1. (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.

2. (b) A resolution adopted under this section must allow:

   1. (1) the structure of the board of directors; and

   2. (2) the rules governing the water authority;

      to remain the same as those applicable to the nonprofit water utility.

3. (c) The water authority shall retain all its powers, privileges, rights, and exemptions as a nonprofit water utility under:

   1. (1) its existing bylaws and articles; and
   2. (2) all laws applicable to nonprofit water utilities and local water corporations, including powers granted under IC 32-24-4-1 .
4. (d) Except as provided in subsection (g), a water authority constituted under this section is a political subdivision of the state.
5. (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.

6. (f) A water authority constituted under this section shall:

   1. (1) remain obligated under any existing contracts or agreements; and

   2. (2) remain obligated and assume the indebtedness;

      of the nonprofit water utility.

7. (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:

   1. (1) IC 5-3 .
   2. (2) IC 5-4-1 .
   3. (3) IC 5-11 .
   4. (4) IC 5-13 .
   5. (5) IC 5-14-1.5 .
   6. (6) IC 5-14-3 .
   7. (7) IC 5-22 .
   8. (8) IC 36-1-8 .
   9. (9) IC 36-1-10 .
   10. (10) IC 36-1-10.5 .
   11. (11) IC 36-1-11 .
   12. (12) IC 36-1-12 .
   13. (13) IC 36-1-15 .
8. (h) A water authority constituted under this section is subject to IC 8-1.5-3-8 for purposes of setting rates and charges.

9. (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. (1) shall:

      1. (A) have an audit of its financial records performed by an independent certified public accounting firm; and
      2. (B) keep the audit report on file at the water authority; and

   2. (2) notwithstanding IC 5-11-1-9 , is not subject to the following:

      1. (A) Audit or examination by the state board of accounts.
      2. (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.