Introduced Version SENATE BILL No. 206 _____ DIGEST OF INTRODUCED BILL Citations Affected: IC 13-13-5-1.5; IC 13-14-2-9; IC 13-15; IC 13-20-10.5-3.5; IC 13-21-5-2; IC 13-25-4; IC 13-26. Synopsis: IDEM agency bill. Allows the department of environmental management (IDEM) to use electronic means to complete mail delivery communications, accept applications, post public notices, and provide access to documents for public comment. Requires existing easements to be identified in a corrective action plan before an environmental restrictive covenant is approved. Creates a cause of action for a responsible party to sue a property owner to receive access to a site to perform remediation activities. Requires the IDEM to make a determination, within 90 days, concerning prior approval for constructing or expanding a biomass anaerobic digestion facility or biomass gasification facility. Effective: July 1, 2024. Niemeyer January 9, 2024, read first time and referred to Committee on Environmental Affairs. 2024 IN 206—LS 6506/DI 150 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. SENATE BILL No. 206 A BILL FOR AN ACT to amend the Indiana Code concerning environmental law. Be it enacted by the General Assembly of the State of Indiana: 1 SECTION 1. IC 13-13-5-1.5 IS ADDED TO THE INDIANA CODE 2 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 3 1, 2024]: Sec. 1.5. (a) Subject to subsection (b), the department, to 4 increase efficiency and communication in carrying out the 5 purposes of section 1 of this chapter, may determine as appropriate 6 when to use electronic means to do the following: 7 (1) Deliver mail communications required by rule. 8 (2) Accept applications required by rule. 9 (3) Post public notices required by rule. 10 (4) Provide access to documents for public comment required 11 by rule. 12 (5) Store documents for future access required by rule. 13 (b) The department shall comply with IC 13-14-13 when using 14 electronic means for the purposes described in subsection (a). 15 SECTION 2. IC 13-14-2-9, AS ADDED BY P.L.220-2014, 16 SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 17 JULY 1, 2024]: Sec. 9. (a) This section applies to a restrictive covenant 2024 IN 206—LS 6506/DI 150 2 1 created in connection with a remediation project conducted under: 2 (1) IC 13-22; 3 (2) IC 13-23; 4 (2) (3) IC 13-24; 5 (3) (4) IC 13-25-4; or 6 (4) (5) IC 13-25-5. 7 (b) A restrictive covenant created in accordance with 8 IC 13-25-4-24 may be modified or removed if a change of 9 conditions or an advancement in science or technology permits any 10 of the following: 11 (1) a change of conditions or an advancement in science or 12 technology permits a modification of the conditions and 13 restrictions imposed by a restrictive covenant; and 14 (2) the (1) A modification of the to a conditions and restrictions 15 condition or restriction contained in a imposed by the 16 restrictive covenant. would not increase the potential hazards to 17 human health or the environment; 18 (2) The termination of the restrictive covenant if the 19 conditions for which the covenant was originally placed upon 20 the property have been demonstrated to no longer exist by the 21 person seeking termination of the restrictive covenant. 22 the commissioner may, under subsection (c), authorize the filing in the 23 office of the county recorder of a supplemental recording recognizing 24 the modification of the conditions and restrictions of the restrictive 25 covenant to reflect the change in conditions or advancement in science 26 or technology. 27 (c) The commissioner may approve a modification or termination 28 under this section and authorize the filing of a supplemental recording 29 in the office of the county recorder under subsection (b) if: 30 (1) the commissioner determines that the proposed 31 modification or termination would not increase the potential 32 hazards to human health or the environment; and 33 (2) the owner of the real property that is subject the person 34 seeking a modification or termination of to the restrictive 35 covenant submits to the department: 36 (1) (A) a written request for the modification or termination 37 of the covenant; 38 (2) (B) a copy of the proposed modification or termination of 39 the restrictive covenant; and 40 (3) (C) information indicating why the covenant should be 41 modified. sufficient data to demonstrate that the 42 modification or termination will not result in unacceptable 2024 IN 206—LS 6506/DI 150 3 1 risk to human health and the environment. 2 The information submitted under subdivision (3) subdivision (2)(C) 3 must be sufficient to enable the department to determine whether the 4 proposed modification of the restrictive covenant will increase the 5 potential hazards to human health or the environment. The 6 commissioner may request additional information from the owner of 7 the real property if necessary to the making of make a determination 8 under this subsection. 9 (d) The board shall adopt rules under IC 4-22-2 and IC 13-14-9 10 providing for the recovery of administrative and personnel expenses 11 incurred by the state in evaluating proposed modifications of restrictive 12 covenants under this section. 13 SECTION 3. IC 13-15-4-7 IS AMENDED TO READ AS 14 FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 7. (a) For purposes of 15 calculating a period under sections 1 through 6 of this chapter, the 16 period: 17 (1) begins on the earlier of the date: 18 (A) an application and any required fee is received and 19 stamped received by the department; or 20 (B) marked by the department on a certified mail return receipt 21 accompanying an application and any required fee; and or 22 (C) notice sent by the department to the applicant 23 confirming that the department has received an 24 application and any required fees; and 25 (2) ends on the date a decision is issued to approve or deny the 26 application under IC 4-21.5-3-4 or IC 4-21.5-3-5. 