Indiana 2023 Regular Session

Indiana House Bill HB1402 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
	1	+	EH1402.1
	2	+	March 29, 2023
	3	+	ENGROSSED
	4	+	HOUSE BILL No. 1402
	5	+	_____
	6	+	DIGEST OF HB 1402 (Updated March 28, 2023 3:49 pm - DI 140)
	7	+	Citations Affected: IC 8-1; IC 13-26; IC 16-18; IC 16-19; IC 16-41;
	8	+	IC 36-9.
	9	+	Synopsis: Sewage management matters. Provides that a wastewater
	10	+	utility that is not subject to the jurisdiction of the Indiana utility
	11	+	regulatory commission (commission) and that receives wholesale
	12	+	wastewater service from another wastewater utility may not: (1)
	13	+	disconnect from wholesale wastewater service provided by the other
	14	+	wastewater utility; and (2) construct a new wastewater treatment plant
	15	+	to serve its customers; unless the wastewater utility obtains the
	16	+	approval of the commission. Requires: (1) a regional sewage district;
	17	+	or (2) certain municipalities; at least 90 days before requiring the
	18	+	connection of a property to a sewer system and the discontinuance of
	19	+	use of the property's septic system, to notify the property's owner about
	20	+	a statutory exemption from the requirement to connect to the sewer
	21	+	system that may apply to the property. Requires the Indiana department
	22	+	of health to update: (1) all matters incorporated by reference in the
	23	+	(Continued next page)
	24	+	Effective: January 1, 2023 (retroactive); July 1, 2023.
	25	+	Pressel, Miller D
	26	+	(SENATE SPONSORS — NIEMEYER, PERFECT)
	27	+	January 17, 2023, read first time and referred to Committee on Environmental Affairs.
	28	+	February 16, 2023, amended, reported — Do Pass.
	29	+	February 20, 2023, read second time, ordered engrossed.
	30	+	February 21, 2023, engrossed. Read third time, passed. Yeas 92, nays 0.
	31	+	SENATE ACTION
	32	+	March 6, 2023, read first time and referred to Committee on Environmental Affairs.
	33	+	March 28, 2023, amended, reported favorably — Do Pass.
	34	+	EH 1402—LS 7444/DI 150 Digest Continued
	35	+	department of health rules concerning residential onsite sewage
	36	+	systems (the rules); and (2) all industry standard practices reflected in
	37	+	the rules; upon the recognition of new bulletins, standards,
	38	+	specifications, and industry standard practices that supersede the
	39	+	bulletins, standards, specifications, and industry standard practices
	40	+	incorporated by reference or otherwise reflected in the rules. Provides
	41	+	that the technical review panel must approve the updates before the
	42	+	Indiana department of health may update the rules. Provides that a
	43	+	county or city ordinance that would restrict or prohibit the use of
	44	+	technology new to Indiana that has been approved by the technical
	45	+	review panel or that would otherwise vary from the rules: (1) if adopted
	46	+	after December 31, 2023, is not effective unless it is submitted to and
	47	+	approved by the technical review panel; and (2) if adopted before
	48	+	January 1, 2024, becomes void and unenforceable on January 1, 2024,
	49	+	unless, before January 1, 2024, the ordinance: (A) is readopted by the
	50	+	legislative body of the county or city; and (B) is submitted to and
	51	+	approved by the technical review panel.
	52	+	EH 1402—LS 7444/DI 150EH 1402—LS 7444/DI 150 March 29, 2023
1	53		First Regular Session of the 123rd General Assembly (2023)
2	54		PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
3	55		Constitution) is being amended, the text of the existing provision will appear in this style type,
4	56		additions will appear in this style type, and deletions will appear in this style type.
5	57		Additions: Whenever a new statutory provision is being enacted (or a new constitutional
6	58		provision adopted), the text of the new provision will appear in this style type. Also, the
7	59		word NEW will appear in that style type in the introductory clause of each SECTION that adds
8	60		a new provision to the Indiana Code or the Indiana Constitution.
9	61		Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
10	62		between statutes enacted by the 2022 Regular Session of the General Assembly.
11		-	HOUSE ENROLLED ACT No. 1402
12		-	AN ACT to amend the Indiana Code concerning health.
	63	+	ENGROSSED
	64	+	HOUSE BILL No. 1402
	65	+	A BILL FOR AN ACT to amend the Indiana Code concerning
	66	+	health.
13	67		Be it enacted by the General Assembly of the State of Indiana:
14		-	SECTION 1. IC 8-1-1.9-6 IS ADDED TO THE INDIANA CODE
15		-	AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
16		-	1, 2023]: Sec. 6. (a) This section applies to a wastewater utility that:
17		-	(1) is not subject to the jurisdiction of the commission for the
18		-	approval of rates and charges; and
19		-	(2) receives wholesale wastewater service from another
20		-	wastewater utility.
21		-	(b) As used in this section, "wastewater utility" means a:
22		-	(1) public utility;
23		-	(2) municipally owned utility (as defined in IC 8-1-2-l(h)) that
24		-	serves fewer than eight thousand (8,000) customers;
25		-	(3) not-for-profit utility (as defined in IC 8-1-2-125(a));
26		-	(4) cooperatively owned corporation;
27		-	(5) conservancy district established under IC 14-33; or
28		-	(6) regional sewer district established under IC 13-26.
29		-	(c) Before a wastewater utility may:
30		-	(1) disconnect from the wholesale wastewater service
31		-	provided by another wastewater utility; and
32		-	(2) construct a new wastewater treatment plant to serve its
33		-	customers;
34		-	the wastewater utility must obtain the approval of the commission
35		-	of its plan to disconnect from the other wastewater utility's
36		-	HEA 1402 — CC 1 2
37		-	wholesale wastewater service and construct a new wastewater
38		-	treatment plant.
39		-	(d) A wastewater utility to which subsection (c) applies must
40		-	submit to the commission as part of the wastewater utility's case in
41		-	chief:
42		-	(1) the current costs incurred by the wastewater utility for
43		-	utility service with the other wastewater utility providing
44		-	wholesale wastewater service;
45		-	(2) the projected future costs to be incurred by the wastewater
46		-	utility for utility service if the other wastewater utility were to
47		-	continue providing wholesale wastewater service; and
48		-	(3) the projected future costs to be incurred by the wastewater
49		-	utility for utility service if the wastewater utility were to
50		-	disconnect from the other wastewater utility providing
51		-	wholesale wastewater service and construct a new wastewater
52		-	treatment plant.
53		-	(e) The commission may approve a wastewater utility's proposal
54		-	under subsection (c) if the commission finds that:
55		-	(1) the disconnection from the wholesale wastewater service
56		-	and the construction of a new wastewater treatment plant is
57		-	reasonable and in the public interest;
58		-	(2) the total rates charged by the wastewater utility for
59		-	wastewater service will not increase above the projected cost
60		-	of continued service with the wholesale wastewater service
61		-	provider as a result of the disconnection from the wholesale
62		-	wastewater service and the new wastewater treatment plant
63		-	construction;
64		-	(3) the wastewater utility has developed an asset management
65		-	program, as defined in guidelines adopted by the Indiana
66		-	finance authority under IC 5-1.2; and
67		-	(4) the wastewater utility has the legal, managerial, technical,
68		-	and financial expertise to construct and manage a new
69		-	wastewater treatment plant.
70		-	(f) In the commission's annual report under IC 8-1-1-14, the
71		-	commission shall include a description of any activity under this
72		-	section.
73		-	SECTION 2. IC 13-26-5-2, AS AMENDED BY P.L.178-2013,
74		-	SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
75		-	JULY 1, 2023]: Sec. 2. A district may do the following:
76		-	(1) Sue or be sued.
77		-	(2) Make contracts in the exercise of the rights, powers, and
78		-	duties conferred upon the district.
79		-	HEA 1402 — CC 1 3
80		-	(3) Adopt and alter a seal and use the seal by causing the seal to
81		-	be impressed, affixed, reproduced, or otherwise used. However,
82		-	the failure to affix a seal does not affect the validity of an
83		-	instrument.
84		-	(4) Adopt, amend, and repeal the following:
85		-	(A) Bylaws for the administration of the district's affairs.
86		-	(B) Rules and regulations for the following:
87		-	(i) The control of the administration and operation of the
88		-	district's service and facilities.
89		-	(ii) The exercise of all of the district's rights of ownership.
90		-	(5) Construct, acquire, lease, operate, or manage works and obtain
91		-	rights, easements, licenses, money, contracts, accounts, liens,
92		-	books, records, maps, or other property, whether real, personal, or
93		-	mixed, of a person or an eligible entity.
94		-	(6) Assume in whole or in part any liability or obligation of:
95		-	(A) a person;
96		-	(B) a nonprofit water, sewage, or solid waste project system;
97		-	or
98		-	(C) an eligible entity;
99		-	including a pledge of part or all of the net revenues of a works to
100		-	the debt service on outstanding bonds of an entity in whole or in
101		-	part in the district and including a right on the part of the district
102		-	to indemnify and protect a contracting party from loss or liability
103		-	by reason of the failure of the district to perform an agreement
104		-	assumed by the district or to act or discharge an obligation.
105		-	(7) Fix, alter, charge, and collect reasonable rates and other
106		-	charges in the area served by the district's facilities to every
107		-	person whose premises are, whether directly or indirectly,
108		-	supplied with water or provided with sewage or solid waste
109		-	services by the facilities for the purpose of providing for the
110		-	following:
111		-	(A) The payment of the expenses of the district.
112		-	(B) The construction, acquisition, improvement, extension,
113		-	repair, maintenance, and operation of the district's facilities
114		-	and properties.
115		-	(C) The payment of principal or interest on the district's
116		-	obligations.
117		-	(D) To fulfill the terms of agreements made with:
118		-	(i) the purchasers or holders of any obligations; or
119		-	(ii) a person or an eligible entity.
120		-	(8) Except as provided in sections 2.5 and 2.6 of this chapter,
121		-	require connection to the district's sewer system of property
122		-	HEA 1402 — CC 1 4
123		-	producing sewage or similar waste, and require the
124		-	discontinuance of use of privies, cesspools, septic tanks, and
125		-	similar structures if:
126		-	(A) there is an available sanitary sewer within three hundred
127		-	(300) feet of:
128		-	(i) the property line, if the property is adjacent to a body of
129		-	water, including a lake, river, or reservoir;
130		-	(ii) any part of a subdivision, or land that is divided or
131		-	proposed to be divided into lots, whether contiguous or
132		-	subject to zoning requirements, for the purpose of sale or
133		-	lease as part of a larger common plan of development or
134		-	sale; or
135		-	(iii) for all other properties, the improvement or other
136		-	structure from which the sewage or similar waste is
137		-	discharged;
138		-	(B) the district has given written notice by certified mail to the
139		-	property owner at the address of the property at least ninety
140		-	(90) days before a date for connection to be stated in the notice
141		-	and the notice includes a list of the applicable exemptions
142		-	from connecting to the sewer system available to the
143		-	property owner that are described in section 2.5 of this
144		-	chapter; and
145		-	(C) if the property is located outside the district's territory:
146		-	(i) the district has obtained and provided to the property
147		-	owner (along with the notice required by clause (B)) a letter
148		-	of recommendation from the local health department that
149		-	there is a possible threat to the public's health; and
150		-	(ii) if the property is also located within the extraterritorial
151		-	jurisdiction of a municipal sewage works under IC 36-9-23
152		-	or a public sanitation department under IC 36-9-25, the
153		-	municipal works board or department of public sanitation
154		-	has acknowledged in writing that the property is within the
155		-	municipal sewage works or department of public sanitation's
156		-	extraterritorial jurisdiction, but the municipal works board
157		-	or department of public sanitation is unable to provide sewer
158		-	service.
159		-	However, a district may not require the owner of a property
160		-	described in this subdivision to connect to the district's sewer
161		-	system if the property is already connected to a sewer system that
162		-	has received an NPDES permit and has been determined to be
163		-	functioning satisfactorily.
164		-	(9) Provide by ordinance for a reasonable penalty, not to exceed
165		-	HEA 1402 — CC 1 5
166		-	one hundred dollars ($100) per day, for failure to connect and also
167		-	apply to the circuit or superior court of the county in which the
168		-	property is located for an order to force connection, with the cost
169		-	of the action, including reasonable attorney's fees of the district,
170		-	to be assessed by the court against the property owner in the
171		-	action.
172		-	(10) Refuse the services of the district's facilities if the rates or
173		-	other charges are not paid by the user.
174		-	(11) Control and supervise all property, works, easements,
175		-	licenses, money, contracts, accounts, liens, books, records, maps,
176		-	or other property rights and interests conveyed, delivered,
177		-	transferred, or assigned to the district.
178		-	(12) Construct, acquire by purchase or otherwise, operate, lease,
179		-	preserve, and maintain works considered necessary to accomplish
180		-	the purposes of the district's establishment within or outside the
181		-	district and enter into contracts for the operation of works owned,
182		-	leased, or held by another entity, whether public or private.
183		-	(13) Hold, encumber, control, acquire by donation, purchase, or
184		-	condemnation, construct, own, lease as lessee or lessor, use, and
185		-	sell interests in real and personal property or franchises within or
186		-	outside the district for:
187		-	(A) the location or protection of works;
188		-	(B) the relocation of buildings, structures, and improvements
189		-	situated on land required by the district or for any other
190		-	necessary purpose; or
191		-	(C) obtaining or storing material to be used in constructing and
192		-	maintaining the works.
193		-	(14) Upon consent of two-thirds (2/3) of the members of the
194		-	board, merge or combine with another district into a single district
195		-	on terms so that the surviving district:
196		-	(A) is possessed of all rights, franchises, and authority of the
197		-	constituent districts; and
198		-	(B) is subject to all the liabilities, obligations, and duties of
199		-	each of the constituent districts, with all rights of creditors of
200		-	the constituent districts being preserved unimpaired.
201		-	(15) Provide by agreement with another eligible entity for the
202		-	joint construction of works the district is authorized to construct
203		-	if the construction is for the district's own benefit and that of the
204		-	other entity. For this purpose the cooperating entities may jointly
205		-	appropriate land either within or outside their respective borders
206		-	if all subsequent proceedings, actions, powers, liabilities, rights,
207		-	and duties are those set forth by statute.
208		-	HEA 1402 — CC 1 6
209		-	(16) Enter into contracts with a person, an eligible entity, the
210		-	state, or the United States to provide services to the contracting
211		-	party for any of the following:
212		-	(A) The distribution or purification of water.
213		-	(B) The collection or treatment of sanitary sewage.
214		-	(C) The collection, disposal, or recovery of solid waste.
