Indiana 2025 Regular Session

Indiana House Bill HB1373 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2	Introduced Version
3	3	HOUSE BILL No. 1373
4	4	_____
5	5	DIGEST OF INTRODUCED BILL
6	6	Citations Affected: IC 32-31-12.5; IC 33-32; IC 33-37-5-35.
7	7	Synopsis: Rent escrow. Establishes a procedure permitting a tenant to
8	8	withhold rent from a landlord and deposit it with a court if the landlord
9	9	does not fulfill the landlord's obligations or fails to remedy a violation
10	10	of an ordinance, rule, code, or other law, and the violation may
11	11	materially affect the health or safety of the tenant.
12	12	Effective: July 1, 2025.
13	13	Boy, Errington
14	14	January 13, 2025, read first time and referred to Committee on Judiciary.
15	15	2025 IN 1373—LS 7500/DI 137 Introduced
16	16	First Regular Session of the 124th General Assembly (2025)
17	17	PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
18	18	Constitution) is being amended, the text of the existing provision will appear in this style type,
19	19	additions will appear in this style type, and deletions will appear in this style type.
20	20	Additions: Whenever a new statutory provision is being enacted (or a new constitutional
21	21	provision adopted), the text of the new provision will appear in this style type. Also, the
22	22	word NEW will appear in that style type in the introductory clause of each SECTION that adds
23	23	a new provision to the Indiana Code or the Indiana Constitution.
24	24	Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
25	25	between statutes enacted by the 2024 Regular Session of the General Assembly.
26	26	HOUSE BILL No. 1373
27	27	A BILL FOR AN ACT to amend the Indiana Code concerning
28	28	property.
29	29	Be it enacted by the General Assembly of the State of Indiana:
30	30	1 SECTION 1. IC 32-31-12.5 IS ADDED TO THE INDIANA CODE
31	31	2 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
32	32	3 JULY 1, 2025]:
33	33	4 Chapter 12.5. Tenant's Right to Escrow Rent
34	34	5 Sec. 1. This chapter does not apply to a tenant who is not
35	35	6 current on the tenant's rent payments due under a rental
36	36	7 agreement.
37	37	8 Sec. 2. The definitions in IC 32-31-3 apply to this chapter.
38	38	9 Sec. 3. If:
39	39	10 (1) a landlord does not fulfill the landlord's obligations
40	40	11 under IC 32-31-8-5; or
41	41	12 (2) a governmental agency has found that a rental unit is
42	42	13 in violation of a code, rule, ordinance, or other law, and the
43	43	14 violation may materially affect the health or safety of the
44	44	15 tenant;
45	45	16 the tenant may obtain relief as described in this chapter.
46	46	17 Sec. 4. (a) If a tenant has a reasonable belief that a landlord has
47	47	2025 IN 1373—LS 7500/DI 137 2
48	48	1 violated an obligation under IC 32-31-8-5, the tenant shall notify
49	49	2 the landlord of the violation in writing, specifically describing the
50	50	3 violation.
51	51	4 (b) If a governmental agency makes a finding that a rental unit
52	52	5 is in violation of law under section 3(2) of this chapter, the
53	53	6 governmental agency shall notify the landlord of the violation in
54	54	7 writing, specifically describing the violation. The governmental
55	55	8 agency shall provide the tenant with a copy of the notice provided
56	56	9 to the landlord.
57	57	10 Sec. 5. If the landlord does not remedy the violation within the
58	58	11 earlier of:
59	59	12 (1) thirty (30) days; or
60	60	13 (2) a deadline provided by a governmental agency in a notice
61	61	14 under section 4(b) of this chapter;
62	62	15 the tenant may seek a remedy described in section 6 of this chapter.
63	63	16 Sec. 6. If, after receiving a notice under section 4 of this chapter,
64	64	17 the landlord fails to remedy the violation within the time frame
65	65	18 described in section 5 of this chapter, the tenant may do one (1) or
66	66	19 more of the following:
67	67	20 (1) Deposit all rent that is due, and that becomes due, with the
68	68	21 clerk of the circuit court in the county in which the rental
69	69	22 property is located. If a tenant deposits rent under this
70	70	23 subdivision, the tenant shall inform the clerk in writing of the
71	71	24 name and address of the landlord.
72	72	25 (2) Request a circuit or superior court in the county in which
73	73	26 the rental property is located to issue one (1) or more of the
74	74	27 following orders:
75	75	28 (A) An order requiring the landlord to remedy the
76	76	29 violation described in section 3 of this chapter.
77	77	30 (B) An order authorizing the tenant to deposit rent with
78	78	31 the clerk of the circuit court, as described in subdivision
79	79	32 (1).
80	80	33 (C) An order reducing the rent due to the landlord until
81	81	34 the landlord remediates the violation.