27 (b) If an applicant pays an application fee with a check that is not 28 covered with sufficient funds, a period described under sections 1 29 through 6 of this chapter is suspended until the applicant pays the 30 permit application fee. 31 SECTION 4. IC 13-15-4-10, AS AMENDED BY P.L.140-2013, 32 SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 33 JULY 1, 2024]: Sec. 10. The commissioner may suspend the 34 processing of an application, and the period described under sections 35 1 through 6 of this chapter is suspended, if one (1) of the following 36 occurs: 37 (1) The department determines that the application is incomplete 38 and has mailed or electronically sent a notice of deficiency to the 39 applicant that specifies the parts of the application that: 40 (A) do not contain adequate information for the department to 41 process the application; or 42 (B) are not consistent with applicable law. 2024 IN 206—LS 6506/DI 150 4 1 The period described under sections 1 through 6 of this chapter 2 shall be suspended during the first two (2) notices of deficiency 3 sent to an applicant under this subdivision. If more than two (2) 4 notices of deficiency are issued on an application, the period may 5 not be suspended unless the applicant agrees in writing to defer 6 processing of the application pending the applicant's response to 7 the notice of deficiency. A notice of deficiency may include a 8 request for the applicant to conduct tests or sampling to provide 9 information necessary for the department to process the 10 application. If an applicant's response does not contain complete 11 information to satisfy all deficiencies described in a notice of 12 deficiency, the department shall notify the applicant not later than 13 thirty (30) working days after receiving the response. The 14 commissioner shall resume processing the application, and the 15 period described under sections 1 through 6 of this chapter 16 resumes on the earlier of the date the department receives and 17 stamps as received the applicant's complete information, or the 18 date marked by the department on a certified mail return receipt 19 accompanying the applicant's complete information, or a notice 20 sent by the department to the applicant confirming that the 21 department has received the applicant's complete 22 information. 23 (2) The commissioner receives a written request from an 24 applicant to: 25 (A) withdraw; or 26 (B) defer processing of; 27 the application for the purposes of resolving an issue related to a 28 permit or to provide additional information concerning the 29 application. 30 (3) The department is required by federal law or by an agreement 31 with the United States Environmental Protection Agency for a 32 federal permit program to transmit a copy of the proposed permit 33 to the administrator of the United States Environmental Protection 34 Agency for review and possible objections before the permit may 35 be issued. The period described under sections 1 through 6 of this 36 chapter shall be suspended from the time the department submits 37 the proposed permit to the administrator for review until: 38 (A) the department receives the administrator's concurrence or 39 objection to the issuance of the proposed permit; or 40 (B) the period established in federal law by which the 41 administrator is required to make objections expires without 42 the administrator having filed an objection. 2024 IN 206—LS 6506/DI 150 5 1 (4) A board initiates emergency rulemaking under section 3(b) of 2 this chapter to revise the period described under sections 1 3 through 6 of this chapter. 4 SECTION 5. IC 13-15-5-3 IS AMENDED TO READ AS 5 FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 3. (a) Except as 6 provided in section 2 of this chapter: 7 (1) after the comment period; or 8 (2) if a public hearing is held, after the public hearing; 9 the commissioner shall issue the permit or deny the permit application. 10 (b) Unless the commissioner states otherwise in writing, the 11 commissioner's action under this section is effective immediately. 12 (c) Notice of the commissioner's action shall be served upon the 13 following: 14 (1) The permit applicant. 15 (2) Each person who submitted written comments under section 16 1 of this chapter. 17 (3) Each person who requests notice of the permit determination. 18 (4) The Administrator of the United States Environmental 19 Protection Agency if service is required under the applicable 20 federal law. 21 (d) If the commissioner's action is likely to have a significant impact 22 upon persons who are not readily identifiable, the commissioner may 23 publish notice of the action on the permit application in a newspaper 24 of general circulation in the county affected by the proposed permit or 25 the commissioner may use electronic means to publish notice. 26 SECTION 6. IC 13-15-6-7 IS AMENDED TO READ AS 27 FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 7. (a) In computing a 28 period of time under this chapter, the day of the act, event, or default 29 from which the designated period of time begins to run is not included. 