Indiana 2025 Regular Session

Indiana House Bill HB1316 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2	Introduced Version
3	3	HOUSE BILL No. 1316
4	4	_____
5	5	DIGEST OF INTRODUCED BILL
6	6	Citations Affected: IC 8-1.5-5; IC 36-9.
7	7	Synopsis: Sewer and storm water fees incurred by tenants. Establishes
8	8	billing procedures for municipal sewage or storm water user fees
9	9	assessed for real property that is occupied by someone other than the
10	10	owner. Provides that a lien does not attach for user fees assessed
11	11	against real property occupied by someone other than the owner under
12	12	certain circumstances. Requires the assessing entity to release certain
13	13	liens and delinquent user fees upon receipt of a verified demand in
14	14	writing from the owner.
15	15	Effective: July 1, 2025.
16	16	Smith V
17	17	January 13, 2025, read first time and referred to Committee on Utilities, Energy and
18	18	Telecommunications.
19	19	2025 IN 1316—LS 6030/DI 101 Introduced
20	20	First Regular Session of the 124th General Assembly (2025)
21	21	PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
22	22	Constitution) is being amended, the text of the existing provision will appear in this style type,
23	23	additions will appear in this style type, and deletions will appear in this style type.
24	24	Additions: Whenever a new statutory provision is being enacted (or a new constitutional
25	25	provision adopted), the text of the new provision will appear in this style type. Also, the
26	26	word NEW will appear in that style type in the introductory clause of each SECTION that adds
27	27	a new provision to the Indiana Code or the Indiana Constitution.
28	28	Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
29	29	between statutes enacted by the 2024 Regular Session of the General Assembly.
30	30	HOUSE BILL No. 1316
31	31	A BILL FOR AN ACT to amend the Indiana Code concerning
32	32	utilities.
33	33	Be it enacted by the General Assembly of the State of Indiana:
34	34	1 SECTION 1. IC 8-1.5-5-7, AS AMENDED BY P.L.114-2008,
35	35	2 SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
36	36	3 JULY 1, 2025]: Sec. 7. (a) The acquisition, construction, installation,
37	37	4 operation, and maintenance of facilities and land for storm water
38	38	5 systems may be financed through:
39	39	6 (1) proceeds of special taxing district bonds of the storm water
40	40	7 district;
41	41	8 (2) the assumption of liability incurred to construct the storm
42	42	9 water system being acquired;
43	43	10 (3) service rates;
44	44	11 (4) revenue bonds; or
45	45	12 (5) any other available funds.
46	46	13 (b) Except as provided in IC 36-9-23-37, the board, after holding a
47	47	14 public hearing with notice given under IC 5-3-1 and obtaining the
48	48	15 approval of the fiscal body of the unit served by the department, may
49	49	16 assess and collect user fees from all of the property of the storm water
50	50	17 district for the operation and maintenance of the storm water system.
51	51	2025 IN 1316—LS 6030/DI 101 2
52	52	1 The amount of the user fees must be the minimum amount necessary
53	53	2 for the operation and maintenance of the storm water system. The
54	54	3 assessment and collection of user fees under this subsection by the
55	55	4 board of a county must also be approved by the county executive.
56	56	5 (c) Subject to section 7.1 of this chapter, the collection of the fees
57	57	6 authorized by this section may be effectuated through a periodic billing
58	58	7 system or through a charge appearing on the semiannual property tax
59	59	8 statement of the affected property owner.
60	60	9 (d) The board shall use one (1) or more of the following factors to
61	61	10 establish the fees authorized by this section:
62	62	11 (1) A flat charge for each lot, parcel of property, or building.
63	63	12 (2) The amount of impervious surface on the property.
64	64	13 (3) The number and size of storm water outlets on the property.
65	65	14 (4) The amount, strength, or character of storm water discharged.
66	66	15 (5) The existence of improvements on the property that address
67	67	16 storm water quality and quantity issues.
68	68	17 (6) The degree to which storm water discharged from the property
69	69	18 affects water quality in the storm water district.
70	70	19 (7) Any other factors the board considers necessary.
71	71	20 (e) The board may exercise reasonable discretion in adopting
72	72	21 different schedules of fees or making classifications in schedules of
73	73	22 fees based on:
74	74	23 (1) variations in the costs, including capital expenditures, of
75	75	24 furnishing services to various classes of users or to various
76	76	25 locations;
77	77	26 (2) variations in the number of users in various locations; and
78	78	27 (3) whether the property is used primarily for residential,
79	79	28 commercial, or agricultural purposes.
80	80	29 SECTION 2. IC 8-1.5-5-7.1 IS ADDED TO THE INDIANA CODE
81	81	30 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
82	82	31 1, 2025]: Sec. 7.1. (a) This section applies to real property that is
83	83	32 served by a district's storm water system and occupied by someone
84	84	33 other than the owner.
85	85	34 (b) If:
86	86	35 (1) the collection of user fees under section 7 of this chapter is
87	87	36 made through a periodic billing system, as authorized by
88	88	37 section 7(c) of this chapter; and
89	89	38 (2) either the owner of real property to which this section
90	90	39 applies or the person occupying the property submits to the
91	91	40 department a document that:
92	92	41 (A) is executed by the property owner and the person
93	93	42 occupying the property;
94	94	2025 IN 1316—LS 6030/DI 101 3
95	95	1 (B) identifies the person occupying the property by name;
96	96	2 and
97	97	3 (C) indicates that the person occupying the property is
98	98	4 responsible for paying the fees assessed by the board with
99	99	5 respect to the property;
100	100	6 the department shall establish or continue service to the property
101	101	7 in the name of the person occupying the property, as identified
102	102	8 under subdivision (2)(B), and shall ensure that the account or other
103	103	9 customer or billing records maintained by the department for the
104	104	10 property are in the name of the person occupying the property,
105	105	11 subject to any requirement for a deposit to ensure the payment of
106	106	12 user fees by the person occupying the property, or to any
107	107	13 requirement to ensure the creditworthiness of the person
108	108	14 occupying the property as the account holder or customer with
109	109	15 respect to the property, that the board may lawfully impose.
110	110	16 SECTION 3. IC 8-1.5-5-29, AS AMENDED BY P.L.196-2014,
111	111	17 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
112	112	18 JULY 1, 2025]: Sec. 29. (a) Subsections (c), (d), and (e) (f) do not
113	113	19 apply to a city that before January 1, 2005, adopted an ordinance
114	114	20 establishing procedures for the collection of unpaid user fees under this
115	115	21 chapter through the enforcement of a lien.
116	116	22 (b) Except as provided in subsection (e), fees assessed against real
117	117	23 property under this chapter constitute a lien against the property
118	118	24 assessed. The lien is superior to all other liens except tax liens. Except
119	119	25 as provided in subsections (c), and (d), and (e), the lien attaches when
120	120	26 notice of the lien is filed in the county recorder's office under section
121	121	27 30 of this chapter.
