First Regular Session of the 124th General Assembly (2025)
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 2024 Regular Session of the General Assembly.
HOUSE ENROLLED ACT No. 1005
AN ACT to amend the Indiana Code concerning state and local
administration.
Be it enacted by the General Assembly of the State of Indiana:
SECTION 1. IC 5-1.2-15.5-14, AS AMENDED BY P.L.90-2024,
SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 14. (a) The authority shall develop and use a
priority ranking system in making loans from the fund.
(b) The ranking system must prioritize making loans for eligible
projects to participants that have adopted and implemented a
majority of the following policies for residential housing:
(1) Have:
(A) invested in a housing study within the last five (5) years;
(B) had a housing study performed by a region's local
economic development organization; or
(C) demonstrated the need for housing inventory as indicated
by the Indiana state housing dashboard.
(2) Have voluntarily revised unified development ordinances,
zoning regulations, or other land development rules to allow for:
(A) higher density development of duplexes, triplexes, and
fourplexes in areas designated for single family homes;
(B) construction of other housing types including accessory
dwelling units and manufactured and modular housing;
(C) adaptive reuse of commercial buildings for residential use
such as allowing multifamily development in retail, office,
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and light manufacturing zones; or
(D) increasing the allowable floor area ratio in multifamily
housing areas; or
(D) (E) waiver or elimination of regulations such as
requirements for:
(i) garage size and placement;
(ii) steeper roof pitch;
(iii) minimum lot size and square footage;
(iv) greater setbacks;
(v) off-street parking; or
(vi) design standards that restrict or prohibit the use of code
compliant products; or
(vii) property height limitations.
(3) Have streamlined or shortened the permitting processes
and timelines, including through one stop and parallel process
permitting.
(3) (4) Do not have impact fee ordinances.
(4) (5) Have secured private, local, state, or federal funds to
contribute to the eligible project.
(5) (6) Have secured a letter of support from an employer
stipulating that the public infrastructure will support residential
housing that is in reasonable proximity to employment. or
(6) (7) Assist homeowners to age in place through restoration or
renovation of existing homes.
(8) Have established density bonuses.
(9) Use property tax abatements to enable higher density and
mixed income communities.
(10) Have donated vacant land for affordable housing
development.
SECTION 2. IC 34-30-2.1-583.7 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2026]: Sec. 583.7. IC 36-7-2.5-34
(Concerning immunity of a unit and employees for building plan
reviews and inspection services by private providers).
SECTION 3. IC 36-7-2-9.1, AS ADDED BY P.L.157-2024,
SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2026]: Sec. 9.1. (a) This section applies only to a Class
2 structure for which a building permit is issued by a city, town, or
county after June 30, 2024.
(b) (a) This section does not apply to:
(1) a manufactured housing community; or
(2) a mobile home community;
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that is licensed, permitted, and inspected by the Indiana department of
health or a local board of health.
(b) This section applies only to a city, town, or county that
requires a building permit, plan review, or inspection for the
construction of a Class 2 structure.
(c) As used in this section, "Class 2 structure" has the meaning set
forth in IC 22-12-1-5.
(d) A city, town, or county that requires a building permit for the
construction of a Class 2 structure, may provide for shall allow the
plan review or inspection to be conducted by the following:
(1) An individual who is employed by the city, town, or county as
a building inspector.
(2) An individual who is employed by another city, town, or
county as a building inspector. or
(3) A qualified individual private provider who is:
(A) an architect registered under IC 25-4-1;
(B) a professional engineer registered under IC 25-31-1; or
(C) a certified building official (as defined in IC 36-7-2.5-3).
or
(D) a home inspector licensed under IC 25-20.2.
(e) An applicant for a building permit may choose to have a
private provider under subsection (d)(3) conduct the plan review
or inspection as provided in IC 36-7-2.5.
SECTION 4. IC 36-7-2.5 IS ADDED TO THE INDIANA CODE
AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2026]:
Chapter 2.5. Class 2 Structure Building Permits
Sec. 1. This chapter only applies to a unit that requires for a
Class 2 structure:
(1) issuance of a permit;
(2) submission of construction documents or plans;
(3) performance of a plan review;
(4) performance of an inspection;
(5) issuance of a certificate of occupancy;
(6) submission of a certificate of completion and compliance;
or
(7) any combination of the actions in subdivisions (1) through
(6).
