First Regular Session of the 123rd General Assembly (2023)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in this style type. Also, the
word NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
between statutes enacted by the 2022 Regular Session of the General Assembly.
HOUSE ENROLLED ACT No. 1402
AN ACT to amend the Indiana Code concerning health.
Be it enacted by the General Assembly of the State of Indiana:
SECTION 1. IC 8-1-1.9-6 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2023]: Sec. 6. (a) This section applies to a wastewater utility that:
(1) is not subject to the jurisdiction of the commission for the
approval of rates and charges; and
(2) receives wholesale wastewater service from another
wastewater utility.
(b) As used in this section, "wastewater utility" means a:
(1) public utility;
(2) municipally owned utility (as defined in IC 8-1-2-l(h)) that
serves fewer than eight thousand (8,000) customers;
(3) not-for-profit utility (as defined in IC 8-1-2-125(a));
(4) cooperatively owned corporation;
(5) conservancy district established under IC 14-33; or
(6) regional sewer district established under IC 13-26.
(c) Before a wastewater utility may:
(1) disconnect from the wholesale wastewater service
provided by another wastewater utility; and
(2) construct a new wastewater treatment plant to serve its
customers;
the wastewater utility must obtain the approval of the commission
of its plan to disconnect from the other wastewater utility's
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wholesale wastewater service and construct a new wastewater
treatment plant.
(d) A wastewater utility to which subsection (c) applies must
submit to the commission as part of the wastewater utility's case in
chief:
(1) the current costs incurred by the wastewater utility for
utility service with the other wastewater utility providing
wholesale wastewater service;
(2) the projected future costs to be incurred by the wastewater
utility for utility service if the other wastewater utility were to
continue providing wholesale wastewater service; and
(3) the projected future costs to be incurred by the wastewater
utility for utility service if the wastewater utility were to
disconnect from the other wastewater utility providing
wholesale wastewater service and construct a new wastewater
treatment plant.
(e) The commission may approve a wastewater utility's proposal
under subsection (c) if the commission finds that:
(1) the disconnection from the wholesale wastewater service
and the construction of a new wastewater treatment plant is
reasonable and in the public interest;
(2) the total rates charged by the wastewater utility for
wastewater service will not increase above the projected cost
of continued service with the wholesale wastewater service
provider as a result of the disconnection from the wholesale
wastewater service and the new wastewater treatment plant
construction;
(3) the wastewater utility has developed an asset management
program, as defined in guidelines adopted by the Indiana
finance authority under IC 5-1.2; and
(4) the wastewater utility has the legal, managerial, technical,
and financial expertise to construct and manage a new
wastewater treatment plant.
(f) In the commission's annual report under IC 8-1-1-14, the
commission shall include a description of any activity under this
section.
SECTION 2. IC 13-26-5-2, AS AMENDED BY P.L.178-2013,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2023]: Sec. 2. A district may do the following:
(1) Sue or be sued.
(2) Make contracts in the exercise of the rights, powers, and
duties conferred upon the district.
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(3) Adopt and alter a seal and use the seal by causing the seal to
be impressed, affixed, reproduced, or otherwise used. However,
the failure to affix a seal does not affect the validity of an
instrument.
(4) Adopt, amend, and repeal the following:
(A) Bylaws for the administration of the district's affairs.
(B) Rules and regulations for the following:
(i) The control of the administration and operation of the
district's service and facilities.
(ii) The exercise of all of the district's rights of ownership.
(5) Construct, acquire, lease, operate, or manage works and obtain
rights, easements, licenses, money, contracts, accounts, liens,
books, records, maps, or other property, whether real, personal, or
mixed, of a person or an eligible entity.
(6) Assume in whole or in part any liability or obligation of:
(A) a person;
(B) a nonprofit water, sewage, or solid waste project system;
or
(C) an eligible entity;
including a pledge of part or all of the net revenues of a works to
the debt service on outstanding bonds of an entity in whole or in
part in the district and including a right on the part of the district
to indemnify and protect a contracting party from loss or liability
by reason of the failure of the district to perform an agreement
assumed by the district or to act or discharge an obligation.
(7) Fix, alter, charge, and collect reasonable rates and other
charges in the area served by the district's facilities to every
person whose premises are, whether directly or indirectly,
supplied with water or provided with sewage or solid waste
services by the facilities for the purpose of providing for the
following:
(A) The payment of the expenses of the district.
(B) The construction, acquisition, improvement, extension,
repair, maintenance, and operation of the district's facilities
and properties.
(C) The payment of principal or interest on the district's
obligations.
(D) To fulfill the terms of agreements made with:
(i) the purchasers or holders of any obligations; or
(ii) a person or an eligible entity.