122	122	28 (c) A fee is not enforceable as a lien against a subsequent owner of
123	123	29 property unless the lien for the fee was recorded with the county
124	124	30 recorder before the conveyance to the subsequent owner. If property is
125	125	31 conveyed before a lien is filed, the department shall notify the person
126	126	32 who owned the property at the time the fee became payable. The notice
127	127	33 must inform the person that payment, including penalty fees for
128	128	34 delinquencies, is due not more than fifteen (15) days after the date of
129	129	35 the notice. If payment is not received within one hundred eighty (180)
130	130	36 days after the date of the notice, the amount due may be expensed as a
131	131	37 bad debt loss.
132	132	38 (d) Except as provided in subsection (e), a lien attaches against
133	133	39 real property occupied by someone other than the owner only if the
134	134	40 department notifies the owner not later than twenty (20) days after the
135	135	41 time the user fees become sixty (60) days delinquent. A notice sent to
136	136	42 the owner under this subsection must be sent by first class mail or by
137	137	2025 IN 1316—LS 6030/DI 101 4
138	138	1 certified mail, return receipt requested (or an equivalent service
139	139	2 permitted under IC 1-1-7-1) to:
140	140	3 (1) the owner of record of real property with a single owner; or
141	141	4 (2) at least one (1) of the owners of real property with multiple
142	142	5 owners;
143	143	6 at the last address of the owner for the property as indicated in the
144	144	7 records of the county auditor on the date of the notice of the
145	145	8 delinquency, or to another address specified by the owner, in a written
146	146	9 notice to the department, at which the owner requests to receive a
147	147	10 notice of delinquency under this subsection. The cost of sending notice
148	148	11 under this subsection is an administrative cost that may be billed to the
149	149	12 owner.
150	150	13 (e) A lien does not attach for user fees assessed against real
151	151	14 property occupied by someone other than the owner if either of the
152	152	15 following applies:
153	153	16 (1) The department has received a document described in
154	154	17 section 7.1(b)(2) of this chapter with respect to the property.
155	155	18 (2) The account or other customer or billing records
156	156	19 maintained by the department for the property otherwise
157	157	20 indicate that:
158	158	21 (A) the property is occupied by someone other than the
159	159	22 owner; and
160	160	23 (B) the person occupying the property is responsible for
161	161	24 paying the user fees assessed by the board with respect to
162	162	25 the property.
163	163	26 (e) (f) The department shall release:
164	164	27 (1) liens filed with the county recorder after the recorded date of
165	165	28 conveyance of the property; and
166	166	29 (2) delinquent fees incurred by the seller;
167	167	30 upon receipt of a verified demand in writing from the purchaser. The
168	168	31 demand must state that the delinquent fees were not incurred by the
169	169	32 purchaser as a user, lessee, or previous owner and that the purchaser
170	170	33 has not been paid by the seller for the delinquent fees.
171	171	34 (g) Regardless of whether the department has notice under
172	172	35 subsection (e)(1) or (e)(2) that real property is occupied by
173	173	36 someone other than the owner, the department shall release:
174	174	37 (1) any lien filed with the county recorder for user fees
175	175	38 assessed against real property occupied by someone other
176	176	39 than the owner; and
177	177	40 (2) delinquent user fees incurred by the person who occupies
178	178	41 the property and is responsible for paying the user fees
179	179	42 assessed by the board with respect to the property;
180	180	2025 IN 1316—LS 6030/DI 101 5
181	181	1 upon receipt of a verified demand in writing from the owner of the
182	182	2 property. The demand must state that the delinquent fees were not
183	183	3 incurred by the owner as a user of the storm water system and that
184	184	4 the owner has not been paid by the person occupying the property
185	185	5 for the delinquent user fees.
186	186	6 SECTION 4. IC 8-1.5-5-30, AS AMENDED BY P.L.196-2014,
187	187	7 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
188	188	8 JULY 1, 2025]: Sec. 30. (a) With respect to real property for which
189	189	9 the account or other customer or billing records maintained by the
190	190	10 department indicate under section 29(e)(1) or 29(e)(2) of this
191	191	11 chapter that:
192	192	12 (1) the property is occupied by someone other than the owner;
193	193	13 and
194	194	14 (2) the person occupying the property is responsible for
195	195	15 paying the user fees assessed by the board with respect to the
196	196	16 property;
197	197	17 subsections (c) through (e) and subsections (h) through (k) do not
198	198	18 apply to unpaid user fees and penalties assessed against the
199	199	19 property under this chapter.
200	200	20 (a) (b) The board may defer enforcing the collection of unpaid fees
201	201	21 and penalties assessed under this chapter until the unpaid fees and
202	202	22 penalties have been due and unpaid for at least ninety (90) days.
203	203	23 However, in the case of property that is occupied by someone other
204	204	24 than the owner, this subsection does not relieve the department of its
205	205	25 duty under section 29(d) of this chapter to notify the owner not later
206	206	26 than twenty (20) days after the time user fees become sixty (60) days
207	207	27 delinquent.
208	208	28 (b) (c) Except as provided in subsection (k), (n), the board shall
209	209	29 enforce payment of fees imposed under this chapter. As often as the
210	210	30 board determines necessary in a calendar year, the board shall prepare
211	211	31 either of the following:
212	212	32 (1) A list of the delinquent fees and penalties that are enforceable
213	213	33 under this section. The list must include the following:
214	214	34 (A) The name of the owner of each lot or parcel of real
215	215	35 property on which fees are delinquent.
216	216	36 (B) A description of the premises, as shown by the records of
217	217	37 the county auditor.
218	218	38 (C) The amount of the delinquent fees, together with the
219	219	39 penalty.
220	220	40 (2) An individual instrument for each lot or parcel of real property
221	221	41 on which the fees are delinquent.
222	222	42 (c) (d) An officer of the board shall record a copy of each list or
223	223	2025 IN 1316—LS 6030/DI 101 6
224	224	1 each individual instrument with the county recorder who shall charge
225	225	2 a fee for recording the list or each individual instrument in accordance
226	226	3 with the fee schedule established in IC 36-2-7-10. The officer shall
227	227	4 mail by certified mail, or by another delivery service providing proof
228	228	5 of delivery, to each property owner on the list or on an individual
229	229	6 instrument a notice stating that a lien against the owner's property has
230	230	7 been recorded. A service charge of five dollars ($5), which is in
231	231	8 addition to the recording fee charged under this subsection and under
232	232	9 subsection (e), (f), shall be added to each delinquent fee that is
233	233	10 recorded.
