*ES0459.1* April 3, 2025 ENGROSSED SENATE BILL No. 459 _____ DIGEST OF SB 459 (Updated April 3, 2025 1:04 pm - DI 150) Citations Affected: IC 4-13.1; IC 13-18. Synopsis: Environmental matters. Provides that the environmental rules board may adopt rules establishing requirements for the reclamation and reuse of treated wastewater. Requires certain entities to: (1) conduct an annual public water system cybersecurity vulnerability assessment; (2) annually provide the office of technology with the name and contact information of any individual who will act as the primary reporter of a cybersecurity incident; (3) submit an annual certification to the department of environmental management via a secured portal verifying certain information; and (4) when an actual or suspected cybersecurity breach occurs, report the incident to the office of technology. Effective: July 1, 2025. Niemeyer, Busch, Zay, Randolph Lonnie M (HOUSE SPONSORS — BAIRD, ERRINGTON, PIERCE K) January 13, 2025, read first time and referred to Committee on Environmental Affairs. February 4, 2025, amended, reported favorably — Do Pass. February 6, 2025, read second time, ordered engrossed. Engrossed. February 11, 2025, read third time, passed. Yeas 48, nays 0. HOUSE ACTION March 3, 2025, read first time and referred to Committee on Environmental Affairs. April 3, 2025, amended, reported — Do Pass. ES 459—LS 6707/DI 153 April 3, 2025 First Regular Session of the 124th General Assembly (2025) PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in this style type. Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution. Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts between statutes enacted by the 2024 Regular Session of the General Assembly. ENGROSSED SENATE BILL No. 459 A BILL FOR AN ACT to amend the Indiana Code concerning environmental law. Be it enacted by the General Assembly of the State of Indiana: 1 SECTION 1. IC 4-13.1-2-9, AS AMENDED BY P.L.137-2021, 2 SECTION 18, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 3 JULY 1, 2025]: Sec. 9. (a) This section does not apply to an entity 4 subject to IC 13-18-16.5. 5 (b) A state agency (as defined in IC 4-1-10-2), other than state 6 educational institutions, and a political subdivision (as defined in 7 IC 36-1-2-13) shall: 8 (1) report any cybersecurity incident using their best professional 9 judgment to the office without unreasonable delay and not later 10 than two (2) business days after discovery of the cybersecurity 11 incident in a format prescribed by the chief information officer; 12 and 13 (2) provide the office with the name and contact information of 14 any individual who will act as the primary reporter of a 15 cybersecurity incident described in subdivision (1) before 16 September 1, 2021, and before September 1 of every year 17 thereafter. ES 459—LS 6707/DI 153 2 1 Nothing in this section shall be construed to require reporting that 2 conflicts with federal privacy laws or is prohibited due to an ongoing 3 law enforcement investigation. 4 SECTION 2. IC 13-18-3-1.5 IS ADDED TO THE INDIANA CODE 5 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 6 1, 2025]: Sec. 1.5. (a) The board may adopt rules under IC 4-22-2 7 and IC 13-14-9 establishing standards for the reclamation and 8 reuse of treated wastewater. 9 (b) The rules adopted under subsection (a): 10 (1) must protect state waters and public health; 11 (2) may concern multiple categories of reuse; and 12 (3) may create a permitting process. 13 SECTION 3. IC 13-18-16.5 IS ADDED TO THE INDIANA CODE 14 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE 15 JULY 1, 2025]: 16 Chapter 16.5. Public Water and Wastewater Cybersecurity 17 Sec. 1. (a) This chapter applies to an entity that: 18 (1) is: 19 (A) a community water system (as defined in 20 IC 13-11-2-35.5(b)) with a population of five hundred (500) 21 or more; 22 (B) a publicly owned treatment works (as defined in 23 IC 13-11-2-177.5); or 24 (C) a semipublic facility (as defined in 327 IAC 5-1.5-59) 25 with a classification of Class III or Class IV (as described 26 in 327 IAC 5-23-3(4) and 327 IAC 5-23-3(5)); and 27 (2) utilizes: 28 (A) a computerized system to monitor and control the 29 processes of the entity's operation from a central location; 30 or 31 (B) another vulnerable monitoring or management system 32 identified by the department. 