Indiana 2025 Regular Session

Indiana House Bill HB1459 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
	1	+	EH1459.1
	2	+	March 21, 2025
	3	+	ENGROSSED
	4	+	HOUSE BILL No. 1459
	5	+	_____
	6	+	DIGEST OF HB 1459 (Updated March 20, 2025 11:02 am - DI 101)
	7	+	Citations Affected: IC 8-1.
	8	+	Synopsis: Water and wastewater utility asset management. Provides
	9	+	that beginning January 1, 2026, a water or wastewater utility (utility)
	10	+	that is not under the jurisdiction of the Indiana utility regulatory
	11	+	commission (IURC) for the approval of rates and charges shall submit
	12	+	a report on the utility's asset management program (program) to the
	13	+	IURC on a quadrennial basis according to a schedule prescribed by the
	14	+	IURC. Provides that a utility's report must include information: (1)
	15	+	demonstrating the utility's efforts to implement the Indiana finance
	16	+	(Continued next page)
	17	+	Effective: July 1, 2025.
	18	+	Pressel, Soliday
	19	+	(SENATE SPONSORS — KOCH, BOHA CEK, DORIOT)
	20	+	January 21, 2025, read first time and referred to Committee on Utilities, Energy and
	21	+	Telecommunications.
	22	+	February 11, 2025, amended, reported — Do Pass.
	23	+	February 13, 2025, read second time, amended, ordered engrossed.
	24	+	February 14, 2025, engrossed.
	25	+	February 17, 2025, read third time, passed. Yeas 95, nays 0.
	26	+	SENATE ACTION
	27	+	March 3, 2025, read first time and referred to Committee on Utilities.
	28	+	March 20, 2025, amended, reported favorably — Do Pass.
	29	+	EH 1459—LS 7314/DI 119 Digest Continued
	30	+	authority's guidelines for asset management programs; and (2)
	31	+	certifying that: (A) the utility has the technical, managerial, legal, and
	32	+	financial capability to support those efforts; and (B) for a report
	33	+	submitted after December 31, 2026, the governing body of the utility
	34	+	has completed a training or continuing education program, as required
	35	+	under the bill, at least one time during the four year reporting period.
	36	+	Provides that evidence that a utility has submitted an asset management
	37	+	program to the Indiana finance authority (IFA) in connection with an
	38	+	application for a grant, loan, or other financial assistance may be
	39	+	provided by the utility to satisfy the requirement to demonstrate the
	40	+	utility's efforts to implement the IFA's guidelines for asset management
	41	+	programs. Requires the IURC to adopt before October 1, 2025, a
	42	+	general administrative order (GAO) setting forth the: (1) information
	43	+	required to be included in a utility's report; (2) procedures for
	44	+	submission of the report, including a simplified alternative reporting
	45	+	form that a utility with less than 1,000 customers may elect to submit;
	46	+	(3) quadrennial reporting schedule for submitting a report; and (4)
	47	+	criteria to be used by the IURC in making certain determinations about
	48	+	a utility's asset management program. Provides that the IURC shall
	49	+	verify on a quadrennial basis: (1) the sufficiency of each utility's
	50	+	program; and (2) the program's compliance with the IURC's GAO.
	51	+	Provides that if the IURC determines that specified deficiencies exist
	52	+	with respect to a utility's program, the IURC: (1) shall notify the utility
	53	+	of the deficiency and provide the utility a time frame in which the
	54	+	utility must correct the deficiency; and (2) may require the utility to
	55	+	undergo an informal rate review. Provides that if a utility receives two
	56	+	consecutive notices of a deficiency from the IURC: (1) the IURC shall
	57	+	assert jurisdiction over the rates and charges of the utility; and (2) the
	58	+	utility must undergo base rate cases under the statutory procedure that
	59	+	applies to wastewater utilities that have been issued two enforcement
	60	+	orders by the department of environmental management. Provides that
	61	+	if a utility receives three consecutive notices of a deficiency over the
	62	+	course of three consecutive verifications, the IURC may initiate a
	63	+	receivership proceeding with respect to the utility. Authorizes the
	64	+	IURC to enter into an agreement with: (1) the department of
	65	+	environmental management; and (2) the Indiana finance authority; to
	66	+	carry out these requirements. Authorizes the IURC to delegate its
	67	+	authority to: (1) review reports submitted by utilities under the bill's
	68	+	provisions; and (2) issue determinations and notices of deficiency; to
	69	+	technical staff, subject to the right of a utility to appeal a determination
	70	+	by technical staff to the full IURC. Provides that beginning January 1,
	71	+	2027, the governing body of a utility must, on at least a quadrennial
	72	+	basis, complete a training or continuing education program that: (1)
	73	+	includes instruction on specified topics; and (2) is offered by: (A) the
	74	+	IURC; (B) the drinking water and wastewater infrastructure research
	75	+	and extension program; or (C) a statewide not-for-profit association for
	76	+	rural water or wastewater utilities.