234	234	11 (d) (e) Using the lists and instruments prepared under subsection (b)
235	235	12 (c) and recorded under subsection (c), (d), the board shall, not later
236	236	13 than ten (10) days after the list or each individual instrument is
237	237	14 recorded under subsection (c), (d), certify to the county auditor a list of
238	238	15 the unpaid liens for collection with the next May installment of
239	239	16 property taxes. The county and its officers and employees are not liable
240	240	17 for any material error in the information on this list.
241	241	18 (e) (f) The board shall release any recorded lien when the delinquent
242	242	19 fees, penalties, service charges, and recording fees have been fully
243	243	20 paid. The county recorder shall charge a fee for releasing the lien in
244	244	21 accordance with IC 36-2-7-10.
245	245	22 (g) The department shall release any recorded lien when a
246	246	23 verified demand has been filed with the county auditor under
247	247	24 section 29(f) or 29(g) of this chapter. The county recorder may not
248	248	25 charge a fee for releasing a lien under this subsection.
249	249	26 (f) (h) Upon receipt of the list under subsection (c), (e), the county
250	250	27 auditor of each county shall add a fifteen dollar ($15) certification fee
251	251	28 for each lot or parcel of real property on which fees are delinquent. The
252	252	29 fee is in addition to all other fees and charges. The county auditor shall
253	253	30 immediately enter on the tax duplicate for the district the delinquent
254	254	31 fees, penalties, service charges, recording fees, and certification fees,
255	255	32 which are due not later than the due date of the next May installment
256	256	33 of property taxes. The county treasurer shall include any unpaid
257	257	34 charges for the delinquent fee, penalty, service charge, recording fee,
258	258	35 and certification fee to the owner or owners of each lot or parcel of
259	259	36 property, at the time the next cycle's property tax installment is billed.
260	260	37 (g) (i) After certification of liens under subsection (d), (e), the board
261	261	38 may not collect or accept delinquent fees, penalties, service charges,
262	262	39 recording fees, or certification fees from property owners whose
263	263	40 property has been certified to the county auditor.
264	264	41 (h) (j) If a delinquent fee, penalty, service charge, recording fee, and
265	265	42 certification fee are not paid, they shall be collected by the county
266	266	2025 IN 1316—LS 6030/DI 101 7
267	267	1 treasurer in the same way that delinquent property taxes are collected.
268	268	2 (i) (k) At the time of each semiannual tax settlement, the county
269	269	3 treasurer shall certify to the county auditor all fees, charges, and
270	270	4 penalties that have been collected. The county auditor shall deduct the
271	271	5 service charges and certification fees collected by the county treasurer
272	272	6 and pay over to the officer the remaining fees and penalties due the
273	273	7 district. The county treasurer shall retain the service charges and
274	274	8 certification fees that have been collected and shall deposit them in the
275	275	9 county general fund.
276	276	10 (j) (l) Fees, penalties, and service charges that were not recorded
277	277	11 before a recorded conveyance shall be removed from the tax roll for a
278	278	12 purchaser who, in the manner prescribed by section 29(e) 29(f) of this
279	279	13 chapter, files a verified demand with the county auditor.
280	280	14 (m) User fees, penalties, and service charges assessed against
281	281	15 property occupied by someone other than the owner, regardless of
282	282	16 whether the department has notice under section 29(e)(1) or
283	283	17 29(e)(2) of this chapter that the property is occupied by someone
284	284	18 other than the owner, shall be removed from the tax roll for an
285	285	19 owner who, in the manner prescribed by section 29(g) of this
286	286	20 chapter, files a verified demand with the county auditor.
287	287	21 (k) (n) A board may write off a fee or penalty under subsection (a)
288	288	22 (b) that is:
289	289	23 (1) less than forty dollars ($40); or
290	290	24 (2) removed from the tax roll under subsection (l) or (m).
291	291	25 SECTION 5. IC 8-1.5-5-31, AS ADDED BY P.L.131-2005,
292	292	26 SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
293	293	27 JULY 1, 2025]: Sec. 31. (a) A district may foreclose a lien, other than
294	294	28 a lien required to be released under section 30(f) or 30(g) of this
295	295	29 chapter, established by this chapter in order to collect fees and
296	296	30 penalties. The district shall recover the amount of the fees and
297	297	31 penalties, and a reasonable attorney's fee. The court shall order the sale
298	298	32 to be made without relief from valuation or appraisement laws.
299	299	33 (b) Except as otherwise provided by this chapter, actions under this
300	300	34 chapter are subject to the general statutes regarding municipal public
301	301	35 improvement assessments.
302	302	36 SECTION 6. IC 36-9-23-25, AS AMENDED BY P.L.196-2014,
303	303	37 SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
304	304	38 JULY 1, 2025]: Sec. 25. (a) Subject to section 37 of this chapter, the
305	305	39 municipal legislative body shall, by ordinance, establish just and
306	306	40 equitable fees for the services rendered by the sewage works, and
307	307	41 provide the dates on which the fees are due.
308	308	42 (b) Just and equitable fees are the fees required to maintain the
309	309	2025 IN 1316—LS 6030/DI 101 8
310	310	1 sewage works in the sound physical and financial condition necessary
311	311	2 to render adequate and efficient service. The fees must be sufficient to:
312	312	3 (1) pay all expenses incidental to the operation of the works,
313	313	4 including legal expenses, maintenance costs, operating charges,
314	314	5 repairs, lease rentals, and interest charges on bonds or other
315	315	6 obligations;
316	316	7 (2) provide the sinking fund required by section 21 of this
317	317	8 chapter;
318	318	9 (3) provide adequate money to be used as working capital; and
319	319	10 (4) provide adequate money for improving and replacing the
320	320	11 works.
321	321	12 Fees established after notice and hearing under this chapter are
322	322	13 presumed to be just and equitable.
323	323	14 (c) Except as otherwise provided in a provision included in an
324	324	15 ordinance under subsection (f), and subject to section 25.1 of this
325	325	16 chapter, the fees are payable by the owner of each lot, parcel of real
326	326	17 property, or building that:
327	327	18 (1) is connected with the sewage works by or through any part of
328	328	19 the municipal sewer system; or
329	329	20 (2) uses or is served by the works.
330	330	21 Unless the municipal legislative body finds otherwise, the works are
331	331	22 considered to benefit every lot, parcel of real property, or building
332	332	23 connected or to be connected with the municipal sewer system as a
333	333	24 result of construction work under the contract, and the fees shall be
334	334	25 billed and collected accordingly.
335	335	26 (d) The municipal legislative body may use one (1) or more of the
336	336	27 following factors to establish the fees:
337	337	28 (1) A flat charge for each sewer connection.
338	338	29 (2) The amount of water used on the property.
