*HB1329.1*
January 23, 2024
HOUSE BILL No. 1329
_____
DIGEST OF HB 1329 (Updated January 23, 2024 10:29 am - DI 116)
Citations Affected: IC 13-21; IC 32-21; IC 36-1; IC 36-7.
Synopsis: Local government matters. Authorizes the solid waste
management district of Vanderburgh County to make grants and loans
for certain purposes. Prohibits a governmental entity from requiring
that a Class 2 structure or a residential onsite sewage system be
inspected in connection with or as a condition of the sale of or transfer
of title to the property containing the Class 2 structure or residential
onsite sewage system. Provides, for purposes of posting a license bond,
that a political subdivision may not impose any requirement for the
political subdivision to be identified as an obligee on the license bond
other than the requirement in statute. Provides that certain obligors
may initiate a civil action against a political subdivision that does not
recognize or does not allow an obligor to post a license bond that
satisfies certain requirements and that, if the obligor prevails in the
action, the obligor shall be awarded an amount equal to: (1) 300% of
the cost of obtaining the license bond; (2) compensatory damages; and
(3) reasonable attorney's fees. Provides that if a contractor: (1) has
posted a license bond to obtain one license from a political subdivision;
and (2) is required to obtain another license from the political
(Continued next page)
Effective: July 1, 2024.
Pressel, Miller D
January 10, 2024, read first time and referred to Committee on Local Government.
January 23, 2024, amended, reported — Do Pass.
HB 1329—LS 7018/DI 55 Digest Continued
subdivision to perform work that the contractor intends to perform; the
contractor may not be required to post a second license bond as a
condition of obtaining the second license if the type of work that the
first license authorizes the contractor to perform is so closely related to
the type of work that the second license will authorize the contractor to
perform that both types of work are typically involved in a single
residential construction project. Provides that a city, town, or county
that requires a building permit for the construction of a Class 2
structure may provide for the inspection to be conducted by: (1) an
individual employed by the city, town, or county, or by another city,
town, or county, as a building inspector; (2) a registered architect; (3)
a registered professional engineer; (4) a certified building official; or
(5) a licensed home inspector.
HB 1329—LS 7018/DI 55HB 1329—LS 7018/DI 55 January 23, 2024
Second Regular Session of the 123rd General Assembly (2024)
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 2023 Regular Session of the General Assembly.
HOUSE BILL No. 1329
A BILL FOR AN ACT to amend the Indiana Code concerning local
government.
Be it enacted by the General Assembly of the State of Indiana:
1 SECTION 1. IC 13-21-3-12.2, AS AMENDED BY P.L.104-2022,
2 SECTION 87, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2024]: Sec. 12.2. (a) This section applies to a county having
4 a population of more than one hundred eighty thousand (180,000) and
5 less than one hundred eighty-five thousand (185,000).
6 (b) In addition to the powers granted to a district under section 12
7 of this chapter, a district may make grants or loans of money, property,
8 or services to the following:
9 (1) A public or private program to plant or maintain trees in an
10 area of the district that is a right-of-way, public property, or
11 vacant property.
12 (2) A political subdivision located in the district for the
13 purpose of repairing or maintaining municipal and county
14 public roadways located within one (1) mile of any landfill
15 located in the district.
HB 1329—LS 7018/DI 55 2
1 (3) A political subdivision located in the district for
2 emergency clean-up of trees and other debris resulting from
3 a natural disaster or other casualty.
4 SECTION 2. IC 32-21-5.2 IS ADDED TO THE INDIANA CODE
5 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
6 JULY 1, 2024]:
7 Chapter 5.2. Prohibition Against Mandated Inspection of a
8 Class 2 Structure or Residential Onsite Sewage System
9 Sec. 1. As used in this chapter, "Class 2 structure" has the
10 meaning set forth in IC 22-12-1-5.
11 Sec. 2. As used in this chapter, "governmental entity" means
12 any of the following:
13 (1) The state.
14 (2) A state agency.
15 (3) A political subdivision.
16 (4) A local building department.
17 Sec. 3. As used in this chapter, "local building department"
18 means, in any county, city, or town, the department, division,
19 agency, section, or office that enforces the Indiana building code
20 adopted by the fire prevention and building safety commission, as
21 required by IC 36-7-2-9(1).
22 Sec. 4. As used in this chapter, "political subdivision" means
23 any of the following:
24 (1) A county.
25 (2) A city, town, township, or special taxing district.
