CHAPTER 2. PLUMBERS RECOVERY FUND
IC 25-28.5-2
Chapter 2. Plumbers Recovery Fund
IC 25-28.5-2-1
Establishment of fund; investments; interest
Sec. 1. (a) The plumbers recovery fund is established for thepurpose set out in this chapter. The fund shall be administered by theplumbing commission.
(b) The treasurer of state shall invest the money in the fund notcurrently needed to meet the obligations of the fund in the samemanner as other public funds may be invested. Interest that accruesfrom these investments shall be deposited in the fund.
(c) Money in the fund at the end of a state fiscal year does notrevert to the state general fund, except as provided in section 2.2 ofthis chapter.
As added by P.L.260-1987, SEC.1. Amended by P.L.143-1990,SEC.5.
IC 25-28.5-2-2
Surcharge; formula; assessments
Sec. 2. (a) If the total amount in the plumbers recovery fund(including principal and interest) plus estimated revenues from thefee assessed under section 2.1 of this chapter from July 1 of thecurrent year through June 30 of the next year will be less than threehundred thirty thousand dollars ($330,000) on June 30 in anodd-numbered year after the payment of all claims and expenses, theplumbing commission shall assess a surcharge according to thefollowing formula in order to maintain the fund at an approximatelevel of four hundred thousand dollars ($400,000):
STEP ONE: Determine the amount remaining in the fund onJune 30 of the current year after all expenses and claims havebeen paid.
STEP TWO: Add to the amount determined under STEP ONEthe amount of revenue estimated from the fee assessed undersection 2.1 of this chapter from July 1 of the current yearthrough June 30 of the next year.
STEP THREE: Subtract the amount determined under STEPTWO from four hundred thousand dollars ($400,000).
STEP FOUR: Determine the number of plumbing contractorswho had licenses in effect on June 30 of the current year.
STEP FIVE: Divide the number determined under STEPTHREE by the number determined under STEP FOUR.
(b) The plumbing commission shall assess the surcharge describedin subsection (a) against each plumbing contractor who:
(1) receives an initial license; or
(2) receives a renewal license.
(c) The plumbing commission shall assess the surcharge describedin subsection (a) for the two (2) year period beginning on July 1 ofthe current year through June 30 of the next odd-numbered year.
(d) The surcharge assessed under this section is in addition to any
other fee under this article.
As added by P.L.260-1987, SEC.1. Amended by P.L.143-1990,SEC.6.
IC 25-28.5-2-2.1
Licensing fee
Sec. 2.1. (a) At the time of initial licensure under this article, eachlicensee shall pay the fees established by the commission underIC 25-1-8-2 for the following:
(1) A plumbing contractor.
(2) A journeyman plumber.
(b) Fees collected under subsection (a) shall be placed in theplumbers recovery fund.
(c) The fee assessed under this section is in addition to any otherfee under this article.
As added by P.L.143-1990, SEC.7. Amended by P.L.194-2005,SEC.73.
IC 25-28.5-2-2.2
Reversion of excess funds
Sec. 2.2. If the total amount in the plumbing recovery fund(including principal and interest) exceeds five hundred fifty thousanddollars ($550,000) at the end of a state fiscal year after the paymentof all claims and expenses, the amount in excess of five hundred fiftythousand dollars ($550,000) reverts to the state general fund.
As added by P.L.143-1990, SEC.8.
IC 25-28.5-2-3
Interest on investments; payment of expenses
Sec. 3. Any interest earned on investment of money in theplumbers recovery fund shall be credited at least annually to thefund. No money may be appropriated from the state general fund forpayment of any expenses incurred under this chapter, and none ofthese expenses may be charged against the state.
As added by P.L.260-1987, SEC.1.