339	339	30 (3) The number and size of water outlets on the property.
340	340	31 (4) The amount, strength, or character of sewage discharged into
341	341	32 the sewers.
342	342	33 (5) The size of sewer connections.
343	343	34 (6) Whether the property has been or will be required to pay
344	344	35 separately for any part of the sewage works.
345	345	36 (7) Whether the property, although vacant or unimproved, is
346	346	37 benefited by a local or lateral sewer because of the availability of
347	347	38 that sewer. However, the owner must have been notified, by
348	348	39 recorded covenants and restrictions or deed restrictions in the
349	349	40 chain of title of the owner's property, that a fee or assessment for
350	350	41 sewer availability may be charged, and the fee may reflect only
351	351	42 the capital cost of the sewer and not the cost of operation and
352	352	2025 IN 1316—LS 6030/DI 101 9
353	353	1 maintenance of the sewage works.
354	354	2 (8) The cost of collecting, treating, and disposing of garbage in a
355	355	3 sanitary manner, including equipment and wages.
356	356	4 (9) The amount of money sufficient to compensate the
357	357	5 municipality for the property taxes that would be paid on the
358	358	6 sewage works if the sewage works were privately owned.
359	359	7 (10) Any other factors the legislative body considers necessary.
360	360	8 Fees collected under subdivision (8) may be spent for that purpose only
361	361	9 after compliance with all provisions of the ordinance authorizing the
362	362	10 issuance of the revenue bonds for the sewage works. The board may
363	363	11 transfer fees collected in lieu of taxes under subdivision (9) to the
364	364	12 general fund of the municipality.
365	365	13 (e) The municipal legislative body may exercise reasonable
366	366	14 discretion in adopting different schedules of fees, or making
367	367	15 classifications in schedules of fees, based on variations in:
368	368	16 (1) the costs, including capital expenditures, of furnishing
369	369	17 services to various classes of users or to various locations; or
370	370	18 (2) the number of users in various locations.
371	371	19 (f) Notwithstanding IC 14-33-5-21, this subsection does not apply
372	372	20 to a conservancy district established under IC 14-33 for the collection,
373	373	21 treatment, and disposal of sewage and other liquid wastes. In an
374	374	22 ordinance adopted under this section, the municipal legislative body
375	375	23 may include one (1) or more of the following provisions with respect
376	376	24 to property occupied by someone other than the owner of the property:
377	377	25 (1) Subject to section 25.1 of this chapter, that fees for the
378	378	26 services rendered by the sewage works to the property are payable
379	379	27 by the person occupying the property. At the option of the
380	380	28 municipal legislative body, the ordinance may include any:
381	381	29 (A) requirement for a deposit to ensure payment of the fees by
382	382	30 the person occupying the property; or
383	383	31 (B) other requirement to ensure the creditworthiness of the
384	384	32 person occupying the property as the account holder or
385	385	33 customer with respect to the property;
386	386	34 that the municipal legislative body may lawfully impose.
387	387	35 (2) Subject to section 25.1 of this chapter, that the fees for the
388	388	36 services rendered by the sewage works to the property are payable
389	389	37 by the person occupying the property if one (1) of the following
390	390	38 conditions is satisfied:
391	391	39 (A) Either the property owner or the person occupying the
392	392	40 property gives to the general office of the utility written notice
393	393	41 that indicates that the person occupying the property is
394	394	42 responsible for paying the fees with respect to the property and
395	395	2025 IN 1316—LS 6030/DI 101 10
396	396	1 requests that the account or other customer or billing records
397	397	2 maintained for the property be in the name of the person
398	398	3 occupying the property. At the option of the municipal
399	399	4 legislative body, the ordinance may provide that a document
400	400	5 that:
401	401	6 (i) is executed by the property owner and the person
402	402	7 occupying the property;
403	403	8 (ii) identifies the person occupying the property by name;
404	404	9 and
405	405	10 (iii) indicates that the person occupying the property is
406	406	11 responsible for paying the fees assessed by the utility with
407	407	12 respect to the property;
408	408	13 serves as written notice for purposes of this clause.
409	409	14 (B) The account or other customer or billing records
410	410	15 maintained by the utility for the property otherwise indicate
411	411	16 that:
412	412	17 (i) the property is occupied by someone other than the
413	413	18 owner; and
414	414	19 (ii) the person occupying the property is responsible for
415	415	20 paying the fees.
416	416	21 (C) The property owner or the person occupying the property
417	417	22 satisfies any other requirements or conditions that the
418	418	23 municipal legislative body includes in the ordinance.
419	419	24 (3) Subject to section 32.1 of this chapter, that fees assessed
420	420	25 against the property for the services rendered by the sewage
421	421	26 works to the property do not constitute a lien against the property,
422	422	27 notwithstanding section 32 of this chapter, and subject to any
423	423	28 requirements or conditions set forth in the ordinance.
424	424	29 This subsection may not be construed to prohibit a municipal
425	425	30 legislative body from including in an ordinance adopted under this
426	426	31 section any other provision that the municipal legislative body
427	427	32 considers appropriate.
428	428	33 SECTION 7. IC 36-9-23-25.1 IS ADDED TO THE INDIANA
429	429	34 CODE AS A NEW SECTION TO READ AS FOLLOWS
430	430	35 [EFFECTIVE JULY 1, 2025]: Sec. 25.1. (a) This section applies to
431	431	36 real property that is served by a municipality's sewage works and
432	432	37 occupied by someone other than the owner, regardless of whether
433	433	38 the municipality's legislative body has adopted an ordinance
434	434	39 provision described in section 25(f)(1) or 25(f)(2) of this chapter.
435	435	40 (b) If either the owner of real property to which this section
436	436	41 applies or the person occupying the property submits to the
437	437	42 general office of the utility written notice that:
438	438	2025 IN 1316—LS 6030/DI 101 11
439	439	1 (1) requests that the account or other customer or billing
440	440	2 records maintained for the property be in the name of the
441	441	3 person occupying the property; and
442	442	4 (2) includes a document that:
443	443	5 (A) is executed by the property owner and the person
444	444	6 occupying the property;
445	445	7 (B) identifies the person occupying the property by name;
446	446	8 and
447	447	9 (C) indicates that the person occupying the property is
448	448	10 responsible for paying the fees assessed by the utility with
449	449	11 respect to the property;
450	450	12 the utility shall establish or continue service to the property in the
451	451	13 name of the person occupying the property, as identified under
452	452	14 subdivision (2)(B), and shall ensure that the account or other
453	453	15 customer or billing records maintained by the utility for the
454	454	16 property are in the name of the person occupying the property,
455	455	17 subject to any requirement for a deposit to ensure payment of fees
456	456	18 by the person occupying the property, or to any other requirement
457	457	19 to ensure the creditworthiness of the person occupying the
458	458	20 property as the account holder or customer with respect to the
459	459	21 property, that the municipal legislative body may lawfully impose.
