Bill Text: IN SB0385 | 2013 | Regular Session | Engrossed
Bill Title: Municipal utilities.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Passed) 2013-05-13 - Public Law 251 [SB0385 Detail]
Download: Indiana-2013-SB0385-Engrossed.html
Citations Affected: IC 8-1; IC 8-1.5; IC 36-9.
Effective: Upon passage; January 1, 2013 (retroactive).
(HOUSE SPONSORS _ WOLKINS, LEHE)
January 10, 2013, read first time and referred to Committee on Environmental Affairs.
February 11, 2013, amended, reported favorably _ Do Pass; reassigned to Committee on
Appropriations.
February 21, 2013, reported favorably _ Do Pass.
February 25, 2013, read second time, ordered engrossed. Engrossed.
February 26, 2013, read third time, passed. Yeas 48, nays 2.
March 4, 2013, read first time and referred to Committee on Environmental Affairs.
April 4, 2013, amended, reported _ Do Pass.
April 9, 2013, read second time, amended, ordered engrossed.
Digest Continued
public utility fund certain expense reimbursements paid by municipal utilities for investigations conducted by the IURC. (Under current law, the amounts paid are deposited in the state treasury.) Provides that a contract for the construction of a municipal sewage works may not require certain landowners to waive the right to remonstrate against annexation by the municipality. For purposes of the statute that allows extraterritorial customers of certain municipally owned water or wastewater utilities to petition the IURC for a review of rates and charges, specifies that "rates and charges" are those charges made by a municipality for a service rendered or to be rendered by the municipality's utility, regardless of whether the rates and charges: (1) are: (A) imposed through a compact fee or any similar arrangement; or (B) referred to as a compact fee or by any other term; or (2) are based, in whole or in part, on the assessed value of the property served by the utility. For purposes of the same statute, provides that with respect to a petition to the IURC for a review of rates and charges established in an ordinance adopted after March 31, 2012, a petition must be filed not more than 45 days (instead of 14 days under current law) after the date on which the ordinance is adopted. Makes conforming amendments.
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
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
A BILL FOR AN ACT to amend the Indiana Code concerning local
government.
(b) As used in this section, "wholesale sewage service" means the collection, treatment, purification, and disposal in a sanitary manner of liquid and solid waste, sewage, night soil, and industrial waste provided by a utility to another utility.
(c) A utility that:
(1) either provides or receives wholesale sewage service; and
(2) negotiates to renew or enter into a new contract for wholesale sewage service on expiration of a contract for the same wholesale sewage service;
may file a petition for review of rates and charges for wholesale
sewage service with the commission or the circuit or superior court
with jurisdiction in the county where the utility has its principal
office.
(d) If a utility files a petition under subsection (c), the following
apply:
(1) The utility that provides the wholesale sewage service has
the burden of proving that the rates and charges are just and
reasonable.
(2) A petition concerning the same rates and charges may not
be filed with both the commission and a court.
(3) If multiple petitions concerning the same rates and charges
are filed, all petitions filed after the first petition filed must
be:
(A) consolidated with the first petition filed; and
(B) heard in the forum in which the first petition was filed.
(4) The petition is not subject to IC 36-9-23 or IC 36-9-25.
(5) If the petition is heard by a court, the court shall hear the
petition de novo.
(e) After notice and hearing, the commission may issue an order
determining whether the rates and charges that are the subject of
a petition filed with the commission under subsection (c) are just
and reasonable. The order of the commission is a final order for
purposes of IC 8-1-3.
(f) This section does not:
(1) authorize the commission to revise rates and charges of a
utility for any other purpose other than as stated in this
section; or
(2) otherwise return or subject a utility to the jurisdiction of
the commission.
(g) The commission may adopt rules under IC 4-22-2 to
implement this section.
(h) If a utility provides wholesale sewage service, the utility may
not:
(1) intervene; or
(2) use utility funds or assets;
in a proceeding before the department of environmental
management that may potentially terminate the need of another
utility to remain connected to the provider of wholesale services.
upon the petition of any such municipal utility, or upon the initiation of
the commission, the commission shall ascertain and declare the
expenses incurred by it upon such investigation, and the municipal
utility affected thereby shall pay into the treasury of the state
commission public utility fund account described in IC 8-1-6-2 the
amount of the expenses, so ascertained and declared, within a time to
be fixed in the order, not exceeding twenty (20) days from the date
thereof. The commission shall cause a certified copy of all such orders
to be delivered to an officer or agent of the municipal utility affected
thereby, and all such orders shall, of their own force, take effect and
become operative twenty (20) days after service thereof unless a
different time be provided in said order. Any order of the commission
as may increase any rate of such municipal utility shall not take effect
until such expenses are paid into the state treasury. commission public
utility fund account described in IC 8-1-6-2.
SECTION 3. IC 8-1.5-3-8.3, AS ADDED BY P.L.139-2012,
SECTION 3, IS AMENDED 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) forty-five (45)
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.
(m) Subject to subsection (h)(2), for purposes of this section,
"rates and charges" are those charges made by a municipality for
a service rendered or to be rendered by the municipality's utility,
either directly or in connection with that service, as described in
section 8(b) of this chapter, regardless of whether the rates and
charges:
(1) are:
(A) imposed through a compact fee or any similar
arrangement; or
(B) referred to as a compact fee or by any other term;
by the municipality or the utility; or
(2) are based, in whole or in part, on the assessed value of the
property served by the utility.
(b) The works board of a municipality may contract with owners of real property for the construction of sewage works within the municipality or within four (4) miles outside its corporate boundaries in order to provide service for the area in which the real property of the owners is located. The contract must provide, for a period of not to exceed fifteen (15) years, for the payment to the owners and their assigns by any owner of real property who:
(1) did not contribute to the original cost of the sewage works; and
(2) subsequently taps into, uses, or deposits sewage or storm waters in the sewage works or any lateral sewers connected to them;
of a fair pro rata share of the cost of the construction of the sewage works, subject to the rules of the board and notwithstanding any other law relating to the functions of local governmental entities. However, the contract does not apply to any owner of real property who is not a party to it unless it has been recorded in the office of the recorder of the county in which the real property of the owner is located before the owner taps into or connects to the sewers and facilities. The board may provide that the fair pro rata share of the cost of construction includes interest at a rate not exceeding the amount of interest allowed on judgments, and the interest shall be computed from the date the sewage
works are approved until the date payment is made to the municipality.
(c) The contract must include, as part of the consideration running
to the municipality, the release of the right of the parties to the contract
and their successors in title to remonstrate against pending or future
annexations by the municipality of the area served by the sewage
works. Any person tapping into or connecting to the sewage works
contracted for is considered to waive his the person's rights to
remonstrate against the annexation of the area served by the sewage
works.
(d) Subsection (c) does not apply to a landowner if all of the
following conditions apply:
(1) The landowner is required to connect to the sewage works
because a person other than the landowner has polluted or
contaminated the area.
(2) The costs of extension of or connection to the sewage works
are paid by a person other than the landowner or the municipality.
(e) Subsection (c) does not apply to a landowner who taps into,
connects to, or is required to tap into or connect to the sewage
works of a municipality only because the municipality provides
wholesale sewage service (as defined in IC 8-1-2-61.7) to another
municipality that provides sewage service to the landowner.
