LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 6779 NOTE PREPARED: Dec 20, 2024
BILL NUMBER: HB 1187 BILL AMENDED:
SUBJECT: Watershed Development Commissions.
FIRST AUTHOR: Rep. Aylesworth BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
DEDICATED
FEDERAL
Summary of Legislation: The bill alters the membership of a Watershed Development Commission (WDC)
board. It allows a county to join a WDC if any part of the designated watershed lies within boundaries of the
county. It alters what must be considered regarding the membership and the activities of a WDC.
The bill provides that a WDC may take certain actions with respect to certain flood plains. It expands
permitted uses for certain funds collected by a WDC and establishes certain budget limits.
The bill provides that the Department of Natural Resources's Division of Water (Division) shall provide a
WDC with a written summary of the Division's review of certain public works projects within 30 days of the
review. It makes conforming changes.
Effective Date: July 1, 2025.
Explanation of State Expenditures: WDC Expenditures: The bill will have an indeterminate impact on the
expenditures of the Pigeon Creek WDC and the establishment and expenditures of future WDCs. The bill
allows WDCs to use special assessment revenue for implementation of best management practices, as
established in the National Resources Conservation Service Field Office Technical Guide (FOTG). It allows
a WDC to grant funds to another governmental entity to implement FOTG best management practices. It also
allows a WDC to grant funds to a county drainage board for projects that address flood damage and water
quality. The bill specifies the percentage of these funds that must be budgeted for certain purposes. In order
to spend money differently than specified in an approved budget, approval of at least 75% of a WDC board
must vote in favor. Funds reallocated in this way may be deemed as a loan or grant.
Other WDC Provisions: The bill may impact the establishment of WDCs and change some aspects of how
they function. The bill removes the purposes of recreation and water infrastructure as allowable purposes
for establishing a WDC and adds water quality and soil and water conservation purposes. The bill maintains
a WDC’s authority, but not exclusive authority, to perform certain designated watershed activities and also
expands their authority to include other types of activities. This also expands the activities for which a county
would need to obtain prior approval from a WDC board if the county wishes to perform an activity. It also
HB 1187 1 expands the activities for which an interlocal agreement may be needed if another other governmental entity
has authority and collects a tax or assessment.
The bill alters the membership for WDC boards. It also allows a county with less than 10% of a designated
watershed within their boundaries to establish a WDC (not just join a WDC that is already established),
which may streamline the process for some WDCs by allowing these counties to be part of the initial request
for recognition submitted to the Natural Resources Commission, rather than being required to be submitted
and evaluated separately after the WDC is established. The bill also allows these counties (with less than
10% of a designated watershed) to have representation on a WDC board.
Additional Information: Since the passage of HEA 1639-2023, Pigeon Creek WDC is the only WDC that has
been established. Vanderburg County is the only county included in the Pigeon Creek WDC (despite its
designated watershed boundaries spanning Gibson, Vanderburg, and Warrick Counties, with a small portion
in Pike County).
[WDCs are public bodies, corporate and politic.]
Explanation of State Revenues:
Explanation of Local Expenditures: For areas within the boundaries of a designated watershed of a WDC,
the bill expands the types of activities for which a county would need to obtain prior approval from a WDC
board if the county wishes to perform the activity. It also expands the activities for which an interlocal
agreement with a WDC may be needed if a governmental entity has authority and collects a tax or
assessment.
Expenditures could increase for the Pigeon Creek WDC or a future WDC if they decide to award grants to
local units or county drainage boards, as allowed by the bill.
Explanation of Local Revenues: If the Pigeon Creek WDC or a future WDC decides to award grants from
special assessments, revenue could increase for local units to implement FOTG best management practices
or for a county drainage board for flood damage reduction or water quality improvement projects.
State Agencies Affected: Department of Natural Resources; Pigeon Creek Watershed Development
Commission; future watershed development commissions.
Local Agencies Affected: Any local unit with authority to perform drainage, flood damage reduction, and
soil and water conservation activities within the boundaries of a WDC’s designated watershed.
Information Sources: https://www.in.gov/isda/files/Watershed_Map.pdf;
https://www.in.gov/nrc/files/Item_9_NRC_Sept_2024.pdf;
https://mckinneylaw.iu.edu/practice/law-reviews/ilr/pdf/vol57p227.pdf;
https://www.in.gov/dnr/water/files/wa-watershed-development-commission-guidelines.pdf;
https://www.nrcs.usda.gov/resources/guides-and-instructions/field-office-technical-guides.
Fiscal Analyst: Heather Puletz, 317-234-9484.
HB 1187 2