460	460	22 SECTION 8. IC 36-9-23-32, AS AMENDED BY P.L.196-2014,
461	461	23 SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
462	462	24 JULY 1, 2025]: Sec. 32. (a) Except as otherwise provided in section
463	463	25 32.1 of this chapter or in a provision included in an ordinance under
464	464	26 section 25(f)(3) of this chapter, fees assessed against real property
465	465	27 under this chapter or under any statute repealed by IC 19-2-5-30
466	466	28 (repealed September 1, 1981) constitute a lien against the property
467	467	29 assessed. The lien is superior to all other liens except tax liens. Except
468	468	30 as provided in subsections (b) and (c), the lien attaches when notice of
469	469	31 the lien is filed in the county recorder's office under section 33 of this
470	470	32 chapter.
471	471	33 (b) A fee is not enforceable as a lien against a subsequent owner of
472	472	34 property unless the lien for the fee was recorded with the county
473	473	35 recorder before the conveyance to the subsequent owner. If the property
474	474	36 is conveyed before the lien can be filed, the municipality shall notify
475	475	37 the person who owned the property at the time the fee became payable.
476	476	38 The notice must inform the person that payment, including penalty fees
477	477	39 for delinquencies, is due not more than fifteen (15) days after the date
478	478	40 of the notice. If payment is not received within one hundred eighty
479	479	41 (180) days after the date of the notice, the amount due may be
480	480	42 expensed as a bad debt loss.
481	481	2025 IN 1316—LS 6030/DI 101 12
482	482	1 (c) Except as otherwise provided in section 32.1 of this chapter or
483	483	2 in a provision included in an ordinance under section 25(f)(3) of this
484	484	3 chapter, a lien attaches against real property occupied by someone
485	485	4 other than the owner only if the utility notifies the owner not later than
486	486	5 twenty (20) days after the time the utility fees become sixty (60) days
487	487	6 delinquent. A notice sent to the owner under this subsection must be
488	488	7 sent by first class mail or by certified mail, return receipt requested (or
489	489	8 an equivalent service permitted under IC 1-1-7-1) to:
490	490	9 (1) the owner of record of real property with a single owner; or
491	491	10 (2) at least one (1) of the owners of real property with multiple
492	492	11 owners;
493	493	12 at the last address of the owner for the property as indicated in the
494	494	13 records of the county auditor on the date of the notice of the
495	495	14 delinquency, or to another address specified by the owner, in a written
496	496	15 notice to the utility, at which the owner requests to receive a notice of
497	497	16 delinquency under this subsection. The cost of sending notice under
498	498	17 this subsection is an administrative cost that may be billed to the
499	499	18 owner.
500	500	19 (d) The municipality shall release:
501	501	20 (1) liens filed with the county recorder after the recorded date of
502	502	21 conveyance of the property; and
503	503	22 (2) delinquent fees incurred by the seller;
504	504	23 upon receipt of a verified demand in writing from the purchaser. The
505	505	24 demand must state that the delinquent fees were not incurred by the
506	506	25 purchaser as a user, lessee, or previous owner, and that the purchaser
507	507	26 has not been paid by the seller for the delinquent fees.
508	508	27 (e) This subsection applies to real property that is served by a
509	509	28 municipality's sewage works and occupied by someone other than
510	510	29 the owner. Regardless of whether:
511	511	30 (1) the utility has notice under section 25.1 of this chapter, or
512	512	31 through an ordinance provision described in section 25(f)(2)
513	513	32 of this chapter, that the property is occupied by someone
514	514	33 other than the owner; or
515	515	34 (2) the municipality has adopted an ordinance provision
516	516	35 described in section 25(f)(3) of this chapter;
517	517	36 the municipality shall release any lien filed with the county
518	518	37 recorder for user fees assessed against the property and shall
519	519	38 release any delinquent user fees incurred by the person who
520	520	39 occupies the property and is responsible for paying the user fees
521	521	40 with respect to the property, upon receipt of a verified demand in
522	522	41 writing from the owner of the property. The demand must state
523	523	42 that the delinquent fees were not incurred by the owner as a user
524	524	2025 IN 1316—LS 6030/DI 101 13
525	525	1 of the sewage works and that the owner has not been paid by the
526	526	2 person occupying the property for the delinquent user fees.
527	527	3 SECTION 9. IC 36-9-23-32.1 IS ADDED TO THE INDIANA
528	528	4 CODE AS A NEW SECTION TO READ AS FOLLOWS
529	529	5 [EFFECTIVE JULY 1, 2025]: Sec. 32.1. A lien does not attach for
530	530	6 user fees assessed against property occupied by someone other
531	531	7 than the owner if either of the following applies:
532	532	8 (1) The utility has notice under section 25.1 of this chapter, or
533	533	9 through an ordinance provision described in section 25(f)(2)
534	534	10 of this chapter, that the property is occupied by someone
535	535	11 other than the owner.
536	536	12 (2) The municipality has adopted an ordinance provision
537	537	13 described in section 25(f)(3) of this chapter and any
538	538	14 requirements or conditions included in the ordinance have
539	539	15 been satisfied.
540	540	16 SECTION 10. IC 36-9-23-33, AS AMENDED BY P.L.21-2017,
541	541	17 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
542	542	18 JULY 1, 2025]: Sec. 33. (a) Subsections (c) through (l) (f) and
543	543	19 subsections (i) through (l) do not apply to unpaid fees and penalties
544	544	20 assessed against property occupied by someone other than the property
545	545	21 owner if either of the following applies:
546	546	22 (1) The municipal legislative body has adopted an ordinance
547	547	23 provision described in section 25(f) of this chapter concerning
548	548	24 property occupied by someone other than the property owner and:
549	549	25 (2) (A) the ordinance provision described in section 25(f) of
550	550	26 this chapter provides that fees assessed against the property for
551	551	27 services rendered by the sewage works to the property do not
552	552	28 constitute a lien against the property, as described in section
553	553	29 25(f)(3) of this chapter; and
554	554	30 (3) (B) any requirements or conditions (A) described in section
555	555	31 25(f)(1) or 25(f)(2) of this chapter; and (B) included in the
556	556	32 ordinance have been satisfied.
557	557	33 (2) The utility has notice under section 25.1 of this chapter, or
558	558	34 through an ordinance provision described in section 25(f)(2)
559	559	35 of this chapter, that the property is occupied by someone
560	560	36 other than the owner.