82	82	35 (D) An order authorizing the tenant to use the rent
83	83	36 deposited with the clerk of the circuit court to remediate
84	84	37 the violation.
85	85	38 As part of any order issued under this subdivision, the court
86	86	39 may order the tenant to deposit rent with the clerk of the
87	87	40 circuit court as described in subdivision (1).
88	88	41 (3) An order to terminate the rental agreement.
89	89	42 Sec. 7. A landlord who receives notice that a tenant has
90	90	2025 IN 1373—LS 7500/DI 137 3
91	91	1 deposited rent due to the landlord with the clerk of the circuit
92	92	2 court may do one (1) or more of the following:
93	93	3 (1) Obtain release of the rent after the tenant provides written
94	94	4 notice to the clerk that the violation has been remedied.
95	95	5 (2) File an action requesting the court to order the clerk to
96	96	6 release the rent on the basis that:
97	97	7 (A) the landlord did not receive notice from the tenant or
98	98	8 a governmental agency as required under section 4 of this
99	99	9 chapter; or
100	100	10 (B) the tenant deposited the rent before the time set forth
101	101	11 in section 5 of this chapter.
102	102	12 (3) File an action requesting the court to order the clerk to
103	103	13 release the rent on the basis that:
104	104	14 (A) a violation described in section 3 of this chapter does
105	105	15 not exist;
106	106	16 (B) the landlord has remedied the violation; or
107	107	17 (C) the violation was the result of an act or omission of the
108	108	18 tenant.
109	109	19 Sec. 8. (a) The landlord shall name the tenant as a party in an
110	110	20 action described in section 7 of this chapter.
111	111	21 (b) The court shall set the matter for trial not later than sixty
112	112	22 (60) days after the action is filed, unless, for good cause shown, the
113	113	23 court extends the time period.
114	114	24 Sec. 9. If the court finds that the landlord is entitled to relief
115	115	25 under this chapter, the court shall order the clerk to release the
116	116	26 rent to the landlord.
117	117	27 Sec. 10. (a) If a landlord files an action under section 7 of this
118	118	28 chapter, the landlord may additionally request that the court order
119	119	29 the release, while the action is pending, of a portion of the rent
120	120	30 necessary to pay the ongoing and usual expenses of operating the
121	121	31 rental unit, such as:
122	122	32 (1) the mortgage or other loan payment for the rental
123	123	33 premises;
124	124	34 (2) insurance for the rental premises;
125	125	35 (3) property taxes on the rental premises;
126	126	36 (4) utility costs for the rental premises; and
127	127	37 (5) repair expenses for the rental premises.
128	128	38 (b) In determining whether to release rent for the purposes
129	129	39 described in subsection (a), the court shall consider:
130	130	40 (1) the amount of rent the landlord receives from other rental
131	131	41 units in the same building as the tenant's rental unit;
132	132	42 (2) the cost of operating other rental units in the tenant's
133	133	2025 IN 1373—LS 7500/DI 137 4
134	134	1 building;
135	135	2 (3) the cost required to remedy the violation that is the basis
136	136	3 for the withheld rent; and
137	137	4 (4) any other relevant factor.
138	138	5 Sec. 11. A landlord may not file an action to evict a tenant from
139	139	6 a rental unit:
140	140	7 (1) within thirty (30) days of any action taken by the tenant
141	141	8 under section 6 of this chapter; or
142	142	9 (2) during the pendency of an action filed by the landlord
143	143	10 under section 7 of this chapter.
144	144	11 SECTION 2. IC 33-32-2-12 IS ADDED TO THE INDIANA CODE
145	145	12 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
146	146	13 1, 2025]: Sec. 12. (a) The clerk shall carry out the duties described
147	147	14 in IC 32-31-12.5 concerning rent deposited by a tenant.
148	148	15 (b) Whenever a tenant deposits rent with the clerk under
149	149	16 IC 32-31-12.5, the clerk shall give written notice of the deposit, the
150	150	17 amount of the deposit, and the tenant's name to the landlord.
151	151	18 (c) The clerk shall deposit withheld rent received under this
152	152	19 section in accordance with IC 33-37-5-35.
153	153	20 (d) The clerk shall record in the judgment docket an account of
154	154	21 each deposit, including the amount of each deposit and the name
155	155	22 and address of the:
156	156	23 (1) tenant; and
157	157	24 (2) landlord.
158	158	25 SECTION 3. IC 33-32-3-2, AS AMENDED BY P.L.55-2015,
159	159	26 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
160	160	27 JULY 1, 2025]: Sec. 2. (a) The clerk:
161	161	28 (1) shall keep:
162	162	29 (A) a circuit court judgment docket; and
163	163	30 (B) a judgment docket for each court served by the clerk under
164	164	31 IC 33-32-2-1; and
165	165	32 (2) is the official keeper of:
166	166	33 (A) the circuit court judgment docket; and
167	167	34 (B) the judgment docket for each court served by the clerk
168	168	35 under IC 33-32-2-1.
