Bill Summary – FastDemocracy

LEGISLATIVE SERVICES AGENCY
                OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
                                    200 W. Washington St., Suite 301
                                         Indianapolis, IN 46204
                                             (317) 233-0696
                                                iga.in.gov
                                FISCAL IMPACT STATEMENT
LS 6506                                                            NOTE PREPARED: Feb 22, 2021
BILL NUMBER: SB 116                                                BILL AMENDED: Feb 22, 2021
SUBJECT: Landlord-Tenant Settlement Conference Program.
FIRST AUTHOR: Sen. Tallian                                         BILL STATUS: 2nd Reading - 1st House
FIRST SPONSOR:
FUNDS AFFECTED: X GENERAL                                          IMPACT: State & Local
                X DEDICATED
                  FEDERAL
Summary of Legislation: The bill provides, for a two-year period and contingent upon the availability of
specified funds, that: (1) the jurisdictional amount in small claims court is $20,000 in residential landlord
tenant cases (under current law, the amount is $8,000); and (2) a small claims court may require parties to
a possessory action involving a dwelling unit to participate in the Supreme Court's Landlord Tenant
Settlement Conference Program.
Effective Date: Upon passage.
Explanation of State Expenditures: Summary - If the number of program participants increases, the bill
could increase state expenditures to pay for program facilitators after residential evictions and mortgage
moratoriums expire. The program facilitators receive $150 for conducting the settlement conference and $25
for scheduling.
The Indiana Supreme Court, the Indiana Bar Foundation, and the Office of the Governor have collaborated
to support the program. The total amount allocated for the program is about $750,000 (or $250,000 from each
agency).
There are at least 42 contract mediators and attorneys, plus some senior judges, serving as program
facilitators. The Supreme Court has received at least 300 facilitation requests. Of the 300 submissions, the
program has assigned 20-30 facilitators. It is unknown how many residential landlord-tenant disputes are
dismissed or resolved without further court intervention. [This fiscal note will be updated as additional
information becomes available.]
SB 116                                               1
Additional Information - The Landlord-Tenant Settlement Conference Program provides facilitation services
to help residential landlords and tenants to talk about their situation and to see if an agreement can be reached
between the parties before the court makes a decision in the eviction case. The landlord may still file a case
with the court before or after participating in the program. Residential landlords and tenants wanting to
participate in a settlement conference are required to submit a facilitation request. Both parties must agree
to participate in the program before a facilitator can be assigned. Once both parties have agreed to participate,
a facilitator will be assigned to work with the parties. The program provides that only one settlement
conference is permitted between the parties under the program. Also, the program is available to parties in
foreclosure cases.
The state moratorium on evictions ended August 14, 2020. The Centers for Disease Control and Prevention’s
(CDC) moratorium on certain residential evictions expires on March 31, 2021. Also, the federal Housing
and Urban Development (HUD) and Federal Housing Administration (FHA) Single Family mortgage
property moratorium expires on February 28, 2021. As the state and federal moratoriums are lifted, it is
possible the courts will experience a backlog of eviction and mortgage foreclosure cases.
Explanation of State Revenues: The bill increases the jurisdictional limit for possessory actions between
a landlord and tenant to $20,000 for circuit, superior, probate, small claims, and Marion County small claims
courts. If the case is filed in a small claims court, the bill would reduce the revenue from civil filing fees and
court administration fees that would be deposited into the state General Fund by an indeterminable amount.
Court Fee Revenue: The fee for a small claims case is $35, of which $24.50 is deposited in the state General
Fund. Consequently, the revenue loss to the state General Fund is $45.50 for each case that would otherwise
have been filed as a civil case.
Marion County: Increasing the jurisdictional amount to $20,000 will increase the number of filings in Marion
County Township Small Claims Courts and reduce the number in Marion County trial courts. If an eviction
action is filed in Marion County township small claims court, the state General Fund will lose $70 (70% of
the $100 civil filing fee) for every case that is no longer filed in Marion County trial courts. The bill will also
reduce the amount of revenue deposited into the general fund of Marion County and increase the revenue
deposited into the general funds of Marion County’s townships by $37.
Revenue from the document storage fee ($2), document fee ($1), and service fee ($10) would also be lost
to the Marion County general fund if persons no longer file civil cases in Marion County trial courts.
Explanation of Local Expenditures: (Revised) Courts: The bill could potentially reduce the courts'
caseload to process eviction and mortgage foreclosure cases if more participants can reach a settlement
agreement through the landlord-tenant program without court intervention.
Increasing Jurisdictional Threshold: The bill increases the jurisdictional threshold to $20,000 for the circuit,
superior, probate, small claims, and Marion County small claims courts. As a result, the bill may increase
the caseload of the small claims courts and reduce the caseload for the trial courts. However, the actual
increase would depend on local action.
In CY 2019, there were 87,355 cases disposed in small claims court and 133,737 cases were disposed in trial
courts. It is unknown how many possessory actions between a landlord and tenant are heard in court. No
information is available regarding the number of cases where the amounts are between $8,000 and $20,000.
SB 116                                                  2
Explanation of Local Revenues: (See Explanation of State Revenues.)
State Agencies Affected: Indiana Supreme Court.
Local Agencies Affected: Courts (circuit, superior, probate, and small claims court); Marion County Small
Claims Courts.
Information Sources: Office of Judicial Administration, Indiana Supreme Court; Landlord and Tenant
Settlement Conference Program, https://www.in.gov/courts/selfservice/facilitate/; Public Health Service Act,
Section 361, 42 U.S.C. 264 and 42 CFR 70.2; Landlord Tenant Task Force Report, July 29, 2020,
https://www.in.gov/courts/files/lltf-report.pdf; Appendix H: Guidelines for Judges Handling Evictions After
Moratoria Expire, https://www.in.gov/courts/files/lttf-h-guidelines-for-cts-handing-evcts.pdf; Trial Court
Statistic by County, 2019 Data, https://publicaccess.courts.in.gov/ICOR/; Program Facilitators Information
Overview, https://www.in.gov/courts/selfservice/files/lt-mediator-attorney-overview.pdf.
Fiscal Analyst: Corrin Harvey, 234-9438.
SB 116                                               3
Statutes affected: 
2. Senate Bill (S): 33-28-3-4, 33-29-2-4, 33-31-2-3, 33-34-3-3
3. Senate Bill (S): 33-28-3-4, 33-29-2-4, 33-31-2-3, 33-34-3-3
4. Engrossed Senate Bill (S): 33-28-3-4, 33-29-2-4, 33-31-2-3, 33-34-3-3