CHAPTER 5. POWERS AND DUTIES OF REGIONAL DISTRICTS
IC 13-26-5
Chapter 5. Powers and Duties of Regional Districts
IC 13-26-5-1
Prerequisites to exercising rights, powers, and duties
Sec. 1. Upon:
(1) the declaration of the commissioner organizing a district;
(2) the qualification of the board; and
(3) the election of a president, a treasurer, and a secretary;
the district may exercise in the district's own name, as a municipal
corporation, all the rights, powers, and duties conferred upon the
district by this article.
As added by P.L.1-1996, SEC.16.
IC 13-26-5-2
Powers
Sec. 2. A district may do the following:
(1) Sue or be sued.
(2) Make contracts in the exercise of the rights, powers, and
duties conferred upon the district.
(3) Adopt and alter a seal and use the seal by causing the seal to
be impressed, affixed, reproduced, or otherwise used. However,
the failure to affix a seal does not affect the validity of an
instrument.
(4) Adopt, amend, and repeal the following:
(A) Bylaws for the administration of the district's affairs.
(B) Rules and regulations for the following:
(i) The control of the administration and operation of the
district's service and facilities.
(ii) The exercise of all of the district's rights of ownership.
(5) Construct, acquire, lease, operate, or manage works and
obtain rights, easements, licenses, money, contracts, accounts,
liens, books, records, maps, or other property, whether real,
personal, or mixed, of a person or an eligible entity.
(6) Assume in whole or in part any liability or obligation of:
(A) a person;
(B) a nonprofit water, sewage, or solid waste project system;
or
(C) an eligible entity;
including a pledge of part or all of the net revenues of a works
to the debt service on outstanding bonds of an entity in whole
or in part in the district and including a right on the part of the
district to indemnify and protect a contracting party from loss
or liability by reason of the failure of the district to perform an
agreement assumed by the district or to act or discharge an
obligation.
(7) Fix, alter, charge, and collect reasonable rates and other
charges in the area served by the district's facilities to every
person whose premises are, whether directly or indirectly,
supplied with water or provided with sewage or solid waste
services by the facilities for the purpose of providing for the
following:
(A) The payment of the expenses of the district.
(B) The construction, acquisition, improvement, extension,
repair, maintenance, and operation of the district's facilities
and properties.
(C) The payment of principal or interest on the district's
obligations.
(D) To fulfill the terms of agreements made with:
(i) the purchasers or holders of any obligations; or
(ii) a person or an eligible entity.
(8) Except as provided in section 2.5 of this chapter, require
connection to the district's sewer system of property producing
sewage or similar waste, and require the discontinuance of use
of privies, cesspools, septic tanks, and similar structures if:
(A) there is an available sanitary sewer within three hundred
(300) feet of the property line;
(B) the district has given written notice by certified mail to
the property owner at the address of the property at least
ninety (90) days before a date for connection to be stated in
the notice; and
(C) if the property is located outside the district's territory:
(i) the district has obtained and provided to the property
owner (along with the notice required by clause (B)) a
letter of recommendation from the local health department
that there is a possible threat to the public's health; and
(ii) if the property is also located within the extraterritorial
jurisdiction of a municipal sewage works under IC 36-9-23
or a public sanitation department under IC 36-9-25, the
municipal works board or department of public sanitation
has acknowledged in writing that the property is within the
municipal sewage works or department of public
sanitation's extraterritorial jurisdiction, but the municipal
works board or department of public sanitation is unable
to provide sewer service.
However, a district may not require the owner of a property
described in this subdivision to connect to the district's sewer
system if the property is already connected to a sewer system
that has received an NPDES permit and has been determined to
be functioning satisfactorily.
(9) Provide by ordinance for reasonable penalties for failure to
connect and also apply to the circuit or superior court of the
county in which the property is located for an order to force
connection, with the cost of the action, including reasonable
attorney's fees of the district, to be assessed by the court against
the property owner in the action.
(10) Refuse the services of the district's facilities if the rates or
other charges are not paid by the user.
(11) Control and supervise all property, works, easements,
licenses, money, contracts, accounts, liens, books, records,
maps, or other property rights and interests conveyed, delivered,
transferred, or assigned to the district.
