HOUSE BILL No. 1255
DIGEST OF INTRODUCED BILL
Citations Affected: IC 13-18-16-16.
Synopsis: Water authority audits. Requires water authorities to be
audited annually by a certified public accounting firm. Provides that the
state board of accounts must receive a copy of the audit report.
Effective: Upon passage; July 1, 2004.
January 15, 2004, read first time and referred to Committee on Environmental Affairs.
Second Regular Session 113th General Assembly (2004)
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,
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Additions: Whenever a new statutory provision is being enacted (or a new constitutional
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Conflict reconciliation: Text in a statute in this style type
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between statutes enacted by the 2003 Regular Session of the General Assembly.
HOUSE BILL No. 1255
A BILL FOR AN ACT to amend the Indiana Code concerning
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 13-18-16-16; (04)IN1255.1.1. -->
SECTION 1. IC 13-18-16-16, AS AMENDED BY P.L.2-2002,
SECTION 57, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2004]: Sec. 16. (a) A nonprofit water utility may adopt a
resolution approved by its board of directors under this section that
reconstitutes the nonprofit water utility as a water authority to be
named as provided in the resolution.
(b) A resolution adopted under this section must allow:
(1) the structure of the board of directors; and
(2) the rules governing the water authority;
to remain the same as those applicable to the nonprofit water utility.
(c) The water authority shall retain all its powers, privileges, rights,
and exemptions as a nonprofit water utility under:
(1) its existing bylaws and articles; and
(2) all laws applicable to nonprofit water utilities and local water
corporations, including powers granted under IC 32-24-4-1.
(d) A water authority constituted under this section is a political
subdivision of the state.
(e) A copy of a resolution adopted under this section must be filed
with the secretary of state. When the secretary of state receives a copy
of a resolution under this subsection, the secretary of state shall
dissolve the corporate status of the nonprofit water utility for purposes
of state law.
(f) A water authority constituted under this section shall:
(1) remain obligated under any existing contracts or agreements;
(2) remain obligated and assume the indebtedness;
of the nonprofit water utility.
(g) Notwithstanding any other law and subject to
subsections (h) and (i), a water authority constituted under this section
is subject only to the laws applicable to nonprofit water utilities and
local water corporations.
(h) A water authority constituted under this section is subject to
IC 8-1.5-3-8 for purposes of setting rates and charges.
(i) A water authority constituted under this section shall have an
audit of its financial records performed annually by an
independent certified public accounting firm. The audit report
must be kept on file at the water authority, and the water authority
must provide a copy of the audit report to the state board of
SOURCE: ; (04)IN1255.1.2. -->
SECTION 2. [EFFECTIVE UPON PASSAGE] Notwithstanding
IC 13-18-16-16, as amended by this act, a water authority must
provide the state board of accounts with an audit report under
IC 13-18-16-16, as amended by this act, for a fiscal or calendar
year that ends after December 31, 2004.
SECTION 3. An emergency is declared for this act.