*SB0327.3* Reprinted February 19, 2025 SENATE BILL No. 327 _____ DIGEST OF SB 327 (Updated February 18, 2025 4:24 pm - DI 149) Citations Affected: IC 33-34; IC 33-37. Synopsis: Marion County small claims fees. Requires a clerk to collect a small claims service fee of $26 in each action filed in a Marion County small claims court. Establishes the small claims fund. Requires the court to distribute certain fees to the county auditor for distribution to the small claims fund. Provides that the fees in the small claims fund are to be distributed equally among the townships and the fees must fund the operation of the small claims court located within the township. Effective: July 1, 2025. Freeman, Carrasco, Randolph Lonnie M January 13, 2025, read first time and referred to Committee on Judiciary. February 6, 2025, amended, reported favorably — Do Pass; reassigned to Committee on Tax and Fiscal Policy. February 11, 2025, reported favorably — Do Pass. February 18, 2025, read second time, amended, ordered engrossed. SB 327—LS 7075/DI 149 Reprinted February 19, 2025 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. 327 A BILL FOR AN ACT to amend the Indiana Code concerning courts and court officers. Be it enacted by the General Assembly of the State of Indiana: 1 SECTION 1. IC 33-34-8-1, AS AMENDED BY P.L.178-2022(ts), 2 SECTION 18, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 3 JULY 1, 2025]: Sec. 1. (a) The following fees and costs apply to cases 4 in the small claims court: 5 (1) A township docket fee of five dollars ($5) plus forty-five 6 percent (45%) of the infraction or ordinance violation costs fee 7 under IC 33-37-4-2. 8 (2) The bailiff's service of process by registered or certified mail 9 fee of fifteen dollars ($15) for each service. 10 (3) The cost for the personal service of process by the bailiff or 11 other process server of fifteen dollars ($15) for each service. 12 (4) Witness fees, if any, in the amount provided by IC 33-37-10-3 13 to be taxed and charged in the circuit court. 14 (5) A redocketing fee, if any, of five dollars ($5). 15 (6) A document storage fee under IC 33-37-5-20. 16 (7) An automated record keeping fee under IC 33-37-5-21. 17 (8) A late fee, if any, under IC 33-37-5-22. SB 327—LS 7075/DI 149 2 1 (9) A public defense administration fee under IC 33-37-5-21.2. 2 (10) A judicial insurance adjustment fee under IC 33-37-5-25. 3 (11) A judicial salaries fee under IC 33-37-5-26. 4 (12) A court administration fee under IC 33-37-5-27. 5 (13) Before July 1, 2025, a pro bono legal services fee under 6 IC 33-37-5-31. 7 (14) A sheriff's service of process fee under IC 33-37-5-15 for 8 each service of process performed outside Marion County. 9 (15) A small claims service fee of twenty-six dollars ($26) 10 under IC 33-37-5-35. 11 The township docket fee and the cost for the initial service of process 12 shall be paid at the institution of a case. The cost of service after the 13 initial service shall be assessed and paid after service has been made. 14 The cost of witness fees shall be paid before the witnesses are called. 15 (b) If the amount of the township docket fee computed under 16 subsection (a)(1) is not equal to a whole number, the amount shall be 17 rounded to the next highest whole number. 18 SECTION 2. IC 33-34-8-3, AS AMENDED BY P.L.9-2024, 19 SECTION 507, IS AMENDED TO READ AS FOLLOWS 20 [EFFECTIVE JULY 1, 2025]: Sec. 3. (a) Payment for all costs made as 21 a result of proceedings in a small claims court shall be to the _______ 22 Township of Marion County Small Claims Court (with the name of the 23 township inserted). The court shall issue a receipt for all money 24 received on a form numbered serially in duplicate. 25 (b) This subsection applies only to a low caseload court (as defined 26 in section 5 of this chapter). All township docket fees and late fees 27 received by the court shall be paid to the township trustee at the close 28 of each month. 29 (c) This subsection does not apply to a low caseload court. This 30 subsection applies to all other township small claims courts in Marion 31 County. One dollar and fifty cents ($1.50) of the township docket fee 32 shall be paid to the township trustee of each low caseload court at the 33 end of each month. The remaining township docket fees and late fees 34 received by the court shall be paid to the township trustee at the close 35 of each month. 