reglab/statecodes huggingface dataset:
2023 Indiana Code › Title 8. Utilities and Transportation › Article 1.5. Municipal Utilities › Chapter 2. Transfer, Acquisition, and Improvement of Utilities by Municipalities › 8-1.5-2-6. Sale of Nonsurplus Property; Terms of Ordinance; Satisfaction of Existing Obligations; Bid Submitted by Trust; Proceeds; Sale for Less Than Appraised Value

Sec. 6. (a) The ordinance adopted by the municipal legislative body under section 5(d) of this chapter must provide for:
(1) the sale or disposition of the municipally owned utility property;
(2) the manner of the sale or disposition;
(3) the price, terms, and conditions of the sale or disposition, which must be consistent with any contractual obligations previously incurred under IC 8-1-2.2; and
(4) the officer or officers who are to execute the proper documents conveying title on behalf of the municipality.
(b) Except as provided in subsection (e), the property may not be sold for less than its full appraised value, as set forth in the appraisal, less the amount of any bonds, liens, or other indebtedness due upon the property, and only in accordance with contractual obligations incurred under IC 8-1-2.2. The indebtedness shall either:
(1) be paid in accordance with the terms and conditions of the instruments governing the indebtedness before the sale; or
(2) be assumed and paid by the purchaser as part of the purchase price of the property.
(c) This subsection applies if a municipal legislative body adopts an ordinance for the sale or disposition of municipally owned utility real property by acceptance of bids. A bid submitted by a trust (as defined in IC 30-4-1-1(a)) must identify each:
(1) beneficiary of the trust; and
(2) settlor empowered to revoke or modify the trust.
(d) The proceeds of any sale under this chapter shall be paid into the treasury of the municipality making the sale and become part of the general fund, unless the municipal legislative body adopts an ordinance to provide that the proceeds of the sale shall be paid into a restricted fund to be used only in the manner set forth in the ordinance.
(e) The municipally owned utility property that is the subject of an ordinance adopted under section 5(d) of this chapter may be sold for less than its full appraised value, as set forth in the appraisal, if the municipal legislative body determines that it would be in the municipality's best interests to sell the property for less than its full appraised value so as to result in lower utility rates to be charged by the prospective purchaser to customers of the municipality's municipally owned utility.
As added by Acts 1982, P.L.74, SEC.1. Amended by P.L.104-1983, SEC.1; P.L.336-1989(ss), SEC.18; P.L.103-2008, SEC.4; P.L.98-2016, SEC.9.
2023 Indiana Code › Title 8. Utilities and Transportation › Article 1.5. Municipal Utilities › Chapter 2. Transfer, Acquisition, and Improvement of Utilities by Municipalities › 8-1.5-2-7. Public Convenience and Necessity; Declaratory Resolution

Sec. 7. (a) A certificate of public convenience and necessity is not required as a condition precedent to the owning, leasing, acquisition, construction, or operation of a utility by a municipality, even if there is a public utility engaged in a similar service. The acquisition of electric utility property and assignment of a municipal electric utility's service area are, however, subject to the provisions of IC 8-1-2.3 and IC 8-1-2-95.1.
(b) Subsection (d) applies to the following:
(1) A municipality that wants to acquire an existing utility, including by purchase or condemnation under IC 8-1-2-92, IC 8-1-2-93, or otherwise.
(2) A municipality that wants to own and operate a utility in a location where, or contiguous to where, there is a public utility engaged in a similar service:
(A) under a franchise granted by the municipality; or
(B) under an indeterminate permit as defined in IC 8-1-2-1.
(c) Notwithstanding subsection (b), subsection (d) does not apply to the following:
(1) A municipality that owns and operates a water utility as of July 1, 2012.
(2) An action brought under:
(A) IC 8-1-2-92;
(B) IC 8-1-2-93; or
(C) this chapter;
before March 1, 2013.
(d) Before a municipality described in subsection (b) may declare by ordinance that public convenience and necessity require the establishment of a municipally owned utility, the municipality shall conduct a hearing under section 10 of this chapter.
As added by Acts 1982, P.L.74, SEC.1. Amended by P.L.172-2009, SEC.3; P.L.270-2013, SEC.4.
2023 Indiana Code › Title 8. Utilities and Transportation › Article 1.5. Municipal Utilities › Chapter 2. Transfer, Acquisition, and Improvement of Utilities by Municipalities › 8-1.5-2-8. Preliminary Expenses; Appropriation

Sec. 8. Before a municipal legislative body:
(1) proposes to construct or acquire a utility; and
(2) makes a determination as to public convenience and necessity;
it may appropriate out of its general fund an amount not exceeding five percent (5%) of the total estimated cost of constructing or acquiring the utility, as necessary to pay the expenses of a preliminary investigation, surveys, plans, specifications, and appraisals, including engineering and legal expenses in constructing or acquiring the utility. Any action by the municipal legislative body in making an appropriation is final and not subject to review by the department of local government finance. The municipal legislative body may renew or adjust the appropriation on an annual basis until the construction or acquisition of the utility is complete.
As added by Acts 1982, P.L.74, SEC.1. Amended by P.L.90-2002, SEC.313; P.L.172-2009, SEC.4.
2023 Indiana Code › Title 8. Utilities and Transportation › Article 1.5. Municipal Utilities › Chapter 2. Transfer, Acquisition, and Improvement of Utilities by Municipalities › 8-1.5-2-9. Appropriation for Preliminary Expenses; Repayment

