MADAM PRESIDENT:
The Senate Committee on Utilities and Technology, to which was referred House Bill No. 1117, has had
the same under consideration and begs leave to report the same back to the Senate with the
recommendation that said bill be AMENDED as follows:
Delete everything after the enacting clause and insert the following:
adequate services and facilities. The charge made by any not-for-profit
utility for any service rendered or to be rendered, either directly or in
connection with the service, must be nondiscriminatory, reasonable,
and just. Each discriminatory, unjust, or unreasonable charge for the
service is prohibited and unlawful.
(c) (d) A reasonable and just charge for water or sewer service
within the meaning of this section is a charge that will produce
sufficient revenue to pay all legal and other necessary expense incident
to the operation of the not-for-profit utility's system, including the
following:
(1) Maintenance and repair costs.
(2) Operating charges.
(3) Interest charges on bonds or other obligations.
(4) Provision for a sinking fund for the liquidation of bonds or
other evidences of indebtedness.
(5) Provision for a debt service reserve for bonds or other
obligations in an amount not to exceed the maximum annual debt
service on the bonds or obligations.
(6) Provision of adequate funds to be used as working capital.
(7) Provision for making extensions and replacements.
(8) The payment of any taxes that may be assessed against the
not-for-profit utility or its property.
The charges must produce an income sufficient to maintain the
not-for-profit utility's property in sound physical and financial
condition to render adequate and efficient service. A rate too low to
meet these requirements is unlawful.
(d) (e) Except as provided in subsection (e), subsections (f) and (h),
a not-for-profit public sewer utility may require connection to its sewer
system of property producing sewage or similar waste and require the
discontinuance of use of privies, cesspools, septic tanks, and similar
structures, a sewage disposal system if:
(1) there is an available sanitary sewer within three hundred (300)
feet of the property line; and
(2) the utility has given written notice by certified mail to the
property owner at the address of the property at least ninety (90)
days before the date for connection stated in the notice.
The notice given under subdivision (2) must also inform the
property owner, other than an owner of property located in a
consolidated city, that the property owner may qualify for an
exemption as set forth in subsection (f).
(e) A not-for profit sewer utility may not require connection to its
sewer system of property producing sewage or similar waste and
require the discontinuance of use of privies, cesspools, septic tanks,
and similar structures if the source of the waste is more than five
hundred (500) feet from the point of connection to its sewer system.
(f) Subject to subsection (h), a property owner is exempt from
the requirement to connect to a not-for-profit public sewer utility's
sewer system and to discontinue use of a sewage disposal system if
the following conditions are met:
(1) The property owner's sewage disposal system was new at
the time of installation and approved in writing by the local
health department.
(2) The property owner, at the property owner's expense,
obtains and provides to the not-for-profit public sewer utility
a certification from the local health department or the
department's designee that the sewage disposal system is
functioning satisfactorily. If the local health department or
the department's designee denies the issuance of a certificate
to the property owner, the property owner may appeal the
denial to the board of the local health department. The
decision of the board is final and binding.
(3) The property owner provides the not-for-profit public
sewer utility with:
(A) the written notification of potential qualification for
the exemption described in subsection (i); and
(B) the certification described in subdivision (2);
within the time limits set forth in subsection (i).
(g) If a property owner, within the time allowed under
subsection (i), notifies a not-for-profit public sewer utility in
writing that the property owner qualifies for the exemption under
this section, the not-for-profit public sewer utility shall, until the
property owner's eligibility for an exemption under this section is
determined, suspend the requirement that the property owner
discontinue use of a sewage disposal system and connect to the
not-for-profit public sewer utility's sewer system.
(h) A property owner who qualifies for the exemption provided
under this section may not be required to connect to the
not-for-profit public sewer utility's sewer system for a period of ten
(10) years beginning on the date the new sewage disposal system
was installed. A property owner may apply for two (2) five (5) year
extensions of the exemption provided under this section by
following the procedures set forth in subsections (f) and (g). If
ownership of an exempt property is transferred during a valid
exemption period, including during an extension of an initial
exemption:
(1) the exemption applies to the subsequent owner of the
property for the remainder of the exemption period during
which the transfer occurred; and
(2) the subsequent owner may apply for any remaining
extensions.
