MADAM PRESIDENT:
The Senate Committee on Rules and Legislative Procedure, to which was referred Senate Bill No. 9,
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:
Delete the title and insert the following:
A BILL FOR AN ACT to amend the Indiana Code concerning
trade regulation.
Delete everything after the enacting clause and insert the
following:
SECTION 1. IC 4-6-14-2, AS ADDED BY P.L.84-2010, SECTION 1,
IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1,
2011]: Sec. 2. As used in this chapter, "health care provider" means:
(1) a person listed in IC 16-39-7-1(a)(1) through
IC 16-39-7-1(a)(11); or
(2) a person licensed, certified, registered, or regulated by a
board listed in IC 25-1-9-1.
SOURCE: IC 24-4.7-2-2; (11)LS7396.2. -->
SECTION 2. IC 24-4.7-2-2 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 2. (a) "Consumer"
means a residential telephone subscriber who: is an actual or a
prospective:
(1) for the telephone service received:
(A) has a place of primary use in Indiana; or
(B) is issued an Indiana telephone number or an Indiana
identification number; and
(2) is an actual or a prospective:
(1) (A) purchaser, lessee, or recipient of consumer goods or
services; or
(2) (B) donor to a charitable organization.
(b) The term includes a user of a prepaid wireless calling
service (as defined in IC 6-2.5-1-22.4) who:
(1) is issued an Indiana telephone number or an Indiana
identification number for the service; or
(2) purchases prepaid wireless calling service in a retail
transaction that is sourced to Indiana (as determined under
IC 6-2.5-12-16).
SOURCE: IC 24-4.7-2-5; (11)LS7396.3. -->
SECTION 3. IC 24-4.7-2-5 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 5. "Doing business
in Indiana" means:
(1) making; or
(2) causing others to make;
telephone sales calls to consumers located in Indiana whether the
telephone sales calls are made from a location in Indiana or outside
Indiana.
SOURCE: IC 24-4.7-2-7; (11)LS7396.4. -->
SECTION 4. IC 24-4.7-2-7 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 7. "Listing" refers
to the no telephone sales solicitation listing published by the division
under IC 24-4.7-3 that lists the names telephone numbers of persons
consumers who do not wish to receive telephone sales calls.
SOURCE: IC 24-4.7-2-7.5; (11)LS7396.5. -->
SECTION 5. IC 24-4.7-2-7.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 7.5. "Place of primary use",
with respect to a telephone subscriber, means the street address
representative of where the subscriber's use of the telephone
service primarily occurs, which must be:
(1) the residential street address of the subscriber or, in the
case of a subscriber of interconnected VOIP service, the
subscriber's registered location (as defined in 47 CFR 9.3);
and
(2) in the case of mobile telecommunications services (as
defined in IC 6-8.1-15-7), within the licensed service area of
the home service provider, as set forth in IC 6-8.1-15-8.
SOURCE: IC 24-4.7-2-8; (11)LS7396.6. -->
SECTION 6. IC 24-4.7-2-8 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 8. "Telephone
number" means a residential telephone number that:
(1) is assigned to a subscriber who has a place of primary use
in Indiana; or
(2) otherwise represents an Indiana telephone number or is
associated with an Indiana identification number.
SOURCE: IC 24-4.7-2-9; (11)LS7396.7. -->
SECTION 7. IC 24-4.7-2-9 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 9. (a) "Telephone
sales call" means a telephone call made to a consumer for any of the
following purposes:
(1) Solicitation of a sale of consumer goods or services.
(2) Solicitation of a charitable contribution.
(3) Obtaining information that will or may be used for the direct
solicitation of a sale of consumer goods or services or an
extension of credit for such purposes.
(b) The term includes any of the following:
(1) A call made by use of an automated dialing or device.
defraud or mislead. The term includes a failure of a transferee of
structured settlement payment rights to timely provide a true and
complete disclosure statement to a payee as provided under
IC 34-50-2 in connection with a direct or indirect transfer of
structured settlement payment rights.
(9) "Pyramid promotional scheme" means any program utilizing
a pyramid or chain process by which a participant in the program
gives a valuable consideration exceeding one hundred dollars
($100) for the opportunity or right to receive compensation or
other things of value in return for inducing other persons to
become participants for the purpose of gaining new participants
in the program. The term does not include ordinary sales of
goods or services to persons who are not purchasing in order to
participate in such a scheme.
