LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
200 W. Washington St., Suite 301
Indianapolis, IN 46204
(317) 233-0696
iga.in.gov
FISCAL IMPACT STATEMENT
LS 6938 NOTE PREPARED: Jan 3, 2024
BILL NUMBER: SB 277 BILL AMENDED:
SUBJECT: Residential Landlord-Tenant Matters.
FIRST AUTHOR: Sen. Walker G BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
XDEDICATED
FEDERAL
Summary of Legislation: This bill has the following provisions:
(1)It provides that the court may appoint a receiver upon request by a county, city, or town when the property
owner of a multifamily residential property with more than four dwelling units has failed to pay damages,
costs, or attorney's fees that have been incurred by the multifamily residential property in a nuisance action
brought by the county, city, or town.
(2)It allows a city, county, or town to bring a nuisance action against a tenant or other person responsible for
a nuisance.
(3) It defines "essential services" as certain utility services needed for the safe and habitable occupation by
a tenant of the tenant's rental unit and "essential systems" as certain systems used to deliver essential services
to a rental unit.
(4) It requires a landlord to provide and maintain a rental premises that is free from the following: (1) Pests,
including rodents and invasive insects. (2) Mold. (3) Rot.
(5) It sets forth a procedure for a tenant to use to initiate a request for repairs.
(6) It requires a landlord to repair or replace an essential system not later than 72 hours after being notified
by a tenant that the tenant's rental unit is without essential services under certain circumstances.
(7) It allows for certain remedies to the tenant for the landlord's noncompliance, including a procedure for
the deposit of rent that is due with the clerk of the court if the landlord fails or refuses to make repairs or take
remedial action.
(8)It provides that, during the pendency of a court action brought by a tenant, the court may order the tenant
to make the regular rental payments otherwise due under the rental agreement to the clerk of the court or an
attorney trust account, to be held in trust for disbursal to the prevailing party, as ordered by the court.
(9)It provides that a landlord may apply for release of rent deposits.
SB 277 1 Landlord’s Required Nexus: The bill also provides that, after June 30, 2024, a landlord may not manage a
rental property in Indiana unless the landlord: (1) is authorized to do business in Indiana; (2) maintains an
office at one or more physical locations in Indiana; or (3) appoints an Indiana licensed real estate broker or
broker company to manage the rental property.
This bill also makes conforming changes.
Effective Date: July 1, 2024.
Explanation of State Expenditures: Office of Attorney General: The bill provides that a violation of the
provision requiring landlords to provide and maintain essential services is a deceptive act. Deceptive acts
are actionable by either the Attorney General or the consumer. This may lead to a minor administrative
workload increase for the Attorney General.
Explanation of State Revenues: Deceptive Acts: This bill may increase revenue to the state General Fund
from civil penalties if the number of deceptive acts also increases. Under current law, a deceptive act is
punishable with a civil penalty of $500 per violation. Knowingly committing a deceptive act is punishable
with a civil penalty of $5,000 per violation. Actual increases in revenue are indeterminable.
Court Fee Revenue: If additional civil cases occur and court fees are collected, revenue to the state General
Fund will increase. The total revenue per case would range between $100 and $122. The amount deposited
will vary depending on whether the case is filed in a court of record or a municipal court. The following
linked document describes the fees and distribution of the revenue: Court fees imposed in civil, probate, and
small claims cases.
Explanation of Local Expenditures: County, Cities, and Towns: The proposed language allows a prevailing
county, city, or town to recover costs related to filing a civil action to enjoin or abate a property nuisance.
These costs may include attorney’s fees incurred in bringing the action. This may lead to an increase in both
the administrative workload and fiscal costs for the applicable local unit of government should it decide to
pursue filing a civil action to enjoin or abate a property nuisance; however, the fiscal costs would be
recoverable assuming that local unit prevails in the civil action.
The bill also expands instances where a court can appoint a receiver for unpaid damages, costs, or attorney’s
fees incurred by the property owner of a multifamily residential property as a result of nuisance action
brought against the property owner by the county or municipality. A receiver is a court-appointed officer who
is given custody of specified assets with directions to liquidate the asset(s) and distribute the proceeds. The
cost of these services are paid for from proceeds from the liquidation of the asset(s).
Courts: The proposed language may result in an increased administrative workload for county clerks since
tenants whose claims are pending resolution may be ordered by the court to make regular rental payments
to the clerk of the court, who shall hold the payments in a trust.
Explanation of Local Revenues: Court Fee Revenue: If additional cases occur, revenue will be collected
by certain local units. If the case is filed in a court of record, the county will receive $32 and qualifying
municipalities will receive a share of $3. If the case is filed in a municipal court, the county receives $20,
and the municipality will receive $37. The following linked document describes the fees and distribution of
the revenue: Court fees imposed in civil, probate, and small claims cases.
SB 277 2 State Agencies Affected: Office of Attorney General.
Local Agencies Affected: Counties, cities, and towns; Trial courts, city and town courts.
Information Sources: Indiana Supreme Court, Indiana Trial Court Fee Manual.
Fiscal Analyst: James Johnson, 317-232-9869.
SB 277 3