Section 8-1-2-101.6 - "Capacity related fee"; "contributions in aid of construction"; "local unit"; "tap fee"; "utility"; "utility infrastructure"; capacity related fee or tap fee established after June 30, 2022; prohibition against inclusion of contributions in aid of construction; property owner's right to request meeting with local unit or utility; petition to commission; right to appeal(a) As used in this section, "capacity related fee" means a fee to recover the cost of capacity as new customers connect to a water or wastewater system. The term includes the following: (1) A system development charge.(3) An interceptor fee. The term does not include any fee or charge imposed in connection with a water main extension or a wastewater main extension described in section 101.5 of this chapter.
(b) As used in this section, "contributions in aid of construction", with respect to utility infrastructure, means any amount of money, services, or property that: (1) is received by a local unit or a utility from any person, developer, or governmental agency for the installation or extension of the utility infrastructure;(2) is provided at no cost to the local unit or utility; and(3) includes: (A) fees or charges paid by any person or developer;(B) contributions, grants, or forgivable loans from governmental agencies; and(C) any other money or property provided at no cost to the local unit or utility.(c) As used in this section, "local unit" means:(2) a municipality; that provides water service or wastewater service, or both, to the public and that is not under the jurisdiction of the commission for the approval of rates and charges with respect to the water service or wastewater service that is provided.
(d) As used in this section, "tap fee" means a fee or charge imposed by a local unit or a utility for an actual physical connection to the local unit's or the utility's utility infrastructure. The term does not include any fee or charge imposed in connection with a water main extension or a wastewater main extension described in section 101.5 of this chapter.(e) As used in this section, "utility" means a:(1) public utility (as defined in section 1(a) of this chapter);(2) municipally owned utility (as defined in section 1(h) of this chapter), including a sewer utility operated under IC 36-9-23 or IC 36-9-25;(3) not-for-profit utility (as defined in section 125(a) of this chapter);(4) cooperatively owned corporation;(5) conservancy district established under IC 14-33; or(6) regional district established under IC 13-26; that provides water service or wastewater service, or both, to the public and that is not under the jurisdiction of the commission for the approval of rates and charges with respect to the water service or wastewater service that is provided.
(f) As used in this section, "utility infrastructure" means mains, service lines, pumps, and other facilities or infrastructure used to provide water or wastewater service.(g) A local unit or a utility may not calculate and then charge, attempt to charge, or collect any capacity related fee or tap fee that:(1) is established after June 30, 2022; and(2) includes contributions in aid of construction.(h) After June 30, 2022, if a local unit or a utility calculates and then charges or attempts to charge any property owner, including a developer of the property, a capacity related fee or a tap fee either of which is established after June 30, 2022, and that is based, in whole or in part, on contributions in aid of construction, the property owner is entitled to request, not later than thirty (30) days after the date the capacity related fee or tap fee is imposed by the local unit or the utility, to meet with the local unit or the utility to review: (1) the engineering and financial analyses the capacity related fee or tap fee was based on; and(2) if applicable, the ordinance adopting the capacity related fee or tap fee. A local unit or a utility shall, not later than thirty (30) days after receipt of a property owner's request under this subsection, meet with the property owner for a review described in this subsection.
(i) If a meeting and review held under subsection (h) does not result in a satisfactory resolution, the property owner may, not later than seven (7) days after the date of the meeting, file with the commission a petition challenging the capacity related fee or tap fee. If the commission determines the capacity related fee or tap fee is based in whole or in part on contributions in aid of construction, the commission shall:(1) invalidate the capacity related fee or tap fee; or(2) modify the capacity related fee or tap fee to comply with this section. A property owner's right to file a petition with the commission under this subsection is in addition to any other rights or remedies the property owner may have by law or contract. The commission is not precluded from reviewing a capacity related fee or tap fee under this subsection because of a prior challenge to the capacity related fee or tap fee under another law. A party adversely affected by a determination of the commission under this subsection is entitled to appeal the determination under the same appeal procedures set forth in IC 8-1-3.
Added by P.L. 167-2022,SEC. 1, eff. 7/1/2022.