Introduced Version






SENATE BILL No. 299

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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.





Merritt




    January 7, 2009, read first time and referred to Committee on Utilities & Technology.







Introduced

First Regular Session 116th General Assembly (2009)


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, additions will appear in this style type, and deletions will appear in this style type.
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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 evidence.
    (d) The cause may be appealed to the court of appeals following determination.
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 municipality shall:
        (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 municipality (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 inside or

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 boundaries.
    (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.