The legislation further provides that the work of art and the sale proceeds due the artist are property held in trust for the artist by the seller and are not subject to seizure or encumbrance by one of the seller's creditor.
The bill also provides that if a work of art is lost or damaged while in the possession of an art dealer, the dealer is strictly liable to the artist in an amount equal to the work's value as established by the consignment agreement.
"My district - Brown County in particular - is home to a large number of full-time and part-time working artists," said Rep. Koch. "Consignment relationships are a common way for these artists to get their work to the market. This legislation will protect their property interests."House Bill 1271 passed the House of Representatives 97-0 and now moves to the Indiana Senate. The bill's primary author is Rep. Scott Pelath (D-Michigan City).
Rep. Koch serves House District 65, which includes parts of Bartholomew, Brown, Jackson, and Lawrence counties, and serves as assistant Republican caucus chairman.