	77	+	EH 1459—LS 7314/DI 119EH 1459—LS 7314/DI 119 March 21, 2025
1	78		First Regular Session of the 124th General Assembly (2025)
2	79		PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
3	80		Constitution) is being amended, the text of the existing provision will appear in this style type,
4	81		additions will appear in this style type, and deletions will appear in this style type.
5	82		Additions: Whenever a new statutory provision is being enacted (or a new constitutional
6	83		provision adopted), the text of the new provision will appear in this style type. Also, the
7	84		word NEW will appear in that style type in the introductory clause of each SECTION that adds
8	85		a new provision to the Indiana Code or the Indiana Constitution.
9	86		Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
10	87		between statutes enacted by the 2024 Regular Session of the General Assembly.
11		-	HOUSE ENROLLED ACT No. 1459
12		-	AN ACT to amend the Indiana Code concerning utilities.
	88	+	ENGROSSED
	89	+	HOUSE BILL No. 1459
	90	+	A BILL FOR AN ACT to amend the Indiana Code concerning
	91	+	utilities.
13	92		Be it enacted by the General Assembly of the State of Indiana:
14		-	SECTION 1. IC 8-1-2-128 IS ADDED TO THE INDIANA CODE
15		-	AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
16		-	1, 2025]: Sec. 128. (a) This section applies to a water or wastewater
17		-	utility regardless of whether the water or wastewater utility has
18		-	applied for or received a grant, loan, or other financial assistance
19		-	from the authority under IC 5-1.2-10.
20		-	(b) The following definitions apply throughout this section:
21		-	(1) "Authority" refers to the Indiana finance authority
22		-	established by IC 5-1.2-3-1.
23		-	(2) "Commission" refers to the Indiana utility regulatory
24		-	commission created by IC 8-1-1-2.
25		-	(3) "Water or wastewater utility" means:
26		-	(A) a public utility (as defined in section 1(a) of this
27		-	chapter);
28		-	(B) a municipally owned utility (as defined in section 1(h)
29		-	of this chapter);
30		-	(C) a not-for-profit utility (as defined in section 125(a) of
31		-	this chapter);
32		-	(D) a cooperatively owned corporation;
33		-	(E) a conservancy district established under IC 14-33; or
34		-	(F) a regional water district established under IC 13-26;
35		-	that provides water or wastewater service to the public in
36		-	HEA 1459 — Concur 2
37		-	Indiana for compensation and that is not under the
38		-	jurisdiction of the commission for approval of rates and
39		-	charges.
40		-	(c) Beginning January 1, 2026, a water or wastewater utility
41		-	shall submit to the commission, on a quadrennial basis, a report
42		-	regarding the status of the water or wastewater utility's asset
43		-	management program, as defined in the guidelines of the authority
44		-	under IC 5-1.2-10. The report required under this subsection:
	93	+	1 SECTION 1. IC 8-1-2-128 IS ADDED TO THE INDIANA CODE
	94	+	2 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
	95	+	3 1, 2025]: Sec. 128. (a) This section applies to a water or wastewater
	96	+	4 utility regardless of whether the water or wastewater utility has
	97	+	5 applied for or received a grant, loan, or other financial assistance
	98	+	6 from the authority under IC 5-1.2-10.
	99	+	7 (b) The following definitions apply throughout this section:
	100	+	8 (1) "Authority" refers to the Indiana finance authority
	101	+	9 established by IC 5-1.2-3-1.
	102	+	10 (2) "Commission" refers to the Indiana utility regulatory
	103	+	11 commission created by IC 8-1-1-2.
