Introduced Version






HOUSE BILL No. 1090

_____


DIGEST OF INTRODUCED BILL



Citations Affected: IC 8-1.5-4.

Synopsis: Municipal waterworks boards. Upon the petition of property owners within a municipal waterworks district, allows the county executive to appoint to the district's board of directors two additional directors who are residential customers of the waterworks owning real property within the district but outside the corporate boundaries of the municipality. Establishes a petition and remonstrance process to establish and eliminate the additional board positions.

Effective: July 1, 2003.





Kersey




    January 7, 2003, read first time and referred to Committee on Local Government.







Introduced

First Regular Session 113th General Assembly (2003)


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HOUSE BILL No. 1090



    A BILL FOR AN ACT to amend the Indiana Code concerning utilities and transportation.

Be it enacted by the General Assembly of the State of Indiana:

SOURCE: IC 8-1.5-4-2; (03)IN1090.1.1. -->     SECTION 1. IC 8-1.5-4-2 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 2. (a) If the legislative body of a municipality, by ordinance, adopts the provisions of this chapter, there is established a department of waterworks to be controlled by a board of directors (referred to as "the board" in this chapter). Except as provided in section 2.5 of this chapter, the board consists of either three (3) or five (5) directors, as determined by ordinance, who shall be appointed by the municipal executive.
    (b) In case there are three (3) directors, not more than two (2) may be of the same political party. In case there are five (5) directors, not more than three (3) may be of the same political party.
    (c) The terms of directors shall be prescribed by ordinance, but initial terms must be prescribed so that the directors' terms will be staggered. Each director shall give a bond, which shall be fixed by the municipal fiscal officer and is subject to his the municipal fiscal officer's approval.
    (d) The municipal executive may remove a director appointed

under this section at any time when, in his the municipal executive's judgment, it is for the best interest of the department.

SOURCE: IC 8-1.5-4-2.5; (03)IN1090.1.2. -->     SECTION 2. IC 8-1.5-4-2.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 2.5. (a) In the case of a waterworks district that serves territory outside the corporate boundaries of the municipality, the board may include two (2) directors who:
        (1) serve in addition to the three (3) or five (5) directors appointed under section 2 of this chapter;
        (2) are residential customers of the waterworks who own real property within the waterworks district but outside the corporate boundaries of the municipality; and
        (3) are appointed by the county executive of the county in which the waterworks district is located after a petition and remonstrance process described in this section.
    (b) Any time after the legislative body of a municipality adopts the provisions of this chapter by ordinance and the board of directors is appointed by the municipal executive under section 2 of this chapter, a petition requesting a petition and remonstrance process concerning the appointment of two (2) additional directors as permitted under subsection (a) may be filed with the county auditor if the petition is signed by the lesser of:
        (1) two hundred fifty (250) owners of real or personal property within the waterworks district; or
        (2) ten percent (10%) of the owners of real or personal property within the waterworks district.
A petition under this subsection must be verified under oath by at least one (1) qualified petitioner. The county auditor shall file a certified copy of each petition received under this subsection with the board and the county executive not later than fifteen (15) business days after the county auditor's receipt of the petition.
    (c) Upon receipt of a petition under subsection (b), the county auditor shall publish a notice in accordance with IC 5-3-1 of the filing of a petition under subsection (b) and of the applicability of a petition and remonstrance process under this section. The notice must state that any owners of real or personal property within the waterworks district who want to petition in favor of or remonstrate against the appointment of two (2) additional board directors must file petitions and remonstrances in compliance with subsection (d).
    (d) Not earlier than ten (10) days or later than thirty (30) days after the date of the last publication under subsection (c), written

petitions in favor of and remonstrances against the appointment of two (2) additional board directors may be filed with the county auditor by an owner or owners of real or personal property within the waterworks district. The county auditor shall issue petition and remonstrance forms prescribed by the county auditor to persons who request the forms within the time for filing petitions and remonstrances specified in this subsection. Each form must be accompanied by instructions detailing the requirements that:
        (1) the carrier and signers must be owners of real or personal property within the waterworks district;
        (2) the carrier must be a signatory on at least one (1) petition;
        (3) after the signatures have been collected, the carrier must swear or affirm before a notary public that the carrier witnessed each signature; and
        (4) govern the closing date for the petition and remonstrance period.