(8) Except as provided in sections 2.5 and 2.6 of this chapter,
require connection to the district's sewer system of property
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producing sewage or similar waste, and require the
discontinuance of use of privies, cesspools, septic tanks, and
similar structures if:
(A) there is an available sanitary sewer within three hundred
(300) feet of:
(i) the property line, if the property is adjacent to a body of
water, including a lake, river, or reservoir;
(ii) any part of a subdivision, or land that is divided or
proposed to be divided into lots, whether contiguous or
subject to zoning requirements, for the purpose of sale or
lease as part of a larger common plan of development or
sale; or
(iii) for all other properties, the improvement or other
structure from which the sewage or similar waste is
discharged;
(B) the district has given written notice by certified mail to the
property owner at the address of the property at least ninety
(90) days before a date for connection to be stated in the notice
and the notice includes a list of the applicable exemptions
from connecting to the sewer system available to the
property owner that are described in section 2.5 of this
chapter; and
(C) if the property is located outside the district's territory:
(i) the district has obtained and provided to the property
owner (along with the notice required by clause (B)) a letter
of recommendation from the local health department that
there is a possible threat to the public's health; and
(ii) if the property is also located within the extraterritorial
jurisdiction of a municipal sewage works under IC 36-9-23
or a public sanitation department under IC 36-9-25, the
municipal works board or department of public sanitation
has acknowledged in writing that the property is within the
municipal sewage works or department of public sanitation's
extraterritorial jurisdiction, but the municipal works board
or department of public sanitation is unable to provide sewer
service.
However, a district may not require the owner of a property
described in this subdivision to connect to the district's sewer
system if the property is already connected to a sewer system that
has received an NPDES permit and has been determined to be
functioning satisfactorily.
(9) Provide by ordinance for a reasonable penalty, not to exceed
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one hundred dollars ($100) per day, for failure to connect and also
apply to the circuit or superior court of the county in which the
property is located for an order to force connection, with the cost
of the action, including reasonable attorney's fees of the district,
to be assessed by the court against the property owner in the
action.
(10) Refuse the services of the district's facilities if the rates or
other charges are not paid by the user.
(11) Control and supervise all property, works, easements,
licenses, money, contracts, accounts, liens, books, records, maps,
or other property rights and interests conveyed, delivered,
transferred, or assigned to the district.
(12) Construct, acquire by purchase or otherwise, operate, lease,
preserve, and maintain works considered necessary to accomplish
the purposes of the district's establishment within or outside the
district and enter into contracts for the operation of works owned,
leased, or held by another entity, whether public or private.
(13) Hold, encumber, control, acquire by donation, purchase, or
condemnation, construct, own, lease as lessee or lessor, use, and
sell interests in real and personal property or franchises within or
outside the district for:
(A) the location or protection of works;
(B) the relocation of buildings, structures, and improvements
situated on land required by the district or for any other
necessary purpose; or
(C) obtaining or storing material to be used in constructing and
maintaining the works.
(14) Upon consent of two-thirds (2/3) of the members of the
board, merge or combine with another district into a single district
on terms so that the surviving district:
(A) is possessed of all rights, franchises, and authority of the
constituent districts; and
(B) is subject to all the liabilities, obligations, and duties of
each of the constituent districts, with all rights of creditors of
the constituent districts being preserved unimpaired.
(15) Provide by agreement with another eligible entity for the
joint construction of works the district is authorized to construct
if the construction is for the district's own benefit and that of the
other entity. For this purpose the cooperating entities may jointly
appropriate land either within or outside their respective borders
if all subsequent proceedings, actions, powers, liabilities, rights,
and duties are those set forth by statute.
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(16) Enter into contracts with a person, an eligible entity, the
state, or the United States to provide services to the contracting
party for any of the following:
(A) The distribution or purification of water.
(B) The collection or treatment of sanitary sewage.
(C) The collection, disposal, or recovery of solid waste.
(17) Make provision for, contract for, or sell the district's
byproducts or waste.
(18) Exercise the power of eminent domain, including for
purposes of siting sewer or water utility infrastructure, but only
after the district attempts to use existing public rights-of-way or
easements.
(19) Remove or change the location of a fence, building, railroad,
canal, or other structure or improvement located within or outside
the district. If:
(A) it is not feasible or economical to move the building,
structure, or improvement situated in or upon land acquired;
and
(B) the cost is determined by the board to be less than that of
purchase or condemnation;
the district may acquire land and construct, acquire, or install
buildings, structures, or improvements similar in purpose to be
exchanged for the buildings, structures, or improvements under
contracts entered into between the owner and the district.
(20) Employ consulting engineers, superintendents, managers,
and other engineering, construction, and accounting experts,
attorneys, bond counsel, employees, and agents that are necessary
for the accomplishment of the district's purpose and fix their
compensation.
(21) Procure insurance against loss to the district by reason of
damages to the district's properties, works, or improvements
resulting from fire, theft, accident, or other casualty or because of
the liability of the district for damages to persons or property
occurring in the operations of the district's works and
improvements or the conduct of the district's activities.