Sec. 9. If the municipal legislative body proceeds to construct or acquire the utility, there must be included in the total amount of money to be raised by the issuance of bonds in connection with the construction or acquisition of the utility the amount of the expenditures that will be repaid to the general fund of the municipality from the money derived from the issuance and sale of the bonds.
As added by Acts 1982, P.L.74, SEC.1.
2023 Indiana Code › Title 8. Utilities and Transportation › Article 1.5. Municipal Utilities › Chapter 2. Transfer, Acquisition, and Improvement of Utilities by Municipalities › 8-1.5-2-10. Ordinance Declaring Public Convenience and Necessity; Notice and Hearing

Sec. 10. (a) Before a municipal legislative body adopts an ordinance declaring that public convenience and necessity require the construction or acquisition of a utility as provided by section 7 of this chapter, each public utility furnishing a similar utility service in the municipality, or in the contiguous territory in which the municipality proposes to operate, shall be given ten (10) days notice by the legislative body of the time and place where the hearing will be held. At the hearing, the public utility is entitled to be heard in person or by counsel in opposition to the proposed action.
(b) Notice must be served by delivering a copy to an officer or manager of the public utility in the municipality, if possible, or to an officer of the public utility elsewhere in Indiana.
As added by Acts 1982, P.L.74, SEC.1.
2023 Indiana Code › Title 8. Utilities and Transportation › Article 1.5. Municipal Utilities › Chapter 2. Transfer, Acquisition, and Improvement of Utilities by Municipalities › 8-1.5-2-12. Sale of Heat, Light, Water, or Power to Municipality

Sec. 12. (a) Upon the approval by resolution of the municipal legislative body, a municipally owned utility may sell or furnish heat, light, water, or power to the municipality to be used exclusively for the furnishing of utility service to the municipality for its own municipal purposes.
(b) This section is not intended to permit the sale or furnishing of power to the municipality where the sale would affect the obligation of any contract or franchise.
As added by Acts 1982, P.L.74, SEC.1.
2023 Indiana Code › Title 8. Utilities and Transportation › Article 1.5. Municipal Utilities › Chapter 2. Transfer, Acquisition, and Improvement of Utilities by Municipalities › 8-1.5-2-13. Contracts for Acquisition, Construction, or Replacement of Public Utility Property; Authorizing Ordinance

Sec. 13. A contract made by the municipal legislative body for the acquisition, construction, extension, or replacement of the property of a public utility must be authorized by ordinance. The ordinance must provide for the principal and interest of bonds issued for the payment of the cost of the acquisition, construction, extension, or replacement to be paid exclusively from the income and revenue of the property acquired with the proceeds of the bonds.
As added by Acts 1982, P.L.74, SEC.1.
2023 Indiana Code › Title 8. Utilities and Transportation › Article 1.5. Municipal Utilities › Chapter 2. Transfer, Acquisition, and Improvement of Utilities by Municipalities › 8-1.5-2-14. Costs of Construction or Acquisition; Security for Payment

Sec. 14. A municipality that constructs or acquires a utility may, through its municipal legislative body, provide for and secure the payment of the cost of constructing, acquiring, extending, or improving the utility by assigning or otherwise pledging the property acquired, together with the net earnings or profits derived or to be derived from the operation of the utility or utilities. Contracts, warrants, debentures, or pledges of future revenues entered into by a municipally owned utility are not an indebtedness of the municipality within the meaning of any constitutional debt limitation.
As added by Acts 1982, P.L.74, SEC.1.
2023 Indiana Code › Title 8. Utilities and Transportation › Article 1.5. Municipal Utilities › Chapter 2. Transfer, Acquisition, and Improvement of Utilities by Municipalities › 8-1.5-2-15. Condemnation; Authorization

Sec. 15. (a) This section applies to the following:
(1) A municipality that, as of July 1, 2012, had established and operated a water utility.
(2) An action brought under:
(A) IC 8-1-2-92;
(B) IC 8-1-2-93; or
(C) this chapter;
before March 1, 2013.
(b) If the municipality and the owners of a public utility are unable to agree upon a price to be paid for the property of the public utility, the municipality may:
(1) by ordinance declare that a public necessity exists for the condemnation of the utility property; and
(2) bring an action in the circuit or superior court of the county where the municipality is located against the utility for the condemnation of the property.
(c) An ordinance adopted under subsection (b) is final.
(d) For the purpose of acquiring the property of a public utility, the municipality:
(1) may exercise the power of eminent domain in accordance with IC 32-24; and
(2) is required only to establish the necessity of taking as this chapter requires.
(e) The provisions of this section do not apply to the acquisition of electric utility property or the assignment of service areas covered by IC 8-1-2.3 and IC 8-1-2-95.1.
As added by Acts 1982, P.L.74, SEC.1. Amended by P.L.2-2002, SEC.38; P.L.270-2013, SEC.5.
2023 Indiana Code › Title 8. Utilities and Transportation › Article 1.5. Municipal Utilities › Chapter 2. Transfer, Acquisition, and Improvement of Utilities by Municipalities › 8-1.5-2-15.5. Condemnation of Public Utility