However, the total period during which a property may be exempt
from the requirement to connect to a district's sewer system under
this section may not exceed twenty (20) years, regardless of
ownership of the property.
(i) To qualify for an exemption under this section, a property
owner must:
(1) within sixty (60) days after the date of the written notice
given to the property owner under subsection (h), notify the
not-for-profit public sewer utility in writing that the property
owner qualifies for the exemption under this section; and
(2) within sixty (60) days after the not-for-profit public sewer
utility receives the written notice provided under subdivision
(1), provide the not-for-profit public sewer utility with the
certification required under subsection (f)(2).
(j) When a property owner who qualifies for an exemption
under this section subsequently discontinues use of the property
owner's sewage disposal system and connects to the not-for-profit
public sewer utility's sewer system, the property owner may be
required to pay only the following to connect to the sewer system:
(1) The connection fee the property owner would have paid if
the property owner connected to the sewer system on the first
date the property owner could have connected to the sewer
system.
(2) Any additional costs:
(A) considered necessary by; and
(B) supported by documentary evidence provided by;
the not-for-profit public sewer utility.
(k) A not-for-profit public sewer utility may not require a
property owner to connect to the not-for-profit public sewer
utility's sewer system if:
(1) the property is located on at least ten (10) acres;
(2) the owner can demonstrate the availability of at least two
(2) areas on the property for the collection and treatment of
sewage that will protect human health and the environment;
(3) the waste stream from the property is limited to domestic
sewage from a residence or business;
consecutive weeks in at least two (2) newspapers of general
circulation in each of the counties, in whole or in part, in the
proposed district. If there is only one (1) newspaper of general
circulation in a county, a single publication each week for
three (3) consecutive weeks satisfies the requirement of this
subdivision.
(2) Either:
(A) by United States mail, postage prepaid, mailed to each
freeholder within the proposed district; or
(B) by broadcasting at least three (3) public service
announcements each day for fourteen (14) days on at least
two (2) radio stations operating in each of the counties, in
whole or in part, in the proposed district;
beginning at least fourteen (14) days before the date on which
a public meeting under subsection (c) is scheduled.
(c) After providing notice under subsection (b), a representative
that seeks to file a petition to establish a district must conduct a
public meeting to discuss and receive comments on the proposed
district.
(d) A representative may not file a petition to establish a
district:
(1) more than one hundred eighty (180) or less than sixty (60)
days after providing notice under subsection (b); or
(2) less than thirty (30) days after a meeting held under
subsection (c).
connection, with the cost of the action, including reasonable
attorney's fees of the district, to be assessed by the court against
the property owner in the action.
(10) Refuse the services of the district's facilities if the rates or
other charges are not paid by the user.
(11) Control and supervise all property, works, easements,
licenses, money, contracts, accounts, liens, books, records, maps,
or other property rights and interests conveyed, delivered,
transferred, or assigned to the district.
(12) Construct, acquire by purchase or otherwise, operate, lease,
preserve, and maintain works considered necessary to accomplish
the purposes of the district's establishment within or outside the
district and enter into contracts for the operation of works owned,
leased, or held by another entity, whether public or private.
(13) Hold, encumber, control, acquire by donation, purchase, or
condemnation, construct, own, lease as lessee or lessor, use, and
sell interests in real and personal property or franchises within or
outside the district for:
(A) the location or protection of works;
(B) the relocation of buildings, structures, and improvements
situated on land required by the district or for any other
necessary purpose; or
(C) obtaining or storing material to be used in constructing and
maintaining the works.
