Introduced Version
HOUSE BILL No. 1373
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 32-31-12.5; IC 33-32; IC 33-37-5-35.
Synopsis: Rent escrow. Establishes a procedure permitting a tenant to
withhold rent from a landlord and deposit it with a court if the landlord
does not fulfill the landlord's obligations or fails to remedy a violation
of an ordinance, rule, code, or other law, and the violation may
materially affect the health or safety of the tenant.
Effective: July 1, 2025.
Boy, Errington
January 13, 2025, read first time and referred to Committee on Judiciary.
2025 IN 1373—LS 7500/DI 137 Introduced
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 BILL No. 1373
A BILL FOR AN ACT to amend the Indiana Code concerning
property.
Be it enacted by the General Assembly of the State of Indiana:
1 SECTION 1. IC 32-31-12.5 IS ADDED TO THE INDIANA CODE
2 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2025]:
4 Chapter 12.5. Tenant's Right to Escrow Rent
5 Sec. 1. This chapter does not apply to a tenant who is not
6 current on the tenant's rent payments due under a rental
7 agreement.
8 Sec. 2. The definitions in IC 32-31-3 apply to this chapter.
9 Sec. 3. If:
10 (1) a landlord does not fulfill the landlord's obligations
11 under IC 32-31-8-5; or
12 (2) a governmental agency has found that a rental unit is
13 in violation of a code, rule, ordinance, or other law, and the
14 violation may materially affect the health or safety of the
15 tenant;
16 the tenant may obtain relief as described in this chapter.
17 Sec. 4. (a) If a tenant has a reasonable belief that a landlord has
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1 violated an obligation under IC 32-31-8-5, the tenant shall notify
2 the landlord of the violation in writing, specifically describing the
3 violation.
4 (b) If a governmental agency makes a finding that a rental unit
5 is in violation of law under section 3(2) of this chapter, the
6 governmental agency shall notify the landlord of the violation in
7 writing, specifically describing the violation. The governmental
8 agency shall provide the tenant with a copy of the notice provided
9 to the landlord.
10 Sec. 5. If the landlord does not remedy the violation within the
11 earlier of:
12 (1) thirty (30) days; or
13 (2) a deadline provided by a governmental agency in a notice
14 under section 4(b) of this chapter;
15 the tenant may seek a remedy described in section 6 of this chapter.
16 Sec. 6. If, after receiving a notice under section 4 of this chapter,
17 the landlord fails to remedy the violation within the time frame
18 described in section 5 of this chapter, the tenant may do one (1) or
19 more of the following:
20 (1) Deposit all rent that is due, and that becomes due, with the
21 clerk of the circuit court in the county in which the rental
22 property is located. If a tenant deposits rent under this
23 subdivision, the tenant shall inform the clerk in writing of the
24 name and address of the landlord.
25 (2) Request a circuit or superior court in the county in which
26 the rental property is located to issue one (1) or more of the
27 following orders:
28 (A) An order requiring the landlord to remedy the
29 violation described in section 3 of this chapter.
30 (B) An order authorizing the tenant to deposit rent with
31 the clerk of the circuit court, as described in subdivision
32 (1).
33 (C) An order reducing the rent due to the landlord until
34 the landlord remediates the violation.
35 (D) An order authorizing the tenant to use the rent
36 deposited with the clerk of the circuit court to remediate
37 the violation.
38 As part of any order issued under this subdivision, the court
39 may order the tenant to deposit rent with the clerk of the
40 circuit court as described in subdivision (1).
41 (3) An order to terminate the rental agreement.
42 Sec. 7. A landlord who receives notice that a tenant has
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1 deposited rent due to the landlord with the clerk of the circuit
2 court may do one (1) or more of the following:
3 (1) Obtain release of the rent after the tenant provides written
4 notice to the clerk that the violation has been remedied.
5 (2) File an action requesting the court to order the clerk to
6 release the rent on the basis that:
7 (A) the landlord did not receive notice from the tenant or
8 a governmental agency as required under section 4 of this
9 chapter; or
10 (B) the tenant deposited the rent before the time set forth
11 in section 5 of this chapter.
12 (3) File an action requesting the court to order the clerk to
13 release the rent on the basis that:
14 (A) a violation described in section 3 of this chapter does
15 not exist;
16 (B) the landlord has remedied the violation; or
17 (C) the violation was the result of an act or omission of the
18 tenant.
19 Sec. 8. (a) The landlord shall name the tenant as a party in an
20 action described in section 7 of this chapter.
21 (b) The court shall set the matter for trial not later than sixty
22 (60) days after the action is filed, unless, for good cause shown, the
23 court extends the time period.
24 Sec. 9. If the court finds that the landlord is entitled to relief
25 under this chapter, the court shall order the clerk to release the
26 rent to the landlord.
27 Sec. 10. (a) If a landlord files an action under section 7 of this
28 chapter, the landlord may additionally request that the court order
29 the release, while the action is pending, of a portion of the rent
30 necessary to pay the ongoing and usual expenses of operating the
31 rental unit, such as:
32 (1) the mortgage or other loan payment for the rental
33 premises;
34 (2) insurance for the rental premises;
35 (3) property taxes on the rental premises;
36 (4) utility costs for the rental premises; and
37 (5) repair expenses for the rental premises.