(10) "Promoting a pyramid promotional scheme" means:
(A) inducing or attempting to induce one (1) or more other
persons to become participants in a pyramid promotional
scheme; or
(B) assisting another in promoting a pyramid promotional
scheme.
(11) "Elderly person" means an individual who is at least
sixty-five (65) years of age.
(12) "Telephone facsimile machine" means equipment that has
the capacity to transcribe text or images, or both, from:
(A) paper into an electronic signal and to transmit that
signal over a regular telephone line; or
(B) an electronic signal received over a regular telephone
line onto paper.
(13) "Unsolicited advertisement" means material advertising the
commercial availability or quality of:
(A) property;
(B) goods; or
(C) services;
that is transmitted to a person without the person's prior express
invitation or permission, in writing or otherwise.
(14) "Debt" has the meaning set forth in 15 U.S.C. 1692a(5).
(b) As used in section 3(a)(15) and 3(a)(16) of this chapter:
(1) "Directory assistance" means the disclosure of telephone
number information in connection with an identified telephone
service subscriber by means of a live operator or automated
service.
(2) "Local telephone directory" refers to a telephone classified
advertising directory or the business section of a telephone
directory that is distributed by a telephone company or directory
publisher to subscribers located in the local exchanges contained
in the directory. The term includes a directory that includes
listings of more than one (1) telephone company.
(3) "Local telephone number" refers to a telephone number that
has the three (3) number prefix used by the provider of telephone
service for telephones physically located within the area covered
by the local telephone directory in which the number is listed.
The term does not include long distance numbers or 800-, 888-,
or 900- exchange numbers listed in a local telephone directory.
SOURCE: IC 24-5-0.5-3; (11)LS7396.10. -->
SECTION 10. IC 24-5-0.5-3, AS AMENDED BY P.L.1-2009,
SECTION 137, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2011]: Sec. 3. (a) The following acts, and the
following representations as to the subject matter of a consumer
transaction, made orally, in writing, or by electronic communication,
by a supplier, are deceptive acts:
(1) That such subject of a consumer transaction has sponsorship,
approval, performance, characteristics, accessories, uses, or
benefits it does not have which the supplier knows or should
reasonably know it does not have.
(2) That such subject of a consumer transaction is of a particular
standard, quality, grade, style, or model, if it is not and if the
supplier knows or should reasonably know that it is not.
(3) That such subject of a consumer transaction is new or
unused, if it is not and if the supplier knows or should reasonably
know that it is not.
(4) That such subject of a consumer transaction will be supplied
to the public in greater quantity than the supplier intends or
reasonably expects.
(5) That replacement or repair constituting the subject of a
consumer transaction is needed, if it is not and if the supplier
knows or should reasonably know that it is not.
(6) That a specific price advantage exists as to such subject of a
consumer transaction, if it does not and if the supplier knows or
should reasonably know that it does not.
(7) That the supplier has a sponsorship, approval, or affiliation
in such consumer transaction the supplier does not have, and
which the supplier knows or should reasonably know that the
supplier does not have.
(8) That such consumer transaction involves or does not involve
a warranty, a disclaimer of warranties, or other rights, remedies,
or obligations, if the representation is false and if the supplier
knows or should reasonably know that the representation is false.
(9) That the consumer will receive a rebate, discount, or other
benefit as an inducement for entering into a sale or lease in
return for giving the supplier the names of prospective
consumers or otherwise helping the supplier to enter into other
consumer transactions, if earning the benefit, rebate, or discount
is contingent upon the occurrence of an event subsequent to the
time the consumer agrees to the purchase or lease.
(10) That the supplier is able to deliver or complete the subject
of the consumer transaction within a stated period of time, when
the supplier knows or should reasonably know the supplier could
not. If no time period has been stated by the supplier, there is a
presumption that the supplier has represented that the supplier
will deliver or complete the subject of the consumer transaction
within a reasonable time, according to the course of dealing or
the usage of the trade.
(11) That the consumer will be able to purchase the subject of
the consumer transaction as advertised by the supplier, if the
supplier does not intend to sell it.
(12) That the replacement or repair constituting the subject of a
consumer transaction can be made by the supplier for the
estimate the supplier gives a customer for the replacement or
repair, if the specified work is completed and:
(A) the cost exceeds the estimate by an amount equal to or
greater than ten percent (10%) of the estimate;
(B) the supplier did not obtain written permission from the
customer to authorize the supplier to complete the work
even if the cost would exceed the amounts specified in
clause (A);
(C) the total cost for services and parts for a single
transaction is more than seven hundred fifty dollars ($750);
and
(D) the supplier knew or reasonably should have known that
the cost would exceed the estimate in the amounts specified
in clause (A).