Sec. 15.5. (a) This section does not apply to the following:
(1) A municipality that, as of July 1, 2012, had established a water utility.
(2) An action brought under:
(A) IC 8-1-2-92;
(B) IC 8-1-2-93; or
(C) this chapter;
before March 1, 2013.
(3) The acquisition of electric utility property or the assignment of service areas covered by IC 8-1-2.3 and IC 8-1-2-95.1.
(4) The acquisition of water or sewer utility property, unless the requirements of IC 8-1-30 are satisfied.
(b) If the municipality and the owners of a public utility are unable to agree upon a price to be paid for the property of the public utility, the municipality may bring an action in the circuit or superior court of the county where the municipality is located against the utility for the condemnation of the property.
(c) For the purpose of acquiring the property of a public utility, the municipality shall exercise the power of eminent domain in accordance with IC 32-24-1.
As added by P.L.270-2013, SEC.6.
2023 Indiana Code › Title 8. Utilities and Transportation › Article 1.5. Municipal Utilities › Chapter 2. Transfer, Acquisition, and Improvement of Utilities by Municipalities › 8-1.5-2-16. Repealed

As added by Acts 1982, P.L.74, SEC.1. Amended by P.L.3-1997, SEC.426; P.L.2-1998, SEC.35. Repealed by P.L.172-2009, SEC.8.
2023 Indiana Code › Title 8. Utilities and Transportation › Article 1.5. Municipal Utilities › Chapter 2. Transfer, Acquisition, and Improvement of Utilities by Municipalities › 8-1.5-2-17. Acquisition of Property Rights Inside or Outside Boundaries; Utility Lines; Protection of Services From Injury or Pollution; Attachments From Abuse, Destruction, or Waste

Sec. 17. (a) A municipality, by exercising the power of eminent domain in accordance with IC 32-24 or other applicable law, may acquire property rights inside or outside its corporate boundaries as necessary for the business of a municipally owned utility.
(b) The municipal legislative body may provide for utility lines to be laid through the municipality as the municipally owned utility requires. The municipality may use any property or property rights necessary for constructing, acquiring, operating, or protecting from injury or pollution the municipally owned utility services.
(c) For the purpose of preserving and protecting from injury or pollution the municipal water services, the municipality may exercise its powers in areas within twenty-five (25) miles outside its corporate boundaries.
(d) All attachments made to the utility fixtures, whether intended for public or private use, are subject to the supervision and rules of the utility for protection against abuse or destruction or the inordinate use or waste of utility services.
As added by Acts 1982, P.L.74, SEC.1. Amended by P.L.2-2002, SEC.39.
2023 Indiana Code › Title 8. Utilities and Transportation › Article 1.5. Municipal Utilities › Chapter 2. Transfer, Acquisition, and Improvement of Utilities by Municipalities › 8-1.5-2-18. Bonds; Payable Out of Special Account; Issuance

Sec. 18. (a) To provide money to pay for the construction or acquisition of a utility under this chapter, or its extension, improvement, or replacement in whole or in part, or its repair, the municipal legislative body may issue and sell bonds bearing interest at any rate, executed and payable at times not to exceed forty (40) years from the date of issuance, and at places as the legislative body determines. The bonds and interest on them are payable only out of a special account, and the bonds do not constitute an indebtedness of the municipality within the meaning of the constitutional limitations.
(b) Each bond must state plainly upon its face:
(1) that it is payable only from a special account;
(2) the account and the ordinance creating it; and
(3) that it does not constitute an indebtedness of the municipality within the meaning of any constitutional debt limitation.
(c) The bonds shall be sold in accordance with IC 5-1-11.
(d) This section provides an alternative method of financing for all municipalities, notwithstanding any other law.
As added by Acts 1982, P.L.74, SEC.1.
2023 Indiana Code › Title 8. Utilities and Transportation › Article 1.5. Municipal Utilities › Chapter 2. Transfer, Acquisition, and Improvement of Utilities by Municipalities › 8-1.5-2-19. Bonds, Notes, or Other Obligations; Issuance; Approval by Commission for Long Term Bonds

Sec. 19. (a) A municipality may not issue bonds, notes, or other obligations under this chapter without the approval of the commission if the bond, notes, or other obligations are payable more than twelve (12) months after their execution, except as authorized by IC 8-1-2.2-11.
(b) If the evidence presented to the commission establishes that the rates and charges proposed by the municipally owned utility will provide sufficient funds for the operation, maintenance, and depreciation of the utility, and to pay the principal and interest of the proposed bond issue, together with a surplus or margin of at least ten percent (10%) in excess, the commission shall so certify in its order approving the issuance of bonds.
As added by Acts 1982, P.L.74, SEC.1. Amended by P.L.103-2008, SEC.5.
2023 Indiana Code › Title 8. Utilities and Transportation › Article 1.5. Municipal Utilities › Chapter 2. Transfer, Acquisition, and Improvement of Utilities by Municipalities › 8-1.5-2-19.5. Purchase of Equipment Requiring Lead Time Before Availability; Approval of Contracts if Sufficient Funds Available

Sec. 19.5. If a municipality desires to purchase and install equipment for its utility which requires more than three (3) months lead time for the supplier to make such equipment and installation available, the legislative body may, by ordinance, approve a contract therefor even though it does not have sufficient funds appropriated or on hand to pay for such purchase if the utility:
(1) has annual net operating revenues for the immediately preceding calendar year sufficient to permit the municipality:
(A) to pay the principal of and interest on an issue of its utility revenue bonds in the principal amount necessary to fund such purchase (including engineering costs, legal costs, and costs of bond issuance associated therewith); and
(B) a margin of safety which it deems necessary to market such bonds on acceptable terms;
(2) if required by section 19 of this chapter, has received approval from the commission to issue bonds, notes, or other obligations sufficient to fund such purchase; or
(3) has received approval from the commission to raise its rates and charges in an amount sufficient to permit the issuance of said bonds.
As added by P.L.105-1983, SEC.1. Amended by P.L.103-2008, SEC.6.
2023 Indiana Code › Title 8. Utilities and Transportation › Article 1.5. Municipal Utilities › Chapter 2. Transfer, Acquisition, and Improvement of Utilities by Municipalities › 8-1.5-2-20. Bonds; Payment From Revenues Not Derived From Particular Utility; Restriction

