SENATE BILL No. 519
DIGEST OF INTRODUCED BILL
Citations Affected: IC 4-33-4-19; IC 6-6-1.1-103; IC 14-15;
IC 14-25-10-4; IC 14-26-2.
Synopsis: Lake and boating issues. Extends the definition of "taxable
marine facility" for purposes of motor fuel taxes to facilities located on
any body of water under the state's jurisdiction. Requires a child less
than 13 years of age to wear a personal flotation device while on a boat.
Requires a boat or personal watercraft that is towing a person to have
enough space for the operator, observer, and person being towed.
Requires that a person who performs certain activities concerning
water levels, shorelines, and lake beds along a lake or within ten feet
of a lake obtain a permit from the department of natural resources.
Directs the natural resources commission to adopt rules. Makes
conforming changes. Repeals the former laws concerning permits to
change water levels, shorelines, and lake beds. (The introduced version
of this bill was prepared by the natural resources study committee.)
Effective: July 1, 2005.
January 18, 2005, read first time and referred to Committee on Natural Resources.
First Regular Session 114th General Assembly (2005)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
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between statutes enacted by the 2004 Regular Session of the General Assembly.
SENATE BILL No. 519
A BILL FOR AN ACT to amend the Indiana Code concerning
natural and cultural resources.
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 4-33-4-19; (05)IN0519.1.1. -->
SECTION 1. IC 4-33-4-19 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 19. The commission
shall revoke the license of a licensee who operates a riverboat upon
Patoka Lake if that licensee violates any of the following:
(1) IC 14-26-2-6.
(2) (1) IC 14-26-2-7.
(2) IC 14-26-2-23.
(3) IC 14-28-1.
SOURCE: IC 6-6-1.1-103; (05)IN0519.1.2. -->
SECTION 2. IC 6-6-1.1-103 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 103. As used in this
(a) "Administrator" means the administrative head of the
department of state revenue or the administrator's designee.
(b) "Dealer" means a person, except a distributor, engaged in the
business of selling gasoline in Indiana.
(c) "Department" means the department of state revenue.
(d) "Distributor" means a person who first receives gasoline in
Indiana. However, "distributor" does not include the United States
or any of its agencies unless their inclusion is permitted under the
Constitution and laws of the United States.
(e) "Licensed distributor" means a person holding a valid
distributor's license issued by the administrator.
(f) "Marine facility" means a marina or boat livery.
(g) "Gasoline" means:
(1) all products commonly or commercially known or sold as
gasoline, including casinghead and absorption or natural
gasoline, regardless of their classifications or uses; and
(2) any liquid, which when subjected to distillation of
gasoline, naphtha, kerosene, and similar petroleum products
with American Society for Testing Materials Designation
D-86, shows not less than ten percent (10%) distilled
(recovered) below three hundred forty-seven degrees
Fahrenheit (347 degrees F) or one hundred seventy-five
degrees Centigrade (175 degrees C), and not less than
ninety-five percent (95%) distilled (recovered) below four
hundred sixty-four degrees Fahrenheit (464 degrees F) or two
hundred forty degrees Centigrade (240 degrees C).
However, the term "gasoline" does not include liquefied gases
which would not exist as liquids at a temperature of sixty degrees
Fahrenheit (60 degrees F) or sixteen degrees Centigrade (16
degrees C), and a pressure of fourteen and seven-tenths (14.7)
pounds per square inch absolute, or denatured, wood, or ethyl
alcohol, ether, turpentine, or acetates, unless such product is used
as an additive in the manufacture, compounding, or blending of
a liquid within subdivision (2), in which event only the quantity
so used is considered gasoline. In addition, "gasoline" does not
include those liquids which meet the specifications of subdivision
(2) but which are especially designated for use other than as a fuel
for internal combustion engines.
(h) "Motor vehicle" means a vehicle, except a vehicle operated on
rails, which is propelled by an internal combustion engine or
motor and is designed to permit its mobile use on public
(i) "Person" means a natural person, partnership, firm,
association, corporation, limited liability company, representative
appointed by a court, or the state or its political subdivisions.
(j) "Public highway" means the entire width between boundary
lines of every publicly maintained way in Indiana including
streets and alleys in cities and towns when any part of the way is
open to public use for vehicle travel.
