Indiana 2025 Regular Session

Indiana Senate Bill SB0327 Latest Draft

Bill / Engrossed Version Filed 02/18/2025

                            *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