(22) Exercise the powers of the district without obtaining the
consent of other eligible entities. However, the district shall:
(A) restore or repair all public or private property damaged in
carrying out the powers of the district and place the property
in the property's original condition as nearly as practicable; or
(B) pay adequate compensation for the property.
(23) Dispose of, by public or private sale or lease, real or personal
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property determined by the board to be no longer necessary or
needed for the operation or purposes of the district.
SECTION 3. IC 16-18-2-317.8, AS ADDED BY P.L.167-2022,
SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2023]: Sec. 317.8. "Residential onsite sewage system", for
purposes of IC 16-19-3-27.5, IC 16-19-3-27.7, IC 16-19-3-27.8, and
IC 16-41-25, has the meaning set forth in IC 16-41-25-0.4.
SECTION 4. IC 16-19-3-27.5, AS AMENDED BY
P.L.178-2022(ts), SECTION 11, IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2023]: Sec. 27.5. (a) As used in this
section and section 27.8 of this chapter, "technology new to Indiana"
(referred to in this section as "TNI") means sewage treatment or
disposal methods, processes, or equipment that are not described in the
administrative rules of the state department or the executive board
concerning residential onsite sewage systems (410 IAC 6-8.3) or
commercial onsite sewage systems (410 IAC 6-10.1).
(b) The state department shall establish and maintain a technical
review panel consisting of individuals with technical or scientific
knowledge relating to onsite sewage systems. The technical review
panel: shall:
(1) shall decide under subsection (f) whether to approve:
(A) proprietary residential wastewater treatment devices; and
(B) proprietary commercial wastewater treatment devices;
for general use in Indiana;
(2) shall biannually review the performance of residential onsite
sewage septic systems and commercial onsite sewage systems;
(3) shall assist the state department in developing standards and
guidelines for proprietary residential wastewater treatment
devices and proprietary commercial wastewater treatment
devices; and
(4) shall assist the executive board and the state department in
updating rules adopted under section 4 of this chapter concerning
residential onsite sewage septic systems and commercial onsite
sewage systems; and
(5) may exercise the powers granted by section 27.7 of this
chapter.
(c) The technical review panel shall include the following:
(1) A member of the staff of the state department, who shall serve
as the chair.
(2) A local health department environmental health specialist
appointed by the governor.
(3) An Indiana professional engineer registered under IC 25-31-1
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representing the American Council of Engineering Companies.
(4) A representative of the Indiana Builders Association.
(5) An Indiana registered professional soil scientist (as defined in
IC 25-31.5-1-6) representing the Indiana Registry of Soil
Scientists.
(6) A representative of an Indiana college or university with a
specialty in engineering, soil science, environmental health, or
biology appointed by the governor.
(7) A representative of the Indiana Onsite Wastewater
Professionals Association.
(8) An Indiana onsite sewage system contractor appointed by the
governor.
(9) A representative of the Indiana State Building and
Construction Trades Council.
All members of the technical review panel are voting members.
(d) In the case of a tie vote of the technical review panel, the
technical review panel shall, not more than seven (7) days after the day
of the tie vote:
(1) contact the applicant by phone call and by mail; and
(2) request more information or provide an explanation of how the
applicant can modify the application to make it more complete.
The technical review panel shall review any new information provided
by the applicant and vote again on the application not more than thirty
(30) days after receiving the information.
(e) The technical review panel shall do the following:
(1) Receive applications for the approval of TNI for general use
in:
(A) residential onsite sewage septic systems under sections 4
and 27 of this chapter and IC 16-41-25; and
(B) commercial onsite sewage systems under sections 4 and 27
of this chapter and IC 16-19-3.5.
(2) Meet at least four (4) times per year to review applications
described in subdivision (1).
(3) Notify each person who submits an application described in
subdivision (1):
(A) that the person's application has been received by the
technical review panel; and
(B) of whether the application is complete;
not later than thirty (30) days after the technical review panel
receives the application.
(4) Inform each person who submits an application described in
subdivision (1) of:
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(A) a tentative decision of the technical review panel; or
(B) the technical review panel's final decision under
subsection (f);
concerning the application not more than ninety (90) days after
the technical review panel notifies the person under subdivision
(3) that the panel has received the person's application.
(f) In response to each application described in subsection (e)(1),
the technical review panel shall make, and inform the applicant of, one
(1) of the following final decisions:
(1) That the TNI to which the application relates is approved for
general use in Indiana.
(2) That the TNI to which the application relates is approved for
use in Indiana with certain conditions, which may include:
(A) a requirement that the TNI be used initially only in a pilot
project;
(B) restrictions on the number or type of installations of the
TNI;
(C) sampling and analysis requirements for TNI involving or
comprising a secondary treatment system;
(D) requirements relating to training concerning the TNI;
(E) requirements concerning the operation and maintenance of
the TNI; or
(F) other requirements.
(3) That the TNI to which the application relates is approved on
a project-by-project basis.
(4) That the TNI is not approved for use in Indiana, which must
be accompanied by a statement of the reason for the decision.