215		-	(17) Make provision for, contract for, or sell the district's
216		-	byproducts or waste.
217		-	(18) Exercise the power of eminent domain, including for
218		-	purposes of siting sewer or water utility infrastructure, but only
219		-	after the district attempts to use existing public rights-of-way or
220		-	easements.
221		-	(19) Remove or change the location of a fence, building, railroad,
222		-	canal, or other structure or improvement located within or outside
223		-	the district. If:
224		-	(A) it is not feasible or economical to move the building,
225		-	structure, or improvement situated in or upon land acquired;
226		-	and
227		-	(B) the cost is determined by the board to be less than that of
228		-	purchase or condemnation;
229		-	the district may acquire land and construct, acquire, or install
230		-	buildings, structures, or improvements similar in purpose to be
231		-	exchanged for the buildings, structures, or improvements under
232		-	contracts entered into between the owner and the district.
233		-	(20) Employ consulting engineers, superintendents, managers,
234		-	and other engineering, construction, and accounting experts,
235		-	attorneys, bond counsel, employees, and agents that are necessary
236		-	for the accomplishment of the district's purpose and fix their
237		-	compensation.
238		-	(21) Procure insurance against loss to the district by reason of
239		-	damages to the district's properties, works, or improvements
240		-	resulting from fire, theft, accident, or other casualty or because of
241		-	the liability of the district for damages to persons or property
242		-	occurring in the operations of the district's works and
243		-	improvements or the conduct of the district's activities.
244		-	(22) Exercise the powers of the district without obtaining the
245		-	consent of other eligible entities. However, the district shall:
246		-	(A) restore or repair all public or private property damaged in
247		-	carrying out the powers of the district and place the property
248		-	in the property's original condition as nearly as practicable; or
249		-	(B) pay adequate compensation for the property.
250		-	(23) Dispose of, by public or private sale or lease, real or personal
251		-	HEA 1402 — CC 1 7
252		-	property determined by the board to be no longer necessary or
253		-	needed for the operation or purposes of the district.
254		-	SECTION 3. IC 16-18-2-317.8, AS ADDED BY P.L.167-2022,
255		-	SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
256		-	JULY 1, 2023]: Sec. 317.8. "Residential onsite sewage system", for
257		-	purposes of IC 16-19-3-27.5, IC 16-19-3-27.7, IC 16-19-3-27.8, and
258		-	IC 16-41-25, has the meaning set forth in IC 16-41-25-0.4.
259		-	SECTION 4. IC 16-19-3-27.5, AS AMENDED BY
	68	+	1 SECTION 1. IC 8-1-1.9-6 IS ADDED TO THE INDIANA CODE
	69	+	2 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
	70	+	3 1, 2023]: Sec. 6. (a) This section applies to a wastewater utility that:
	71	+	4 (1) is not subject to the jurisdiction of the commission for the
	72	+	5 approval of rates and charges; and
	73	+	6 (2) receives wholesale wastewater service from another
	74	+	7 wastewater utility.
	75	+	8 (b) As used in this section, "wastewater utility" means:
	76	+	9 (1) a public utility;
	77	+	10 (2) a municipally owned utility (as defined in IC 8-1-2-l(h))
	78	+	11 that serves fewer than eight thousand (8,000) customers;
	79	+	12 (3) a not-for-profit utility (as defined in IC 8-1-2-125(a));
	80	+	13 (4) a cooperatively owned corporation;
	81	+	14 (5) a conservancy district established under IC 14-33; or
	82	+	15 (6) a regional sewer district established under IC 13-26.
	83	+	16 (c) Before a wastewater utility may:
	84	+	17 (1) disconnect from the wholesale wastewater service
	85	+	EH 1402—LS 7444/DI 150 2
	86	+	1 provided by another wastewater utility; and
	87	+	2 (2) construct a new wastewater treatment plant to serve its
	88	+	3 customers;
	89	+	4 the wastewater utility must obtain the approval of the commission
	90	+	5 of its plan to disconnect from the other wastewater utility's
	91	+	6 wholesale wastewater service and construct a new wastewater
	92	+	7 treatment plant.
	93	+	8 (d) A wastewater utility to which subsection (c) applies must
	94	+	9 submit to the commission as part of the wastewater utility's case in
	95	+	10 chief:
	96	+	11 (1) the current costs incurred by the wastewater utility for
	97	+	12 utility service with the other wastewater utility providing
	98	+	13 wholesale wastewater service;
	99	+	14 (2) the projected future costs to be incurred by the wastewater
	100	+	15 utility for utility service if the other wastewater utility were to
	101	+	16 continue providing wholesale wastewater service; and
	102	+	17 (3) the projected future costs to be incurred by the wastewater
	103	+	18 utility for utility service if the wastewater utility were to
	104	+	19 disconnect from the other wastewater utility providing
	105	+	20 wholesale wastewater service and construct a new wastewater
	106	+	21 treatment plant.
	107	+	22 (e) The commission may approve a wastewater utility's proposal
	108	+	23 under subsection (c) if the commission finds that:
	109	+	24 (1) the disconnection from the wholesale wastewater service
	110	+	25 and the construction of a new wastewater treatment plant is
	111	+	26 reasonable and in the public interest;
	112	+	27 (2) the total rates charged by the wastewater utility for
	113	+	28 wastewater service will not increase as a result of the
	114	+	29 disconnection from the wholesale wastewater service and the
	115	+	30 new wastewater treatment plant construction;
	116	+	31 (3) the wastewater utility has developed an asset management
	117	+	32 program, as defined in guidelines adopted by the Indiana
	118	+	33 finance authority under IC 5-1.2; and
	119	+	34 (4) the wastewater utility has the legal, managerial, technical,
	120	+	35 and financial expertise to construct and manage a new
	121	+	36 wastewater treatment plant.
	122	+	37 (f) In the commission's annual report under IC 8-1-1-14, the
	123	+	38 commission shall include a description of any activity under this
	124	+	39 section.
	125	+	40 SECTION 2. IC 13-26-5-2, AS AMENDED BY P.L.178-2013,
	126	+	41 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	127	+	42 JULY 1, 2023]: Sec. 2. A district may do the following:
	128	+	EH 1402—LS 7444/DI 150 3
	129	+	1 (1) Sue or be sued.
	130	+	2 (2) Make contracts in the exercise of the rights, powers, and
	131	+	3 duties conferred upon the district.
	132	+	4 (3) Adopt and alter a seal and use the seal by causing the seal to
	133	+	5 be impressed, affixed, reproduced, or otherwise used. However,
	134	+	6 the failure to affix a seal does not affect the validity of an
	135	+	7 instrument.
	136	+	8 (4) Adopt, amend, and repeal the following:
	137	+	9 (A) Bylaws for the administration of the district's affairs.
	138	+	10 (B) Rules and regulations for the following:
	139	+	11 (i) The control of the administration and operation of the
	140	+	12 district's service and facilities.
	141	+	13 (ii) The exercise of all of the district's rights of ownership.
	142	+	14 (5) Construct, acquire, lease, operate, or manage works and obtain
	143	+	15 rights, easements, licenses, money, contracts, accounts, liens,
	144	+	16 books, records, maps, or other property, whether real, personal, or
	145	+	17 mixed, of a person or an eligible entity.
	146	+	18 (6) Assume in whole or in part any liability or obligation of:
	147	+	19 (A) a person;
	148	+	20 (B) a nonprofit water, sewage, or solid waste project system;
	149	+	21 or
	150	+	22 (C) an eligible entity;
	151	+	23 including a pledge of part or all of the net revenues of a works to
	152	+	24 the debt service on outstanding bonds of an entity in whole or in
	153	+	25 part in the district and including a right on the part of the district
	154	+	26 to indemnify and protect a contracting party from loss or liability
	155	+	27 by reason of the failure of the district to perform an agreement
	156	+	28 assumed by the district or to act or discharge an obligation.
	157	+	29 (7) Fix, alter, charge, and collect reasonable rates and other
	158	+	30 charges in the area served by the district's facilities to every
	159	+	31 person whose premises are, whether directly or indirectly,
	160	+	32 supplied with water or provided with sewage or solid waste
	161	+	33 services by the facilities for the purpose of providing for the
	162	+	34 following:
	163	+	35 (A) The payment of the expenses of the district.
	164	+	36 (B) The construction, acquisition, improvement, extension,
	165	+	37 repair, maintenance, and operation of the district's facilities
	166	+	38 and properties.
	167	+	39 (C) The payment of principal or interest on the district's
	168	+	40 obligations.
	169	+	41 (D) To fulfill the terms of agreements made with:
	170	+	42 (i) the purchasers or holders of any obligations; or
	171	+	EH 1402—LS 7444/DI 150 4
	172	+	1 (ii) a person or an eligible entity.
	173	+	2 (8) Except as provided in sections 2.5 and 2.6 of this chapter,
	174	+	3 require connection to the district's sewer system of property
	175	+	4 producing sewage or similar waste, and require the
	176	+	5 discontinuance of use of privies, cesspools, septic tanks, and
	177	+	6 similar structures if:
	178	+	7 (A) there is an available sanitary sewer within three hundred
	179	+	8 (300) feet of:
	180	+	9 (i) the property line, if the property is adjacent to a body of
	181	+	10 water, including a lake, river, or reservoir;
	182	+	11 (ii) any part of a subdivision, or land that is divided or
	183	+	12 proposed to be divided into lots, whether contiguous or
	184	+	13 subject to zoning requirements, for the purpose of sale or
	185	+	14 lease as part of a larger common plan of development or
	186	+	15 sale; or
	187	+	16 (iii) for all other properties, the improvement or other
	188	+	17 structure from which the sewage or similar waste is
	189	+	18 discharged;
	190	+	19 (B) the district has given written notice by certified mail to the
	191	+	20 property owner at the address of the property at least ninety
	192	+	21 (90) days before a date for connection to be stated in the notice
	193	+	22 and the notice includes a list of the applicable exemptions
	194	+	23 from connecting to the sewer system available to the
	195	+	24 property owner that are described in IC 13-26-5-2.5; and
	196	+	25 (C) if the property is located outside the district's territory:
	197	+	26 (i) the district has obtained and provided to the property
	198	+	27 owner (along with the notice required by clause (B)) a letter
	199	+	28 of recommendation from the local health department that
	200	+	29 there is a possible threat to the public's health; and
	201	+	30 (ii) if the property is also located within the extraterritorial
	202	+	31 jurisdiction of a municipal sewage works under IC 36-9-23
	203	+	32 or a public sanitation department under IC 36-9-25, the
	204	+	33 municipal works board or department of public sanitation
	205	+	34 has acknowledged in writing that the property is within the
	206	+	35 municipal sewage works or department of public sanitation's
	207	+	36 extraterritorial jurisdiction, but the municipal works board
	208	+	37 or department of public sanitation is unable to provide sewer
	209	+	38 service.
	210	+	39 However, a district may not require the owner of a property
	211	+	40 described in this subdivision to connect to the district's sewer
	212	+	41 system if the property is already connected to a sewer system that
	213	+	42 has received an NPDES permit and has been determined to be
	214	+	EH 1402—LS 7444/DI 150 5
	215	+	1 functioning satisfactorily.
	216	+	2 (9) Provide by ordinance for a reasonable penalty, not to exceed
	217	+	3 one hundred dollars ($100) per day, for failure to connect and also
	218	+	4 apply to the circuit or superior court of the county in which the
	219	+	5 property is located for an order to force connection, with the cost
	220	+	6 of the action, including reasonable attorney's fees of the district,
	221	+	7 to be assessed by the court against the property owner in the
	222	+	8 action.
	223	+	9 (10) Refuse the services of the district's facilities if the rates or
	224	+	10 other charges are not paid by the user.
	225	+	11 (11) Control and supervise all property, works, easements,
	226	+	12 licenses, money, contracts, accounts, liens, books, records, maps,
	227	+	13 or other property rights and interests conveyed, delivered,
	228	+	14 transferred, or assigned to the district.
	229	+	15 (12) Construct, acquire by purchase or otherwise, operate, lease,
	230	+	16 preserve, and maintain works considered necessary to accomplish
	231	+	17 the purposes of the district's establishment within or outside the
	232	+	18 district and enter into contracts for the operation of works owned,
	233	+	19 leased, or held by another entity, whether public or private.
	234	+	20 (13) Hold, encumber, control, acquire by donation, purchase, or
	235	+	21 condemnation, construct, own, lease as lessee or lessor, use, and
	236	+	22 sell interests in real and personal property or franchises within or
	237	+	23 outside the district for:
	238	+	24 (A) the location or protection of works;
	239	+	25 (B) the relocation of buildings, structures, and improvements
	240	+	26 situated on land required by the district or for any other
	241	+	27 necessary purpose; or
	242	+	28 (C) obtaining or storing material to be used in constructing and
	243	+	29 maintaining the works.
	244	+	30 (14) Upon consent of two-thirds (2/3) of the members of the
	245	+	31 board, merge or combine with another district into a single district
	246	+	32 on terms so that the surviving district:
	247	+	33 (A) is possessed of all rights, franchises, and authority of the
	248	+	34 constituent districts; and
	249	+	35 (B) is subject to all the liabilities, obligations, and duties of
	250	+	36 each of the constituent districts, with all rights of creditors of
	251	+	37 the constituent districts being preserved unimpaired.
	252	+	38 (15) Provide by agreement with another eligible entity for the
	253	+	39 joint construction of works the district is authorized to construct
	254	+	40 if the construction is for the district's own benefit and that of the
	255	+	41 other entity. For this purpose the cooperating entities may jointly
	256	+	42 appropriate land either within or outside their respective borders
	257	+	EH 1402—LS 7444/DI 150 6
	258	+	1 if all subsequent proceedings, actions, powers, liabilities, rights,
	259	+	2 and duties are those set forth by statute.
	260	+	3 (16) Enter into contracts with a person, an eligible entity, the
	261	+	4 state, or the United States to provide services to the contracting
	262	+	5 party for any of the following:
	263	+	6 (A) The distribution or purification of water.
	264	+	7 (B) The collection or treatment of sanitary sewage.
	265	+	8 (C) The collection, disposal, or recovery of solid waste.
	266	+	9 (17) Make provision for, contract for, or sell the district's
	267	+	10 byproducts or waste.
	268	+	11 (18) Exercise the power of eminent domain, including for
	269	+	12 purposes of siting sewer or water utility infrastructure, but only
	270	+	13 after the district attempts to use existing public rights-of-way or
	271	+	14 easements.