IC 25-28.5-2-4
Applications for orders directing payment out of fund; amount ofloss; limitation on recovery
Sec. 4. (a) If any aggrieved person obtains a final judgment in anycourt against any plumbing contractor to recover damages for aviolation under IC 25-1-11 or the plumbing codes of the state (withor without a finding by the Indiana plumbing commission) thatresults in an actual cash loss to the aggrieved person, the person may,upon termination of all proceedings, including appeals andproceedings supplemental to judgment for collection purposes, filea verified application in the court in which the judgment was enteredfor an order directing payment out of the plumbers recovery fund ofthe amount of actual and direct loss in the transaction that remainsunpaid upon the judgment. The amount of actual and direct loss may
include court costs but may not include attorney's fees or punitivedamages awarded. The amount that may be paid from the plumbersrecovery fund may not exceed twenty thousand dollars ($20,000) perjudgment and an aggregate lifetime limit of fifty thousand dollars($50,000) with respect to any one (1) licensee.
(b) This section applies only to a final judgment that awardsdamages for an act by the plumbing contractor described insubsection (a) that arises directly out of any transaction:
(1) that occurred when the plumbing contractor was licensed;
(2) for which a license was required under IC 25-28.5; and
(3) that occurred after December 31, 1987.
As added by P.L.260-1987, SEC.1. Amended by P.L.214-1993,SEC.63.
IC 25-28.5-2-5
Claims exceeding dollar limitations; joinder of claims; payment ofclaims; insufficient funds
Sec. 5. (a) If the payment in full of two (2) or more pending validclaims that have been filed by aggrieved persons against a singleplumbing contractor would exceed the fifty thousand dollar($50,000) limit set forth in section 4 of this chapter, the fiftythousand dollars ($50,000) shall be distributed among the aggrievedpersons in the ratio that their respective claims bear to the aggregateof all valid claims or in any other manner that a court of record maydetermine equitable. This money shall be distributed among thepersons entitled to share in it without regard to the order of priorityin which their respective judgments have been obtained or theirclaims have been filed.
(b) Upon petition of the commission, the court may require allclaimants and prospective claimants against a single plumbingcontractor to be joined in one (1) action, to the end that therespective rights of all the claimants to the commission may beequitably adjudicated and settled.
(c) On June 30 and December 31 of each year, the plumbingcommission shall identify each claim that the court orders to be paidduring the six (6) month period that ended on that day. Thecommission shall pay the part of each claim that is so identifiedwithin fifteen (15) days after the end of the six (6) month period inwhich the claim is ordered paid. However, if the balance in the fundis insufficient to pay the full payable amount of each claim that isordered to be paid during a six (6) month period, the commissionshall pay a prorated portion of each claim that is ordered to be paidduring the period. Any part of the payable amount of a claim leftunpaid due to the prorating of payments under this subsection mustbe paid (subject to the fifty thousand dollar ($50,000) limit describedin section 4 of this chapter) before the payment of claims ordered tobe paid during the following six (6) month period.
As added by P.L.260-1987, SEC.1.
IC 25-28.5-2-6 Agent for service of process
Sec. 6. Any plumbing contractor who is licensed or renews alicense under this article after December 31, 1987, and upon whompersonal service cannot be made with reasonable diligence shall beconsidered to have appointed the commission as the plumbingcontractor's agent for service of process for purposes of actions filedunder section 4 of this chapter for recovery from the plumbersrecovery fund. Service of process under this section shall be made asnearly as practicable in the manner prescribed by the Indiana Rulesof Trial Procedure for service on corporations.
As added by P.L.260-1987, SEC.1.
IC 25-28.5-2-7
Limitation of actions
Sec. 7. An order for payment from the plumbers recovery fundmay not be issued unless the action to recover from the plumbersrecovery fund was commenced within two (2) years after thetermination of all proceedings against the plumbing contractor for aviolation under IC 25-1-11 or the plumbing codes of the state,including appeals and proceedings supplemental to judgment. Whenany person commences an action for a judgment that may result in anorder for payment from the fund, the plumbing contractor againstwhom the action has been taken shall notify the commission inwriting of the commencement of the action.