30 The last day of the computed period is to be included unless it is a: 31 (1) Saturday; 32 (2) Sunday; 33 (3) legal holiday under a state statute; or 34 (4) day that the office in which the act is to be done is closed 35 during regular business hours. 36 (b) A period runs until the end of the next day after a day described 37 in subsections (a)(1) through (a)(4). 38 (c) A period of time under this chapter that commences when a 39 person is served with a paper or electronic notice commences with 40 respect to a particular person on the earlier of the date that: 41 (1) the person is personally served with the notice; or 42 (2) a notice for the person is deposited in the United States mail; 2024 IN 206—LS 6506/DI 150 6 1 or 2 (3) a notice for the person is electronically delivered. 3 (d) If a notice is served through the United States mail or 4 electronically, three (3) days must be added to a period that 5 commences upon service of that notice. 6 SECTION 7. IC 13-20-10.5-3.5 IS ADDED TO THE INDIANA 7 CODE AS A NEW SECTION TO READ AS FOLLOWS 8 [EFFECTIVE JULY 1, 2024]: Sec. 3.5. (a) The department shall 9 make a determination under section 1 of this chapter concerning 10 prior approval for the construction or expansion of a biomass 11 anaerobic digestion facility or biomass gasification facility for 12 which the only input is biomass not later than ninety (90) days 13 after the date on which the department receives the completed 14 application for prior approval, including all required supplemental 15 information, unless the department and the applicant agree to a 16 longer time. 17 (b) Subject to subsection (a), the department may conduct any 18 inquiry or investigation that: 19 (1) is consistent with the department's duties under this 20 chapter; and 21 (2) the department considers necessary; 22 before making a determination under section 1 of this chapter. 23 (c) If the department fails to make a determination within the 24 time frame provided in subsection (a), the applicant may request 25 and receive a refund of the fee paid by the applicant when the 26 application for prior approval was submitted. The department 27 shall continue to review the application and approve or deny the 28 application as soon as practicable. 29 SECTION 8. IC 13-21-5-2 IS AMENDED TO READ AS 30 FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 2. (a) A district must 31 conduct at least one (1) regularly scheduled public meeting each month 32 before the creation, amendment, or alteration of the district solid waste 33 management plan. The board shall give notice of each public meeting 34 in accordance with IC 5-14-1.5. In addition, a copy of the schedule of 35 regularly scheduled monthly meetings shall annually be submitted for 36 publication to a newspaper of general circulation in each county of the 37 district, and the board may use electronic means to post public 38 notice. The notice: 39 (1) must be at least two (2) columns wide by five (5) inches long; 40 and 41 (2) may not be placed in the part of the newspaper where legal 42 notices and classified advertisements appear. 2024 IN 206—LS 6506/DI 150 7 1 (b) Public comments shall be taken at each board meeting. 2 SECTION 9. IC 13-25-4-9 IS AMENDED TO READ AS 3 FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 9. (a) The 4 commissioner may proceed in court, by appropriate action, to: 5 (1) compel a responsible person to undertake a removal or 6 remedial action with respect to a release or threatened release of 7 a hazardous substance from a facility or site in Indiana; or 8 (2) obtain an order to enter upon private or public property to 9 carry out an appropriate response under the environmental 10 management laws if the commissioner cannot identify or locate 11 another person responsible for carrying out the response who: 12 (A) is willing to carry out the response and capable of doing 13 so; or 14 (B) can be compelled to carry out the response under 15 subdivision (1). 16 (b) The commissioner may issue an administrative order for the 17 purpose set forth in subsection (a)(1). 18 (c) Any person: 19 (1) potentially liable under section 8 of this chapter; or 20 (2) participating in voluntary remediation under IC 13-25-5; 21 that is conducting a removal of suspected or actual contamination 22 or remedial action under oversight by the department of suspected 23 or actual contamination, and who requires access to conduct the 24 remediation on real or personal property that is not owned by the 25 person, may enter upon the property to conduct any activity 26 necessary to further or complete the remedial action, remediation, 27 removal, or response activity if there is a written agreement 28 between the person conducting the remediation and the owner of 29 the property authorizing the entry onto the property. 30 (d) If, after good faith efforts, the person undertaking the 31 remediation and the property owner fail to reach an agreement 32 concerning access to the property, the person undertaking the 33 remediation shall seek an order from the court of the county where 34 the real or personal property is located directing the property 35 owner to grant reasonable access to the property. The court may 36 proceed in the action in a summary manner. 37 (e) The court may, on its own or by motion of either party, 38 bifurcate the proceedings to expeditiously dispose of the claim for 39 access and resolve claims for damages at a subsequent hearing. 40 (f) Relief may include, individually or in combination, the 41 following: 42 (1) A temporary or permanent injunction, including a 2024 IN 206—LS 6506/DI 150 8 1 temporary or permanent injunction preventing the property 2 owner from interfering with any remediation on the property. 