Reprinted

January 29, 2008





HOUSE BILL No. 1061

_____


DIGEST OF HB 1061 (Updated January 28, 2008 4:37 pm - DI 51)



Citations Affected: IC 8-1.5; IC 32-31; IC 36-9; noncode.

Synopsis: Application of landlord-tenant statutes. Provides that the residential landlord-tenant statutes apply to a rental agreement that gives the tenant an option to purchase and that is entered into after June 30, 2008. Eliminates the lien on property for delinquent sewer and water charges incurred by a tenant who is not the owner of the property.

Effective: Upon passage; July 1, 2008.





Day , Foley




    January 8, 2008, read first time and referred to Committee on Judiciary.
    January 22, 2008, reported _ Do Pass.
    January 28, 2008, read second time, amended, ordered engrossed.





Reprinted

January 29, 2008

Second Regular Session 115th General Assembly (2008)


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 2007 Regular Session of the General Assembly.

HOUSE BILL No. 1061



    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 8-1.5-5-29; (08)HB1061.2.1. -->     SECTION 1. IC 8-1.5-5-29, AS ADDED BY P.L.131-2005, SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 29. (a) Subsections (c) (d), and (e) do not apply to a city that before January 1, 2005, adopted an ordinance establishing procedures for the collection of unpaid user fees under this chapter through the enforcement of a lien.
    (b) Fees assessed against real property under this chapter constitute a lien against the property assessed. The lien is superior to all other liens except tax liens. Except as provided in subsections (c) and (d), the lien attaches when notice of the lien is filed in the county recorder's office under section 30 of this chapter.
    (c) A fee is not enforceable as a lien against a subsequent owner of property unless the lien for the fee was recorded with the county recorder before the conveyance to the subsequent owner. If property is conveyed before a lien is filed, the department shall notify the person who owned the property at the time the fee became payable. The notice must inform the person that payment, including penalty fees for

delinquencies, is due not more than fifteen (15) days after the date of the notice. If payment is not received within one hundred eighty (180) days after the date of the notice, the amount due may be expensed as a bad debt loss.".
    (d) A lien attaches does not attach against real property occupied by someone other than the owner. only if the department notifies the owner within twenty (20) days after the time the user fees became sixty (60) days delinquent. However, the department must give notice to the owner only if the owner has given the department written notice of the address to which to send notice.
    (e) The department shall release:
        (1) liens filed with the county recorder after the recorded date of conveyance of the property; and
        (2) delinquent fees incurred by the seller;
upon receipt of a verified demand in writing from the purchaser. The demand must state that the delinquent fees were not incurred by the purchaser as a user, lessee, or previous owner and that the purchaser has not been paid by the seller for the delinquent fees.

SOURCE: IC 32-31-2.9-4; (08)HB1061.2.2. -->     SECTION 2. IC 32-31-2.9-4 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2008]: Sec. 4. The residential landlord-tenant statutes do not apply to any of the following arrangements unless the arrangement was created to avoid application of the residential landlord-tenant statutes:
        (1) Residence at a rental unit owned or operated by an institution that is directly related to detention or the provision of medical care, maternity home care, education, counseling, religious service, geriatric service, or a similar service.
        (2) Occupancy under a contract of sale of a rental unit or the property of which the rental unit is a part if the occupant is the purchaser or a person who succeeds to the purchaser's interest. However, the residential landlord-tenant statutes apply to occupancy of a rental unit under a rental agreement described in IC 32-31-3-7(b).
        (3) Occupancy by a member of a fraternal or social organization in the part of a structure operated for the benefit of the organization.
        (4) Transient occupancy in a hotel, motel, or other lodging.
        (5) Occupancy by an employee of a landlord whose right to occupancy is conditional upon employment in or about the premises.
        (6) Occupancy by an owner of a condominium unit or a holder of a proprietary lease in a cooperative.
        (7) Occupancy under a rental agreement covering property used by the occupant primarily for agricultural purposes.
SOURCE: IC 32-31-3-7; (08)HB1061.2.3. -->     SECTION 3. IC 32-31-3-7 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2008]: Sec. 7. (a) As used in this chapter, "rental agreement" means an agreement together with any modifications, embodying the terms and conditions concerning the use and occupancy of a rental unit.
     (b) The term includes an agreement, regardless of what the agreement is called, that satisfies the following:
        (1) The agreement is entered into after June 30, 2008.
        (2) The agreement provides for a rental period, explicitly or implicitly, regardless of the term of the rental period.
        (3) The agreement contains an option to purchase.

SOURCE: IC 32-31-7-1; (08)HB1061.2.4. -->     SECTION 4. IC 32-31-7-1 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2008]: Sec. 1. (a) Except as provided in subsection (b), this chapter applies only to dwelling units that are let for rent under a rental agreement entered into after June 30, 2002.
    (b) This chapter does not apply to dwelling units that are let for rent with an option to purchase under an agreement entered into before July 1, 2008.
SOURCE: IC 32-31-8-1; (08)HB1061.2.5. -->     SECTION 5. IC 32-31-8-1 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2008]: Sec. 1. (a) Except as provided in subsection (b), this chapter applies only to dwelling units that are let for rent under a rental agreement entered into after June 30, 2002.
    (b) This chapter does not apply to dwelling units that are let for rent with an option to purchase under an agreement entered into before July 1, 2008.
SOURCE: IC 36-9-23-32; (08)HB1061.2.6. -->     SECTION 6. IC 36-9-23-32, AS AMENDED BY P.L.131-2005, SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 32. (a) Except as otherwise provided in this chapter, fees assessed against real property under this chapter or under any statute repealed by IC 19-2-5-30 constitute a lien against the property assessed. The lien is superior to all other liens except tax liens. Except as provided in subsections subsection (b) and (c), the lien attaches when notice of the lien is filed in the county recorder's office under section 33 of this chapter.
    (b) A fee is not enforceable as a lien against a subsequent owner of property unless the lien for the fee was recorded with the county recorder before the conveyance to the subsequent owner. If the property is conveyed before the lien can be filed, the municipality shall notify

the person who owned the property at the time the fee became payable. The notice must inform the person that payment, including penalty fees for delinquencies, is due not more than fifteen (15) days after the date of the notice. If payment is not received within one hundred eighty (180) days after the date of the notice, the amount due may be expensed as a bad debt loss.
    (c) A lien attaches does not attach against real property occupied by someone other than the owner. only if the utility notified the owner within twenty (20) days after the time the utility fees became sixty (60) days delinquent. However, the utility is required to give notice to the owner only if the owner has given the general office of the utility written notice of the address to which the owner's notice is to be sent.
    (d) The municipality shall release:
        (1) liens filed with the county recorder after the recorded date of conveyance of the property; and
        (2) delinquent fees incurred by the seller;
upon receipt of a verified demand in writing from the purchaser. The demand must state that the delinquent fees were not incurred by the purchaser as a user, lessee, or previous owner, and that the purchaser has not been paid by the seller for the delinquent fees.

SOURCE: ; (08)HB1061.2.7. -->     SECTION 7. [EFFECTIVE UPON PASSAGE] IC 8-1.5-5-29 and IC 36-9-23-32, both as amended by this act, apply only to fees and penalties incurred by an occupant of real property after the effective date of this SECTION. A reference in any law to the collection or enforcement of rates, fees, charges, or penalties in the manner provided by IC 36-9-23 or IC 36-9-23-32 shall be treated as not imposing a lien for the collection or enforcement of rates, fees, charges, or penalties in cases described in IC 36-9-23-32(c).
SOURCE: ; (08)HB1061.2.8. -->     SECTION 8. An emergency is declared for this act.