(14) Upon consent of two-thirds (2/3) of the members of the
board, merge or combine with another district into a single district
on terms so that the surviving district:
(A) is possessed of all rights, franchises, and authority of the
constituent districts; and
(B) is subject to all the liabilities, obligations, and duties of
each of the constituent districts, with all rights of creditors of
the constituent districts being preserved unimpaired.
(15) Provide by agreement with another eligible entity for the
joint construction of works the district is authorized to construct
if the construction is for the district's own benefit and that of the
other entity. For this purpose the cooperating entities may jointly
appropriate land either within or outside their respective borders
if all subsequent proceedings, actions, powers, liabilities, rights,
and duties are those set forth by statute.
(16) Enter into contracts with a person, an eligible entity, the
state, or the United States to provide services to the contracting
party for any of the following:
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 2.5. (a) As used in this section, "septic tank soil
absorption system" has the meaning set forth in IC 13-11-2-199.5.
(b) Subject to subsection (d), and except as provided in subsection
(e), a property owner is exempt from the requirement to connect to a
district's sewer system and to discontinue use of a septic tank soil
absorption system if the following conditions are met:
(1) The property owner's septic tank soil absorption system was
new at the time of installation and was approved in writing by the
local health department.
(2) The property owner, at the property owner's own expense,
obtains and provides to the district a certification from the local
health department or the department's designee that the septic
tank soil absorption system is functioning satisfactorily. If the
local health department or the department's designee denies the
issuance of a certificate to the property owner, the property owner
may appeal the denial to the board of the local health department.
The decision of the board is final and binding.
(3) The property owner provides the district with:
(A) the written notification of potential qualification for the
exemption described in subsection (g); (f); and
(B) the certification described in subdivision (2);
within the time limits set forth in subsection (g). (f).
(c) If a property owner, within the time allowed under subsection
(g), (f), notifies a district in writing that the property owner qualifies for
the exemption under this section, the district shall, until the property
owner's eligibility for an exemption under this section is determined,
suspend the requirement that the property owner discontinue use of a
septic tank soil absorption system and connect to the district's sewer
system.
(d) A property owner who qualifies for the exemption provided
under this section may not be required to connect to the district's sewer
system for a period of ten (10) years beginning on the date the new
septic tank soil absorption system was installed. A property owner
may apply for two (2) five (5) year extensions of the exemption
provided under this section by following the procedures set forth
in subsections (b) and (c). If ownership of the an exempt property
passes from the owner who qualified for the exemption to another
person is transferred during the a valid exemption period, including
during an extension of an initial exemption:
(1) the exemption does not apply applies to the subsequent owner
of the property for the remainder of the exemption period
during which the transfer occurred; and
(2) the subsequent owner may apply for any remaining
extensions.
However, the total period during which a property may be exempt
from the requirement to connect to a district's sewer system under
this section may not exceed twenty (20) years, regardless of
ownership of the property.
(e) The district may require a property owner who qualifies for the
exemption under this section to discontinue use of a septic tank soil
absorption system and connect to the district's sewer system if the
district credits the unamortized portion of the original cost of the
property owner's septic tank soil absorption system against the debt
service portion of the customer's monthly bill. The amount that the
district must credit under this subsection is determined in STEP TWO
of the following formula:
STEP ONE: Multiply the original cost of the property owner's
septic tank soil absorption system by a fraction, the numerator of
which is ninety-six (96) months minus the age in months of the
property owner's septic system, and the denominator of which is
ninety-six (96) months.
STEP TWO: Determine the lesser of four thousand eight hundred
dollars ($4,800) or the result of STEP ONE.
The district shall apportion the total credit amount as determined in
STEP TWO against the debt service portion of the property owner's
monthly bill over a period to be determined by the district, but not to
exceed twenty (20) years, or two hundred forty (240) months.
(f) (e) A district that has filed plans with the department to create or
expand a sewage district shall, within ten (10) days after filing the
plans, provide written notice to affected property owners:
(1) that the property owner may be required to discontinue the use
of a septic tank soil absorption system;
(2) that the property owner may qualify for an exemption from the
requirement to discontinue the use of the septic tank soil
absorption system; and
(3) of the procedures to claim an exemption.