Sec. 2. As used in this chapter, "applicant" means a person who
applies for a permit.
Sec. 3. As used in this chapter, "application" means an
application for a permit to conduct construction related activities
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involving a Class 2 structure.
Sec. 4. As used in this chapter, "certified building official"
means a person certified by the International Code Council as
qualified to inspect and determine compliance of a Class 2
structure with the Indiana residential code (675 IAC 14).
Sec. 5. As used in this chapter, "Class 2 structure" has the
meaning set forth in IC 22-12-1-5.
Sec. 6. As used in this chapter, "construction documents or
plans" means written, graphic, and pictorial documents prepared
or assembled for describing the design, location, and physical
characteristics of the elements of a project necessary for obtaining
a building permit. The term includes construction drawings drawn
to an appropriate scale.
Sec. 7. As used in this chapter, "local requirements" means any
local regulatory requirements imposed by a unit for approval of an
application, including any requirements of:
(1) state building codes;
(2) local ordinances, zoning ordinances, and design standards;
and
(3) other applicable state and local laws, regulations, and
ordinances.
Sec. 8. As used in this chapter, "permit" means the following:
(1) An improvement location permit.
(2) A building permit.
(3) A certificate of occupancy.
(4) A certificate of completion and compliance.
Sec. 9. As used in this chapter, "private provider" means a
person who:
(1) is:
(A) an architect registered under IC 25-4-1;
(B) a professional engineer registered under IC 25-31-1; or
(C) a certified building official;
(2) is not:
(A) an employee of;
(B) affiliated with; or
(C) financially interested in;
the person, firm, or corporation engaged in the project to be
reviewed or inspected; and
(3) is not an employee of a unit.
Sec. 10. As used in this chapter, "regulatory fee" means a
payment:
(1) designated as a permit fee, application fee, inspection fee,
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impact fee, or by another name; and
(2) that a unit requires in regulating construction related
activities of Class 2 structures.
Sec. 11. As used in this chapter, "unit" means a county, city, or
town.
Sec. 12. A unit must comply with this chapter in issuing a
permit.
Sec. 13. A unit shall provide an applicant with a schedule of the
requirements for applying for and obtaining a permit, including
the following:
(1) A list of any plan reviews or inspections that are required
by the unit. The schedule must state that an applicant:
(A) may use:
(i) the unit to conduct any plan review or inspection; or
(ii) a private provider to conduct any plan review or
inspection; and
(B) must indicate on the application whether the applicant
will use a private provider.
(2) The timeline set forth in this chapter for notifications and
submission of documents.
(3) Any regulatory fees charged by the unit.
(4) All of the requirements for a complete application. The
schedule must specify any documents that must accompany
the application, including any prior approvals or permits for:
(A) zoning;
(B) drainage;
(C) sewer or septic;
(D) wells;
(E) driveways; or
(F) flood control;
that the applicant must obtain before applying for the permit.
(5) If a private provider is used to conduct a plan review or
inspection, a copy of the private provider's certificate of
insurance indicating that the private provider satisfies the
coverage amounts set forth in section 26 of this chapter.
Sec. 14. An application is complete if the application includes
the information and supporting documents set forth in the unit's
schedule under section 13 of this chapter.
Sec. 15. Except as provided in section 16 of this chapter, a unit
shall deliver all notices under this chapter in an electronic format
that provides for verification or acknowledgment of receipt of the
notice.
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Sec. 16. (a) This subsection applies only to the notice provided
by the unit under this section. If the unit transmits a notice to the
applicant and does not receive an electronic verification or
acknowledgment of receipt of the notice within three business (3)
days after the date the notice is transmitted, the unit shall send the
applicant a paper copy of the notice on the next business day by
United States mail.
(b) The unit has not more than three (3) business days after
receiving an application to notify the applicant regarding whether
the application is complete or incomplete.
(c) If the applicant is notified that the application is incomplete:
(1) the unit must identify in the notice any deficiencies in the
application;
(2) the applicant may submit application revisions in an
electronic or paper format; and
(3) the unit has three (3) business days after receiving the
revisions to notify the applicant whether the application is
complete or incomplete.
