January 27, 2004





HOUSE BILL No. 1096

_____


DIGEST OF HB 1096 (Updated January 21, 2004 5:37 pm - DI 107)



Citations Affected: IC 32-31.

Synopsis: Landlord-tenant law. Changes the definition of "tenant" to include individuals who formerly occupied the dwelling unit. Describes circumstances under which a landlord may enter a tenant's dwelling unit. Makes certain other changes.

Effective: July 1, 2004.





Pierce , Foley , Day




    January 15, 2004, read first time and referred to Committee on Judiciary.
    January 26, 2004, amended, reported _ Do Pass.






January 27, 2004

Second Regular Session 113th General Assembly (2004)


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 2003 Regular Session of the General Assembly.

HOUSE BILL No. 1096



    A BILL FOR AN ACT to amend the Indiana Code concerning property.

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

SOURCE: IC 32-31-3-3; (04)HB1096.1.1. -->     SECTION 1. IC 32-31-3-3, AS ADDED BY P.L.2-2002, SECTION 16, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 3. As used in this chapter, "landlord" means:
        (1) the owner lessor, or sublessor of a rental unit or the property of which the unit is a part; or
        (2) a person authorized to exercise any aspect of the management of the premises, including a person who directly or indirectly:
            (A) acts as a rental agent; or
            (B) receives rent or any part of the rent other than as a bona fide purchaser.
SOURCE: IC 32-31-3-8; (04)HB1096.1.2. -->     SECTION 2. IC 32-31-3-8, AS ADDED BY P.L.2-2002, SECTION 16, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 8. As used in this chapter, "rental unit" means:
        (1) a structure, or the part of a structure, that is used as a home, residence, or sleeping unit by:
            (A) one (1) individual who maintains a household; or
            (B) two (2) or more individuals who maintain a common

household; or
        (2) any grounds, facilities, or area promised for the use of a residential tenant, including the following:
            (A) An apartment unit.
            (B) A boarding house.
            (C) A rooming house.
            (D) A mobile home space. manufactured home (as defined in IC 22-12-1-16) or a mobile structure (as defined in IC 22-12-1-17) used as a dwelling, or the space on which a manufactured home or mobile structure is placed.
            (E) A single or two (2) family dwelling.

SOURCE: IC 32-31-3-9; (04)HB1096.1.3. -->     SECTION 3. IC 32-31-3-9, AS ADDED BY P.L.2-2002, SECTION 16, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 9. (a) As used in this chapter, "security deposit" means a deposit paid by a tenant to the landlord or the landlord's agent to be held for all or a part of the term of the rental agreement to secure performance of any obligation of the tenant under the rental agreement.
    (b) The term includes any of the following:
        (1) A required prepayment of rent other than the first full rental payment period of the lease agreement.
        (2) A sum required to be paid as rent in any rental period in excess of the average rent for the term. and
        (3) Any other amount of money or property returnable to the tenant on condition of return of the rental unit by the tenant in a condition as required by the rental agreement. compliance with this article.
    (c) The term does not include the following:
        (1) An amount paid for an option to purchase, under a lease with option to purchase, unless it is shown that the intent was to evade this chapter.
        (2) An amount paid as a subscription for or purchase of a membership in a cooperative housing association incorporated under Indiana law.
SOURCE: IC 32-31-3-10; (04)HB1096.1.4. -->     SECTION 4. IC 32-31-3-10, AS ADDED BY P.L.2-2002, SECTION 16, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 10. As used in this chapter, "tenant" means an individual who occupies or formerly occupied a rental unit:
        (1) for residential purposes; and
        (2) with the landlord's consent. and
        (3) for consideration that is agreed upon by both parties.
SOURCE: IC 32-31-3-12; (04)HB1096.1.5. -->     SECTION 5. IC 32-31-3-12, AS ADDED BY P.L.2-2002, SECTION 16, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE

JULY 1, 2004]: Sec. 12. (a) Upon termination of a rental agreement, a landlord shall return to the tenant the security deposit minus any amount applied to:
        (1) the payment of accrued rent;
        (2) the amount of damages that the landlord has suffered or will reasonably suffer by reason of the tenant's noncompliance with law or the rental agreement; this article; and
        (3) unpaid utility or sewer charges that the tenant is obligated to pay; under the rental agreement;
all as itemized by the landlord with the amount due in a written notice that is delivered to the tenant not more than forty-five (45) days after termination of the rental agreement and delivery of possession. The landlord is not liable under this chapter until the tenant supplies the landlord in writing with a mailing address to which to deliver the notice and amount prescribed by this subsection. Unless otherwise agreed,
    (b)
A tenant is not entitled to apply a security deposit to rent.
    (b) (c) If a landlord fails to comply with subsection (a), a tenant may recover all of the security deposit due the tenant and reasonable attorney's fees.
    (c) (d) This section does not preclude the landlord or tenant from recovering other damages to which either is entitled.
    (d) (e) The owner of the dwelling unit at the time of the termination of the rental agreement is bound by this section.

SOURCE: IC 32-31-3-13; (04)HB1096.1.6. -->     SECTION 6. IC 32-31-3-13, AS ADDED BY P.L.2-2002, SECTION 16, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 13. A security deposit may be used only for the following purposes:
        (1) To reimburse the landlord for actual damages to the rental unit or any ancillary facility that are not the result of ordinary wear and tear.
        (2) To pay the landlord for:
            (A) all rent in arrearage under the rental agreement; and
            (B) rent due for premature termination of the rental agreement. by the tenant.
        (3) To pay for the last payment period of a residential rental agreement if a written agreement between the landlord and the tenant stipulates that the security deposit will serve as the last payment. of rent due.
        (4) To reimburse the landlord for utility or sewer charges paid by the landlord that are:
            (A) the obligation of the tenant; under the rental agreement; and
            (B) unpaid by the tenant.
SOURCE: IC 32-31-3-14; (04)HB1096.1.7. -->     SECTION 7. IC 32-31-3-14, AS ADDED BY P.L.2-2002, SECTION 16, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 14. (a) Not more than forty-five (45) days after the termination of occupancy, a landlord shall mail to a tenant an itemized list of damages claimed for which the security deposit may be used under section 13 of this chapter.
     (b) The list must set forth:
        (1) the estimated cost of repair for each damaged item; and
        (2) the:
             (A) amounts; and
             (B) lease or lease terms;
        on which the landlord intends to assess the tenant.
    (c)
The landlord shall include with the list a check or money order for the difference between the damages claimed and the amount of the security deposit held by the landlord.
SOURCE: IC 32-31-3-17; (04)HB1096.1.8. -->     SECTION 8. IC 32-31-3-17, AS ADDED BY P.L.2-2002, SECTION 16, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 17. A waiver of the rights and obligations set forth in this chapter by a landlord or tenant is void.
SOURCE: IC 32-31-3-18; (04)HB1096.1.9. -->     SECTION 9. IC 32-31-3-18, AS ADDED BY P.L.2-2002, SECTION 16, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 18. (a) A landlord or a person authorized to enter into a rental agreement on behalf of the landlord shall disclose and furnish to the tenant in writing at or before the commencement of the rental agreement the names and addresses of the following:
        (1) A person residing in Indiana who is authorized to manage the dwelling unit.
        (2) A person residing in Indiana who is reasonably accessible to the tenant and who is authorized to act as agent for the owner for purposes of:
            (A) service of process; and
            (B) receiving and receipting for notices and demands.
A person who is identified as being authorized to manage under subdivision (1) may also be identified as the person authorized to act as agent under subdivision (2).
    (b) This section is enforceable against any successor landlord, owner, or manager.
    (c) A person who fails to comply with subsection (a) becomes an agent of each person who is a landlord for purposes of:
        (1) service of process and receiving and receipting for notices and demands; and
        (2) performing the obligations of the landlord under law or the rental agreement.
