HOUSE BILL No. 1040
DIGEST OF INTRODUCED BILL
Citations Affected: IC 13-18-16-16.
Synopsis: Water authority audits. Requires a water authority to be
audited annually by a certified public accounting firm, keep the audit
report on file, and provide the report to the state board of accounts.
Effective: July 1, 2005.
January 4, 2005, read first time and referred to Committee on Utilities and Energy.
First Regular Session 114th General Assembly (2005)
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HOUSE BILL No. 1040
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; (05)IN1040.1.1. -->
SECTION 1. IC 13-18-16-16 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2005]: 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, for
each of the authority's fiscal or calendar years that ends after
December 31, 2005:
(1) have an audit of its financial records performed by an
independent certified public accounting firm;
(2) keep the audit report on file at the water authority; and
(3) provide a copy of the audit report to the state board of