Introduced Version
HOUSE BILL No. 1206
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 8-1-2.7.
Synopsis: Voting by small water and wastewater utilities. Amends as
follows the statute setting forth the procedures by which certain small
water or wastewater utilities may withdraw from and return to the
jurisdiction of the Indiana utility regulatory commission (IURC): (1)
Authorizes a member or shareholder of the utility to cast a vote by
secret absentee ballot on the question of the IURC's jurisdiction over
the utility. (2) Provides that the notice of the meeting on the question
of the IURC's jurisdiction over the utility must be sent not less than 45
days (instead of 30 days, under current law) before the meeting and
must include: (A) instructions for how a member or shareholder who
wishes to cast a vote by absentee ballot may request an absentee ballot;
(B) a statement that a request for an absentee ballot precludes a
member or shareholder from voting in person at the meeting held on
the question of withdrawal from the IURC's jurisdiction; (C)
instructions for returning or delivering an absentee ballot; and (D) the
deadline for returning an absentee ballot, which must be: (i) not earlier
than 10 calendar days; and (ii) not later than five calendar days; before
the meeting on the question, along with information as to when an
absentee ballot will be considered received by the board. (3) Provides
that the 5% quorum required for members or shareholders to transact
business and to take official action regarding the question of the
IURC's jurisdiction over the utility includes votes cast by absentee
ballot. (4) Provides that if: (A) a utility successfully withdraws from the
IURC's jurisdiction; (B) after the withdrawal, a referendum is held on
the question of the utility returning to the IURC's jurisdiction; and (C)
less than a majority of the votes cast are in favor of returning to the
(Continued next page)
Effective: Upon passage.
Meltzer
January 9, 2024, read first time and referred to Committee on Utilities, Energy and
Telecommunications.
2024 IN 1206—LS 6863/DI 101 Digest Continued
IURC's jurisdiction; another referendum on the question of returning
to the IURC's jurisdiction may not be conducted for two years (instead
of four years, under current law) following the date of the meeting at
which the vote is conducted. (5) Makes conforming changes.
2024 IN 1206—LS 6863/DI 1012024 IN 1206—LS 6863/DI 101 Introduced
Second Regular Session of the 123rd General Assembly (2024)
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 2023 Regular Session of the General Assembly.
HOUSE BILL No. 1206
A BILL FOR AN ACT to amend the Indiana Code concerning
utilities.
Be it enacted by the General Assembly of the State of Indiana:
1 SECTION 1. IC 8-1-2.7-5 IS AMENDED TO READ AS
2 FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 5. (a) The
3 referendum must be conducted at a special meeting called by the board.
4 Written notice of the meeting must be sent to every member or
5 shareholder of the withdrawing utility and to the secretary of the
6 commission not less than thirty (30) forty-five (45) days before the
7 date of the meeting. The notice must contain the following information:
8 (1) The place, date, and hour of the meeting.
9 (2) The purpose of the meeting, including an explanation of what
10 the withdrawal from commission jurisdiction entails.
11 (3) The fact that no proxies will be permitted.
12 (4) A statement that a member or shareholder may cast a vote
13 by secret absentee ballot.
14 (b) The notice provided under subsection (a) must include:
15 (1) instructions for how a member or shareholder who wishes
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1 to cast a vote by absentee ballot may request an absentee
2 ballot;
3 (2) a statement that a request for an absentee ballot precludes
4 a member or shareholder from voting in person at the
5 meeting held on the question of withdrawal from the
6 commission's jurisdiction;
7 (3) instructions that a member or shareholder voting by
8 absentee ballot must:
9 (A) return the absentee ballot by United States mail; or
10 (B) deliver the absentee ballot in person to the offices of the
11 utility; and
12 (4) the deadline for returning or delivering an absentee ballot,
13 which must be:
14 (A) not earlier than ten (10) calendar days; and
15 (B) not later than five (5) calendar days;
16 before the meeting on the question of withdrawal, along with
17 information as to when an absentee ballot will be considered
18 received by the board.
19 (c) The form of an absentee ballot authorized by this section
20 must be as follows:
21 [] YES, I want to withdraw from the jurisdiction of the
22 commission.
23 [] NO, I want to remain under the jurisdiction of the
24 commission.
25 (d) An absentee ballot authorized by this section must not:
26 (1) require a member or shareholder to include the member's
27 or shareholder's name on the absentee ballot or to sign the
28 absentee ballot; or
29 (2) be marked with any number or identifier that can be
30 traced to the member or shareholder;
31 so as to compromise the confidentiality of the member's or
32 shareholder's vote.
33 SECTION 2. IC 8-1-2.7-6 IS AMENDED TO READ AS
34 FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 6. A quorum
35 consisting of not less than five percent (5%) of the members or
36 shareholders must:
37 (1) be present at the meeting; or
38 (2) vote by absentee ballot;
39 to transact business and to take official action regarding the jurisdiction
40 question.
41 SECTION 3. IC 8-1-2.7-7 IS AMENDED TO READ AS
42 FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 7. The board shall
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1 distribute secret written ballots to the members or shareholders present
2 at the meeting. The form of the ballots must be as follows:
3 [] YES, I want to withdraw from the jurisdiction of the
4 commission.
