LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
200 W. Washington St., Suite 301
Indianapolis, IN 46204
(317) 233-0696
iga.in.gov
FISCAL IMPACT STATEMENT
LS 7072 NOTE PREPARED: Jan 7, 2021
BILL NUMBER: HB 1404 BILL AMENDED:
SUBJECT: Water Service Disconnections.
FIRST AUTHOR: Rep. Pack BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED: GENERAL IMPACT: State & Local
X DEDICATED
FEDERAL
Summary of Legislation: The bill provides that a water or sewer utility: (1) may not discontinue water
service or sewage disposal service at the residence of a customer at which an unemancipated minor less than
18 years of age resides; and (2) must provide the customer an opportunity to enter into a reasonable
amortization agreement to pay any delinquent balance on the customer's account.
Effective Date: Upon passage.
Explanation of State Expenditures: Indiana Utility Regulatory Commission (IURC): The IURC may
establish a reasonable rate of interest that a water or sewer utility may charge on the unpaid balance of a
delinquent account for a residence where an unemancipated minor resides. The IURC may adopt rules to
administer the provisions of the bill. The provisions of the bill would increase the workload of the IURC,
but could likely be accomplished within existing resources.
Explanation of State Revenues:
Explanation of Local Expenditures: The bill could increase costs to the extent that municipal utilities,
conservancy districts, municipal sanitation departments, and sanitary districts that provide residential water
or wastewater service could see increased workload in offering and administering amortization agreements
with qualifying customers.
Explanation of Local Revenues: The bill could result in decreased revenues for municipal utilities,
conservancy districts, municipal sanitation departments, and sanitary districts that provide residential water
or wastewater service to the extent that the utility may not discontinue service in the event of customer
HB 1404 1
nonpayment while the conditions of the bill are met. The impact to local revenues is indeterminable, but
could be offset by the interest paid on the delinquent balance.
State Agencies Affected:
Local Agencies Affected: Municipal utilities; conservancy districts; municipal sanitation departments;
sanitary districts.
Information Sources:
Fiscal Analyst: Olivia Smith, 317-232-9869.
HB 1404 2


Statutes affected:
1. Introduced House Bill (H): 8-1.5-3-4, 36-9-25-11, 36-9-25-11.5