LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
200 W. Washington St., Suite 301
Indianapolis, IN 46204
(317) 233-0696
iga.in.gov
FISCAL IMPACT STATEMENT
LS 6017 NOTE PREPARED: Jul 15, 2022
BILL NUMBER: HB 1011 BILL AMENDED:
SUBJECT: Infant Formula Price Gouging.
FIRST AUTHOR: Rep. Bauer M BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
XDEDICATED
FEDERAL
Summary of Legislation: The bill defines "price gouging" to include charging a consumer an
unconscionable amount for the sale of infant formula. It provides that price gouging occurs in the sale of
infant formula if the price at which the infant formula is sold grossly exceeds the average price charged for
infant formula of the same brand and type in retail establishments in Indiana on or about the date on which
the infant formula is sold.
The bill authorizes the Attorney General to investigate complaints, seek injunctive relief, seek restitution for
victims, and institute actions to collect civil penalties in cases of price gouging in the sale of infant formula.
It also provides that a court may assess a civil penalty of up to $1,000 for each transaction against a retailer
found to have committed price gouging in the sale of infant formula.
Effective Date: Upon passage.
Explanation of State Expenditures: Office of the Attorney General (AG): The bill could increase the
workload of the AG to investigate consumer complaints regarding price gouging of infant formula. The AG
may seek injunctive relief, restitution for victims, and collect a maximum civil penalty of up to $1,000 for
each transaction.
The bill’s requirements represent an additional workload [and/or expenditure] on the AG outside of the AG’s
routine administrative functions, and existing staffing and resource levels, if currently being used to capacity,
may be insufficient for full implementation. The additional funds and resources required could be supplied
through existing staff and resources currently being used in another program or with new appropriations.
HB 1011 1 Ultimately, the source of funds and resources required to satisfy the requirements of this bill will depend on
legislative and administrative actions.
Explanation of State Revenues: Summary - The bill could increase civil court cases if the Attorney General
finds that a retailer has committed price gouging at which the infant formula is sold. As a result, the General
Fund could receive additional revenue from civil penalties and court case filings.
Additional Information - If the AG files a civil action against a nongovernmental party and prevails, court
fees may be collected from the defendant [IC 33-37-3-1]. Additional court fees will increase revenue to the
state General Fund. A civil costs fee of $100 could be assessed from the defendant, 70% of which would be
deposited in the state General Fund if the case is filed in a court of record or 55% if the case is filed in a city
or town court.
In addition, some or all of the judicial salaries fee ($20), public defense administration fee ($5), court
administration fee ($5), and the judicial insurance adjustment fee ($1) are deposited into the state General
Fund. Revenue from the pro bono services fee ($1) is transferred by the State Auditor to the Indiana Bar
Foundation for use to assist with pro bono legal services programs in Indiana. The proceeds from the
automated record keeping fee ($20) are deposited into the State User Fee Fund.
Additional fees may be collected at the discretion of the judge and depending upon the particular type of
case.
Explanation of Local Expenditures: Courts: To the extent additional civil court cases are filed by the AG,
the bill could potentially increase the workload of the court.
Explanation of Local Revenues: Summary - The bill could increase local revenue received from civil court
fees. Total increases in local revenue are indeterminable, but expected to be small.
Additional Information - If additional civil actions occur, local governments would receive revenue from the
following sources. The county general fund would receive 27% of the $100 civil costs fee that is assessed
in a court of record. Cities and towns maintaining a law enforcement agency that prosecutes at least 50% of
its ordinance violations in a court of record may receive 3% of court fees. If the case is filed in a city or town
court, 20% of the court fee would be deposited in the county general fund and 25% would be deposited in
the city or town general fund. Additional fees may be collected at the discretion of the judge, depending upon
the particular type of case.
State Agencies Affected: Office of the Attorney General.
Local Agencies Affected: Trial courts; city and town courts.
Information Sources:
Fiscal Analyst: Corrin Harvey, 317-234-9438.
HB 1011 2