Introduced Version, House Bill 1464

January 26, 2007, read first time and referred to Committee on Rules and Legislative Procedures.

Digest Continued

owner, the prosecuting attorney may certify the delinquency to the county auditor, who is required to place the total amount certified on the tax duplicate for the property as a special assessment. Provides that the total amount, including accrued interest, is collected in the same manner as delinquent taxes are collected.

Introduced

First Regular Session 115th General Assembly (2007)

PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in ~~this~~ ~~style~~ ~~type.~~
Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or ~~this~~ ~~style~~ ~~type~~ reconciles conflicts between statutes enacted by the 2006 Regular Session of the General Assembly.

HOUSE BILL No. 1464

A BILL FOR AN ACT to amend the Indiana Code concerning property.

Be it enacted by the General Assembly of the State of Indiana:

SOURCE: IC 6-1.1-24-5.3; (07)IN1464.1.1. -->     SECTION 1. IC 6-1.1-24-5.3, AS AMENDED BY P.L.169-2006, SECTION 22, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 5.3. (a) This section applies to the following:
        (1) A person who:
            (A) owns a fee interest, a life estate interest, or the equitable interest of a contract purchaser in an unsafe building or unsafe premises in the county in which a sale is held under this chapter; and
            (B) is subject to an order issued under IC 36-7-9-5(a)(2), IC 36-7-9-5(a)(3), IC 36-7-9-5(a)(4), or IC 36-7-9-5(a)(5) regarding which the conditions set forth in IC 36-7-9-10(a)(1) through IC 36-7-9-10(a)(4) exist.
        (2) A person who:
            (A) owns a fee interest, a life estate interest, or the equitable interest of a contract purchaser in an unsafe building or unsafe

premises in the county in which a sale is held under this chapter; and
            (B) is subject to an order issued under IC 36-7-9-5(a), other than an order issued under IC 36-7-9-5(a)(2), IC 36-7-9-5(a)(3), IC 36-7-9-5(a)(4), or IC 36-7-9-5(a)(5), regarding which the conditions set forth in IC 36-7-9-10(b)(1) through IC 36-7-9-10(b)(4) exist.
        (3) A person who is the defendant in a court action brought under IC 36-7-9-18, IC 36-7-9-19, IC 36-7-9-20, IC 36-7-9-21, or IC 36-7-9-22 in the county in which a sale is held under this chapter that has resulted in a judgment in favor of the plaintiff and the unsafe condition that caused the action to be brought has not been corrected.
        (4) A person who has any of the following relationships to a person, partnership, corporation, or legal entity described in subdivisions (1), (2), or (3):
            (A) A partner of a partnership.
            (B) An officer or majority stockholder of a corporation.
            (C) The person who directs the activities or has a majority ownership in a legal entity other than a partnership or corporation.
        (5) A person who, in the county in which a sale is held under this chapter, owes:
            (A) delinquent taxes;
            (B) special assessments;
            (C) penalties;
            (D) interest; or
            (E) costs directly attributable to a prior tax sale;
        on a tract or an item of real property listed under section 1 of this chapter.
         (6) A person who has been convicted of maintaining a common nuisance under IC 35-45-4-4.5, IC 35-45-9-5, or IC 35-48-4-13.
         (7) A person on whom a criminal activity investigation fee has been imposed under IC 36-7-9.5.
        ~~(6)~~ (8) A person who is an agent of the person described in this subsection.
    (b) A person subject to this section may not purchase a tract offered for sale under section 5 or 6.1 of this chapter. However, this section does not prohibit a person from bidding on a tract that is owned by the person and offered for sale under section 5 of this chapter.
    (c) The county treasurer shall require each person who will be