(g) (f) To qualify for an exemption under this section, a property
owner must:
(1) within sixty (60) days after the date of the written notice given
to the property owner under subsection (f), (e), notify the district
in writing that the property owner qualifies for the exemption
under this section; and
(2) within sixty (60) days after the district receives the written
notice provided under subdivision (1), provide the district with
the certification required under subsection (b)(2).
(h) (g) When a property owner who qualifies for an exemption
under this section subsequently discontinues use of the property
owner's septic tank soil absorption system and connects to the district's
sewer system, the property owner may be required to pay only the
following to connect to the sewer system:
(1) The connection fee the property owner would have paid if the
property owner connected to the sewer system on the first date the
property owner could have connected to the sewer system.
(2) Any additional costs:
(A) considered necessary by; and
(B) supported by documentary evidence provided by;
the district.
(h) A property owner who connects to a district's sewer system
may provide, at the owner's expense, labor, equipment, materials,
or any combination of labor, equipment, and materials from any
source to accomplish the connection to the sewer system, subject to
inspection and approval by the board or a designee of the board.
(i) This section does not prohibit the state department of health,
a local health department, or a county health officer from
proceeding under IC 16-41-20 to declare a dwelling served by a
septic tank soil absorption system a public nuisance and pursuing
all available remedies.
readjustment increases the rates and charges by the amount specified
in section 15(c) of this chapter, the notice required by this subsection:
(1) must include a statement of a freeholder's ratepayer's rights
under section 15 of this chapter; and
(2) shall be mailed within the time specified in section 15(c) of
this chapter.
(d) Following the passage of an ordinance under subsection (a),
the lesser of fifty (50) or ten percent (10%) of the ratepayers of the
district may file a written petition objecting to the initial rates and
charges of the district. A petition filed under this subsection must:
(1) contain the name and address of each petitioner;
(2) be filed with a member of the district authority, in the
county where at least one (1) petitioner resides, not later than
thirty (30) days after the district adopts the ordinance; and
(3) set forth the grounds for the ratepayers' objection.
(e) The district authority shall set the matter for public hearing
not less than ten (10) business days but not later than twenty (20)
business days after the petition has been filed. The district
authority shall send notice of the hearing by certified mail to the
district and the first listed petitioner and publish the notice of the
hearing in a newspaper of general circulation in each county in the
district.
(f) Upon the date fixed in the notice, the district authority shall
hear the evidence produced and determine the following:
(1) Whether the board of trustees of the district, in adopting
the ordinance establishing sewer rates and charges, followed
the procedure required by this chapter.
(2) Whether the sewer rates and charges established by the
board by ordinance are just and equitable rates and charges,
according to the standards set forth in section 9 of this
chapter.
(g) After the district authority hears the evidence produced and
makes the determinations set forth in subsection (f), the district
authority, by a majority vote, shall:
(1) sustain the ordinance establishing the rates and charges;
(2) sustain the petition; or
(3) make any other ruling appropriate in the matter, subject
to the standards set forth in section 9 of this chapter.
(h) The order of the district authority may be appealed by the
district or a petitioner to the circuit court of the county in which
the district is located. The court shall try the appeal without a jury
and shall determine one (1) or both of the following:
(1) Whether the board of trustees of the district, in adopting
the ordinance establishing sewer rates and charges, followed
the procedure required by this chapter.
(2) Whether the sewer rates and charges established by the
board by ordinance are just and equitable rates and charges,
according to the standards set forth in section 9 of this
chapter.
Either party may appeal the circuit court's decision in the same
manner that other civil cases may be appealed.
of the district, the county fiscal body may appoint the
member required by this item from among the county fiscal
body's own membership, subject to subsection (a)(3).
