*EH1206.1*
February 16, 2024
ENGROSSED
HOUSE BILL No. 1206
_____
DIGEST OF HB 1206 (Updated February 15, 2024 9:54 am - DI 119)
Citations Affected: IC 8-1.
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)
Specifies that a sewage disposal company that is subject to the
jurisdiction of the IURC for having been issued more than one
enforcement order from the department of environmental management
(department) may not seek to withdraw from the IURC's jurisdiction
during the rate regulation period prescribed in the statute setting forth
various requirements with respect to wastewater utilities that have been
issued one or more enforcement orders by the department. (2)
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. (3) Provides that notice of the meeting on the question of the
IURC's jurisdiction over the utility must be sent not less than 45 days
(Continued next page)
Effective: Upon passage.
Meltzer, Zimmerman
(SENATE SPONSOR — KOCH)
January 9, 2024, read first time and referred to Committee on Utilities, Energy and
Telecommunications.
January 18, 2024, amended, reported — Do Pass.
January 22, 2024, read second time, ordered engrossed. Engrossed.
January 23, 2024, read third time, passed. Yeas 94, nays 1.
SENATE ACTION
February 5, 2024, read first time and referred to Committee on Utilities.
February 15, 2024, reported favorably — Do Pass.
EH 1206—LS 6863/DI 101 Digest Continued
(instead of 30 days, under current law) before the meeting and must
include: (A) instructions regarding 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. (4) 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. (5) 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
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. (6) Makes conforming changes.
EH 1206—LS 6863/DI 101EH 1206—LS 6863/DI 101 February 16, 2024
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.
ENGROSSED
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 8-1-2.7-2 IS AMENDED TO READ AS
2 FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 2. (a) This chapter
3 provides the exclusive statutory manner for a utility described in
4 section 1.3(a)(1) or 1.3(a)(2) of this chapter to withdraw from the
5 jurisdiction of the commission for the approval of the following:
6 (1) Rates and charges.
7 (2) Stocks, bonds, notes, or other evidence of indebtedness.
8 (3) Rules.
9 (4) The annual report filing requirement.
10 (b) Notwithstanding any other provision in this article, a sewer
11 disposal company described in section 1.3(a)(2) of this chapter shall
12 not initiate operations or provide service or seek commission authority
13 to do so within a territory for which the commission has granted
14 operating and territorial authority to any other entity, which has not
15 been revoked.
EH 1206—LS 6863/DI 101 2
1 (c) A sewage disposal company described in section 1.3(a)(2) of this
2 chapter that has withdrawn from commission jurisdiction under this
3 chapter shall offer service to all customers within the territory for
4 which the commission has granted the utility territorial authority.
5 (d) A sewage disposal company described in section 1.3(a)(2) of
6 this chapter that is subject to the commission's jurisdiction under
7 IC 8-1-1.9-5(e)(2) for having been issued more than one (1)
8 enforcement order (as defined in IC 8-1-1.9-5(c)) within the time
9 specified in IC 8-1-1.9-5(e)(2) may not seek to withdraw from the
10 commission's jurisdiction under this chapter during the rate
11 regulation period set forth in IC 8-1-1.9-5(e)(2).
12 SECTION 2. IC 8-1-2.7-5 IS AMENDED TO READ AS
13 FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 5. (a) The
14 referendum must be conducted at a special meeting called by the board.
15 Written notice of the meeting must be sent to every member or
16 shareholder of the withdrawing utility and to the secretary of the
17 commission not less than thirty (30) forty-five (45) days before the
18 date of the meeting. The notice must contain the following information:
19 (1) The place, date, and hour of the meeting.
20 (2) The purpose of the meeting, including an explanation of what
21 the withdrawal from commission jurisdiction entails.
22 (3) The fact that no proxies will be permitted.
23 (4) A statement that a member or shareholder may cast a vote
24 by secret absentee ballot.
25 (b) The notice provided under subsection (a) must include:
26 (1) instructions for how a member or shareholder who wishes
27 to cast a vote by absentee ballot may request an absentee
28 ballot;
29 (2) a statement that a request for an absentee ballot precludes
30 a member or shareholder from voting in person at the
31 meeting held on the question of withdrawal from the
32 commission's jurisdiction;
33 (3) instructions that a member or shareholder voting by
34 absentee ballot must:
35 (A) return the absentee ballot by United States mail; or
36 (B) deliver the absentee ballot in person to the offices of the
37 utility; and
38 (4) the deadline for returning or delivering an absentee ballot,
39 which must be:
40 (A) not earlier than ten (10) calendar days; and
41 (B) not later than five (5) calendar days;
42 before the meeting on the question of withdrawal, along with
EH 1206—LS 6863/DI 101 3
1 information as to when an absentee ballot will be considered
2 received by the board.