(d) If the applicant:
(1) submits revisions to the application; and
(2) is notified by the unit:
(A) that the application is still incomplete; and
(B) of the application's deficiencies;
the process of the applicant submitting revisions and the unit
providing notification as to the completeness of the application
within the time set forth in subsection (b) applies until the unit
notifies the applicant that the application is complete.
Sec. 17. If:
(1) the unit notifies an applicant in writing that the
application is complete; and
(2) a plan review is required by the unit;
the unit must complete the plan review not more than seven (7)
business days after the date that notice is sent.
Sec. 18. A unit must include in the notification of complete
application under section 17 of this chapter a statement as to
whether the unit is able to conduct:
(1) a plan review (if required by the unit) not later than seven
(7) business days after the date that notice is sent; and
(2) inspection services not later than three (3) business days
after receiving a written request for inspection.
Sec. 19. An applicant may use a private provider to perform a
plan review, an inspection, or both, regardless of whether the unit
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is able to conduct the activity or activities within the time set forth
in section 18 of this chapter. The cost of any plan review or
inspection performed by a private provider is at the applicant's
own expense. The unit may also charge the applicant a convenience
fee as provided in section 20 of this chapter.
Sec. 20. If:
(1) an applicant indicates on the application that the unit will
perform the plan review or inspection;
(2) the unit notifies the applicant under section 18 of this
chapter that the unit is unable to perform a plan review or
inspection within the time required; and
(3) the applicant elects instead to use a private provider to
perform the plan review or inspection;
the unit shall refund any fees the applicant paid to the unit for a
plan review or inspection. However, the unit may withhold from
the refund or charge the applicant a convenience fee of not more
than one hundred dollars ($100).
Sec. 21. If a unit:
(1) notifies the applicant that a plan review can be performed
within:
(A) the time set forth in section 18 of this chapter; or
(B) any extension period mutually agreed to by the
applicant and the unit; and
(2) fails to complete the plan review within the time stated in
subdivision (1);
the unit shall issue a permit or a limited permit under section 22 of
this chapter to the applicant not later than the next business day.
Sec. 22. The unit may limit:
(1) the scope of a permit issued under section 21 of this
chapter; and
(2) the areas of the site to which a permit may apply.
However, the unit shall allow the applicant to begin work on the
project if that portion of the initial phase of work is compliant with
applicable codes, laws, and rules.
Sec. 23. This section does not apply if the applicant uses a
private provider to perform the plan review. Any delay in the
processing of an application:
(1) attributable to a cause outside the control of the unit; or
(2) through the fault of the applicant;
does not count toward the time set forth in section 18 of this
chapter.
Sec. 24. A private provider must conduct a plan review or an
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inspection that is at least as extensive as a plan review or inspection
conducted by the unit.
Sec. 25. Upon completing a plan review, a private provider shall
prepare an affidavit certifying under oath that all of the following
are true and correct to the best of the private provider's knowledge
and belief and in accordance with the applicable professional
standard of care:
(1) The plans were reviewed by the affiant who:
(A) is duly authorized to perform plan review under this
chapter; and
(B) holds the:
(i) appropriate registration or certification; and
(ii) insurance coverage stipulated in this chapter.
(2) The plans comply with all applicable local requirements.
(3) The plans submitted for plan review:
(A) are in conformity with plans previously submitted to
obtain governmental approvals required in the plan
submittal process; and
(B) do not make a change to the project reviewed for the
approvals.
Sec. 26. (a) A private provider providing plan review or
inspection services must maintain insurance coverage for
professional liability insurance of at least:
(1) one million dollars ($1,000,000) per claim; and
(2) two million dollars ($2,000,000) of aggregate coverage.
(b) A complete application must include a copy of the private
provider's certificate of insurance indicating the coverage amounts
set forth in subsection (a).
Sec. 27. A private provider's insurance must be a practice policy
containing prior acts coverage for the private provider.
