HB 1824-1_ Filed 04/02/2001, 16:37

COMMITTEE REPORT

MR. PRESIDENT:

    The Senate Committee on Environmental Affairs, to which was referred House Bill No. 1824, has had the same under consideration and begs leave to report the same back to the Senate with the recommendation that said bill be AMENDED as follows:

SOURCE: Page 1, line 1; (01)CR182401.1. -->     Page 1, between the enacting clause and line 1, begin a new paragraph and insert:
SOURCE: IC 13-11-2-40; (01)CR182401.1. -->     "SECTION 1. IC 13-11-2-40 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]: Sec. 40. "Confined feeding operation", for purposes of IC 13-18-10 , IC 13-18-13 , and IC 13-18-21 means:
        (1) any confined feeding of:
            (A) at least three hundred (300) cattle;
            (B) at least six hundred (600) swine or sheep; and
            (C) at least thirty thousand (30,000) fowl;
        (2) any animal feeding operation electing to be subject to IC 13-18-10 ; or
        (3) any animal feeding operation that is causing a violation of:
            (A) water pollution control laws;
            (B) any rules of the water pollution control board; or
            (C) IC 13-18-10.
A determination by the department under this subdivision is appealable under IC 4-21.5.".
SOURCE: Page 2, line 22; (01)CR182401.2. -->     Page 2, line 22, after "(2)" insert " a private entity,".


    Page 2, line 22, delete ", a" and insert " related to:
            (A) a confined feeding operation;
            (B) farm field runoff; or
            (C) a failing sewage disposal system.
".
    Page 2, delete line 23.
    Page 2, line 26, strike "or".
    Page 2, line 27, delete "." and insert "; or".
    Page 2, between lines 27 and 28, begin a new line block indented and insert:
        " (3) a private entity, for a nonpoint source pollution reduction project related to:
            (A) a confined feeding operation;
            (B) farm field runoff; or
            (C) a failing sewage disposal system.

SOURCE: IC 13-11-2-201; (01)CR182401.5. -->     SECTION 5. IC 13-11-2-201 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]: Sec. 201. "Sewage disposal system", for purposes of IC 13-18-12 , IC 13-18-13 , and IC 13-18-21 means septic tanks, wastewater holding tanks, seepage pits, cesspools, privies, composting toilets, interceptors or grease traps, portable sanitary units, and other equipment, facilities, or devices used to:
        (1) store;
        (2) treat;
        (3) make inoffensive; or
        (4) dispose of;
human excrement or liquid carrying wastes of a domestic nature.".
SOURCE: Page 3, line 28; (01)CR182401.3. -->     Page 3, line 28, after "Sec. 3." insert " (a)".
    Page 3, between lines 39 and 40, begin a new paragraph and insert:
    " (b) For each state fiscal year, the budget agency may use not more than three percent (3%) of the total amount estimated by the budget agency to be available for financial assistance from the fund for the year for providing loan assistance for purposes permitted under this chapter to participants. Amounts estimated to be available for nonpoint source projects for any year that remain unused at the end of the year may be carried forward for use in any subsequent state fiscal year.
SOURCE: IC 13-18-13-5.5; (01)CR182401.8. -->     SECTION 8. IC 13-18-13-5.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]: Sec. 5.5. (a) Except as provided in

subsection (b), the budget agency shall manage and administer all aspects of the program.
    (b) The budget agency shall designate aspects of the program to be managed and administered by the department. When the budget agency makes a designation under this subsection, the budget agency shall direct the department in writing to manage and administer the designated aspects of the program.
    (c) The budget agency shall fix a budget for the aspects of the program to be:
        (1) managed and administered by the department under subsection (b); and
        (2) funded from:
            (A) the fund; or
            (B) a capitalization grant made by the United States Environmental Protection Agency for the benefit of the program.
".
SOURCE: Page 4, line 38; (01)CR182401.4. -->     Page 4, line 38, strike "department".
    Page 4, line 39, strike "and the".
    Page 5, line 2, strike "department and the".
    Page 5, line 10, strike "department" and insert " budget agency".
    Page 5, line 12, strike "department" and insert " budget agency".
    Page 5, line 16, after "(a)," insert " and subject to any bypass procedures implemented by the budget agency to efficiently render program assistance,".
    Page 5, line 21, after "Sec. 10." insert " (a)".
    Page 5, line 41, after "projects" insert " related to confined feeding operations, farm field runoff, or failing sewage disposal systems".
    Page 6, between lines 8 and 9, begin a new paragraph and insert:
    " (b) The budget agency is not required to establish uniform terms and conditions applicable to all loans or other financial assistance under this chapter. Differences in the terms and conditions may be based on:
        (1) credit;
        (2) loan structure;
        (3) capital access;
        (4) whether a participant is a political subdivision or a private entity; or
        (5) other factors the budget agency considers relevant.
".