3 (2) Assessment of the person undertaking the remediation for 4 reasonable costs associated with any disruption in operations 5 on the property. 6 (3) Assessment of the person undertaking the remediation for 7 any costs to return the property to its condition before the 8 commencement of the remediation. 9 (4) Requiring a person undertaking the remediation to take all 10 reasonable measures to: 11 (A) minimize disruption to the property; 12 (B) minimize activities conducted on the property; and 13 (C) return the property to its condition; 14 before the commencement of remediation. 15 (5) A requirement that the person undertaking the 16 remediation indemnify the owner of the property for any: 17 (A) damages; 18 (B) penalties; or 19 (C) liabilities; 20 resulting from the remediation. 21 (6) A requirement that the person undertaking the 22 remediation indemnify the owner of the property for any 23 liability resulting from the entry of persons onto the property 24 to perform the remediation. 25 (7) Award court costs and reasonable attorney's fees for the 26 party undertaking the remediation in the event the property 27 owner: 28 (A) breaches a prior access agreement; or 29 (B) unreasonably revokes a prior access agreement. 30 (8) Award court costs and reasonable attorney's fees if the 31 party undertaking the remediation pursues a claim for access 32 to the property under this section and the court issues an 33 order granting access to the property. 34 (9) Punitive damages against the property owner if the party 35 undertaking the remediation establishes by a preponderance 36 of the evidence that the property owner's: 37 (A) refusal to enter into an access agreement; 38 (B) breach of an access agreement; or 39 (C) revocation of an access agreement was in bad faith. 40 (g) The court shall promptly issue any access order sought 41 under this section upon a showing that: 42 (1) a reasonable possibility exists that contamination from 2024 IN 206—LS 6506/DI 150 9 1 another site has migrated onto the owner's property; or 2 (2) access to the property is reasonable and necessary to 3 remediate contamination. 4 The presence of an applicable department oversight document or 5 a remediation obligation under law involving the property for 6 which access is sought shall constitute prima facie evidence 7 sufficient to support the issuance of an order. 8 (h) Unless the court otherwise orders for notice and for good 9 cause shown, an action for an access order shall not be joined with 10 nongermane issues against the owner of the property for which 11 access is sought or another person who may be liable for the 12 contamination. Nongermane issues shall include: 13 (1) issues concerning contribution; 14 (2) treble damages; or 15 (3) other damages involving either the contamination or the 16 remediation. 17 (i) The department may not impose or seek to impose any civil 18 or civil administrative penalties upon any person for failure to 19 perform a remediation on property not owned by the person within 20 the time schedule required by regulation or agreement if: 21 (1) the failure to perform the remediation was the result of an 22 inability of the person to enter upon real or personal property 23 owned by another person; and 24 (2) the person took all appropriate action under this section to 25 obtain access to the property. 26 (j) Nothing shall be construed as limiting the rights of the owner 27 of the property against which the access order is issued to initiate 28 a civil action to seek any damages available under law. 29 (k) Nothing shall be construed as limiting the rights of the 30 person conducting the remediation from initiating any subsequent 31 civil action against the owner of the property upon which access 32 was ordered. 33 SECTION 10. IC 13-25-4-24, AS AMENDED BY P.L.220-2014, 34 SECTION 34, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 35 JULY 1, 2024]: Sec. 24. (a) This section applies to real Subject to the 36 requirements of this section, an environmental restrictive covenant 37 shall be required for property that is: 38 (1) the site of an existing or former hazardous waste facility that 39 is or was subject to regulation under: 40 (A) IC 13-22-2 through IC 13-22-8 and IC 13-22-13 through 41 IC 13-22-14; or 42 (B) Subchapter III of the federal Solid Waste Disposal Act (42 2024 IN 206—LS 6506/DI 150 10 1 U.S.C. 6921 through 6939e); or 2 (2) a site 3 (A) on which a hazardous substance has been: 4 (i) deposited; 5 (ii) stored; or 6 (iii) disposed of; and 7 (B) that is or was listed on the Comprehensive Environmental 8 Response, Compensation, and Liability Information System 9 (CERCLIS) in accordance with Section 116 of CERCLA (42 10 U.S.C. 9616); 11 if more than an insignificantly small amount of a hazardous substance 12 remains on or beneath the surface of that property after the partial or 13 final closure of a hazardous waste facility located on the property or the 14 completion of a remedial action on the property under CERCLA or this 15 chapter. on which a hazardous substance or petroleum has been: 16 (A) deposited; 17 (B) stored; or 18 (C) disposed of; 19 if the property still retains an amount of a hazardous substance or 20 petroleum constituent above remediation standards consistent with 21 the current or intended use of the property after the partial or final 22 closure of the hazardous waste facility, the completion of any 23 response required under CERCLA or this chapter, or the 24 completion of any response required under IC 13-23 or IC 13-24. 