Introduced Version
SENATE BILL No. 197
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 36-7-9.
Synopsis: Unsafe building law. Requires that the instructions for
requesting a hearing on an order relating to an unsafe premises: (1) be
printed in at least 12 point font; and (2) be placed in a conspicuous
location on the order. Requires a hearing to be conducted when a civil
penalty is imposed unless the property owner waives the hearing in
writing. Prohibits a civil penalty for an unsafe premises from being
included on a property tax statement. Provides that a civil penalty shall
be waived if the property subject to the order was sold to a third party
that renovates the property and meets certain conditions.
Effective: July 1, 2025.
Freeman
January 8, 2025, read first time and referred to Committee on Local Government.
2025 IN 197—LS 6703/DI 116 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.
SENATE BILL No. 197
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 36-7-9-5, AS AMENDED BY P.L.247-2015,
2 SECTION 41, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2025]: Sec. 5. (a) The enforcement authority may issue an
4 order requiring action relative to any unsafe premises, including:
5 (1) vacating of an unsafe building;
6 (2) sealing an unsafe building against intrusion by unauthorized
7 persons, in accordance with a uniform standard established by
8 ordinance;
9 (3) extermination of vermin in and about the unsafe premises;
10 (4) removal of trash, debris, fire hazardous material, or a public
11 health hazard in and about the unsafe premises;
12 (5) repair or rehabilitation of an unsafe building to bring it into
13 compliance with standards for building condition or maintenance
14 required for human habitation, occupancy, or use by a statute, a
15 rule adopted under IC 4-22-2, or an ordinance;
16 (6) demolition and removal of part of an unsafe building;
17 (7) demolition and removal of an unsafe building if:
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1 (A) the general condition of the building warrants removal; or
2 (B) the building continues to require reinspection and
3 additional abatement action after an initial abatement action
4 was taken pursuant to notice and an order; and
5 (8) requiring, for an unsafe building that will be sealed for a
6 period of more than ninety (90) days:
7 (A) sealing against intrusion by unauthorized persons and the
8 effects of weather;
9 (B) exterior improvements to make the building compatible in
10 appearance with other buildings in the area; and
11 (C) continuing maintenance and upkeep of the building and
12 premises;
13 in accordance with standards established by ordinance.
14 Notice of the order must be given under section 25 of this chapter. The
15 ordered action must be reasonably related to the condition of the unsafe
16 premises and the nature and use of nearby properties. The order
17 supersedes any permit relating to building or land use, whether that
18 permit is obtained before or after the order is issued.
19 (b) The order must contain the following:
20 (1) The name of the person to whom the order is issued.
21 (2) The legal description or address of the unsafe premises that
22 are the subject of the order.
23 (3) The action that the order requires.
24 (4) The period of time in which the action is required to be
25 accomplished, measured from the time when the notice of the
26 order is given.
27 (5) If a hearing is required, a statement indicating the exact time
28 and place of the hearing, and stating that person to whom the
29 order was issued is entitled to appear at the hearing with or
30 without legal counsel, present evidence, cross-examine opposing
31 witnesses, and present arguments.
32 (6) If a hearing is not required, a statement that an order under
33 subsection (a)(2), (a)(3), (a)(4), or (a)(5) becomes final ten (10)
34 days after notice is given, unless a hearing is requested in writing
35 by a person holding a fee interest, life estate interest, or equitable
36 interest of a contract purchaser in the unsafe premises, and the
37 request is delivered to the enforcement authority before the end
38 of the ten (10) day period. The statement must be printed in at
39 least 12 point font and placed in a conspicuous location on the
40 order.
41 (7) A statement briefly indicating what action can be taken by the
42 enforcement authority if the order is not complied with.
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1 (8) A statement indicating the obligation created by section 27 of
2 this chapter relating to notification of subsequent interest holders
3 and the enforcement authority.
4 (9) The name, address, and telephone number of the enforcement
5 authority.
6 (10) A statement that the hearing authority may determine the
7 property to be abandoned as provided in IC 36-7-37.
8 (c) The order must allow a sufficient time, of at least ten (10) days,
9 but not more than sixty (60) days, from the time when notice of the
10 order is given, to accomplish the required action. If the order allows
11 more than thirty (30) days to accomplish the action, the order may
12 require that a substantial beginning be made in accomplishing the
13 action within thirty (30) days.
