February 5, 2013





HOUSE BILL No. 1308

_____


DIGEST OF HB 1308 (Updated February 4, 2013 2:33 pm - DI 107)



Citations Affected: IC 5-20; IC 33-37.

Synopsis: Mortgage foreclosure counseling and education fee. Requires a clerk of a court who must collect a civil costs fee from a party filing a civil action to also collect a $50 mortgage foreclosure counseling and education fee from a party filing a civil action to foreclose a mortgage. Requires that mortgage foreclosure counseling and education fees collected by a clerk must be deposited in the home ownership education account.

Effective: Upon passage.





Burton




    January 14, 2013, read first time and referred to Committee on Judiciary.
    February 5, 2013, amended, reported _ Do Pass.






February 5, 2013

First Regular Session 118th General Assembly (2013)


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.
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HOUSE BILL No. 1308



    A BILL FOR AN ACT to amend the Indiana Code concerning courts and court officers.

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

SOURCE: IC 5-20-1-27; (13)HB1308.1.1. -->     SECTION 1. IC 5-20-1-27, AS AMENDED BY P.L.170-2011, SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 27. (a) The home ownership education account within the state general fund is established to support:
        (1) home ownership education programs established under section 4(d) of this chapter;
        (2) mortgage foreclosure counseling and education programs established under IC 5-20-6-2; and
        (3) programs conducted by one (1) or a combination of the following to facilitate settlement conferences in residential foreclosure actions under IC 32-30-10.5:
            (A) The judiciary.
            (B) Pro bono legal services agencies.
            (C) Mortgage foreclosure counselors (as defined in IC 32-30-10.5-6).
            (D) Other nonprofit entities certified by the authority under section 4(d) of this chapter.
The account is administered by the authority.
    (b) The home ownership education account consists of:
        (1) court fees collected under IC 33-37-5-30 (before its expiration on January 1, 2013); IC 33-37-5-32 (before its expiration on January 1, 2015);
        (2) civil penalties imposed and collected under:
            (A) IC 6-1.1-12-43(g)(2)(B); or
            (B) IC 27-7-3-15.5(e); and
        (3) any civil penalties imposed and collected by a court for a violation of a court order in a foreclosure action under IC 32-30-10.5.
    (c) The expenses of administering the home ownership education account shall be paid from money in the account.
    (d) The treasurer of state shall invest the money in the home ownership education account not currently needed to meet the obligations of the account in the same manner as other public money may be invested.
SOURCE: IC 5-20-6-3; (13)HB1308.1.2. -->     SECTION 2. IC 5-20-6-3, AS AMENDED BY P.L.170-2011, SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 3. In addition to using money provided for the program from:
        (1) court fees under IC 33-37-5-30 (before its expiration on January 1, 2013); IC 33-37-5-32 (before its expiration on January 1, 2015);
        (2) civil penalties imposed and collected under:
            (A) IC 6-1.1-12-43(g)(2)(B); or
            (B) IC 27-7-3-15.5(e); and
        (3) any civil penalties imposed and collected by a court for a violation of a court order in a foreclosure action under IC 32-30-10.5;
the authority may solicit contributions and grants from the private sector, nonprofit entities, and the federal government to assist in carrying out the purposes of this chapter.
SOURCE: IC 33-37-4-4; (13)HB1308.1.3. -->     SECTION 3. IC 33-37-4-4, AS AMENDED BY P.L.136-2012, SECTION 14, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 4. (a) The clerk shall collect a civil costs fee of one hundred dollars ($100) from a party filing a civil action. This subsection does not apply to the following civil actions:
        (1) Proceedings to enforce a statute defining an infraction under IC 34-28-5 (or IC 34-4-32 before its repeal).
        (2) Proceedings to enforce an ordinance under IC 34-28-5 (or IC 34-4-32 before its repeal).
        (3) Proceedings in juvenile court under IC 31-34 or IC 31-37.
        (4) Proceedings in paternity under IC 31-14.
        (5) Proceedings in small claims court under IC 33-34.
        (6) Proceedings in actions described in section 7 of this chapter.
    (b) In addition to the civil costs fee collected under this section, the clerk shall collect the following fees, if they are required under IC 33-37-5:
        (1) A document fee (IC 33-37-5-1, IC 33-37-5-3, or IC 33-37-5-4).
        (2) A support and maintenance fee (IC 33-37-5-6).
        (3) A document storage fee (IC 33-37-5-20).
        (4) An automated record keeping fee (IC 33-37-5-21).
        (5) A public defense administration fee (IC 33-37-5-21.2).
        (6) A judicial insurance adjustment fee (IC 33-37-5-25).
        (7) A judicial salaries fee (IC 33-37-5-26).
        (8) A court administration fee (IC 33-37-5-27).
        (9) A service fee (IC 33-37-5-28(b)(1) or IC 33-37-5-28(b)(2)).
        (10) A garnishee service fee (IC 33-37-5-28(b)(3) or IC 33-37-5-28(b)(4)).
        (11) For a mortgage foreclosure action, filed after June 30, 2009, and before January 1, 2013, a mortgage foreclosure counseling and education fee (IC 33-37-5-30 (before its expiration on January 1, 2013)). (IC 33-37-5-32) (before its expiration on January 1, 2015).
        (12) Before July 1, 2017, a pro bono legal services fee (IC 33-37-5-31).
SOURCE: IC 33-37-5-32; (13)HB1308.1.4. -->     SECTION 4. IC 33-37-5-32 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 32. (a) This section applies to a civil action in which the clerk is required to collect a civil costs fee under IC 33-37-4-4(a). The clerk shall collect a fifty dollar ($50) mortgage foreclosure counseling and education fee from a party filing an action to foreclose a mortgage.
     (b) This section expires January 1, 2015.
SOURCE: IC 33-37-7-2; (13)HB1308.1.5. -->     SECTION 5. IC 33-37-7-2, AS AMENDED BY P.L.136-2012, SECTION 18, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 2. (a) The clerk of a circuit court shall distribute semiannually to the auditor of state as the state share for deposit in the homeowner protection unit account established by IC 4-6-12-9 one hundred percent (100%) of the automated record keeping fees collected under IC 33-37-5-21 with respect to actions resulting in the accused person entering into a pretrial diversion