	104	+	12 (3) "Water or wastewater utility" means:
	105	+	13 (A) a public utility (as defined in section 1(a) of this
	106	+	14 chapter);
	107	+	15 (B) a municipally owned utility (as defined in section 1(h)
	108	+	16 of this chapter);
	109	+	17 (C) a not-for-profit utility (as defined in section 125(a) of
	110	+	EH 1459—LS 7314/DI 119 2
	111	+	1 this chapter);
	112	+	2 (D) a cooperatively owned corporation;
	113	+	3 (E) a conservancy district established under IC 14-33; or
	114	+	4 (F) a regional water district established under IC 13-26;
	115	+	5 that provides water or wastewater service to the public in
	116	+	6 Indiana for compensation and that is not under the
	117	+	7 jurisdiction of the commission for approval of rates and
	118	+	8 charges.
	119	+	9 (c) Beginning January 1, 2026, a water or wastewater utility
	120	+	10 shall submit to the commission, on a quadrennial basis, a report
	121	+	11 regarding the status of the water or wastewater utility's asset
	122	+	12 management program, as defined in the guidelines of the authority
	123	+	13 under IC 5-1.2-10. The report required under this subsection:
	124	+	14 (1) shall be made in compliance with, and according to a
	125	+	15 schedule set forth in:
	126	+	16 (A) the commission's general administrative order under
	127	+	17 subsection (h); and
	128	+	18 (B) any other general administrative orders of the
	129	+	19 commission that the commission determines to be relevant;
	130	+	20 and
	131	+	21 (2) must include information:
	132	+	22 (A) demonstrating the water or wastewater utility's efforts
	133	+	23 to implement the guidelines under IC 5-1.2-10 for asset
	134	+	24 management programs; and
	135	+	25 (B) certifying that:
	136	+	26 (i) the water or wastewater utility has the technical,
	137	+	27 managerial, legal, and financial capability to support
	138	+	28 those efforts; and
	139	+	29 (ii) in the case of a report submitted after December 31,
	140	+	30 2026, the governing body of the water or wastewater
	141	+	31 utility has completed a training or continuing education
	142	+	32 program described in subsection (j) at least one (1) time
	143	+	33 during the four (4) year period covered by the report.
	144	+	34 Evidence that a water or wastewater utility has submitted an asset
	145	+	35 management program to the authority in connection with an
	146	+	36 application for a grant, loan, or other financial assistance under
	147	+	37 IC 5-1.2 may be provided by the water or wastewater utility to
	148	+	38 satisfy the requirement under subdivision (2)(A), as long as the
	149	+	39 water or wastewater utility provides all other information required
	150	+	40 under this section and under the commission's general
	151	+	41 administrative order under subsection (h). In addition to providing
	152	+	42 the required information concerning the water or wastewater
	153	+	EH 1459—LS 7314/DI 119 3
	154	+	1 utility's asset management program, a water or wastewater utility
	155	+	2 shall also include in a report required by this subsection
	156	+	3 information regarding the status of any federal consent decree or
	157	+	4 other federal order to which the water or wastewater utility is
	158	+	5 subject at the time the report is submitted.
	159	+	6 (d) Subject to subsection (i), the commission shall verify, on a
	160	+	7 quadrennial basis, that the asset management program of each
	161	+	8 water or wastewater utility is sufficient and complies with the
	162	+	9 commission's general administrative order under subsection (h). If
	163	+	10 the commission determines that a water or wastewater utility's
	164	+	11 asset management program:
	165	+	12 (1) does not comply with the commission's general
	166	+	13 administrative order under subsection (h); or
	167	+	14 (2) is otherwise insufficient to demonstrate that the water or
	168	+	15 wastewater utility has the technical, managerial, legal, and
	169	+	16 financial capability to operate and maintain the water or
	170	+	17 wastewater utility's water or wastewater system;
	171	+	18 the commission shall notify the water or wastewater utility of the
	172	+	19 deficiency and provide a time frame in which the water or
	173	+	20 wastewater utility must correct the deficiency. The commission
	174	+	21 may require the water or wastewater utility to undergo an
	175	+	22 informal rate review in the manner set forth in IC 8-1-1.9-5(e)(1).