561	561	37 (b) An officer described in subsection (c) may defer enforcing the
562	562	38 collection of unpaid fees and penalties assessed under this chapter until
563	563	39 the unpaid fees and penalties have been due and unpaid for at least
564	564	40 ninety (90) days. However, in the case of property that is occupied by
565	565	41 someone other than the owner, this subsection does not relieve the
566	566	42 utility of its duty under section 32(c) of this chapter to notify the owner
567	567	2025 IN 1316—LS 6030/DI 101 14
568	568	1 not later than twenty (20) days after the time user fees become sixty
569	569	2 (60) days delinquent.
570	570	3 (c) Except as provided in subsection (m), (o), the officer charged
571	571	4 with the collection of fees and penalties assessed under this chapter
572	572	5 shall enforce their payment. As often as the officer determines is
573	573	6 necessary in a calendar year, the officer shall prepare either of the
574	574	7 following:
575	575	8 (1) A list of the delinquent fees and penalties that are enforceable
576	576	9 under this section, which must include the following:
577	577	10 (A) The name or names of the owner or owners of each lot or
578	578	11 parcel of real property on which fees are delinquent.
579	579	12 (B) A description of the premises, as shown by the records of
580	580	13 the county auditor.
581	581	14 (C) The amount of the delinquent fees, together with the
582	582	15 penalty.
583	583	16 (2) An individual instrument for each lot or parcel of real property
584	584	17 on which the fees are delinquent.
585	585	18 (d) The officer shall record a copy of each list or each individual
586	586	19 instrument with the county recorder who shall charge a fee for
587	587	20 recording the list or each individual instrument in accordance with the
588	588	21 fee schedule established in IC 36-2-7-10. The officer shall then mail to
589	589	22 each property owner on the list or on an individual instrument a notice
590	590	23 stating that a lien against the owner's property has been recorded.
591	591	24 Except for a county having a consolidated city, a service charge of five
592	592	25 dollars ($5), which is in addition to the recording fee charged under
593	593	26 this subsection and under subsection (g), shall be added to each
594	594	27 delinquent fee that is recorded.
595	595	28 (e) This subsection applies only to a county containing a
596	596	29 consolidated city. Using the lists and instruments prepared under
597	597	30 subsection (c) and recorded under subsection (d), the officer shall
598	598	31 certify to the county auditor, according to a schedule agreed upon by
599	599	32 the county treasurer and the officer, a list of the unpaid liens for
600	600	33 collection with the next cycle's property tax installment. The county
601	601	34 and its officers and employees are not liable for any material error in
602	602	35 the information on the list.
603	603	36 (f) This subsection applies to a county not described in subsection
604	604	37 (e). Using the lists and instruments prepared under subsection (c) and
605	605	38 recorded under subsection (d), the officer shall, not later than ten (10)
606	606	39 days after the list or each individual instrument is recorded under
607	607	40 subsection (d), certify to the county auditor a list of the unpaid liens for
608	608	41 collection with the next May installment of property taxes. The county
609	609	42 and its officers and employees are not liable for any material error in
610	610	2025 IN 1316—LS 6030/DI 101 15
611	611	1 the information on this list.
612	612	2 (g) The officer shall release any recorded lien when the delinquent
613	613	3 fees, penalties, service charges (if applicable), and recording fees have
614	614	4 been fully paid. The county recorder shall charge a fee for releasing the
615	615	5 lien in accordance with IC 36-2-7-10.
616	616	6 (h) The municipality shall release any recorded lien when a
617	617	7 verified demand has been filed with the county auditor under
618	618	8 section 32(d) or 32(e) of this chapter. The county recorder may not
619	619	9 charge a fee for releasing a lien under this subsection.
620	620	10 (h) (i) On receipt of the list under subsection (e) or (f), the county
621	621	11 auditor of each county shall add a fifteen dollar ($15) certification fee
622	622	12 for each lot or parcel of real property on which fees are delinquent,
623	623	13 which fee is in addition to all other fees and charges. The county
624	624	14 auditor shall immediately enter on the tax duplicate for the
625	625	15 municipality the delinquent fees, penalties, service charges (if
626	626	16 applicable), recording fees, and certification fees, which are due not
627	627	17 later than the due date of the next cycle's installment of property taxes.
628	628	18 The county treasurer shall then include any unpaid charges for the
629	629	19 delinquent fee, penalty, service charge (if applicable), recording fee,
630	630	20 and certification fee to the owner or owners of each lot or parcel of
631	631	21 property, at the time the next cycle's property tax installment is billed.
632	632	22 (i) (j) After certification of liens under subsection (f), the officer
633	633	23 may not collect or accept delinquent fees, penalties, service charges,
634	634	24 recording fees, or certification fees from property owners whose
635	635	25 property has been certified to the county auditor. This subsection does
636	636	26 not apply to a county containing a consolidated city.
637	637	27 (j) (k) If a delinquent fee, penalty, service charge (if applicable),
638	638	28 recording fee, and certification fee are not paid, they shall be collected
639	639	29 by the county treasurer in the same way that delinquent property taxes
640	640	30 are collected.
641	641	31 (k) (l) At the time of each semiannual tax settlement, the county
642	642	32 treasurer shall certify to the county auditor all fees, charges, and
643	643	33 penalties that have been collected. The county auditor shall deduct the
644	644	34 service charges (if applicable) and certification fees collected by the
645	645	35 county treasurer and pay over to the officer the remaining fees and
646	646	36 penalties due the municipality. The county treasurer shall retain the
647	647	37 service charges (if applicable) and certification fees that have been
648	648	38 collected, and shall deposit them in the county general fund.
649	649	39 (l) (m) Fees, penalties, and service charges (if applicable) that were
650	650	40 not recorded before a recorded conveyance shall be removed from the
651	651	41 tax roll for a purchaser who, in the manner prescribed by section 32(d)
652	652	42 of this chapter, files a verified demand with the county auditor.
653	653	2025 IN 1316—LS 6030/DI 101 16
654	654	1 (n) User fees, penalties, and service charges (if applicable)
655	655	2 assessed against property occupied by someone other than the
656	656	3 owner, regardless of whether:
657	657	4 (1) the utility has notice under section 25.1 of this chapter, or
658	658	5 through an ordinance provision described in section 25(f)(2)
659	659	6 of this chapter, that the property is occupied by someone
660	660	7 other than the owner; or
661	661	8 (2) the municipality has adopted an ordinance provision
662	662	9 described in section 25(f)(3) of this chapter;
663	663	10 shall be removed from the tax roll for an owner who, in the manner
664	664	11 prescribed by section 32(e) of this chapter, files a verified demand
665	665	12 with the county auditor.
666	666	13 (m) (o) A board may write off a fee or penalty under subsection (b)
667	667	14 that is:
668	668	15 (1) for less than two hundred dollars ($200); or
669	669	16 (2) removed from the tax roll under subsection (m) or (n).
