| 1 | + | *ES0459.1* |
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| 2 | + | April 3, 2025 |
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| 3 | + | ENGROSSED |
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| 4 | + | SENATE BILL No. 459 |
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| 5 | + | _____ |
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| 6 | + | DIGEST OF SB 459 (Updated April 3, 2025 1:04 pm - DI 150) |
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| 7 | + | Citations Affected: IC 4-13.1; IC 13-18. |
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| 8 | + | Synopsis: Environmental matters. Provides that the environmental |
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| 9 | + | rules board may adopt rules establishing requirements for the |
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| 10 | + | reclamation and reuse of treated wastewater. Requires certain entities |
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| 11 | + | to: (1) conduct an annual public water system cybersecurity |
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| 12 | + | vulnerability assessment; (2) annually provide the office of technology |
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| 13 | + | with the name and contact information of any individual who will act |
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| 14 | + | as the primary reporter of a cybersecurity incident; (3) submit an |
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| 15 | + | annual certification to the department of environmental management |
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| 16 | + | via a secured portal verifying certain information; and (4) when an |
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| 17 | + | actual or suspected cybersecurity breach occurs, report the incident to |
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| 18 | + | the office of technology. |
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| 19 | + | Effective: July 1, 2025. |
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| 20 | + | Niemeyer, Busch, Zay, |
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| 21 | + | Randolph Lonnie M |
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| 22 | + | (HOUSE SPONSORS — BAIRD, ERRINGTON, PIERCE K) |
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| 23 | + | January 13, 2025, read first time and referred to Committee on Environmental Affairs. |
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| 24 | + | February 4, 2025, amended, reported favorably — Do Pass. |
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| 25 | + | February 6, 2025, read second time, ordered engrossed. Engrossed. |
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| 26 | + | February 11, 2025, read third time, passed. Yeas 48, nays 0. |
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| 27 | + | HOUSE ACTION |
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| 28 | + | March 3, 2025, read first time and referred to Committee on Environmental Affairs. |
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| 29 | + | April 3, 2025, amended, reported — Do Pass. |
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| 30 | + | ES 459—LS 6707/DI 153 April 3, 2025 |
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14 | | - | SECTION 1. IC 4-13.1-2-9, AS AMENDED BY P.L.137-2021, |
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| 46 | + | 1 SECTION 1. IC 4-13.1-2-9, AS AMENDED BY P.L.137-2021, |
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| 47 | + | 2 SECTION 18, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE |
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| 48 | + | 3 JULY 1, 2025]: Sec. 9. (a) This section does not apply to an entity |
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| 49 | + | 4 subject to IC 13-18-16.5. |
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| 50 | + | 5 (b) A state agency (as defined in IC 4-1-10-2), other than state |
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| 51 | + | 6 educational institutions, and a political subdivision (as defined in |
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| 52 | + | 7 IC 36-1-2-13) shall: |
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| 53 | + | 8 (1) report any cybersecurity incident using their best professional |
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| 54 | + | 9 judgment to the office without unreasonable delay and not later |
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| 55 | + | 10 than two (2) business days after discovery of the cybersecurity |
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| 56 | + | 11 incident in a format prescribed by the chief information officer; |
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| 57 | + | 12 and |
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| 58 | + | 13 (2) provide the office with the name and contact information of |
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| 59 | + | 14 any individual who will act as the primary reporter of a |
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| 60 | + | 15 cybersecurity incident described in subdivision (1) before |
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| 61 | + | 16 September 1, 2021, and before September 1 of every year |
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| 62 | + | 17 thereafter. |
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| 63 | + | ES 459—LS 6707/DI 153 2 |
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| 64 | + | 1 Nothing in this section shall be construed to require reporting that |
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| 65 | + | 2 conflicts with federal privacy laws or is prohibited due to an ongoing |
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| 66 | + | 3 law enforcement investigation. |
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| 67 | + | 4 SECTION 2. IC 13-18-3-1.5 IS ADDED TO THE INDIANA CODE |
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| 68 | + | 5 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY |
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| 69 | + | 6 1, 2025]: Sec. 1.5. (a) The board may adopt rules under IC 4-22-2 |