(12) Construct, acquire by purchase or otherwise, operate, lease,
preserve, and maintain works considered necessary to
accomplish the purposes of the district's establishment within or
outside the district and enter into contracts for the operation of
works owned, leased, or held by another entity, whether public
or private.
(13) Hold, encumber, control, acquire by donation, purchase, or
condemnation, construct, own, lease as lessee or lessor, use, and
sell interests in real and personal property or franchises within
or outside the district for:
(A) the location or protection of works;
(B) the relocation of buildings, structures, and improvements
situated on land required by the district or for any other
necessary purpose; or
(C) obtaining or storing material to be used in constructing
and maintaining the works.
(14) Upon consent of two-thirds (2/3) of the members of the
board, merge or combine with another district into a single
district on terms so that the surviving district:
(A) is possessed of all rights, franchises, and authority of the
constituent districts; and
(B) is subject to all the liabilities, obligations, and duties of
each of the constituent districts, with all rights of creditors
of the constituent districts being preserved unimpaired.
(15) Provide by agreement with another eligible entity for the
joint construction of works the district is authorized to construct
if the construction is for the district's own benefit and that of the
other entity. For this purpose the cooperating entities may
jointly appropriate land either within or outside their respective
borders if all subsequent proceedings, actions, powers,
liabilities, rights, and duties are those set forth by statute.
(16) Enter into contracts with a person, an eligible entity, the
state, or the United States to provide services to the contracting
party for any of the following:
(A) The distribution or purification of water.
(B) The collection or treatment of sanitary sewage.
(C) The collection, disposal, or recovery of solid waste.
(17) Make provision for, contract for, or sell the district's
byproducts or waste.
(18) Exercise the power of eminent domain.
(19) Remove or change the location of a fence, building,
railroad, canal, or other structure or improvement located within
or outside the district. If:
(A) it is not feasible or economical to move the building,
structure, or improvement situated in or upon land acquired;
and
(B) the cost is determined by the board to be less than that of
purchase or condemnation;
the district may acquire land and construct, acquire, or install
buildings, structures, or improvements similar in purpose to be
exchanged for the buildings, structures, or improvements under
contracts entered into between the owner and the district.
(20) Employ consulting engineers, superintendents, managers,
and other engineering, construction, and accounting experts,
attorneys, bond counsel, employees, and agents that are
necessary for the accomplishment of the district's purpose and
fix their compensation.
(21) Procure insurance against loss to the district by reason of
damages to the district's properties, works, or improvements
resulting from fire, theft, accident, or other casualty or because
of the liability of the district for damages to persons or property
occurring in the operations of the district's works and
improvements or the conduct of the district's activities.
(22) Exercise the powers of the district without obtaining the
consent of other eligible entities. However, the district shall:
(A) restore or repair all public or private property damaged
in carrying out the powers of the district and place the
property in the property's original condition as nearly as
practicable; or
(B) pay adequate compensation for the property.
(23) Dispose of, by public or private sale or lease, real or
personal property determined by the board to be no longer
necessary or needed for the operation or purposes of the district.
As added by P.L.1-1996, SEC.16. Amended by P.L.193-2001, SEC.2;
P.L.221-2007, SEC.18; P.L.1-2009, SEC.110.
IC 13-26-5-2.5
Septic tank soil absorption system exemption
Sec. 2.5. (a) As used in this section, "septic tank soil absorption
system" has the meaning set forth in IC 13-11-2-199.5.
(b) Subject to subsection (d) and except as provided in subsection
(e), a property owner is exempt from the requirement to connect to
a district's sewer system and to discontinue use of a septic tank soil
absorption system if the following conditions are met:
(1) The property owner's septic tank soil absorption system was
installed not more than five (5) years before the district's sewer
system's anticipated connection date.
(2) The property owner's septic tank soil absorption system was
new at the time of installation and was approved in writing by
the local health department.
(3) The property owner, at the property owner's own expense,
obtains and provides to the district a certification from the local
health department or the department's designee that the septic
tank soil absorption system is functioning satisfactorily. If the
local health department or the department's designee denies the
issuance of a certificate to the property owner, the property
owner may appeal the denial to the board of the local health
department. The decision of the board is final and binding.
(4) The property owner provides the district with:
(A) the written notification of potential qualification for the
exemption described in subsection (g); and
(B) the certification described in subdivision (3);
within the time limits set forth in subsection (g).