	272	+	15 (19) Remove or change the location of a fence, building, railroad,
	273	+	16 canal, or other structure or improvement located within or outside
	274	+	17 the district. If:
	275	+	18 (A) it is not feasible or economical to move the building,
	276	+	19 structure, or improvement situated in or upon land acquired;
	277	+	20 and
	278	+	21 (B) the cost is determined by the board to be less than that of
	279	+	22 purchase or condemnation;
	280	+	23 the district may acquire land and construct, acquire, or install
	281	+	24 buildings, structures, or improvements similar in purpose to be
	282	+	25 exchanged for the buildings, structures, or improvements under
	283	+	26 contracts entered into between the owner and the district.
	284	+	27 (20) Employ consulting engineers, superintendents, managers,
	285	+	28 and other engineering, construction, and accounting experts,
	286	+	29 attorneys, bond counsel, employees, and agents that are necessary
	287	+	30 for the accomplishment of the district's purpose and fix their
	288	+	31 compensation.
	289	+	32 (21) Procure insurance against loss to the district by reason of
	290	+	33 damages to the district's properties, works, or improvements
	291	+	34 resulting from fire, theft, accident, or other casualty or because of
	292	+	35 the liability of the district for damages to persons or property
	293	+	36 occurring in the operations of the district's works and
	294	+	37 improvements or the conduct of the district's activities.
	295	+	38 (22) Exercise the powers of the district without obtaining the
	296	+	39 consent of other eligible entities. However, the district shall:
	297	+	40 (A) restore or repair all public or private property damaged in
	298	+	41 carrying out the powers of the district and place the property
	299	+	42 in the property's original condition as nearly as practicable; or
	300	+	EH 1402—LS 7444/DI 150 7
	301	+	1 (B) pay adequate compensation for the property.
	302	+	2 (23) Dispose of, by public or private sale or lease, real or personal
	303	+	3 property determined by the board to be no longer necessary or
	304	+	4 needed for the operation or purposes of the district.
	305	+	5 SECTION 3. IC 16-18-2-317.8, AS ADDED BY P.L.167-2022,
	306	+	6 SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	307	+	7 JANUARY 1, 2023 (RETROACTIVE)]: Sec. 317.8. "Residential
	308	+	8 onsite sewage system", for purposes of IC 16-19-3-27.5,
	309	+	9 IC 16-19-3-27.7, IC 16-19-3-27.8, and IC 16-41-25, has the meaning
	310	+	10 set forth in IC 16-41-25-0.4.
	311	+	11 SECTION 4. IC 16-19-3-27.5, AS AMENDED BY
	312	+	12 P.L.178-2022(ts), SECTION 11, IS AMENDED TO READ AS
	313	+	13 FOLLOWS [EFFECTIVE JULY 1, 2023]: Sec. 27.5. (a) As used in this
	314	+	14 section and section 27.8 of this chapter, "technology new to Indiana"
	315	+	15 (referred to in this section as "TNI") means sewage treatment or
	316	+	16 disposal methods, processes, or equipment that are not described in the
	317	+	17 administrative rules of the state department or the executive board
	318	+	18 concerning residential onsite sewage systems (410 IAC 6-8.3) or
	319	+	19 commercial onsite sewage systems (410 IAC 6-10.1).
	320	+	20 (b) The state department shall establish and maintain a technical
	321	+	21 review panel consisting of individuals with technical or scientific
	322	+	22 knowledge relating to onsite sewage systems. The technical review
	323	+	23 panel: shall:
	324	+	24 (1) shall decide under subsection (f) whether to approve:
	325	+	25 (A) proprietary residential wastewater treatment devices; and
	326	+	26 (B) proprietary commercial wastewater treatment devices;
	327	+	27 for general use in Indiana;
	328	+	28 (2) shall biannually review the performance of residential septic
	329	+	29 systems and commercial onsite sewage systems;
	330	+	30 (3) shall assist the state department in developing standards and
	331	+	31 guidelines for proprietary residential wastewater treatment
	332	+	32 devices and proprietary commercial wastewater treatment
	333	+	33 devices; and
	334	+	34 (4) shall assist the executive board and the state department in
	335	+	35 updating rules adopted under section 4 of this chapter concerning
	336	+	36 residential septic systems and commercial onsite sewage systems;
	337	+	37 and
	338	+	38 (5) may exercise the powers granted by section 27.7 of this
	339	+	39 chapter.
	340	+	40 (c) The technical review panel shall include the following:
	341	+	41 (1) A member of the staff of the state department, who shall serve
	342	+	42 as the chair.
	343	+	EH 1402—LS 7444/DI 150 8
	344	+	1 (2) A local health department environmental health specialist
	345	+	2 appointed by the governor.
	346	+	3 (3) An Indiana professional engineer registered under IC 25-31-1
	347	+	4 representing the American Council of Engineering Companies.
	348	+	5 (4) A representative of the Indiana Builders Association.
	349	+	6 (5) An Indiana registered professional soil scientist (as defined in
	350	+	7 IC 25-31.5-1-6) representing the Indiana Registry of Soil
	351	+	8 Scientists.
	352	+	9 (6) A representative of an Indiana college or university with a
	353	+	10 specialty in engineering, soil science, environmental health, or
	354	+	11 biology appointed by the governor.
	355	+	12 (7) A representative of the Indiana Onsite Wastewater
	356	+	13 Professionals Association.
	357	+	14 (8) An Indiana onsite sewage system contractor appointed by the
	358	+	15 governor.
	359	+	16 (9) A representative of the Indiana State Building and
	360	+	17 Construction Trades Council.
	361	+	18 All members of the technical review panel are voting members.
	362	+	19 (d) In the case of a tie vote of the technical review panel, the
	363	+	20 technical review panel shall, not more than seven (7) days after the day
	364	+	21 of the tie vote:
	365	+	22 (1) contact the applicant by phone call and by mail; and
	366	+	23 (2) request more information or provide an explanation of how the
	367	+	24 applicant can modify the application to make it more complete.
	368	+	25 The technical review panel shall review any new information provided
	369	+	26 by the applicant and vote again on the application not more than thirty
	370	+	27 (30) days after receiving the information.
	371	+	28 (e) The technical review panel shall do the following:
	372	+	29 (1) Receive applications for the approval of TNI for general use
	373	+	30 in:
	374	+	31 (A) residential septic systems under sections 4 and 27 of this
	375	+	32 chapter and IC 16-41-25; and
	376	+	33 (B) commercial onsite sewage systems under sections 4 and 27
	377	+	34 of this chapter and IC 16-19-3.5.
	378	+	35 (2) Meet at least four (4) times per year to review applications
	379	+	36 described in subdivision (1).
	380	+	37 (3) Notify each person who submits an application described in
	381	+	38 subdivision (1):
	382	+	39 (A) that the person's application has been received by the
	383	+	40 technical review panel; and
	384	+	41 (B) of whether the application is complete;
	385	+	42 not later than thirty (30) days after the technical review panel
	386	+	EH 1402—LS 7444/DI 150 9
	387	+	1 receives the application.
	388	+	2 (4) Inform each person who submits an application described in
	389	+	3 subdivision (1) of:
	390	+	4 (A) a tentative decision of the technical review panel; or
	391	+	5 (B) the technical review panel's final decision under
	392	+	6 subsection (f);
	393	+	7 concerning the application not more than ninety (90) days after
	394	+	8 the technical review panel notifies the person under subdivision
	395	+	9 (3) that the panel has received the person's application.
	396	+	10 (f) In response to each application described in subsection (e)(1),
	397	+	11 the technical review panel shall make, and inform the applicant of, one
	398	+	12 (1) of the following final decisions:
	399	+	13 (1) That the TNI to which the application relates is approved for
	400	+	14 general use in Indiana.
	401	+	15 (2) That the TNI to which the application relates is approved for
	402	+	16 use in Indiana with certain conditions, which may include:
	403	+	17 (A) a requirement that the TNI be used initially only in a pilot
	404	+	18 project;
	405	+	19 (B) restrictions on the number or type of installations of the
	406	+	20 TNI;
	407	+	21 (C) sampling and analysis requirements for TNI involving or
	408	+	22 comprising a secondary treatment system;
	409	+	23 (D) requirements relating to training concerning the TNI;
	410	+	24 (E) requirements concerning the operation and maintenance of
	411	+	25 the TNI; or
	412	+	26 (F) other requirements.
	413	+	27 (3) That the TNI to which the application relates is approved on
	414	+	28 a project-by-project basis.
	415	+	29 (4) That the TNI is not approved for use in Indiana, which must
	416	+	30 be accompanied by a statement of the reason for the decision.
	417	+	31 (g) If the technical review panel makes a decision under subsection
	418	+	32 (f)(4) that the TNI is not approved for use in Indiana, the applicant
	419	+	33 may:
	420	+	34 (1) submit a new application to the technical review panel under
	421	+	35 this section; or
	422	+	36 (2) file a petition for review of the technical review panel's
	423	+	37 decision under IC 4-21.5-3.
	424	+	38 (h) If the technical review panel fails to notify a person who submits
	425	+	39 an application of the technical review panel's tentative decision or final
	426	+	40 recommendation within ninety (90) days after receiving the application
	427	+	41 as required by subsection (e)(4), the person who submitted the
	428	+	42 application may use the TNI to which the application relates in a single
	429	+	EH 1402—LS 7444/DI 150 10
	430	+	1 residential septic system or commercial onsite sewage system, as if the
	431	+	2 TNI had been approved only for use in a pilot project.
	432	+	3 (i) The technical review panel shall decide that the TNI to which an
	433	+	4 application relates is approved for general use in Indiana if:
	434	+	5 (1) the TNI has been certified as meeting the NSF/ANSI 40
	435	+	6 Standard;
	436	+	7 (2) a proposed Indiana design and installation manual for the TNI
	437	+	8 is submitted with the permit application; and
	438	+	9 (3) the technical review panel certifies that the proposed Indiana
	439	+	10 design and installation manual meets the vertical and horizontal
	440	+	11 separation, sizing, and soil loading criteria of the state
	441	+	12 department.
	442	+	13 (j) Subsection (k) applies if:
	443	+	14 (1) a particular TNI meets the requirements of NSF/ANSI 40,
	444	+	15 NSF/ANSI 245, or NSF/ANSI 350;
	445	+	16 (2) the proposed Indiana design and installation manual for the
	446	+	17 TNI meets the vertical and horizontal separation, sizing, and soil
	447	+	18 loading criteria of the state department; and
	448	+	19 (3) an Indiana professional engineer registered under IC 25-31-1
	449	+	20 prepares site specific plans for the use of the TNI for a residential
	450	+	21 or commercial application.
	451	+	22 (k) In a case described in subsection (j):
	452	+	23 (1) if the TNI is to be used in a residential application, the site
	453	+	24 specific plans prepared under subsection (j)(3), after being
	454	+	25 submitted to the local health department of the county, city, or
	455	+	26 multiple county unit in which the TNI would be installed, may be
	456	+	27 approved by the local health department within the period set
	457	+	28 forth in IC 16-41-25-1(a); and
	458	+	29 (2) if the TNI is to be used in a commercial application, the site
	459	+	30 specific plans prepared under subsection (j)(3) shall be approved
	460	+	31 by the state department upon submission of the site specific plans.
	461	+	32 (l) A local health department may not refuse an application for a
	462	+	33 permit for the construction or installation of a residential onsite sewage
	463	+	34 system (as defined in IC 16-41-25-0.4) solely because the residential
	464	+	35 onsite sewage system has not been used previously in the jurisdiction
	465	+	36 of the local health department or is unfamiliar to the local health
	466	+	37 department, if either of the following apply:
	467	+	38 (1) The residential onsite sewage system has been approved by
	468	+	39 the technical review panel under this section for general use in
	469	+	40 Indiana.
	470	+	41 (2) The residential onsite sewage system:
	471	+	42 (A) is based on one (1) or more sewage treatment or disposal
	472	+	EH 1402—LS 7444/DI 150 11
	473	+	1 methods or processes; or
	474	+	2 (B) incorporates equipment;
	475	+	3 approved by the technical review panel under this section for
	476	+	4 general use in Indiana.
	477	+	5 SECTION 5. IC 16-19-3-27.7 IS ADDED TO THE INDIANA
	478	+	6 CODE AS A NEW SECTION TO READ AS FOLLOWS
	479	+	7 [EFFECTIVE JULY 1, 2023]: Sec. 27.7. (a) Subject to subsection (b),
	480	+	8 for all rules concerning residential onsite sewage systems, the state
	481	+	9 department shall update:
	482	+	10 (1) all matters incorporated by reference in the rules,
	483	+	11 including all bulletins, standards, and specifications
	484	+	12 incorporated by reference; and
	485	+	13 (2) all industry standard practices reflected in the rules;
	486	+	14 upon the recognition of new bulletins, standards, specifications,
	487	+	15 and industry standard practices that supersede the bulletins,
	488	+	16 standards, specifications, and industry standard practices
	489	+	17 incorporated by reference or otherwise reflected in the rules.
	490	+	18 (b) The technical review panel established under section 27.5(b)
	491	+	19 of this chapter:
	492	+	20 (1) may recognize and notify the state department of:
	493	+	21 (A) new bulletins, standards, and specifications; and
	494	+	22 (B) new industry standard practices;
	495	+	23 for the purposes of subsection (a); and
	496	+	24 (2) must approve updates described in subsection (a) before
	497	+	25 the state department may update the rules concerning
	498	+	26 residential onsite sewage systems under subsection (a).
	499	+	27 (c) Updates by the state department under subsection (a) are
	500	+	28 effective one hundred eighty (180) days after the publication of the
	501	+	29 updates.
	502	+	30 SECTION 6. IC 16-19-3-27.8 IS ADDED TO THE INDIANA
	503	+	31 CODE AS A NEW SECTION TO READ AS FOLLOWS
	504	+	32 [EFFECTIVE JULY 1, 2023]: Sec. 27.8. (a) After December 31,
	505	+	33 2023, a county or city ordinance concerning residential onsite
	506	+	34 sewage systems that:
	507	+	35 (1) would restrict or prohibit the use of technology new to
	508	+	36 Indiana that is approved for general use in Indiana under
	509	+	37 section 27.5 of this chapter; or
	510	+	38 (2) would otherwise vary from the rules concerning
	511	+	39 residential onsite sewage systems, including rules updated
	512	+	40 under section 27.7 of this chapter;
	513	+	41 is subject to this section.
	514	+	42 (b) After adopting an ordinance described in subsection (a), the
	515	+	EH 1402—LS 7444/DI 150 12
	516	+	1 county or city must submit the ordinance to the technical review
	517	+	2 panel established under section 27.5(b) of this chapter, along with:
	518	+	3 (1) a request for approval of the ordinance; and
	519	+	4 (2) a statement of the reasons for the restriction, prohibition,
	520	+	5 or variance.
