HB 1209

                                                           Introduced Version
          HOUSE BILL No. 1209
                _____
              DIGEST OF INTRODUCED BILL
Citations Affected: IC 36-1.
Synopsis: Municipal collection protocols. Effective January 1, 2027,
establishes requirements for the provision of invoices and delinquency
notices for certain municipal accounts. Requires the state board of
accounts to prescribe forms for an invoice and a notice of a delinquent
account. Requires municipal officers and employees with oversight
responsibilities or access to the municipality's financial payment
system to be segregated from the responsibilities of reporting or
recording payments received. Requires a municipal officer whose
official duties include oversight of reporting, recording, or monitoring
of the municipality's accounts to not have access to the officer's own
personal account.
Effective: July 1, 2026.
                              Olthoff
   January 5, 2026, read first time and referred to Committee on Local Government.
2026  IN 1209—LS 6850/DI 87
                                                                                       Introduced
            Second Regular Session of the 124th General Assembly (2026)
 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 2025 Regular Session of the General Assembly.
                   HOUSE BILL No. 1209
    A BILL FOR AN ACT to amend the Indiana Code concerning local
 government.
     Be it enacted by the General Assembly of the State of Indiana:
1    SECTION 1. IC 36-1-8.6 IS ADDED TO THE INDIANA CODE
2 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2026]:
4    Chapter 8.6. Municipal Collections
5    Sec. 1. This chapter applies to a municipality after December 31,
6 2026.
7    Sec. 2. Notwithstanding any other law, this chapter establishes
8 requirements for invoices and delinquency notices issued by a
9 municipality. However, this chapter does not apply to invoices and
10 notices for collection of:
11      (1) a tax, special assessment, or other fee or debt for which a
12      procedure for invoicing or collection is established by statute;
13      or
14      (2) payments under the terms of a contract.
15    Sec. 3. A municipality must invoice monthly.
16    Sec. 4. A municipality shall invoice a person on a form
17 prescribed by the state board of accounts.
 2026  IN 1209—LS 6850/DI 87
                                  2
1    Sec. 5. An invoice must include at least the following
2 information:
3      (1) The person's name and address.
4      (2) The invoice number and date issued.
5      (3) A description of the goods or services provided for which
6      payment is requested.
7      (4) The date the municipality provided the goods or services
8      for which payment is requested.
9      (5) The payment due date, which must be thirty (30) calendar
10      days after the date of the invoice.
11      (6) The amount due.
12      (7) Acceptable methods of payment.
13      (8) The payment address.
14      (9) The amount of any fee or interest assessed if full payment
15      is not received by the due date.
16      (10) A contact and telephone number the person may call if
17      there are questions.
18      (11) A reference to:
19(A) the ordinance or statute authorizing the charge; and
20(B) the fund that the payment will be deposited into.
21      (12) If the amount of the invoice is disputed, contact
22      information of an officer or employee of the municipality to
23      call before the payment due date.
24      (13) If unable to pay, contact information of an officer or
25      employee of the municipality to call before the payment due
26      date, to discuss a payment plan.
27    Sec. 6. If an invoice is unpaid by the payment due date specified
28 under section 5(5) of this chapter, a delinquency notice, on a form
29 prescribed by the state board of accounts, must accompany the
30 next monthly invoice. The reminder notice must contain at least the
31 following information:
32      (1) The person's, name, address, and account number.
33      (2) The date of the reminder notice and accompanying
34      invoice.
35      (3) The number of days that payment is overdue, the amount
36      of the overdue balance, plus any accrued late payment fees or
37      interest on the overdue balance as of the date provided in
38      subdivision (2).
39      (4) The acceptable methods of payment.
40      (5) The payment address.
41      (6) A statement that if not paid in full within thirty (30) days
42      after the date of the notice in subdivision (2):
 2026  IN 1209—LS 6850/DI 87
                                   3
1(A) late fees or interest will continue to accrue and the
2formal collections process will begin;
3(B) the invoice will be referred to a municipal collections
4officer, municipal collections department, legal
5department, or collection agency, if applicable;
6(C) adverse information regarding the payor may be
7reported to consumer credit reporting agencies; and
8(D) a civil action may be filed that may result in
9garnishment of wages, bank accounts, or other personal
10property, judgment liens, or other legal collection activity.
11(7) The notice must be signed by the appropriate fiscal officer
12(as defined in IC 36-1-2-7). If the notice concerns a
13delinquency of a fiscal officer, the notice must be signed by the
14president of the legislative body of the municipality.
15     Sec. 7. Nothing in this chapter prohibits a municipality from
16 resolving a delinquency through mediation.
17     Sec. 8. If a person believes that a charge or fee is erroneous, the
18 person shall notify the municipality in writing. The person shall
19 include the person's address, the invoice number, and a description
20 of the error asserted by the person, and any other information that
21 the municipality reasonably requires to process the request.
22     SECTION 2. IC 36-1-8.7 IS ADDED TO THE INDIANA CODE
23 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
24 JULY 1, 2026]:
25     Chapter 8.7. Separation of Responsibilities and Activities
26     Sec. 1. This chapter applies to the invoicing and collection of
27 fees and charges by a municipality that are owed by an officer or
28 employee of the municipality.
29     Sec. 2. Except as provided in sections 3 and 4 of this chapter, a
30 municipal officer or employee is subject to IC 36-1-8.6 regarding
31 deadlines for payment, invoicing, and collection of overdue
32 balances with regard to fees and charges owed by the officer or
33 employee to the municipality.
34     Sec. 3. A municipal officer or employee who has access to or
35 oversight of the municipality's payment system may not have the
36 responsibility of reporting or recording payments received.
37     Sec. 4. A municipal officer whose official duties include
38 oversight of reporting, recording, or monitoring of municipal
39 accounts, may not have access to the municipal officer's own
40 account with the municipality.
41     Sec. 5. If a municipal officer or employee is delinquent more
42 than sixty (60) days on an invoice, the delinquency must be
 2026  IN 1209—LS 6850/DI 87
                                4
1 reported to the fiscal officer of the municipality. However, if the
2 personal account of the fiscal officer of the municipality or the
3 municipal executive is delinquent, the delinquency must be
4 reported to the legislative body of the municipality.
2026  IN 1209—LS 6850/DI 87