    Page 8, line 32, after "relevant" delete "." and insert " , including:
            (A) the program's cost of funds; and
            (B) whether the financial assistance provided to a particular participant is taxable or tax exempt under federal law.
Based on the factors set forth in subdivisions (1) through (4), more than one (1) interest rate may be established and used for loans made to different participants in the same interest rate category.
".
    Page 9, between lines 34 and 35, begin a new paragraph and insert:
SOURCE: IC 13-18-13-18; (01)CR182401.20. -->     "SECTION 20. IC 13-18-13-18 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]: Sec. 18. (a) The water pollution control board and the budget agency may jointly adopt rules under IC 4-22-2 , including emergency rules under IC 4-22-2-37.1 , to implement this chapter.
     (b) All rules adopted by the board to implement this chapter are void. The publisher of the Indiana Administrative Code shall remove these rules from the Indiana Administrative Code.
    (c) All rules adopted by the budget agency before July 1, 2001, are void to the extent that the rules designate the department to manage or administer any aspect of the program.
".
SOURCE: Page 9, line 37; (01)CR182401.9. -->     Page 9, line 37, after "participant" insert " that is a political subdivision".
    Page 9, line 41, after "participant" insert " that is a political subdivision".
    Page 9, line 41, after "any" insert " applicable".
    Page 10, line 3, after "participant" insert " that is a political subdivision".
    Page 10, line 8, after "participant" insert " that is a political subdivision".
    Page 10, line 15, after "participant" insert " that is a political subdivision".
    Page 10, line 23, after "participant" insert " that is a political subdivision".
    Page 10, line 23, after "notes" strike "to".
    Page 10, line 24, strike "the department and the budget agency," and insert " for the benefit of the program,".
    Page 10, line 33, after "participant" insert " that is a political subdivision".
    Page 11, delete lines 32 through 38, begin a new paragraph and insert:
SOURCE: IC 13-18-21-3; (01)CR182401.23. -->     "SECTION 23. IC 13-18-21-3 , AS AMENDED BY P.L.132-1999, SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]: Sec. 3. (a) Money in the fund may be used to do the following:
        (1) Provide loans or other financial assistance to participants for the:
            (A) planning;
            (B) designing;
            (C) construction;
            (D) renovation;
            (E) improvement;
            (F) expansion; or
            (G) any combination of clauses (A) through (F);
        for public water systems that will facilitate compliance with national primary drinking water regulations applicable to public water systems under the federal Safe Drinking Water Act (42 U.S.C. 300f et seq.) or otherwise significantly further the health protection objectives of the federal Safe Drinking Water Act (42 U.S.C. 300f et seq.) and other activities necessary or convenient to complete these tasks.
        (2) Except as provided in the federal Safe Drinking Water Act (42 U.S.C. 300f et seq.), pay the cost of administering the fund and the program.
        (3) Conduct all other activities that are allowed by the federal Safe Drinking Water Act (42 U.S.C. 300f et seq.).
    (b) Notwithstanding section 2(g) of this chapter, if an adequate state match is available, the department and the budget agency shall may use not more than two percent (2%) of the funds allotted to the state under 42 U.S.C. 300j-12 to provide technical assistance to participants for public water systems serving not more than ten thousand (10,000) persons in Indiana. The department and the budget agency may jointly contract with a person or persons to provide the technical assistance. Funds used under this subsection may not be used for enforcement actions.
    (c) To the extent permitted by this chapter, required by the federal Safe Drinking Water Act (42 U.S.C. 300f et seq.), and subject to