	521	+	6 (c) The technical review panel shall consider an ordinance
	522	+	7 submitted by a county or city under subsection (b). If the technical
	523	+	8 review panel approves the ordinance by vote of a majority of its
	524	+	9 members at a public meeting, the ordinance becomes effective
	525	+	10 within the county or city.
	526	+	11 (d) An ordinance described in subsection (a) is not effective
	527	+	12 unless it is approved by the technical review panel under this
	528	+	13 section.
	529	+	14 (e) If an ordinance described in subsection (a) was adopted
	530	+	15 before January 1, 2024, the ordinance becomes void and
	531	+	16 unenforceable on January 1, 2024, unless, before January 1, 2024:
	532	+	17 (1) the ordinance is readopted by the legislative body of the
	533	+	18 county or city; and
	534	+	19 (2) after being readopted under subdivision (1), the ordinance
	535	+	20 is:
	536	+	21 (A) submitted to the technical review panel under
	537	+	22 subsection (b); and
	538	+	23 (B) approved by the technical review panel under
	539	+	24 subsection (c).
	540	+	25 SECTION 7. IC 16-41-25-7, AS ADDED BY P.L.167-2022,
	541	+	26 SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	542	+	27 JULY 1, 2023]: Sec. 7. (a) After June 30, 2023, a county, city, or town
	543	+	28 ordinance may not impose adopt requirements, restrictions, or
	544	+	29 conditions concerning the:
	545	+	30 (1) design;
	546	+	31 (2) construction;
	547	+	32 (3) installation;
	548	+	33 (4) location;
	549	+	34 (5) maintenance; or
	550	+	35 (6) operation;
	551	+	36 of a residential onsite sewage system that are more stringent than the
	552	+	37 requirements, restrictions, and conditions of the rule of the state
	553	+	38 department concerning residential onsite sewage systems. After June
	554	+	39 30, 2023, An ordinance that imposes requirements, restrictions, or
	555	+	40 conditions that are more stringent than the requirements, restrictions,
	556	+	41 and conditions of the state department's rule concerning residential
	557	+	42 onsite sewage systems is void and may not be enforced. subject to
	558	+	EH 1402—LS 7444/DI 150 13
	559	+	1 invalidation under IC 16-19-3-27.8(e).
	560	+	2 (b) After June 30, 2023, a local health department may not impose
	561	+	3 adopt requirements, restrictions, or conditions concerning the:
	562	+	4 (1) design;
	563	+	5 (2) construction;
	564	+	6 (3) installation;
	565	+	7 (4) location;
	566	+	8 (5) maintenance; or
	567	+	9 (6) operation;
	568	+	10 of a residential onsite sewage system that are more stringent than the
	569	+	11 requirements, restrictions, and conditions of the rule of the state
	570	+	12 department concerning residential onsite sewage systems. After June
	571	+	13 30, 2023, any requirements, restrictions, or conditions that are imposed
	572	+	14 adopted by a local health department and that are more stringent than
	573	+	15 the requirements, restrictions, and conditions of the state department's
	574	+	16 rule concerning residential onsite sewage systems are void and may not
	575	+	17 be enforced. unenforceable.
	576	+	18 SECTION 8. IC 36-9-23-30, AS AMENDED BY P.L.107-2016,
	577	+	19 SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	578	+	20 JULY 1, 2023]: Sec. 30. (a) Subject to subsection (b) and section 30.1
	579	+	21 of this chapter, a municipality that operates sewage works under this
	580	+	22 chapter or under any statute repealed by IC 19-2-5-30 (repealed
	581	+	23 September 1, 1981) may require:
	582	+	24 (1) connection to its sewer system of any property producing
	583	+	25 sewage or similar waste; and
	584	+	26 (2) discontinuance of the use of privies, cesspools, septic tanks,
	585	+	27 and similar structures.
	586	+	28 (b) A municipality may exercise the powers granted by subsection
	587	+	29 (a) only if:
	588	+	30 (1) there is an available sanitary sewer within three hundred (300)
	589	+	31 feet of the property line of the affected property; and
	590	+	32 (2) it has given notice by certified mail to the property owner at
	591	+	33 the address of the property, at least ninety (90) days before the
	592	+	34 date specified for connection in the notice and the notice
	593	+	35 includes a list of the applicable exemptions from connecting
	594	+	36 to the sewer system available to the property owner that are
	595	+	37 described in IC 36-9-25-15.
	596	+	38 (c) A municipality may establish, enforce, and collect reasonable
	597	+	39 penalties for failure to make a connection under this section.
	598	+	40 (d) A municipality may apply to the circuit or superior court for the
	599	+	41 county in which it is located for an order to require a connection under
	600	+	42 this section. The court shall assess the cost of the action and reasonable
	601	+	EH 1402—LS 7444/DI 150 14
	602	+	1 attorney's fees of the municipality against the property owner in such
	603	+	2 an action.
	604	+	3 SECTION 9. IC 36-9-25-15, AS AMENDED BY P.L.167-2022,
	605	+	4 SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	606	+	5 JULY 1, 2023]: Sec. 15. (a) The board, on its own initiative, whenever
	607	+	6 any territory, by its contour and watershed, or because of the extension
	608	+	7 of sewers by the municipality, is capable of draining sewage into or
	609	+	8 connecting with the sanitary system, may incorporate any territory,
	610	+	9 whether platted or unplatted, into the district by adopting a resolution
	611	+	10 to that effect describing the reason it is to be included. A certified copy
	612	+	11 of the resolution is conclusive evidence in any proceeding that the
	613	+	12 territory described was properly incorporated and constitutes a part of
	614	+	13 the district, subject to this chapter.
	615	+	14 (b) Immediately after the passage of a resolution under subsection
	616	+	15 (a), a notice stating the time and place for a public hearing on the
	617	+	16 resolution shall be published in accordance with IC 5-3-1. By the date
	618	+	17 and time of the hearing any affected person may file in the office of the
	619	+	18 board a written remonstrance to having the person's lands included.
	620	+	19 The board shall either confirm, modify, or rescind the resolution after
	621	+	20 the hearing. An appeal may be taken from the decision by one (1) or
	622	+	21 more persons considering themselves aggrieved or injuriously affected,
	623	+	22 as long as those appealing have filed written remonstrances, as
	624	+	23 provided in this subsection, by filing their complaint within thirty (30)
	625	+	24 days after the final decision of the board. The appeal shall be governed
	626	+	25 by IC 34-13-6.
	627	+	26 (c) If the court is satisfied upon hearing an appeal under subsection
	628	+	27 (b):
	629	+	28 (1) that less than seventy-five percent (75%) of the persons
	630	+	29 owning property in the territory sought to be incorporated in the
	631	+	30 district have remonstrated; and
	632	+	31 (2) that the incorporation of the territory into the district will be
	633	+	32 for its interest and will cause no manifest injury to the persons
	634	+	33 owning property in the territory;
	635	+	34 the court shall so find and the incorporation shall be ordered. If the
	636	+	35 court is satisfied that seventy-five percent (75%) or more of the persons
	637	+	36 owning property in the territory sought to be incorporated have
	638	+	37 remonstrated, then the incorporation may not be ordered unless the
	639	+	38 court further finds from the evidence that unless it is incorporated, the
	640	+	39 health and welfare of residents of the territory or of the adjoining lands
	641	+	40 will be materially affected and that the safety and welfare of the
	642	+	41 inhabitants and property of other persons and property will be
	643	+	42 endangered.
	644	+	EH 1402—LS 7444/DI 150 15
	645	+	1 (d) Pending an appeal under subsection (b) and during the time
	646	+	2 within which the appeal may be taken, the territory sought to be
	647	+	3 incorporated is not a part of the district. Upon the determination of the
	648	+	4 appeal, the judgment must particularly describe the resolution upon
	649	+	5 which the appeal is based. The clerk of the court shall deliver a
	650	+	6 certified copy of the judgment to the secretary of the board, who shall
	651	+	7 record it in the minute book of the board and make a cross-reference to
	652	+	8 the page upon the margin where the original resolution was recorded.
	653	+	9 If a decision is adverse to an incorporation, further proceedings may
	654	+	10 not be taken by the board to incorporate that territory within the district
	655	+	11 for a period of one (1) year after the rendition of the judgment.
	656	+	12 (e) Except as provided in subsection (n) and subject to subsections
	657	+	13 (f) through (m), a property owner whose property is incorporated into
	658	+	14 a district under this section or section 14(b) of this chapter, regardless
	659	+	15 of whether the property owner has filed a written remonstrance or an
	660	+	16 appeal with respect to the incorporation, is exempt from a requirement
	661	+	17 to connect to the district's sewer system and to discontinue use of a
	662	+	18 sewage disposal system on the property owner's property if all of the
	663	+	19 following conditions are met:
	664	+	20 (1) The property owner's sewage disposal system is a septic tank
	665	+	21 soil absorption system (as defined in IC 13-11-2-199.5) or
	666	+	22 constructed wetland septic system (as defined in
	667	+	23 IC 36-9-23-30.1(a)) that:
	668	+	24 (A) was new at the time of installation; and
	669	+	25 (B) was approved in writing by the local health department,
	670	+	26 the department's designee, or a qualified inspector.
	671	+	27 (2) The property owner, at the property owner's own expense,
	672	+	28 obtains a written determination from the local health department
	673	+	29 or the department's designee that the property owner's sewage
	674	+	30 disposal system is not failing. The local health department or the
	675	+	31 department's designee shall provide the owner with a written
	676	+	32 determination not later than sixty (60) days after receipt of the
	677	+	33 owner's request. If the local health department or the department's
	678	+	34 designee fails to provide a written determination within the time
	679	+	35 set forth in this subdivision, the owner, at the owner's expense,
	680	+	36 may obtain a written determination from a qualified inspector. If
	681	+	37 the local health department or the department's designee
	682	+	38 determines that the sewage disposal system is failing, the property
	683	+	39 owner may appeal the determination to the board of the local
	684	+	40 health department. The decision of the board of the local health
	685	+	41 department is final and binding.
	686	+	42 (3) The property owner provides the board with:
	687	+	EH 1402—LS 7444/DI 150 16
	688	+	1 (A) a written notification of potential qualification for the
	689	+	2 exemption, as described in subsection (h); and
	690	+	3 (B) the written determination described in subdivision (2);
	691	+	4 within the time limits set forth in subsection (h).
	692	+	5 (f) If the property owner, within the time allowed under subsection
	693	+	6 (h), notifies the board in writing of the property owner's potential
	694	+	7 qualification for the exemption, the board shall, until the property
	695	+	8 owner's eligibility for the exemption is determined, suspend the
	696	+	9 requirement that the property owner discontinue use of the property
	697	+	10 owner's sewage disposal system and connect to the district's sewer
	698	+	11 system.
	699	+	12 (g) A property owner who qualifies for the exemption provided
	700	+	13 under this section may not be required to connect to the district's sewer
	701	+	14 system for a period of ten (10) years beginning on the date of the
	702	+	15 written determination of the local health department, the department's
	703	+	16 designee, or a qualified inspector under subsection (e)(2) that the
	704	+	17 property owner's sewage disposal system is not failing. A property
	705	+	18 owner may apply for two (2) five (5) year extensions of the exemption
	706	+	19 provided under this section by following the procedures set forth in this
	707	+	20 section. If ownership of an exempt property is transferred during a
	708	+	21 valid exemption period, including during an extension of an initial
	709	+	22 exemption:
	710	+	23 (1) the exemption applies to the subsequent owner of the property
	711	+	24 for the remainder of the exemption period during which the
	712	+	25 transfer occurred; and
	713	+	26 (2) the subsequent owner may apply for any remaining
	714	+	27 extensions.
	715	+	28 However, the total period during which a property may be exempt from
	716	+	29 the requirement to connect to a district's sewer system under this
	717	+	30 section may not exceed twenty (20) years, regardless of ownership of
	718	+	31 the property.
	719	+	32 (h) To qualify for an exemption under this section, a property owner
	720	+	33 must:
	721	+	34 (1) not later than sixty (60) days after being notified of the
	722	+	35 requirement to connect to the district's sewer system, notify the
	723	+	36 board in writing that the property owner qualifies for an
	724	+	37 exemption under this section; and
	725	+	38 (2) not later than one hundred twenty (120) days after the board
	726	+	39 receives the written notice provided under subdivision (1),
	727	+	40 provide the board with the written determination required under
	728	+	41 subsection (e)(2).
	729	+	42 (i) When a property owner who qualifies for an exemption under
	730	+	EH 1402—LS 7444/DI 150 17
	731	+	1 this section subsequently discontinues use of the property owner's
	732	+	2 sewage disposal system and connects to the district's sewer system, the
	733	+	3 property owner may be required to pay only the following to connect
	734	+	4 to the sewer system:
	735	+	5 (1) The connection fee the property owner would have paid if the
	736	+	6 property owner connected to the sewer system on the first date the
	737	+	7 property owner could have connected to the sewer system.
	738	+	8 (2) Any additional costs:
	739	+	9 (A) considered necessary by; and
	740	+	10 (B) supported by documentary evidence provided by;
	741	+	11 the board.
	742	+	12 (j) A property owner who connects to a district's sewer system may
	743	+	13 provide, at the owner's expense, labor, equipment, materials, or any
	744	+	14 combination of labor, equipment, and materials from any source to
	745	+	15 accomplish the connection to the sewer system, subject to inspection
	746	+	16 and approval by the board or a designee of the board.
	747	+	17 (k) This section does not affect the authority of the state Indiana
	748	+	18 department of health, a local health department, or a county health
	749	+	19 officer with respect to a sewage disposal system.
	750	+	20 (l) For purposes of this section, a sewage disposal system is "failing"
	751	+	21 if one (1) or more of the following apply:
	752	+	22 (1) The system refuses to accept sewage at the rate of design
	753	+	23 application and interferes with the normal use of plumbing
	754	+	24 fixtures.
	755	+	25 (2) Effluent discharge exceeds the absorptive capacity of the soil
	756	+	26 into which the system discharges, resulting in ponding, seepage,
	757	+	27 or other discharge of the effluent to the ground surface or to
	758	+	28 surface waters.
	759	+	29 (3) Effluent discharged from the system contaminates a potable
	760	+	30 water supply, ground water, or surface waters.
	761	+	31 (m) As used in this section, "qualified inspector" means any of the
	762	+	32 following:
	763	+	33 (1) An employee of a local health department who is designated
	764	+	34 by the local health department as having sufficient knowledge of
	765	+	35 onsite sewage systems to determine if an onsite sewage system is
	766	+	36 failing.