(g) If the technical review panel makes a decision under subsection
(f)(4) that the TNI is not approved for use in Indiana, the applicant
may:
(1) submit a new application to the technical review panel under
this section; or
(2) file a petition for review of the technical review panel's
decision under IC 4-21.5-3.
(h) If the technical review panel fails to notify a person who submits
an application of the technical review panel's tentative decision or final
recommendation within ninety (90) days after receiving the application
as required by subsection (e)(4), the person who submitted the
application may use the TNI to which the application relates in a single
residential onsite sewage septic system or commercial onsite sewage
system, as if the TNI had been approved only for use in a pilot project.
(i) The technical review panel shall decide that the TNI to which an
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application relates is approved for general use in Indiana if:
(1) the TNI has been certified as meeting the NSF/ANSI 40
Standard;
(2) a proposed Indiana design and installation manual for the TNI
is submitted with the permit application; and
(3) the technical review panel certifies that the proposed Indiana
design and installation manual meets the vertical and horizontal
separation, sizing, and soil loading criteria of the state
department.
(j) Subsection (k) applies if:
(1) a particular TNI meets the requirements of NSF/ANSI 40,
NSF/ANSI 245, or NSF/ANSI 350;
(2) the proposed Indiana design and installation manual for the
TNI meets the vertical and horizontal separation, sizing, and soil
loading criteria of the state department; and
(3) an Indiana professional engineer registered under IC 25-31-1
prepares site specific plans for the use of the TNI for a residential
or commercial application.
(k) In a case described in subsection (j):
(1) if the TNI is to be used in a residential application, the site
specific plans prepared under subsection (j)(3), after being
submitted to the local health department of the county, city, or
multiple county unit in which the TNI would be installed, may be
approved by the local health department within the period set
forth in IC 16-41-25-1(a); and
(2) if the TNI is to be used in a commercial application, the site
specific plans prepared under subsection (j)(3) shall be approved
by the state department upon submission of the site specific plans.
(l) A local health department may not refuse an application for a
permit for the construction or installation of a residential onsite sewage
system (as defined in IC 16-41-25-0.4) solely because the residential
onsite sewage system has not been used previously in the jurisdiction
of the local health department or is unfamiliar to the local health
department, if either of the following apply:
(1) The residential onsite sewage system has been approved by
the technical review panel under this section for general use in
Indiana.
(2) The residential onsite sewage system:
(A) is based on one (1) or more sewage treatment or disposal
methods or processes; or
(B) incorporates equipment;
approved by the technical review panel under this section for
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general use in Indiana.
SECTION 5. IC 16-19-3-27.7 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2023]: Sec. 27.7. (a) Subject to subsection (b),
for all rules concerning residential onsite sewage systems, the state
department shall update:
(1) all matters incorporated by reference in the rules,
including all bulletins, standards, and specifications
incorporated by reference; and
(2) all industry standard practices reflected in the rules;
upon the recognition of new bulletins, standards, specifications,
and industry standard practices that supersede the bulletins,
standards, specifications, and industry standard practices
incorporated by reference or otherwise reflected in the rules.
(b) The technical review panel established under section 27.5(b)
of this chapter:
(1) may recognize and notify the state department of:
(A) new bulletins, standards, and specifications; and
(B) new industry standard practices;
for the purposes of subsection (a); and
(2) must approve updates described in subsection (a) before
the state department may update the rules concerning
residential onsite sewage systems under subsection (a).
(c) Updates approved by the technical review panel described in
subsection (b) and updated by the state department under
subsection (a) are effective one hundred eighty (180) days after the
publication of the updates.
(d) The technical review panel may only notify the state
department of updated:
(1) matters incorporated by reference in the rules, including
all bulletins, standards, and specifications incorporated by
reference; and
(2) industry standard practices reflected in the rules;
for publication once every two (2) years.
(e) The state department may publish the updates described in
subsection (a) not more than once every two (2) years.
SECTION 6. IC 16-19-3-27.8 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2023]: Sec. 27.8. (a) After June 30, 2023, a
county, city, or town ordinance concerning residential onsite
sewage systems that:
(1) would restrict or prohibit the use of technology new to
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Indiana that is approved for general use in Indiana under
section 27.5 of this chapter; or
(2) would otherwise vary from the rules concerning
residential onsite sewage systems, including rules updated
under section 27.7 of this chapter;
is subject to this section.
(b) After adopting an ordinance described in subsection (a), the
county, city, or town must submit the ordinance to the technical
review panel established under section 27.5(b) of this chapter,
along with a:
(1) request for approval of the ordinance;
(2) statement of the reasons for the restriction, prohibition, or
variance; and
(3) statement of financial impact.
(c) The technical review panel shall consider an ordinance
submitted by a county, city, or town under subsection (b). If the
technical review panel approves the ordinance by vote of a
majority of its members at a public meeting, the ordinance
becomes effective within the county, city, or town.