any banking for technical assistance in prior state fiscal years permitted under that act, fifteen percent (15%) of the amount credited to the fund in a state fiscal year shall be available solely for providing loan assistance to participants for public water systems regularly serving less than ten thousand (10,000) persons in Indiana to the extent that the money can be obligated for eligible projects under the federal Safe Drinking Water Act (42 U.S.C. 300f et seq.). program.
    (d) To avoid the loss of money allotted to the state under 42 U.S.C. 300j-12 et seq., the budget agency and the department shall develop and implement a strategy to assist participants in acquiring and maintaining technical, managerial, and financial capacity as contemplated by 42 U.S.C. 300g-9. This is all the legal authority required by the state for the budget agency and the department to ensure that all new community water systems and new nontransient, noncommunity water systems, as contemplated by the federal Safe Drinking Water Act (42 U.S.C. 300f et seq.), commencing operations after October 1, 1999, demonstrate technical, managerial, and financial capacity with respect to each federal primary drinking water regulation in effect on the date operations commence. The department has primary responsibility to carry out this subsection.
    (e) This chapter does not require the budget agency to provide a loan or other financial assistance to any participant that would cause any bonds or other obligations issued to finance the program to lose their exemption from federal income taxation.
SOURCE: IC 13-18-21-4; (01)CR182401.24. -->     SECTION 24. IC 13-18-21-4 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]: Sec. 4. The department and the budget agency shall administer and manage the fund and program in accordance with this chapter.
SOURCE: IC 13-18-21-5.5; (01)CR182401.25. -->     SECTION 25. IC 13-18-21-5.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]: Sec. 5.5. (a) Except as provided in subsection (b), the budget agency shall manage and administer all aspects of the program.
    (b) The budget agency shall designate aspects of the program to be managed and administered by the department. When the budget agency makes a designation under this subsection, the budget agency shall direct the department in writing to manage and

administer the designated aspects of the program.
    (c) The budget agency shall fix a budget for the aspects of the program to be:
        (1) managed and administered by the department under subsection (b); and
        (2) funded from:
            (A) the fund; or
            (B) a capitalization grant made by the United States Environmental Protection Agency for the benefit of the program.

SOURCE: IC 13-18-21-8; (01)CR182401.26. -->     SECTION 26. IC 13-18-21-8 , AS AMENDED BY P.L.132-1999, SECTION 14, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]: Sec. 8. (a) The department and the budget agency may:
        (1) provide services to a participant in connection with a loan or other financial assistance, including advisory and other services; and
        (2) charge a fee for services provided.
    (b) The department and the budget agency may charge a fee for costs and services incurred in the review or consideration of an application for a proposed loan or other financial assistance under this chapter to or for the benefit of a participant, regardless of whether the application is approved or rejected.
    (c) A political subdivision may pay fees charged under this section.
SOURCE: IC 13-18-21-9; (01)CR182401.27. -->     SECTION 27. IC 13-18-21-9 , AS AMENDED BY P.L.132-1999, SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]: Sec. 9. (a) The department budget agency shall use a priority ranking system to recommend loans or other financial assistance from the fund. The department budget agency shall develop the priority ranking system consistent with federal primary drinking water regulations and health protection objectives of the federal Safe Drinking Water Act (42 U.S.C. 300f et seq.).
    (b) Based on the recommendations made under subsection (a), and subject to any bypass procedures implemented by the budget agency to efficiently render program assistance, the budget agency may make loans and provide other financial assistance from the fund to or for the benefit of participants.
SOURCE: IC 13-18-21-18; (01)CR182401.28. -->     SECTION 28. IC 13-18-21-18 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]: Sec. 18. (a) The water

pollution control board and the budget agency may jointly adopt rules under IC 4-22-2 , including emergency rules under IC 4-22-2-37.1 , to implement this chapter.
     (b) All rules adopted by the board to implement this chapter are void. The publisher of the Indiana Administrative Code shall remove these rules from the Indiana Administrative Code.
    (c) All rules adopted by the budget agency are void to the extent that the rules designate the department to manage or administer any aspect of the program.