(c) If a property owner, within the time allowed under subsection
(g), notifies a district in writing that the property owner qualifies for
the exemption under this section, the district shall, until the property
owner's eligibility for an exemption under this section is determined,
suspend the requirement that the property owner discontinue use of
a septic tank soil absorption system and connect to the district's
sewer system.
(d) A property owner who qualifies for the exemption provided
under this section may not be required to connect to the district's
sewer system for a period of three (3) years beginning on the
district's sewer system's anticipated connection date. If ownership of
the property passes from the owner who qualified for the exemption
to another person during the exemption period, the exemption does
not apply to the subsequent owner of the property.
(e) The district may require a property owner who qualifies for the
exemption under this section to discontinue use of a septic tank soil
absorption system and connect to the district's sewer system if the
district credits the unamortized portion of the original cost of the
property owner's septic tank soil absorption system against the debt
service portion of the customer's monthly bill. The amount that the
district must credit under this subsection is determined in STEP
TWO of the following formula:
STEP ONE: Multiply the original cost of the property owner's
septic tank soil absorption system by a fraction, the numerator
of which is ninety-six (96) months minus the age in months of
the property owner's septic system, and the denominator of
which is ninety-six (96) months.
STEP TWO: Determine the lesser of four thousand eight
hundred dollars ($4,800) or the result of STEP ONE.
The district shall apportion the total credit amount as determined in
STEP TWO against the debt service portion of the property owner's
monthly bill over a period to be determined by the district, but not to
exceed twenty (20) years, or two hundred forty (240) months.
(f) A district that has filed plans with the department to create or
expand a sewage district shall, within ten (10) days after filing the
plans, provide written notice to affected property owners:
(1) that the property owner may be required to discontinue the
use of a septic tank soil absorption system;
(2) that the property owner may qualify for an exemption from
the requirement to discontinue the use of the septic tank soil
absorption system; and
(3) of the procedures to claim an exemption.
(g) To qualify for an exemption under this section, a property
owner must:
(1) within sixty (60) days after the date of the written notice
given to the property owner under subsection (f), notify the
district in writing that the property owner qualifies for the
exemption under this section; and
(2) within sixty (60) days after the district receives the written
notice provided under subdivision (1), provide the district with
the certification required under subsection (b)(3).
As added by P.L.193-2001, SEC.3. Amended by P.L.1-2002, SEC.67.
IC 13-26-5-3
Rules and resolutions of board; legislative and administrative acts
Sec. 3. (a) The board may by rules and resolutions provide the
following:
(1) The procedure for the board's actions.
(2) The manner of selection of the board's president, treasurer,
and secretary and other officers or employees of the district,
including the titles, terms of office, compensation, duties,
number, and qualifications.
(3) Any other lawful subject necessary to the operation of the
district and the exercise of the power granted.
(b) The board must adopt an ordinance by a majority vote to take
action of a legislative nature. Proposed ordinances may be read by
title only unless a trustee requests a reading in full.
(c) A majority of the board or the officers of the board or
employees of the district that are authorized by the board may take
action of an administrative or executive nature.
As added by P.L.1-1996, SEC.16.
IC 13-26-5-4
Rules; establishment and enforcement
Sec. 4. (a) The board may adopt and enforce rules for the
following purposes:
(1) To accomplish the purpose of a district.
(2) To protect the works, improvements, and properties, both
real and personal, that the district owns.
(3) To secure the best results from the construction, operation,
and maintenance of works, improvements, and properties.
(4) To prevent damage by the misuse of the works,
improvements, or properties by:
(A) the pollution or misuse of the waters in the district or of
the sewerage system; or
(B) the improper disposal of solid waste.
(b) The board may adopt and enforce rules under subsection (a)
that are necessary and advisable to do the following:
(1) Protect and preserve the works, improvements, and
properties owned or controlled by the district, prescribe the
manner of use by any person, and preserve order in and adjacent
to the works.
(2) Prescribe the manner:
(A) in which ditches, sewers, pipelines, or other works
should be adjusted to or connected with the works of the
district; and
(B) of waste disposal in the district.
(3) Prescribe the permissible uses of the water supply and the
manner of distribution and prevent the pollution or unnecessary
waste of the water supply.
(4) Prohibit or regulate the discharge into the sewers of the
district of liquid or solid waste detrimental to the works and
improvements.