5 [] NO, I want to remain under the jurisdiction of the commission.
6 Only those members or shareholders present at the meeting are eligible
7 to vote, and proxy votes are not permitted. Each member or shareholder
8 present is entitled to one (1) vote, either in person at the meeting or
9 by absentee ballot, on the question of withdrawal from commission
10 jurisdiction. Proxy votes may not be permitted. If a majority of
11 voting members or shareholders present vote in favor of the utility
12 withdrawing from commission jurisdiction, the withdrawal becomes
13 effective thirty (30) days after the date of the meeting at which the
14 vote is conducted. If less than a majority of the voting members or
15 shareholders present vote in favor of withdrawal from commission
16 jurisdiction, the utility is prohibited from seeking withdrawal for two
17 (2) years following the date of the meeting at which the vote is
18 conducted.
19 SECTION 4. IC 8-1-2.7-10 IS AMENDED TO READ AS
20 FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 10. (a) If a utility
21 successfully withdraws from commission jurisdiction, the board of
22 directors shall, within five (5) days of the meeting, send written
23 confirmation to the secretary of the commission containing the
24 following information:
25 (1) The total membership or number of shareholders of the utility.
26 (2) The total number of members or shareholders:
27 (A) present at the meeting; and
28 (B) voting by absentee ballot.
29 (3) The vote totals both for and against withdrawal.
30 (4) Written verification of notice of the meeting.
31 (5) An affidavit, signed by all of the members of the board of
32 directors, stating that all of the requirements of this chapter have
33 been met.
34 (b) If a utility successfully withdraws from commission jurisdiction,
35 the utility is not required to pay the public utility fee imposed under
36 IC 8-1-6.
37 (c) Notwithstanding any other provision of this chapter, a utility
38 described in section 1.3(a)(2) of this chapter that has withdrawn from
39 commission jurisdiction remains subject to commission jurisdiction
40 with regard to the requirements of IC 8-1-2-89(f).
41 (d) Whenever two (2) or more utilities described in section 1.3(a)(1)
42 or 1.3(a)(2) of this chapter propose to consolidate, and at least one (1),
2024 IN 1206—LS 6863/DI 101 4
1 but not all of the utilities have withdrawn from commission
2 jurisdiction, then the following apply:
3 (1) For purposes of the consolidation, all of the utilities are under
4 the commission's jurisdiction.
5 (2) The new corporation that is formed as a result of the
6 consolidation is under the commission's jurisdiction for all
7 purposes and must fully comply with this chapter in order to
8 withdraw from commission jurisdiction.
9 (e) If two (2) or more utilities described in section 1.3(a)(1)(C) or
10 1.3(a)(2)(C) of this chapter propose to consolidate, and all of the
11 cooperatives have withdrawn from commission jurisdiction, the new
12 utility continues to operate outside the commission's jurisdiction under
13 the terms of this section.
14 (f) The commission's approval is not required for consolidation of
15 two (2) or more utilities that have all withdrawn from commission
16 jurisdiction.
17 SECTION 5. IC 8-1-2.7-12 IS AMENDED TO READ AS
18 FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 12. If a utility
19 returns to commission jurisdiction, the commission assumes
20 jurisdiction over the following thirty (30) days after the date of the
21 meeting at which the vote over the following: is conducted:
22 (1) Rates and charges.
23 (2) Stocks, bonds, notes, or other evidence of indebtedness.
24 (3) Rules.
25 (4) The annual report filing requirement.
26 If less than a majority of the voting members or shareholders present
27 vote in favor of returning to commission jurisdiction, a referendum on
28 the question may not be conducted for four (4) two (2) years following
29 the date of the meeting at which the vote is conducted.
30 SECTION 6. IC 8-1-2.7-13 IS AMENDED TO READ AS
31 FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 13. If a utility
32 attempts to return to commission jurisdiction, the board of directors
33 shall, within five (5) days following the meeting, send written
34 confirmation to the secretary of the commission containing the
35 following information:
36 (1) The total membership or number of shareholders of the utility.
37 (2) The total number of members or shareholders:
38 (A) present at the meeting; and
39 (B) voting by absentee ballot.
40 (3) The vote totals both for and against the return.
41 (4) Written verification of notice of the meeting.
42 (5) An affidavit, signed by all the members of the board of
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1 directors, stating that all of the requirements of this chapter have
2 been met.
3 SECTION 7. IC 8-1-2.7-14.5 IS AMENDED TO READ AS
4 FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 14.5. (a) This
5 section applies when a utility fails to follow the procedures provided in
6 this chapter for withdrawal from or return to the commission's
7 jurisdiction.
8 (b) To contest compliance with this chapter:
9 (1) parties aggrieved by the decision to withdraw from or return
10 to commission jurisdiction; or
11 (2) other interested parties;
12 must file an action in the circuit or superior court with jurisdiction in
13 the county where the utility has its principal office.
14 (c) An action filed under this section must be filed not later than
15 thirty (30) days after the date of the meeting at which the vote
16 regarding commission jurisdiction over the utility is conducted.
17 SECTION 8. An emergency is declared for this act.
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