SENATE BILL No. 299
DIGEST OF INTRODUCED BILL
Citations Affected: IC 8-1.5-2.
Synopsis: Utility condemnation of property. Specifies the procedures
by which a municipality may exercise the power of eminent domain to
acquire the property of a public utility.
Effective: July 1, 2009.
January 7, 2009, read first time and referred to Committee on Utilities & Technology.
First Regular Session 116th General Assembly (2009)
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SENATE BILL No. 299
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 8-1.5-2-7; (09)IN0299.1.1. -->
SECTION 1. IC 8-1.5-2-7 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2009]: Sec. 7. (a) A certificate of
public convenience and necessity is not required as a condition
precedent to the owning, leasing, acquisition, construction, or operation
of a utility by a municipality, even if there is a public utility engaged in
a similar service. The acquisition of electric utility property and
assignment of a municipal electric utility's service area are, however,
subject to the provisions of IC 8-1-2.3 and IC 8-1-2-95.1.
(b) A municipality that wants to own and operate, including by
purchase or condemnation, a utility where there is a public utility
engaged in a similar service:
(1) under a franchise granted by the municipality; or
(2) under an indeterminate permit as defined in IC 8-1-2-1;
may, after a hearing as provided by section 10 of this chapter and an
election as provided by section 16 of this chapter, declare by ordinance
that public convenience and necessity require the establishment of a
municipally owned utility.
SOURCE: IC 8-1.5-2-11; (09)IN0299.1.2. -->
SECTION 2. IC 8-1.5-2-11 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2009]: Sec. 11. (a) If the municipal
legislative body adopts an ordinance under section 7 of this chapter
for the construction or acquisition of a utility, not more than thirty (30)
days after the adoption of the ordinance a public utility engaged in
rendering the same kind of utility service in the municipality, or in the
contiguous area in which the municipality proposes to operate, may
bring an action against the municipality in the circuit court or superior
court of the county in which the municipality is located for the purpose
of securing a judicial review and determination of the question of
public convenience and necessity.
(b) Pending such a determination, further action may not be taken
by the municipality for the construction or acquisition of the utility.
(c) The cause shall be heard without delay and determined by the
court without a jury, and at the hearing, either party may introduce
(d) The cause may be appealed to the court of appeals following
SOURCE: IC 8-1.5-2-15; (09)IN0299.1.3. -->
SECTION 3. IC 8-1.5-2-15 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2009]: Sec. 15. (a) If the
municipality and the owners of a public utility are unable to agree upon
a price to be paid for the property of the public utility, the municipality
may exercise the power of eminent domain to acquire the property.
If the municipality exercises the power of eminent domain, the
(1) by ordinance declare that a public necessity exists for the
condemnation of the utility property; and
(2) bring an action in the circuit or superior court of the county
where the municipality is located against the utility for the
condemnation of the property.
(b) An ordinance adopted under subsection (a) is final.
(c) For the purpose of acquiring the property of a public utility, the
(1) may exercise the power of eminent domain in
accordance with IC 32-24; and (2) is required only to establish the
necessity of taking as this chapter requires.
(d) The provisions of this section do not apply to the acquisition of
electric utility property or the assignment of service areas covered by
IC 8-1-2.3 and IC 8-1-2-95.1.
SOURCE: IC 8-1.5-2-17; (09)IN0299.1.4. -->
SECTION 4. IC 8-1.5-2-17 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2009]: Sec. 17. (a) A municipality,
by exercising the power of eminent domain in accordance with
IC 32-24 or other
applicable law, may acquire property rights
outside its corporate boundaries within the territory described in
section 3(b) of this chapter as necessary for the business of a
municipally owned utility.
(b) The municipal legislative body may provide for utility lines to
be laid through the municipality as the municipally owned utility
requires. The municipality may use any property or property rights
necessary for constructing, acquiring, operating, or protecting from
injury or pollution the municipally owned utility services.
(c) For the purpose of preserving and protecting from injury or
pollution the municipal water services, the municipality may exercise
its powers in areas within twenty-five (25) miles outside its corporate
(d) All attachments made to the utility fixtures, whether intended for
public or private use, are subject to the supervision and rules of the
utility for protection against abuse or destruction or the inordinate use
or waste of utility services.