SOURCE: IC 13-18-21-19; (01)CR182401.29. -->     SECTION 29. IC 13-18-21-19 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]: Sec. 19. (a) Notwithstanding any other law, a political subdivision may borrow money under this chapter by negotiating a loan or other financial assistance directly and without complying with requirements for the competitive sale of bonds, notes, or other obligations or evidences of indebtedness. A political subdivision shall observe any existing contractual commitments to bondholders or other persons when entering into a financial assistance agreement.
    (b) Notwithstanding any other law, a political subdivision may issue and sell notes, the principal and accrued interest on which shall be paid with proceeds from the issuance of bonds or other available money at the time the notes are due. The notes must be issued under a resolution or ordinance and the proceeds must be used to carry out the purposes specified in this chapter.
    (c) A political subdivision that issues notes under subsection (b) may renew or extend the notes periodically on terms agreed to with the budget agency, and the budget agency may purchase and sell the renewed or extended notes. Accrued interest on the date of renewal or extension may be paid or added to the principal amount of the note being renewed or extended.
    (d) The notes issued by a political subdivision under subsection (b), including any renewals or extensions, must mature:
        (1) in the amounts; and
        (2) at the times not exceeding four (4) years from the date of original issuance;
that are agreed to by the political subdivision and the budget agency.
    (e) Compliance with subsection (b) constitutes full authority for a political subdivision to issue notes and sell the notes to the department

and the budget agency, for the benefit of the program, and the political subdivision is not required to comply with any other law applicable to the authorization, approval, issuance, and sale of the notes. The notes are:
        (1) valid and binding obligations of the political subdivision;
        (2) enforceable in accordance with the terms of the notes; and
        (3) payable solely from the sources specified in the resolution or ordinance authorizing the issuance of the notes.
    (f) If the political subdivision issues bonds, all or part of the proceeds of which will be used to pay notes issued under subsection (b), the:
        (1) provisions of this section; or
        (2) actual issuance by a political subdivision of notes under subsection (b);
do not relieve the political subdivision of the obligation to comply with the statutory requirements for the issuance of bonds.
SOURCE: IC 13-18-21-22; (01)CR182401.30. -->     SECTION 30. IC 13-18-21-22 , AS AMENDED BY P.L.132-1999, SECTION 25, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]: Sec. 22. (a) The supplemental drinking water and wastewater assistance fund is established to provide money for grants, loans, and other financial assistance to or for the benefit of
        (1) participants for the purposes described in section 23(1) section 23 of this chapter. and
        (2) political subdivisions for the purposes described in section 23(2) of this chapter.
    (b) The general assembly may appropriate money to the supplemental fund. Grants or gifts of money to the supplemental fund and proceeds of the sale of:
        (1) gifts to the supplemental fund; and
        (2) loans and other financial assistance, as provided in sections 25 through 29 of this chapter;
shall be deposited in the supplemental fund.
    (c) Repayments of loans and other financial assistance from the supplemental fund, including interest, premiums, and penalties, shall be deposited in the supplemental fund.
    (d) The treasurer of state shall invest the money in the supplemental fund that is:
        (1) not currently needed to meet the obligations of the

supplemental fund; and
        (2) not invested under subsection (e);
in the same manner as other public money may be invested. Earnings that accrue from the investments shall be deposited in the supplemental fund.
    (e) As an alternative to the investment provided for in subsection (d), the budget agency may invest or cause to be invested all or a part of the supplemental fund in a fiduciary account or accounts with a trustee that is a financial institution. Notwithstanding any other law, any investment may be made by the trustee in accordance with one (1) or more trust agreements or indentures. A trust agreement or indenture may permit disbursements by the trustee to the department, the budget agency, a participant, the Indiana bond bank, or any other person as provided in the trust agreement or indenture. The state board of finance must approve the form of any trust agreement or indenture before execution.
    (f) The cost of administering the supplemental fund may be paid from money in the supplemental fund.
    (g) All money accruing to the supplemental fund is appropriated continuously for the purposes specified in this chapter.
    (h) Money in the supplemental fund does not revert to the state general fund at the end of a state fiscal year.
SOURCE: IC 13-18-21-23; (01)CR182401.31. -->     SECTION 31. IC 13-18-21-23 , AS AMENDED BY P.L.132-1999, SECTION 26, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]: Sec. 23. (a) Money in the supplemental fund may be used to do the following:
        (1) Provide grants, loans, or other financial assistance to or for the benefit of participants for:
             (A) the planning, designing, acquisition, construction, renovation, improvement, or expansion of public water systems; and
            other activities necessary or convenient to complete these tasks, whether or not those other activities are permitted by the federal Clean Water Act or the federal Safe Drinking Water Act.
        (2) Provide grants, loans, or other financial assistance to or for the benefit of political subdivisions for:
             (B) the planning, designing, acquisition, construction,