bidding at the tax sale to sign a statement in a form substantially similar to the following:
        "Indiana law prohibits a person who owes delinquent taxes, special assessments, penalties, interest, or costs directly attributable to a prior tax sale from purchasing tracts or items of real property at a tax sale. I hereby affirm under the penalties for perjury that I do not owe delinquent taxes, special assessments, penalties, interest, costs directly attributable to a prior tax sale, amounts from a final adjudication in favor of a political subdivision in this county, any civil penalties imposed for the violation of a building code or ordinance of this county, or any civil penalties imposed by a health department in this county, that I have not been convicted of maintaining a common nuisance under IC 35-45-4-4.5, IC 35-45-9-5, or IC 35-48-4-13, and that a criminal activity investigation fee has not been imposed on me under IC 36-7-9.5. Further, I hereby acknowledge that any successful bid I make in violation of this statement is subject to forfeiture. In the event of forfeiture, the amount of my bid shall be applied to the delinquent taxes, special assessments, penalties, interest, costs, judgments, or civil penalties I owe, and a certificate will be issued to the county executive.".
    (d) If a person purchases a tract that the person was not eligible to purchase under this section, the sale of the property is subject to forfeiture. If the county treasurer determines or is notified not more than six (6) months after the date of the sale that the sale of the property should be forfeited, the county treasurer shall:
        (1) notify the person in writing that the sale is subject to forfeiture if the person does not pay the amounts that the person owes within thirty (30) days of the notice;
        (2) if the person does not pay the amounts that the person owes within thirty (30) days after the notice, apply the surplus amount of the person's bid to the person's delinquent taxes, special assessments, penalties, and interest;
        (3) remit the amounts owed from a final adjudication or civil penalties in favor of a political subdivision to the appropriate political subdivision; and
        (4) notify the county auditor that the sale has been forfeited.
Upon being notified that a sale has been forfeited, the county auditor shall issue a certificate to the county executive under section 6 of this chapter.
    (e) A county treasurer may decline to forfeit a sale under this section because of inadvertence or mistake, lack of actual knowledge by the

bidder, substantial harm to other parties with interests in the tract or item of real property, or other substantial reasons. If the treasurer declines to forfeit a sale, the treasurer shall:
        (1) prepare a written statement explaining the reasons for declining to forfeit the sale; and
        (2) retain the written statement as an official record.
    (f) If a sale is forfeited under this section and the tract or item of real property is redeemed from the sale, the county auditor shall deposit the amount of the redemption into the county general fund and notify the county executive of the redemption. Upon being notified of the redemption, the county executive shall surrender the certificate to the county auditor.

SOURCE: IC 32-29-7-3; (07)IN1464.1.2. -->     SECTION 2. IC 32-29-7-3, AS AMENDED BY P.L.240-2005, SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 3. (a) In a proceeding for the foreclosure of a mortgage executed on real estate, process may not issue for the execution of a judgment or decree of sale for a period of three (3) months after the filing of a complaint in the proceeding. However:
        (1) the period is:
            (A) twelve (12) months in a proceeding for the foreclosure of a mortgage executed before January 1, 1958; and
            (B) six (6) months in a proceeding for the foreclosure of a mortgage executed after December 31, 1957, but before July 1, 1975; and
        (2) if the court finds that the mortgaged real estate is residential real estate and has been abandoned, a judgment or decree of sale may be executed on the date the judgment of foreclosure or decree of sale is entered, regardless of the date the mortgage is executed.
    (b) A judgment and decree in a proceeding to foreclose a mortgage that is entered by a court having jurisdiction may be filed with the clerk in any county as provided in IC 33-32-3-2. After the period set forth in subsection (a) expires, a person who may enforce the judgment and decree may file a praecipe with the clerk in any county where the judgment and decree is filed, and the clerk shall promptly issue and certify to the sheriff of that county a copy of the judgment and decree under the seal of the court.
    (c) Upon receiving a certified judgment under subsection (b), the sheriff shall, subject to ~~section~~ sections 4 and 4.5 of this chapter, sell the mortgaged premises or as much of the mortgaged premises as necessary to satisfy the judgment, interest, and costs at public auction at the office of the sheriff or at another location that is reasonably likely

