Introduced Version






HOUSE BILL No. 1722

_____


DIGEST OF INTRODUCED BILL



Citations Affected: IC 4-1-9 ; IC 36-1-3-8.5

Synopsis: Lawsuits involving legal products. Prohibits the state or a municipal corporation, including a county, municipality, township, school corporation, or any other separate local governmental entity that may sue and be sued, from bringing an action against a person who legally designs, manufactures, markets, or sells a product for: (1) recovery of damages resulting from, or injunctive relief or abatement of a nuisance relating to, the lawful design, manufacture, marketing, or sale of the product; or (2) recovery of damages resulting from the criminal or unlawful misuse of the product by a third party.

Effective: Upon passage.





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    January 17, 2001, read first time and referred to Committee on Agriculture, Natural Resources and Rural Development.







Introduced

First Regular Session 112th General Assembly (2001)


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 2000 General Assembly.

HOUSE BILL No. 1722



    A BILL FOR AN ACT to amend the Indiana Code concerning state offices and administration and local government.

Be it enacted by the General Assembly of the State of Indiana:

SOURCE: IC 4-1-9; (01)IN1722.1.1. -->     SECTION 1. IC 4-1-9 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]:
    Chapter 9. Lawsuits Involving Legal Products
    Sec. 1. As used in this chapter, "person" means an individual, a corporation, a limited liability company, a partnership, or another legal entity.
    Sec. 2. Except as provided in sections 3 and 4 of this chapter, the state may not bring an action against a person who legally designs, manufactures, markets, or sells a product for:
        (1) recovery of damages resulting from, or injunctive relief or abatement of a nuisance relating to, the lawful:
            (A) design;
            (B) manufacture;
            (C) marketing; or
            (D) sale;
        of the product; or
        (2) recovery of damages resulting from the criminal or unlawful misuse of the product by a third party.
    Sec. 3. (a) The state may bring an action described in section 2 of this chapter if the action is approved in advance by the general assembly:
        (1) in a concurrent resolution; or
        (2) by enactment of a law.
    (b) This section does not create a cause of action.
    Sec. 4. Nothing in this chapter may be construed to prohibit the state from bringing an action against a person who designs, manufactures, markets, or sells a product for recovery of damages for the following:
        (1) Breach of contract or warranty concerning a product purchased by the state.
        (2) Damage or harm to property owned or leased by the state caused by a defective product.
        (3) Injunctive relief to enforce a valid statute, rule, or ordinance.

SOURCE: IC 36-1-3-8.5; (01)IN1722.1.2. -->     SECTION 2. IC 36-1-3-8.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 8.5. (a) As used in this section, "person" means an individual, a corporation, a limited liability company, a partnership, or another legal entity.
    (b) Except as provided in subsections (c) and (d), a municipal corporation may not bring an action against a person who legally designs, manufactures, markets, or sells a product for:
        (1) recovery of damages resulting from, or injunctive relief or abatement of a nuisance relating to, the lawful:
            (A) design;
            (B) manufacture;
            (C) marketing; or
            (D) sale;
        of the product; or
        (2) recovery of damages resulting from the criminal or unlawful misuse of the product by a third party.
    (c) A municipal corporation may bring an action described in subsection (b) if the action is approved in advance by the general assembly:
        (1) in a concurrent resolution; or
        (2) by enactment of a law.
This subsection does not create a cause of action.
    (d) Nothing in this section may be construed to prohibit a

municipal corporation from bringing an action against a person who designs, manufactures, markets, or sells a product for recovery of damages for the following:
        (1) Breach of contract or warranty concerning a product purchased by the municipal corporation.
        (2) Damage or harm to property owned or leased by the municipal corporation caused by a defective product.
        (3) Injunctive relief to enforce a valid statute, rule, or ordinance.

SOURCE: ; (01)IN1722.1.3. -->     SECTION 3. [EFFECTIVE UPON PASSAGE] IC 4-1-9 and IC 36-1-3-8.5 , both as added by this act, apply only to actions commenced after the effective date of this act.
SOURCE: ; (01)IN1722.1.4. -->     SECTION 4. An emergency is declared for this act.