(d) An ordinance described in subsection (a) is not effective
unless it is approved by the technical review panel under this
section.
(e) If an ordinance described in subsection (a) was adopted
before July 1, 2023, the ordinance becomes void and unenforceable
on July 1, 2023.
(f) An ordinance described in subsection (a) may be readopted
if:
(1) the legislative body of county, city, or town votes to adopt
the ordinance after it expires on July 1, 2023; and
(2) after being readopted under subdivision (1), the ordinance
is:
(A) submitted to the technical review panel under
subsection (b); and
(B) approved by the technical review panel under
subsection (c).
SECTION 7. IC 16-19-3-27.9 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2023]: Sec. 27.9. (a) An ordinance described
in section 27.8(a) of this chapter may not be presented to the
technical review board for adoption before October 1, 2023.
(b) This section expires January 1, 2024.
SECTION 8. IC 16-41-25-7, AS ADDED BY P.L.167-2022,
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SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2023]: Sec. 7. (a) After June 30, 2023, a county, city, or town
ordinance may not impose adopt requirements, restrictions, or
conditions concerning the:
(1) design;
(2) construction;
(3) installation;
(4) location;
(5) maintenance; or
(6) operation; or
(7) inspection of a septic system before a sale;
of a residential onsite sewage system that are more stringent than the
requirements, restrictions, and conditions of the rule of the state
department concerning residential onsite sewage systems. After June
30, 2023, An ordinance that imposes requirements, restrictions, or
conditions that are more stringent than the requirements, restrictions,
and conditions of the state department's rule concerning residential
onsite sewage systems is void and may not be enforced. subject to
invalidation under IC 16-19-3-27.8(e).
(b) After June 30, 2023, a local health department may not impose
adopt requirements, restrictions, or conditions concerning the:
(1) design;
(2) construction;
(3) installation;
(4) location;
(5) maintenance; or
(6) operation; or
(7) inspection of a septic system before a sale;
of a residential onsite sewage system that are more stringent than the
requirements, restrictions, and conditions of the rule of the state
department concerning residential onsite sewage systems. After June
30, 2023, any requirements, restrictions, or conditions that are imposed
adopted by a local health department and that are more stringent than
the requirements, restrictions, and conditions of the state department's
rule concerning residential onsite sewage systems are void and may not
be enforced. unenforceable.
SECTION 9. IC 16-41-25-7.2 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2023]: Sec. 7.2. (a) As used in this section,
"sinkhole" means a depression or hole in the ground caused by
some form of collapse of the surface layer, as when subsurface
limestone is dissolved or worn away by the movement of water
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underground.
(b) A residential onsite sewage system shall not be installed in a
site less than twenty-five (25) feet from the edge of a sinkhole, as
identified by a professional soil scientist registered under
IC 25-31.5-4.
SECTION 10. IC 16-41-25-8, AS ADDED BY P.L.167-2022,
SECTION 13, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2023]: Sec. 8. (a) If:
(1) an application has been filed with a local health
department for a permit for the installation of a residential
onsite sewage system;
(2) a professional soil scientist registered under IC 25-31.5-4
has conducted an onsite evaluation, including a description of
the soil profile, and has determined that the proposed site of
the residential onsite sewage system is suitable for the
installation of the residential onsite sewage system; and
(3) the design and specifications for a the residential onsite
sewage system proposed for construction or installation at a
particular location the site described in subdivision (2) have
been approved by either:
(1) (A) the local health department; or
(2) (B) at the option and expense of the property owner:
(A) (i) a professional engineer registered under IC 25-31-1;
(B) a registered soil scientist (as defined in IC 25-31.5-1-7);
(C) (ii) an individual or entity engaged in the business of
constructing and installing residential onsite sewage
systems; and a septic system installer or inspector
registered with the county in which the residential onsite
sewage system would be installed; and
(D) (iii) the designer of the system, if the system was
designed by someone other than a person referred to in
clause (A) item (i) or (C); (ii);
the local health department shall issue a permit for the residential
onsite sewage system not later than thirty (30) business days after
receiving a complete application for the permit.
(b) Subject to IC 16-19-3-27.5, IC 16-19-3-27.6, and sections 5 and
6 of this chapter, this section does not affect the authority of a local
health department to inspect an onsite sewage system before or after
the system's installation.
SECTION 11. IC 16-41-25-8.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2023]: Sec. 8.5. (a) As used in this section,
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"lot" means the parcel of real property on which:
(1) a one (1) family or two (2) family dwelling; or
(2) two (2) single family dwellings located on the same
property with a combined design daily flow of not more than
seven hundred fifty (750) gallons per day;
have been constructed or are proposed for construction.
(b) A residential onsite sewage system may be installed in a lot
described in subsection (a) if at least one (1) site on the lot is
determined to be suitable for the installation of the residential
onsite sewage system.