renovation, improvement, or expansion of wastewater or stormwater collection and treatment systems;
             (C) nonpoint source pollution reduction projects related to confined feeding operations, farm field runoff, or failing sewage disposal systems; and
             (D) other activities necessary or convenient to complete these tasks, whether or not those other activities are permitted by the federal Clean Water Act or the federal Safe Drinking Water Act.
        (3) (2) Pay the cost of administering the supplemental fund and the supplemental program.
        (4) (3) Conduct all other activities that are permitted by the federal Clean Water Act or the federal Safe Drinking Water Act.
     (b) For any state fiscal year, the budget agency may use not more than three percent (3%) of the amount estimated by the budget agency to be available for financial assistance from the fund for the year for providing loan assistance to participants for nonpoint source pollution reduction projects related to confined feeding operations or failing sewage disposal systems. Amounts estimated to be available for nonpoint source projects for any year that remain unused at the end of the year may be carried forward for use in any subsequent state fiscal year.
SOURCE: IC 13-18-21-25; (01)CR182401.32. -->     SECTION 32. IC 13-18-21-25 , AS AMENDED BY P.L.132-1999, SECTION 28, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]: Sec. 25. (a) The budget agency may make grants or loans or provide other financial assistance from the supplemental fund for the benefit of a participant under the following conditions:
        (1) A grant, loan, or other financial assistance may be used:
            (A) for planning, designing, acquiring, constructing, renovating, improving, or expanding public water systems, and other activities necessary or convenient to complete these tasks;
            (B) to:
                (i) establish reserves or sinking funds; or
                (ii) provide interest subsidies;
            (C) to pay financing charges, including interest on the loan during construction and for a reasonable period after the completion of construction; or


            (D) to pay the following:
                (i) Consultant, advisory, and legal fees.
                (ii) Other costs or expenses necessary or incident to the grant, loan, or other financial assistance or the administration of the supplemental fund or the supplemental program.
        (2) The budget agency must establish the terms and conditions that the budget agency considers necessary or convenient to make grants or loans or provide other financial assistance under this chapter.
    (b) In addition to its powers under subsection (a), the budget agency may also make grants or loans or provide other financial assistance from the supplemental fund to or for the benefit of a political subdivision participant under the following conditions:
        (1) A grant, loan, or other financial assistance may be used:
            (A) for planning, designing, acquiring, constructing, renovating, improving, or expanding wastewater or stormwater collection and treatment systems and nonpoint source pollution reduction projects related to confined feeding operations, farm field runoff, or failing sewage disposal systems, and other activities necessary or convenient to complete these tasks;
            (B) to:
                (i) establish reserves or sinking funds; or
                (ii) provide interest subsidies;
            (C) to pay financing charges, including interest on the loan during construction and for a reasonable period after the completion of construction; or
            (D) to pay the following:
                (i) Consultant, advisory, and legal fees.
                (ii) Other costs or expenses necessary or incident to the grant, loan, or other financial assistance or the administration of the supplemental fund or the supplemental program.
        (2) The budget agency must establish the terms and conditions that the budget agency considers necessary or convenient to make grants or loans or provide other financial assistance under this chapter.
     (c) The budget agency is not required to establish uniform terms and conditions applicable to all loans or other financial assistance under this section. Differences in the terms and conditions may be based on:
        (1) credit;
        (2) loan structure;
        (3) capital access;
        (4) whether a participant is a political subdivision or a private entity; or
        (5) other factors the budget agency considers relevant.

SOURCE: IC 13-18-13-4; IC 13-18-13-5; IC 13-18-13-6; IC 13- 18-21-5; IC13-18-21-6.".
; (01)CR182401.33. -->     SECTION 33. THE FOLLOWING ARE REPEALED [EFFECTIVE JULY 1, 2001]: IC 13-18-13-4 ; IC 13-18-13-5 ; IC 13-18-13-6 ; IC 13-18-21-5 ; IC13-18-21-6.".
    Renumber all SECTIONS consecutively.
    (Reference is to HB 1824 as printed February 9, 2001.)

and when so amended that said bill do pass.

Committee Vote: Yeas 9, Nays 0.

____________________________________

    Gard
Chairperson


CR182401/DI 52    2001