Sec. 21.1. (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.

As added by P.L.196-2014, SEC.4.