	176	+	23 (e) If a water or wastewater utility receives two (2) consecutive
	177	+	24 notices of a deficiency under subsection (d) over the course of two
	178	+	25 (2) consecutive verifications under subsection (d):
	179	+	26 (1) the commission shall assert jurisdiction over the rates and
	180	+	27 charges of the water or wastewater utility; and
	181	+	28 (2) the water or wastewater utility must undergo base rate
	182	+	29 cases before the commission in the manner set forth in
	183	+	30 IC 8-1-1.9-5(e)(2).
	184	+	31 Notwithstanding IC 8-1-2.7 or IC 8-1-1.9-5(e)(3), if, after the
	185	+	32 required period of rate regulation prescribed by IC 8-1-1.9-5(e)(2),
	186	+	33 the water or wastewater utility submits a report to the commission
	187	+	34 under subsection (c), and the commission determines that the
	188	+	35 report indicates that the water or wastewater utility's asset
	189	+	36 management program is sufficient, the water or wastewater utility
	190	+	37 may provide to the commission a notice withdrawing the utility
	191	+	38 from the commission's jurisdiction.
	192	+	39 (f) If a water or wastewater utility receives three (3) consecutive
	193	+	40 notices of a deficiency under subsection (d) over the course of three
	194	+	41 (3) consecutive verifications under subsection (d), the commission
	195	+	42 may initiate a receivership proceeding with respect to the water or
	196	+	EH 1459—LS 7314/DI 119 4
	197	+	1 wastewater utility.
	198	+	2 (g) The commission may enter into an agreement with:
	199	+	3 (1) the department of environmental management; and
	200	+	4 (2) the authority;
	201	+	5 to carry out the requirements set forth in this section.
	202	+	6 (h) Before October 1, 2025, the commission shall issue a general
	203	+	7 administrative order setting forth:
	204	+	8 (1) the information required to be included in a report under
	205	+	9 subsection (c);
	206	+	10 (2) the procedures for submitting a report under subsection
	207	+	11 (c), including a simplified alternative reporting form that:
	208	+	12 (A) a water or wastewater utility with less than one
	209	+	13 thousand (1,000) customers may elect to submit; and
	210	+	14 (B) enables the water or wastewater utility to:
	211	+	15 (i) demonstrate the water or wastewater utility's efforts
	212	+	16 to implement the guidelines under IC 5-1.2-10 for asset
	213	+	17 management programs; and
	214	+	18 (ii) certify that the water or wastewater utility has the
	215	+	19 technical, managerial, legal, and financial capability to
	216	+	20 support those efforts;
	217	+	21 (3) the quadrennial reporting schedule for submitting a report
	218	+	22 under subsection (c);
	219	+	23 (4) criteria to be used by the commission under subsection (d)
	220	+	24 to:
	221	+	25 (A) determine whether a water or wastewater utility has
	222	+	26 undertaken efforts to establish and implement an asset
	223	+	27 management plan in accordance with the guidelines under
	224	+	28 IC 5-1.2-10; and
	225	+	29 (B) identify a deficiency that would require a water or
	226	+	30 wastewater utility to undergo an informal rate review in
	227	+	31 the manner set forth in IC 8-1-1.9-5(e)(1); and
	228	+	32 (5) any other information the commission considers relevant
	229	+	33 under this section.
	230	+	34 (i) The commission may delegate its authority to:
	231	+	35 (1) review reports submitted by water or wastewater utilities
	232	+	36 under subsection (c); and
	233	+	37 (2) issue determinations and notices of deficiency under
	234	+	38 subsection (d);
	235	+	39 to technical staff. A determination or notice of deficiency issued by
	236	+	40 technical staff may be appealed to the full commission. An action
	237	+	41 by the commission under this section is subject to review under
	238	+	42 IC 8-1-3.