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| 70 | + | 7 and IC 13-14-9 establishing standards for the reclamation and |
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| 71 | + | 8 reuse of treated wastewater. |
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| 72 | + | 9 (b) The rules adopted under subsection (a): |
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| 73 | + | 10 (1) must protect state waters and public health; |
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| 74 | + | 11 (2) may concern multiple categories of reuse; and |
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| 75 | + | 12 (3) may create a permitting process. |
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| 76 | + | 13 SECTION 3. IC 13-18-16.5 IS ADDED TO THE INDIANA CODE |
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| 77 | + | 14 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE |
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| 78 | + | 15 JULY 1, 2025]: |
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| 79 | + | 16 Chapter 16.5. Public Water and Wastewater Cybersecurity |
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| 80 | + | 17 Sec. 1. (a) This chapter applies to an entity that: |
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| 81 | + | 18 (1) is: |
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| 82 | + | 19 (A) a community water system (as defined in |
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| 83 | + | 20 IC 13-11-2-35.5(b)) with a population of five hundred (500) |
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| 84 | + | 21 or more; |
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| 85 | + | 22 (B) a publicly owned treatment works (as defined in |
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| 86 | + | 23 IC 13-11-2-177.5); or |
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| 87 | + | 24 (C) a semipublic facility (as defined in 327 IAC 5-1.5-59) |
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| 88 | + | 25 with a classification of Class III or Class IV (as described |
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| 89 | + | 26 in 327 IAC 5-23-3(4) and 327 IAC 5-23-3(5)); and |
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| 90 | + | 27 (2) utilizes: |
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| 91 | + | 28 (A) a computerized system to monitor and control the |
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| 92 | + | 29 processes of the entity's operation from a central location; |
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| 93 | + | 30 or |
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| 94 | + | 31 (B) another vulnerable monitoring or management system |
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| 95 | + | 32 identified by the department. |
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| 96 | + | 33 (b) An entity shall do the following: |
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| 97 | + | 34 (1) Conduct a cybersecurity vulnerability assessment at least |
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| 98 | + | 35 once per calendar year. |
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| 99 | + | 36 (2) Before September 1 of each year, provide the office of |
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| 100 | + | 37 technology established by IC 4-13.1-2-1 with the name and |
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| 101 | + | 38 contact information of any individual who will act as the |
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| 102 | + | 39 primary reporter of a cybersecurity incident. |
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| 103 | + | 40 (3) Beginning in 2026, not later than December 31 of each |
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| 104 | + | 41 even-numbered year, submit a certification to the department |
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| 105 | + | 42 via a secured portal verifying that the entity: |
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| 106 | + | ES 459—LS 6707/DI 153 3 |
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| 107 | + | 1 (A) completed the assessment described in subdivision (1); |
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| 108 | + | 2 (B) mitigated or has documented plans to mitigate |
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| 109 | + | 3 identified vulnerabilities; and |
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| 110 | + | 4 (C) updated emergency response plans to account for |
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| 111 | + | 5 vulnerabilities and mitigating procedures. |
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| 112 | + | 6 (4) When an actual or reasonably suspected cybersecurity |
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| 113 | + | 7 breach occurs, report the cybersecurity incident to the office |
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| 114 | + | 8 of technology established by IC 4-13.1-2-1: |
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| 115 | + | 9 (A) either: |
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| 116 | + | 10 (i) not later than twenty-four (24) hours after discovery |
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| 117 | + | 11 of the cybersecurity incident, if the cybersecurity |
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| 118 | + | 12 incident impacts the operations of the entity; or |
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| 119 | + | 13 (ii) not later than two (2) business days after discovery of |
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| 120 | + | 14 the cybersecurity incident, if the cybersecurity incident |
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| 121 | + | 15 does not impact the operations of the entity; and |
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| 122 | + | 16 (B) in a format prescribed by the chief information officer |
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| 123 | + | 17 of the office of technology. |
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| 124 | + | 18 (c) In conducting an assessment under subsection (b)(1), the |
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| 125 | + | 19 entity shall utilize an assessment tool or framework approved by |