Sec. 28. (a) Subject to subsection (b), a private provider may
perform any plan review or inspection required by the unit,
including:
(1) inspections for footings, foundations, concrete slabs,
framing, electrical, plumbing, heating, ventilation, and air
conditioning; or
(2) any other inspection necessary or required:
(A) to determine compliance with regulatory
requirements; and
(B) for the issuance of a:
(i) building permit; or
(ii) certificate of occupancy;
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by the unit.
(b) A private provider may perform a plan review or inspection
that is only:
(1) within the scope of the private provider's area of
competency; and
(2) if the private provider is a certified building official,
within an area for which the certified building official has
been issued a certification, license, or completion of training.
Sec. 29. Nothing in this chapter authorizes a private provider to
issue a building permit, improvement permit, certificate of
occupancy, or any other permit or approval.
Sec. 30. (a) A private provider shall submit a copy of the private
provider's plan review report to the unit not later than five (5) days
after the plan review report is completed. The plan review report
may be submitted in a paper format or an electronic format.
(b) A plan review report must include at least the following:
(1) The private provider's affidavit required under section 25
of this chapter.
(2) Any applicable fees.
(3) Any documents:
(A) required by the unit; and
(B) necessary to determine that the permit applicant has
secured all other governmental approvals required by law.
Sec. 31. The unit shall issue a permit not later than the next
business day after receiving a complete plan review report from
the private provider.
Sec. 32. When a private provider submits a complete inspection
report is submitted to the unit, the unit shall accept the private
provider's inspection report without further inspection or approval
by:
(1) the inspectors; or
(2) other personnel employed by the unit.
Sec. 33. Nothing in this chapter shall be construed to limit any
public or private right of action designed to provide protection,
rights, or remedies for consumers.
Sec. 34. The unit and agents of the unit shall be immune from
liability:
(1) to any person or party; and
(2) for any action or inaction by:
(A) an owner of a building; or
(B) a private provider or a private provider's duly
authorized representative;
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in connection with plan review and inspection services performed
by private providers.
Sec. 35. (a) A unit may not adopt or enforce any rules,
procedures, policies, qualifications, or standards more stringent
than those prescribed in this chapter.
(b) A unit may not require a design professional (as defined in
IC 22-15-3.2-3) to prepare construction documents, plans, or other
filings for a Class 2 structure as part of an application under this
chapter when constructed as prescribed by 675 IAC 14-4.4 or a
most recent published edition of the International Residential
Code.
(c) A unit may require a design professional (as defined in
IC 22-15-3.2-3) to prepare construction documents, plans, or other
filings for a Class 2 structure as evidence or proof of equivalence
of proposed alternate materials, appliances, equipment, or method
of design or construction and once provided shall be permitted by
the unit as an alternate.
Sec. 36. Nothing in this chapter limits a unit from issuing a stop
work order for a building project or any portion of a building
project:
(1) that may be effective immediately as provided by law,
after giving notice and adequate opportunity to remedy the
violation; and
(2) if the unit determines that a condition on the building site
constitutes an immediate threat to public safety and welfare.
A stop work order issued for reasons of immediate threat to public
safety and welfare may be appealed as provided by law.
Sec. 37. When performing plan reviews or inspection services,
a private provider is subject to the disciplinary guidelines of the
private provider's professional licensing board. Any complaint
processing, investigation, and discipline arising out of a private
provider's performance of plan reviews or inspection services shall
be conducted by the private provider's professional licensing
board.
Sec. 38. To the extent that a provision of this chapter conflicts
with requirements of federal laws or regulations, or impairs a
unit's receipt of federal funds, the provision shall not apply.
SECTION 5. IC 36-7-4-1109, AS AMENDED BY P.L.125-2019,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2026]: Sec. 1109. (a) As used in this section, "local
governmental agency" includes any agency, officer, board, or
commission of a local unit of government that may issue:
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(1) a permit; or
(2) an approval of a land use or an approval for the construction
of a development, a building, or another structure.
(b) As used in this section, "permit" means any of the following:
(1) An improvement location permit.
(2) A building permit.
(3) A certificate of occupancy.
(4) Approval of a site-specific development plan.
(5) Approval of a primary or secondary plat.
(6) Approval of a contingent use, conditional use, special
exception or special use.
(7) Approval of a planned unit development.
