§ 8-1-13-18.5 — Withdrawal from jurisdiction of commission

Indiana § 8-1-13-18.5

• Jurisdiction: Indiana
• Art. 1: UTILITIES GENERALLY
• Ch. 13: Rural Electric Membership Corporation Act

Text

5. (a) Except as provided in subsection (i),
a corporation organized under this chapter or a corporation organized
under IC 23-17 whose membership includes one (1) or more
corporations organized under this chapter may withdraw from the
jurisdiction of the commission. A corporation organized under this
chapter that withdraws from the jurisdiction of the commission must
comply with all provisions of this chapter that do not directly concern
the commission and must continue to pay the public utility fee required
under IC 8-1-6. A member of a corporation that has withdrawn from
the commission's jurisdiction shall have reasonable access to the
meetings and the minutes of the meetings of the corporation's board of
directors, except for executive sessions that concern personnel matters
and confidential or proprietary matters that may:
(1) invade the privacy of a member or an employee of the
corporation; or
(2) impair the corporation's bargaining, legal, or competitive
position;
if the matter is disclosed to the member.
(b) A corporation that proposes to withdraw under this chapter from
the jurisdiction of the commission must first obtain the approval of the
members.
(c) The board of a corporation that proposes to withdraw under this
chapter from the jurisdiction of the commission must conduct a
referendum of the members of the corporation to determine whether the
members approve of the removal of the corporation from the
jurisdiction of the commission.
(d) A board must send written notice of the board's intent to conduct
a referendum to the commission before the board may conduct the
referendum.
(e) A referendum may be conducted at an annual or special meeting
of the members held under section 8 of this chapter if a quorum is
present.
(f) Written notice of a meeting at which a referendum is to be
conducted must be sent to every member not less than thirty (30) days
before the date of the meeting. The notice must contain the following
information:
(1) The place, date, and hour of the meeting.
(2) The fact that a referendum will be conducted at the meeting to
determine whether the members approve of the removal of the
corporation from the jurisdiction of the commission.
(3) The fact that no proxies will be permitted to determine
whether the members approve of the removal of the corporation
from the jurisdiction of the commission.
(g) A board shall distribute secret ballots to the members present at
the meeting. The ballots must be in a form substantially equivalent to
the following:
___ YES. I want the corporation to withdraw from the jurisdiction
of the commission.
___ NO. I want the corporation to remain under the jurisdiction
of the commission.
Only those members present in person at the meeting may vote. Each
member is entitled to one (1) vote on the question of the corporation's
withdrawal from jurisdiction of the commission. If a majority of the
members present vote in favor of withdrawing from the jurisdiction of
the commission, the withdrawal is effective thirty (30) days after the
date of the vote. If less than a majority of the members vote in favor of
withdrawing the corporation from jurisdiction of the commission, the
corporation is prohibited from conducting another referendum
concerning withdrawal for eighteen (18) months following the date of
the meeting at which the vote was taken. Parties aggrieved by the
conduct of the referendum must file an action in the circuit or superior
court with jurisdiction in the county where the corporation has the
corporation's principal office to allege noncompliance with this section
not more than thirty (30) days after the date of the vote.
(h) If a corporation withdraws from jurisdiction of the commission,
the corporation's secretary shall not more than five (5) days after the
date of the vote send a verified certification of the vote to the
commission affirming that all the requirements of this section were met
and include all of the following:
(1) The total membership of the corporation.
(2) The total number of members voting in the referendum.
(3) The actual vote, for and against withdrawal.
(i) If a corporation withdraws from the jurisdiction of the
commission, the commission shall continue to exercise jurisdiction
over the corporation only as to the following:
(1) Electric service area assignments under IC 8-1-2.3.
(2) Certificates of public convenience and necessity, certificates
of territorial authority, and indeterminate permits under IC 8-1-2,
IC 8-1-8.5, or IC 8-1-8.7.
(j) Whenever two (2) or more corporations organized under this
chapter consolidate or merge under section 16 of this chapter, and one
(1) but not all of the corporations has withdrawn from the jurisdiction
of the commission under this section, the consolidated or merged
corporation is under the jurisdiction of the commission until the
consolidated or merged corporation withdraws from jurisdiction of the
commission under this section, unless the agreement for consolidation
or merger approved under section 16 of this chapter includes the
withdrawal from the jurisdiction of the commission under this section.
(k) A board of a corporation that has withdrawn from the
jurisdiction of the commission under this section must conduct a
referendum of the corporation's members to determine whether the
corporation should return to the jurisdiction of the commission upon
receipt of:
(1) a petition for a referendum signed by not less than fifteen
percent (15%) of the corporation's members; or
(2) a resolution ordering a referendum adopted by a majority vote
of the board of directors of the corporation.
Upon receipt of the petition or adoption of the resolution by the board,
the board shall inform the commission of the petition or resolution and
shall thereafter conduct a referendum at the next annual meeting of the
corporation held under section 8 of this chapter, or if the next annual
meeting is more than ninety (90) days after the date the petition was
received or resolution for referendum was adopted by the board, then
at a special meeting called by the board and held not more than ninety
(90) days after receipt of the petition or adoption of the resolution. The
process provided in subsections (d), (e), (f), (g), and (h) shall be
followed when conducting a referendum under this subsection, except
the form of the ballots must be as follows:
___ YES. I want the corporation to return to the jurisdiction of the
commission.
___ NO. I want the corporation to remain outside the jurisdiction
of the commission.
If a corporation returns to the jurisdiction of the commission, the
commission shall resume all the jurisdiction it would have if the
corporation had not withdrawn, effective thirty (30) days following the
date the referendum was conducted. If less than a majority of the
members voting at the referendum vote in favor of returning to the
jurisdiction of the commission, a referendum on the question presented
at the referendum may not be conducted for eighteen (18) months
following the date of the vote.

Legislative History

As added by P.L.109-1995, SEC.3. Amended by P.L.42-2005, SEC.1; P.L.213-2014, SEC.4.