25 (b) The owner or party responsible for the corrective action or 26 response at of real property described in subsection (a) shall do the 27 following: execute and record, in the office of the county recorder of 28 the county in which the property is located, a restrictive covenant 29 applying to the property if the commissioner determines that a 30 restrictive covenant meeting the requirements set forth in subsection 31 (c) is necessary to protect the public health or welfare or the 32 environment from unreasonable risk of future exposure to a hazardous 33 substance. 34 (1) Investigate the real property records for the site to 35 determine if the site has preexisting encumbrances as 36 described in subsection (f) that may affect the feasibility of the 37 use of a restrictive covenant as part of a response or 38 corrective action plan for the site. 39 (2) Provide the results of the encumbrance investigation to the 40 commissioner as part of the proposed response or corrective 41 action plan. 42 (c) The commissioner shall approve the use of a restrictive 2024 IN 206—LS 6506/DI 150 11 1 covenant if the covenant is determined to be necessary to protect 2 human health or the environment from an unreasonable risk of 3 future exposure to a hazardous substance or petroleum constituent, 4 and has been evaluated and determined to meet the requirements 5 of this section and IC 13-25-5-8.5. 6 (d) Upon approval of the restrictive covenant, the owner or 7 party responsible described in subsection (b) shall execute and 8 record, in the office of the county recorder of the county in which 9 the property is located, a restrictive covenant applying to the 10 property. 11 (c) (e) A restrictive covenant required proposed under this section 12 must: 13 (1) to the maximum extent feasible, describe: 14 (A) the identity, quantity, and location of every hazardous 15 substance or petroleum constituent: 16 (i) deposited; 17 (ii) stored; 18 (iii) disposed of; or 19 (iv) placed; 20 on the property; and 21 (B) the extent to which each hazardous substance or 22 petroleum constituent remains on the property; and 23 (2) incorporate the conditions and restrictions that the 24 commissioner considers necessary to assure that the future use of 25 the property will not disturb the final cover, any liners, or any 26 components of the hazardous substance or petroleum 27 containment system on the property, or disturb the function of the 28 monitoring system on the property, unless the commissioner finds 29 that the disturbance: 30 (A) is necessary to the proposed use of the property and will 31 not increase the potential hazards to human health or to the 32 environment; or 33 (B) is necessary to mitigate a threat to human health or to the 34 environment. 35 (f) A restrictive covenant may not be used as a means of 36 response or corrective action on real property that has preexisting 37 easements or encumbrances that may allow disturbance of the site, 38 unless any such encumbrance or easement is made subordinate to 39 the restrictive covenant, requiring notification to the department 40 before disturbing the site. Any such encumbrances or easements 41 shall be identified in the proposed restrictive covenant and the 42 covenant shall include the requirement of subordination and 2024 IN 206—LS 6506/DI 150 12 1 notification prior to disturbance to the site subject to the covenant. 2 Encumbrances subject to this subsection include easements and 3 rights-of-way for the following: 4 (1) Sewer lines. 5 (2) Water distribution systems. 6 (3) Underground infrastructure systems. 7 (4) Oil and gas pipelines. 8 (d) (g) A restrictive covenant required by this section is subject to 9 modification under IC 13-14-2-9. 10 SECTION 11. IC 13-26-2-6, AS AMENDED BY P.L.152-2021, 11 SECTION 14, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 12 JULY 1, 2024]: Sec. 6. (a) Except as provided in section 9 of this 13 chapter, the hearing officer shall fix a time and place inside or within 14 ten (10) miles of the proposed district for the hearing on any matter for 15 which a hearing is authorized under this chapter. 16 (b) The hearing officer shall make a reasonable effort to provide 17 notice of the hearing as follows: 18 (1) By publication of notice two (2) times each week for two (2) 19 consecutive weeks: 20 (A) with each notice: 21 (i) published in at least two (2) newspapers of general 22 circulation in each of the counties, in whole or in part, in the 23 district; and 24 (ii) at a minimum, including a legal notice and a 25 prominently displayed three (3) inches by five (5) inches 26 advertisement; or and 27 (iii) published through electronic means in a manner that 28 maximizes notice of the hearing; or 29 (B) with the first publication of notice in the newspapers 30 described in clause (A) and all subsequent publications of 31 notice: 32 (i) in accordance with IC 5-3-5 and 33 (ii) on the official web site website of each of the counties, 34 in whole or in part, in the district; or 35 (ii) in an electronic manner that maximizes notice of the 36 hearing to the impacted individuals. 37 (2) By United States mail or electronically sent at least two (2) 38 weeks before the hearing to the following: 39 (A) The fiscal and executive bodies of each county with 40 territory in the proposed district. 41 (B) The executive of all other eligible entities with territory in 42 the proposed district, including the executive of a city or town 2024 IN 206—LS 6506/DI 150 13 1 that has: 2 (i) a municipal sewage works under IC 36-9-23; or 3 (ii) a public sanitation department under IC 36-9-25; 4 having extraterritorial jurisdiction within the boundaries of the 5 area to be included in the proposed district. 