	767	+	37 (2) An individual who is certified by the Indiana Onsite
	768	+	38 Wastewater Professionals Association as an onsite sewage system
	769	+	39 installer or inspector.
	770	+	40 (3) An individual listed by the state Indiana department of health
	771	+	41 or a local health department with jurisdiction over the service area
	772	+	42 of the property inspected as having sufficient knowledge of onsite
	773	+	EH 1402—LS 7444/DI 150 18
	774	+	1 sewage systems to determine if an onsite sewage system is failing.
	775	+	2 (n) Subsections (e) through (i) do not apply to a property owner
	776	+	3 whose property is incorporated into a district under this section or
	777	+	4 section 14(b) of this chapter if:
	778	+	5 (1) the district has received approval from the Indiana finance
	779	+	6 authority before January 1, 2022, of a preliminary engineering
	780	+	7 report:
	781	+	8 (A) for a project to construct the sewer line to which the
	782	+	9 property owner's property is being required to connect; and
	783	+	10 (B) in connection with funding from the wastewater or
	784	+	11 drinking water revolving loan program under IC 5-1.2-10; and
	785	+	12 (2) the timing and requirements for connection to the district's
	786	+	13 sewer system are the same for all property owners being required
	787	+	14 to connect to the district's sewer system under the terms of the
	788	+	15 project.
	789	+	16 (o) Immediately after the adoption of a resolution under
	790	+	17 subsection (a), and following the completion of any appeals under
	791	+	18 subsections (b) and (c), the board shall do the following:
	792	+	19 (1) Notify any impacted property owners of the sewer project
	793	+	20 within three hundred (300) feet of the property line.
	794	+	21 (2) Give notice by certified mail to the property owner at the
	795	+	22 address of the property at least ninety (90) days before the
	796	+	23 date specified for mandatory connection in the notice.
	797	+	24 (3) Give notice by certified mail to the property owner at the
	798	+	25 address of the property of the applicable exemptions from
	799	+	26 connecting to the sewer system available to the property
	800	+	27 owner that are described in subsection (g) at least ninety (90)
	801	+	28 days before the date specified for connection in the notice.
	802	+	29 SECTION 10. An emergency is declared for this act.
	803	+	EH 1402—LS 7444/DI 150 19
	804	+	COMMITTEE REPORT
	805	+	Mr. Speaker: Your Committee on Environmental Affairs, to which
	806	+	was referred House Bill 1402, has had the same under consideration
	807	+	and begs leave to report the same back to the House with the
	808	+	recommendation that said bill be amended as follows:
	809	+	Replace the effective date in SECTION 3 with "[EFFECTIVE
	810	+	JANUARY 1, 2023 (RETROACTIVE)]".
	811	+	Page 5, delete lines 33 through 37.
	812	+	Page 5, line 41, delete "IC 16-19-3-27.8" and insert "IC
	813	+	16-19-3-27.5".
	814	+	Delete page 6.
	815	+	Page 7, delete lines 1 through 26, begin a new paragraph and insert:
	816	+	"SECTION 3. IC 16-19-3-27.5, AS AMENDED BY
260	817		P.L.178-2022(ts), SECTION 11, IS AMENDED TO READ AS
261		-	FOLLOWS [EFFECTIVE ~~JULY~~ 1, 2023]: ~~Sec. 27.5. (a) As used in this~~
262		-	~~section and section~~ 27.~~8 of~~ this ~~chapter~~, "technology new to Indiana"
	818	+	FOLLOWS [EFFECTIVE JANUARY 1, 2023 (RETROACTIVE)]:
	819	+	Sec. 27.5. (a) As used in this section, "technology new to Indiana"
263	820		(referred to in this section as "TNI") means sewage treatment or
264	821		disposal methods, processes, or equipment that are not described in the
265		-	administrative rules of the state department or the executive ~~board~~
266		-	concerning residential onsite sewage systems (410 IAC 6-8.3) or
267		-	commercial onsite sewage systems (410 IAC 6-10.1).
	822	+	Indiana administrative rules of the state department or the executive
	823	+	board concerning residential onsite sewage systems (410 IAC 6-8.3) or
	824	+	commercial onsite sewage systems. (410 IAC 6-10.1).
268	825		(b) The state department shall establish and maintain a technical
269	826		review panel consisting of individuals with technical or scientific
270	827		knowledge relating to onsite sewage systems. The technical review
271		-	panel: shall:
272		-	(1) ~~shall~~ decide under subsection (f) whether to approve:
	828	+	panel shall:
	829	+	(1) decide under subsection (f) whether to approve:
273	830		(A) proprietary residential wastewater treatment devices; and
274	831		(B) proprietary commercial wastewater treatment devices;
275	832		for general use in Indiana;
276		-	(2) ~~shall~~ biannually review the performance of residential ~~onsite~~
277		-	~~sewage septic~~ systems and commercial onsite sewage systems;
278		-	(3) ~~shall~~ assist the state department in developing standards ~~and~~
279		-	guidelines for proprietary residential wastewater treatment
	833	+	(2) biannually review the performance of residential septic
	834	+	systems and commercial onsite sewage systems;
	835	+	(3) assist the state department in developing develop standards
	836	+	and guidelines for proprietary residential wastewater treatment
280	837		devices and proprietary commercial wastewater treatment
281	838		devices; and
282		-	(4) shall assist the executive board and the state department in
283		-	updating rules adopted under section 4 of this chapter concerning
284		-	residential onsite sewage septic systems and commercial onsite
285		-	sewage systems; and
286		-	(5) may exercise the powers granted by section 27.7 of this
287		-	chapter.
	839	+	(4) assist the executive board and the state department in updating
	840	+	update rules adopted under section 4 of this chapter concerning
	841	+	residential septic systems and assist the executive board and the
	842	+	state department in updating rules adopted under section 4 of
	843	+	this chapter concerning commercial onsite sewage systems.
288	844		(c) The technical review panel shall include the following:
	845	+	EH 1402—LS 7444/DI 150 20
289	846		(1) A member of the staff of the state department, who shall serve
290	847		as the chair.
291	848		(2) A local health department environmental health specialist
292	849		appointed by the governor.
293	850		(3) An Indiana professional engineer registered under IC 25-31-1
294		-	HEA 1402 — CC 1 8
295	851		representing the American Council of Engineering Companies.
296	852		(4) A representative of the Indiana Builders Association.
297	853		(5) An Indiana registered professional soil scientist (as defined in
298	854		IC 25-31.5-1-6) representing the Indiana Registry of Soil
299	855		Scientists.
300	856		(6) A representative of an Indiana college or university with a
301	857		specialty in engineering, soil science, environmental health, or
302	858		biology appointed by the governor.
303	859		(7) A representative of the Indiana Onsite Wastewater
304	860		Professionals Association.
305	861		(8) An Indiana onsite sewage system contractor appointed by the
306	862		governor.
307	863		(9) A representative of the Indiana State Building and
308	864		Construction Trades Council.
309	865		All members of the technical review panel are voting members.
310	866		(d) In the case of a tie vote of the technical review panel, the
311	867		technical review panel shall, not more than seven (7) days after the day
312	868		of the tie vote:
313	869		(1) contact the applicant by phone call and by mail; and
314	870		(2) request more information or provide an explanation of how the
315	871		applicant can modify the application to make it more complete.
316	872		The technical review panel shall review any new information provided
317	873		by the applicant and vote again on the application not more than thirty
318	874		(30) days after receiving the information.
319	875		(e) The technical review panel shall do the following:
320	876		(1) Receive applications for the approval of TNI for general use
321	877		in:
322		-	(A) residential ~~onsite sewage~~ septic systems under sections 4
323		-	~~and 27 of this~~ chapter and IC 16-41-25; and
	878	+	(A) residential septic systems under sections 4 and 27 of this
	879	+	chapter and IC 16-41-25; and
324	880		(B) commercial onsite sewage systems under sections 4 and 27
325	881		of this chapter and IC 16-19-3.5.
326	882		(2) Meet at least four (4) times per year to review applications
327	883		described in subdivision (1).
328	884		(3) Notify each person who submits an application described in
329	885		subdivision (1):
330	886		(A) that the person's application has been received by the
331	887		technical review panel; and
	888	+	EH 1402—LS 7444/DI 150 21
332	889		(B) of whether the application is complete;
333	890		not later than thirty (30) days after the technical review panel
334	891		receives the application.
335	892		(4) Inform each person who submits an application described in
336	893		subdivision (1) of:
337		-	HEA 1402 — CC 1 9
338	894		(A) a tentative decision of the technical review panel; or
339	895		(B) the technical review panel's final decision under
340	896		subsection (f);
341	897		concerning the application not more than ninety (90) days after
342	898		the technical review panel notifies the person under subdivision
343	899		(3) that the panel has received the person's application.
344	900		(f) In response to each application described in subsection (e)(1),
345	901		the technical review panel shall make, and inform the applicant of, one
346	902		(1) of the following final decisions:
347	903		(1) That the TNI to which the application relates is approved for
348	904		general use in Indiana.
349	905		(2) That the TNI to which the application relates is approved for
350	906		use in Indiana with certain conditions, which may include:
351	907		(A) a requirement that the TNI be used initially only in a pilot
352	908		project;
353	909		(B) restrictions on the number or type of installations of the
354	910		TNI;
355	911		(C) sampling and analysis requirements for TNI involving or
356	912		comprising a secondary treatment system;
357	913		(D) requirements relating to training concerning the TNI;
358	914		(E) requirements concerning the operation and maintenance of
359	915		the TNI; or
360	916		(F) other requirements.
361	917		(3) That the TNI to which the application relates is approved on
362	918		a project-by-project basis.
363	919		(4) That the TNI is not approved for use in Indiana, which must
364	920		be accompanied by a statement of the reason for the decision.
365	921		(g) If the technical review panel makes a decision under subsection
366	922		(f)(4) that the TNI is not approved for use in Indiana, the applicant
367	923		may:
368	924		(1) submit a new application to the technical review panel under
369	925		this section; or
370	926		(2) file a petition for review of the technical review panel's
371	927		decision under IC 4-21.5-3.
372	928		(h) If the technical review panel fails to notify a person who submits
373	929		an application of the technical review panel's tentative decision or final
374	930		recommendation within ninety (90) days after receiving the application
	931	+	EH 1402—LS 7444/DI 150 22
375	932		as required by subsection (e)(4), the person who submitted the
376	933		application may use the TNI to which the application relates in a single
377		-	residential ~~onsite sewage~~ septic system or commercial onsite sewage
378		-	~~system, as if the~~ TNI had been approved only for use in a pilot project.
	934	+	residential septic system or commercial onsite sewage system, as if the
	935	+	TNI had been approved only for use in a pilot project.
379	936		(i) The technical review panel shall decide that the TNI to which an
380		-	HEA 1402 — CC 1 10
381	937		application relates is approved for general use in Indiana if:
382	938		(1) the TNI has been certified as meeting the NSF/ANSI 40
383	939		Standard;
384	940		(2) a proposed Indiana design and installation manual for the TNI
385	941		is submitted with the permit application; and
386	942		(3) the technical review panel certifies that the proposed Indiana
387	943		design and installation manual meets the vertical and horizontal
388	944		separation, sizing, and soil loading criteria of the state
389	945		department.
390	946		(j) Subsection (k) applies if:
391	947		(1) a particular TNI meets the requirements of NSF/ANSI 40,
392	948		NSF/ANSI 245, or NSF/ANSI 350;
393	949		(2) the proposed Indiana design and installation manual for the
394	950		TNI meets the vertical and horizontal separation, sizing, and soil
395	951		loading criteria of the state department; and
396	952		(3) an Indiana professional engineer registered under IC 25-31-1
397	953		prepares site specific plans for the use of the TNI for a residential
398	954		or commercial application.
399	955		(k) In a case described in subsection (j):
400	956		(1) if the TNI is to be used in a residential application, the site
401	957		specific plans prepared under subsection (j)(3), after being
402	958		submitted to the local health department of the county, city, or
403	959		multiple county unit in which the TNI would be installed, may be
404	960		approved by the local health department within the period set
405	961		forth in IC 16-41-25-1(a); and
406	962		(2) if the TNI is to be used in a commercial application, the site
407	963		specific plans prepared under subsection (j)(3) shall be approved
408	964		by the state department upon submission of the site specific plans.
409	965		(l) A local health department may not refuse an application for a
410	966		permit for the construction or installation of a residential onsite sewage
411	967		system (as defined in IC 16-41-25-0.4) solely because the residential
412	968		onsite sewage system has not been used previously in the jurisdiction
413	969		of the local health department or is unfamiliar to the local health
414	970		department, if either of the following apply:
415	971		(1) The residential onsite sewage system has been approved by
416	972		the technical review panel under this section for general use in
417	973		Indiana.
	974	+	EH 1402—LS 7444/DI 150 23
418	975		(2) The residential onsite sewage system:
419	976		(A) is based on one (1) or more sewage treatment or disposal
420	977		methods or processes; or
421	978		(B) incorporates equipment;
422	979		approved by the technical review panel under this section for
423		-	HEA 1402 — CC 1 11
424	980		general use in Indiana.
425		-	SECTION 5. IC 16-19-3-27.7 IS ADDED TO THE INDIANA
	981	+	(m) 410 IAC 6-8.3 concerning residential onsite sewage systems,
	982	+	as adopted by the state department and in effect before January 1,
	983	+	2023, is considered, after December 31, 2023, to be a rule of the
	984	+	technical review panel. The technical review panel shall:
	985	+	(1) review the contents of 410 IAC 6-8.3; and
	986	+	(2) adopt amendments to 410 IAC 6-8.3 under IC 4-22-2 to
	987	+	recognize and authorize the use in Indiana:
	988	+	(A) of residential onsite sewage system TNI that has been
	989	+	approved by the technical review panel:
	990	+	(i) for general use in Indiana; or
	991	+	(ii) for use in Indiana with certain conditions;
	992	+	under this section; and
	993	+	(B) of other new and technically advanced residential
	994	+	onsite sewage systems and technology that will potentially
	995	+	provide effective and sanitary solutions to residential
	996	+	sewage treatment and disposal problems.".
	997	+	Page 12, after line 37, begin a new paragraph and insert:
	998	+	"SECTION 5. An emergency is declared for this act.".
	999	+	Renumber all SECTIONS consecutively.
	1000	+	and when so amended that said bill do pass.
	1001	+	(Reference is to HB 1402 as introduced.)
	1002	+	MORRISON
	1003	+	Committee Vote: yeas 12, nays 0.
