provides service to property located outside the corporate boundaries
of the municipality.
(b) As used in this section:
(1) "utility"; and
(2) "works";
have the meaning set forth for those terms in section 8.1 of this chapter.
(c) This subsection applies if a municipal legislative body adopts an
ordinance under section 8.1 of this chapter or under IC 36-9-23-26 that
is in effect on March 31, 2012, and that imposes rates and charges on
users of the works for service to property located outside the corporate
boundaries of the municipality that exceed by more than fifteen percent
(15%), but not more than fifty percent (50%), the rates and charges
imposed on users of the works for service to property located within the
corporate boundaries of the municipality. Not later than September 30,
2012, the municipality may petition the commission to approve the
percentage difference between rates and charges established in the
ordinance for property within and property outside the corporate
boundaries. In the petition, the municipality shall set forth the
following:
(1) The date on which the ordinance took effect.
(2) The percentage difference between rates and charges imposed
on users of the works for service to property located outside the
corporate boundaries of the municipality and to property located
within the corporate boundaries of the municipality.
(3) Whether the works that is the subject of the ordinance is a
water utility works, a wastewater utility works, or both a water
and wastewater utility works.
If the commission determines that a petition filed under this subsection
satisfies the requirements of this subsection, the commission shall
approve the petition, including the percentage difference between rates
and charges described in subdivision (2). If the commission determines
that a petition filed under this subsection does not satisfy the
requirements of this subsection, the commission shall disapprove the
petition. However, if the percentage difference imposed in the
ordinance was the subject of an objecting petition that was filed under
section 8.2 of this chapter or under IC 36-9-23-26.1 and sustained on
final judgment or appeal, as applicable, by a court, the percentage
difference is considered approved without the filing of a petition under
this subsection.
(d) If a municipality that files, or that is exempt from filing, a
petition under subsection (c) adopts an ordinance under section 8.1 of
this chapter after March 31, 2012, that imposes rates and charges on
users of the works for service to property located outside the corporate
boundaries of the municipality that exceed the rates and charges
imposed on users of the works for service to property located within the
corporate boundaries of the municipality by more than the sum of the
percentage difference approved or considered approved by the
commission under subsection (c) plus fifteen percent (15%), either or
both of the following may petition the commission to review and
adjust, if necessary, the rates and charges imposed on users of the
works for service to property located outside the corporate boundaries
of the municipality:
(1) The municipality.
(2) The lesser of:
(A) ten percent (10%) of all; or
(B) twenty-five (25);
users of the works whose property is located outside the corporate
boundaries of the municipality.
A petition filed under this subsection must be filed not more than
fourteen (14) days after the date on which the ordinance referred to in
this subsection is adopted. A petition may not be filed under this
subsection if a petition has already been filed under section 8.2 of this
chapter appealing the same rates and charges.
(e) If a municipal legislative body, other than a municipal legislative
body described in subsection (c), adopts an ordinance under section 8.1
of this chapter after March 31, 2012, that imposes rates and charges on
users of the works for service to property located outside the corporate
boundaries of the municipality that exceed the rates and charges
imposed on users of the works for service to property located within the
corporate boundaries of the municipality by more than fifteen percent
(15%), either or both of the following may petition the commission to
review and adjust, if necessary, the rates and charges imposed on users
of the works for service to property located outside the corporate
boundaries of the municipality:
(1) The municipality.
(2) The lesser of:
(A) ten percent (10%) of all; or
(B) twenty-five (25);
users of the works whose property is located outside the corporate
boundaries of the municipality.
A petition must be filed not more than fourteen (14) forty-five (45)
days after the date on which the ordinance is adopted. A petition may
not be filed under this subsection if a petition has already been filed
under section 8.2 of this chapter or under IC 36-9-23-26.1 appealing
the same rates and charges.