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| 126 | + | 20 the department and the office of technology established by |
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| 127 | + | 21 IC 4-13.1-2-1. |
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| 128 | + | 22 (d) An assessment conducted under subsection (b)(1) is |
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| 129 | + | 23 confidential under IC 5-14-3-4(b)(19). |
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| 130 | + | ES 459—LS 6707/DI 153 4 |
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| 131 | + | COMMITTEE REPORT |
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| 132 | + | Mr. President: The Senate Committee on Environmental Affairs, to |
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| 133 | + | which was referred Senate Bill No. 459, has had the same under |
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| 134 | + | consideration and begs leave to report the same back to the Senate with |
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| 135 | + | the recommendation that said bill be AMENDED as follows: |
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| 136 | + | Page 2, delete lines 31 through 32, begin a new line double block |
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| 137 | + | indented and insert: |
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| 138 | + | "(A) either: |
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| 139 | + | (i) not later than twenty-four (24) hours after discovery |
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| 140 | + | of the cybersecurity incident, if the cybersecurity |
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| 141 | + | incident impacts the operations of the entity; or |
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| 142 | + | (ii) not later than seventy-two (72) hours after discovery |
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| 143 | + | of the cybersecurity incident, if the cybersecurity |
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| 144 | + | incident does not impact the operations of the entity; |
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| 145 | + | and". |
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| 146 | + | and when so amended that said bill do pass. |
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| 147 | + | (Reference is to SB 459 as introduced.) |
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| 148 | + | NIEMEYER, Chairperson |
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| 149 | + | Committee Vote: Yeas 9, Nays 0. |
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| 150 | + | _____ |
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| 151 | + | COMMITTEE REPORT |
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| 152 | + | Mr. Speaker: Your Committee on Environmental Affairs, to which |
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| 153 | + | was referred Senate Bill 459, has had the same under consideration and |
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| 154 | + | begs leave to report the same back to the House with the |
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| 155 | + | recommendation that said bill be amended as follows: |
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| 156 | + | Page 1, between the enacting clause and line 1, begin a new |
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| 157 | + | paragraph and insert: |
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| 158 | + | "SECTION 1. IC 4-13.1-2-9, AS AMENDED BY P.L.137-2021, |
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33 | | - | law enforcement investigation. |
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34 | | - | SECTION 2. IC 13-18-3-1.5 IS ADDED TO THE INDIANA CODE |
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35 | | - | AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY |
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36 | | - | SEA 459 — Concur 2 |
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37 | | - | 1, 2025]: Sec. 1.5. (a) The board may adopt rules under IC 4-22-2 |
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38 | | - | and IC 13-14-9 establishing standards for the reclamation and |
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39 | | - | reuse of treated wastewater. |
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40 | | - | (b) The rules adopted under subsection (a): |
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41 | | - | (1) must protect state waters and public health; |
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42 | | - | (2) may concern multiple categories of reuse; and |
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43 | | - | (3) may create a permitting process. |
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44 | | - | SECTION 3. IC 13-18-16.5 IS ADDED TO THE INDIANA CODE |
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45 | | - | AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE |
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46 | | - | JULY 1, 2025]: |
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47 | | - | Chapter 16.5. Public Water and Wastewater Cybersecurity |
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48 | | - | Sec. 1. (a) This chapter applies to an entity that: |
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49 | | - | (1) is: |
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50 | | - | (A) a community water system (as defined in |
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51 | | - | IC 13-11-2-35.5(b)) with a population of five hundred (500) |
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52 | | - | or more; |
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53 | | - | (B) a publicly owned treatment works (as defined in |
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54 | | - | IC 13-11-2-177.5); or |
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55 | | - | (C) a semipublic facility (as defined in 327 IAC 5-1.5-59) |
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56 | | - | with a classification of Class III or Class IV (as described |
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57 | | - | in 327 IAC 5-23-3(4) and 327 IAC 5-23-3(5)); and |