(k) "Taxable marine facility" means a marine facility located on
an Indiana lake. a body of water subject to the jurisdiction of
(l) "Taxicab" means a motor vehicle which is:
(1) designed to carry not more than seven (7) individuals,
including the driver;
(2) held out to the public for hire at a fare regulated by
municipal ordinance and based upon length of trips or time
(3) not operated over a definite route; and
(4) a part of a commercial enterprise in the business of
providing taxicab service.
(m) "Terminal" means a marine or pipeline gasoline facility.
(n) "Metered pump" means a stationary pump having a meter that
is capable of measuring the amount of gasoline dispensed through
(o) "Billed gallons" means the gallons indicated on an invoice for
payment to a supplier.
(p) "Export" for gasoline and fuels taxed in the same manner as
gasoline under the origin state's statutes means the sale for export
and delivery out of a state by or for the seller that is:
(1) an export by the seller in the origin state; and
(2) an import by the seller in the destination state.
(q) "Import" for gasoline and fuels taxed in the same manner as
gasoline under the origin state's statutes means the purchase for
export and transportation out of a state by or for the purchaser that
(1) an export by the purchaser in the origin state; and
(2) an import by the purchaser in the destination state.
(r) "Rack" means a dock, platform, or open bay:
(1) located at a refinery or terminal; and
(2) having a system of metered pipes and hoses to load fuel
into a tank wagon or tank transport.
SOURCE: IC 14-15-2-6; (05)IN0519.1.3. -->
SECTION 3. IC 14-15-2-6 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 6. (a) This section does
not apply to the following:
(1) A sailboard or windsurfing board.
(2) A manually propelled boat, such as a racing shell, rowing
scull, or racing kayak:
(A) that is recognized by national or international racing
associations for use in competitive racing;
(B) in which all occupants row, scull, or paddle, with the
exception of a coxswain if a coxswain is provided; and
(C) that is designed to carry and carries equipment only for
(b) All boats must be equipped with the number and type of
personal flotation devices listed in this subsection. A person may not
operate a boat unless the boat contains:
(1) for each person on board, one (1) personal flotation device
that meets the requirements for designation by the United States
Coast Guard as a Type I, Type II, Type III, or Type V personal
flotation device; and
(2) for a boat, except a canoe or kayak, at least sixteen (16) feet
in length and in addition to the requirements of subdivision (1),
one (1) personal flotation device that meets the requirements for
designation by the United States Coast Guard as a Type IV
personal flotation device.
(c) Each child who is less than thirteen (13) years of age and
who is on board a boat must wear an appropriate personal
flotation device approved by the United States Coast Guard, except
(1) the child is below deck;
(2) the child is in an enclosed cabin; or
(3) the boat is docked or anchored.
(c) (d) The director may waive the requirements of this section for
a boat during competition in a boat race for which a permit has been
issued by the department if the following conditions are met:
(1) The sponsor of the boat race has informed the director of the
precautions the sponsor will take to minimize the safety hazards
that exist due to noncompliance with the requirements of this
(2) The sponsor files with the director a document under which
the sponsor assumes all liability that may result from the use of a
boat under the waiver.
SOURCE: IC 14-15-3-20; (05)IN0519.1.4. -->
SECTION 4. IC 14-15-3-20 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 20. A person operating
a motorboat may not tow a water ski, a watersled, an aquaplane, or a
similar object, including a person on the waterski, watersled,
aquaplane, or similar object, unless:
(1) the motorboat is occupied by at least one (1) other person who
is giving the person's entire attention to watching the object or
(2) the person operating the boat is giving the person's entire
attention to the operation of the boat; and
(3) the boat has adequate seating space available for the
operator, the observer, and each person being towed.
SOURCE: IC 14-15-12-7; (05)IN0519.1.5. -->
SECTION 5. IC 14-15-12-7 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 7. A personal
watercraft shall not be used on public waters to tow individuals
engaged in waterskiing, aquaplaning, or similar activities, unless:
(1) the personal watercraft is at least nine (9) feet long;
(2) the personal watercraft is designed to seat at least three (3)
(3) an individual other than the operator of the personal watercraft
is aboard the personal watercraft, acting as an observer; and
(4) the personal watercraft has adequate seating space
available for the operator, the observer, and each person
SOURCE: IC 14-25-10-4; (05)IN0519.1.6. -->
SECTION 6. IC 14-25-10-4 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 4. Fees received by the
department under the following statutes shall be deposited in the fund:
(1) IC 14-26-2-9.