	239	+	EH 1459—LS 7314/DI 119 5
	240	+	1 (j) Beginning January 1, 2027, the governing body of a water or
	241	+	2 wastewater utility must, on at least a quadrennial basis, complete
	242	+	3 a training or continuing education program that:
	243	+	4 (1) includes instruction on:
	244	+	5 (A) best practices for establishing, implementing, and
	245	+	6 maintaining an asset management program, as defined in
	246	+	7 the guidelines of the authority under IC 5-1.2-10;
	247	+	8 (B) the fiduciary duties of governing bodies of water or
	248	+	9 wastewater utilities;
	249	+	10 (C) best practices with respect to the financial
	250	+	11 management of water or wastewater utilities; and
	251	+	12 (D) complying with environmental regulations; and
	252	+	13 (2) is offered by one (1) of the following providers:
	253	+	14 (A) The commission.
	254	+	15 (B) The drinking water and wastewater infrastructure
	255	+	16 research and extension program authorized by
	256	+	17 IC 5-1.2-11.5-10.
	257	+	18 (C) A statewide not-for-profit association whose
	258	+	19 membership includes rural water or wastewater utilities.
	259	+	20 A provider listed in clause (A) or (B) must offer at least one
	260	+	21 (1) training or continuing education program under this
	261	+	22 subsection at low or no cost to governing bodies of water or
	262	+	23 wastewater utilities. Not later than January 1, 2027, the
	263	+	24 commission shall publish on the commission's website a list of
	264	+	25 providers offering a training or continuing education
	265	+	26 program described in this subsection.
	266	+	EH 1459—LS 7314/DI 119 6
	267	+	COMMITTEE REPORT
	268	+	Mr. Speaker: Your Committee on Utilities, Energy and
	269	+	Telecommunications, to which was referred House Bill 1459, has had
	270	+	the same under consideration and begs leave to report the same back
	271	+	to the House with the recommendation that said bill be amended as
	272	+	follows:
	273	+	Page 1, between lines 9 and 10, begin a new line block indented and
	274	+	insert:
	275	+	"(2) "Commission" refers to the Indiana utility regulatory
	276	+	commission created by IC 8-1-1-2.".
	277	+	Page 1, line 10, delete "(2)" and insert "(3)".
	278	+	Page 2, line 6, delete "On or before December 31 of each year, a"
	279	+	and insert "A".
	280	+	Page 2, line 7, delete "authority" and insert "commission".
	281	+	Page 2, line 9, after "IC 5-1.2-10." insert "The report required
	282	+	under this subsection shall be made in compliance with, and
	283	+	according to a schedule set forth in:
	284	+	(1) the commission's general administrative order under
	285	+	subsection (h); and
	286	+	(2) any other general administrative orders of the commission
	287	+	that the commission determines to be relevant.".
	288	+	Page 2, line 10, delete "authority shall review each water or
	289	+	wastewater utility's" and insert "commission shall verify, on a
	290	+	quadrennial basis, that the asset management program of each
	291	+	water or wastewater utility is sufficient and complies with the
	292	+	commission's general administrative order under subsection (h).".
	293	+	Page 2, delete lines 11 through 12.
	294	+	Page 2, line 13, delete "authority's guidelines. If the authority" and
	295	+	insert "If the commission".
	296	+	Page 2, line 15, delete "authority's guidelines; or" and insert
	297	+	"commission's general administrative order under subsection (h);
	298	+	or".
	299	+	Page 2, line 20, delete "authority may refer the water or wastewater
	300	+	utility to the" and insert "commission shall notify the water or
	301	+	wastewater utility of the deficiency and provide a time frame in
	302	+	which the water or wastewater utility must correct the deficiency.
	303	+	The commission may require the water or wastewater utility to
	304	+	undergo an informal rate review in the manner set forth in
	305	+	IC 8-1-1.9-5(e)(1).
	306	+	(e) If a water or wastewater utility receives two (2) consecutive
	307	+	notices of a deficiency under subsection (d) over the course of two
	308	+	EH 1459—LS 7314/DI 119 7
	309	+	(2) consecutive verifications under subsection (d):
	310	+	(1) the commission shall assert jurisdiction over the rates and
	311	+	charges of the water or wastewater utility; and
	312	+	(2) the water or wastewater utility must undergo a base rate
	313	+	case in the manner set forth in IC 8-1-1.9-5(e)(2).
	314	+	The water or wastewater utility shall remain subject to the
	315	+	jurisdiction of the commission for a minimum of five (5) years after
	316	+	the commission's order in the rate case required by this subsection.