Sec. 20. Except as provided by section 22 of this chapter, the municipal legislative body may not adopt an ordinance, or enter into or ratify a contract, for the payment, directly or indirectly, of a bond or bonds by revenues derived by the municipality from the levy of taxes, from the issuance of any bonds other than from the issuance of bonds specifically authorized by this chapter or by a refunding statute, or from any source except the revenues derived from that particular utility.
As added by Acts 1982, P.L.74, SEC.1.
2023 Indiana Code › Title 8. Utilities and Transportation › Article 1.5. Municipal Utilities › Chapter 2. Transfer, Acquisition, and Improvement of Utilities by Municipalities › 8-1.5-2-21. Bonds Payable Out of Special Account; Purchase by Municipality

Sec. 21. A municipality may invest its own money in the bonds issued under section 18 of this chapter.
As added by Acts 1982, P.L.74, SEC.1.
2023 Indiana Code › Title 8. Utilities and Transportation › Article 1.5. Municipal Utilities › Chapter 2. Transfer, Acquisition, and Improvement of Utilities by Municipalities › 8-1.5-2-22. General Obligation Bonds; Authorization; Limitation

Sec. 22. (a) If the municipal legislative body decides that it is impracticable to raise the entire amount necessary to construct or acquire the utility solely by the issuance and sale of revenue bonds, the legislative body may, by ordinance, provide that a part of the amount may be raised by the issuance and sale of bonds pledging the general credit of the municipality.
(b) The bonds shall be issued in accordance with IC 6-1.1-20. The bonds may not exceed one-third (1/3) of the total cost of the utility. This limitation does not apply to a utility to be owned and operated by a municipality exclusively for the purpose of furnishing utility service to the municipality for its own municipal purposes.
As added by Acts 1982, P.L.74, SEC.1.
2023 Indiana Code › Title 8. Utilities and Transportation › Article 1.5. Municipal Utilities › Chapter 2. Transfer, Acquisition, and Improvement of Utilities by Municipalities › 8-1.5-2-23. General Obligation Bonds; Terms; Sale

Sec. 23. If general obligation bonds are issued, they:
(1) may be issued in any denomination;
(2) are payable at a time not to exceed forty (40) years from issuance;
(3) may bear interest at any rate payable semiannually; and
(4) shall be sold for not less than par value and accrued interest;
as provided by ordinance. The bonds shall be sold in accordance with IC 5-1-11.
As added by Acts 1982, P.L.74, SEC.1.
2023 Indiana Code › Title 8. Utilities and Transportation › Article 1.5. Municipal Utilities › Chapter 2. Transfer, Acquisition, and Improvement of Utilities by Municipalities › 8-1.5-2-24. Revenue Bonds; Money Set Aside for Payment of Interest and Principal

Sec. 24. (a) The board of a municipally owned utility, as defined by IC 8-1.5-3-2, shall, at least semiannually, set aside from the net earnings a sufficient amount to pay the interest and principal, as they become due, on revenue bonds issued in payment for the utility or for its improvement. This money may not be used for any other purpose.
(b) The commission shall approve the amount set aside for the payment of the interest and principal when the commission approves the rates and charges of the municipality.
As added by Acts 1982, P.L.74, SEC.1.
2023 Indiana Code › Title 8. Utilities and Transportation › Article 1.5. Municipal Utilities › Chapter 2. Transfer, Acquisition, and Improvement of Utilities by Municipalities › 8-1.5-2-25. Special Utility Account; Establishment by Municipality; Use

Sec. 25. (a) The municipal legislative body, after providing for the:
(1) payment of operation and maintenance expenses of the utility;
(2) payment of the interest and principal on revenue bonds and creation of reserves for them;
(3) payment of the interest and principal on general obligation bonds and creation of reserves for them; and
(4) payment of assessed taxes;
shall set aside a sufficient remainder of the earnings into a separate and special account to be identified as the special utility account, to be used and applied in the extension, replacement in whole or in part, repair, and operation and maintenance of the utility.
(b) The remaining earnings may be applied to:
(1) the general fund of the municipality in accordance with IC 8-1.5-3-11, outstanding bond ordinances, and contract provisions under IC 8-1-2.2;
(2) the payment of the interest on a loan made for utility construction; or
(3) the creation of a sinking fund for the liquidation of the debt;
as the legislative body determines.
As added by Acts 1982, P.L.74, SEC.1.
2023 Indiana Code › Title 8. Utilities and Transportation › Article 1.5. Municipal Utilities › Chapter 2. Transfer, Acquisition, and Improvement of Utilities by Municipalities › 8-1.5-2-26. Tax Levy for Payment of Bonds