26 (3) A regional water, sewage, or solid waste district organized
27 under:
28 (A) IC 13-26; or
29 (B) IC 13-3-2 (before its repeal).
30 (4) A drainage board established by IC 36-9-27-4.
31 (5) A local public improvement bond bank established under
32 IC 5-1.4.
33 (6) A not-for-profit public water utility described in
34 IC 8-1-2-125(a).
35 (7) A conservancy district established under IC 14-33.
36 (8) A county onsite waste management district established
37 under IC 36-11.
38 (9) A drainage district established under IC 14-27-8.
39 Sec. 5. (a) As used in this chapter, "residential onsite sewage
40 system" means all equipment and devices necessary for proper
41 conduction, collection, storage, treatment, and onsite disposal of
42 sewage from:
HB 1329—LS 7018/DI 55 3
1 (1) a one (1) or two (2) family dwelling;
2 (2) a residential outbuilding; or
3 (3) two (2) single family dwellings located on the same
4 property with a combined design daily flow of less than or
5 equal to seven hundred fifty (750) gallons per day.
6 (b) The term includes residential sewers, septic tanks, soil
7 absorption systems, temporary sewage holding tanks, and sanitary
8 vault privies.
9 (c) The term does not include a nonresidential onsite sewage
10 system, as defined in IC 16-18-2-253.2.
11 Sec. 6. As used in this chapter, "state agency" means an
12 authority, board, branch, commission, committee, department,
13 division, or other instrumentality of the executive, including the
14 administrative, department of state government.
15 Sec. 7. A governmental entity shall not require that a Class 2
16 structure be inspected:
17 (1) in connection with, or as a condition of:
18 (A) the sale of; or
19 (B) the transfer of title to;
20 a Class 2 structure; or
21 (2) as a prerequisite to the recording of a deed to the property
22 containing a Class 2 structure.
23 Sec. 8. A governmental entity shall not require that a residential
24 onsite sewage system be inspected or tested:
25 (1) in connection with, or as a condition of:
26 (A) the sale of; or
27 (B) the transfer of title to;
28 a property containing the residential onsite sewage system; or
29 (2) as a prerequisite to the recording of a deed to the property
30 containing the residential onsite sewage system.
31 SECTION 3. IC 36-1-4-22, AS ADDED BY P.L.123-2019,
32 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
33 JULY 1, 2024]: Sec. 22. (a) As used in this section, "license bond"
34 refers to a surety bond required by a political subdivision as a condition
35 that the political subdivision issue a license or a permit to a person.
36 (b) If a political subdivision requires a person to post a license bond,
37 a surety bond posted by the person is considered sufficient if the
38 following conditions are satisfied:
39 (1) The bond is written by a surety company authorized to transact
40 business in Indiana.
41 (2) The obligation on the bond is for an amount that is at least the
42 amount required by the political subdivision for the issuance of
HB 1329—LS 7018/DI 55 4
1 the particular license or permit. A political subdivision may not
2 require the obligation on a license bond to be more than fifteen
3 thousand dollars ($15,000).
4 (3) The obligee or obligees named on the bond are any of the
5 following:
6 (A) The political subdivision that requires the license bond.
7 (B) Specifically named political subdivisions in the county that
8 include the name of the political subdivision that requires the
9 license bond.
10 (C) All political subdivisions in the county in which the
11 political subdivision that requires the license bond is located.
12 (D) All political subdivisions of the same kind as the political
13 subdivision that requires the license bond located in the
14 county.
15 (4) The conditions of the bond otherwise comply with the
16 requirements of the ordinance that imposes the license bond
17 condition.
18 (c) A person required to post a license bond satisfies the posting
19 requirement if the person files a copy of the license bond with the
20 political subdivision or appropriate agency of the political subdivision
21 that requires the license bond. A political subdivision may not require
22 that the person record the license bond. In addition, a political
23 subdivision may not impose any other requirement to identify the
24 particular political subdivision as an obligee on the license bond
25 other than what is required in subsection (b)(3).
26 (d) Nothing in this section may be construed to prohibit a
27 political subdivision from requiring a person to meet registration
28 requirements in order to ensure that the person meets professional
29 standards or qualifications necessary for the person to perform the
30 services for which the license bond is required.