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58 | | - | (2) utilizes: |
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59 | | - | (A) a computerized system to monitor and control the |
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60 | | - | processes of the entity's operation from a central location; |
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61 | | - | or |
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62 | | - | (B) another vulnerable monitoring or management system |
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63 | | - | identified by the department. |
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64 | | - | (b) An entity shall do the following: |
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65 | | - | (1) Conduct a cybersecurity vulnerability assessment at least |
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66 | | - | once per calendar year. |
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67 | | - | (2) Before September 1 of each year, provide the office of |
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68 | | - | technology established by IC 4-13.1-2-1 with the name and |
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69 | | - | contact information of any individual who will act as the |
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70 | | - | primary reporter of a cybersecurity incident. |
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71 | | - | (3) Beginning in 2026, not later than December 31 of each |
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72 | | - | even-numbered year, submit a certification to the department |
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73 | | - | via a secured portal verifying that the entity: |
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74 | | - | (A) completed the assessment described in subdivision (1); |
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75 | | - | (B) mitigated or has documented plans to mitigate |
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76 | | - | identified vulnerabilities; and |
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77 | | - | (C) updated emergency response plans to account for |
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78 | | - | vulnerabilities and mitigating procedures. |
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79 | | - | SEA 459 — Concur 3 |
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80 | | - | (4) When an actual or reasonably suspected cybersecurity |
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81 | | - | breach occurs, report the cybersecurity incident to the office |
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82 | | - | of technology established by IC 4-13.1-2-1: |
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83 | | - | (A) either: |
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84 | | - | (i) not later than twenty-four (24) hours after discovery |
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85 | | - | of the cybersecurity incident, if the cybersecurity |
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86 | | - | incident impacts the operations of the entity; or |
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87 | | - | (ii) not later than two (2) business days after discovery of |
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88 | | - | the cybersecurity incident, if the cybersecurity incident |
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89 | | - | does not impact the operations of the entity; and |
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90 | | - | (B) in a format prescribed by the chief information officer |
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91 | | - | of the office of technology. |
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92 | | - | (c) In conducting an assessment under subsection (b)(1), the |
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93 | | - | entity shall utilize an assessment tool or framework approved by |
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94 | | - | the department and the office of technology established by |
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95 | | - | IC 4-13.1-2-1. |
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96 | | - | (d) An assessment conducted under subsection (b)(1) is |
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97 | | - | confidential under IC 5-14-3-4(b)(19). |
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98 | | - | SEA 459 — Concur President of the Senate |
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99 | | - | President Pro Tempore |
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100 | | - | Speaker of the House of Representatives |
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101 | | - | Governor of the State of Indiana |
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102 | | - | Date: Time: |
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103 | | - | SEA 459 — Concur |
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| 178 | + | law enforcement investigation.". |
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| 179 | + | Page 1, line 13, after "Water" insert "and Wastewater". |
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| 180 | + | Page 2, line 20, delete "1 of each" and insert "31 of each |
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| 181 | + | even-numbered". |
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| 182 | + | Page 2, line 35, delete "seventy-two (72) hours" and insert "two (2) |
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| 183 | + | business days". |
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| 184 | + | Renumber all SECTIONS consecutively. |
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| 185 | + | and when so amended that said bill do pass. |
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| 186 | + | (Reference is to SB 459 as printed February 5, 2025.) |
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| 187 | + | BAIRD |
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| 188 | + | Committee Vote: yeas 13, nays 0. |
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| 189 | + | ES 459—LS 6707/DI 153 |
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