Sec. 26. (a) To pay the principal and interest on bonds issued for the construction, acquisition, extension, or improvement of a municipally owned utility, the municipal legislative body may levy an annual tax of sufficient amount on all taxable property of the municipality.
(b) If the legislative body:
(1) has contracted with a person for supplying utility services or has agreed to lease or purchase utility services; and
(2) has, in the contract, agreed to pay a stated rental, a stipulated purchase price, or other compensation to the person, or has issued bonds to pay for stock in the company or to purchase the plant;
it may levy an annual tax for payment of the rent or other consideration or purchase price to be paid for utility services, or for the purchase price of a plant, and to pay the principal and interest on the bonds.
(c) The tax under this section shall be levied and collected as other municipal taxes are levied and collected, and the proceeds shall be used only for the purpose for which the tax was levied.
As added by Acts 1982, P.L.74, SEC.1.
2023 Indiana Code › Title 8. Utilities and Transportation › Article 1.5. Municipal Utilities › Chapter 2. Transfer, Acquisition, and Improvement of Utilities by Municipalities › 8-1.5-2-27. Lease of Waterworks Facilities; Term; Option to Purchase or Renew; Transfer of Property to Municipality

Sec. 27. (a) A municipality may lease waterworks facilities from a not-for-profit corporation, a public utility, a county, or a municipality. The term of the lease may not exceed fifty (50) years. The lease must provide that the municipality has an option to:
(1) renew the lease for a further term on like conditions; and
(2) purchase the waterworks facilities covered by the lease contract with the terms and conditions of the purchase specified in the lease.
(b) If the option to purchase the waterworks facilities covered by the lease is exercised, the municipality, for the purpose of procuring money to pay the purchase price, may issue and sell revenue bonds under other laws governing the issuance and sale of waterworks revenue bonds for additions and extensions to municipal waterworks.
(c) If the municipality has not exercised an option to purchase the property covered by the lease at the expiration of the lease, and upon the full discharge and performance by the municipality of its obligations under the lease contract, the property covered by the lease thereupon becomes the absolute property of the municipality, and the lessor shall execute proper instruments conveying to the municipality good and merchantable title thereto.
As added by Acts 1982, P.L.74, SEC.1. Amended by P.L.35-1990, SEC.26; P.L.252-2015, SEC.20.
2023 Indiana Code › Title 8. Utilities and Transportation › Article 1.5. Municipal Utilities › Chapter 2. Transfer, Acquisition, and Improvement of Utilities by Municipalities › 8-1.5-2-28. Lease of Waterworks Facilities; Payment of Operating Expenses; Sufficiency of Rates and Charges

Sec. 28. (a) A waterworks lease may provide that as a part of the lease rental for the waterworks facilities the lessee agrees to:
(1) pay all property taxes and assessments levied against or on account of the leased facilities;
(2) maintain insurance on the leased facilities for the benefit of the lessor; and
(3) assume all responsibilities for the operation, maintenance, repair, alterations, and additions of the leased facilities.
(b) All of the expenses incurred under subsection (a) and the lease rental are payable solely from the revenues derived from water rates and charges to be collected by the lessee from property and users in the area served by the leased facilities.
(c) The lessee may establish, fix, bill, and collect rates and charges with respect to the property and users in the area served by the leased facilities that are sufficient:
(1) to pay the costs of operation, maintenance, repair, alterations, depreciation, and additions of the leased facilities; and
(2) to pay the lease rental as it becomes due.
Rates and charges too low to meet these requirements are unlawful. These rates and charges are subject to approval in accordance with IC 8-1.5-3-8.
As added by Acts 1982, P.L.74, SEC.1.
2023 Indiana Code › Title 8. Utilities and Transportation › Article 1.5. Municipal Utilities › Chapter 2. Transfer, Acquisition, and Improvement of Utilities by Municipalities › 8-1.5-2-29. Lease of Waterworks Facilities; Notice and Hearing

Sec. 29. (a) When the municipality and the lessor have agreed upon the terms and conditions of any waterworks lease proposed to be entered into under this chapter and before the final execution of the lease, a notice shall be given by publication in accordance with IC 5-3-1 to all persons interested, of a hearing to be held before the municipal legislative body, which hearing must be on a day not earlier than twenty (20) days after publication of the notice.
(b) The notice must:
(1) name the day, place, and hour of the hearing; and
(2) set forth a brief summary of the principal terms agreed upon, including:
(A) the name of the lessor;
(B) the character of the property to be leased;
(C) the lease rental to be paid; and
(D) the number of years the lease is to be in effect.
(c) The proposed lease must be available for inspection by the public during the twenty (20) day period and at the hearing.
(d) All persons interested are entitled to be heard, at the time fixed, upon the necessity for the execution of the lease and whether the rental to be paid to the proposed lessor is a fair and reasonable rental for the waterworks facilities. The hearing may be adjourned to a later date or dates.
As added by Acts 1982, P.L.74, SEC.1. Amended by P.L.35-1990, SEC.27.
2023 Indiana Code › Title 8. Utilities and Transportation › Article 1.5. Municipal Utilities › Chapter 2. Transfer, Acquisition, and Improvement of Utilities by Municipalities › 8-1.5-2-30. Lease of Waterworks Facilities; Execution; Limitation of Actions