14 (d) The order expires two (2) years from the day the notice of the
15 order is given, unless one (1) or more of the following events occurs
16 within that two (2) year period:
17 (1) A complaint requesting judicial review is filed under section
18 8 of this chapter.
19 (2) A contract for action required by the order is let at public bid
20 under section 11 of this chapter.
21 (3) A civil action is filed under section 17 of this chapter.
22 (e) If the order contains a statement under subsection (a)(6) or
23 (a)(7), notice of the order shall be given to each person with a known
24 or recorded substantial property interest.
25 SECTION 2. IC 36-7-9-7, AS AMENDED BY P.L.247-2015,
26 SECTION 42, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
27 JULY 1, 2025]: Sec. 7. (a) A hearing must be held relative to each
28 order of the enforcement authority, except for an order issued under
29 section 5(a)(2), 5(a)(3), 5(a)(4), or 5(a)(5) or 7.5 of this chapter. An
30 order issued under section 5(a)(2), 5(a)(3), 5(a)(4), or 5(a)(5) or 7.5 of
31 this chapter becomes final ten (10) days after notice is given, unless a
32 hearing is requested before the ten (10) day period ends by a person
33 holding a fee interest, life estate interest, mortgage interest, or equitable
34 interest of a contract purchaser in the unsafe premises. The hearing
35 shall be conducted by the hearing authority. A hearing must be held
36 for an order issued under section 7.5 of this chapter imposing the
37 initial civil penalty unless the hearing is waived in writing by a
38 person holding a fee interest, life estate interest, mortgage interest,
39 or equitable interest of a contract purchaser in the unsafe premises
40 on a form provided by the enforcing authority with notice of the
41 order issued under section 7.5 of this chapter.
42 (b) The hearing shall be held on a business day no earlier than ten
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1 (10) days after notice of the order is given. The hearing authority may,
2 however, take action at the hearing, or before the hearing if a written
3 request is received by the enforcement authority not later than five (5)
4 days after notice is given, to continue the hearing to a business day not
5 later than fourteen (14) days after the hearing date shown on the order.
6 Unless the hearing authority takes action to have the continued hearing
7 held on a definite, specified date, notice of the continued hearing must
8 be given to the person to whom the order was issued at least five (5)
9 days before the continued hearing date, in the manner prescribed by
10 section 25 of this chapter. If the order being considered at the
11 continued hearing was served by publication, it is sufficient to give
12 notice of the continued hearing by publication unless the enforcement
13 authority has received information in writing that enables it to make
14 service under section 25 of this chapter by a method other than
15 publication.
16 (c) The person to whom the order was issued, any person having a
17 substantial property interest in the unsafe premises that are the subject
18 of the order, or any other person with an interest in the proceedings
19 may appear in person or by counsel at the hearing. Each person
20 appearing at the hearing is entitled to present evidence, cross-examine
21 opposing witnesses, and present arguments.
22 (d) At the conclusion of any hearing at which a continuance is not
23 granted, the hearing authority may make findings and take action to:
24 (1) affirm the order;
25 (2) rescind the order; or
26 (3) modify the order, but unless the person to whom the order was
27 issued, or counsel for that person, is present at the hearing, the
28 hearing authority may modify the order in only a manner that
29 makes its terms less stringent.
30 (e) In addition to affirming the order, in those cases in which the
31 hearing authority finds that there has been a willful failure to comply
32 with the order, the hearing authority may impose a civil penalty in an
33 amount not to exceed five thousand dollars ($5,000). The effective date
34 of the civil penalty may be postponed for a reasonable period, after
35 which the hearing authority may order the civil penalty reduced or
36 stricken if the hearing authority is satisfied that all work necessary to
37 fully comply with the order has been done. For purposes of an appeal
38 under section 8 of this chapter or enforcement of an order under section
39 17 of this chapter, action of the hearing authority is considered final
40 upon the affirmation of the order, even though the hearing authority
41 may retain jurisdiction for the ultimate determination related to the
42 civil penalty. In the hearing authority's exercise of continuing
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1 jurisdiction, the hearing authority may, in addition to reducing or
2 striking the civil penalty, impose one (1) or more additional civil
3 penalties in an amount not to exceed five thousand dollars ($5,000) per
4 civil penalty. An additional civil penalty may be imposed if the hearing
5 authority finds that:
6 (1) significant work on the premises to comply with the affirmed
7 order has not been accomplished; and
8 (2) the premises have a negative effect on property values or the
9 quality of life of the surrounding area or the premises require the
10 provision of services by local government in excess of the
11 services required by ordinary properties.