670	670	17 SECTION 11. IC 36-9-23-34 IS AMENDED TO READ AS
671	671	18 FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 34. (a) A municipality
672	672	19 or board may foreclose a lien, other than a lien required to be
673	673	20 released under section 33(g) or 33(h) of this chapter, established by
674	674	21 this chapter in order to collect fees and penalties. The municipality or
675	675	22 board shall recover the amount of the fees and penalties, and a
676	676	23 reasonable attorney's fee. The court shall order the sale to be made
677	677	24 without relief from valuation or appraisement laws.
678	678	25 (b) Except as otherwise provided by this chapter, actions under this
679	679	26 chapter are subject to the general statutes regarding municipal public
680	680	27 improvement assessments.
681	681	28 SECTION 12. IC 36-9-25-11, AS AMENDED BY P.L.257-2019,
682	682	29 SECTION 163, IS AMENDED TO READ AS FOLLOWS
683	683	30 [EFFECTIVE JULY 1, 2025]: Sec. 11. (a) In connection with its duties,
684	684	31 the board may fix fees for the treatment and disposal of sewage and
685	685	32 other waste discharged into the sewerage system, collect the fees, and
686	686	33 establish and enforce rules governing the furnishing of and payment for
687	687	34 sewage treatment and disposal service. The fees must be just and
688	688	35 equitable and shall be paid by any user of the sewage works and, except
689	689	36 as otherwise provided in an ordinance provision described in
690	690	37 subsection (l), the owner of every lot, parcel of real property, or
691	691	38 building that is connected with and uses the sewage works of the
692	692	39 district by or through any part of the sewerage system. This section
693	693	40 applies to owners of property that is partially or wholly exempt from
694	694	41 taxation, as well as owners of property subject to full taxation.
695	695	42 (b) The board may change fees from time to time. The fees, together
696	696	2025 IN 1316—LS 6030/DI 101 17
697	697	1 with the taxes levied under this chapter, must at all times be sufficient
698	698	2 to produce revenues sufficient to pay operation, maintenance, and
699	699	3 administrative expenses, to pay the principal and interest on bonds as
700	700	4 they become due and payable, and to provide money for the revolving
701	701	5 fund authorized by this chapter.
702	702	6 (c) Fees may not be established until a public hearing has been held
703	703	7 at which all the users of the sewage works and owners of property
704	704	8 served or to be served by the works, including interested parties, have
705	705	9 had an opportunity to be heard concerning the proposed fees. After
706	706	10 introduction of the resolution fixing fees, and before they are finally
707	707	11 adopted, notice of the hearing setting forth the proposed schedule of
708	708	12 fees shall be given by publication in accordance with IC 5-3-1. After
709	709	13 the hearing the resolution establishing fees, either as originally
710	710	14 introduced or as amended, shall be passed and put into effect.
711	711	15 However, fees related to property that is subject to full taxation do not
712	712	16 take effect until they have been approved by ordinance of the municipal
713	713	17 legislative body or, in the case of a district described in section 3(b)(2)
714	714	18 of this chapter, under section 11.3 of this chapter.
715	715	19 (d) A copy of the schedule of the fees shall be kept on file in the
716	716	20 office of the board and must be open to inspection by all interested
717	717	21 parties. The fees established for any class of users or property served
718	718	22 shall be extended to cover any additional premises thereafter served
719	719	23 that fall within the same class, without the necessity of hearing or
720	720	24 notice.
721	721	25 (e) A change of fees may be made in the same manner as fees were
722	722	26 originally established. However, if a change is made substantially pro
723	723	27 rata for all classes of service, hearing or notice is not required, but
724	724	28 approval of the change by ordinance of the municipal legislative body
725	725	29 is required, and, in the case of a district described in section 3(b)(2) of
726	726	30 this chapter, approval under section 11.3 of this chapter is required.
727	727	31 (f) If a fee established is not paid within the time fixed by the board,
728	728	32 the board may recover, in a civil action in the name of the municipality,
729	729	33 the amount, together with a penalty of ten percent (10%) and a
730	730	34 reasonable attorney's fee from:
731	731	35 (1) the delinquent user; or
732	732	36 (2) the owner of the property, unless the board has notice under
733	733	37 section 11.4 of this chapter, or through an ordinance provision
734	734	38 described in subsection (l)(2), that the property is occupied by
735	735	39 someone other than the owner;
736	736	40 subject to any ordinance described in subsection (l).
737	737	41 (g) Except as otherwise provided in subsection (h) or (m), or in an
738	738	42 ordinance provision described in subsection (l), fees assessed against
739	739	2025 IN 1316—LS 6030/DI 101 18
740	740	1 real property under this section also constitute a lien against the
741	741	2 property assessed. The lien attaches at the time of the filing of the
742	742	3 notice of lien in the county recorder's office. The lien is superior to all
743	743	4 other liens except tax liens, and shall be enforced and foreclosed in the
744	744	5 same manner as is provided for liens under IC 36-9-23-33 and
745	745	6 IC 36-9-23-34.
746	746	7 (h) A fee assessed against real property under this section
747	747	8 constitutes a lien against the property assessed only when the fee is
748	748	9 delinquent for no more than three (3) years from the day after the fee
749	749	10 is due.
750	750	11 (i) In addition to the:
751	751	12 (1) penalties under subsections (f) and (g); or
752	752	13 (2) alternative penalty available under section 11.5 of this
753	753	14 chapter;
754	754	15 a delinquent user may not discharge water into the public sewers and
755	755	16 may have the property disconnected from the public sewers.
756	756	17 (j) The authority to establish a user fee under this section includes
757	757	18 fees to recover the cost of construction of sewage works from industrial
758	758	19 users as defined and required under federal statute or rule. Any
759	759	20 industrial users' cost recovery fees may become a lien upon the real
760	760	21 property and shall be collected in the manner provided by law. In
761	761	22 addition, the imposition of the fees, the use of the amounts collected,
762	762	23 and the criteria for the fees must be consistent with the regulations of
763	763	24 the federal Environmental Protection Agency.
764	764	25 (k) The authority to establish a user fee under this section includes
765	765	26 fees to recover the costs associated with providing financial assistance
766	766	27 under section 42 of this chapter. A fee that is:
767	767	28 (1) established under this subsection or any other law; and
768	768	29 (2) used to provide financial assistance under section 42 of this
769	769	30 chapter;
770	770	31 is considered just and equitable if the project for which the financial
771	771	32 assistance is provided otherwise complies with the requirements of this
772	772	33 chapter.
