Introduced Version
SENATE BILL No. 235
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 13-26.
Synopsis: Regional water, sewage, or solid waste districts. Allows the
board of trustees of a regional water, sewage, or solid waste district to
adopt an ordinance to authorize the district to do one or both of the
following through an electronic funds transfer method of payment: (1)
Pay claims owed by the district. (2) Receive payments owed to the
district. Provides that a district authority (authority) established to hear
evidence and make certain determinations concerning certain rate
increases by a regional sewage district: (1) must consist of an odd
number of members; (2) must consist of at least three members; and (3)
may not include as a member any trustee of the district. Amends
provisions concerning the membership of an authority in: (1) a district
located in one county; and (2) a district located in more than one
county; to conform to these requirements. Provides that a district with
an existing authority whose membership does not comply with these
requirements shall, not later than September 1, 2011, file with the
department of environmental management (department) a petition that
proposes for the authority a new membership that complies with these
requirements. Requires the department to issue an order approving or
disapproving each petition not later than December 31, 2011.
Conforms the standards that apply to an authority's determination in a
case involving a rate increase to those that apply to a court's
determination in an appeal in such a case, by requiring the authority to
determine whether the district's board, in adopting the ordinance
increasing the rates, followed the procedures required by the statute
governing rates and charges in regional districts. Provides that if an
authority makes any ruling other than to: (1) sustain the ordinance
(Continued next page)
Effective: Upon passage; July 1, 2011.
Kruse
January 6, 2011, read first time and referred to Committee on Energy and Environmental
Affairs.
Digest Continued
establishing the rates; or (2) sustain the petition objecting to the rates;
the ruling must comply with the statute defining just and equitable rates
for a district. Amends a provision that provides that liens against
property served by a district are established and enforced in the same
manner as provided in the statute governing municipal sewage works,
in order to cross reference additional applicable provisions in the
statute governing municipal sewage works.
Introduced
First Regular Session 117th General Assembly (2011)
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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Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in
this style type. Also, the
word
NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in
this style type or
this style type reconciles conflicts
between statutes enacted by the 2010 Regular Session of the General Assembly.
SENATE BILL No. 235
A BILL FOR AN ACT to amend the Indiana Code concerning
environmental law.
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 13-26-5-9; (11)IN0235.1.1. -->
SECTION 1. IC 13-26-5-9, AS ADDED BY P.L.78-2009,
SECTION 20, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2011]: Sec. 9. (a) As used in this section, "electronic funds
transfer" means a transfer of funds, other than a transaction
originated by check, draft, or similar paper instrument, that is
initiated through an electronic terminal, a telephone, a computer,
magnetic tape, or other electronic means to order, instruct, or
authorize a financial institution to debit or credit an account.
(a) (b) A board may adopt an ordinance allowing money to be
disbursed for lawful district purposes under this section.
(c) As part of an ordinance adopted under subsection (b), or by
a separate ordinance adopted by the board, the board may
authorize the district to do one (1) or both of the following through
an electronic funds transfer method of payment:
(1) Pay claims owed by the district.
(2) Receive payments owed to the district.
If the board adopts an ordinance to grant the district the authority
described in subdivision (1), the district may pay money from its
funds by electronic funds transfer. However, the authority granted
to a district by this subsection does not affect the rights, liabilities,
or responsibilities of participants in an electronic fund transfer
under the federal Electronic Fund Transfer Act (15 U.S.C. 1693 et
seq.), and a regional district that pays a claim by electronic funds
transfer shall comply with all other requirements for the payment
of claims by the regional district.
(b) (d) Notwithstanding IC 5-11-10, with the prior written approval
of the board, the fiscal officer of the district may make claim payments
in advance of board allowance for the following kinds of expenses if
the board has adopted an ordinance under subsection (a): (b):
(1) Property or services purchased or leased from the United
States government, its agencies, or its political subdivisions.
(2) License or permit fees.
(3) Insurance premiums.
(4) Utility payments or utility connection charges.
(5) General grant programs for which advance funding is not
prohibited and the contracting party posts sufficient security to
cover the amount advanced.
(6) Grants of state funds authorized by statute.
(7) Maintenance or service agreements.
(8) Leases or rental agreements.
(9) Bond or coupon payments.
(10) Payroll.
(11) State or federal taxes.
(12) Expenses that must be paid because of emergency
circumstances.
(13) Expenses described in an ordinance.
(c) (e) Each payment of expenses under this section must be
supported by a fully itemized invoice or bill and certification by the
fiscal officer of the district.
(d) (f) The board shall review and allow the a claim paid under
subsection (d) at its the board's next regular or special meeting
following the preapproved payment of the expense.
SOURCE: IC 13-26-11-15; (11)IN0235.1.2. -->
SECTION 2. IC 13-26-11-15, AS AMENDED BY P.L.221-2007,
SECTION 21, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 15. (a) A district authority is established in
each regional sewage district established under this article.
A district
authority:
(1) must consist of an odd number of members;
(2) must consist of at least three (3) members; and
(3) may not include as a member any person who serves on
the board of trustees of the district.
