Sec. 16. (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:

(1) IC 5-3.

(2) IC 5-4-1.

(3) IC 5-11.

(4) IC 5-13.

(5) IC 5-14-1.5.

(6) IC 5-14-3.

(7) IC 5-22.

(8) IC 36-1-8.

(9) IC 36-1-10.

(10) IC 36-1-10.5.

(11) IC 36-1-11.

(12) IC 36-1-12.

(13) IC 36-1-15.

     (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.