(13) That the replacement or repair constituting the subject of a
consumer transaction is needed, and that the supplier disposes of
the part repaired or replaced earlier than seventy-two (72) hours
after both:
(A) the customer has been notified that the work has been
completed; and
(B) the part repaired or replaced has been made available
for examination upon the request of the customer.
(14) Engaging in the replacement or repair of the subject of a
consumer transaction if the consumer has not authorized the
replacement or repair, and if the supplier knows or should
reasonably know that it is not authorized.
(15) The act of misrepresenting the geographic location of the
supplier by listing a fictitious business name or an assumed
business name (as described in IC 23-15-1) in a local telephone
directory if:
(A) the name misrepresents the supplier's geographic
location;
(B) the listing fails to identify the locality and state of the
supplier's business;
(C) calls to the local telephone number are routinely
forwarded or otherwise transferred to a supplier's business
location that is outside the calling area covered by the local
telephone directory; and
(D) the supplier's business location is located in a county
that is not contiguous to a county in the calling area covered
by the local telephone directory.
(16) The act of listing a fictitious business name or assumed
business name (as described in IC 23-15-1) in a directory
assistance database if:
fraud), as set forth in IC 24-5.5-6-1.
(36) A violation of IC 24-8 (concerning promotional gifts and
contests), as set forth in IC 24-8-6-3.
(b) Any representations on or within a product or its packaging or
in advertising or promotional materials which would constitute a
deceptive act shall be the deceptive act both of the supplier who places
such representation thereon or therein, or who authored such materials,
and such other suppliers who shall state orally or in writing that such
representation is true if such other supplier shall know or have reason
to know that such representation was false.
(c) If a supplier shows by a preponderance of the evidence that an
act resulted from a bona fide error notwithstanding the maintenance of
procedures reasonably adopted to avoid the error, such act shall not be
deceptive within the meaning of this chapter.
(d) It shall be a defense to any action brought under this chapter
that the representation constituting an alleged deceptive act was one
made in good faith by the supplier without knowledge of its falsity and
in reliance upon the oral or written representations of the manufacturer,
the person from whom the supplier acquired the product, any testing
organization, or any other person provided that the source thereof is
disclosed to the consumer.
(e) For purposes of subsection (a)(12), a supplier that provides
estimates before performing repair or replacement work for a customer
shall give the customer a written estimate itemizing as closely as
possible the price for labor and parts necessary for the specific job
before commencing the work.
(f) For purposes of subsection (a)(15) and (a)(16), a telephone
company or other provider of a telephone directory or directory
assistance service or its officer or agent is immune from liability for
publishing the listing of a fictitious business name or assumed business
name of a supplier in its directory or directory assistance database
unless the telephone company or other provider of a telephone
directory or directory assistance service is the same person as the
supplier who has committed the deceptive act.
(g) For purposes of subsection (a)(18), it is an affirmative defense
to any action brought under this chapter that the product has been
altered by a person other than the defendant to render the product
completely incapable of serving its original purpose.
SOURCE: IC 24-5-0.5-4; (11)LS7396.11. -->
SECTION 11. IC 24-5-0.5-4, AS AMENDED BY P.L.85-2006,
SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2011]: Sec. 4. (a) A person relying upon an uncured or
incurable deceptive act may bring an action for the damages actually
suffered as a consumer as a result of the deceptive act or five hundred
dollars ($500), whichever is greater. The court may increase damages
for a willful deceptive act in an amount that does not exceed the greater
of:
(1) three (3) times the actual damages of the consumer suffering
the loss; or
(2) one thousand dollars ($1,000).
Except as provided in subsection (j), the court may award reasonable
attorney fees to the party that prevails in an action under this
subsection. This subsection does not apply to a consumer transaction
in real property, including a claim or action involving a construction
defect (as defined in IC 32-27-3-1(5)) brought against a construction
professional (as defined in IC 32-27-3-1(4)), except for purchases of
time shares and camping club memberships. This subsection does not
apply with respect to a deceptive act described in section 3(a)(20)
of this chapter. This subsection also does not apply to a violation of
IC 24-4.7, IC 24-5-12, or IC 24-5-14. Actual damages awarded to a
person under this section have priority over any civil penalty imposed
under this chapter.