	317	+	If, after the five (5) year period prescribed by this subsection, the
	318	+	water or wastewater utility submits a report to the commission
	319	+	under subsection (c), and the commission determines that the
	320	+	report indicates that the water or wastewater utility's asset
	321	+	management program is sufficient, the water or wastewater utility
	322	+	may provide to the commission a notice withdrawing the utility
	323	+	from the commission's jurisdiction.
	324	+	(f) If a water or wastewater utility receives three (3) consecutive
	325	+	notices of a deficiency under subsection (d) over the course of three
	326	+	(3) consecutive verifications under subsection (d), the commission
	327	+	may initiate a receivership proceeding with respect to the water or
	328	+	wastewater utility.
	329	+	(g) The commission may enter into an agreement with:
	330	+	(1) the department of environmental management; and
	331	+	(2) the authority;
	332	+	to carry out the requirements set forth in this section.
	333	+	(h) Before September 1, 2025, the commission shall issue a
	334	+	general administrative order setting forth:
	335	+	(1) the information required to be included in a report under
	336	+	subsection (c);
	337	+	(2) the procedures for submitting a report under subsection
	338	+	(c);
	339	+	(3) the reporting schedule for submitting a report under
	340	+	subsection (c); and
	341	+	(4) any other information the commission considers relevant
	342	+	under this section.".
	343	+	Page 2, delete line 21.
	344	+	and when so amended that said bill do pass.
	345	+	(Reference is to HB 1459 as introduced.)
	346	+	SOLIDAY
	347	+	Committee Vote: yeas 13, nays 0.
	348	+	EH 1459—LS 7314/DI 119 8
	349	+	HOUSE MOTION
	350	+	Mr. Speaker: I move that House Bill 1459 be amended to read as
	351	+	follows:
	352	+	Page 2, between lines 17 and 18, begin a new line blocked left and
	353	+	insert:
	354	+	"In addition to providing the required information concerning the
	355	+	water or wastewater utility's asset management program, a water
	356	+	or wastewater utility shall also include in a report required by this
	357	+	subsection information detailing any federal consent decree or
	358	+	other federal order to which the water or wastewater utility is
	359	+	subject at the time the report is submitted.".
	360	+	(Reference is to HB 1459 as printed February 11, 2025.)
	361	+	BURTON
	362	+	_____
	363	+	COMMITTEE REPORT
	364	+	Mr. President: The Senate Committee on Utilities, to which was
	365	+	referred House Bill No. 1459, has had the same under consideration
	366	+	and begs leave to report the same back to the Senate with the
	367	+	recommendation that said bill be AMENDED as follows:
	368	+	Page 1, line 5, delete "loan" and insert "grant, loan,".
	369	+	Page 1, line 6, delete "Indiana finance".
	370	+	Page 2, line 6, delete "a fee" and insert "compensation".
	371	+	Page 2, line 8, delete "A" and insert "Beginning January 1, 2026,
	372	+	a".
	373	+	Page 2, line 8, delete "a report to the" and insert "to the
	374	+	commission, on a quadrennial basis, a report regarding the status
	375	+	of".
	376	+	Page 2, line 9, delete "commission detailing".
	377	+	Page 2, line 11, delete "subsection shall" and insert "subsection:
45	378		(1) shall be made in compliance with, and according to a
46	379		schedule set forth in:
47	380		(A) the commission's general administrative order under
48	381		subsection (h); and
49	382		(B) any other general administrative orders of the
50	383		commission that the commission determines to be relevant;
51	384		and
52	385		(2) must include information:
53	386		(A) demonstrating the water or wastewater utility's efforts
	387	+	EH 1459—LS 7314/DI 119 9
54	388		to implement the guidelines under IC 5-1.2-10 for asset
55	389		management programs; and
56	390		(B) certifying that:
57	391		(i) the water or wastewater utility has the technical,
58	392		managerial, legal, and financial capability to support
59	393		those efforts; and
60	394		(ii) in the case of a report submitted after December 31,
61	395		2026, the governing body of the water or wastewater
62	396		utility has completed a training or continuing education
63	397		program described in subsection (j) at least one (1) time
64	398		during the four (4) year period covered by the report.
