Section 13-18-16-16 - Nonprofit water utility reconstituted as water authority by resolution; status as political subdivision; existing obligations; treatment as nonprofit; independent audits(a) A nonprofit water utility may adopt a resolution approved by its board of directors under this section that reconstitutes the nonprofit water utility as a water authority to be named as provided in the resolution.(b) A resolution adopted under this section must allow:(1) the structure of the board of directors; and(2) the rules governing the water authority; to remain the same as those applicable to the nonprofit water utility.
(c) The water authority shall retain all its powers, privileges, rights, and exemptions as a nonprofit water utility under: (1) its existing bylaws and articles; and(2) all laws applicable to nonprofit water utilities and local water corporations, including powers granted under IC 32-24-4-1.(d) Except as provided in subsection (g), a water authority constituted under this section is a political subdivision of the state.(e) A copy of a resolution adopted under this section must be filed with the secretary of state. When the secretary of state receives a copy of a resolution under this subsection, the secretary of state shall dissolve the corporate status of the nonprofit water utility for purposes of state law.(f) A water authority constituted under this section shall:(1) remain obligated under any existing contracts or agreements; and(2) remain obligated and assume the indebtedness; of the nonprofit water utility.
(g) Notwithstanding any other law and subject to subsections (h) and (i), a water authority constituted under this section is subject only to the laws applicable to nonprofit water utilities and local water corporations and is not subject to the following: (h) A water authority constituted under this section is subject to IC 8-1.5-3-8 for purposes of setting rates and charges.(i) For each fiscal or calendar year of a water authority constituted under this section that ends after December 31, 2006, the water authority: (1) shall: (A) have an audit of its financial records performed by an independent certified public accounting firm; and(B) keep the audit report on file at the water authority; and(2) notwithstanding IC 5-11-1-9, is not subject to the following: (A) Audit or examination by the state board of accounts.(B) The examination guidelines and reporting requirements of the state board of accounts.As added by P.L. 104-1998, SEC.3. Amended by P.L. 220-1999, SEC.3; P.L. 2-2002, SEC.57; P.L. 166-2006, SEC.1.