31 (e) This subdivision does not apply to a person that has had a
32 license bond revoked by a political subdivision located in the same
33 county as the political subdivision that is named an obligee on the
34 licensee bond within one (1) year prior to date the political
35 subdivision refused to recognize the license bond that is subject to
36 this subsection. If a license bond meets the requirements described
37 in subsection (b) and a political subdivision that is named as an
38 obligee on the license bond in the manner provided in subsection
39 (b)(3) does not recognize or otherwise allow the obligor to post the
40 license bond to obtain a license or permit, the obligor may initiate
41 a civil action against the political subdivision. In a successful civil
42 action against the political subdivision, the court shall award the
HB 1329—LS 7018/DI 55 5
1 obligor an amount equal to:
2 (1) three hundred percent (300%) of the cost of obtaining the
3 license bond;
4 (2) damages compensating the obligor for the political
5 subdivision's failure to recognize or otherwise allow the
6 obligor to post the license bond; and
7 (3) reasonable attorney's fees.
8 SECTION 4. IC 36-1-4-22.1 IS ADDED TO THE INDIANA CODE
9 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
10 1, 2024]: Sec. 22.1. (a) As used in this section:
11 (1) "contractor" means a person that enters into a contract
12 requiring the person to perform one (1) or more tasks in a
13 residential construction project or a similar project;
14 (2) "license bond" refers to a surety bond required by a
15 political subdivision as a condition that the political
16 subdivision issue a license or a permit to a person;
17 (3) "political subdivision" includes an agency, office, or
18 department of the political subdivision; and
19 (4) "residential onsite sewage system" has the meaning set
20 forth in IC 16-41-25-0.4(a).
21 (b) If a contractor:
22 (1) has posted a license bond to obtain one (1) license or
23 registration from a political subdivision; and
24 (2) is required to obtain another license or registration from
25 the political subdivision to perform work that the contractor
26 intends to perform;
27 the contractor may not be required to post a second license bond
28 as a condition of obtaining the second license or registration if the
29 type of work that the first license or registration authorizes the
30 contractor to perform is so closely related to the type of work that
31 the second license or registration will authorize the contractor to
32 perform that both types of work are typically involved in a single
33 residential construction project.
34 (c) Under subsection (b), a contractor that has posted a license
35 bond to obtain an excavator's license or registration from a
36 political subdivision may not be required to post a second license
37 bond to obtain a license or registration from the political
38 subdivision as a residential onsite sewage system installer.
39 SECTION 5. IC 36-7-2-9.1 IS ADDED TO THE INDIANA CODE
40 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
41 1, 2024]: Sec. 9.1. (a) This section applies only to a Class 2 structure
42 for which a building permit is issued by a city, town, or county
HB 1329—LS 7018/DI 55 6
1 after June 30, 2024.
2 (b) This section does not apply to:
3 (1) a manufactured housing community; or
4 (2) a mobile home community;
5 that is licensed, permitted, and inspected by the Indiana
6 department of health or a local board of health.
7 (c) As used in this section, "Class 2 structure" has the meaning
8 set forth in IC 22-12-1-5.
9 (d) A city, town, or county that requires a building permit for
10 the construction of a Class 2 structure may provide for the
11 inspection to be conducted by:
12 (1) an individual who is employed by the city, town, or county
13 as a building inspector;
14 (2) an individual who is employed by another city, town, or
15 county as a building inspector; or
16 (3) a qualified individual who is:
17 (A) an architect registered under IC 25-4-1;
18 (B) a professional engineer registered under IC 25-31-1;
19 (C) a certified building official; or
20 (D) a home inspector licensed under IC 25-20.2.
HB 1329—LS 7018/DI 55 7
COMMITTEE REPORT
Mr. Speaker: Your Committee on Local Government, to which was
referred House Bill 1329, has had the same under consideration and
begs leave to report the same back to the House with the
recommendation that said bill be amended as follows:
Page 4, between lines 25 and 26, begin a new paragraph and insert:
"(d) Nothing in this section may be construed to prohibit a
political subdivision from requiring a person to meet registration
requirements in order to ensure that the person meets professional
standards or qualifications necessary for the person to perform the
services for which the license bond is required.".
Page 4, line 26, delete "(d)" and insert "(e) This subdivision does
not apply to a person that has had a license bond revoked by a
political subdivision located in the same county as the political
subdivision that is named an obligee on the licensee bond within
one (1) year prior to date the political subdivision refused to
recognize the license bond that is subject to this subsection.".
Page 6, line 1, delete "preceding the issuance or denial of the
building permit".
and when so amended that said bill do pass.
(Reference is to HB 1329 as introduced.)
MAY
Committee Vote: yeas 8, nays 2.
HB 1329—LS 7018/DI 55