33 (b) An entity shall do the following: 34 (1) Conduct a cybersecurity vulnerability assessment at least 35 once per calendar year. 36 (2) Before September 1 of each year, provide the office of 37 technology established by IC 4-13.1-2-1 with the name and 38 contact information of any individual who will act as the 39 primary reporter of a cybersecurity incident. 40 (3) Beginning in 2026, not later than December 31 of each 41 even-numbered year, submit a certification to the department 42 via a secured portal verifying that the entity: ES 459—LS 6707/DI 153 3 1 (A) completed the assessment described in subdivision (1); 2 (B) mitigated or has documented plans to mitigate 3 identified vulnerabilities; and 4 (C) updated emergency response plans to account for 5 vulnerabilities and mitigating procedures. 6 (4) When an actual or reasonably suspected cybersecurity 7 breach occurs, report the cybersecurity incident to the office 8 of technology established by IC 4-13.1-2-1: 9 (A) either: 10 (i) not later than twenty-four (24) hours after discovery 11 of the cybersecurity incident, if the cybersecurity 12 incident impacts the operations of the entity; or 13 (ii) not later than two (2) business days after discovery of 14 the cybersecurity incident, if the cybersecurity incident 15 does not impact the operations of the entity; and 16 (B) in a format prescribed by the chief information officer 17 of the office of technology. 18 (c) In conducting an assessment under subsection (b)(1), the 19 entity shall utilize an assessment tool or framework approved by 20 the department and the office of technology established by 21 IC 4-13.1-2-1. 22 (d) An assessment conducted under subsection (b)(1) is 23 confidential under IC 5-14-3-4(b)(19). ES 459—LS 6707/DI 153 4 COMMITTEE REPORT Mr. President: The Senate Committee on Environmental Affairs, to which was referred Senate Bill No. 459, has had the same under consideration and begs leave to report the same back to the Senate with the recommendation that said bill be AMENDED as follows: Page 2, delete lines 31 through 32, begin a new line double block indented and insert: "(A) either: (i) not later than twenty-four (24) hours after discovery of the cybersecurity incident, if the cybersecurity incident impacts the operations of the entity; or (ii) not later than seventy-two (72) hours after discovery of the cybersecurity incident, if the cybersecurity incident does not impact the operations of the entity; and". and when so amended that said bill do pass. (Reference is to SB 459 as introduced.) NIEMEYER, Chairperson Committee Vote: Yeas 9, Nays 0. _____ COMMITTEE REPORT Mr. Speaker: Your Committee on Environmental Affairs, to which was referred Senate Bill 459, has had the same under consideration and begs leave to report the same back to the House with the recommendation that said bill be amended as follows: Page 1, between the enacting clause and line 1, begin a new paragraph and insert: "SECTION 1. IC 4-13.1-2-9, AS AMENDED BY P.L.137-2021, SECTION 18, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 9. (a) This section does not apply to an entity subject to IC 13-18-16.5. (b) A state agency (as defined in IC 4-1-10-2), other than state educational institutions, and a political subdivision (as defined in IC 36-1-2-13) shall: (1) report any cybersecurity incident using their best professional judgment to the office without unreasonable delay and not later ES 459—LS 6707/DI 153 5 than two (2) business days after discovery of the cybersecurity incident in a format prescribed by the chief information officer; and (2) provide the office with the name and contact information of any individual who will act as the primary reporter of a cybersecurity incident described in subdivision (1) before September 1, 2021, and before September 1 of every year thereafter. Nothing in this section shall be construed to require reporting that conflicts with federal privacy laws or is prohibited due to an ongoing law enforcement investigation.". Page 1, line 13, after "Water" insert "and Wastewater". Page 2, line 20, delete "1 of each" and insert "31 of each even-numbered". Page 2, line 35, delete "seventy-two (72) hours" and insert "two (2) business days". Renumber all SECTIONS consecutively. and when so amended that said bill do pass. (Reference is to SB 459 as printed February 5, 2025.) BAIRD Committee Vote: yeas 13, nays 0. ES 459—LS 6707/DI 153