Sec. 30. (a) After the hearing under section 29 of this chapter, the municipal legislative body may:
(1) authorize the execution of the waterworks lease as originally agreed upon; or
(2) make modifications as may be agreed upon with the proposed lessor;
but the lease rental as set out in the published notice may not be increased without a new notice and hearing.
(b) If the execution of the lease as originally agreed upon, or as modified by agreement, is authorized by the legislative body, a notice of the signing of the contract of lease shall be given by publication in accordance with IC 5-3-1.
(c) An action to:
(1) contest the validity of the lease; or
(2) enjoin the performance of any of the terms and conditions of the lease;
must be brought not later than thirty (30) days after publication of the notice of execution of the lease.
As added by Acts 1982, P.L.74, SEC.1.
2023 Indiana Code › Title 8. Utilities and Transportation › Article 1.5. Municipal Utilities › Chapter 2. Transfer, Acquisition, and Improvement of Utilities by Municipalities › 8-1.5-2-31. Leased Waterworks Facilities; Tax Exemptions

Sec. 31. All waterworks facilities leased by a lessor contracting with a municipality under this chapter are exempt from all state, county, and other taxes. However, the rental paid to a lessor under the terms of such a lease is subject to all applicable taxes.
As added by Acts 1982, P.L.74, SEC.1.
2023 Indiana Code › Title 8. Utilities and Transportation › Article 1.5. Municipal Utilities › Chapter 2. Transfer, Acquisition, and Improvement of Utilities by Municipalities › 8-1.5-2-32. Leased Waterworks Facilities; Applicable Statutes

Sec. 32. As to waterworks facilities leased and acquired under this chapter, it is not necessary to comply with any other statutes concerning the leasing and acquisition of waterworks facilities by municipalities except as specifically required by this chapter.
As added by Acts 1982, P.L.74, SEC.1.
2023 Indiana Code › Title 8. Utilities and Transportation › Article 1.5. Municipal Utilities › Chapter 2. Transfer, Acquisition, and Improvement of Utilities by Municipalities › 8-1.5-2-33. Action to Determine Public Convenience and Necessity

Sec. 33. (a) This section does not apply to the following:
(1) A municipality that, as of July 1, 2012, had established and operated a water utility.
(2) An action brought under:
(A) IC 8-1-2-92;
(B) IC 8-1-2-93; or
(C) this chapter;
before March 1, 2013.
(b) Not more than thirty (30) days after a municipality described in section 7(b)(1) or 7(b)(2) of this chapter adopts an ordinance under section 7 of this chapter, the utility may bring an action against the municipality in the circuit or superior court of the county in which the municipality is located to determine the question of public convenience and necessity.
(c) The court shall stay further action by the municipality under the ordinance adopted under section 7 of this chapter pending the court's determination.
(d) The court shall try the cause without delay and without a jury and review the evidence de novo.
As added by P.L.270-2013, SEC.7.
2023 Indiana Code › Title 8. Utilities and Transportation › Article 1.5. Municipal Utilities › Chapter 3. Operation of Municipally Owned Utilities Generally › 8-1.5-3-2. "Board" Defined

Sec. 2. As used in this chapter, "board" refers to the board operating a municipally owned utility as determined under section 3 of this chapter.
As added by Acts 1982, P.L.74, SEC.1.
2023 Indiana Code › Title 8. Utilities and Transportation › Article 1.5. Municipal Utilities › Chapter 3. Operation of Municipally Owned Utilities Generally › 8-1.5-3-3.3. Legalization of Certain Utility Service Boards

Sec. 3.3. For purposes of section 3 of this chapter, a utility service board that:
(1) was established before January 1, 1983, under IC 8-1-2-100 (before its repeal and formerly Acts 1913, c.76, s.109, as amended);
(2) has continued in existence without interruption since its creation; and
(3) was established without submitting the question of its creation to the voters of the municipality for approval in a referendum;
is legalized and its actions validated.
As added by P.L.220-2011, SEC.187.
2023 Indiana Code › Title 8. Utilities and Transportation › Article 1.5. Municipal Utilities › Chapter 3. Operation of Municipally Owned Utilities Generally › 8-1.5-3-4.5. Application of Section; Bid, Proposal, or Quotation Submitted by Trust

Sec. 4.5. (a) This section applies to the award of a contract under this chapter by acceptance of bids, proposals, or quotations.
(b) A bid, proposal, or quotation submitted by a trust (as defined in IC 30-4-1-1(a)) must identify each:
(1) beneficiary of the trust; and
(2) settlor empowered to revoke or modify the trust.
As added by P.L.336-1989(ss), SEC.19.
2023 Indiana Code › Title 8. Utilities and Transportation › Article 1.5. Municipal Utilities › Chapter 3. Operation of Municipally Owned Utilities Generally › 8-1.5-3-5. Superintendent; Powers and Duties; Compensation; Bond; Removal

Sec. 5. (a) The superintendent of each utility shall:
(1) appoint, supervise, and dismiss all employees of the utility;
(2) employ unskilled labor when needed, without competitive examination;
(3) investigate all claims against the utility;
(4) oversee the operation of the utility and any construction work, repairs, or alterations to the system; and
(5) advise the board in all matters that will bring about an efficient and economical operation and maintenance of the utility.
(b) The superintendent is entitled to the compensation for his services that is determined by resolution of the board.
(c) The superintendent shall give bond in a sum not less than double the estimated amount of money that may be in his hands at any time. The bond shall be conditioned upon the faithful discharge of his duties and the payment to the proper person of all money in his hands. The bond is subject to the approval of the executive of the municipality.
(d) The superintendent may be removed by the board for cause at any time after notice and a hearing.
As added by Acts 1982, P.L.74, SEC.1.
2023 Indiana Code › Title 8. Utilities and Transportation › Article 1.5. Municipal Utilities › Chapter 3. Operation of Municipally Owned Utilities Generally › 8-1.5-3-6. Load Building Appliances; Purchase; Sale and Advertisement