	1004	+	_____
	1005	+	COMMITTEE REPORT
	1006	+	Madam President: The Senate Committee on Environmental Affairs,
	1007	+	to which was referred House Bill No. 1402, has had the same under
	1008	+	consideration and begs leave to report the same back to the Senate with
	1009	+	the recommendation that said bill be AMENDED as follows:
	1010	+	Page 1, between the enacting clause and line 1, begin a new
	1011	+	paragraph and insert:
	1012	+	EH 1402—LS 7444/DI 150 24
	1013	+	"SECTION 1. IC 8-1-1.9-6 IS ADDED TO THE INDIANA CODE
	1014	+	AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
	1015	+	1, 2023]: Sec. 6. (a) This section applies to a wastewater utility that:
	1016	+	(1) is not subject to the jurisdiction of the commission for the
	1017	+	approval of rates and charges; and
	1018	+	(2) receives wholesale wastewater service from another
	1019	+	wastewater utility.
	1020	+	(b) As used in this section, "wastewater utility" means:
	1021	+	(1) a public utility;
	1022	+	(2) a municipally owned utility (as defined in IC 8-1-2-l(h))
	1023	+	that serves fewer than eight thousand (8,000) customers;
	1024	+	(3) a not-for-profit utility (as defined in IC 8-1-2-125(a));
	1025	+	(4) a cooperatively owned corporation;
	1026	+	(5) a conservancy district established under IC 14-33; or
	1027	+	(6) a regional sewer district established under IC 13-26.
	1028	+	(c) Before a wastewater utility may:
	1029	+	(1) disconnect from the wholesale wastewater service
	1030	+	provided by another wastewater utility; and
	1031	+	(2) construct a new wastewater treatment plant to serve its
	1032	+	customers;
	1033	+	the wastewater utility must obtain the approval of the commission
	1034	+	of its plan to disconnect from the other wastewater utility's
	1035	+	wholesale wastewater service and construct a new wastewater
	1036	+	treatment plant.
	1037	+	(d) A wastewater utility to which subsection (c) applies must
	1038	+	submit to the commission as part of the wastewater utility's case in
	1039	+	chief:
	1040	+	(1) the current costs incurred by the wastewater utility for
	1041	+	utility service with the other wastewater utility providing
	1042	+	wholesale wastewater service;
	1043	+	(2) the projected future costs to be incurred by the wastewater
	1044	+	utility for utility service if the other wastewater utility were to
	1045	+	continue providing wholesale wastewater service; and
	1046	+	(3) the projected future costs to be incurred by the wastewater
	1047	+	utility for utility service if the wastewater utility were to
	1048	+	disconnect from the other wastewater utility providing
	1049	+	wholesale wastewater service and construct a new wastewater
	1050	+	treatment plant.
	1051	+	(e) The commission may approve a wastewater utility's proposal
	1052	+	under subsection (c) if the commission finds that:
	1053	+	(1) the disconnection from the wholesale wastewater service
	1054	+	and the construction of a new wastewater treatment plant is
	1055	+	EH 1402—LS 7444/DI 150 25
	1056	+	reasonable and in the public interest;
	1057	+	(2) the total rates charged by the wastewater utility for
	1058	+	wastewater service will not increase as a result of the
	1059	+	disconnection from the wholesale wastewater service and the
	1060	+	new wastewater treatment plant construction;
	1061	+	(3) the wastewater utility has developed an asset management
	1062	+	program, as defined in guidelines adopted by the Indiana
	1063	+	finance authority under IC 5-1.2; and
	1064	+	(4) the wastewater utility has the legal, managerial, technical,
	1065	+	and financial expertise to construct and manage a new
	1066	+	wastewater treatment plant.
	1067	+	(f) In the commission's annual report under IC 8-1-1-14, the
	1068	+	commission shall include a description of any activity under this
	1069	+	section.".
	1070	+	Page 5, line 36, delete "IC 16-19-3-27.5" and insert "IC
	1071	+	16-19-3-27.5, IC 16-19-3-27.7, IC 16-19-3-27.8,".
	1072	+	Page 5, delete lines 38 through 42.
	1073	+	Delete pages 6 through 9.
	1074	+	Page 10, delete lines 1 through 4, begin a new paragraph and insert:
	1075	+	"SECTION 3. IC 16-19-3-27.5, AS AMENDED BY
	1076	+	P.L.178-2022(ts), SECTION 11, IS AMENDED TO READ AS
	1077	+	FOLLOWS [EFFECTIVE JULY 1, 2023]: Sec. 27.5. (a) As used in this
	1078	+	section and section 27.8 of this chapter, "technology new to Indiana"
	1079	+	(referred to in this section as "TNI") means sewage treatment or
	1080	+	disposal methods, processes, or equipment that are not described in the
	1081	+	administrative rules of the state department or the executive board
	1082	+	concerning residential onsite sewage systems (410 IAC 6-8.3) or
	1083	+	commercial onsite sewage systems (410 IAC 6-10.1).
	1084	+	(b) The state department shall establish and maintain a technical
	1085	+	review panel consisting of individuals with technical or scientific
	1086	+	knowledge relating to onsite sewage systems. The technical review
	1087	+	panel: shall:
	1088	+	(1) shall decide under subsection (f) whether to approve:
	1089	+	(A) proprietary residential wastewater treatment devices; and
	1090	+	(B) proprietary commercial wastewater treatment devices;
	1091	+	for general use in Indiana;
	1092	+	(2) shall biannually review the performance of residential septic
	1093	+	systems and commercial onsite sewage systems;
	1094	+	(3) shall assist the state department in developing standards and
	1095	+	guidelines for proprietary residential wastewater treatment
	1096	+	devices and proprietary commercial wastewater treatment
	1097	+	devices; and
	1098	+	EH 1402—LS 7444/DI 150 26
	1099	+	(4) shall assist the executive board and the state department in
	1100	+	updating rules adopted under section 4 of this chapter concerning
	1101	+	residential septic systems and commercial onsite sewage systems;
	1102	+	and
	1103	+	(5) may exercise the powers granted by section 27.7 of this
	1104	+	chapter.
	1105	+	(c) The technical review panel shall include the following:
	1106	+	(1) A member of the staff of the state department, who shall serve
	1107	+	as the chair.
	1108	+	(2) A local health department environmental health specialist
	1109	+	appointed by the governor.
	1110	+	(3) An Indiana professional engineer registered under IC 25-31-1
	1111	+	representing the American Council of Engineering Companies.
	1112	+	(4) A representative of the Indiana Builders Association.
	1113	+	(5) An Indiana registered professional soil scientist (as defined in
	1114	+	IC 25-31.5-1-6) representing the Indiana Registry of Soil
	1115	+	Scientists.
	1116	+	(6) A representative of an Indiana college or university with a
	1117	+	specialty in engineering, soil science, environmental health, or
	1118	+	biology appointed by the governor.
	1119	+	(7) A representative of the Indiana Onsite Wastewater
	1120	+	Professionals Association.
	1121	+	(8) An Indiana onsite sewage system contractor appointed by the
	1122	+	governor.
	1123	+	(9) A representative of the Indiana State Building and
	1124	+	Construction Trades Council.
	1125	+	All members of the technical review panel are voting members.
	1126	+	(d) In the case of a tie vote of the technical review panel, the
	1127	+	technical review panel shall, not more than seven (7) days after the day
	1128	+	of the tie vote:
	1129	+	(1) contact the applicant by phone call and by mail; and
	1130	+	(2) request more information or provide an explanation of how the
	1131	+	applicant can modify the application to make it more complete.
	1132	+	The technical review panel shall review any new information provided
	1133	+	by the applicant and vote again on the application not more than thirty
	1134	+	(30) days after receiving the information.
	1135	+	(e) The technical review panel shall do the following:
	1136	+	(1) Receive applications for the approval of TNI for general use
	1137	+	in:
	1138	+	(A) residential septic systems under sections 4 and 27 of this
	1139	+	chapter and IC 16-41-25; and
	1140	+	(B) commercial onsite sewage systems under sections 4 and 27
	1141	+	EH 1402—LS 7444/DI 150 27
	1142	+	of this chapter and IC 16-19-3.5.
	1143	+	(2) Meet at least four (4) times per year to review applications
	1144	+	described in subdivision (1).
	1145	+	(3) Notify each person who submits an application described in
	1146	+	subdivision (1):
	1147	+	(A) that the person's application has been received by the
	1148	+	technical review panel; and
	1149	+	(B) of whether the application is complete;
	1150	+	not later than thirty (30) days after the technical review panel
	1151	+	receives the application.
	1152	+	(4) Inform each person who submits an application described in
	1153	+	subdivision (1) of:
	1154	+	(A) a tentative decision of the technical review panel; or
	1155	+	(B) the technical review panel's final decision under
	1156	+	subsection (f);
	1157	+	concerning the application not more than ninety (90) days after
	1158	+	the technical review panel notifies the person under subdivision
	1159	+	(3) that the panel has received the person's application.
	1160	+	(f) In response to each application described in subsection (e)(1),
	1161	+	the technical review panel shall make, and inform the applicant of, one
	1162	+	(1) of the following final decisions:
	1163	+	(1) That the TNI to which the application relates is approved for
	1164	+	general use in Indiana.
	1165	+	(2) That the TNI to which the application relates is approved for
	1166	+	use in Indiana with certain conditions, which may include:
	1167	+	(A) a requirement that the TNI be used initially only in a pilot
	1168	+	project;
	1169	+	(B) restrictions on the number or type of installations of the
	1170	+	TNI;
	1171	+	(C) sampling and analysis requirements for TNI involving or
	1172	+	comprising a secondary treatment system;
	1173	+	(D) requirements relating to training concerning the TNI;
	1174	+	(E) requirements concerning the operation and maintenance of
	1175	+	the TNI; or
	1176	+	(F) other requirements.
	1177	+	(3) That the TNI to which the application relates is approved on
	1178	+	a project-by-project basis.
	1179	+	(4) That the TNI is not approved for use in Indiana, which must
	1180	+	be accompanied by a statement of the reason for the decision.
	1181	+	(g) If the technical review panel makes a decision under subsection
	1182	+	(f)(4) that the TNI is not approved for use in Indiana, the applicant
	1183	+	may:
	1184	+	EH 1402—LS 7444/DI 150 28
	1185	+	(1) submit a new application to the technical review panel under
	1186	+	this section; or
	1187	+	(2) file a petition for review of the technical review panel's
	1188	+	decision under IC 4-21.5-3.
	1189	+	(h) If the technical review panel fails to notify a person who submits
	1190	+	an application of the technical review panel's tentative decision or final
	1191	+	recommendation within ninety (90) days after receiving the application
	1192	+	as required by subsection (e)(4), the person who submitted the
	1193	+	application may use the TNI to which the application relates in a single
	1194	+	residential septic system or commercial onsite sewage system, as if the
	1195	+	TNI had been approved only for use in a pilot project.
	1196	+	(i) The technical review panel shall decide that the TNI to which an
	1197	+	application relates is approved for general use in Indiana if:
	1198	+	(1) the TNI has been certified as meeting the NSF/ANSI 40
	1199	+	Standard;
	1200	+	(2) a proposed Indiana design and installation manual for the TNI
	1201	+	is submitted with the permit application; and
	1202	+	(3) the technical review panel certifies that the proposed Indiana
	1203	+	design and installation manual meets the vertical and horizontal
	1204	+	separation, sizing, and soil loading criteria of the state
	1205	+	department.
	1206	+	(j) Subsection (k) applies if:
	1207	+	(1) a particular TNI meets the requirements of NSF/ANSI 40,
	1208	+	NSF/ANSI 245, or NSF/ANSI 350;
	1209	+	(2) the proposed Indiana design and installation manual for the
	1210	+	TNI meets the vertical and horizontal separation, sizing, and soil
	1211	+	loading criteria of the state department; and
	1212	+	(3) an Indiana professional engineer registered under IC 25-31-1
	1213	+	prepares site specific plans for the use of the TNI for a residential
	1214	+	or commercial application.
	1215	+	(k) In a case described in subsection (j):
	1216	+	(1) if the TNI is to be used in a residential application, the site
	1217	+	specific plans prepared under subsection (j)(3), after being
	1218	+	submitted to the local health department of the county, city, or
	1219	+	multiple county unit in which the TNI would be installed, may be
	1220	+	approved by the local health department within the period set
	1221	+	forth in IC 16-41-25-1(a); and
	1222	+	(2) if the TNI is to be used in a commercial application, the site
	1223	+	specific plans prepared under subsection (j)(3) shall be approved
	1224	+	by the state department upon submission of the site specific plans.
	1225	+	(l) A local health department may not refuse an application for a
	1226	+	permit for the construction or installation of a residential onsite sewage
	1227	+	EH 1402—LS 7444/DI 150 29
	1228	+	system (as defined in IC 16-41-25-0.4) solely because the residential
	1229	+	onsite sewage system has not been used previously in the jurisdiction
	1230	+	of the local health department or is unfamiliar to the local health
	1231	+	department, if either of the following apply:
	1232	+	(1) The residential onsite sewage system has been approved by
	1233	+	the technical review panel under this section for general use in
	1234	+	Indiana.
	1235	+	(2) The residential onsite sewage system:
	1236	+	(A) is based on one (1) or more sewage treatment or disposal
	1237	+	methods or processes; or
	1238	+	(B) incorporates equipment;
	1239	+	approved by the technical review panel under this section for
	1240	+	general use in Indiana.
	1241	+	SECTION 4. IC 16-19-3-27.7 IS ADDED TO THE INDIANA
426	1242		CODE AS A NEW SECTION TO READ AS FOLLOWS
427	1243		[EFFECTIVE JULY 1, 2023]: Sec. 27.7. (a) Subject to subsection (b),
428	1244		for all rules concerning residential onsite sewage systems, the state
429	1245		department shall update:
430	1246		(1) all matters incorporated by reference in the rules,
431	1247		including all bulletins, standards, and specifications
432	1248		incorporated by reference; and
433	1249		(2) all industry standard practices reflected in the rules;
434	1250		upon the recognition of new bulletins, standards, specifications,
435	1251		and industry standard practices that supersede the bulletins,
436	1252		standards, specifications, and industry standard practices
437	1253		incorporated by reference or otherwise reflected in the rules.
438	1254		(b) The technical review panel established under section 27.5(b)
439	1255		of this chapter:
440	1256		(1) may recognize and notify the state department of:
441	1257		(A) new bulletins, standards, and specifications; and
442	1258		(B) new industry standard practices;
443	1259		for the purposes of subsection (a); and
444	1260		(2) must approve updates described in subsection (a) before
445	1261		the state department may update the rules concerning
446	1262		residential onsite sewage systems under subsection (a).