(1) IC 14-26-2-23.
(2) IC 14-26-5-4.
(3) IC 14-28-1-22.
(4) IC 14-29-3-2.
(5) IC 14-29-4-4.
SOURCE: IC 14-26-2-23; (05)IN0519.1.7. -->
SECTION 7. IC 14-26-2-23 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 23. (a) Unless a person
obtains a permit from the department under this section and
conducts the activities according to the terms of the permit, a
person may not conduct the following activities:
(1) Over, along, or lakeward of the shoreline or waterline of
a public freshwater lake:
(B) place fill; or
(C) place, modify, or repair a temporary or permanent
(2) If the lowest point of a structure or excavation would be
below the elevation of the shoreline or waterline:
(A) place a permanent structure; or
(B) conduct an excavation;
within ten (10) feet landward of the shoreline or waterline, as
measured perpendicularly from the shoreline or waterline of
a public freshwater lake.
(3) Change the water level, area, or depth of a public
freshwater lake or the location of the shoreline or waterline.
(b) An application for a permit for an activity described in
subsection (a) must be accompanied by the following:
(1) A nonrefundable fee of one hundred dollars ($100).
(2) A project plan that provides the department with
sufficient information concerning the proposed excavation,
fill, temporary structure, or permanent structure.
(3) A written acknowledgment from the landowner that any
additional water area created under the project plan is part
of the lake and is dedicated to the general public use with the
public rights described in section 5 of this chapter.
(c) The department may issue a permit after investigating the
merits of the application. In determining the merits of the
application, the department may consider any factor, including
cumulative effects, of the proposed activity upon the following:
(1) The shoreline, waterline, or bed of the lake.
(2) The fish, wildlife, or botanical resources.
(3) The public rights described in section 5 of this chapter.
(4) The management of watercraft operations under IC 14-15.
(5) The interests of a landowner having property rights
abutting the lake or rights to access the lake.
(d) A contractor or agent of the landowner who engages in an
activity described in subsection (a)(1), (a)(2), or (a)(3) must comply
with the terms of any permit issued under this section.
The commission shall adopt rules
in the manner provided in
IC 14-10-2-4 under IC 4-22-2
to do the following:
(1) Assist in the administration of this chapter.
(2) Provide objective standards for
(A) the placement of a temporary or permanent structure or
(B) the extraction of material;
over, along, or within a shoreline or waterline. issuing permits
under this section, including standards for the configuration
of piers, boat stations, platforms, and similar structures.
(A) may provide for a common use if the standard is
needed to accommodate the interests of landowners having
property rights abutting the lake or rights to access the
shall exempt any class of activities from licensing if the
commission finds that the class is unlikely to pose more than
a minimal potential for harm to the public rights described in
section 5 of this chapter.
(3) Establish a process under IC 4-21.5 for the mediation of
riparian owners persons with competing
interests or between a riparian owner person and the department.
concerning the usage of an area over, along, or within a shoreline
or waterline for a matter within the jurisdiction of this chapter.
The A rule adopted under this subsection must provide that:
(A) if good faith mediation under the process fails to achieve
a settlement, the department shall make a determination of the
(B) a person affected by the determination of the department
may seek administrative review by the commission.
SOURCE: IC 14-26-2-6; IC 14-26-2-9.
; (05)IN0519.1.8. -->
SECTION 8. THE FOLLOWING ARE REPEALED [EFFECTIVE
JULY 1, 2005]: IC 14-26-2-6; IC 14-26-2-9.
SOURCE: ; (05)IN0519.1.9. -->
SECTION 9. [EFFECTIVE JULY 1, 2005] (a) A permit issued
under IC 14-26-2-6 or IC 14-26-2-9, before their repeal by this act,
is valid and shall be considered a permit issued under
IC 14-26-2-23, as amended by this act.
(b) The SECTION expires July 1, 2007.