36 (d) (b) The court shall: 37 (1) semiannually distribute to the state comptroller: 38 (A) all automated record keeping fees (IC 33-37-5-21) 39 received by the court for deposit in the homeowner protection 40 unit account established by IC 4-6-12-9 and the state user fee 41 fund established under IC 33-37-9; 42 (B) all public defense administration fees collected by the SB 327—LS 7075/DI 149 3 1 court under IC 33-37-5-21.2 for deposit in the state general 2 fund; 3 (C) sixty percent (60%) of all court administration fees 4 collected by the court under IC 33-37-5-27 for deposit in the 5 state general fund; 6 (D) all judicial insurance adjustment fees collected by the 7 court under IC 33-37-5-25 for deposit in the state general fund; 8 (E) seventy-five percent (75%) of all judicial salaries fees 9 collected by the court under IC 33-37-5-26 for deposit in the 10 state general fund; and 11 (F) one hundred percent (100%) of the pro bono legal services 12 fees collected before July 1, 2025, by the court under 13 IC 33-37-5-31 for deposit in the pro bono legal services fund 14 established by IC 33-37-5-34; and 15 (2) distribute monthly to the county auditor all of the following 16 fees received by the court: 17 (A) Document storage fees. received by the court. 18 (B) The remaining twenty-five percent (25%) of the judicial 19 salaries fees described in subdivision (1)(E). shall be deposited 20 monthly in the township general fund of the township in which 21 the court is located. The county auditor shall deposit fees 22 distributed under subdivision (2) into the clerk's record 23 perpetuation fund under IC 33-37-5-2. 24 (C) Township docket fees and late fees. 25 (D) Small claims service fees received under IC 33-37-5-35; 26 and 27 (e) The court (3) distribute semiannually shall pay to the 28 township trustee of the township in which the court is located the 29 remaining forty percent (40%) of the court administration fees 30 described under subsection (d)(1)(C) to fund the operations of the 31 small claims court in the trustee's township. subdivision (1)(C). 32 SECTION 3. IC 33-37-5-34, AS AMENDED BY P.L.9-2024, 33 SECTION 509, IS AMENDED TO READ AS FOLLOWS 34 [EFFECTIVE JULY 1, 2025]: Sec. 34. (a) The pro bono legal services 35 fund is established. The state comptroller shall administer the fund. 36 (b) The fund consists of distributions of pro bono legal services fees 37 under: 38 (1) IC 33-34-8-3(d)(1)(F); IC 33-34-8-3(b)(1)(F); 39 (2) IC 33-37-7-2(l); or 40 (3) IC 33-37-7-8(i). 41 (c) The state comptroller shall transfer semiannually the pro bono 42 legal services fees in the fund to the Indiana Bar Foundation (or a SB 327—LS 7075/DI 149 4 1 successor entity) as the entity designated to organize and administer the 2 interest on lawyers trust accounts (IOLTA) program under Rule 1.15 3 of the Rules of Professional Conduct of the Indiana supreme court. The 4 Indiana Bar Foundation shall: 5 (1) deposit in an appropriate account and otherwise manage the 6 fees the Indiana Bar Foundation receives under this subsection in 7 the same manner the Indiana Bar Foundation deposits and 8 manages the net earnings the Indiana Bar Foundation receives 9 from IOLTA accounts; and 10 (2) use the fees the Indiana Bar Foundation receives under this 11 subsection to assist or establish approved pro bono legal services 12 programs. 13 The handling and expenditure of the pro bono legal services fees 14 received under this section by the Indiana Bar Foundation (or its 15 successor entity) are subject to audit by the state board of accounts. 16 (d) Money in the fund and any interest that accrues to the fund 17 remain in the fund and do not revert to the state general fund. 18 (e) Money in the fund is continuously appropriated to carry out the 19 transfers required under subsection (c). 20 SECTION 4. IC 33-37-5-35 IS ADDED TO THE INDIANA CODE 21 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 22 1, 2025]: Sec. 35. (a) This section applies to a small claims action in 23 which a party is required to pay a township docket fee under 24 IC 33-34-8-1(a)(1). 25 (b) The clerk shall collect a small claims service fee of twenty-six 26 dollars ($26) from the party filing the small claims action. 27 SECTION 5. IC 33-37-5-36 IS ADDED TO THE INDIANA CODE 28 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 29 1, 2025]: Sec. 36. (a) The small claims fund is established. The 30 auditor of Marion County shall administer the fund. 31 (b) The small claims fund consists of the following fees 32 distributed under IC 33-34-8-3(b): 33 (1) Document storage fees. 34 (2) Judicial salaries fees. 35 (3) Township docket and late fees. 36 (4) Small claims service fees. 37 (5) Court administration fees. 38 (c) The county auditor shall transfer semiannually the fees 39 described in subsection (b) that are in the small claims fund to each 40 township within which a small claims court is located. The fees 41 transferred under this section shall be distributed equally among 42 the townships. The trustee of a township in which a court is located SB 327—LS 7075/DI 149 5 1 shall: 2 (1) deposit the fees into the township general fund and 3 otherwise manage the fees received under this subsection; and 4 (2) use the fees received under this subsection to fund the 5 operations of the small claims court in the trustee's township. 6 (d) Money in the small claims fund and any interest that accrues 7 from money in the fund remain in the fund and do not revert to a 8 clerk of the court. 