447		-	(c) Updates approved by the technical review panel described in
448		-	subsection (b) and updated by the state department under
449		-	subsection (a) are effective one hundred eighty (180) days after the
450		-	publication of the updates.
451		-	(d) The technical review panel may only notify the state
452		-	department of updated:
453		-	(1) matters incorporated by reference in the rules, including
454		-	all bulletins, standards, and specifications incorporated by
455		-	reference; and
456		-	(2) industry standard practices reflected in the rules;
457		-	for publication once every two (2) years.
458		-	(e) The state department may publish the updates described in
459		-	subsection (a) not more than once every two (2) years.
460		-	SECTION 6. IC 16-19-3-27.8 IS ADDED TO THE INDIANA
	1263	+	(c) Updates by the state department under subsection (a) are
	1264	+	effective one hundred eighty (180) days after the publication of the
	1265	+	updates.
	1266	+	SECTION 5. IC 16-19-3-27.8 IS ADDED TO THE INDIANA
461	1267		CODE AS A NEW SECTION TO READ AS FOLLOWS
462		-	[EFFECTIVE JULY 1, 2023]: Sec. 27.8. (a) After June 30, 2023, a
463		-	county, city, or town ordinance concerning residential onsite
	1268	+	[EFFECTIVE JULY 1, 2023]: Sec. 27.8. (a) After December 31,
	1269	+	2023, a county or city ordinance concerning residential onsite
	1270	+	EH 1402—LS 7444/DI 150 30
464	1271		sewage systems that:
465	1272		(1) would restrict or prohibit the use of technology new to
466		-	HEA 1402 — CC 1 12
467	1273		Indiana that is approved for general use in Indiana under
468	1274		section 27.5 of this chapter; or
469	1275		(2) would otherwise vary from the rules concerning
470	1276		residential onsite sewage systems, including rules updated
471	1277		under section 27.7 of this chapter;
472	1278		is subject to this section.
473	1279		(b) After adopting an ordinance described in subsection (a), the
474		-	county, city, or town must submit the ordinance to the technical
475		-	review panel established under section 27.5(b) of this chapter,
476		-	along with a:
477		-	(1) request for approval of the ordinance;
478		-	(2) statement of the reasons for the restriction, prohibition, or
479		-	variance; and
480		-	(3) statement of financial impact.
	1280	+	county or city must submit the ordinance to the technical review
	1281	+	panel established under section 27.5(b) of this chapter, along with:
	1282	+	(1) a request for approval of the ordinance; and
	1283	+	(2) a statement of the reasons for the restriction, prohibition,
	1284	+	or variance.
481	1285		(c) The technical review panel shall consider an ordinance
482		-	submitted by a county~~, city,~~ or ~~town~~ under subsection (b). If the
483		-	~~technical~~ review panel approves the ordinance by vote of a
484		-	~~majority of its~~ members at a public meeting, the ordinance
485		-	~~becomes effective~~ within the county~~, city,~~ or ~~town~~.
	1286	+	submitted by a county or city under subsection (b). If the technical
	1287	+	review panel approves the ordinance by vote of a majority of its
	1288	+	members at a public meeting, the ordinance becomes effective
	1289	+	within the county or city.
486	1290		(d) An ordinance described in subsection (a) is not effective
487	1291		unless it is approved by the technical review panel under this
488	1292		section.
489	1293		(e) If an ordinance described in subsection (a) was adopted
490		-	before July 1, 2023, the ordinance becomes void and unenforceable
491		-	on July 1, 2023.
492		-	(f) An ordinance described in subsection (a) may be readopted
493		-	if:
494		-	(1) the legislative body of county, city, or town votes to adopt
495		-	the ordinance after it expires on July 1, 2023; and
	1294	+	before January 1, 2024, the ordinance becomes void and
	1295	+	unenforceable on January 1, 2024, unless, before January 1, 2024:
	1296	+	(1) the ordinance is readopted by the legislative body of the
	1297	+	county or city; and
496	1298		(2) after being readopted under subdivision (1), the ordinance
497	1299		is:
498	1300		(A) submitted to the technical review panel under
499	1301		subsection (b); and
500	1302		(B) approved by the technical review panel under
501	1303		subsection (c).
502		-	SECTION 7. IC 16-19-3-27.9 IS ADDED TO THE INDIANA
503		-	CODE AS A NEW SECTION TO READ AS FOLLOWS
504		-	[EFFECTIVE JULY 1, 2023]: Sec. 27.9. (a) An ordinance described
505		-	in section 27.8(a) of this chapter may not be presented to the
506		-	technical review board for adoption before October 1, 2023.
507		-	(b) This section expires January 1, 2024.
508		-	SECTION 8. IC 16-41-25-7, AS ADDED BY P.L.167-2022,
509		-	HEA 1402 — CC 1 13
	1304	+	SECTION 6. IC 16-41-25-7, AS ADDED BY P.L.167-2022,
510	1305		SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
511	1306		JULY 1, 2023]: Sec. 7. (a) After June 30, 2023, a county, city, or town
512	1307		ordinance may not impose adopt requirements, restrictions, or
513	1308		conditions concerning the:
514	1309		(1) design;
515	1310		(2) construction;
516	1311		(3) installation;
517	1312		(4) location;
	1313	+	EH 1402—LS 7444/DI 150 31
518	1314		(5) maintenance; or
519		-	(6) operation; or
520		-	(7) inspection of a septic system before a sale;
	1315	+	(6) operation;
521	1316		of a residential onsite sewage system that are more stringent than the
522	1317		requirements, restrictions, and conditions of the rule of the state
523	1318		department concerning residential onsite sewage systems. After June
524	1319		30, 2023, An ordinance that imposes requirements, restrictions, or
525	1320		conditions that are more stringent than the requirements, restrictions,
526	1321		and conditions of the state department's rule concerning residential
527	1322		onsite sewage systems is void and may not be enforced. subject to
528	1323		invalidation under IC 16-19-3-27.8(e).
529	1324		(b) After June 30, 2023, a local health department may not impose
530	1325		adopt requirements, restrictions, or conditions concerning the:
531	1326		(1) design;
532	1327		(2) construction;
533	1328		(3) installation;
534	1329		(4) location;
535	1330		(5) maintenance; or
536		-	(6) operation; or
537		-	(7) inspection of a septic system before a sale;
	1331	+	(6) operation;
538	1332		of a residential onsite sewage system that are more stringent than the
539	1333		requirements, restrictions, and conditions of the rule of the state
540	1334		department concerning residential onsite sewage systems. After June
541	1335		30, 2023, any requirements, restrictions, or conditions that are imposed
542	1336		adopted by a local health department and that are more stringent than
543	1337		the requirements, restrictions, and conditions of the state department's
544	1338		rule concerning residential onsite sewage systems are void and may not
545		-	be enforced. unenforceable.
546		-	SECTION 9. IC 16-41-25-7.2 IS ADDED TO THE INDIANA
547		-	CODE AS A NEW SECTION TO READ AS FOLLOWS
548		-	[EFFECTIVE JULY 1, 2023]: Sec. 7.2. (a) As used in this section,
549		-	"sinkhole" means a depression or hole in the ground caused by
550		-	some form of collapse of the surface layer, as when subsurface
551		-	limestone is dissolved or worn away by the movement of water
552		-	HEA 1402 — CC 1 14
553		-	underground.
554		-	(b) A residential onsite sewage system shall not be installed in a
555		-	site less than twenty-five (25) feet from the edge of a sinkhole, as
556		-	identified by a professional soil scientist registered under
557		-	IC 25-31.5-4.
558		-	SECTION 10. IC 16-41-25-8, AS ADDED BY P.L.167-2022,
559		-	SECTION 13, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
560		-	JULY 1, 2023]: Sec. 8. (a) If:
561		-	(1) an application has been filed with a local health
562		-	department for a permit for the installation of a residential
563		-	onsite sewage system;
564		-	(2) a professional soil scientist registered under IC 25-31.5-4
565		-	has conducted an onsite evaluation, including a description of
566		-	the soil profile, and has determined that the proposed site of
567		-	the residential onsite sewage system is suitable for the
568		-	installation of the residential onsite sewage system; and
569		-	(3) the design and specifications for a the residential onsite
570		-	sewage system proposed for construction or installation at a
571		-	particular location the site described in subdivision (2) have
572		-	been approved by either:
573		-	(1) (A) the local health department; or
574		-	(2) (B) at the option and expense of the property owner:
575		-	(A) (i) a professional engineer registered under IC 25-31-1;
576		-	(B) a registered soil scientist (as defined in IC 25-31.5-1-7);
577		-	(C) (ii) an individual or entity engaged in the business of
578		-	constructing and installing residential onsite sewage
579		-	systems; and a septic system installer or inspector
580		-	registered with the county in which the residential onsite
581		-	sewage system would be installed; and
582		-	(D) (iii) the designer of the system, if the system was
583		-	designed by someone other than a person referred to in
584		-	clause (A) item (i) or (C); (ii);
585		-	the local health department shall issue a permit for the residential
586		-	onsite sewage system not later than thirty (30) business days after
587		-	receiving a complete application for the permit.
588		-	(b) Subject to IC 16-19-3-27.5, IC 16-19-3-27.6, and sections 5 and
589		-	6 of this chapter, this section does not affect the authority of a local
590		-	health department to inspect an onsite sewage system before or after
591		-	the system's installation.
592		-	SECTION 11. IC 16-41-25-8.5 IS ADDED TO THE INDIANA
593		-	CODE AS A NEW SECTION TO READ AS FOLLOWS
594		-	[EFFECTIVE JULY 1, 2023]: Sec. 8.5. (a) As used in this section,
595		-	HEA 1402 — CC 1 15
596		-	"lot" means the parcel of real property on which:
597		-	(1) a one (1) family or two (2) family dwelling; or
598		-	(2) two (2) single family dwellings located on the same
599		-	property with a combined design daily flow of not more than
600		-	seven hundred fifty (750) gallons per day;
601		-	have been constructed or are proposed for construction.
602		-	(b) A residential onsite sewage system may be installed in a lot
603		-	described in subsection (a) if at least one (1) site on the lot is
604		-	determined to be suitable for the installation of the residential
605		-	onsite sewage system.
606		-	SECTION 12. IC 16-41-25-10 IS ADDED TO THE INDIANA
607		-	CODE AS A NEW SECTION TO READ AS FOLLOWS
608		-	[EFFECTIVE JULY 1, 2023]: Sec. 10. (a) Neither an officer or
609		-	employee of a local health department nor another agency, officer,
610		-	or employee of a county, city, or town may enter property on which
611		-	a residential onsite sewage system is located for the purpose of
612		-	inspecting the residential onsite sewage system if, not more than
613		-	one hundred eighty (180) days before the date of the inspection, the
614		-	owner or occupant of the residence served by the residential onsite
615		-	sewage system and:
616		-	(1) a septic system installer or inspector registered with the
617		-	county in which the residential onsite sewage system is
618		-	located;
619		-	(2) an onsite sewage system technician; or
620		-	(3) an Indiana professional engineer registered under
621		-	IC 25-31-1;
622		-	state in a writing transmitted to the local health department,
623		-	county, city, or town that the residential onsite sewage system is
624		-	functioning properly.
625		-	(b) Subject to subsection (d), if subsection (a) does not apply, an
626		-	officer or employee of a local health department or another officer
627		-	or employee of a county, city, or town may not enter property on
628		-	which a residential onsite sewage system is located for the purpose
629		-	of inspecting the residential onsite sewage system unless the owner
630		-	or occupant of the residence served by the residential onsite sewage
631		-	system is given notice of the inspection by first class mail addressed
632		-	to the residence at least seven (7) days before the day of the
633		-	inspection.
634		-	(c) Subject to subsection (d), if a manufacturer of a residential
635		-	onsite sewage system requires inspection of the system multiple
636		-	times a year, an owner of the property on which a residential onsite
637		-	sewage system is located may request an officer or employee of a
638		-	HEA 1402 — CC 1 16
639		-	local health department or another agency, officer, or employee of
640		-	a county, city, or town to inspect the residential onsite sewage
641		-	system located on the owner's property, but the inspection may
642		-	only occur if the owner of the residential onsite sewage system
643		-	invites the inspector to the property.
644		-	(d) An advance notice to the owner or occupant of the residence
645		-	is not required under subsection (b) in an urgent situation caused
646		-	by a malfunction of the residential onsite sewage system that
647		-	creates a clear and immediate danger to the public's health, safety,
648		-	or property.
649		-	SECTION 13. IC 16-41-25-11 IS ADDED TO THE INDIANA
650		-	CODE AS A NEW SECTION TO READ AS FOLLOWS
651		-	[EFFECTIVE JULY 1, 2023]: Sec. 11. (a) As used in this section,
652		-	"residential onsite sewage system failure" means a residential
653		-	onsite sewage system that exhibits one (1) or more of the following:
654		-	(1) The onsite sewage system refuses to accept sewage at the
655		-	rate of design application and interferes with the normal use
656		-	of residential plumbing fixtures.
657		-	(2) Effluent discharge exceeds the absorptive capacity of the
658		-	soil, resulting in ponding, seepage, or other discharge of the
659		-	effluent to the ground surface or to surface waters.
660		-	(3) Effluent is discharged from the onsite sewage system
661		-	causing contamination of a potable water supply, ground
662		-	water, or surface waters.
663		-	(b) A local health department that determines that a residential
664		-	onsite sewage system is in residential onsite sewage system failure
665		-	may issue an order requiring that the failure be corrected.
666		-	However, an order issued under this subsection is stayed if the
667		-	owner or occupant of the residence served by the residential onsite
668		-	sewage system, within fourteen (14) days after the date of the
669		-	order, enters into a contract with:
670		-	(1) a septic system installer or inspector registered with the
671		-	county in which the residential onsite sewage system is
672		-	located;
673		-	(2) an onsite sewage system technician; or
674		-	(3) an Indiana professional engineer registered under
675		-	IC 25-31-1;
676		-	under which the installer or inspector, onsite sewage system
677		-	technician, or professional engineer agrees to conduct an
678		-	inspection to determine whether the residential onsite sewage
679		-	system is in residential onsite sewage system failure.
680		-	(c) An order is stayed under subsection (b) until the earlier of
681		-	HEA 1402 — CC 1 17
682		-	the following:
683		-	(1) The date on which the installer or inspector, technician, or
684		-	engineer performs the inspection and presents the results of
685		-	the inspection in writing to:
686		-	(A) the owner or occupant of the residence served by the
687		-	residential onsite sewage system; and
688		-	(B) the local health department.
