Indiana § 36-4-3-21.1 Expiration of municipal utility service contracts for properties outside
corporate boundaries; continuation of service; payment of rates;
arbitration

Indiana Statutes

§ 36-4-3-21.1 — Expiration of municipal utility service contracts for properties outside corporate boundaries; continuation of service; payment of rates; arbitration

Indiana § 36-4-3-21.1

Title 36LOCAL GOVERNMENT

Art. 4GOVERNMENT OF CITIES AND TOWNS

Ch. 3Municipal Annexation and Disannexation

This text of Indiana § 36-4-3-21.1 (Expiration of municipal utility service contracts for properties outside corporate boundaries; continuation of service; payment of rates; arbitration) is published on Counsel Stack Legal Research, covering Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Ind. Code § 36-4-3-21.1 (2026).

Text

1.

(a)This section applies if:

(1)one (1) or more contracts were entered into under section 21(a)(1) of this chapter between:

(A)the executive and an administrative agency of a municipality; and

(B)the owners or lessees of properties located outside the corporate boundaries of the municipality; concerning the provision of municipal utility services in the area in which the properties referred to in clause (B) are located;

(2)the contracts have expired;

(3)the area in which the properties referred to in subdivision

(1)(B) are located has not been annexed into the municipality; and

(4)the parties have not agreed:

(A)to an extension of the contracts referred to in subdivision

(1); or

(B)to enter into new contracts under section 21(a)(1) of this chapter.

(b)In a situation described i

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1. (a) This section applies if:
(1) one (1) or more contracts were entered into under section
21(a)(1) of this chapter between:
(A) the executive and an administrative agency of a
municipality; and
(B) the owners or lessees of properties located outside the
corporate boundaries of the municipality;
concerning the provision of municipal utility services in the area
in which the properties referred to in clause (B) are located;
(2) the contracts have expired;
(3) the area in which the properties referred to in subdivision
(1)(B) are located has not been annexed into the municipality; and
(4) the parties have not agreed:
(A) to an extension of the contracts referred to in subdivision
(1); or
(B) to enter into new contracts under section 21(a)(1) of this
chapter.
(b) In a situation described in subsection (a):
(1) municipal utility services to the properties referred to in
subsection (a)(1)(B) may not be terminated, except for
nonpayment of the compensation due under subdivision (2); and
(2) as a condition of continuing to receive municipal utility
services, the owners or lessees of the properties referred to in
subsection (a)(1)(B) must continue to pay the rate charged for the
municipal utility services under the expired contracts, including
any payment or contribution of money to the municipality
provided for in the expired contracts under section 21(a) of this
chapter;
for the period specified in subsection (c)(1) or until the occurrence of
one (1) of the events set forth in subsection (c)(2).
(c) The municipal utility services shall continue to be provided to
the properties referred to in subsection (a)(1)(B) under the terms set
forth in subsection (b):
(1) for a period of two (2) years from the date of expiration of the
contracts, if none of the events set forth in subdivision (2)(A)
through (2)(C) occurs within that period; or
(2) until one (1) of the following occurs:
(A) The executive and administrative agency of the
municipality and the owners or lessees of the properties
referred to in subsection (a)(1)(B) enter into a new contract
under section 21(a)(1) of this chapter.
(B) The area in which the properties referred to in subsection
(a)(1)(B) are located is annexed into the municipality.
(C) Subject to subsection (e), arbitration of the matter is
initiated under subsection (d).
(d) At any time within the period referred to in subsection (c)(1):
(1) the executive and administrative agency of the municipality;
and
(2) the owners or lessees of the properties referred to in
subsection (a)(1)(B);
may initiate arbitration of the differences preventing the parties from
entering into a new contract under section 21(a)(1) of this chapter. The
arbitration shall be conducted under IC 34-57-1 by an arbitrator
mutually chosen by the parties, and the award made by the arbitrator
must establish reasonable and just terms of a new contract between the
parties under section 21(a)(1) of this chapter, considering all relevant
factors. If either party fails or refuses to enter into a new contract under
section 21(a)(1) of this chapter according to the terms of the award, the
other party may commence legal action to enforce the award under IC 34-57-1-13.
(e) If arbitration is initiated under subsection (d) before the
expiration of the period referred to in subsection (c)(1), but the
arbitration is not concluded before the expiration of the period set forth
in subsection (c)(1), the municipal utility services shall continue to be
provided to the properties referred to in subsection (a)(1)(B) under the
terms set forth in subsection (b) until the arbitrator makes the award
and the parties enter into a new contract under section 21(a)(1) of this
chapter according to the terms of the award.