9 (e) Money in the small claims fund is continuously appropriated 10 to carry out the transfer required under subsection (c). SB 327—LS 7075/DI 149 6 COMMITTEE REPORT Mr. President: The Senate Committee on Judiciary, to which was referred Senate Bill No. 327, has had the same under consideration and begs leave to report the same back to the Senate with the recommendation that said bill be AMENDED as follows: Page 1, between the enacting clause and line 1, begin a new paragraph and insert: "SECTION 1. IC 33-28-1-2, AS AMENDED BY P.L.195-2019, SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 2. (a) All circuit courts have: (1) original and concurrent jurisdiction in all civil cases and in all criminal cases; (2) original and concurrent jurisdiction with the superior courts in all user fee cases; (3) de novo appellate jurisdiction of appeals from city and town courts; and (4) in Marion County, de novo appellate jurisdiction of appeals from township small claims courts established under IC 33-34 but not jurisdiction over a case that must originate in the Marion County small claims court under IC 33-34-3-2 or IC 33-34-3-3. (b) The circuit court also has the appellate jurisdiction that may be conferred by law upon it. SECTION 2. IC 33-29-1-1.5, AS AMENDED BY P.L.195-2019, SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 1.5. All standard superior courts have: (1) original and concurrent jurisdiction in all civil cases and in all criminal cases; (2) original and concurrent jurisdiction with the circuit courts in all user fee cases; (3) de novo appellate jurisdiction of appeals from city and town courts; and (4) in Marion County, de novo appellate jurisdiction of appeals from township small claims courts established under IC 33-34 but not jurisdiction over a case that must originate in the Marion County small claims court under IC 33-34-3-2 or IC 33-34-3-3. SECTION 3. IC 33-29-1.5-2, AS AMENDED BY P.L.195-2019, SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 2. All superior courts have: (1) original and concurrent jurisdiction in all civil cases and in all SB 327—LS 7075/DI 149 7 criminal cases; (2) original and concurrent jurisdiction with the circuit courts in all user fee cases; (3) de novo appellate jurisdiction of appeals from city and town courts; and (4) in Marion County, de novo appellate jurisdiction of appeals from township small claims courts established under IC 33-34 but not jurisdiction over a case that must originate in the Marion County small claims court under IC 33-34-3-2 or IC 33-34-3-3. SECTION 4. IC 33-31-1-9, AS AMENDED BY P.L.201-2011, SECTION 28, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 9. All probate courts have: (1) original and concurrent jurisdiction in all civil cases and in all criminal cases; (2) de novo appellate jurisdiction of appeals from city and town courts; and (3) in Marion County, de novo appellate jurisdiction of appeals from township small claims courts established under IC 33-34 but not jurisdiction over a case that must originate in the Marion County small claims court under IC 33-34-3-2 or IC 33-34-3-3. SECTION 5. IC 33-34-3-1 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 1. (a) Except for a claim between landlord and tenant, A case within the jurisdiction of a small claims court may be: (1) venued; (2) commenced; and (3) decided; in any township small claims court within the county. However, upon a motion for change of venue filed by the defendant within ten (10) days of service of the summons, the township small claims court shall determine in accordance with subsection (b) whether required venue lies with the court or with another small claims court in the county in which the small claims court action was filed. (b) The venue determination to be made under subsection (a) must be made in the following order: A small claims action must be commenced in one (1) of the following: (1) In an action upon a debt or account, venue is in the township where any defendant has consented to venue in a writing signed by the defendant. (2) Venue is in the township where a transaction or occurrence SB 327—LS 7075/DI 149 8 giving rise to any part of the claim took place. (3) Venue is in the township (in a county of the small claims court) where the greater percentage of individual defendants included in the complaint resides, or, if there is not a greater percentage, the place where any individual named as a defendant: (A) resides; (B) owns real estate; or (C) rents an apartment or real estate or where the principal office or place of business of any defendant is located. (4) Venue is in the township where the claim was filed if there is no other township in the county in which the small claims court sits in which required venue lies. (c) (4) Venue of any claim between landlord and tenant must be in the township where the real estate is located. (5) Venue