(b) The district authority of a regional sewage district consists of the
following
members:
(1) In the case of a regional sewage district located in one (1)
county,
the following members:
(A)
except as provided in clause (B), If no members of the
county executive are trustees of the regional sewage
district, the county executive of
that the county.
or
(B) If:
the
(i) one (1) or more members of the county executive are
trustees of the regional sewage district;
and
(ii) no members of the county fiscal body are trustees of
the regional sewage district;
the members of the county fiscal body.
(C) If the regional sewage district's board of trustees
consists of one (1) or more members of the county
executive and one (1) or more members of the county fiscal
body, three (3) members appointed as follows:
(i) Two (2) members appointed by the county executive.
If not all of the members of the county executive are
trustees of the district, the county executive may appoint
either or both of the two (2) members required by this
item from among the county executive's own
membership, subject to subsection (a)(3).
(ii) One (1) member appointed by the county fiscal body.
If not all of the members of the county fiscal body are
trustees of the district, the county fiscal body may
appoint the member required by this item from among
the county fiscal body's own membership, subject to
subsection (a)(3).
(2) In the case of a regional sewage district located in more than
one (1) county,
the following members:
(A) If:
(i) an odd number of counties are part of the regional
sewage district; and
(ii) each county in the district has at least one (1) county
executive member who is not a trustee of the regional
sewage district;
one (1) county executive member, appointed by that member's
county executive, from each county in which the district is
located, However, a person who serves on the board of trustees
of a district may not be a member of the district authority.
subject to subsection (a)(3).
(B) If an even number of counties are part of the regional
sewage district, the following members:
(i) Two (2) county executive members, appointed by
those members' county executive, from the county that
has the largest number of customers served by the
district's sewer system. However, if the county that has
the largest number of customers served by the district's
sewer system does not have at least two (2) members of
its executive who are not also trustees of the district, the
county executive of that county may appoint one (1) or
more of the members required by this item from outside
the county executive's own membership in order to
comply with subsection (a)(3).
(ii) One (1) county executive member, appointed by that
member's county executive, from each county, other
than the county described in item (i), in which the
district is located. However, if a county described in this
item does not have at least one (1) member of its
executive who is not also a trustee of the district, the
county executive of that county may appoint the member
required by this item from outside the county executive's
own membership in order to comply with subsection
(a)(3).
(C) If an odd number of counties are part of the regional
sewage district and an odd number of those counties in the
district do not have at least one (1) county executive
member who is not also a trustee of the district, the
following members:
(i) One (1) county executive member, appointed by that
member's county executive, from each county that has at
least one (1) county executive member who is not also a
trustee of the district, subject to subsection (a)(3).
(ii) One (1) member appointed by the county executive of
each county that does not have at least one (1) county
executive member who is not also a trustee of the
district. A member appointed under this item must be
appointed from outside the appointing county executive's
own membership, subject to subsection (a)(3).
(c) If a district adopts an ordinance increasing sewer rates and
charges at a rate that is greater than five percent (5%) per year, as
calculated from the rates and charges in effect from the date of the
district's last rate increase,
before January 1, 2001, the district shall
mail, either separately or along with a periodic billing statement, a
notice of the new rates and charges to each user of the sewer system
who is affected by the increase. The notice:
(1) shall be mailed not later than seven (7) days after the district
adopts the ordinance increasing the rates and charges; and
(2) must include a statement of a freeholder's rights under this
section.
(d) If subsection (c) applies, fifty (50) freeholders of the district or
ten percent (10%) of the district's freeholders, whichever is fewer, may
file a written petition objecting to the rates and charges of the district.
A petition filed under this subsection must:
(1) contain the name and address of each petitioner;
(2) be filed with a member of the district authority, in the county
where at least one (1) petitioner resides, not later than thirty (30)
days after the district adopts the ordinance establishing the rates
and charges; and
(3) set forth the grounds for the freeholders' objection.
If a petition meeting the requirements of this subsection is filed, the
district authority shall investigate and conduct a public hearing on the
petition. If more than one (1) petition concerning a particular increase
in rates and charges is filed, the district authority shall consider the
objections set forth in all the petitions at the same public hearing.
(e) The district authority shall set the matter for public hearing not
less than ten (10) business days but not later than twenty (20) business
days after the petition has been filed. The district authority shall send
notice of the hearing by certified mail to the district and the
first listed
petitioner and publish the notice of the hearing in a newspaper of
general circulation in each county in the district.
(f) Upon the date fixed in the notice, the district authority shall hear
the evidence produced and determine
the following:
(1) Whether the board of trustees of the district, in adopting
the ordinance increasing sewer rates and charges, followed
the procedure required by this chapter.
(2) Whether the increased sewer rates and charges established by
the board by ordinance are just and equitable rates and charges,
according to the standards set forth in section 9 of this chapter.
(g) After the district authority hears the evidence produced and
makes the determinations set forth in subsection (f), the district
authority, by a majority vote, shall:
(1) sustain the ordinance establishing the rates and charges;
(2) sustain the petition; or
(3) make any other ruling appropriate in the matter, subject to the
standards set forth in section 9 of this chapter.