(b) Any person who is entitled to bring an action under subsection
(a) on the person's own behalf against a supplier for damages for a
deceptive act may bring a class action against such supplier on behalf
of any class of persons of which that person is a member and which has
been damaged by such deceptive act, subject to and under the Indiana
Rules of Trial Procedure governing class actions, except as herein
expressly provided. Except as provided in subsection (j), the court may
award reasonable attorney fees to the party that prevails in a class
action under this subsection, provided that such fee shall be determined
by the amount of time reasonably expended by the attorney and not by
the amount of the judgment, although the contingency of the fee may
be considered. Any money or other property recovered in a class action
under this subsection which cannot, with due diligence, be restored to
consumers within one (1) year after the judgment becomes final shall
be returned to the party depositing the same. This subsection does not
apply to a consumer transaction in real property, except for purchases
of time shares and camping club memberships. This subsection does
not apply with respect to a deceptive act described in section
3(a)(20) of this chapter. Actual damages awarded to a class have
priority over any civil penalty imposed under this chapter.
(c) The attorney general may bring an action to enjoin a deceptive
act, including a deceptive act described in section 3(a)(20) of this
chapter, notwithstanding subsections (a) and (b). However, the
attorney general may seek to enjoin patterns of incurable deceptive acts
with respect to consumer transactions in real property. In addition, the
court may:
(1) issue an injunction;
(2) order the supplier to make payment of the money unlawfully
received from the aggrieved consumers to be held in escrow for
distribution to aggrieved consumers;
(3) order the supplier to pay to the state the reasonable costs of
the attorney general's investigation and prosecution related to the
action; and
(4) provide for the appointment of a receiver.
(d) In an action under subsection (a), (b), or (c), the court may void
or limit the application of contracts or clauses resulting from deceptive
acts and order restitution to be paid to aggrieved consumers.
(e) In any action under subsection (a) or (b), upon the filing of the
complaint or on the appearance of any defendant, claimant, or any
other party, or at any later time, the trial court, the supreme court, or the
court of appeals may require the plaintiff, defendant, claimant, or any
other party or parties to give security, or additional security, in such
sum as the court shall direct to pay all costs, expenses, and
disbursements that shall be awarded against that party or which that
party may be directed to pay by any interlocutory order by the final
judgment or on appeal.
(f) Any person who violates the terms of an injunction issued
under subsection (c) shall forfeit and pay to the state a civil penalty of
not more than fifteen thousand dollars ($15,000) per violation. For the
purposes of this section, the court issuing an injunction shall retain
jurisdiction, the cause shall be continued, and the attorney general
acting in the name of the state may petition for recovery of civil
penalties. Whenever the court determines that an injunction issued
under subsection (c) has been violated, the court shall award
reasonable costs to the state.
(g) If a court finds any person has knowingly violated section 3 or
10 of this chapter, other than section 3(a)(19) of this chapter, the
attorney general, in an action pursuant to subsection (c), may recover
from the person on behalf of the state a civil penalty of a fine not
exceeding five thousand dollars ($5,000) per violation.
(h) If a court finds that a person has violated section 3(a)(19) of
this chapter, the attorney general, in an action under subsection (c),
may recover from the person on behalf of the state a civil penalty as
follows:
(1) For a knowing or intentional violation, one thousand five
hundred dollars ($1,500).
(2) For a violation other than a knowing or intentional violation,
five hundred dollars ($500).
A civil penalty recovered under this subsection shall be deposited in
the consumer protection division telephone solicitation fund
established by IC 24-4.7-3-6 to be used for the administration and
enforcement of section 3(a)(19) of this chapter.
(i) An elderly person relying upon an uncured or incurable
deceptive act, including an act related to hypnotism, may bring an
action to recover treble damages, if appropriate.
(j) An offer to cure is:
(1) not admissible as evidence in a proceeding initiated under
this section unless the offer to cure is delivered by a supplier to
the consumer or a representative of the consumer before the
supplier files the supplier's initial response to a complaint; and
(2) only admissible as evidence in a proceeding initiated under
this section to prove that a supplier is not liable for attorney's
fees under subsection (k).
If the offer to cure is timely delivered by the supplier, the supplier may
submit the offer to cure as evidence to prove in the proceeding in
accordance with the Indiana Rules of Trial Procedure that the supplier
made an offer to cure.