Persons requesting forms may not be required to identify themselves and may be allowed to pick up additional copies to distribute to other property owners. The county auditor shall certify the date of issuance on each petition or remonstrance form that is distributed under this subsection.
    (e) Not later than fifteen (15) business days after the close of the filing period described in subsection (d), the county auditor shall file with the board and the county executive a certificate and certified copies of the petitions and remonstrances received under subsection (d). The certificate must state:
        (1) the number of petitioners and remonstrators that are owners of real or personal property within the waterworks district;
        (2) the number of owners of real or personal property within the waterworks district that signed a petition in favor of the appointment of two (2) additional board directors; and
        (3) the number of owners of real or personal property within the waterworks district that signed a remonstrance against the appointment of two (2) additional board directors.
    (f) If a greater number of owners of real or personal property within the waterworks district sign a remonstrance than the number that sign a petition, the county executive may not appoint two (2) additional directors to the board under subsection (h). The owners of real or personal property within the waterworks district may not file another petition requesting a petition and remonstrance process under subsection (b) within one (1) year

after the date of the county auditor's certification of the results under subsection (e).
    (g) If a greater number of owners of real or personal property within the waterworks district sign a petition than the number that sign a remonstrance, the county executive, upon receipt of the county auditor's certificate under subsection (e), shall immediately notify by mail the:
        (1) carrier of the original petition requesting a petition and remonstrance process under subsection (b); and
        (2) carrier of the petition under subsection (d), if different than the person described in subdivision (1), containing the greatest number of signatures in favor of the appointment of additional board directors;
that the county executive will appoint two (2) additional board directors under subsection (h). Each notice mailed under this subsection must request recommendations for three (3) candidates for each new director to be appointed to the board. Each candidate recommended must be a residential customer of the waterworks who owns real property within the waterworks district but outside the corporate boundaries of the municipality. Of the three (3) candidates recommended for each new board position, not more than two (2) may be of the same political party. The recommendations must be filed with the county executive not later than thirty (30) days after the date of the notice requesting the recommendations.
    (h) The county executive shall make the initial appointments of the two (2) additional directors to the board from among the recommendations received under subsection (g). The two (2) directors appointed may not be of the same political party. If the county executive does not receive the recommendations within the thirty (30) day period prescribed under subsection (g), the county executive may appoint to the board any two (2) persons who are:
        (1) residential customers of the waterworks who own real property within the waterworks district but outside the corporate boundaries of the municipality; and
        (2) of different political parties.
The terms of the directors appointed under this subsection begin on the date of appointment and are for the same number of years as the terms of directors appointed under section 2 of this chapter, but the initial terms must be prescribed so that the directors' terms are staggered.
Each director appointed under this subsection shall give a bond, which shall be fixed by the county fiscal officer and

subject to the county fiscal officer's approval. A director appointed to a board position established under this subsection shall serve on the board until the director's successor is appointed and qualified under subsection (i) or until the board position is eliminated under subsection (j).
     (i) A director appointed to a board position established under subsection (h) may be removed by the county executive for cause, on charges of inefficiency or another proper charge, and without regard to the director's political affiliation, at any time when, in the county executive's judgment, it is for the best interest of the department, and subject to the approval of at least fifty percent (50%) of the remaining directors. If a vacancy occurs in a board position established under subsection (h) for any reason, including the expiration of the director's term, the county executive shall appoint a person to fill the vacancy for the remainder of the unexpired term or for the new term, whichever applies. The person appointed to fill the vacancy must be:
        (1) a residential customer of the waterworks who owns real property within the waterworks district but outside the corporate boundaries of the municipality; and
        (2) of a different political party than the other director holding a board position established under subsection (h).
A person appointed to a board position established under subsection (h) may be reappointed to subsequent terms.
    (j) The board shall continue to have the two (2) positions established under subsection (h) until a petition requesting a petition and remonstrance process concerning the elimination of the two (2) board positions established under subsection (h) is filed with the county auditor if the petition is signed by the lesser of:
        (1) two hundred fifty (250) owners of real or personal property within the waterworks district; or
        (2) ten percent (10%) of the owners of real or personal property within the waterworks district.
If a petition is filed under this subsection, the petition and remonstrance procedures set forth in this section shall be followed to determine whether the two (2) board positions established under subsection (h) shall be eliminated. If a greater number of property owners sign a remonstrance against the elimination of the board positions than the number that sign a petition in favor of the elimination of the positions, the two (2) board positions established under subsection (h) are not eliminated, and property owners within the waterworks district may not file another petition

requesting a petition and remonstrance process under this subsection for one (1) year following the date of the county auditor's certification of the results of the petition and remonstrance process. If a greater number of property owners sign a petition in favor of the elimination of the board positions than the number that sign a remonstrance against the elimination of the positions, the two (2) board positions established under subsection (h) are eliminated on the date of the county auditor's certification of the results of the petition and remonstrance process. However, a director serving in one (1) of the two (2) board positions established under subsection (h) on the date of the county auditor's certification may, not later than thirty (30) days after the date of the auditor's certification, take any action appropriate for winding up the director's involvement on the board and completing any business associated with the position that is initiated before the date of the auditor's certification. Property owners within the waterworks district may not file a petition requesting a petition and remonstrance process under subsection (b) to reestablish the eliminated positions for one (1) year following the date of the county auditor's certification of the results of the petition and remonstrance process.