanitary sewer line
within 300 feet of: (1) the property line, if the property line is located
in a consolidated city or adjacent to a body of water; (2) any part of a
subdivision, or land that is divided or proposed to be divided into lots,
whether contiguous or subject to zoning requirements, for the purpose
of sale or lease as part of a larger common plan of development or sale;
or (3) for all other properties, the source of the sewage discharge.
(Current law requires connection if there is an available line within 300
feet of the property line.)
Effective: July 1, 2013.
(HOUSE SPONSOR _ WOLKINS)
January 7, 2013, read first time and referred to Committee on Environmental Affairs.
January 29, 2013, amended, reported favorably _ Do Pass.
January 31, 2013, read second time, ordered engrossed. Engrossed.
February 4, 2013, read third time, passed. Yeas 40, nays 9.
February 26, 2013, read first time and referred to Committee on Environmental Affairs.
April 1, 2013, amended, reported _ Do Pass.
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A BILL FOR AN ACT to amend the Indiana Code concerning
environmental law.
(1) does not have shareholders;
(2) does not engage in any activities for the profit of its trustees, directors, incorporators, or members; and
(3) is organized and conducts its affairs for purposes other than the pecuniary gain of its trustees, directors, incorporators, or members.
The term does not include a regional district established under IC 13-26, a conservancy district established under IC 14-33, or, for purposes of subsections (f), (g), (h), (i), (j), and (k), a utility company owned, operated, or held in trust by a consolidated city.
(b) As used in this section, "sewage disposal system" means a privy, cesspool, septic tank, or other similar structure. The term includes a septic tank soil absorption system (as defined in IC 13-11-2-199.5).
The term does not include a sewer system operated by a not-for-profit
public sewer utility.
(c) A not-for-profit utility shall be required to furnish reasonably
adequate services and facilities. The charge made by any not-for-profit
utility for any service rendered or to be rendered, either directly or in
connection with the service, must be nondiscriminatory, reasonable,
and just. Each discriminatory, unjust, or unreasonable charge for the
service is prohibited and unlawful.
(d) A reasonable and just charge for water or sewer service within
the meaning of this section is a charge that will produce sufficient
revenue to pay all legal and other necessary expense incident to the
operation of the not-for-profit utility's system, including the following:
(1) Maintenance and repair costs.
(2) Operating charges.
(3) Interest charges on bonds or other obligations.
(4) Provision for a sinking fund for the liquidation of bonds or
other evidences of indebtedness.
(5) Provision for a debt service reserve for bonds or other
obligations in an amount not to exceed the maximum annual debt
service on the bonds or obligations.
(6) Provision of adequate funds to be used as working capital.
(7) Provision for making extensions and replacements.
(8) The payment of any taxes that may be assessed against the
not-for-profit utility or its property.
The charges must produce an income sufficient to maintain the
not-for-profit utility's property in sound physical and financial
condition to render adequate and efficient service. A rate too low to
meet these requirements is unlawful.
(e) Except as provided in subsections (f) and (h), a not-for-profit
public sewer utility may require connection to its sewer system of
property producing sewage or similar waste and require the
discontinuance of use of a sewage disposal system if:
(1) there is an available sanitary sewer within three hundred (300)
feet of:
(A) the property line, if the property is:
(i) located in a consolidated city;
(ii) adjacent to a body of water, including a lake, river,
or reservoir; or
(iii) any part of a subdivision, or land that is divided or
proposed to be divided into lots, whether contiguous or
subject to zoning requirements, for the purpose of sale or
lease as part of a larger common plan of development or
sale; or
(B) for all other properties, the improvement or other
structure from which the sewage or similar waste is
discharged; and
(2) the utility has given written notice by certified mail to the
property owner at the address of the property at least ninety (90)
days before the date for connection stated in the notice.
The notice given under subdivision (2) must also inform the property
owner, other than an owner of property located in a consolidated city,
that the property owner may qualify for an exemption as set forth in
subsection (f).
(f) Subject to subsection (h), a property owner is exempt from the
requirement to connect to a not-for-profit public sewer utility's sewer
system and to discontinue use of a sewage disposal system if the
following conditions are met:
(1) The property owner's sewage disposal system is a septic tank
soil absorption system that was new at the time of installation and
approved in writing by the local health department.
(2) The property owner, at the property owner's expense, obtains
and provides to the not-for-profit public sewer utility a
certification from the local health department or the department's
designee that the sewage disposal system is functioning
satisfactorily. If the local health department or the department's
designee denies the issuance of a certificate to the property owner,
the property owner may appeal the denial to the board of the local
health department. The decision of the board is final and binding.
(3) The property owner provides the not-for-profit public sewer
utility with:
(A) the written notification of potential qualification for the
exemption described in subsection (i); and
(B) the certification described in subdivision (2);
within the time limits set forth in subsection (i).