169	169	36 (b) A judgment docket described in subsection (a):
170	170	37 (1) must contain:
171	171	38 (A) all civil judgments in which one (1) party owes money to
172	172	39 another party, including any court costs awarded to a judgment
173	173	40 creditor; and
174	174	41 (B) any entry that is required by a statute; and
175	175	42 (2) may not include:
176	176	2025 IN 1373—LS 7500/DI 137 5
177	177	1 (A) judgments in which money is owed by a person to a state,
178	178	2 a county, or another governmental entity as a result of:
179	179	3 (i) a criminal conviction; or
180	180	4 (ii) a violation of an infraction or ordinance; or
181	181	5 (B) judgments in which the state, a county, or another
182	182	6 governmental entity is the sole creditor, except for:
183	183	7 (i) cases in which the state obtains a judgment for unpaid
184	184	8 taxes; or
185	185	9 (ii) any entry that is required by statute.
186	186	10 (c) The clerk may keep a judgment docket in:
187	187	11 (1) an electronic format;
188	188	12 (2) a paper format; or
189	189	13 (3) both an electronic and a paper format.
190	190	14 (d) Upon the filing in the office of the clerk a statement or transcript
191	191	15 of any judgment for the recovery of money or costs, the clerk shall
192	192	16 enter, and index in alphabetical order, in this judgment docket a
193	193	17 statement of the judgment showing the following:
194	194	18 (1) The names of all the parties.
195	195	19 (2) The name of the court.
196	196	20 (3) The number of the cause.
197	197	21 (4) The book and page of the record in which the judgment is
198	198	22 recorded.
199	199	23 (5) The date the judgment is entered and indexed.
200	200	24 (6) The date of the rendition of judgment.
201	201	25 (7) The amount of the judgment and the amount of costs.
202	202	26 (e) If a judgment is against several persons, the statement required
203	203	27 to be entered under subsection (d) shall be repeated under the name of
204	204	28 each judgment debtor in alphabetical order.
205	205	29 (f) A person interested in any judgment for money or costs that has
206	206	30 been rendered by any state court, or by any federal court of general
207	207	31 original jurisdiction sitting in Indiana, may have the judgment entered
208	208	32 upon the circuit court judgment docket by filing with the clerk:
209	209	33 (1) a verified statement setting forth the facts required under
210	210	34 subsection (d); or
211	211	35 (2) a verified copy of the judgment certified under the seal of the
212	212	36 court that rendered the judgment.
213	213	37 (g) The judgment docket shall be made available for public
214	214	38 inspection at the office of the clerk during regular office hours. If a
215	215	39 judgment docket is kept in an electronic format:
216	216	40 (1) the judgment docket must be searchable; and
217	217	41 (2) a member of the public must be able to:
218	218	42 (A) search the judgment docket for the name of a specific
219	219	2025 IN 1373—LS 7500/DI 137 6
220	220	1 party; and
221	221	2 (B) obtain a list of all judgments in the judgment docket
222	222	3 concerning the party.
223	223	4 (h) If the wages of a judgment debtor are being garnished, a clerk is
224	224	5 not required to notify the employer of the judgment debtor to suspend
225	225	6 the garnishment after the judgment is satisfied. A request to suspend
226	226	7 the garnishment must be submitted by the judgment debtor to the court
227	227	8 that rendered the judgment. The clerk is not required to take any action
228	228	9 under this subsection concerning a garnishment other than to obey the
229	229	10 orders of the court that rendered the judgment.
230	230	11 (i) If a tenant deposits withheld rent with the clerk under
231	231	12 IC 32-31-12.5, the clerk shall include in this judgment docket a
232	232	13 separate account of each deposit, including the amount of each
233	233	14 deposit and the name and address of the:
234	234	15 (1) tenant; and
235	235	16 (2) landlord.
236	236	17 SECTION 4. IC 33-37-5-35 IS ADDED TO THE INDIANA CODE
237	237	18 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
238	238	19 1, 2025]: Sec. 35. (a) Each clerk shall establish a rental escrow
239	239	20 fund. The clerk shall deposit in the fund withheld rent deposited
240	240	21 with the clerk by a tenant under IC 32-31-12.5.
241	241	22 (b) The clerk shall disburse money from the fund in accordance
242	242	23 with:
243	243	24 (1) IC 32-31-12.5-7(1); or
244	244	25 (2) a court order.
245	245	2025 IN 1373—LS 7500/DI 137