6 (C) The state and any of its agencies owning, controlling, or 7 leasing land within the proposed district, excluding highways 8 and public thoroughfares owned or controlled by the Indiana 9 department of transportation. 10 (D) Each sewage disposal company holding a certificate of 11 territorial authority under IC 8-1-2-89 respecting territory in 12 the proposed district. 13 (3) By making a reasonable effort to provide notice of the hearing 14 by regular United States mail, postage prepaid, mailed at least two 15 (2) weeks before the hearing to each freeholder within the 16 proposed district or electronically at least two (2) weeks before 17 the hearing to each freeholder within the proposed district. 18 (4) By including the date on which the hearing is to be held and 19 a brief description of: 20 (A) the subject of the petition, including a description of the 21 general boundaries of the area to be included in the proposed 22 district; and 23 (B) the locations where copies of the petition are available for 24 viewing. 25 SECTION 12. IC 13-26-5-6.5, AS AMENDED BY P.L.152-2021, 26 SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 27 JULY 1, 2024]: Sec. 6.5. A district that intends to extend service within 28 its territory shall provide notice to all owners of property to be served 29 by the proposed extension of service in the following manner not later 30 than sixty (60) days from the date of the decision to extend service: 31 (1) By publication one (1) time each week for three (3) 32 consecutive weeks: 33 (A) with each publication of notice: 34 (i) in at least two (2) newspapers of general circulation in 35 each of the counties, in whole or in part, of the district 36 affected by the proposed extension of service; or 37 (ii) if there is only one (1) newspaper of general circulation 38 in a county, a single publication satisfies the requirement of 39 this subdivision; or 40 (iii) published through electronic means in a manner that 41 maximizes notice of the hearing; or 42 (B) with the first publication of notice made in a newspaper or 2024 IN 206—LS 6506/DI 150 14 1 newspapers described in clause (A) and the two (2) subsequent 2 publications of notice: 3 (i) in accordance with IC 5-3-5 and 4 (ii) on the official web site website of the district; or 5 (ii) in an electronic manner that maximizes notice of the 6 hearing to the impacted individuals. 7 (2) By United States mail, postage prepaid, mailed to each 8 freeholder within the territory to which the district proposes to 9 extend service or electronically at least two (2) weeks before 10 the hearing to each freeholder within the proposed district. 11 SECTION 13. IC 13-26-11-12, AS AMENDED BY P.L.152-2021, 12 SECTION 16, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 13 JULY 1, 2024]: Sec. 12. After introduction of the ordinance initially 14 fixing rates or charges but before the ordinance is finally adopted, 15 notice of the hearing setting forth the proposed schedule of the rates or 16 charges must be given electronically or by publication one (1) time 17 each week for two (2) weeks: 18 (1) with each publication of notice: 19 (A) in a newspaper of general circulation in each of the 20 counties with territory in the district; or 21 (B) published through electronic means in a manner that 22 maximizes notice of the hearing; or 23 (2) with the first publication of notice in a newspaper or 24 electronically described in subdivision (1) and the second 25 publication of notice: 26 (A) in accordance with IC 5-3-5; and 27 (B) on the official web site website of the district; and 28 (C) in an electronic manner that maximizes notice of the 29 hearing to the impacted individuals. 30 The last publication or electronic notice must be at least seven (7) 31 days before the date fixed in the notice for the hearing. The hearing 32 may be adjourned as necessary. 33 SECTION 14. IC 13-26-11-13, AS AMENDED BY P.L.84-2016, 34 SECTION 67, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 35 JULY 1, 2024]: Sec. 13. (a) The ordinance establishing the initial rates 36 or charges, either as: 37 (1) originally introduced; or 38 (2) modified and amended; 39 shall be passed and put into effect after the hearing. 40 (b) A copy of the schedule of the rates and charges established must 41 be: 42 (1) kept on file in the office of the district; and 2024 IN 206—LS 6506/DI 150 15 1 (2) open to public inspection. 2 (c) Whenever the board acts under section 8(b) of this chapter, to 3 change or readjust the rates and charges, the board shall mail or 4 electronically share, either separately or along with a periodic billing 5 statement, a notice of the new rates and charges to each user affected 6 by the change or readjustment. In the case of a sewage district, if the 7 change or readjustment increases the rates and charges by the amount 8 specified in section 15(c) of this chapter, the notice required by this 9 subsection: 10 (1) must include a statement of a ratepayer's rights under section 11 15 of this chapter; and 12 (2) shall be mailed or electronically shared within the time 13 specified in section 15(c) of this chapter. 14 (d) Following the passage of an ordinance under subsection (a), the 15 lesser of fifty (50) or ten percent (10%) of the ratepayers of the district 16 may file a written petition objecting to the initial rates and charges of 17 the district. A petition filed under this subsection must: 18 (1) contain the name and address of each petitioner; 19 (2) be filed with a member of the district authority, in the county 20 where at least one (1) petitioner resides, not later than thirty (30) 21 days after the district adopts the ordinance; and 22 (3) set forth the grounds for the ratepayers' objection. 