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 6770 NOTE PREPARED: Dec 31, 2021
BILL NUMBER: HB 1100 BILL AMENDED:
SUBJECT: Agency Oversight and Rulemaking Procedures.
FIRST AUTHOR: Rep. Bartels BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State
XDEDICATED
FEDERAL
Summary of Legislation: This bill has the following provisions:
(1) Requires a court to try disputed issues of fact de novo in a judicial review of an agency action.
(2) Provides that the burden of proving the validity of an agency action is on the agency.
(3) Requires the court in a judicial review of an agency action to review all issues of law and fact de novo
and without deference to any previous interpretation made by the agency.
(4) Requires an agency to repeal a rule before the agency may adopt a new rule that requires or prohibits an
action on behalf of a person.
(5) Prohibits an executive order issued by the Governor from being effective for more than 180 days unless
the Legislative Council approves the extended enforcement of the executive order.
(6) Requires an agency to submit an emergency rule to the Attorney General for review and approval before
the emergency rule may take effect.
(7) Provides that emergency rules may not be effective for a period that exceeds 180 days.
(8) Provides that certain emergency rules expire not more than two years after the rule takes effect.
(9) Requires an agency adopting an administrative rule to submit an economic impact statement and an
explanation of any penalty, fine, or other similar negative impact included in the proposed rule to the
Publisher of the Indiana Administrative Code.
(10) Requires the Publisher to provide a copy of the materials concerning a proposed rule or pending
readoption to the members of the appropriate standing committee.
(11) Provides that administrative rules expire on July 1 of the fourth year after the year in which the rule
takes effect (instead of January 1 of the seventh year after the year in which the rule takes effect).
(12) Requires an agency intending to readopt an administrative rule to provide to the Publisher, not later than
January 1 of the third year after the year in which the rule most recently took effect: (a) notice of; and (b)
HB 1100 1 information concerning; the pending readoption.
(13) Makes corresponding changes.
Effective Date: July 1, 2022.
Explanation of State Expenditures: Executive Branch Agencies - This bill creates additional oversight and
regulations concerning the administrative and emergency rule promulgation process for executive agencies.
The provisions of the bill could impact state agency workload.
Legislative Services Agency - The bill also modifies and increases the responsibilities of the Indiana Register
and Administrative Code Division of the Legislative Services Agency. The existing staffing and resources
may be insufficient for full implementation. The increase in workload is expected to increase agency
expenditures by approximately $75,000 per year beginning in FY 2023.
Attorney General - The bill also requires the Attorney General to review emergency and administrative rules
submitted by state agencies. Currently the Attorney General performs this function for administrative rules
but not for emergency rules. As a result, this bill is expected to increase Attorney General workload.
For CY 2020, the Indiana Register received 213 proposed rules, 300 emergency rules, and 206 re-adopted
rules.
State Budget Agency: The State Budget Agency currently reviews fiscal impact statements for proposed rules
submitted by state agencies. The requirement that state agencies create and submit an impact statement for
rules that carry a penalty, fine, or other similar negative impact is expected to have no impact on agency
workload.
Additional Information - Administrative rules under the bill are valid for up to four year periods, whereas
currently these rules are valid for up to seven years. Additionally, the bill specifies emergency rules are valid
for no more than 180 days, which is a shorter duration than current law. These changes in the bill would
increase state agency workload to resubmit administrative and emergency rules more often than current
practice.
Explanation of State Revenues:
Explanation of Local Expenditures:
Explanation of Local Revenues:
State Agencies Affected: Executive branch agencies; Legislative Services Agency; Attorney General; State
Budget Agency.
Local Agencies Affected:
Information Sources: Indiana Register; Indiana Utility Regulatory Commission Rulemaking Process
Overview.
Fiscal Analyst: Bill Brumbach, 317-232-9559.
HB 1100 2