(c) Rules must be:
(1) consistent with:
(A) statutes; and
(B) the rules of the solid waste management board or the
water pollution control board; and
(2) maintained and open to inspection in the office of the
district.
(d) The board may enforce by injunction or other legal remedy
rules adopted under this section. The board may remove a harmful or
improper construction or obstruction or may close an opening or
connection made improperly or in violation of the rules. A person
that willfully fails to comply with the rules is liable for damage
caused by the failure and for the cost of restoring or replacing
construction damaged.
As added by P.L.1-1996, SEC.16.
IC 13-26-5-5
Contracts for purchases of supplies, materials, or labor
Sec. 5. The board or an officer or employee designated by the
board may contract for the following:
(1) The purchase of supplies in accordance with IC 5-22.
(2) Labor for a work in accordance with IC 36-1-12.
As added by P.L.1-1996, SEC.16. Amended by P.L.49-1997, SEC.48.
IC 13-26-5-6
Eminent domain
Sec. 6. (a) Subject to subsection (b), the board may condemn for
the use of the district public or private land, easements, rights,
rights-of-way, franchises, or other property within or outside the
district required by the district for the accomplishment of the
district's purposes according to the statutory procedure for the
appropriation of land or other property taken by an eligible entity.
(b) The power of condemnation by a district under this article may
not be exercised against a sewage disposal company holding a
certificate of territorial authority under IC 8-1-2-89 until the
expiration of twelve (12) years after the granting of the certificate of
territorial authority.
As added by P.L.1-1996, SEC.16.
IC 13-26-5-7
Contracts for water supply, sewage treatment, or solid waste
disposition; issuance of bonds
Sec. 7. (a) Exclusive of building a sewage treatment plant, solid
waste disposal or recovery system, or installing a supply of water, a
district that desires to own, acquire, construct, equip, improve,
enlarge, extend, operate, and maintain a works may proceed under
this article if the district first contracts for:
(1) a supply of water;
(2) the required treatment of the sewage emanating from the
district's works; or
(3) the disposition of solid waste generated within the district.
(b) A governmental or private body owning and operating
facilities for water supply, sewage, or solid waste disposal, recovery,
or treatment may contract to supply water or treat all or part of the
sewage and solid waste of a district. The contracts:
(1) must be authorized by ordinance; and
(2) are subject to approval by the department.
(c) All bonds issued under this article or IC 13-3-2 (before its
repeal) by a district contracting for:
(1) water supply;
(2) sewage or solid waste disposal; or
(3) recovery treatment service;
under this section are payable before the expiration date of the
contract and districts may contract for the term of the bonds,
including a term or terms beyond the last maturity of the bonds.
As added by P.L.1-1996, SEC.16.
IC 13-26-5-8
Limitations on contracts
Sec. 8. A district may make contracts or incur obligations only if
the contracts or obligations are payable solely from:
(1) the money provided under this article; or
(2) federal, state, or other grants or contributions.
As added by P.L.1-1996, SEC.16.
IC 13-26-5-9
Payments by district fiscal officer in advance of board allowance
permitted if board adopts ordinance; support for payment; board
review and allowance of claim
Sec. 9. (a) A board may adopt an ordinance allowing money to be
disbursed for lawful district purposes under this section.
(b) Notwithstanding IC 5-11-10, with the prior written approval
of the board, the fiscal officer of the district may make claim
payments in advance of board allowance for the following kinds of
expenses if the board has adopted an ordinance under subsection (a):
(1) Property or services purchased or leased from the United
States government, its agencies, or its political subdivisions.
(2) License or permit fees.
(3) Insurance premiums.
(4) Utility payments or utility connection charges.
(5) General grant programs for which advance funding is not
prohibited and the contracting party posts sufficient security to
cover the amount advanced.
(6) Grants of state funds authorized by statute.
(7) Maintenance or service agreements.
(8) Leases or rental agreements.
(9) Bond or coupon payments.
(10) Payroll.
(11) State or federal taxes.
(12) Expenses that must be paid because of emergency
circumstances.
(13) Expenses described in an ordinance.
(c) Each payment of expenses under this section must be
supported by a fully itemized invoice or bill and certification by the
fiscal officer of the district.
(d) The board shall review and allow the claim at its next regular
or special meeting following the preapproved payment of the
expense.
As added by P.L.78-2009, SEC.20.