Section 36-1-4-22 - [Effective 7/1/2024] "License bond"; conditions for sufficiency; filing copy with political subdivision(a) As used in this section, "license bond" refers to a surety bond required by a political subdivision as a condition that the political subdivision issue a license or a permit to a person. The term does not refer to a performance bond.
(b) If a political subdivision requires a person to post a license bond, a surety bond posted by the person is considered sufficient if the following conditions are satisfied:(1) The bond is written by a surety company authorized to transact business in Indiana.(2) The obligation on the bond is for an amount that is at least the amount required by the political subdivision for the issuance of the particular license or permit. A political subdivision may not require the obligation on a license bond to be more than fifteen thousand dollars ($15,000).(3) The obligee or obligees named on the bond are any of the following: (A) The political subdivision that requires the license bond.(B) Specifically named political subdivisions in the county that include the name of the political subdivision that requires the license bond.(C) All political subdivisions in the county in which the political subdivision that requires the license bond is located.(D) All political subdivisions of the same kind as the political subdivision that requires the license bond located in the county.(4) The conditions of the bond otherwise comply with the requirements of the ordinance that imposes the license bond condition.(c) A person required to post a license bond satisfies the posting requirement if the person files a copy of the license bond with the political subdivision or appropriate agency of the political subdivision that requires the license bond. A political subdivision may not require that the person record the license bond. In addition, a political subdivision may not impose any other requirement to identify the particular political subdivision as an obligee on the license bond other than what is required in subsection (b)(3).(d) Nothing in this section may be construed to prohibit a political subdivision from requiring a person to meet registration requirements in order to ensure that the person meets professional standards or qualifications necessary for the person to perform the services for which the license bond is required.(e) This subsection does not apply to a person that has had a license bond revoked by a political subdivision located in the same county as the political subdivision that is named an obligee on the licensee bond within one (1) year prior to the date the political subdivision refused to recognize the license bond that is subject to this subsection. If a license bond meets the requirements described in subsection (b) and a political subdivision that is named as an obligee on the license bond in the manner provided in subsection (b)(3) does not recognize or otherwise allow the obligor to post the license bond to obtain a license or permit, the obligor may initiate a civil action against the political subdivision. In a successful civil action against the political subdivision, the court shall award the obligor an amount equal to:(1) three hundred percent (300%) of the cost of obtaining the license bond;(2) damages compensating the obligor for the political subdivision's failure to recognize or otherwise allow the obligor to post the license bond; and(3) reasonable attorney's fees.Amended by P.L. 157-2024,SEC. 6, eff. 7/1/2024.Added by P.L. 123-2019,SEC. 1, eff. 7/1/2019.This section is set out more than once due to postponed, multiple, or conflicting amendments.