program agreement under IC 33-39-1-8 or a deferral program agreement under IC 34-28-5-1 and for deposit in the state general fund seventy percent (70%) of the amount of fees collected under the following:
        (1) IC 33-37-4-1(a) (criminal costs fees).
        (2) IC 33-37-4-2(a) (infraction or ordinance violation costs fees).
        (3) IC 33-37-4-3(a) (juvenile costs fees).
        (4) IC 33-37-4-4(a) (civil costs fees).
        (5) IC 33-37-4-6(a)(1)(A) (small claims costs fees).
        (6) IC 33-37-4-7(a) (probate costs fees).
        (7) IC 33-37-5-17 (deferred prosecution fees).
    (b) The clerk of a circuit court shall distribute semiannually to the auditor of state for deposit in the state user fee fund established in IC 33-37-9-2 the following:
        (1) Twenty-five percent (25%) of the drug abuse, prosecution, interdiction, and correction fees collected under IC 33-37-4-1(b)(5).
        (2) Twenty-five percent (25%) of the alcohol and drug countermeasures fees collected under IC 33-37-4-1(b)(6), IC 33-37-4-2(b)(4), and IC 33-37-4-3(b)(5).
        (3) One hundred percent (100%) of the child abuse prevention fees collected under IC 33-37-4-1(b)(7).
        (4) One hundred percent (100%) of the domestic violence prevention and treatment fees collected under IC 33-37-4-1(b)(8).
        (5) One hundred percent (100%) of the highway work zone fees collected under IC 33-37-4-1(b)(9) and IC 33-37-4-2(b)(5).
        (6) One hundred percent (100%) of the safe schools fee collected under IC 33-37-5-18.
        (7) The following:
            (A) For a county operating under the state's automated judicial system, one hundred percent (100%) of the automated record keeping fee (IC 33-37-5-21) not distributed under subsection (a).
            (B) For a county not operating under the state's automated judicial system, eighty percent (80%) of the automated record keeping fee (IC 33-37-5-21) not distributed under subsection (a).
    (c) The clerk of a circuit court shall distribute monthly to the county auditor the following:
        (1) Seventy-five percent (75%) of the drug abuse, prosecution, interdiction, and correction fees collected under IC 33-37-4-1(b)(5).


        (2) Seventy-five percent (75%) of the alcohol and drug countermeasures fees collected under IC 33-37-4-1(b)(6), IC 33-37-4-2(b)(4), and IC 33-37-4-3(b)(5).
The county auditor shall deposit fees distributed by a clerk under this subsection into the county drug free community fund established under IC 5-2-11.
    (d) The clerk of a circuit court shall distribute monthly to the county auditor one hundred percent (100%) of the late payment fees collected under IC 33-37-5-22. The county auditor shall deposit fees distributed by a clerk under this subsection as follows:
        (1) If directed to do so by an ordinance adopted by the county fiscal body, the county auditor shall deposit forty percent (40%) of the fees in the clerk's record perpetuation fund established under IC 33-37-5-2 and sixty percent (60%) of the fees in the county general fund.
        (2) If the county fiscal body has not adopted an ordinance described in subdivision (1), the county auditor shall deposit all the fees in the county general fund.
    (e) The clerk of the circuit court shall distribute semiannually to the auditor of state for deposit in the sexual assault victims assistance account established by IC 5-2-6-23(h) one hundred percent (100%) of the sexual assault victims assistance fees collected under IC 33-37-5-23.
    (f) The clerk of a circuit court shall distribute monthly to the county auditor the following:
        (1) One hundred percent (100%) of the support and maintenance fees for cases designated as non-Title IV-D child support cases in the Indiana support enforcement tracking system (ISETS) or the successor statewide automated support enforcement system collected under IC 33-37-5-6.
        (2) The percentage share of the support and maintenance fees for cases designated as Title IV-D child support cases in ISETS or the successor statewide automated support enforcement system collected under IC 33-37-5-6 that is reimbursable to the county at the federal financial participation rate.
The county clerk shall distribute monthly to the department of child services the percentage share of the support and maintenance fees for cases designated as Title IV-D child support cases in ISETS, or the successor statewide automated support enforcement system, collected under IC 33-37-5-6 that is not reimbursable to the county at the applicable federal financial participation rate.
    (g) The clerk of a circuit court shall distribute monthly to the county