65	399		Evidence that a water or wastewater utility has submitted an asset
66	400		management program to the authority in connection with an
67	401		application for a grant, loan, or other financial assistance under
68	402		IC 5-1.2 may be provided by the water or wastewater utility to
69	403		satisfy the requirement under subdivision (2)(A), as long as the
70	404		water or wastewater utility provides all other information required
71	405		under this section and under the commission's general
72	406		administrative order under subsection (h). In addition to providing
73	407		the required information concerning the water or wastewater
74	408		utility's asset management program, a water or wastewater utility
75	409		shall also include in a report required by this subsection
76	410		information regarding the status of any federal consent decree or
77	411		other federal order to which the water or wastewater utility is
78		-	subject at the time the report is submitted.
79		-	HEA 1459 — Concur 3
80		-	(d) Subject to subsection (i), the commission shall verify, on a
81		-	quadrennial basis, that the asset management program of each
82		-	water or wastewater utility is sufficient and complies with the
83		-	commission's general administrative order under subsection (h). If
84		-	the commission determines that a water or wastewater utility's
85		-	asset management program:
86		-	(1) does not comply with the commission's general
87		-	administrative order under subsection (h); or
88		-	(2) is otherwise insufficient to demonstrate that the water or
89		-	wastewater utility has the technical, managerial, legal, and
90		-	financial capability to operate and maintain the water or
91		-	wastewater utility's water or wastewater system;
92		-	the commission shall notify the water or wastewater utility of the
93		-	deficiency and provide a time frame in which the water or
94		-	wastewater utility must correct the deficiency. The commission
95		-	may require the water or wastewater utility to undergo an
96		-	informal rate review in the manner set forth in IC 8-1-1.9-5(e)(1).
97		-	(e) If a water or wastewater utility receives two (2) consecutive
98		-	notices of a deficiency under subsection (d) over the course of two
99		-	(2) consecutive verifications under subsection (d):
100		-	(1) the commission shall assert jurisdiction over the rates and
101		-	charges of the water or wastewater utility; and
102		-	(2) the water or wastewater utility must undergo base rate
103		-	cases before the commission in the manner set forth in
104		-	IC 8-1-1.9-5(e)(2).
105		-	Notwithstanding IC 8-1-2.7 or IC 8-1-1.9-5(e)(3), if, after the
106		-	required period of rate regulation prescribed by IC 8-1-1.9-5(e)(2),
107		-	the water or wastewater utility submits a report to the commission
108		-	under subsection (c), and the commission determines that the
109		-	report indicates that the water or wastewater utility's asset
110		-	management program is sufficient, the water or wastewater utility
111		-	may provide to the commission a notice withdrawing the utility
112		-	from the commission's jurisdiction.
113		-	(f) If a water or wastewater utility receives three (3) consecutive
114		-	notices of a deficiency under subsection (d) over the course of three
115		-	(3) consecutive verifications under subsection (d), the commission
116		-	may initiate a receivership proceeding with respect to the water or
117		-	wastewater utility.
118		-	(g) The commission may enter into an agreement with:
119		-	(1) the department of environmental management; and
120		-	(2) the authority;
121		-	to carry out the requirements set forth in this section.
122		-	HEA 1459 — Concur 4
123		-	(h) Before October 1, 2025, the commission shall issue a general
124		-	administrative order setting forth:
125		-	(1) the information required to be included in a report under
126		-	subsection (c);
127		-	(2) the procedures for submitting a report under subsection
128		-	(c), including a simplified alternative reporting form that:
	412	+	subject at the time the report is submitted.".
	413	+	Page 2, delete lines 12 through 23.
	414	+	Page 2, line 24, delete "The" and insert "Subject to subsection (i),
	415	+	the".
	416	+	Page 3, line 4, delete "a".
	417	+	Page 3, line 5, delete "case" and insert "cases before the
	418	+	commission".
	419	+	Page 3, delete lines 6 through 8.
	420	+	Page 3, line 9, delete "If, after the five (5) year period prescribed by
	421	+	this subsection," and insert "Notwithstanding IC 8-1-2.7 or
	422	+	IC 8-1-1.9-5(e)(3), if, after the required period of rate regulation
	423	+	prescribed by IC 8-1-1.9-5(e)(2),".
	424	+	Page 3, line 25, delete "September" and insert "October".
