LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 7314 NOTE PREPARED: Jan 13, 2025
BILL NUMBER: HB 1459 BILL AMENDED:
SUBJECT: Water and Wastewater Utility Asset Management.
FIRST AUTHOR: Rep. Pressel BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
XDEDICATED
FEDERAL
Summary of Legislation: This bill provides that: (1) water or wastewater utilities that are not under the
authority of the Indiana Utility Regulatory Commission (IURC) for approval of rates and charges shall
annually submit to the Indiana Finance Authority (IFA) a report detailing the water or wastewater utility's
asset management program; and (2) the IFA: (A) shall biennially review a water or wastewater utility's asset
management program for compliance with the authority's guidelines; and (B) may refer a water or wastewater
utility to the IURC for investigation based on the authority's review of the water or wastewater utility's asset
management program.
Effective Date: July 1, 2025.
Explanation of State Expenditures: This bill will increase the workload of the Indiana Finance Authority
(IFA) to review reports from utilities in the state concerning adoption and utilization of asset management
plans. Increases in IFA workload are expected to be accomplished within existing resource and funding
levels.
The bill could also increase the workload of the Indiana Utility Regulatory Commission (IURC) to
investigate utilities that do not comply with the bill’s requirements. Increases in workload are within the
routine administrative function of the agency and are expected to be accomplished within existing and
funding levels.
Additional Information - Water and wastewater utilities that currently receive financing under a state
revolving fund managed by the IFA (Clean Water State Revolving Fund, Drinking Water State Revolving
Fund, etc) are currently required to utilize an asset management plan.
Explanation of State Revenues:
Explanation of Local Expenditures: The bill would increase the workload of municipally-owned water and
wastewater utilities to file annual reports with the IFA concerning utilization of asset management plans.
Additionally, to the extent a municipally-owned utility does not currently utilize an asset management plan,
HB 1459 1 the bill would increase local workload to implement a plan.
Explanation of Local Revenues:
State Agencies Affected: IFA, IURC.
Local Agencies Affected: Municipally-owned water and wastewater utilities.
Information Sources: https://www.in.gov/ifa/srf/files/Guidance-Packet-update-07-18-2024.pdf
Fiscal Analyst: Abdul Abdulkadri, 317-232-9852, Bill Brumbach, 317-232-9559
HB 1459 2