As added by P.L.260-1987, SEC.1. Amended by P.L.214-1993,SEC.64.
IC 25-28.5-2-8
Commission as defendant; hearings; issuance of orders
Sec. 8. When any person files an application for an order directingpayment from the plumbers recovery fund, the commission shall bemade a party defendant to the proceedings. The court shall conducta hearing on the application, and it may issue an order directingpayment out of the plumbers recovery fund, as provided in section 9of this chapter, subject to the limitation of section 4 of this chapter,if the court finds:
(1) that there is no collusion between the judgment creditor andthe judgment debtor;
(2) that the judgment creditor is making application not morethan one (1) year after the termination of all proceedings inconnection with the judgment, including appeals andproceedings supplemental to judgment for collection purposes;
(3) that the judgment creditor has caused to be issued a writ ofexecution on the judgment and the officer executing the writhas made a return showing that no personal or real property ofthe judgment debtor liable to be levied upon in satisfaction ofthe judgment could be found or that the amount realized on thesale under the execution was insufficient to satisfy thejudgment;
(4) that the judgment creditor has diligently pursued the
creditor's remedies against all the judgment debtors and allother persons liable to the creditor in the transaction for whichthe creditor seeks recovery from the plumbers recovery fund;
(5) that a violation under IC 25-1-11 or the plumbing codes ofthe state arose directly out of a transaction that occurred whenthe judgment debtor was licensed and acted in a capacity forwhich a license is required under this article and that thetransaction occurred after December 31, 1987; and
(6) that, in the event of a default judgment or a judgmententered upon stipulation of the parties, the judgment debtor'sacts constituted a violation under IC 25-1-11 or the plumbingcodes of the state.
As added by P.L.260-1987, SEC.1. Amended by P.L.214-1993,SEC.65.
IC 25-28.5-2-9
Payment of claims from fund
Sec. 9. Upon a final order of the court directing that payment bemade out of the plumbers recovery fund, the commission shall,subject to sections 4 through 5 of this chapter, make the payment outof the plumbers recovery fund as provided in section 5 of thischapter.
As added by P.L.260-1987, SEC.1.
IC 25-28.5-2-10
Suspension of license; repayment of fund
Sec. 10. If the commission is required to make any payment fromthe plumbers recovery fund in settlement of a claim or toward thesatisfaction of a judgment under this chapter, the commission shallsuspend the judgment debtor's license. The licensee is not eligible tobe licensed again as either a plumbing contractor or journeymanplumber until the licensee has repaid in full the amount paid from theplumbers recovery fund with interest of twelve percent (12%) perannum.
As added by P.L.260-1987, SEC.1.
IC 25-28.5-2-11
Subrogation
Sec. 11. When, upon order of any court, the commission hascaused payment to be made from the plumbers recovery fund to ajudgment creditor, the commission is subrogated to the rights of thejudgment creditor with respect to the amount paid.
As added by P.L.260-1987, SEC.1.
IC 25-28.5-2-12
Expenditure of interest
Sec. 12. Subject to the approval of the budget agency, thecommission may expend the interest earned by the plumbersrecovery fund for the following:
(1) Publications that provide: (A) information concerning the commission's activities andadministrative rulings; and
(B) other educational information concerning the practice ofplumbing.
(2) Educational programs concerning the practice of plumbingin Indiana.
As added by P.L.260-1987, SEC.1. Amended by P.L.20-1991, SEC.9.
IC 25-28.5-2-13
Attorney general; staff assistance; expenses
Sec. 13. (a) The office of the attorney general shall provide thestaff assistance necessary to:
(1) enable the plumbing commission to perform its duties underthis chapter; and
(2) enforce this chapter.
(b) Expenses incurred by the office of the attorney general underthis section shall be paid from the plumbers recovery fund.
As added by P.L.260-1987, SEC.1.