(2) In the case of a regional sewage district located in more than
one (1) county, the following members:
(A) If:
(i) an odd number of counties are part of the regional sewage
district; and
(ii) each county in the district has at least one (1) county
executive member who is not a trustee of the regional
sewage district;
one (1) county executive member, appointed by that member's
county executive, from each county in which the district is
located, subject to subsection (a)(3).
(B) If an even number of counties are part of the regional
sewage district, the following members:
(i) Two (2) county executive members, appointed by those
members' county executive, from the county that has the
largest number of customers served by the district's sewer
system. However, if the county that has the largest number
of customers served by the district's sewer system does not
have at least two (2) members of its executive who are not
also trustees of the district, the county executive of that
county may appoint one (1) or more of the members
required by this item from outside the county executive's
own membership in order to comply with subsection (a)(3).
(ii) One (1) county executive member, appointed by that
member's county executive, from each county, other than the
county described in item (i), in which the district is located.
However, if a county described in this item does not have at
least one (1) member of its executive who is not also a
trustee of the district, the county executive of that county
may appoint the member required by this item from outside
the county executive's own membership in order to comply
with subsection (a)(3).
(C) If an odd number of counties are part of the regional
sewage district and an odd number of those counties in the
district do not have at least one (1) county executive member
who is not also a trustee of the district, the following members:
(i) One (1) county executive member, appointed by that
member's county executive, from each county that has at
least one (1) county executive member who is not also a
trustee of the district, subject to subsection (a)(3).
(ii) One (1) member appointed by the county executive of
each county that does not have at least one (1) county
executive member who is not also a trustee of the district. A
member appointed under this item must be appointed from
outside the appointing county executive's own membership,
subject to subsection (a)(3).
(c) If a district adopts an ordinance increasing sewer rates and
charges at a rate that is greater than five percent (5%) per year, as
calculated from the rates and charges in effect from the date of the
district's last rate increase, the district shall mail, either separately or
along with a periodic billing statement, a notice of the new rates and
charges to each user of the sewer system who is affected by the
increase. The notice:
(1) shall be mailed not later than seven (7) days after the district
adopts the ordinance increasing the rates and charges; and
(2) must include a statement of a freeholder's ratepayer's rights
under this section.
(d) If subsection (c) applies, fifty (50) freeholders ratepayers of the
district or ten percent (10%) of the district's freeholders, ratepayers,
whichever is fewer, may file a written petition objecting to the rates
and charges of the district. A petition filed under this subsection must:
(1) contain the name and address of each petitioner;
(2) be filed with a member of the district authority, in the county
where at least one (1) petitioner resides, not later than thirty (30)
days after the district adopts the ordinance establishing the rates
and charges; and
(3) set forth the grounds for the freeholders' ratepayers'
objection.
If a petition meeting the requirements of this subsection is filed, the
district authority shall investigate and conduct a public hearing on the
petition. If more than one (1) petition concerning a particular increase
in rates and charges is filed, the district authority shall consider the
objections set forth in all the petitions at the same public hearing.
(e) The district authority shall set the matter for public hearing not
less than ten (10) business days but not later than twenty (20) business
days after the petition has been filed. The district authority shall send
notice of the hearing by certified mail to the district and the first listed
petitioner and publish the notice of the hearing in a newspaper of
general circulation in each county in the district.
(f) Upon the date fixed in the notice, the district authority shall hear
the evidence produced and determine the following:
order may be enforced by injunction. If the action concerning public
health is a criminal offense, a law enforcement authority with
jurisdiction over the place where the offense occurred shall be notified.
(d) A complaint made under subsection (b) must include
adequate details to allow the health officer to verify the existence
of the unlawful conditions that are the subject of the complaint. A
health officer shall provide a copy of a complaint upon request to
the person who is the subject of the complaint.
(e) A person who provides false information upon which a
health officer relies in issuing an order under this section commits
a Class C infraction.
and when so amended that said bill do pass .
Committee Vote: Yeas 10, Nays 0.