23 (e) The district authority shall set the matter for public hearing not 24 less than ten (10) business days but not later than twenty (20) business 25 days after the petition has been filed. The district authority shall: 26 (1) send notice of the hearing: 27 (A) by certified mail; or 28 (B) electronically; 29 to the district and the first listed petitioner; and 30 (2) publish the notice of the hearing: 31 (A) in a newspaper of general circulation in each county in the 32 district; or 33 (B) in an electronic manner that maximizes notice of the 34 hearing to the impacted individuals. 35 (f) Upon the date fixed in the notice, the district authority shall hear 36 the evidence produced and determine the following: 37 (1) Whether the board of trustees of the district, in adopting the 38 ordinance establishing sewer rates and charges, followed the 39 procedure required by this chapter. 40 (2) Whether the sewer rates and charges established by the board 41 by ordinance are just and equitable rates and charges, according 42 to the standards set forth in section 9 of this chapter. 2024 IN 206—LS 6506/DI 150 16 1 (g) After the district authority hears the evidence produced and 2 makes the determinations set forth in subsection (f), the district 3 authority, by a majority vote, shall: 4 (1) sustain the ordinance establishing the rates and charges; 5 (2) sustain the petition; or 6 (3) make any other ruling appropriate in the matter, subject to the 7 standards set forth in section 9 of this chapter. 8 (h) The order of the district authority may be appealed by the district 9 or a petitioner to the circuit court, superior court, or probate court of 10 the county in which the district is located. The court shall try the appeal 11 without a jury and shall determine one (1) or both of the following: 12 (1) Whether the board of trustees of the district, in adopting the 13 ordinance establishing sewer rates and charges, followed the 14 procedure required by this chapter. 15 (2) Whether the sewer rates and charges established by the board 16 by ordinance are just and equitable rates and charges, according 17 to the standards set forth in section 9 of this chapter. 18 Either party may appeal the circuit court's, superior court's, or probate 19 court's decision in the same manner that other civil cases may be 20 appealed. 21 SECTION 15. IC 13-26-11-15, AS AMENDED BY P.L.84-2016, 22 SECTION 68, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 23 JULY 1, 2024]: Sec. 15. (a) A district authority is established in each 24 regional sewage district established under this article. A district 25 authority: 26 (1) must consist of an odd number of members; 27 (2) must consist of at least three (3) members; and 28 (3) may not include as a member any person who serves on the 29 board of trustees of the district. 30 (b) The district authority of a regional sewage district consists of the 31 following members: 32 (1) In the case of a regional sewage district located in one (1) 33 county, the following members: 34 (A) If no members of the county executive are trustees of the 35 regional sewage district, the county executive of the county. 36 (B) If: 37 (i) one (1) or more members of the county executive are 38 trustees of the regional sewage district; and 39 (ii) no members of the county fiscal body are trustees of the 40 regional sewage district; 41 the members of the county fiscal body. 42 (C) If the regional sewage district's board of trustees consists 2024 IN 206—LS 6506/DI 150 17 1 of one (1) or more members of the county executive and one 2 (1) or more members of the county fiscal body, three (3) 3 members appointed as follows: 4 (i) Two (2) members appointed by the county executive. If 5 not all of the members of the county executive are trustees 6 of the district, the county executive may appoint either or 7 both of the two (2) members required by this item from 8 among the county executive's own membership, subject to 9 subsection (a)(3). 10 (ii) One (1) member appointed by the county fiscal body. If 11 not all of the members of the county fiscal body are trustees 12 of the district, the county fiscal body may appoint the 13 member required by this item from among the county fiscal 14 body's own membership, subject to subsection (a)(3). 15 (2) In the case of a regional sewage district located in more than 16 one (1) county, the following members: 17 (A) If: 18 (i) an odd number of counties are part of the regional sewage 19 district; and 20 (ii) each county in the district has at least one (1) county 21 executive member who is not a trustee of the regional 22 sewage district; 23 one (1) county executive member, appointed by that member's 24 county executive, from each county in which the district is 25 located, subject to subsection (a)(3). 26 (B) If an even number of counties are part of the regional 27 sewage district, the following members: 28 (i) Two (2) county executive members, appointed by those 29 members' county executive, from the county that has the 30 largest number of customers served by the district's sewer 31 system. However, if the county that has the largest number 32 of customers served by the district's sewer system does not 33 have at least two (2) members of its executive who are not 34 also trustees of the district, the county executive of that 35 county may appoint one (1) or more of the members 36 required by this item from outside the county executive's 37 own membership in order to comply with subsection (a)(3). 