	425	+	Page 3, line 30, delete "(c);" and insert "(c), including a simplified
	426	+	alternative reporting form that:
129	427		(A) a water or wastewater utility with less than one
130	428		thousand (1,000) customers may elect to submit; and
131	429		(B) enables the water or wastewater utility to:
	430	+	EH 1459—LS 7314/DI 119 10
132	431		(i) demonstrate the water or wastewater utility's efforts
133	432		to implement the guidelines under IC 5-1.2-10 for asset
134	433		management programs; and
135	434		(ii) certify that the water or wastewater utility has the
136	435		technical, managerial, legal, and financial capability to
137		-	support those efforts;
138		-	(3) the quadrennial reporting schedule for submitting a report
139		-	under subsection (c);
140		-	(4) criteria to be used by the commission under subsection (d)
	436	+	support those efforts;".
	437	+	Page 3, line 31, after "the" insert "quadrennial".
	438	+	Page 3, line 32, delete "and".
	439	+	Page 3, between lines 32 and 33, begin a new line block indented
	440	+	and insert:
	441	+	"(4) criteria to be used by the commission under subsection (d)
141	442		to:
142	443		(A) determine whether a water or wastewater utility has
143	444		undertaken efforts to establish and implement an asset
144	445		management plan in accordance with the guidelines under
145	446		IC 5-1.2-10; and
146	447		(B) identify a deficiency that would require a water or
147	448		wastewater utility to undergo an informal rate review in
148		-	the manner set forth in IC 8-1-1.9-5(e)(1); and
149		-	(5) ~~any other information the commission considers relevant~~
150		-	~~under this section.~~
151		-	(i) The commission may delegate its authority to:
	449	+	the manner set forth in IC 8-1-1.9-5(e)(1); and".
	450	+	Page 3, line 33, delete "(4)" and insert "(5)".
	451	+	Page 3, after line 34, begin a new paragraph and insert:
	452	+	"(i) The commission may delegate its authority to:
152	453		(1) review reports submitted by water or wastewater utilities
153	454		under subsection (c); and
154	455		(2) issue determinations and notices of deficiency under
155	456		subsection (d);
156	457		to technical staff. A determination or notice of deficiency issued by
157	458		technical staff may be appealed to the full commission. An action
158	459		by the commission under this section is subject to review under
159	460		IC 8-1-3.
160	461		(j) Beginning January 1, 2027, the governing body of a water or
161	462		wastewater utility must, on at least a quadrennial basis, complete
162	463		a training or continuing education program that:
163	464		(1) includes instruction on:
164	465		(A) best practices for establishing, implementing, and
165		-	HEA 1459 — Concur 5
166	466		maintaining an asset management program, as defined in
167	467		the guidelines of the authority under IC 5-1.2-10;
168	468		(B) the fiduciary duties of governing bodies of water or
169	469		wastewater utilities;
170	470		(C) best practices with respect to the financial
171	471		management of water or wastewater utilities; and
172	472		(D) complying with environmental regulations; and
	473	+	EH 1459—LS 7314/DI 119 11
173	474		(2) is offered by one (1) of the following providers:
174	475		(A) The commission.
175	476		(B) The drinking water and wastewater infrastructure
176	477		research and extension program authorized by
177	478		IC 5-1.2-11.5-10.
178	479		(C) A statewide not-for-profit association whose
179	480		membership includes rural water or wastewater utilities.
180	481		A provider listed in clause (A) or (B) must offer at least one
181	482		(1) training or continuing education program under this
182	483		subsection at low or no cost to governing bodies of water or
183	484		wastewater utilities. Not later than January 1, 2027, the
184	485		commission shall publish on the commission's website a list of
185	486		providers offering a training or continuing education
186		-	program described in this subsection.
187		-	HEA 1459 — Concur Speaker of the House of Representatives
188		-	President of the Senate
189		-	President Pro Tempore
190		-	Governor of the State of Indiana
191		-	Date: Time:
192		-	HEA 1459 — Concur
	487	+	program described in this subsection.".
	488	+	and when so amended that said bill do pass.
	489	+	(Reference is to HB 1459 as reprinted February 14, 2025.)
	490	+	KOCH, Chairperson
	491	+	Committee Vote: Yeas 9, Nays 0.
	492	+	EH 1459—LS 7314/DI 119