of any small claims action is in a township, or a contiguous township, described in subdivisions (1) through (4). (b) Upon a motion for change of venue filed by the defendant within ten (10) days of service of the summons, the township small claims court shall determine whether required venue lies with the court or with another small claims court in the county in which the small claims court action was filed. (d) (c) If a written motion challenging venue is received by the small claims court, the court shall rule whether required venue lies in the township of filing. SECTION 6. IC 33-34-3-2, AS AMENDED BY P.L.125-2021, SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 2. The court has original and concurrent jurisdiction with the circuit and superior courts in all civil cases founded on contract or tort in which the debt or damage claimed does not exceed ten thousand dollars ($10,000), not including interest or attorney's fees. SECTION 7. IC 33-34-3-3, AS AMENDED BY P.L.125-2021, SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 3. The court has original and concurrent jurisdiction with the circuit and superior courts in possessory actions between landlord and tenant in which the past due rent at the time of filing does not exceed ten thousand dollars ($10,000). The court also has original and concurrent jurisdiction with the circuit and superior courts in actions for the possession of property where the value of the property sought to be recovered does not exceed ten thousand dollars ($10,000). These jurisdictional limitations are not affected by interest SB 327—LS 7075/DI 149 9 and attorney's fees. SECTION 8. IC 33-34-5-7 IS REPEALED [EFFECTIVE JULY 1, 2025]. Sec. 7. (a) Before the first day of each month, the judge of a low caseload court (as defined in IC 33-34-8-5 and IC 33-34-8-5.1) shall identify to the presiding judge of the small claims courts five (5) days during the month in which the judge of the low caseload court will be available to assist the judges of the other small claims courts with their judicial duties. (b) Upon request of the judge of a court that is not a low caseload court, the presiding judge may assign the judge of a low caseload court to assist the judge of the other court with the judge's judicial duties during one (1) or more of the five (5) days that the judge of the low caseload court has indicated that he or she will be available. (c) The judge of a low caseload court shall comply with an assignment made by the presiding judge under this section. (d) At the time the presiding judge makes an assignment under this section, the presiding judge shall inform the circuit court judge in writing of the assignment. The circuit court judge has the authority to enforce the presiding judge's assignment under this section.". Page 2, delete lines 18 through 42, begin a new paragraph and insert: "SECTION 10. IC 33-34-8-3, AS AMENDED BY P.L.9-2024, SECTION 507, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 3. (a) Payment for all costs made as a result of proceedings in a small claims court shall be to the _______ Township of Marion County Small Claims Court (with the name of the township inserted). The court shall issue a receipt for all money received on a form numbered serially in duplicate. (b) This subsection applies only to a low caseload court (as defined in section 5 of this chapter). All township docket fees and late fees received by the court shall be paid to the township trustee at the close of each month. (c) This subsection does not apply to a low caseload court. This subsection applies to all other township small claims courts in Marion County. One dollar and fifty cents ($1.50) of the township docket fee shall be paid to the township trustee of each low caseload court at the end of each month. The remaining township docket fees and late fees received by the court shall be paid to the township trustee at the close of each month. (d) (b) The court shall: (1) semiannually distribute to the state comptroller: (A) all automated record keeping fees (IC 33-37-5-21) SB 327—LS 7075/DI 149 10 received by the court for deposit in the homeowner protection unit account established by IC 4-6-12-9 and the state user fee fund established under IC 33-37-9; (B) all public defense administration fees collected by the court under IC 33-37-5-21.2 for deposit in the state general fund; (C) sixty percent (60%) of all court administration fees collected by the court under IC 33-37-5-27 for deposit in the state general fund; (D) all judicial insurance adjustment fees collected by the court under IC 33-37-5-25 for deposit in the state general fund; (E) seventy-five percent (75%) of all judicial salaries fees collected by the court under IC 33-37-5-26 for deposit in the state general fund; and (F) one hundred percent (100%) of the pro bono legal services fees collected before July 1, 2025, by the court under IC 33-37-5-31 for deposit