    (d) If the information required by subsection (a) is not disclosed at the beginning of the rental agreement, the tenant shall be allowed any expenses reasonably incurred to discover the names and addresses required to be furnished.
SOURCE: IC 32-31-3-19; (04)HB1096.1.10. -->     SECTION 10. IC 32-31-3-19, AS ADDED BY P.L.2-2002, SECTION 16, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 19. (a) Unless otherwise agreed, If a landlord conveys, in a good faith sale to a bona fide purchaser, property that includes a dwelling unit subject to a rental agreement, the landlord is relieved of liability under law or the rental agreement as to events occurring after written notice to the tenant of the conveyance. However, for one (1) year after giving notice of the conveyance, the landlord remains liable to the tenant for the security deposit to which the tenant is entitled under section 14 of this chapter unless:
        (1) the purchaser acknowledges that the purchaser has assumed the liability of the seller by giving notice to the tenant; and
        (2) upon conveyance the seller transfers the security deposit to the purchaser.
    (b) Unless otherwise agreed, A manager of a dwelling unit is relieved of any liability the manager might have under law or the rental agreement as to events occurring after written notice to the tenant of the termination of the manager's management.
SOURCE: IC 32-31-5-1; (04)HB1096.1.11. -->     SECTION 11. IC 32-31-5-1, AS ADDED BY P.L.2-2002, SECTION 16, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 1. (a) This chapter applies only to a rental agreement entered into or renewed after June 30, 1999.
    (b) This chapter applies to a landlord or tenant only if the rental agreement was entered into or renewed after June 30, 1999.
    (c) A waiver of the rights and obligations set forth in this chapter by a landlord or tenant, including a former tenant, by contract or otherwise, is void.
SOURCE: IC 32-31-5-6; (04)HB1096.1.12. -->     SECTION 12. IC 32-31-5-6, AS ADDED BY P.L.2-2002, SECTION 16, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 6. (a) This section does not apply if the dwelling unit has been abandoned.
    (b) For purposes of this section, a dwelling unit is considered abandoned if:
        (1) the tenants have failed to:
            (A) pay; or
            (B) offer to pay;
        rent due under the rental agreement; and
        (2) the circumstances are such that a reasonable person would conclude that the tenants have surrendered possession of the dwelling unit.
An oral or written rental agreement may not define abandonment differently than is provided by this subsection.
    (c) Except as authorized by judicial order, a landlord may not deny or interfere with a tenant's access to or possession of the tenant's dwelling unit by commission of any act, including the following:
        (1) Changing the locks or adding a device to exclude the tenant from the dwelling unit.
        (2) Removing the doors, windows, fixtures, or appliances from the dwelling unit.
        (3) Interrupting, reducing, shutting off, or causing termination of any of the following to a tenant:
            (A) Electricity.
            (B) Gas.
            (C) Water.
            (D) Other essential services.
        However, the landlord may interrupt, shut off, or terminate service as the result of an emergency, good faith repairs, or necessary construction. This subdivision does not require a landlord to pay for services described in this subdivision if the landlord has not agreed, by an oral or written rental agreement, to do so.
    (d) A tenant may not interrupt, reduce, shut off, or cause termination of:
        (1) electricity;
        (2) gas;
        (3) water; or
        (4) other essential services;
to the dwelling unit if the interruption, reduction, shutting off, or termination of the service will result in serious damage to the rental unit.
     (e) A tenant may not deny access upon notice by the landlord to enter into the dwelling unit to do any of the following:
        (1) Inspect the premises.
        (2) Make necessary or agreed repairs, decorations, alterations, or improvements.
        (3) Supply necessary or agreed services.
        (4) Exhibit the dwelling unit to prospective or actual purchasers, mortgagees, tenants, workers, or contractors.
    (f) A landlord may enter the dwelling unit without notice to the tenant in case of an emergency that threatens the safety of the occupants or the landlord's property.
    (g) Except as provided in subsection (f), or unless it is impracticable to do so, the landlord:
        (1) must give the tenant at least one (1) day's notice of the landlord's intent to enter the dwelling unit; and
        (2) may enter only at reasonable times.
    (h) A landlord has no other right of access except:
        (1) under a court order; or
        (2) when the tenant has abandoned or surrendered the dwelling unit.