Second Regular Session of the 123rd General Assembly (2024)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
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between statutes enacted by the 2023 Regular Session of the General Assembly.
HOUSE ENROLLED ACT No. 1206
AN ACT to amend the Indiana Code concerning utilities.
Be it enacted by the General Assembly of the State of Indiana:
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been revoked.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chapter that has withdrawn from commission jurisdiction under this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)
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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).
SECTION 2. IC 8-1-2.7-5 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 5. (a) The
referendum must be conducted at a special meeting called by the board.
Written notice of the meeting must be sent to every member or
shareholder of the withdrawing utility and to the secretary of the
commission not less than thirty (30) forty-five (45) days before the
date of the meeting. The notice must contain the following information:
(1) The place, date, and hour of the meeting.
(2) The purpose of the meeting, including an explanation of what
the withdrawal from commission jurisdiction entails.
(3) The fact that no proxies will be permitted.
(4) A statement that a member or shareholder may cast a vote
by secret absentee ballot.
(b) The notice provided under subsection (a) must include:
(1) instructions for how a member or shareholder who wishes
to cast a vote by absentee ballot may request an absentee
ballot;
(2) 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
commission's jurisdiction;
(3) instructions that a member or shareholder voting by
absentee ballot must:
(A) return the absentee ballot by United States mail; or
(B) deliver the absentee ballot in person to the offices of the
utility; and
(4) the deadline for returning or delivering an absentee ballot,
which must be:
(A) not earlier than ten (10) calendar days; and
(B) not later than five (5) calendar days;
before the meeting on the question of withdrawal, along with
information as to when an absentee ballot will be considered
received by the board.
(c) The form of an absentee ballot authorized by this section
must be as follows:
[] YES, I want to withdraw from the jurisdiction of the
commission.
[] NO, I want to remain under the jurisdiction of the
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commission.
(d) An absentee ballot authorized by this section must not:
(1) require a member or shareholder to include the member's
or shareholder's name on the absentee ballot or to sign the
absentee ballot; or
(2) be marked with any number or identifier that can be
traced to the member or shareholder;
so as to compromise the confidentiality of the member's or
shareholder's vote.
SECTION 3. IC 8-1-2.7-6 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 6. A quorum
consisting of not less than five percent (5%) of the members or
shareholders must:
(1) be present at the meeting; or
(2) vote by absentee ballot;
to transact business and to take official action regarding the jurisdiction
question.
SECTION 4. IC 8-1-2.7-7 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 7. The board shall
distribute secret written ballots to the members or shareholders present
at the meeting. The form of the ballots must be as follows:
[] YES, I want to withdraw from the jurisdiction of the
commission.
[] NO, I want to remain under the jurisdiction of the commission.
Only those members or shareholders present at the meeting are eligible
to vote, and proxy votes are not permitted. Each member or shareholder
present is entitled to one (1) vote, either in person at the meeting or
by absentee ballot, on the question of withdrawal from commission
jurisdiction. Proxy votes may not be permitted. If a majority of
voting members or shareholders present vote in favor of the utility
withdrawing from commission jurisdiction, the withdrawal becomes
effective thirty (30) days after the date of the meeting at which the
vote is conducted. If less than a majority of the voting members or
shareholders present vote in favor of withdrawal from commission
jurisdiction, the utility is prohibited from seeking withdrawal for two
(2) years following the date of the meeting at which the vote is
conducted.
SECTION 5. IC 8-1-2.7-10 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 10. (a) If a utility
successfully withdraws from commission jurisdiction, the board of
directors shall, within five (5) days of the meeting, send written
confirmation to the secretary of the commission containing the
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following information:
(1) The total membership or number of shareholders of the utility.
(2) The total number of members or shareholders:
(A) present at the meeting; and
(B) voting by absentee ballot.
(3) The vote totals both for and against withdrawal.
(4) Written verification of notice of the meeting.
(5) An affidavit, signed by all of the members of the board of
directors, stating that all of the requirements of this chapter have
been met.
(b) If a utility successfully withdraws from commission jurisdiction,
the utility is not required to pay the public utility fee imposed under
IC 8-1-6.
(c) Notwithstanding any other provision of this chapter, a utility
described in section 1.3(a)(2) of this chapter that has withdrawn from
commission jurisdiction remains subject to commission jurisdiction
with regard to the requirements of IC 8-1-2-89(f).
(d) Whenever two (2) or more utilities described in section 1.3(a)(1)
or 1.3(a)(2) of this chapter propose to consolidate, and at least one (1),
but not all of the utilities have withdrawn from commission
jurisdiction, then the following apply:
(1) For purposes of the consolidation, all of the utilities are under
the commission's jurisdiction.
(2) The new corporation that is formed as a result of the
consolidation is under the commission's jurisdiction for all
purposes and must fully comply with this chapter in order to
withdraw from commission jurisdiction.
(e) If two (2) or more utilities described in section 1.3(a)(1)(C) or
1.3(a)(2)(C) of this chapter propose to consolidate, and all of the
cooperatives have withdrawn from commission jurisdiction, the new
utility continues to operate outside the commission's jurisdiction under
the terms of this section.
(f) The commission's approval is not required for consolidation of
two (2) or more utilities that have all withdrawn from commission
jurisdiction.
SECTION 6. IC 8-1-2.7-12 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 12. If a utility
returns to commission jurisdiction, the commission assumes
jurisdiction over the following thirty (30) days after the date of the
meeting at which the vote over the following: is conducted:
(1) Rates and charges.
(2) Stocks, bonds, notes, or other evidence of indebtedness.
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(3) Rules.
(4) The annual report filing requirement.
If less than a majority of the voting members or shareholders present
vote in favor of returning to commission jurisdiction, a referendum on
the question may not be conducted for four (4) two (2) years following
the date of the meeting at which the vote is conducted.
SECTION 7. IC 8-1-2.7-13 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 13. If a utility
attempts to return to commission jurisdiction, the board of directors
shall, within five (5) days following the meeting, send written
confirmation to the secretary of the commission containing the
following information:
(1) The total membership or number of shareholders of the utility.
(2) The total number of members or shareholders:
(A) present at the meeting; and
(B) voting by absentee ballot.
(3) The vote totals both for and against the return.
(4) Written verification of notice of the meeting.
(5) An affidavit, signed by all the members of the board of
directors, stating that all of the requirements of this chapter have
been met.
SECTION 8. IC 8-1-2.7-14.5 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 14.5. (a) This
section applies when a utility fails to follow the procedures provided in
this chapter for withdrawal from or return to the commission's
jurisdiction.
(b) To contest compliance with this chapter:
(1) parties aggrieved by the decision to withdraw from or return
to commission jurisdiction; or
(2) other interested parties;
must file an action in the circuit or superior court with jurisdiction in
the county where the utility has its principal office.
(c) An action filed under this section must be filed not later than
thirty (30) days after the date of the meeting at which the vote
regarding commission jurisdiction over the utility is conducted.
SECTION 9. An emergency is declared for this act.
HEA 1206 Speaker of the House of Representatives
President of the Senate
President Pro Tempore
Governor of the State of Indiana
Date: Time:
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