LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 7230 NOTE PREPARED: Jan 8, 2025
BILL NUMBER: SB 427 BILL AMENDED:
SUBJECT: Nonjurisdictional Water Utilities.
FIRST AUTHOR: Sen. Koch BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED: GENERAL IMPACT: State & Local
XDEDICATED
FEDERAL
Summary of Legislation: This bill includes water utilities within the scope of the statute that subjects
wastewater utilities that: (1) are not under the jurisdiction of the Indiana Utility Regulatory Commission
(IURC) for the approval of rates and charges; and (2) have been issued one or more enforcement orders by
the department of environmental management; to a series of oversight actions by the IURC for each
additional enforcement order, including rate review, rate regulation, and the initiation of a receivership
proceeding. It also makes a conforming amendment to the statute that governs the process by which water
utilities and wastewater utilities may withdraw from the jurisdiction of the IURC.
Effective Date: July 1, 2025.
Explanation of State Expenditures: The workload of the IURC may increase by the statute’s addition of
water utilities to IURC oversight actions after enforcement orders. Depending of the number of water utilities
that undergo enforcement orders, the IURC’s workload may increase significantly. This bill prohibits the
IURC from informally reviewing a water utility’s rate structure and asset management within 12 months of
its first enforcement order.
Utilities that have two or more enforcement orders within two years and were not initially under the IURC’s
jurisdiction must go under the IURC’s jurisdiction. [Between CY 2023 and 2024, six municipal wastewater
utilities were subject to enforcement orders. Three have started addressing the orders from the Indiana
Department of Environmental Management (IDEM).]
Explanation of State Revenues:
Explanation of Local Expenditures: Municipal water utilities that are not under the IURC’s jurisdiction
may be subject to increased workloads and reporting requirements should they fall into the commission’s
jurisdiction for receiving two enforcement orders within two years.
Explanation of Local Revenues:
SB 427 1 State Agencies Affected: IURC, IDEM
Local Agencies Affected:
Information Sources: 2024 Indiana Utility Regulatory Commission Annual Report;
https://www.in.gov/iurc/files/IURC-2024-Annual-Report-web.pdf
Fiscal Analyst: Abdulrahman Abdulkadri, 317-232-9852.
SB 427 2