38 (ii) One (1) county executive member, appointed by that 39 member's county executive, from each county, other than the 40 county described in item (i), in which the district is located. 41 However, if a county described in this item does not have at 42 least one (1) member of its executive who is not also a 2024 IN 206—LS 6506/DI 150 18 1 trustee of the district, the county executive of that county 2 may appoint the member required by this item from outside 3 the county executive's own membership in order to comply 4 with subsection (a)(3). 5 (C) If an odd number of counties are part of the regional 6 sewage district and an odd number of those counties in the 7 district do not have at least one (1) county executive member 8 who is not also a trustee of the district, the following members: 9 (i) One (1) county executive member, appointed by that 10 member's county executive, from each county that has at 11 least one (1) county executive member who is not also a 12 trustee of the district, subject to subsection (a)(3). 13 (ii) One (1) member appointed by the county executive of 14 each county that does not have at least one (1) county 15 executive member who is not also a trustee of the district. A 16 member appointed under this item must be appointed from 17 outside the appointing county executive's own membership, 18 subject to subsection (a)(3). 19 (c) If a district adopts an ordinance increasing sewer rates and 20 charges at a rate that is greater than five percent (5%) per year, as 21 calculated from the rates and charges in effect from the date of the 22 district's last rate increase, the district shall mail or electronically 23 share, either separately or along with a periodic billing statement, a 24 notice of the new rates and charges to each user of the sewer system 25 who is affected by the increase. The notice: 26 (1) shall be mailed or electronically shared not later than seven 27 (7) days after the district adopts the ordinance increasing the rates 28 and charges; and 29 (2) must include a statement of a ratepayer's rights under this 30 section. 31 (d) If subsection (c) applies, fifty (50) ratepayers of the district or 32 ten percent (10%) of the district's ratepayers, whichever is fewer, may 33 file a written petition objecting to the rates and charges of the district. 34 A petition filed under this subsection must: 35 (1) contain the name and address of each petitioner; 36 (2) be filed with a member of the district authority, in the county 37 where at least one (1) petitioner resides, not later than thirty (30) 38 days after the district adopts the ordinance establishing the rates 39 and charges; and 40 (3) set forth the grounds for the ratepayers' objection. 41 If a petition meeting the requirements of this subsection is filed, the 42 district authority shall investigate and conduct a public hearing on the 2024 IN 206—LS 6506/DI 150 19 1 petition. If more than one (1) petition concerning a particular increase 2 in rates and charges is filed, the district authority shall consider the 3 objections set forth in all the petitions at the same public hearing. 4 (e) The district authority shall set the matter for public hearing not 5 less than ten (10) business days but not later than twenty (20) business 6 days after the petition has been filed. The district authority shall: 7 (1) send notice of the hearing: 8 (A) by certified mail; or 9 (B) electronically; 10 to the district and the first listed petitioner; and 11 (2) publish the notice of the hearing: 12 (A) in a newspaper of general circulation in each county in the 13 district; or 14 (B) in an electronic manner that maximizes notice of the 15 hearing to the impacted individuals. 16 (f) Upon the date fixed in the notice, the district authority shall hear 17 the evidence produced and determine the following: 18 (1) Whether the board of trustees of the district, in adopting the 19 ordinance increasing sewer rates and charges, followed the 20 procedure required by this chapter. 21 (2) Whether the increased sewer rates and charges established by 22 the board by ordinance are just and equitable rates and charges, 23 according to the standards set forth in section 9 of this chapter. 24 (g) After the district authority hears the evidence produced and 25 makes the determinations set forth in subsection (f), the district 26 authority, by a majority vote, shall: 27 (1) sustain the ordinance establishing the rates and charges; 28 (2) sustain the petition; or 29 (3) make any other ruling appropriate in the matter, subject to the 30 standards set forth in section 9 of this chapter. 31 (h) The order of the district authority may be appealed by the district 32 or a petitioner to the circuit court, superior court, or probate court of 33 the county in which the district is located. The court shall try the appeal 34 without a jury and shall determine one (1) or both of the following: 35 (1) Whether the board of trustees of the district, in adopting the 36 ordinance increasing sewer rates and charges, followed the 37 procedure required by this chapter. 38 (2) Whether the increased sewer rates and charges established by 39 the board by ordinance are just and equitable rates and charges, 40 according to the standards set forth in section 9 of this chapter. 41 Either party may appeal the circuit court's, superior court's, or probate 42 court's decision in the same manner that other civil cases may be 2024 IN 206—LS 6506/DI 150 20 1 appealed. 2024 IN 206—LS 6506/DI 150