3 (c) The form of an absentee ballot authorized by this section
4 must be as follows:
5 [] YES, I want to withdraw from the jurisdiction of the
6 commission.
7 [] NO, I want to remain under the jurisdiction of the
8 commission.
9 (d) An absentee ballot authorized by this section must not:
10 (1) require a member or shareholder to include the member's
11 or shareholder's name on the absentee ballot or to sign the
12 absentee ballot; or
13 (2) be marked with any number or identifier that can be
14 traced to the member or shareholder;
15 so as to compromise the confidentiality of the member's or
16 shareholder's vote.
17 SECTION 3. IC 8-1-2.7-6 IS AMENDED TO READ AS
18 FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 6. A quorum
19 consisting of not less than five percent (5%) of the members or
20 shareholders must:
21 (1) be present at the meeting; or
22 (2) vote by absentee ballot;
23 to transact business and to take official action regarding the jurisdiction
24 question.
25 SECTION 4. IC 8-1-2.7-7 IS AMENDED TO READ AS
26 FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 7. The board shall
27 distribute secret written ballots to the members or shareholders present
28 at the meeting. The form of the ballots must be as follows:
29 [] YES, I want to withdraw from the jurisdiction of the
30 commission.
31 [] NO, I want to remain under the jurisdiction of the commission.
32 Only those members or shareholders present at the meeting are eligible
33 to vote, and proxy votes are not permitted. Each member or shareholder
34 present is entitled to one (1) vote, either in person at the meeting or
35 by absentee ballot, on the question of withdrawal from commission
36 jurisdiction. Proxy votes may not be permitted. If a majority of
37 voting members or shareholders present vote in favor of the utility
38 withdrawing from commission jurisdiction, the withdrawal becomes
39 effective thirty (30) days after the date of the meeting at which the
40 vote is conducted. If less than a majority of the voting members or
41 shareholders present vote in favor of withdrawal from commission
42 jurisdiction, the utility is prohibited from seeking withdrawal for two
EH 1206—LS 6863/DI 101 4
1 (2) years following the date of the meeting at which the vote is
2 conducted.
3 SECTION 5. IC 8-1-2.7-10 IS AMENDED TO READ AS
4 FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 10. (a) If a utility
5 successfully withdraws from commission jurisdiction, the board of
6 directors shall, within five (5) days of the meeting, send written
7 confirmation to the secretary of the commission containing the
8 following information:
9 (1) The total membership or number of shareholders of the utility.
10 (2) The total number of members or shareholders:
11 (A) present at the meeting; and
12 (B) voting by absentee ballot.
13 (3) The vote totals both for and against withdrawal.
14 (4) Written verification of notice of the meeting.
15 (5) An affidavit, signed by all of the members of the board of
16 directors, stating that all of the requirements of this chapter have
17 been met.
18 (b) If a utility successfully withdraws from commission jurisdiction,
19 the utility is not required to pay the public utility fee imposed under
20 IC 8-1-6.
21 (c) Notwithstanding any other provision of this chapter, a utility
22 described in section 1.3(a)(2) of this chapter that has withdrawn from
23 commission jurisdiction remains subject to commission jurisdiction
24 with regard to the requirements of IC 8-1-2-89(f).
25 (d) Whenever two (2) or more utilities described in section 1.3(a)(1)
26 or 1.3(a)(2) of this chapter propose to consolidate, and at least one (1),
27 but not all of the utilities have withdrawn from commission
28 jurisdiction, then the following apply:
29 (1) For purposes of the consolidation, all of the utilities are under
30 the commission's jurisdiction.
31 (2) The new corporation that is formed as a result of the
32 consolidation is under the commission's jurisdiction for all
33 purposes and must fully comply with this chapter in order to
34 withdraw from commission jurisdiction.
35 (e) If two (2) or more utilities described in section 1.3(a)(1)(C) or
36 1.3(a)(2)(C) of this chapter propose to consolidate, and all of the
37 cooperatives have withdrawn from commission jurisdiction, the new
38 utility continues to operate outside the commission's jurisdiction under
39 the terms of this section.
40 (f) The commission's approval is not required for consolidation of
41 two (2) or more utilities that have all withdrawn from commission
42 jurisdiction.