(g) If a property owner, within the time allowed under subsection
(i), notifies a not-for-profit public sewer utility in writing that the
property owner qualifies for the exemption under this section, the
not-for-profit public sewer utility shall, until the property owner's
eligibility for an exemption under this section is determined, suspend
the requirement that the property owner discontinue use of a sewage
disposal system and connect to the not-for-profit public sewer utility's
sewer system.
(h) A property owner who qualifies for the exemption provided
under this section may not be required to connect to the not-for-profit
public sewer utility's sewer system for a period of ten (10) years
beginning on the date the new sewage disposal system was installed.
A property owner may apply for two (2) five (5) year extensions of the
exemption provided under this section by following the procedures set
forth in subsections (f) and (g). If ownership of an exempt property is
transferred during a valid exemption period, including during an
extension of an initial exemption:
(1) the exemption applies to the subsequent owner of the property
for the remainder of the exemption period during which the
transfer occurred; and
(2) the subsequent owner may apply for any remaining
extensions.
However, the total period during which a property may be exempt from
the requirement to connect to a district's sewer system under this
section may not exceed twenty (20) years, regardless of ownership of
the property.
(i) To qualify for an exemption under this section, a property owner
must:
(1) within sixty (60) days after the date of the written notice given
to the property owner under subsection (e), notify the
not-for-profit public sewer utility in writing that the property
owner qualifies for the exemption under this section; and
(2) within sixty (60) days after the not-for-profit public sewer
utility receives the written notice provided under subdivision (1),
provide the not-for-profit public sewer utility with the
certification required under subsection (f)(2).
(j) When a property owner who qualifies for an exemption under
this section subsequently discontinues use of the property owner's
sewage disposal system and connects to the not-for-profit public sewer
utility's sewer system, the property owner may be required to pay only
the following to connect to the sewer system:
(1) The connection fee the property owner would have paid if the
property owner connected to the sewer system on the first date the
property owner could have connected to the sewer system.
(2) Any additional costs:
(A) considered necessary by; and
(B) supported by documentary evidence provided by;
the not-for-profit public sewer utility.
(k) A not-for-profit public sewer utility may not require a property
owner to connect to the not-for-profit public sewer utility's sewer
system if:
(1) the property is located on at least ten (10) acres;
(2) the owner can demonstrate the availability of at least two (2) areas on the property for the collection and treatment of sewage that will protect human health and the environment;
(3) the waste stream from the property is limited to domestic sewage from a residence or business;
(4) the system used to collect and treat the domestic sewage has a maximum design flow of seven hundred fifty (750) gallons per day; and
(5) the owner, at the owner's expense, obtains and provides to the district a certification from the local health department or the department's designee that the system is functioning satisfactorily.
(l) A property owner who connects to a not-for-profit public sewer utility's sewer system may provide, at the owner's expense, labor, equipment, materials, or any combination of labor, equipment, and materials from any source to accomplish the connection to the sewer system, subject to inspection and approval by the not-for-profit public sewer utility.
(m) This section does not affect the authority of the state department of health, a local health department, or a county health officer with respect to a sewage disposal system.
(1) Sue or be sued.
(2) Make contracts in the exercise of the rights, powers, and duties conferred upon the district.
(3) Adopt and alter a seal and use the seal by causing the seal to be impressed, affixed, reproduced, or otherwise used. However, the failure to affix a seal does not affect the validity of an instrument.
(4) Adopt, amend, and repeal the following:
(A) Bylaws for the administration of the district's affairs.
(B) Rules and regulations for the following:
(i) The control of the administration and operation of the district's service and facilities.
(ii) The exercise of all of the district's rights of ownership.
(5) Construct, acquire, lease, operate, or manage works and obtain rights, easements, licenses, money, contracts, accounts, liens, books, records, maps, or other property, whether real, personal, or mixed, of a person or an eligible entity.
(6) Assume in whole or in part any liability or obligation of:
(A) a person;
(B) a nonprofit water, sewage, or solid waste project system; or
(C) an eligible entity;
including a pledge of part or all of the net revenues of a works to the debt service on outstanding bonds of an entity in whole or in part in the district and including a right on the part of the district to indemnify and protect a contracting party from loss or liability by reason of the failure of the district to perform an agreement assumed by the district or to act or discharge an obligation.
(7) Fix, alter, charge, and collect reasonable rates and other charges in the area served by the district's facilities to every person whose premises are, whether directly or indirectly, supplied with water or provided with sewage or solid waste services by the facilities for the purpose of providing for the following:
(A) The payment of the expenses of the district.
(B) The construction, acquisition, improvement, extension, repair, maintenance, and operation of the district's facilities and properties.
(C) The payment of principal or interest on the district's obligations.
(D) To fulfill the terms of agreements made with:
(i) the purchasers or holders of any obligations; or
(ii) a person or an eligible entity.