(f) The filing of a petition with the commission under subsection (d)
or (e) stays the ordinance adopted under section 8.1 of this chapter or
under IC 36-9-23-26. The rates and charges in effect before the
adoption of the ordinance remain in effect until:
(1) the commission approves or disapproves the petition, or the
petition is dismissed under subsection (g); and
(2) if applicable, the commission adjusts the rates and charges
imposed by the ordinance on users of the works whose property
is located outside the corporate boundaries of the municipality.
(g) The commission shall prescribe the form and manner in which
a petition must be filed under subsection (d) or (e). The burden of proof
to demonstrate that the proposed rates and charges are
nondiscriminatory, reasonable, and just is on the municipality,
regardless of who petitions the commission. If the commission fails to
approve or disapprove a petition within one hundred twenty (120) days
after the petition is filed in the form and manner prescribed by the
commission, the petition is dismissed, and the ordinance adopted under
section 8.1 of this chapter or under IC 36-9-23-26 takes effect. A
petition is automatically disapproved if the petitioner has filed a
petition under section 8.2 of this chapter or under IC 36-9-23-26.1 with
respect to the same rate ordinance.
(h) For purposes of determining whether the percentage difference
between rates and charges imposed on users of the works for service to
property located outside the corporate boundaries of the municipality
and the rates and charges imposed on users of the works for service to
property located within the corporate boundaries of the municipality is
nondiscriminatory, reasonable, and just under section 8 of this chapter,
the commission:
(1) may consider the benefit and expense to all users of the works
of extending the works outside the corporate boundaries of the
municipality; and
(2) may not consider any connection fees or capital surcharges
imposed on users of the works for service to property that is
located outside the corporate boundaries of the municipality that
are specifically designated to pay for the costs associated with
main extensions to the users of the works.
(i) If the commission determines that the percentage difference
between the rates and charges imposed on users of the works for
service to property located outside the corporate boundaries of the
municipality and the rates and charges imposed on users of the works
for service to property located within the corporate boundaries of the
municipality is not nondiscriminatory, reasonable, and just under
section 8 of this chapter, the commission may:
(1) establish nondiscriminatory, reasonable, and just rates and
charges for users of the works for service to property located
outside the corporate boundaries of the municipality; and
(2) order the municipal legislative body to adopt an ordinance
imposing the nondiscriminatory, reasonable, and just rates and
charges.
However, with respect to rates and charges imposed in an ordinance
that was the subject of an objecting petition filed under section 8.2 of
this chapter or under IC 36-9-23-26.1 and sustained on final judgment
or appeal, as applicable, by a court, the commission may not establish
rates and charges such that the percentage difference between rates and
charges established by the commission is less than the percentage
difference between rates and charges imposed in the ordinance.
(j) This section does not:
(1) authorize the commission to review or revise rates and charges
imposed on users of the works for service to property located
within the corporate boundaries of the municipality; or
(2) otherwise return or subject a utility to the jurisdiction of the
commission for the approval of rates and charges.
(k) The commission may adopt rules under IC 4-22-2 to implement
this section.
(l) The commission may not impose a fee with respect to
proceedings under this section.
(m) Subject to subsection (h)(2), for purposes of this section,
"rates and charges" are those charges made by a municipality for
a service rendered or to be rendered by the municipality's utility,
either directly or in connection with that service, as described in
section 8(b) of this chapter, regardless of whether the rates and
charges:
(1) are:
(A) imposed through a compact fee or any similar
arrangement; or
(B) referred to as a compact fee or by any other term;
by the municipality or the utility; or
(2) are based, in whole or in part, on the assessed value of the
property served by the utility.
(n) A municipality may not require an existing user of the works
to enter into an agreement that:
(1) is for service to the user's property located outside the
corporate boundaries of the municipality; and
(2) implements a payment in lieu of taxes as a condition for
the continuation of service to the property, regardless of
whether the payment in lieu of taxes is based on the assessed
value of the property.".
Renumber all SECTIONS consecutively.
(Reference is to ESB 385 as printed April 5, 2013.)