to attract higher competitive bids. The sheriff shall schedule the date and time of the sheriff's sale for a time certain between the hours of 10 a.m. and 4 p.m. on any day of the week except Sunday.
    (d) Before selling mortgaged property, the sheriff must advertise the sale by publication once each week for three (3) successive weeks in a daily or weekly newspaper of general circulation. The sheriff shall publish the advertisement in at least one (1) newspaper published and circulated in each county where the real estate is situated. The first publication shall be made at least thirty (30) days before the date of sale. At the time of placing the first advertisement by publication, the sheriff shall also serve a copy of the written or printed notice of sale upon each owner of the real estate. Service of the written notice shall be made as provided in the Indiana Rules of Trial Procedure governing service of process upon a person. The sheriff shall charge a fee of ten dollars ($10) to one (1) owner and three dollars ($3) to each additional owner for service of written notice under this subsection. The fee is:
        (1) a cost of the proceeding;
        (2) to be collected as other costs of the proceeding are collected; and
        (3) to be deposited in the county general fund for appropriation for operating expenses of the sheriff's department.
    (e) The sheriff also shall post written or printed notices of the sale in at least three (3) public places in each township in which the real estate is situated and at the door of the courthouse of each county in which the real estate is located.
    (f) If the sheriff is unable to procure the publication of a notice within the county, the sheriff may dispense with publication. The sheriff shall state that the sheriff was not able to procure the publication and explain the reason why publication was not possible.
    (g) Notices under subsections (d) and (e) must contain a statement, for informational purposes only, of the location of each property by street address, if any, or other common description of the property other than legal description. A misstatement in the informational statement under this subsection does not invalidate an otherwise valid sale.
    (h) The sheriff may charge an administrative fee of not more than two hundred dollars ($200) with respect to a proceeding referred to in subsection (b) for actual costs directly attributable to the administration of the sale under subsection (c). The fee is:
        (1) payable by the person seeking to enforce the judgment and decree; and
        (2) due at the time of filing of the praecipe;
under subsection (b).

SOURCE: IC 32-29-7-4.5; (07)IN1464.1.3. -->     SECTION 3. IC 32-29-7-4.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 4.5. (a) After June 30, 2007, the following persons may not purchase property at a foreclosure sale under this chapter:
        (1) A person who:
            (A) owns a fee interest, a life estate interest, or the equitable interest of a contract purchaser in an unsafe building or unsafe premises in the county in which a sale is held under this chapter; and
            (B) is subject to an order issued under IC 36-7-9-5(a)(2), IC 36-7-9-5(a)(3), IC 36-7-9-5(a)(4), or IC 36-7-9-5(a)(5) regarding which the conditions set forth in IC 36-7-9-10(a)(1) through IC 36-7-9-10(a)(4) exist.
        (2) A person who:
            (A) owns a fee interest, a life estate interest, or the equitable interest of a contract purchaser in an unsafe building or unsafe premises in the county in which a sale is held under this chapter; and
            (B) is subject to an order issued under IC 36-7-9-5(a), other than an order issued under IC 36-7-9-5(a)(2), IC 36-7-9-5(a)(3), IC 36-7-9-5(a)(4), or IC 36-7-9-5(a)(5), regarding which the conditions set forth in IC 36-7-9-10(b)(1) through IC 36-7-9-10(b)(4) exist.
        (3) A person who is the defendant in a court action brought under IC 36-7-9-18, IC 36-7-9-19, IC 36-7-9-20, IC 36-7-9-21, or IC 36-7-9-22 in the county in which a sale is held under this chapter that has resulted in a judgment in favor of the plaintiff and the unsafe condition that caused the action to be brought has not been corrected.
        (4) A person who has any of the following relationships to a person, partnership, corporation, or legal entity described in subdivision (1), (2), or (3):
            (A) A partner of a partnership.
            (B) An officer or majority stockholder of a corporation.
            (C) The person who directs the activities or has a majority ownership in a legal entity other than a partnership or corporation.
        (5) A person who, in the county in which a sale is held under this chapter, owes:
            (A) delinquent taxes;
            (B) special assessments;
            (C) penalties;
            (D) interest; or
            (E) costs directly attributable to a prior tax sale;
        on a tract or an item of real property.
        (6) A person who has been convicted of maintaining a common nuisance under IC 35-45-4-4.5, IC 35-45-9-5, or IC 35-48-4-13.
         (7) A person on whom a criminal activity investigation fee has been imposed under IC 36-7-9.5.
        (8) A person who is an agent of the person described in this subsection.
    (b) The county sheriff shall require each person who will be bidding at a foreclosure sale to sign a statement in a form substantially similar to the following:
        "Indiana law prohibits a person who owes delinquent taxes, special assessments, penalties, interest, or costs directly attributable to a prior tax sale from purchasing tracts or items of real property at a foreclosure sale. I hereby affirm under the penalties for perjury that I do not owe delinquent taxes, special assessments, penalties, interest, costs directly attributable to a prior tax sale, amounts from a final adjudication in favor of a political subdivision in this county, any civil penalties imposed for the violation of a building code or ordinance of this county, or any civil penalties imposed by a health department in this county, that I have not been convicted of maintaining a common nuisance under IC 35-45-4-4.5, IC 35-45-9-5, or IC 35-48-4-13, and that a criminal activity investigation fee has not been imposed on me under IC 36-7-9.5. Further, I hereby acknowledge that any successful bid I make in violation of this statement is subject to forfeiture. In the event of forfeiture, the amount of my bid shall be applied to the delinquent taxes, special assessments, penalties, interest, costs, judgments, or civil penalties I owe.".
     (c) If a person purchases a tract that the person was not eligible to purchase under this section, the sale of the property is subject to forfeiture. A county sheriff may decline to forfeit a sale under this section because of inadvertence or mistake, lack of actual knowledge by the bidder, substantial harm to other parties with interests in the tract or item of real property, or other substantial reasons. If the county sheriff declines to forfeit a sale, the county sheriff shall:
        (1) prepare a written statement explaining the reasons for