Sec. 6. (a) The board may purchase, sell, and advertise, for the purpose of sale, load building appliances.
(b) Load building appliances shall be designed to be used in:
(1) the consumption of the products; or
(2) the use of the services;
that the utility furnishes or is equipped to furnish to its customers.
As added by Acts 1982, P.L.74, SEC.1.
2023 Indiana Code › Title 8. Utilities and Transportation › Article 1.5. Municipal Utilities › Chapter 3. Operation of Municipally Owned Utilities Generally › 8-1.5-3-7. Retirement Account

Sec. 7. The board may set up a retirement account for the benefit of the employees and past employees of each utility. The board may provide for the method, manner, and amount of contributions by the utility out of its earnings, reserves, or earned surplus, and by employees if required by the plan, and may create an account for the utilities and allocate to the account contributions sufficient to establish the plan on a sound actuarial basis, including contributions for past services of employees. However, the plan may not require contributions from an employee to exceed six percent (6%) of his wage or salary.
As added by Acts 1982, P.L.74, SEC.1.
2023 Indiana Code › Title 8. Utilities and Transportation › Article 1.5. Municipal Utilities › Chapter 3. Operation of Municipally Owned Utilities Generally › 8-1.5-3-8.1. Hearings; Adoption of Rates and Charges; Notice; Contents

Sec. 8.1. (a) As used in this section, "utility" refers to a municipally owned:
(1) water utility;
(2) wastewater utility; or
(3) combined water and wastewater utility;
that is not under the jurisdiction of the commission for the approval of rates and charges.
(b) As used in this section, "works" refers to water or wastewater utility works.
(c) After the introduction of the ordinance establishing the rates and charges under section 8 of this chapter, but before the ordinance is finally adopted, the municipal legislative body shall hold a public hearing at which users of the works, owners of property served or to be served by the works, and other interested persons may be heard concerning the proposed rates and charges. Notice of the hearing, setting forth the proposed schedule of rates and charges, shall be:
(1) published in accordance with IC 5-3-1 (IC 5-3-1-1 through IC 5-3-1-9);
(2) mailed to owners of vacant or unimproved property if the ordinance includes a fee for water or wastewater service to vacant or unimproved property; and
(3) mailed to users of the works for service to property located outside the municipality's corporate boundaries.
The notice may be mailed in any form so long as the notice of hearing is conspicuous. The hearing may be adjourned from time to time. Notice mailed under subdivision (3) must include a statement that, following adoption of the ordinance, the users described in subdivision (3) may be entitled to petition the commission under section 8.3 of this chapter to review and adjust the rates and charges imposed on the users if a petition under section 8.2 of this chapter or under IC 36-9-23-26.1 with respect to the same rate ordinance has not been filed.
(d) After the hearing, the municipal legislative body shall adopt the ordinance establishing the rates and charges, either as originally introduced or as modified. A copy of the schedule of rates and charges adopted shall be kept on file and available for public inspection in the offices of the board and the municipal clerk. An ordinance adopted after March 31, 2012, that imposes different rates and charges for service to property located outside the corporate boundaries of the municipality as compared to property located within the corporate boundaries of the municipality must state in plain language the percentage difference between the rates and charges.
(e) The rates and charges established for any class of users or property shall be extended to cover any additional property that is subsequently served and falls within the same class, without any hearing or notice.
(f) The municipal legislative body may change or readjust the rates and charges in the same manner as they were established.
(g) Rates and charges collected under this chapter are considered revenues of the utility.
As added by P.L.77-1991, SEC.1. Amended by P.L.139-2012, SEC.1.
2023 Indiana Code › Title 8. Utilities and Transportation › Article 1.5. Municipal Utilities › Chapter 3. Operation of Municipally Owned Utilities Generally › 8-1.5-3-9. Removal of Utility From Jurisdiction of Commission for Approval of Rates and Charges; Procedure

Sec. 9. (a) This subsection applies to a municipally owned utility that before June 1, 1987, was taken out of the jurisdiction of the commission for the approval of rates and charges. A utility to which this subsection applies is removed from the jurisdiction of the commission for approval of the issuance of stocks, bonds, notes, or other evidence of indebtedness.
(b) Except as provided in subsection (a), a municipal legislative body that wants to be taken out of the jurisdiction of the commission for approval of rates and charges and of the issuance of stocks, bonds, notes, or other evidence of indebtedness may submit the following public question to the registered voters of the municipality at the next election in the form prescribed by IC 3-10-9-4:
"Shall the municipally owned utility be taken out of the jurisdiction of the utility regulatory commission for approval of rates and charges and of the issuance of stocks, bonds, notes, or other evidence of indebtedness?".
(c) A municipal legislative body shall certify the public question to the county election board of the county that contains the greatest percentage of population of the municipality under IC 3-10-9-3 and submit the question under subsection (b) if it receives a petition that:
(1) is signed by at least the number of the registered voters of the municipality required under IC 3-8-6-3 to place a candidate on the ballot; and
(2) requests that the municipally owned utility be removed from the jurisdiction of the commission for approval of rates and charges and of the issuance of stocks, bonds, notes, or other evidence of indebtedness.
(d) If a majority of those voting favor taking the municipally owned utility out of the jurisdiction of the commission, the utility:
(1) is removed from the jurisdiction of the commission for approval of rates and charges and of the issuance of stocks, bonds, notes, or other evidence of indebtedness; and
(2) shall mail written notice of the withdrawal from commission jurisdiction to the commission within thirty (30) days after the utility's withdrawal.
As added by Acts 1982, P.L.74, SEC.1. Amended by P.L.124-1987, SEC.1; P.L.23-1988, SEC.62; P.L.10-1988, SEC.217; P.L.12-1995, SEC.101.
2023 Indiana Code › Title 8. Utilities and Transportation › Article 1.5. Municipal Utilities › Chapter 3. Operation of Municipally Owned Utilities Generally › 8-1.5-3-9.5. Return of Utility to Commission Jurisdiction Following Removal