689		-	(2) The expiration of forty-five (45) days after the date of the
690		-	order issued under subsection (b).
691		-	(d) If the installer or inspector, onsite sewage system technician,
692		-	or professional engineer states in the report provided to the local
693		-	health department that the residential onsite sewage system is not
694		-	in residential onsite sewage system failure, the local health
695		-	department shall:
696		-	(1) withdraw the order issued under subsection (b); or
697		-	(2) conduct an investigation of the residential onsite sewage
698		-	system to make a new determination whether the residential
699		-	onsite sewage system is in residential onsite sewage system
700		-	failure.
701		-	(e) If the local health department conducts an investigation
702		-	under subsection (d)(2), the order issued under subsection (b) is
703		-	stayed pending the new determination of the local health
704		-	department based on the investigation.
705		-	SECTION 14. IC 16-41-25-12 IS ADDED TO THE INDIANA
706		-	CODE AS A NEW SECTION TO READ AS FOLLOWS
707		-	[EFFECTIVE JULY 1, 2023]: Sec. 12. (a) As used in this section,
708		-	"onsite sewage system service" means:
709		-	(1) installing;
710		-	(2) inspecting; and
711		-	(3) providing maintenance and repair services for;
712		-	residential onsite sewage systems.
713		-	(b) An individual who:
714		-	(1) is registered with at least one (1) county in Indiana to
715		-	provide onsite sewage system service in the county;
716		-	(2) is:
717		-	(A) certified as an inspector or installer by the Indiana
718		-	Onsite Wastewater Professionals Association; and
719		-	(B) a member in good standing of the Indiana Onsite
720		-	Wastewater Professionals Association; and
721		-	(3) has not had the individual's registration revoked in any
722		-	county;
723		-	is entitled to provide onsite sewage system service in any county in
724		-	HEA 1402 — CC 1 18
725		-	Indiana.
726		-	(c) An individual entitled to provide onsite sewage system
727		-	service in any county under subsection (b) may be required to pay
728		-	a license fee in a county in which the individual provides onsite
729		-	sewage system service under subsection (b).
730		-	SECTION 15. IC 36-9-23-30, AS AMENDED BY P.L.107-2016,
731		-	SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
732		-	JULY 1, 2023]: Sec. 30. (a) Subject to subsection (b) and section 30.1
733		-	of this chapter, a municipality that operates sewage works under this
734		-	chapter or under any statute repealed by IC 19-2-5-30 (repealed
735		-	September 1, 1981) may require:
736		-	(1) connection to its sewer system of any property producing
737		-	sewage or similar waste; and
738		-	(2) discontinuance of the use of privies, cesspools, septic tanks,
739		-	and similar structures.
740		-	(b) A municipality may exercise the powers granted by subsection
741		-	(a) only if:
742		-	(1) there is an available sanitary sewer within three hundred (300)
743		-	feet of the property line of the affected property; and
744		-	(2) it has given notice by certified mail to the property owner at
745		-	the address of the property, at least ninety (90) days before the
746		-	date specified for connection in the notice and the notice
747		-	includes a list of the applicable exemptions from connecting
748		-	to the sewer system available to the property owner that are
749		-	described in IC 36-9-25-15.
750		-	(c) A municipality may establish, enforce, and collect reasonable
751		-	penalties for failure to make a connection under this section.
752		-	(d) A municipality may apply to the circuit or superior court for the
753		-	county in which it is located for an order to require a connection under
754		-	this section. The court shall assess the cost of the action and reasonable
755		-	attorney's fees of the municipality against the property owner in such
756		-	an action.
757		-	SECTION 16. IC 36-9-25-15, AS AMENDED BY P.L.167-2022,
758		-	SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
759		-	JULY 1, 2023]: Sec. 15. (a) The board, on its own initiative, whenever
760		-	any territory, by its contour and watershed, or because of the extension
761		-	of sewers by the municipality, is capable of draining sewage into or
762		-	connecting with the sanitary system, may incorporate any territory,
763		-	whether platted or unplatted, into the district by adopting a resolution
764		-	to that effect describing the reason it is to be included. A certified copy
765		-	of the resolution is conclusive evidence in any proceeding that the
766		-	territory described was properly incorporated and constitutes a part of
767		-	HEA 1402 — CC 1 19
768		-	the district, subject to this chapter.
769		-	(b) Immediately after the passage of a resolution under subsection
770		-	(a), a notice stating the time and place for a public hearing on the
771		-	resolution shall be published in accordance with IC 5-3-1. By the date
772		-	and time of the hearing any affected person may file in the office of the
773		-	board a written remonstrance to having the person's lands included.
774		-	The board shall either confirm, modify, or rescind the resolution after
775		-	the hearing. An appeal may be taken from the decision by one (1) or
776		-	more persons considering themselves aggrieved or injuriously affected,
777		-	as long as those appealing have filed written remonstrances, as
778		-	provided in this subsection, by filing their complaint within thirty (30)
779		-	days after the final decision of the board. The appeal shall be governed
780		-	by IC 34-13-6.
781		-	(c) If the court is satisfied upon hearing an appeal under subsection
782		-	(b):
783		-	(1) that less than seventy-five percent (75%) of the persons
784		-	owning property in the territory sought to be incorporated in the
785		-	district have remonstrated; and
786		-	(2) that the incorporation of the territory into the district will be
787		-	for its interest and will cause no manifest injury to the persons
788		-	owning property in the territory;
789		-	the court shall so find and the incorporation shall be ordered. If the
790		-	court is satisfied that seventy-five percent (75%) or more of the persons
791		-	owning property in the territory sought to be incorporated have
792		-	remonstrated, then the incorporation may not be ordered unless the
793		-	court further finds from the evidence that unless it is incorporated, the
794		-	health and welfare of residents of the territory or of the adjoining lands
795		-	will be materially affected and that the safety and welfare of the
796		-	inhabitants and property of other persons and property will be
797		-	endangered.
798		-	(d) Pending an appeal under subsection (b) and during the time
799		-	within which the appeal may be taken, the territory sought to be
800		-	incorporated is not a part of the district. Upon the determination of the
801		-	appeal, the judgment must particularly describe the resolution upon
802		-	which the appeal is based. The clerk of the court shall deliver a
803		-	certified copy of the judgment to the secretary of the board, who shall
804		-	record it in the minute book of the board and make a cross-reference to
805		-	the page upon the margin where the original resolution was recorded.
806		-	If a decision is adverse to an incorporation, further proceedings may
807		-	not be taken by the board to incorporate that territory within the district
808		-	for a period of one (1) year after the rendition of the judgment.
809		-	(e) Except as provided in subsection (n) and subject to subsections
810		-	HEA 1402 — CC 1 20
811		-	(f) through (m), a property owner whose property is incorporated into
812		-	a district under this section or section 14(b) of this chapter, regardless
813		-	of whether the property owner has filed a written remonstrance or an
814		-	appeal with respect to the incorporation, is exempt from a requirement
815		-	to connect to the district's sewer system and to discontinue use of a
816		-	sewage disposal system on the property owner's property if all of the
817		-	following conditions are met:
818		-	(1) The property owner's sewage disposal system is a septic tank
819		-	soil absorption system (as defined in IC 13-11-2-199.5) or
820		-	constructed wetland septic system (as defined in
821		-	IC 36-9-23-30.1(a)) that:
822		-	(A) was new at the time of installation; and
823		-	(B) was approved in writing by the local health department,
824		-	the department's designee, or a qualified inspector.
825		-	(2) The property owner, at the property owner's own expense,
826		-	obtains a written determination from the local health department
827		-	or the department's designee that the property owner's sewage
828		-	disposal system is not failing. The local health department or the
829		-	department's designee shall provide the owner with a written
830		-	determination not later than sixty (60) days after receipt of the
831		-	owner's request. If the local health department or the department's
832		-	designee fails to provide a written determination within the time
833		-	set forth in this subdivision, the owner, at the owner's expense,
834		-	may obtain a written determination from a qualified inspector. If
835		-	the local health department or the department's designee
836		-	determines that the sewage disposal system is failing, the property
837		-	owner may appeal the determination to the board of the local
838		-	health department. The decision of the board of the local health
839		-	department is final and binding.
840		-	(3) The property owner provides the board with:
841		-	(A) a written notification of potential qualification for the
842		-	exemption, as described in subsection (h); and
843		-	(B) the written determination described in subdivision (2);
844		-	within the time limits set forth in subsection (h).
845		-	(f) If the property owner, within the time allowed under subsection
846		-	(h), notifies the board in writing of the property owner's potential
847		-	qualification for the exemption, the board shall, until the property
848		-	owner's eligibility for the exemption is determined, suspend the
849		-	requirement that the property owner discontinue use of the property
850		-	owner's sewage disposal system and connect to the district's sewer
851		-	system.
852		-	(g) A property owner who qualifies for the exemption provided
853		-	HEA 1402 — CC 1 21
854		-	under this section may not be required to connect to the district's sewer
855		-	system for a period of ten (10) years beginning on the date of the
856		-	written determination of the local health department, the department's
857		-	designee, or a qualified inspector under subsection (e)(2) that the
858		-	property owner's sewage disposal system is not failing. A property
859		-	owner may apply for two (2) five (5) year extensions of the exemption
860		-	provided under this section by following the procedures set forth in this
861		-	section. If ownership of an exempt property is transferred during a
862		-	valid exemption period, including during an extension of an initial
863		-	exemption:
864		-	(1) the exemption applies to the subsequent owner of the property
865		-	for the remainder of the exemption period during which the
866		-	transfer occurred; and
867		-	(2) the subsequent owner may apply for any remaining
868		-	extensions.
869		-	However, the total period during which a property may be exempt from
870		-	the requirement to connect to a district's sewer system under this
871		-	section may not exceed twenty (20) years, regardless of ownership of
872		-	the property.
873		-	(h) To qualify for an exemption under this section, a property owner
874		-	must:
875		-	(1) not later than sixty (60) days after being notified of the
876		-	requirement to connect to the district's sewer system, notify the
877		-	board in writing that the property owner qualifies for an
878		-	exemption under this section; and
879		-	(2) not later than one hundred twenty (120) days after the board
880		-	receives the written notice provided under subdivision (1),
881		-	provide the board with the written determination required under
882		-	subsection (e)(2).
883		-	(i) When a property owner who qualifies for an exemption under
884		-	this section subsequently discontinues use of the property owner's
885		-	sewage disposal system and connects to the district's sewer system, the
886		-	property owner may be required to pay only the following to connect
887		-	to the sewer system:
888		-	(1) The connection fee the property owner would have paid if the
889		-	property owner connected to the sewer system on the first date the
890		-	property owner could have connected to the sewer system.
891		-	(2) Any additional costs:
892		-	(A) considered necessary by; and
893		-	(B) supported by documentary evidence provided by;
894		-	the board.
895		-	(j) A property owner who connects to a district's sewer system may
896		-	HEA 1402 — CC 1 22
897		-	provide, at the owner's expense, labor, equipment, materials, or any
898		-	combination of labor, equipment, and materials from any source to
899		-	accomplish the connection to the sewer system, subject to inspection
900		-	and approval by the board or a designee of the board.
901		-	(k) This section does not affect the authority of the state Indiana
902		-	department of health, a local health department, or a county health
903		-	officer with respect to a sewage disposal system.
904		-	(l) For purposes of this section, a sewage disposal system is "failing"
905		-	if one (1) or more of the following apply:
906		-	(1) The system refuses to accept sewage at the rate of design
907		-	application and interferes with the normal use of plumbing
908		-	fixtures.
909		-	(2) Effluent discharge exceeds the absorptive capacity of the soil
910		-	into which the system discharges, resulting in ponding, seepage,
911		-	or other discharge of the effluent to the ground surface or to
912		-	surface waters.
913		-	(3) Effluent discharged from the system contaminates a potable
914		-	water supply, ground water, or surface waters.
915		-	(m) As used in this section, "qualified inspector" means any of the
916		-	following:
917		-	(1) An employee of a local health department who is designated
918		-	by the local health department as having sufficient knowledge of
919		-	onsite sewage systems to determine if an onsite sewage system is
920		-	failing.
921		-	(2) An individual who is certified by the Indiana Onsite
922		-	Wastewater Professionals Association as an onsite sewage system
923		-	installer or inspector.
924		-	(3) An individual listed by the state Indiana department of health
925		-	or a local health department with jurisdiction over the service area
926		-	of the property inspected as having sufficient knowledge of onsite
927		-	sewage systems to determine if an onsite sewage system is failing.
928		-	(n) Subsections (e) through (i) do not apply to a property owner
929		-	whose property is incorporated into a district under this section or
930		-	section 14(b) of this chapter if:
931		-	(1) the district has received approval from the Indiana finance
932		-	authority before January 1, 2022, of a preliminary engineering
933		-	report:
934		-	(A) for a project to construct the sewer line to which the
935		-	property owner's property is being required to connect; and
936		-	(B) in connection with funding from the wastewater or
937		-	drinking water revolving loan program under IC 5-1.2-10; and
938		-	(2) the timing and requirements for connection to the district's
939		-	HEA 1402 — CC 1 23
940		-	sewer system are the same for all property owners being required
941		-	to connect to the district's sewer system under the terms of the
942		-	project.
943		-	(o) Immediately after the adoption of a resolution under
944		-	subsection (a), and following the completion of any appeals under
945		-	subsections (b) and (c), the board shall do the following:
946		-	(1) Notify any impacted property owners of the sewer project
947		-	within three hundred (300) feet of the property line.
948		-	(2) Give notice by certified mail to the property owner at the
949		-	address of the property at least ninety (90) days before the
950		-	date specified for mandatory connection in the notice.
951		-	(3) Give notice by certified mail to the property owner at the
952		-	address of the property of the applicable exemptions from
953		-	connecting to the sewer system available to the property
954		-	owner that are described in subsection (e) at least ninety (90)
955		-	days before the date specified for connection in the notice.
956		-	HEA 1402 — CC 1 Speaker of the House of Representatives
957		-	President of the Senate
958		-	President Pro Tempore
959		-	Governor of the State of Indiana
960		-	Date: Time:
961		-	HEA 1402 — CC 1
	1339	+	be enforced. unenforceable.".
	1340	+	Renumber all SECTIONS consecutively.
	1341	+	and when so amended that said bill do pass.
	1342	+	(Reference is to HB 1402 as printed February 16, 2023.)
	1343	+	NIEMEYER, Chairperson
	1344	+	Committee Vote: Yeas 7, Nays 2.
	1345	+	EH 1402—LS 7444/DI 150