auditor the following:
        (1) One hundred percent (100%) of the small claims service fee under IC 33-37-4-6(a)(1)(B) or IC 33-37-4-6(a)(2) for deposit in the county general fund.
        (2) One hundred percent (100%) of the small claims garnishee service fee under IC 33-37-4-6(a)(1)(C) or IC 33-37-4-6(a)(3) for deposit in the county general fund.
    (h) This subsection does not apply to court administration fees collected in small claims actions filed in a court described in IC 33-34. The clerk of a circuit court shall semiannually distribute to the auditor of state for deposit in the state general fund one hundred percent (100%) of the following:
        (1) The public defense administration fee collected under IC 33-37-5-21.2.
        (2) The judicial salaries fees collected under IC 33-37-5-26.
        (3) The DNA sample processing fees collected under IC 33-37-5-26.2.
        (4) The court administration fees collected under IC 33-37-5-27.
    (i) The clerk of a circuit court shall semiannually distribute to the auditor of state for deposit in the judicial branch insurance adjustment account established by IC 33-38-5-8.2 one hundred percent (100%) of the judicial insurance adjustment fee collected under IC 33-37-5-25.
    (j) The proceeds of the service fee collected under IC 33-37-5-28(b)(1) or IC 33-37-5-28(b)(2) shall be distributed as follows:
        (1) The clerk shall distribute one hundred percent (100%) of the service fees collected in a circuit, superior, county, or probate court to the county auditor for deposit in the county general fund.
        (2) The clerk shall distribute one hundred percent (100%) of the service fees collected in a city or town court to the city or town fiscal officer for deposit in the city or town general fund.
    (k) The proceeds of the garnishee service fee collected under IC 33-37-5-28(b)(3) or IC 33-37-5-28(b)(4) shall be distributed as follows:
        (1) The clerk shall distribute one hundred percent (100%) of the garnishee service fees collected in a circuit, superior, county, or probate court to the county auditor for deposit in the county general fund.
        (2) The clerk shall distribute one hundred percent (100%) of the garnishee service fees collected in a city or town court to the city or town fiscal officer for deposit in the city or town general fund.
    (l) The clerk of the circuit court shall distribute semiannually to the

auditor of state for deposit in the home ownership education account established by IC 5-20-1-27 one hundred percent (100%) of the following:
        (1) The mortgage foreclosure counseling and education fees collected under IC 33-37-5-30 (before its expiration on January 1, 2013). IC 33-37-5-32 (before its expiration on January 1, 2015).
        (2) Any civil penalties imposed and collected by a court for a violation of a court order in a foreclosure action under IC 32-30-10.5.
    (m) This subsection applies to a county that is not operating under the state's automated judicial system. The clerk of a circuit court shall distribute monthly to the county auditor twenty percent (20%) of the automated record keeping fee (IC 33-37-5-21) not distributed under subsection (a) for deposit in the clerk's record perpetuation fund.
    (n) The clerk of a circuit court shall distribute semiannually to the auditor of state one hundred percent (100%) of the pro bono legal services fees collected before July 1, 2017, under IC 33-37-5-31. The auditor of state shall transfer semiannually the pro bono legal services fees to the Indiana Bar Foundation (or a successor entity) as the entity designated to organize and administer the interest on lawyers trust accounts (IOLTA) program under Rule 1.15 of the Rules of Professional Conduct of the Indiana supreme court. The Indiana Bar Foundation shall:
        (1) deposit in an appropriate account and otherwise manage the fees the Indiana Bar Foundation receives under this subsection in the same manner the Indiana Bar Foundation deposits and manages the net earnings the Indiana Bar Foundation receives from IOLTA accounts; and
        (2) use the fees the Indiana Bar Foundation receives under this subsection to assist or establish approved pro bono legal services programs.
The handling and expenditure of the pro bono legal services fees received under this section by the Indiana Bar Foundation (or its successor entity) are subject to audit by the state board of accounts. The amounts necessary to make the transfers required by this subsection are appropriated from the state general fund.

SOURCE: ; (13)HB1308.1.6. -->     SECTION 6. An emergency is declared for this act.