in the pro bono legal services fund established by IC 33-37-5-34; and (2) distribute monthly to the county auditor all of the following fees received by the court: (A) Document storage fees. received by the court. (B) The remaining twenty-five percent (25%) of the judicial salaries fees described in subdivision (1)(E). shall be deposited monthly in the township general fund of the township in which the court is located. The county auditor shall deposit fees distributed under subdivision (2) into the clerk's record perpetuation fund under IC 33-37-5-2. (C) Township docket fees and late fees. (D) Small claims service fees received under IC 33-37-5-35; and (e) The court (3) distribute semiannually shall pay to the township trustee of the township in which the court is located the remaining forty percent (40%) of the court administration fees described under subsection (d)(1)(C) to fund the operations of the small claims court in the trustee's township. subdivision (1)(C). SECTION 11. IC 33-34-8-5 IS REPEALED [EFFECTIVE JULY 1, 2025]. Sec. 5. (a) This section applies after December 31, 2015. (b) As used in this section, "low caseload court" means, for a calendar year, a court that, in the preceding calendar year: (1) had less than four thousand (4,000) new filings; and (2) was one (1) of the two (2) courts with the lowest number of new filings. SB 327—LS 7075/DI 149 11 (c) Before January 1 of each year, the circuit court judge shall determine whether a court is a low caseload court. (d) If the circuit court judge determines that one (1) or more courts is a low caseload court, the circuit court judge shall certify these courts as low caseload courts and notify the clerk of each township small claims court. Not more than two (2) courts may be certified as low caseload courts. SECTION 12. IC 33-37-5-34, AS AMENDED BY P.L.9-2024, SECTION 509, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 34. (a) The pro bono legal services fund is established. The state comptroller shall administer the fund. (b) The fund consists of distributions of pro bono legal services fees under: (1) IC 33-34-8-3(d)(1)(F); IC 33-34-8-3(b)(1)(F); (2) IC 33-37-7-2(l); or (3) IC 33-37-7-8(i). (c) The state comptroller shall transfer semiannually the pro bono legal services fees in the fund to the Indiana Bar Foundation (or a successor entity) as the entity designated to organize and administer the interest on lawyers trust accounts (IOLTA) program under Rule 1.15 of the Rules of Professional Conduct of the Indiana supreme court. The Indiana Bar Foundation shall: (1) deposit in an appropriate account and otherwise manage the fees the Indiana Bar Foundation receives under this subsection in the same manner the Indiana Bar Foundation deposits and manages the net earnings the Indiana Bar Foundation receives from IOLTA accounts; and (2) use the fees the Indiana Bar Foundation receives under this subsection to assist or establish approved pro bono legal services programs. The handling and expenditure of the pro bono legal services fees received under this section by the Indiana Bar Foundation (or its successor entity) are subject to audit by the state board of accounts. (d) Money in the fund and any interest that accrues to the fund remain in the fund and do not revert to the state general fund. (e) Money in the fund is continuously appropriated to carry out the transfers required under subsection (c).". Page 3, delete lines 1 through 27. Page 3, delete lines 39 through 40, begin a new paragraph and insert: "(b) The small claims fund consists of the following fees distributed under IC 33-34-8-3(b): SB 327—LS 7075/DI 149 12 (1) Document storage fees. (2) Judicial salaries fees. (3) Township docket and late fees. (4) Small claims service fees. (5) Court administration fees.". Page 3, line 41, delete "small". Page 3, line 42, delete "claims service". Page 3, line 42, after "fees" insert "described in subsection (b) that are". Renumber all SECTIONS consecutively. and when so amended that said bill do pass and be reassigned to the Senate Committee on Tax and Fiscal Policy. (Reference is to SB 327 as introduced.) BROWN L, Chairperson Committee Vote: Yeas 10, Nays 0. _____ COMMITTEE REPORT Mr. President: The Senate Committee on Tax and Fiscal Policy, to which was referred Senate Bill No. 327, has had the same under consideration and begs leave to report the same back to the Senate with the recommendation that said bill DO PASS. (Reference is to SB 327 as printed February 7, 2025.) HOLDMAN, Chairperson Committee Vote: Yeas 12, Nays 0 _____ SENATE MOTION Mr. President: I move that Senate Bill 327 be amended to read as follows: Page 1, delete lines 1 through 17. Delete pages 2 through 3. Page 4, delete lines 1 through 36. Page 7, delete lines 1 through 14. SB 327—LS 7075/DI 149 13 Renumber all SECTIONS consecutively. (Reference is to SB 327 as printed February 12, 2025.) FREEMAN SB 327—LS 7075/DI 149