declining to forfeit the sale; and
(2) retain the written statement as an official record.

SOURCE: IC 32-31-6-7; (07)IN1464.1.5. -->     SECTION 5. IC 32-31-6-7 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 7. (a) As used in this section, "waste":
         (1) does not include failure to pay rent; and
        (2) includes the following:
            (A) The tenant or any other occupant of the rental unit is convicted of maintaining a common nuisance under IC 35-48-4-13.
            (B) The tenant or any other occupant of the rental unit causes or allows any behavior, condition, damage, or injury on or near the rental unit or landlord's property that reduces or poses a substantial risk of reducing the value of the rental unit or landlord's property.
    (b) At the emergency hearing, if the court finds:
        (1) probable cause to believe that the tenant has committed or threatens to commit waste to the rental unit; and
        (2) that the landlord has suffered or will suffer immediate and serious:
            (A) injury;
            (B) loss; or
            (C) damage;
the court shall issue an order under subsection (c).
    (c) If the court makes a finding under subsection (b), the court shall order the tenant to do ~~either~~ or ~~both~~ of ~~the~~ ~~following:~~
        ~~(1)~~ return possession of the dwelling unit to the landlord immediately.
        ~~(2)~~ ~~Refrain~~ ~~from~~ ~~committing~~ ~~waste~~ to ~~the~~ ~~dwelling~~ ~~unit.~~
    (d) The court may make other orders that the court considers just under the circumstances, including setting a subsequent hearing at the request of a party to adjudicate related claims between the parties.

SOURCE: IC 36-7-9.5; (07)IN1464.1.8. -->     SECTION 8. IC 36-7-9.5 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2007]:
    Chapter 9.5. Criminal Activity Investigation Fee
    Sec. 1. This chapter applies to any county in which the county legislative body adopts by ordinance the provisions of this chapter.
    Sec. 2. As used in this chapter, "criminal activity" means any of the following:
        (1) An offense under IC 35-45-4 (indecent acts and prostitution).
        (2) An offense under IC 35-45-9 (criminal gang control).
        (3) An offense under IC 35-48-4 (controlled substances).
        (4) Unlawful gambling (IC 35-45-5-2).
    Sec. 3. As used in this chapter, "fee" means a criminal activity investigation fee imposed under section 4 of this chapter.
    Sec. 4. (a) Except as provided in subsection (c), the prosecuting attorney of a county may impose a criminal activity investigation fee on the owner of property if the following conditions are satisfied:
        (1) At least three (3) reports substantiating the occurrence of criminal activity on the property have been filed by law enforcement officers (as defined in IC 35-41-1-17) during the preceding twelve (12) months.
        (2) After the filing of each of the first two (2) reports substantiating the occurrence of criminal activity on the property, the prosecuting attorney provided notice required by section 5 of this chapter to the property owner.
        (3) The third or subsequent report substantiating the