773	773	34 (l) For purposes of this subsection, "municipal legislative body"
774	774	35 refers to the legislative body of each municipality in the district, in the
775	775	36 case of a district described in section 3(b)(2) of this chapter. This
776	776	37 subsection does not apply to a conservancy district established under
777	777	38 IC 14-33 for the collection, treatment, and disposal of sewage and other
778	778	39 liquid wastes. In an ordinance adopted under this chapter, the
779	779	40 municipal legislative body may include one (1) or more of the
780	780	41 following provisions with respect to property occupied by someone
781	781	42 other than the owner of the property:
782	782	2025 IN 1316—LS 6030/DI 101 19
783	783	1 (1) That fees for the services rendered by the sewerage system to
784	784	2 the property are payable by the person occupying the property. At
785	785	3 the option of the municipal legislative body, the ordinance may
786	786	4 include any:
787	787	5 (A) requirement for a deposit to ensure payment of the fees by
788	788	6 the person occupying the property; or
789	789	7 (B) other requirement to ensure the creditworthiness of the
790	790	8 person occupying the property as the account holder or
791	791	9 customer with respect to the property;
792	792	10 that the municipal legislative body may lawfully impose.
793	793	11 (2) That the fees for the services rendered by the sewerage system
794	794	12 to the property are payable by the person occupying the property
795	795	13 if one (1) of the following conditions is satisfied:
796	796	14 (A) Either the property owner or the person occupying the
797	797	15 property gives to the board written notice that indicates that
798	798	16 the person occupying the property is responsible for paying the
799	799	17 fees with respect to the property and requests that the account
800	800	18 or other customer or billing records maintained for the
801	801	19 property be in the name of the person occupying the property.
802	802	20 At the option of the municipal legislative body, the ordinance
803	803	21 may provide that a document that:
804	804	22 (i) is executed by the property owner and the person
805	805	23 occupying the property;
806	806	24 (ii) identifies the person occupying the property by name;
807	807	25 and
808	808	26 (iii) indicates that the person occupying the property is
809	809	27 responsible for paying the fees assessed by the board with
810	810	28 respect to the property;
811	811	29 serves as written notice for purposes of this clause.
812	812	30 (B) The account or other customer or billing records
813	813	31 maintained by the board for the property otherwise indicate
814	814	32 that:
815	815	33 (i) the property is occupied by someone other than the
816	816	34 owner; and
817	817	35 (ii) the person occupying the property is responsible for
818	818	36 paying the fees.
819	819	37 (C) The property owner or the person occupying the property
820	820	38 satisfies any other requirements or conditions that the
821	821	39 municipal legislative body includes in the ordinance.
822	822	40 (3) That fees assessed against the property for the services
823	823	41 rendered by the sewerage system to the property do not constitute
824	824	42 a lien against the property, notwithstanding subsection (g), and
825	825	2025 IN 1316—LS 6030/DI 101 20
826	826	1 subject to any requirements or conditions set forth in the
827	827	2 ordinance.
828	828	3 This subsection may not be construed to prohibit a municipal
829	829	4 legislative body from including in an ordinance adopted under this
830	830	5 chapter any other provision that the municipal legislative body
831	831	6 considers appropriate.
832	832	7 (m) A lien attaches for user fees assessed against property
833	833	8 occupied by someone other than the owner only if the board
834	834	9 provides the notice required under section 11.2 of this chapter to
835	835	10 the owner at the latest address of the owner as shown on the
836	836	11 property tax records of the county in which the property is located.
837	837	12 However, a lien does not attach for user fees assessed against
838	838	13 property occupied by someone other than the owner if either of the
839	839	14 following applies:
840	840	15 (1) The board has notice under section 11.4 of this chapter, or
841	841	16 through an ordinance provision described in subsection (l)(2),
842	842	17 that the property is occupied by someone other than the
843	843	18 owner.
844	844	19 (2) The municipal legislative body has adopted an ordinance
845	845	20 provision described in subsection (l)(3) and any requirements
846	846	21 or conditions included in the ordinance have been satisfied.
847	847	22 (n) Regardless of whether the board has notice under section
848	848	23 11.4 of this chapter, or through an ordinance provision described
849	849	24 in subsection (l)(2), that property is occupied by someone other
850	850	25 than the owner, the board shall release:
851	851	26 (1) any lien filed with the county recorder for user fees
852	852	27 assessed against property occupied by someone other than the
853	853	28 owner; and
854	854	29 (2) delinquent user fees incurred by the person who occupies
855	855	30 the property and is responsible for paying the user fees
856	856	31 assessed by the board with respect to the property;
857	857	32 upon receipt of a verified demand in writing from the owner of the
858	858	33 property. The demand must state that the delinquent fees were not
859	859	34 incurred by the owner as a user of the sewage works and that the
860	860	35 owner has not been paid by the person occupying the property for
861	861	36 the delinquent user fees.
862	862	37 SECTION 13. IC 36-9-25-11.4 IS ADDED TO THE INDIANA
863	863	38 CODE AS A NEW SECTION TO READ AS FOLLOWS
864	864	39 [EFFECTIVE JULY 1, 2025]: Sec. 11.4. (a) For purposes of this
865	865	40 section, "municipal legislative body" refers to the legislative body
866	866	41 of each municipality in the district, in the case of a district
867	867	42 described in section 3(b)(2) of this chapter.
868	868	2025 IN 1316—LS 6030/DI 101 21
869	869	1 (b) This section applies to real property that is served by a
870	870	2 district's sewage works and occupied by someone other than the
871	871	3 owner, regardless of whether the municipal legislative body has
872	872	4 adopted an ordinance provision described in section 11(l)(1) or
873	873	5 11(l)(2) of this chapter.
874	874	6 (c) If either the owner of real property to which this section
875	875	7 applies or the person occupying the property submits to the board
876	876	8 written notice that:
877	877	9 (1) requests that the account or other customer or billing
878	878	10 records maintained for the property be in the name of the
879	879	11 person occupying the property; and
880	880	12 (2) includes a document that:
881	881	13 (A) is executed by the property owner and the person
882	882	14 occupying the property;
883	883	15 (B) identifies the person occupying the property by name;
884	884	16 and
885	885	17 (C) indicates that the person occupying the property is
886	886	18 responsible for paying the fees assessed by the board with
887	887	19 respect to the property;
888	888	20 the board shall establish or continue service to the property in the
889	889	21 name of the person occupying the property, as identified under
890	890	22 subdivision (2)(B), and shall ensure that the account or other
891	891	23 customer or billing records maintained by the board for the
892	892	24 property are in the name of the person occupying the property,
893	893	25 subject to any requirement for a deposit to ensure payment of fees
894	894	26 by the person occupying the property, or to any other requirement
895	895	27 to ensure the creditworthiness of the person occupying the
896	896	28 property as the account holder or customer with respect to the
897	897	29 property, that the board or the municipal legislative body may
898	898	30 lawfully impose.
899	899	2025 IN 1316—LS 6030/DI 101