EH 1206—LS 6863/DI 101 5
1 SECTION 6. IC 8-1-2.7-12 IS AMENDED TO READ AS
2 FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 12. If a utility
3 returns to commission jurisdiction, the commission assumes
4 jurisdiction over the following thirty (30) days after the date of the
5 meeting at which the vote over the following: is conducted:
6 (1) Rates and charges.
7 (2) Stocks, bonds, notes, or other evidence of indebtedness.
8 (3) Rules.
9 (4) The annual report filing requirement.
10 If less than a majority of the voting members or shareholders present
11 vote in favor of returning to commission jurisdiction, a referendum on
12 the question may not be conducted for four (4) two (2) years following
13 the date of the meeting at which the vote is conducted.
14 SECTION 7. IC 8-1-2.7-13 IS AMENDED TO READ AS
15 FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 13. If a utility
16 attempts to return to commission jurisdiction, the board of directors
17 shall, within five (5) days following the meeting, send written
18 confirmation to the secretary of the commission containing the
19 following information:
20 (1) The total membership or number of shareholders of the utility.
21 (2) The total number of members or shareholders:
22 (A) present at the meeting; and
23 (B) voting by absentee ballot.
24 (3) The vote totals both for and against the return.
25 (4) Written verification of notice of the meeting.
26 (5) An affidavit, signed by all the members of the board of
27 directors, stating that all of the requirements of this chapter have
28 been met.
29 SECTION 8. IC 8-1-2.7-14.5 IS AMENDED TO READ AS
30 FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 14.5. (a) This
31 section applies when a utility fails to follow the procedures provided in
32 this chapter for withdrawal from or return to the commission's
33 jurisdiction.
34 (b) To contest compliance with this chapter:
35 (1) parties aggrieved by the decision to withdraw from or return
36 to commission jurisdiction; or
37 (2) other interested parties;
38 must file an action in the circuit or superior court with jurisdiction in
39 the county where the utility has its principal office.
40 (c) An action filed under this section must be filed not later than
41 thirty (30) days after the date of the meeting at which the vote
42 regarding commission jurisdiction over the utility is conducted.
EH 1206—LS 6863/DI 101 6
1 SECTION 9. An emergency is declared for this act.
EH 1206—LS 6863/DI 101 7
COMMITTEE REPORT
Mr. Speaker: Your Committee on Utilities, Energy and
Telecommunications, to which was referred House Bill 1206, has had
the same under consideration and begs leave to report the same back
to the House with the recommendation that said bill be amended as
follows:
Page 1, between the enacting clause and line 1, begin a new
paragraph and insert:
"SECTION 1. IC 8-1-2.7-2 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 2. (a) This chapter
provides the exclusive statutory manner for a utility described in
section 1.3(a)(1) or 1.3(a)(2) of this chapter to withdraw from the
jurisdiction of the commission for the approval of the following:
(1) Rates and charges.
(2) Stocks, bonds, notes, or other evidence of indebtedness.
(3) Rules.
(4) The annual report filing requirement.
(b) Notwithstanding any other provision in this article, a sewer
disposal company described in section 1.3(a)(2) of this chapter shall
not initiate operations or provide service or seek commission authority
to do so within a territory for which the commission has granted
operating and territorial authority to any other entity, which has not
been revoked.
(c) A sewage disposal company described in section 1.3(a)(2) of this
chapter that has withdrawn from commission jurisdiction under this
chapter shall offer service to all customers within the territory for
which the commission has granted the utility territorial authority.
(d) A sewage disposal company described in section 1.3(a)(2) of
this chapter that is subject to the commission's jurisdiction under
IC 8-1-1.9-5(e)(2) for having been issued more than one (1)
enforcement order (as defined in IC 8-1-1.9-5(c)) within the time
specified in IC 8-1-1.9-5(e)(2) may not seek to withdraw from the
commission's jurisdiction under this chapter during the rate
regulation period set forth in IC 8-1-1.9-5(e)(2).".
Renumber all SECTIONS consecutively.
and when so amended that said bill do pass.
(Reference is to HB 1206 as introduced.)
SOLIDAY
Committee Vote: yeas 12, nays 0.
EH 1206—LS 6863/DI 101 8
COMMITTEE REPORT
Madam President: The Senate Committee on Utilities, to which was
referred House Bill No. 1206, has had the same under consideration
and begs leave to report the same back to the Senate with the
recommendation that said bill DO PASS.
(Reference is to HB 1206 as printed January 18, 2024.)
KOCH, Chairperson
Committee Vote: Yeas 9, Nays 0
EH 1206—LS 6863/DI 101