SECTION 12. IC 16-41-25-10 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2023]: Sec. 10. (a) Neither an officer or
employee of a local health department nor another agency, officer,
or employee of a county, city, or town may enter property on which
a residential onsite sewage system is located for the purpose of
inspecting the residential onsite sewage system if, not more than
one hundred eighty (180) days before the date of the inspection, the
owner or occupant of the residence served by the residential onsite
sewage system and:
(1) a septic system installer or inspector registered with the
county in which the residential onsite sewage system is
located;
(2) an onsite sewage system technician; or
(3) an Indiana professional engineer registered under
IC 25-31-1;
state in a writing transmitted to the local health department,
county, city, or town that the residential onsite sewage system is
functioning properly.
(b) Subject to subsection (d), if subsection (a) does not apply, an
officer or employee of a local health department or another officer
or employee of a county, city, or town may not enter property on
which a residential onsite sewage system is located for the purpose
of inspecting the residential onsite sewage system unless the owner
or occupant of the residence served by the residential onsite sewage
system is given notice of the inspection by first class mail addressed
to the residence at least seven (7) days before the day of the
inspection.
(c) Subject to subsection (d), if a manufacturer of a residential
onsite sewage system requires inspection of the system multiple
times a year, an owner of the property on which a residential onsite
sewage system is located may request an officer or employee of a
HEA 1402 — CC 1 16
local health department or another agency, officer, or employee of
a county, city, or town to inspect the residential onsite sewage
system located on the owner's property, but the inspection may
only occur if the owner of the residential onsite sewage system
invites the inspector to the property.
(d) An advance notice to the owner or occupant of the residence
is not required under subsection (b) in an urgent situation caused
by a malfunction of the residential onsite sewage system that
creates a clear and immediate danger to the public's health, safety,
or property.
SECTION 13. IC 16-41-25-11 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2023]: Sec. 11. (a) As used in this section,
"residential onsite sewage system failure" means a residential
onsite sewage system that exhibits one (1) or more of the following:
(1) The onsite sewage system refuses to accept sewage at the
rate of design application and interferes with the normal use
of residential plumbing fixtures.
(2) Effluent discharge exceeds the absorptive capacity of the
soil, resulting in ponding, seepage, or other discharge of the
effluent to the ground surface or to surface waters.
(3) Effluent is discharged from the onsite sewage system
causing contamination of a potable water supply, ground
water, or surface waters.
(b) A local health department that determines that a residential
onsite sewage system is in residential onsite sewage system failure
may issue an order requiring that the failure be corrected.
However, an order issued under this subsection is stayed if the
owner or occupant of the residence served by the residential onsite
sewage system, within fourteen (14) days after the date of the
order, enters into a contract with:
(1) a septic system installer or inspector registered with the
county in which the residential onsite sewage system is
located;
(2) an onsite sewage system technician; or
(3) an Indiana professional engineer registered under
IC 25-31-1;
under which the installer or inspector, onsite sewage system
technician, or professional engineer agrees to conduct an
inspection to determine whether the residential onsite sewage
system is in residential onsite sewage system failure.
(c) An order is stayed under subsection (b) until the earlier of
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the following:
(1) The date on which the installer or inspector, technician, or
engineer performs the inspection and presents the results of
the inspection in writing to:
(A) the owner or occupant of the residence served by the
residential onsite sewage system; and
(B) the local health department.
(2) The expiration of forty-five (45) days after the date of the
order issued under subsection (b).
(d) If the installer or inspector, onsite sewage system technician,
or professional engineer states in the report provided to the local
health department that the residential onsite sewage system is not
in residential onsite sewage system failure, the local health
department shall:
(1) withdraw the order issued under subsection (b); or
(2) conduct an investigation of the residential onsite sewage
system to make a new determination whether the residential
onsite sewage system is in residential onsite sewage system
failure.
(e) If the local health department conducts an investigation
under subsection (d)(2), the order issued under subsection (b) is
stayed pending the new determination of the local health
department based on the investigation.
SECTION 14. IC 16-41-25-12 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2023]: Sec. 12. (a) As used in this section,
"onsite sewage system service" means:
(1) installing;
(2) inspecting; and
(3) providing maintenance and repair services for;
residential onsite sewage systems.
(b) An individual who:
(1) is registered with at least one (1) county in Indiana to
provide onsite sewage system service in the county;
(2) is:
(A) certified as an inspector or installer by the Indiana
Onsite Wastewater Professionals Association; and
(B) a member in good standing of the Indiana Onsite
Wastewater Professionals Association; and
(3) has not had the individual's registration revoked in any
county;
is entitled to provide onsite sewage system service in any county in
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Indiana.
(c) An individual entitled to provide onsite sewage system
service in any county under subsection (b) may be required to pay
a license fee in a county in which the individual provides onsite
sewage system service under subsection (b).
