HOUSE BILL No. 1178
DIGEST OF INTRODUCED BILL
Citations Affected: IC 27-2-15; IC 34-30-2-111.
Synopsis: Insurance proceeds set aside. Applies, to any municipality
or county that adopts an unsafe building law ordinance, the
requirement for insurance proceeds to be set aside to pay certain
expenses incurred by the municipality or county with respect to an
unsafe building damaged by fire or explosion. Makes conforming
amendments. Repeals a definition no longer used in these provisions.
Effective: July 1, 2006.
January 9, 2006, read first time and referred to Committee on Insurance.
Second Regular Session 114th General Assembly (2006)
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
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Additions: Whenever a new statutory provision is being enacted (or a new constitutional
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Conflict reconciliation: Text in a statute in this style type
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between statutes enacted by the 2005 Regular Session of the General Assembly.
HOUSE BILL No. 1178
A BILL FOR AN ACT to amend the Indiana Code concerning
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 27-2-15-4.3; (06)IN1178.1.1. -->
SECTION 1. IC 27-2-15-4.3 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2006]: Sec. 4.3. As used in this chapter, "local unit" refers to a:
(1) municipality; or
described in IC 36-7-9-1.
SOURCE: IC 27-2-15-5; (06)IN1178.1.2. -->
SECTION 2. IC 27-2-15-5 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 5. (a) If:
(1) a fire or explosion damages a building or other structure
located in a
city; local unit; and
(2) the enforcement authority of the
city local unit certifies to an
insurer that issued a policy covering the building or structure the
amount of demolition or rehabilitation expenses that the city local
unit anticipates incurring or has incurred under IC 36-7-9 in
connection with the building or structure;
the insurer shall remit to the
city local unit or the enforcement
authority the amount determined under subsection (c).
(b) To require the remittance of money under this section, an
enforcement authority must:
(1) provide the certification under subsection (a) within thirty (30)
days after the fire or explosion that damages the building or
(2) comply with subsection (c).
However, it is not necessary for the enforcement authority to provide
the certification within thirty (30) days after the fire or explosion if the
insurer fails to provide notice to the enforcement authority under
section 4.5 of this chapter within ten (10) days after the fire or
(c) The amount that must be remitted to the
city local unit or the
enforcement agency under subsection (a) is the lesser of:
(1) fifteen percent (15%) of the available insurance proceeds, if
(2) an amount equal to the amount certified.
(d) The amount remitted under this section shall be placed in an
interest bearing escrow account to be administered by the enforcement
authority and the
city. local unit. The insured shall be notified by the
enforcement authority of the actions taken under this section.
SOURCE: IC 27-2-15-6; (06)IN1178.1.3. -->
SECTION 3. IC 27-2-15-6 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 6. Upon a judgment
being rendered under IC 36-7-9-13(c) or IC 36-7-9-13(d), the
unit is entitled to the available insurance proceeds set aside to the
extent of the costs set forth in IC 36-7-9-12. All claims by the city local
unit against the available insurance proceeds must be made within one
(1) year after the date of the fire or explosion or within one (1) year
after the final outcome of a case or appeal initiated under IC 36-7-9,
whichever is later. Proceeds in the escrow account that are not claimed
in this manner shall be paid to the insured.
SOURCE: IC 27-2-15-9; (06)IN1178.1.4. -->
SECTION 4. IC 27-2-15-9 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 9. The state fire
marshal, a deputy fire marshal, an enforcement authority, or an officer
city local unit complying with this chapter or attempting in good
faith to comply with this chapter is immune from civil and criminal
liability in connection with actions taken under this chapter.
SOURCE: IC 34-30-2-111; (06)IN1178.1.5. -->
SECTION 5. IC 34-30-2-111 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 111. IC 27-2-15-9
(Concerning the state fire marshal, a deputy fire marshal, an
enforcement authority, or an officer of a
city local unit for compliance
with the statute concerning the set aside of insurance proceeds in arson
SOURCE: IC 27-2-15-2; (06)IN1178.1.6. -->
SECTION 6. IC 27-2-15-2 IS REPEALED [EFFECTIVE JULY 1,