(c) If a person files a complete application as required by the
effective ordinances or rules of a local unit of government or a local
governmental agency for a permit with the appropriate local
governmental agency, the granting of the permit, and the granting of
any secondary, additional, or related permits or approvals required
from the same local governmental agency with respect to the general
subject matter of the application for the first permit, are governed for
at least three (3) years after the person applies for the permit by the
statutes, ordinances, rules, development standards, and regulations in
effect and applicable to the property when the application is filed, even
if before the issuance of the permit or while the permit approval
process is pending, or before the issuance of any secondary, additional,
or related permits or approvals or while the secondary, additional, or
related permit or approval process is pending, the statutes, ordinances,
rules, development standards, or regulations governing the granting of
the permit or approval are changed by the general assembly or the
applicable local legislative body or regulatory body, regardless of
whether such changes in the statutes, ordinances, rules, development
standards, or regulations are part of a zoning ordinance, a subdivision
control ordinance, or a statute, ordinance, or regulation that is based on
the general police powers of the local unit of government. However,
this subsection does not apply if the development or other activity to
which the permit relates is not completed within ten (10) years after the
development or activity is commenced.
(d) Subsection (e) applies if:
(1) either:
(A) a local governmental agency issues to a person a permit or
grants a person approval for the construction of a
development, a building, or another structure; or
(B) a permit or approval is not required from the local
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governmental agency for the construction of the development,
building, or structure;
(2) before beginning the construction of the development,
building, or structure, the person must obtain a permit or approval
for the construction of the development, building, or structure
from a state governmental agency; and
(3) the person has applied for the permit or requested the approval
for the construction of the development, building, or structure
from the state governmental agency within ninety (90) days of
issuance of the permit by the local governmental agency.
(e) Subject to subsection (f), if the conditions of subsection (d) are
satisfied:
(1) a permit or approval issued or granted to a person by the local
governmental agency for the construction of the development,
building, or structure; or
(2) the person's right to construct the development, building, or
structure without a permit or approval from the local
governmental agency;
is governed for at least three (3) years after the person applies for the
permit by the statutes, ordinances, rules, development standards,
regulations, and approvals in effect and applicable to the property when
the person applies for the permit or requests approval from the state
governmental agency for the construction of the development, building,
or structure, even if before the commencement of the construction or
while the permit application or approval request is pending with the
state governmental agency the statutes governing the granting of the
permit or approval from the local governmental agency are changed by
the general assembly or the ordinances, rules, development standards,
or regulations of the local unit of government or the local governmental
agency are changed by the applicable local legislative body or
regulatory body, regardless of whether such changes in the statutes,
ordinances, rules, development standards, or regulations are part of a
zoning ordinance, a subdivision control ordinance, or a statute,
ordinance, or regulation that is based on the general police powers of
the local unit of government. However, this subsection does not apply
if the development or other activity to which the permit or approval
request relates is not completed within ten (10) years after the
development or activity is commenced.
(f) Subsection (d) does not apply to property when it is
demonstrated by the local or state governmental agency that the
construction of the development, building, or structure would cause
imminent peril to life or property.
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(g) This section does not apply to building codes under IC 22-13.
(h) The following provision is considered to be included in any
regulation adopted under section 601(d)(2)(B) of this chapter that sets
forth requirements for signs:
"The owner of any sign that is otherwise allowed by this
regulation may substitute noncommercial copy in place of any
other commercial or noncommercial copy. This substitution of
copy may be made without the issuance of any additional permit
by a local government agency. The purpose of this provision is to
prevent any inadvertent favoring of commercial speech over
noncommercial speech, or the favoring of any particular
noncommercial message over any other noncommercial message.
This provision prevails over any more specific provision in this
regulation to the contrary.".
(i) Notwithstanding any other law, This subsection does not apply
to a permit to which IC 36-7-2.5 applies. A local governmental
agency must, not later than twelve (12) business days after a person has
filed a complete application for a permit for which approval is
ministerial under IC 36-7-4-402 or an improvement location permit
issued under the 800 series of this chapter and meets all conditions
required under this chapter and any other statute, issue the permit to the
person.
HEA 1005 — Concur Speaker of the House of Representatives
President of the Senate
President Pro Tempore
Governor of the State of Indiana
Date: Time:
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