occurrence of criminal activity on the property was filed at least one (1) month after notice of the first report substantiating the occurrence of criminal activity on the property was provided to the property owner under section 5 of this chapter.
    (b) If the conditions of subsection (a) are satisfied, a separate fee may be imposed for the filing of:
        (1) the third report substantiating the occurrence of criminal activity on the property; and
        (2) each subsequent report substantiating the occurrence of criminal activity on the property.
    (c) A fee may not be imposed on a person under this chapter based on the filing of reports related to residential property that:
        (1) is owned by the person; and
        (2) is vacant because the person:
            (A) resides in a hospital, a nursing home, a convalescent home, or another facility for physical or mental care; or
            (B) is unable to live alone at the residential property.
    (d) A prosecuting attorney is not required to impose a fee authorized under this section if the prosecuting attorney determines that the circumstances make imposition of the fee inappropriate.
    Sec. 5. (a) For purposes of section 4(a) of this chapter, notice of the filing of a report substantiating the occurrence of criminal activity may be provided to the property owner by any of the following methods:
        (1) Mailing a copy of the notice by registered or certified mail to the residence or place of business or employment of the property owner, as on file with the county treasurer, with return receipt requested.
        (2) Delivering a copy of the notice to the property owner.
        (3) Leaving a copy of the notice at the dwelling or usual place of abode of the property owner, as on file with the county treasurer, and sending by first class mail a copy of the notice to the last known address of the property owner.
     (b) In a county in which the county legislative body has adopted by ordinance the provisions of this chapter, this subsection applies six (6) months after the effective date of the ordinance. A person who:
        (1) owns residential property;
        (2) rents the residential property to another person; and
        (3) does not provide to the prosecuting attorney:

            (A) the person's name and address; and
            (B) the addresses of all residential property in the county rented by the person to another person;
is considered to waive and relinquish a right to notice required by section 4(a) of this chapter of the filing of reports substantiating the occurrence of criminal activity on the residential property.
    Sec. 6. (a) Subject to subsection (b), the county legislative body shall by ordinance determine the amount of the fee that may be imposed under this chapter.
    (b) The amount of the fee that may be imposed under this chapter:
        (1) must be based on a reasonable estimate of the average cost in the county of conducting a law enforcement call or run and preparing a report on the law enforcement call or run; and
        (2) may not exceed one thousand dollars ($1,000).
    Sec. 7. (a) A fee collected under this chapter shall be:
        (1) deposited in a dedicated account or fund; and
        (2) distributed as provided in subsection (b) not more than sixty (60) days after the fee is collected.
    (b) The county auditor shall distribute a fee collected under this chapter to the law enforcement agency that filed the reports substantiating the occurrence of criminal activity. In the case of a fee collected after the filing of reports by more than one (1) law enforcement agency, the fee shall be distributed proportionately to the law enforcement agencies based on the number of reports filed by each law enforcement agency.
    Sec. 8.     (a) If all or any part of a fee imposed under this chapter remains unpaid for more than thirty (30) days after it is billed to the property owner, the prosecuting attorney may certify the following information to the county auditor:
        (1) The name of the property owner on whom the fee has been imposed.
        (2) The address or description of the property for which the reports substantiating the occurrence of criminal activity were filed.
        (3) The amount of the fee.
    (b) The county auditor shall place the total amount certified under subsection (a) on the tax duplicate for the property as a special assessment. The total amount, including accrued interest, shall be collected in the same manner as delinquent taxes are collected.
    (c) An amount collected under subsection (b), after all other

taxes have been collected and disbursed, shall be disbursed to the dedicated account or fund described in section 7 of this chapter.