§ 36-1-4-22 — "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 license 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.

Legislative History

As added by P.L.123-2019, SEC.1. Amended by P.L.157-2024, SEC.6; P.L.1-2025, SEC.232.