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 municipalcorporation, all the rights, powers, and duties conferred upon thedistrict 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, andduties conferred upon the district.
(3) Adopt and alter a seal and use the seal by causing the seal tobe impressed, affixed, reproduced, or otherwise used. However,the failure to affix a seal does not affect the validity of aninstrument.
(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 thedistrict's service and facilities.
(ii) The exercise of all of the district's rights of ownership.
(5) Construct, acquire, lease, operate, or manage works andobtain 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 worksto the debt service on outstanding bonds of an entity in wholeor in part in the district and including a right on the part of thedistrict to indemnify and protect a contracting party from lossor liability by reason of the failure of the district to perform anagreement assumed by the district or to act or discharge anobligation.
(7) Fix, alter, charge, and collect reasonable rates and othercharges in the area served by the district's facilities to everyperson 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 thefollowing:
(A) The payment of the expenses of the district.
(B) The construction, acquisition, improvement, extension,repair, maintenance, and operation of the district's facilitiesand properties.
(C) The payment of principal or interest on the district'sobligations.
(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, requireconnection to the district's sewer system of property producingsewage or similar waste, and require the discontinuance of useof 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 tothe property owner at the address of the property at leastninety (90) days before a date for connection to be stated inthe notice; and
(C) if the property is located outside the district's territory:
(i) the district has obtained and provided to the propertyowner (along with the notice required by clause (B)) aletter of recommendation from the local health departmentthat there is a possible threat to the public's health; and
(ii) if the property is also located within the extraterritorialjurisdiction of a municipal sewage works under IC 36-9-23or a public sanitation department under IC 36-9-25, themunicipal works board or department of public sanitationhas acknowledged in writing that the property is within themunicipal sewage works or department of publicsanitation's extraterritorial jurisdiction, but the municipalworks board or department of public sanitation is unableto provide sewer service.
However, a district may not require the owner of a propertydescribed in this subdivision to connect to the district's sewersystem if the property is already connected to a sewer systemthat has received an NPDES permit and has been determined tobe functioning satisfactorily.
(9) Provide by ordinance for reasonable penalties for failure toconnect and also apply to the circuit or superior court of thecounty in which the property is located for an order to forceconnection, with the cost of the action, including reasonableattorney's fees of the district, to be assessed by the court againstthe property owner in the action.
(10) Refuse the services of the district's facilities if the rates orother 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 toaccomplish the purposes of the district's establishment within oroutside the district and enter into contracts for the operation ofworks owned, leased, or held by another entity, whether publicor private.
(13) Hold, encumber, control, acquire by donation, purchase, orcondemnation, construct, own, lease as lessee or lessor, use, andsell interests in real and personal property or franchises withinor outside the district for:
(A) the location or protection of works;
(B) the relocation of buildings, structures, and improvementssituated on land required by the district or for any othernecessary purpose; or
(C) obtaining or storing material to be used in constructingand maintaining the works.
(14) Upon consent of two-thirds (2/3) of the members of theboard, merge or combine with another district into a singledistrict on terms so that the surviving district:
(A) is possessed of all rights, franchises, and authority of theconstituent districts; and
(B) is subject to all the liabilities, obligations, and duties ofeach of the constituent districts, with all rights of creditorsof the constituent districts being preserved unimpaired.
(15) Provide by agreement with another eligible entity for thejoint construction of works the district is authorized to constructif the construction is for the district's own benefit and that of theother entity. For this purpose the cooperating entities mayjointly appropriate land either within or outside their respectiveborders 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, thestate, or the United States to provide services to the contractingparty 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'sbyproducts 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 withinor 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 ofpurchase or condemnation; the district may acquire land and construct, acquire, or installbuildings, structures, or improvements similar in purpose to beexchanged for the buildings, structures, or improvements undercontracts 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 arenecessary for the accomplishment of the district's purpose andfix their compensation.
(21) Procure insurance against loss to the district by reason ofdamages to the district's properties, works, or improvementsresulting from fire, theft, accident, or other casualty or becauseof the liability of the district for damages to persons or propertyoccurring in the operations of the district's works andimprovements or the conduct of the district's activities.
(22) Exercise the powers of the district without obtaining theconsent of other eligible entities. However, the district shall:
(A) restore or repair all public or private property damagedin carrying out the powers of the district and place theproperty in the property's original condition as nearly aspracticable; or
(B) pay adequate compensation for the property.
(23) Dispose of, by public or private sale or lease, real orpersonal property determined by the board to be no longernecessary 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 absorptionsystem" 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 toa district's sewer system and to discontinue use of a septic tank soilabsorption system if the following conditions are met:
(1) The property owner's septic tank soil absorption system wasinstalled not more than five (5) years before the district's sewersystem's anticipated connection date.
(2) The property owner's septic tank soil absorption system wasnew at the time of installation and was approved in writing bythe local health department.
(3) The property owner, at the property owner's own expense,obtains and provides to the district a certification from the localhealth department or the department's designee that the septictank soil absorption system is functioning satisfactorily. If thelocal health department or the department's designee denies theissuance of a certificate to the property owner, the propertyowner may appeal the denial to the board of the local healthdepartment. 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 theexemption 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 forthe exemption under this section, the district shall, until the propertyowner's eligibility for an exemption under this section is determined,suspend the requirement that the property owner discontinue use ofa septic tank soil absorption system and connect to the district'ssewer system.