(k) A supplier may not be held liable for the attorney's fees and
court costs of the consumer that are incurred following the timely
delivery of an offer to cure as described in subsection (j) unless the
actual damages awarded, not including attorney's fees and costs, exceed
the value of the offer to cure.
SOURCE: IC 24-9-2-7; (11)LS7396.12. -->
SECTION 12. IC 24-9-2-7 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 7. (a) "Deceptive act"
means an act or a practice as part of a consumer credit mortgage
transaction involving real property located in Indiana (as defined in
IC 24-9-3-7(a)), or of a real estate transaction (as defined in
IC 24-9-3-7(b)), in which a person at the time of the transaction
knowingly or intentionally:
(1) makes a material misrepresentation; or
(2) conceals material information regarding the terms or
conditions of the transaction.
(b) For purposes of this section, "knowingly" means having actual
knowledge at the time of the transaction.
SOURCE: IC 27-7-3-15.5; (11)LS7396.13. -->
SECTION 13. IC 27-7-3-15.5, AS AMENDED BY P.L.35-2010,
SECTION 96, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 15.5. (a) This section applies to a transaction
that: the following transactions:
(1) is a single family residential: A mortgage transaction (as
defined in IC 24-9-3-7(a)) that:
(A) is:
(i) a first lien purchase money mortgage transaction; or
(B) (ii) a refinancing transaction; and
(2) (B) is closed by a closing agent after December 31,
2009.
(2) A real estate transaction (as defined in IC 24-9-3-7(b))
that:
(A) does not involve a mortgage transaction described in
subdivision (1);
(B) is closed by a closing agent (as defined in
IC 6-1.1-12-43(a)(2)) after December 31, 2011.
(b) For purposes of this subsection, a person described in this
subsection is involved in a transaction to which this section applies
if the person participates in or assists with, or will participate in or
assist with, a transaction to which this section applies. Not later than
September 1, 2009, The department shall establish and maintain an
electronic system for the collection and storage of the following
information, to the extent applicable, concerning any of the following
persons that have participated in or assisted with a transaction to which
this section applies, or that will participate in or assist with a
transaction to which this section applies:
(1) In the case of a transaction described in subsection (a)(1),
the name and license number (under IC 23-2-5) of each loan
brokerage business involved in the transaction.
(2) In the case of a transaction described in subsection (a)(1),
the name and license or registration number of any mortgage
loan originator who is:
(A) either licensed or registered under state or federal law
as a mortgage loan originator consistent with the Secure and
Fair Enforcement for Mortgage Licensing Act of 2008 (H.R.
3221 Title V); and
(B) involved in the transaction.
(3) The name and license number (under IC 25-34.1) of each:
(A) principal broker; and
(B) salesperson or broker-salesperson, if any;
involved in the transaction.
(4) The following information:
(A) The:
(i) name of; and
(B) (ii) code assigned by the National Association of
Insurance Commissioners (NAIC) to;
each title insurance underwriter involved in the transaction.
(B) The type of title insurance policy issued in
connection with the transaction.
(5) The name and license number (under IC 27-1-15.6) of each
title insurance agency and agent involved in the transaction as a
closing agent (as defined in IC 6-1.1-12-43(a)(2)).
(6) The following information:
(A) The name and:
(A) (i) license or certificate number (under
IC 25-34.1-3-8) of each licensed or certified real estate
appraiser; or
(B) (ii) license number (under IC 25-34.1) of each
broker;
who appraises the property that is the subject of the
transaction.
(B) The appraised value of the property that is the
subject of the transaction, as determined as part of any
appraisal (as defined in IC 24-5-23.5-1) prepared in
connection with the transaction.
(C) The name and registration number (under
IC 25-34.1-11-10) of any appraisal management
company that performs appraisal management services
(as defined in IC 25-34.1-11-3) in connection with the
transaction.
(7) In the case of a transaction described in subsection (a)(1),
the name of the mortgagee creditor and, if the mortgagee
creditor is required to be licensed under IC 24-4.4, the license
number of the mortgagee. creditor.
(8) In the case of a first lien purchase money mortgage
transaction described in subsection (a)(1)(A)(i) or (a)(2), the
name of the seller of the property that is the subject of the
transaction.
(9) In the case of a first lien purchase money mortgage
transaction described in subsection (a)(1)(A)(i), the following
information:
(A) The name of the buyer of the property that is the subject
of the transaction.