SECTION 15. IC 36-9-23-30, AS AMENDED BY P.L.107-2016,
SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2023]: Sec. 30. (a) Subject to subsection (b) and section 30.1
of this chapter, a municipality that operates sewage works under this
chapter or under any statute repealed by IC 19-2-5-30 (repealed
September 1, 1981) may require:
(1) connection to its sewer system of any property producing
sewage or similar waste; and
(2) discontinuance of the use of privies, cesspools, septic tanks,
and similar structures.
(b) A municipality may exercise the powers granted by subsection
(a) only if:
(1) there is an available sanitary sewer within three hundred (300)
feet of the property line of the affected property; and
(2) it has given notice by certified mail to the property owner at
the address of the property, at least ninety (90) days before the
date specified for connection in the notice and the notice
includes a list of the applicable exemptions from connecting
to the sewer system available to the property owner that are
described in IC 36-9-25-15.
(c) A municipality may establish, enforce, and collect reasonable
penalties for failure to make a connection under this section.
(d) A municipality may apply to the circuit or superior court for the
county in which it is located for an order to require a connection under
this section. The court shall assess the cost of the action and reasonable
attorney's fees of the municipality against the property owner in such
an action.
SECTION 16. IC 36-9-25-15, AS AMENDED BY P.L.167-2022,
SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2023]: Sec. 15. (a) The board, on its own initiative, whenever
any territory, by its contour and watershed, or because of the extension
of sewers by the municipality, is capable of draining sewage into or
connecting with the sanitary system, may incorporate any territory,
whether platted or unplatted, into the district by adopting a resolution
to that effect describing the reason it is to be included. A certified copy
of the resolution is conclusive evidence in any proceeding that the
territory described was properly incorporated and constitutes a part of
HEA 1402 — CC 1 19
the district, subject to this chapter.
(b) Immediately after the passage of a resolution under subsection
(a), a notice stating the time and place for a public hearing on the
resolution shall be published in accordance with IC 5-3-1. By the date
and time of the hearing any affected person may file in the office of the
board a written remonstrance to having the person's lands included.
The board shall either confirm, modify, or rescind the resolution after
the hearing. An appeal may be taken from the decision by one (1) or
more persons considering themselves aggrieved or injuriously affected,
as long as those appealing have filed written remonstrances, as
provided in this subsection, by filing their complaint within thirty (30)
days after the final decision of the board. The appeal shall be governed
by IC 34-13-6.
(c) If the court is satisfied upon hearing an appeal under subsection
(b):
(1) that less than seventy-five percent (75%) of the persons
owning property in the territory sought to be incorporated in the
district have remonstrated; and
(2) that the incorporation of the territory into the district will be
for its interest and will cause no manifest injury to the persons
owning property in the territory;
the court shall so find and the incorporation shall be ordered. If the
court is satisfied that seventy-five percent (75%) or more of the persons
owning property in the territory sought to be incorporated have
remonstrated, then the incorporation may not be ordered unless the
court further finds from the evidence that unless it is incorporated, the
health and welfare of residents of the territory or of the adjoining lands
will be materially affected and that the safety and welfare of the
inhabitants and property of other persons and property will be
endangered.
(d) Pending an appeal under subsection (b) and during the time
within which the appeal may be taken, the territory sought to be
incorporated is not a part of the district. Upon the determination of the
appeal, the judgment must particularly describe the resolution upon
which the appeal is based. The clerk of the court shall deliver a
certified copy of the judgment to the secretary of the board, who shall
record it in the minute book of the board and make a cross-reference to
the page upon the margin where the original resolution was recorded.
If a decision is adverse to an incorporation, further proceedings may
not be taken by the board to incorporate that territory within the district
for a period of one (1) year after the rendition of the judgment.
(e) Except as provided in subsection (n) and subject to subsections
HEA 1402 — CC 1 20
(f) through (m), a property owner whose property is incorporated into
a district under this section or section 14(b) of this chapter, regardless
of whether the property owner has filed a written remonstrance or an
appeal with respect to the incorporation, is exempt from a requirement
to connect to the district's sewer system and to discontinue use of a
sewage disposal system on the property owner's property if all of the
following conditions are met:
(1) The property owner's sewage disposal system is a septic tank
soil absorption system (as defined in IC 13-11-2-199.5) or
constructed wetland septic system (as defined in
IC 36-9-23-30.1(a)) that:
(A) was new at the time of installation; and
(B) was approved in writing by the local health department,
the department's designee, or a qualified inspector.
(2) The property owner, at the property owner's own expense,
obtains a written determination from the local health department
or the department's designee that the property owner's sewage
disposal system is not failing. The local health department or the
department's designee shall provide the owner with a written
determination not later than sixty (60) days after receipt of the
owner's request. If the local health department or the department's
designee fails to provide a written determination within the time
set forth in this subdivision, the owner, at the owner's expense,
may obtain a written determination from a qualified inspector. If
the local health department or the department's designee
determines that the sewage disposal system is failing, the property
owner may appeal the determination to the board of the local
health department. The decision of the board of the local health
department is final and binding.