Sec. 9.5. (a) This section applies to municipally owned utilities that are withdrawn from commission jurisdiction under section 9 of this chapter, including a municipally owned utility described in section 9(a) of this chapter.
(b) A municipal legislative body that wants to return a municipally owned utility to the jurisdiction of the commission for approval of rates and charges and of the issuance of stocks, bonds, notes, or other evidence of indebtedness may submit the following public question to the registered voters of the municipality at the next election in the form prescribed by IC 3-10-9-4:
"Shall the municipally owned utility be returned to the jurisdiction of the utility regulatory commission for approval of rates and charges and of the issuance of stocks, bonds, notes, or other evidence of indebtedness?".
(c) A municipal legislative body shall certify the public question to the county election board of the county that contains the greatest percentage of population of the municipality under IC 3-10-9-3. The county election board shall submit the question under subsection (b) if it receives a petition that:
(1) is signed by at least the number of the registered voters of the municipality required under IC 3-8-6-3 to place a candidate on the ballot; and
(2) requests that the municipally owned utility be returned to the jurisdiction of the commission for approval of rates and charges and of the issuance of stocks, bonds, notes, or other evidence of indebtedness.
(d) If a majority of those voting favor returning the municipally owned utility to the jurisdiction of the commission, the utility is returned to the jurisdiction of the commission for approval of rates and charges and of the issuance of stocks, bonds, notes, or other evidence of indebtedness. If a majority of those voting disapprove of returning the municipally owned utility to the jurisdiction of the commission, an election may not be conducted on the public question of returning to the jurisdiction of the commission for four (4) years from the date of the last election on that public question.
(e) The public question of returning to the jurisdiction of the commission may not be submitted to the registered voters of the municipality at an election conducted within four (4) years after the date the municipally owned utility was last withdrawn from commission jurisdiction.
(f) If a municipally owned utility is returned to the jurisdiction of the commission under this section, the municipal legislative body shall mail written notice to the commission.
As added by P.L.82-1988, SEC.7. Amended by P.L.12-1995, SEC.103.
2023 Indiana Code › Title 8. Utilities and Transportation › Article 1.5. Municipal Utilities › Chapter 3. Operation of Municipally Owned Utilities Generally › 8-1.5-3-10. Rates and Charges; Electric Service Outside Corporate Boundaries

Sec. 10. Whenever a municipality operates an electric utility that provides service outside the corporate boundaries of the municipality, the charges for service outside the corporate boundaries may not differ from the charges for service inside the corporate boundaries unless the utility clearly demonstrates significant cost factors that make different charges nondiscriminatory, reasonable, and just.
As added by Acts 1982, P.L.74, SEC.1.
2023 Indiana Code › Title 8. Utilities and Transportation › Article 1.5. Municipal Utilities › Chapter 3. Operation of Municipally Owned Utilities Generally › 8-1.5-3-11. Funds; Management

Sec. 11. (a) The money belonging to each municipally owned utility shall be kept by the municipal fiscal officer as separate funds as required by any bond ordinance or accounting procedures established by the commission or the state board of accounts. The municipal legislative body, with the approval of the board, may transfer surplus earnings of the utility to the general fund. The money may not, however, be transferred unless the terms and conditions of any bond ordinance, resolution, indenture, contract under IC 8-1-2.2, or similar instrument binding upon the utility are complied with.
(b) A cash reserve fund shall be created by ordinance and carried on the records of the utility or utilities by providing for monthly contributions or transfers to the cash reserve fund of surplus earnings of the utility or utilities.
(c) "Surplus earnings" are those cash earnings remaining after provision has been made to take care of current obligations, including:
(1) operating expense;
(2) depreciation or replacement fund;
(3) bond and interest sinking fund;
(4) retirement fund; or
(5) any other priority fund requirements fixed by law.
(d) After creation of the cash reserve fund, the legislative body may include in the municipal general fund budget, as revenue in lieu of taxes, an amount equal to the actual balance in the cash reserve fund as of June 30 of the current year. However, the available cash reserve fund balance may be transferred to the municipal general fund only during the calendar year for which the budget was adopted, and transfers may not be made from any utility funds to the general fund except from the cash reserve fund.
(e) If at any time after the final approval of the budget an emergency should arise for further appropriations from the general fund, the legislative body may, by ordinance, transfer additional money from the cash reserve fund to the general fund to provide for the additional appropriations, the transfer to be limited to the accretions to the cash reserve fund since the preceding June 30.
(f) A cash reserve fund, if authorized by ordinance, may be used to make loans to another utility owned by the same municipality, for periods not to exceed five (5) years, at any interest rate. The repayment of the loan and interest shall be returned to the cash reserve fund.
As added by Acts 1982, P.L.74, SEC.1.