38 (b) In determining whether to release rent for the purposes
39 described in subsection (a), the court shall consider:
40 (1) the amount of rent the landlord receives from other rental
41 units in the same building as the tenant's rental unit;
42 (2) the cost of operating other rental units in the tenant's
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1 building;
2 (3) the cost required to remedy the violation that is the basis
3 for the withheld rent; and
4 (4) any other relevant factor.
5 Sec. 11. A landlord may not file an action to evict a tenant from
6 a rental unit:
7 (1) within thirty (30) days of any action taken by the tenant
8 under section 6 of this chapter; or
9 (2) during the pendency of an action filed by the landlord
10 under section 7 of this chapter.
11 SECTION 2. IC 33-32-2-12 IS ADDED TO THE INDIANA CODE
12 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
13 1, 2025]: Sec. 12. (a) The clerk shall carry out the duties described
14 in IC 32-31-12.5 concerning rent deposited by a tenant.
15 (b) Whenever a tenant deposits rent with the clerk under
16 IC 32-31-12.5, the clerk shall give written notice of the deposit, the
17 amount of the deposit, and the tenant's name to the landlord.
18 (c) The clerk shall deposit withheld rent received under this
19 section in accordance with IC 33-37-5-35.
20 (d) The clerk shall record in the judgment docket an account of
21 each deposit, including the amount of each deposit and the name
22 and address of the:
23 (1) tenant; and
24 (2) landlord.
25 SECTION 3. IC 33-32-3-2, AS AMENDED BY P.L.55-2015,
26 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
27 JULY 1, 2025]: Sec. 2. (a) The clerk:
28 (1) shall keep:
29 (A) a circuit court judgment docket; and
30 (B) a judgment docket for each court served by the clerk under
31 IC 33-32-2-1; and
32 (2) is the official keeper of:
33 (A) the circuit court judgment docket; and
34 (B) the judgment docket for each court served by the clerk
35 under IC 33-32-2-1.
36 (b) A judgment docket described in subsection (a):
37 (1) must contain:
38 (A) all civil judgments in which one (1) party owes money to
39 another party, including any court costs awarded to a judgment
40 creditor; and
41 (B) any entry that is required by a statute; and
42 (2) may not include:
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1 (A) judgments in which money is owed by a person to a state,
2 a county, or another governmental entity as a result of:
3 (i) a criminal conviction; or
4 (ii) a violation of an infraction or ordinance; or
5 (B) judgments in which the state, a county, or another
6 governmental entity is the sole creditor, except for:
7 (i) cases in which the state obtains a judgment for unpaid
8 taxes; or
9 (ii) any entry that is required by statute.
10 (c) The clerk may keep a judgment docket in:
11 (1) an electronic format;
12 (2) a paper format; or
13 (3) both an electronic and a paper format.
14 (d) Upon the filing in the office of the clerk a statement or transcript
15 of any judgment for the recovery of money or costs, the clerk shall
16 enter, and index in alphabetical order, in this judgment docket a
17 statement of the judgment showing the following:
18 (1) The names of all the parties.
19 (2) The name of the court.
20 (3) The number of the cause.
21 (4) The book and page of the record in which the judgment is
22 recorded.
23 (5) The date the judgment is entered and indexed.
24 (6) The date of the rendition of judgment.
25 (7) The amount of the judgment and the amount of costs.
26 (e) If a judgment is against several persons, the statement required
27 to be entered under subsection (d) shall be repeated under the name of
28 each judgment debtor in alphabetical order.
29 (f) A person interested in any judgment for money or costs that has
30 been rendered by any state court, or by any federal court of general
31 original jurisdiction sitting in Indiana, may have the judgment entered
32 upon the circuit court judgment docket by filing with the clerk:
33 (1) a verified statement setting forth the facts required under
34 subsection (d); or
35 (2) a verified copy of the judgment certified under the seal of the
36 court that rendered the judgment.
37 (g) The judgment docket shall be made available for public
38 inspection at the office of the clerk during regular office hours. If a
39 judgment docket is kept in an electronic format:
40 (1) the judgment docket must be searchable; and
41 (2) a member of the public must be able to:
42 (A) search the judgment docket for the name of a specific
2025 IN 1373—LS 7500/DI 137 6
1 party; and
2 (B) obtain a list of all judgments in the judgment docket
3 concerning the party.
4 (h) If the wages of a judgment debtor are being garnished, a clerk is
5 not required to notify the employer of the judgment debtor to suspend
6 the garnishment after the judgment is satisfied. A request to suspend
7 the garnishment must be submitted by the judgment debtor to the court
8 that rendered the judgment. The clerk is not required to take any action
9 under this subsection concerning a garnishment other than to obey the
10 orders of the court that rendered the judgment.
11 (i) If a tenant deposits withheld rent with the clerk under
12 IC 32-31-12.5, the clerk shall include in this judgment docket a
13 separate account of each deposit, including the amount of each
14 deposit and the name and address of the:
15 (1) tenant; and
16 (2) landlord.
17 SECTION 4. IC 33-37-5-35 IS ADDED TO THE INDIANA CODE
18 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
19 1, 2025]: Sec. 35. (a) Each clerk shall establish a rental escrow
20 fund. The clerk shall deposit in the fund withheld rent deposited
21 with the clerk by a tenant under IC 32-31-12.5.
22 (b) The clerk shall disburse money from the fund in accordance
23 with:
24 (1) IC 32-31-12.5-7(1); or
25 (2) a court order.
2025 IN 1373—LS 7500/DI 137