(B) The purchase price of the property that is the
subject of the transaction.
(C) The loan amount of the mortgage transaction.
(10) In the case of a transaction described in subsection
(a)(2), the following information:
(A) The name of the buyer of the property that is the
subject of the transaction.
(B) The purchase price of the property that is the
subject of the transaction.
(11) In the case of a transaction described in subsection
(a)(1)(A)(ii), the following information:
(A) The name of the borrower in the mortgage
transaction.
(B) The loan amount of the refinancing.
(10) (12) The:
(A) name; and
(B) license number, certificate number, registration number,
or other code, as appropriate;
of any other person that participates in or assists with is involved
in a transaction to which this section applies, as the department
may prescribe.
(c) The system established by the department under this section
must include a form that:
(1) is uniformly accessible in an electronic format to the closing
agent (as defined in IC 6-1.1-12-43(a)(2)) in the transaction; and
(2) allows the closing agent to do the following:
(A) Input information identifying the property that is the
subject of the transaction by lot or parcel number, street
address, or some other means of identification that the
department determines:
(i) is sufficient to identify the property; and
(ii) is determinable by the closing agent.
(B) Subject to subsection (d) and to the extent determinable,
input the applicable information described in subsection
(b). with respect to each person described in subsection (b)
that participates in or assists with the transaction.
(C) Respond to the following questions, if applicable:
(i) "On what date did you receive the closing
instructions from the creditor in the transaction?".
(ii) "On what date did the transaction close?".
(D) Submit the form electronically to a data base
maintained by the department.
(d) Not later than the time of the closing, each person described in
subsection (b), other than a person described in subsection (b)(8), or
(b)(9), (b)(10), or (b)(11), shall provide to the closing agent in the
transaction the person's:
(1) legal name; and
(2) license number, certificate number, registration number, or
NAIC code, as appropriate;
to allow the closing agent to comply with subsection (c)(2)(B). A In
the case of a transaction described in subsection (a)(1), the person
described in subsection (b)(7) shall, with the cooperation of any
person involved in the transaction and described in subsection
(b)(6)(A) or (b)(6)(C), provide the information required by this
subsection for any person described in subsection (b)(6). that appraises
the property that is the subject of the transaction on behalf of the
person described in subsection (b)(7). In the case of a transaction
described in subsection (a)(1)(A)(ii), the person described in
subsection (b)(7) shall also provide the information described in
subsection (b)(11). A person described in subsection (b)(3)(B) who is
involved in the transaction may provide the information required by
this subsection for a person described in subsection (b)(3)(A) that
serves as the principal broker for the person described in subsection
(b)(3)(B). In the case of a first lien purchase money mortgage
transaction, The closing agent shall determine the information
described in subsection (b)(8), and (b)(9), and (b)(10) from the HUD-1
settlement statement, or in the case of a transaction described in
subsection (a)(2), from the contract or any other document
executed by the parties in connection with the transaction.
(e) Except for a person described in subsection (b)(8), or (b)(9),
(b)(10), or (b)(11), a person described in subsection (b) who fails to
comply with subsection (d) is subject to a civil penalty of one hundred
dollars ($100) for each closing with respect to which the person fails
to comply with subsection (d). The penalty:
(1) may be enforced by the state agency that has administrative
jurisdiction over the person in the same manner that the agency
enforces the payment of fees or other penalties payable to the
agency; and
(2) shall be paid into the home ownership education account
established by IC 5-20-1-27.
(f) Subject to subsection (g), the department shall make the
information stored in the data base described in subsection (c)(2)(D)
accessible to:
(1) each entity described in IC 4-6-12-4; and
(2) the homeowner protection unit established under
IC 4-6-12-2.
(g) The department, a closing agent who submits a form under
subsection (c), each entity described in IC 4-6-12-4, and the
homeowner protection unit established under IC 4-6-12-2 shall exercise
all necessary caution to avoid disclosure of any information:
(1) concerning a person described in subsection (b), including
the person's license, registration, or certificate number; and
(2) contained in the data base described in subsection (c)(2)(D);
except to the extent required or authorized by state or federal law.
(h) The department may adopt rules under IC 4-22-2, including
emergency rules under IC 4-22-2-37.1, to implement this section.
Rules adopted by the department under this subsection may establish
procedures for the department to:
(1) establish;
(2) collect; and
(3) change as necessary;
and when so amended that said bill be reassigned to the Senate Committee on Commerce and Economic
Development.