(3) The property owner provides the board with:
(A) a written notification of potential qualification for the
exemption, as described in subsection (h); and
(B) the written determination described in subdivision (2);
within the time limits set forth in subsection (h).
(f) If the property owner, within the time allowed under subsection
(h), notifies the board in writing of the property owner's potential
qualification for the exemption, the board shall, until the property
owner's eligibility for the exemption is determined, suspend the
requirement that the property owner discontinue use of the property
owner's sewage disposal system and connect to the district's sewer
system.
(g) A property owner who qualifies for the exemption provided
HEA 1402 — CC 1 21
under this section may not be required to connect to the district's sewer
system for a period of ten (10) years beginning on the date of the
written determination of the local health department, the department's
designee, or a qualified inspector under subsection (e)(2) that the
property owner's sewage disposal system is not failing. A property
owner may apply for two (2) five (5) year extensions of the exemption
provided under this section by following the procedures set forth in this
section. If ownership of an exempt property is transferred during a
valid exemption period, including during an extension of an initial
exemption:
(1) the exemption applies to the subsequent owner of the property
for the remainder of the exemption period during which the
transfer occurred; and
(2) the subsequent owner may apply for any remaining
extensions.
However, the total period during which a property may be exempt from
the requirement to connect to a district's sewer system under this
section may not exceed twenty (20) years, regardless of ownership of
the property.
(h) To qualify for an exemption under this section, a property owner
must:
(1) not later than sixty (60) days after being notified of the
requirement to connect to the district's sewer system, notify the
board in writing that the property owner qualifies for an
exemption under this section; and
(2) not later than one hundred twenty (120) days after the board
receives the written notice provided under subdivision (1),
provide the board with the written determination required under
subsection (e)(2).
(i) When a property owner who qualifies for an exemption under
this section subsequently discontinues use of the property owner's
sewage disposal system and connects to the district's sewer system, the
property owner may be required to pay only the following to connect
to the sewer system:
(1) The connection fee the property owner would have paid if the
property owner connected to the sewer system on the first date the
property owner could have connected to the sewer system.
(2) Any additional costs:
(A) considered necessary by; and
(B) supported by documentary evidence provided by;
the board.
(j) A property owner who connects to a district's sewer system may
HEA 1402 — CC 1 22
provide, at the owner's expense, labor, equipment, materials, or any
combination of labor, equipment, and materials from any source to
accomplish the connection to the sewer system, subject to inspection
and approval by the board or a designee of the board.
(k) This section does not affect the authority of the state Indiana
department of health, a local health department, or a county health
officer with respect to a sewage disposal system.
(l) For purposes of this section, a sewage disposal system is "failing"
if one (1) or more of the following apply:
(1) The system refuses to accept sewage at the rate of design
application and interferes with the normal use of plumbing
fixtures.
(2) Effluent discharge exceeds the absorptive capacity of the soil
into which the system discharges, resulting in ponding, seepage,
or other discharge of the effluent to the ground surface or to
surface waters.
(3) Effluent discharged from the system contaminates a potable
water supply, ground water, or surface waters.
(m) As used in this section, "qualified inspector" means any of the
following:
(1) An employee of a local health department who is designated
by the local health department as having sufficient knowledge of
onsite sewage systems to determine if an onsite sewage system is
failing.
(2) An individual who is certified by the Indiana Onsite
Wastewater Professionals Association as an onsite sewage system
installer or inspector.
(3) An individual listed by the state Indiana department of health
or a local health department with jurisdiction over the service area
of the property inspected as having sufficient knowledge of onsite
sewage systems to determine if an onsite sewage system is failing.
(n) Subsections (e) through (i) do not apply to a property owner
whose property is incorporated into a district under this section or
section 14(b) of this chapter if:
(1) the district has received approval from the Indiana finance
authority before January 1, 2022, of a preliminary engineering
report:
(A) for a project to construct the sewer line to which the
property owner's property is being required to connect; and
(B) in connection with funding from the wastewater or
drinking water revolving loan program under IC 5-1.2-10; and
(2) the timing and requirements for connection to the district's
HEA 1402 — CC 1 23
sewer system are the same for all property owners being required
to connect to the district's sewer system under the terms of the
project.
(o) Immediately after the adoption of a resolution under
subsection (a), and following the completion of any appeals under
subsections (b) and (c), the board shall do the following:
(1) Notify any impacted property owners of the sewer project
within three hundred (300) feet of the property line.
(2) Give notice by certified mail to the property owner at the
address of the property at least ninety (90) days before the
date specified for mandatory connection in the notice.
(3) Give notice by certified mail to the property owner at the
address of the property of the applicable exemptions from
connecting to the sewer system available to the property
owner that are described in subsection (e) at least ninety (90)
days before the date specified for connection in the notice.
HEA 1402 — CC 1 Speaker of the House of Representatives
President of the Senate
President Pro Tempore
Governor of the State of Indiana
Date: Time:
HEA 1402 — CC 1