(g) (h) The order of the district authority may be appealed by the
district or a petitioner to the circuit court of the county in which the
district is located. The court shall try the appeal without a jury and shall
determine one (1) or both of the following:
(1) Whether the board of trustees of the district, in adopting the
ordinance increasing sewer rates and charges, followed the
procedure required by this chapter.
(2) Whether the increased sewer rates and charges established by
the board by ordinance are just and equitable rates and charges,
according to the standards set forth in section 9 of this chapter.
Either party may appeal the circuit court's decision in the same manner
that other civil cases may be appealed.
SOURCE: IC 13-26-14-4; (11)IN0235.1.3. -->
SECTION 3. IC 13-26-14-4, AS ADDED BY P.L.131-2005,
SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2011]: Sec. 4. Rates, fees, or charges made, assessed, or
established by the district are a lien, in the same manner established
under IC 36-9-23 for municipal sewage works, on a lot, parcel of
land, or building that is connected with or uses the works of the district.
in the manner established under IC 36-9-23. The Liens under this
chapter:
(1) attach;
(2) are recorded;
(3) are subject to the same penalties, interest, and reasonable
attorney's fees on recovery; and
(4) shall be collected, and enforced, and, if necessary,
foreclosed;
in substantially the same manner as provided in IC 36-9-23-31 through
IC 36-9-23-32. IC 36-9-23-34.
SOURCE: ; (11)IN0235.1.4. -->
SECTION 4. [EFFECTIVE UPON PASSAGE]
(a) As used in this
SECTION, "authority" refers to a district authority established in
a regional sewage district under IC 13-26-11-15 before the
amendment of IC 13-26-11-15 by this act.
(b) As used in this SECTION, "department" refers to the
department of environmental management established by
IC 13-13-1-1.
(c) As used in this SECTION, "district" refers to a regional
sewage district established under:
(1) IC 13-26;
(2) IC 13-3-2 (before its repeal on July 1, 1996); or
(3) IC 19-3-1.1 (before its repeal on April 1, 1980).
(d) A district with an authority whose membership does not
comply with IC 13-26-11-15, as amended by this act, as of the
effective date of the amendments to IC 13-26-11-15 made by this
act, shall, not later than September 1, 2011, and in the manner
prescribed by IC 13-26-1-2, file with the department a petition that
does the following:
(1) Identifies any existing members of the authority that the
district proposes to replace or remove from the authority to
comply with 13-26-11-15, as amended by this act.
(2) Identifies any new members that the appropriate body, as
determined under 13-26-11-15, as amended by this act,
proposes to appoint to the authority to comply with
IC 13-26-11-15, as amended by this act.
(3) For each new member identified under subdivision (2) who
is not a member of a county executive or a county fiscal body,
sets forth the member's proposed term on the authority,
which term may not exceed four (4) years.
(e) If the department determines that the proposed membership
of a district's authority, as set forth in the petition filed by the
district under subsection (d), complies with IC 13-26-11-15, as
amended by this act, the department shall issue an order approving
the proposed membership.
(f) If the department determines that the proposed membership
of a district's authority, as set forth in the petition filed by the
district under subsection (d), does not comply with IC 13-26-11-15,
as amended by this act, the department shall issue an order that
does the following:
(1) Notifies the district of the department's determination that
the proposed membership of the district's authority does not
comply with IC 13-26-11-15, as amended by this act.
(2) Specifies each aspect in which the proposed membership
fails to comply with IC 13-26-11-15, as amended by this act,
including an identification of each proposed member who
does not qualify to serve on the authority under
IC 13-26-11-15, as amended by this act.
(3) Sets forth a date, which must be at least thirty (30) days
after the date of the order, by which the district must submit
to the department an amended petition that resolves each
failure to comply identified in the department's order under
subdivision (2).
(g) The department shall as soon as practicable, but in no case
later than December 31, 2011, issue an order under subsection (e)
or (f) with respect to each petition received by the department
under subsection (d). If a district is required to file a petition with
the department under subsection (d):
(1) the members of the authority as it exists on the date of the
petition filed under subsection (d);
(2) the proposed members of the authority, as set forth in the
petition filed under subsection (d);
(3) the board of trustees of the district;
(4) the fiscal and executive bodies of each eligible entity (as
defined in IC 13-11-2-62) with territory in the district; and
(5) the state and any of its agencies owning, controlling, or
leasing land (excluding highways and public thoroughfares
owned or controlled by the Indiana department of
transportation) in the district;
shall cooperate with the department in providing any information,
or any books, records, or other documents, that the department
may require to issue an order under subsection (e) or (f).
(h) An order of the department under subsection (e) or (f) may
be appealed by:
(1) the district;
(2) an eligible entity (as defined in IC 13-11-2-62) with
territory in the district;
(3) any member of the authority as it exists on the date of the
petition filed under subsection (d);
(4) any proposed member of the authority, as set forth in the
petition filed under subsection (d); or
(5) any freeholder in the district;
to the circuit court of any county with territory in the district in
the same manner that civil cases may be appealed.
(i) This SECTION expires July 1, 2012.
SOURCE: ; (11)IN0235.1.5. -->
SECTION 5.
An emergency is declared for this act.