SB 327 revises the fee structure and revenue distribution rules for Marion County small claims courts, effective July 1, 2025. The bill adds a new $26 small claims service fee for each small claims action filed in Marion County and directs clerks to collect it. It also updates the list of fees applicable in small claims cases, including docket, service-of-process, document storage, record-keeping, late, judicial, court administration, and other existing court-related fees.
The bill creates a new Marion County small claims fund and directs certain fees collected by the courts to be deposited and then distributed equally among the townships. Township trustees must use those funds to operate the small claims courts in their townships. The bill also preserves and clarifies other fee distributions to state accounts and funds, including the state general fund, the clerk’s record perpetuation fund, the homeowner protection unit account, and the pro bono legal services fund administered through the Indiana Bar Foundation. In addition, the bill repeals provisions tied to “low caseload courts” and related staffing/assignment rules, while also making conforming changes to venue and jurisdiction provisions for Marion County township small claims courts.
Impact
SB 327 amends multiple sections of the Indiana Code in Title 33 governing courts and court officers, with the main practical effect of changing how Marion County small claims court fees are assessed, collected, and allocated. It establishes a dedicated small claims service fee and a small claims fund, and it redirects certain court revenues to township-level funding for court operations rather than leaving those revenues solely with the clerk or other existing recipients. The bill also makes conforming changes to fee distribution statutes and repeals obsolete low-caseload court provisions, affecting township small claims administration in Marion County and the flow of court-generated revenue to local and state entities.
Sentiment
The bill appears to have been received positively in committee and on the floor. It was reported favorably out of the Senate Judiciary Committee and the Senate Tax and Fiscal Policy Committee with unanimous committee votes, and it later passed the Senate on third reading by a wide margin of 48-1. That voting history suggests broad support for the measure, likely because it is framed as an administrative and funding adjustment for Marion County small claims courts rather than a major policy change.
Contention
The main substantive issues in the bill are fiscal and administrative: the new $26 filing-related service fee, the redistribution of fee revenue among townships, and the repeal of low-caseload court provisions. Those changes could affect litigants through higher filing costs and affect township courts and county administration through altered revenue streams and fund management responsibilities. The available record does not show sustained opposition in committee or on the floor, but the fee increase and the reallocation of court revenues are the most likely points of concern for affected parties such as court users, township trustees, and county fiscal administrators.