(8) Except as provided in sections 2.5 and 2.6 of this chapter, require connection to the district's sewer system of property producing sewage or similar waste, and require the discontinuance of use of privies, cesspools, septic tanks, and similar structures if:
(A) there is an available sanitary sewer within three hundred (300) feet of:
(i) the property line, if the property is adjacent to a body of water, including a lake, river, or reservoir;
(ii) any part of a subdivision, or land that is divided or proposed to be divided into lots, whether contiguous or subject to zoning requirements, for the purpose of sale or lease as part of a larger common plan of development or sale; or
(iii) for all other properties, the improvement or other structure from which the sewage or similar waste is discharged;
(B) the district has given written notice by certified mail to the
property owner at the address of the property at least ninety
(90) days before a date for connection to be stated in the
notice; and
(C) if the property is located outside the district's territory:
(i) the district has obtained and provided to the property
owner (along with the notice required by clause (B)) a letter
of recommendation from the local health department that
there is a possible threat to the public's health; and
(ii) if the property is also located within the extraterritorial
jurisdiction of a municipal sewage works under IC 36-9-23
or a public sanitation department under IC 36-9-25, the
municipal works board or department of public sanitation
has acknowledged in writing that the property is within the
municipal sewage works or department of public sanitation's
extraterritorial jurisdiction, but the municipal works board
or department of public sanitation is unable to provide sewer
service.
However, a district may not require the owner of a property
described in this subdivision to connect to the district's sewer
system if the property is already connected to a sewer system that
has received an NPDES permit and has been determined to be
functioning satisfactorily.
(9) Provide by ordinance for a reasonable penalty, not to exceed
one hundred dollars ($100) per day, for failure to connect and also
apply to the circuit or superior court of the county in which the
property is located for an order to force connection, with the cost
of the action, including reasonable attorney's fees of the district,
to be assessed by the court against the property owner in the
action.
(10) Refuse the services of the district's facilities if the rates or
other charges are not paid by the user.
(11) Control and supervise all property, works, easements,
licenses, money, contracts, accounts, liens, books, records, maps,
or other property rights and interests conveyed, delivered,
transferred, or assigned to the district.
(12) Construct, acquire by purchase or otherwise, operate, lease,
preserve, and maintain works considered necessary to accomplish
the purposes of the district's establishment within or outside the
district and enter into contracts for the operation of works owned,
leased, or held by another entity, whether public or private.
(13) Hold, encumber, control, acquire by donation, purchase, or
condemnation, construct, own, lease as lessee or lessor, use, and
sell interests in real and personal property or franchises within or
outside the district for:
(A) the location or protection of works;
(B) the relocation of buildings, structures, and improvements
situated on land required by the district or for any other
necessary purpose; or
(C) obtaining or storing material to be used in constructing and
maintaining the works.
(14) Upon consent of two-thirds (2/3) of the members of the
board, merge or combine with another district into a single district
on terms so that the surviving district:
(A) is possessed of all rights, franchises, and authority of the
constituent districts; and
(B) is subject to all the liabilities, obligations, and duties of
each of the constituent districts, with all rights of creditors of
the constituent districts being preserved unimpaired.
(15) Provide by agreement with another eligible entity for the
joint construction of works the district is authorized to construct
if the construction is for the district's own benefit and that of the
other entity. For this purpose the cooperating entities may jointly
appropriate land either within or outside their respective borders
if all subsequent proceedings, actions, powers, liabilities, rights,
and duties are those set forth by statute.
(16) Enter into contracts with a person, an eligible entity, the
state, or the United States to provide services to the contracting
party for any of the following:
(A) The distribution or purification of water.
(B) The collection or treatment of sanitary sewage.
(C) The collection, disposal, or recovery of solid waste.
(17) Make provision for, contract for, or sell the district's
byproducts or waste.
(18) Exercise the power of eminent domain, including for
purposes of siting sewer or water utility infrastructure, but only
after the district attempts to use existing public rights-of-way or
easements.
(19) Remove or change the location of a fence, building, railroad,
canal, or other structure or improvement located within or outside
the district. If:
(A) it is not feasible or economical to move the building,
structure, or improvement situated in or upon land acquired;
and
(B) the cost is determined by the board to be less than that of
purchase or condemnation;
the district may acquire land and construct, acquire, or install
buildings, structures, or improvements similar in purpose to be
exchanged for the buildings, structures, or improvements under
contracts entered into between the owner and the district.
(20) Employ consulting engineers, superintendents, managers,
and other engineering, construction, and accounting experts,
attorneys, bond counsel, employees, and agents that are necessary
for the accomplishment of the district's purpose and fix their
compensation.
(21) Procure insurance against loss to the district by reason of
damages to the district's properties, works, or improvements
resulting from fire, theft, accident, or other casualty or because of
the liability of the district for damages to persons or property
occurring in the operations of the district's works and
improvements or the conduct of the district's activities.
(22) Exercise the powers of the district without obtaining the
consent of other eligible entities. However, the district shall:
(A) restore or repair all public or private property damaged in
carrying out the powers of the district and place the property
in the property's original condition as nearly as practicable; or
(B) pay adequate compensation for the property.
(23) Dispose of, by public or private sale or lease, real or personal
property determined by the board to be no longer necessary or
needed for the operation or purposes of the district.