12 The hearing authority may not impose an additional civil penalty in a
13 hearing to review a civil penalty imposed by the enforcement authority
14 under section 7.5 of this chapter.
15 (f) If, at a hearing, a person to whom an order has been issued
16 requests an additional period to accomplish action required by the
17 order, and shows good cause for this request to be granted, the hearing
18 authority may grant the request. However, as a condition for allowing
19 the additional period, the hearing authority may require that the person
20 post a performance bond to be forfeited if the action required by the
21 order is not completed within the additional period.
22 (g) If an order is affirmed or modified, the hearing authority shall
23 issue a continuous enforcement order (as defined in section 2 of this
24 chapter).
25 (h) The board or commission having control over the department
26 shall, at a public hearing, after having given notice of the time and
27 place of the hearing by publication in accordance with IC 5-3-1, adopt
28 a schedule setting forth the maximum amount of performance bonds
29 applicable to various types of ordered action. The hearing authority
30 shall use this schedule to fix the amount of the performance bond
31 required under subsection (f).
32 (i) The record of the findings made and action taken by the hearing
33 authority at the hearing shall be available to the public upon request.
34 However, neither the enforcement authority nor the hearing authority
35 is required to give any person notice of the findings and action.
36 (j) If a civil penalty under subsection (e) is unpaid for more than
37 fifteen (15) days after payment of the civil penalty is due, the civil
38 penalty may be collected from any person against whom the hearing
39 officer assessed the civil penalty or fine. A civil penalty or fine may be
40 collected under this subsection in the same manner as costs under
41 section 13 or 13.5 of this chapter. The amount of the civil penalty or
42 fine that is collected shall be deposited in the unsafe building fund.
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1 SECTION 3. IC 36-7-9-7.5, AS ADDED BY P.L.247-2015,
2 SECTION 43, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2025]: Sec. 7.5. (a) This section applies to an order issued
4 under section 5(a)(5) of this chapter for which a hearing was not
5 requested as provided in section 7 of this chapter.
6 (b) If the person to whom the order was issued fails or refuses to
7 comply with the order within sixty (60) days or the time specified in the
8 order, the enforcement authority may impose a civil penalty not to
9 exceed two thousand five hundred dollars ($2,500). The enforcement
10 authority shall give notice of the civil penalty to all persons with a
11 known or recorded substantial property interest in the unsafe premises.
12 (c) After a civil penalty is imposed under subsection (b), the
13 enforcement authority may impose an additional civil penalty in an
14 amount not to exceed one thousand dollars ($1,000) every ninety (90)
15 days if the person to whom the order was issued continues to fail or
16 refuse to comply with the order.
17 (d) If a civil penalty under this section is unpaid for more than
18 fifteen (15) days after payment of the civil penalty is due, the civil
19 penalty may be collected in the same manner as costs under section 13
20 or 13.5 of this chapter. The amount of the civil penalty that is collected
21 shall be deposited in the unsafe building fund.
22 (e) A civil penalty under this section shall be waived by the
23 hearing authority under section 7 of this chapter if the following
24 conditions are satisfied:
25 (1) The property subject to the civil penalty was sold to a
26 nonrelated third party after the order described in section 5
27 of this chapter was issued and the seller does not retain any
28 interest in the property.
29 (2) The purchaser has obtained necessary building permits to
30 rehabilitate or renovate the property and has made a
31 substantial beginning to correct the issues stated in the order.
32 SECTION 4. IC 36-7-9-7.7 IS ADDED TO THE INDIANA CODE
33 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
34 1, 2025]: Sec. 7.7. A civil penalty under section 7 or 7.5 of this
35 chapter or any other fee under this chapter may not be included on
36 a property tax statement issued to a taxpayer under IC 6-1.1 and
37 must be billed separately.
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