(d) A property owner who qualifies for the exemption providedunder this section may not be required to connect to the district'ssewer system for a period of three (3) years beginning on thedistrict's sewer system's anticipated connection date. If ownership ofthe property passes from the owner who qualified for the exemptionto another person during the exemption period, the exemption doesnot apply to the subsequent owner of the property.
(e) The district may require a property owner who qualifies for theexemption under this section to discontinue use of a septic tank soilabsorption system and connect to the district's sewer system if thedistrict credits the unamortized portion of the original cost of theproperty owner's septic tank soil absorption system against the debtservice portion of the customer's monthly bill. The amount that thedistrict must credit under this subsection is determined in STEPTWO of the following formula:
STEP ONE: Multiply the original cost of the property owner'sseptic tank soil absorption system by a fraction, the numeratorof which is ninety-six (96) months minus the age in months ofthe property owner's septic system, and the denominator ofwhich is ninety-six (96) months.
STEP TWO: Determine the lesser of four thousand eighthundred dollars ($4,800) or the result of STEP ONE.
The district shall apportion the total credit amount as determined inSTEP TWO against the debt service portion of the property owner'smonthly bill over a period to be determined by the district, but not toexceed twenty (20) years, or two hundred forty (240) months.
(f) A district that has filed plans with the department to create orexpand a sewage district shall, within ten (10) days after filing theplans, provide written notice to affected property owners:
(1) that the property owner may be required to discontinue theuse of a septic tank soil absorption system;
(2) that the property owner may qualify for an exemption fromthe requirement to discontinue the use of the septic tank soilabsorption system; and
(3) of the procedures to claim an exemption.
(g) To qualify for an exemption under this section, a propertyowner must:
(1) within sixty (60) days after the date of the written notice
given to the property owner under subsection (f), notify thedistrict in writing that the property owner qualifies for theexemption under this section; and
(2) within sixty (60) days after the district receives the writtennotice provided under subdivision (1), provide the district withthe 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 thefollowing:
(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 thedistrict and the exercise of the power granted.
(b) The board must adopt an ordinance by a majority vote to takeaction of a legislative nature. Proposed ordinances may be read bytitle only unless a trustee requests a reading in full.
(c) A majority of the board or the officers of the board oremployees of the district that are authorized by the board may takeaction 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 thefollowing purposes:
(1) To accomplish the purpose of a district.
(2) To protect the works, improvements, and properties, bothreal 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 ofthe 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, andproperties owned or controlled by the district, prescribe themanner of use by any person, and preserve order in and adjacentto the works.
(2) Prescribe the manner:
(A) in which ditches, sewers, pipelines, or other worksshould 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 themanner of distribution and prevent the pollution or unnecessarywaste of the water supply.
(4) Prohibit or regulate the discharge into the sewers of thedistrict of liquid or solid waste detrimental to the works andimprovements.
(c) Rules must be:
(1) consistent with:
(A) statutes; and
(B) the rules of the solid waste management board or thewater pollution control board; and
(2) maintained and open to inspection in the office of thedistrict.
(d) The board may enforce by injunction or other legal remedyrules adopted under this section. The board may remove a harmful orimproper construction or obstruction or may close an opening orconnection made improperly or in violation of the rules. A personthat willfully fails to comply with the rules is liable for damagecaused by the failure and for the cost of restoring or replacingconstruction 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 theboard 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 forthe use of the district public or private land, easements, rights,rights-of-way, franchises, or other property within or outside thedistrict required by the district for the accomplishment of thedistrict's purposes according to the statutory procedure for theappropriation of land or other property taken by an eligible entity.
(b) The power of condemnation by a district under this article maynot be exercised against a sewage disposal company holding acertificate of territorial authority under IC 8-1-2-89 until theexpiration of twelve (12) years after the granting of the certificate ofterritorial authority.
As added by P.L.1-1996, SEC.16.
IC 13-26-5-7
Contracts for water supply, sewage treatment, or solid wastedisposition; issuance of bonds Sec. 7. (a) Exclusive of building a sewage treatment plant, solidwaste disposal or recovery system, or installing a supply of water, adistrict that desires to own, acquire, construct, equip, improve,enlarge, extend, operate, and maintain a works may proceed underthis article if the district first contracts for:
(1) a supply of water;
(2) the required treatment of the sewage emanating from thedistrict's works; or
(3) the disposition of solid waste generated within the district.
(b) A governmental or private body owning and operatingfacilities for water supply, sewage, or solid waste disposal, recovery,or treatment may contract to supply water or treat all or part of thesewage 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 itsrepeal) 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 thecontract 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 ifthe 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 allowancepermitted if board adopts ordinance; support for payment; boardreview and allowance of claim
Sec. 9. (a) A board may adopt an ordinance allowing money to bedisbursed for lawful district purposes under this section.
(b) Notwithstanding IC 5-11-10, with the prior written approvalof the board, the fiscal officer of the district may make claimpayments in advance of board allowance for the following kinds ofexpenses if the board has adopted an ordinance under subsection (a):
(1) Property or services purchased or leased from the UnitedStates 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 notprohibited 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 emergencycircumstances.
(13) Expenses described in an ordinance.
(c) Each payment of expenses under this section must besupported by a fully itemized invoice or bill and certification by thefiscal officer of the district.
(d) The board shall review and allow the claim at its next regularor special meeting following the preapproved payment of theexpense.
As added by P.L.78-2009, SEC.20.