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 6602 NOTE PREPARED: Dec 30, 2021
BILL NUMBER: HB 1103 BILL AMENDED:
SUBJECT: Department of Natural Resources.
FIRST AUTHOR: Rep. Eberhart BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State
XDEDICATED
FEDERAL
Summary of Legislation: Residential Historic Rehabilitation Credits: The bill provides that a taxpayer is
entitled to a credit against the taxpayer's state tax liability equal to 20% of the qualified and approved
expenditures associated with completing the preservation or rehabilitation of historic property or $20,000,
whichever is less.
Commercial Fishing: The bill repeals code provisions regarding commercial fishing on Lake Michigan.
Electronic Notification of Rules Adopted: The bill provides that the Natural Resources Commission (NRC)
may adopt rules to allow for electronic notification of new rules being considered for adoption instead of
publishing notice in a newspaper of general circulation.
Probationary Status Notification: The bill removes the requirement that the director of the Department of
Natural Resources (DNR) send, to a person who has a license that is placed on probationary status, notice
that includes a description of the amount of child support in arrears and an explanation of the procedures to
pay child support arrearage.
Mussel Licenses: The bill repeals the mussels license issued by the DNR.
Wild Animal Liability: The bill provides that a law enforcement officer or an employee of the DNR is not
liable for the destruction of a permitted animal that escapes an enclosure and poses a threat to public safety.
Underground Petroleum Storage Fees: The bill requires the NRC to establish a fee to fund the regulation
of underground petroleum storage.
HB 1103 1 Timber Buyers: The bill provides that a contract to purchase timber must be in writing. It allows the
collection of damages for costs associated with a claim or action, including attorney's fees, or damages
specified in a contract with a timber buyer or a person who cuts timber but is not a timber buyer. It requires
a timber buyer to keep complete and accurate records for at least five years after a transaction. It allows the
director of the DNR to suspend a timber buyer's license for not more than 90 days before a final adjudication
if the director of the DNR finds that the holder of the timber buyer's license poses a clear and immediate
danger to public health, safety, or property if allowed to continue to operate. It provides that the director of
the DNR may renew the suspension for periods of not more than 90 days.
It makes technical and conforming changes.
Effective Date: July 1, 2022.
Explanation of State Expenditures: Residential Historic Rehabilitation Credits: The bill caps the
Residential Historic Rehabilitation Credits at $20,000. The DNR and the Department of State Revenue
(DOR) will incur minimal additional expenses to revise tax forms, instructions, computer programs, and
credit applications. The agencies’ current level of resources should be sufficient to implement the changes
to the tax credit.
Electronic Notification of Rules Adopted: The bill provides that the NRC may adopt rules to electronically
notify the public of new rules adopted by the NRC in lieu of publishing a notice in a newspaper of general
circulation in Indiana. This may reduce expenditures. Current law requires publication in a newspaper
regarding a public hearing for a proposed rule, but does not require newspaper publication to notify of new
rules adopted.
Probationary Status Notification: Currently, upon receiving a list from the Child Support Bureau of all
persons delinquent with child support, the DNR must determine which names on the list have a license issued
by the DNR. The bill still requires the DNR to place a license on probationary status, but it removes the
requirement that the notice sent to the licensee include a description of the amount of child support in arrears
and an explanation of the procedures to pay child support arrearage. This will eliminate a redundancy in
duties, as the Child Support Bureau is required to send a notice with this information to a person who is
delinquent on child support and currently has to compile the information for the DNR.
Game Breeder’s License: The bill makes various changes to the game breeder’s license and requires the NRC
to adopt rules to reflect the change in license. This is a routine administrative function of the NRC and should
not require additional resources.
Timber Buyers: The bill provides standards for contracts for the purchase of timber. It provides that timber
buyers must maintain complete and accurate records of certain transactions for five years from the date of
the transaction. These provisions may assist the NRC’s workload in its adjudicative proceedings. Current
law allows a civil penalty of up to $1,000 to be imposed for certain timber buyer violations. The bill allows
a civil penalty of up to $1,000 to be imposed for any violation of a timber buyer law or rule, and specifies
that each timber sale without a contract is a separate violation. (The bill does not change the penalty for
engaging in business as a timber buyer (or agent) without the appropriate license, which may still incur a civil
penalty of up to $10,000).
Wild Animal Permit Liability: The bill provides that DNR employees and law enforcement officers are not
liable for any damages caused by a permitted animal that escapes its enclosure and poses a threat to public
HB 1103 2 safety.
Explanation of State Revenues: Residential Historic Rehabilitation Credits: Currently, residential Historic
Rehabilitation Credits may be claimed for 20% of eligible expenses. The bill caps the credit at $20,000.
Although the majority of the number of credits approved are $20,000 or less (74.7%), credits for amounts
over $20,000 account for 63.4% of the credit amounts certified. Since the program was established in 2002,
there were 36 homeowners that received credits for amounts between $20,001 and $50,000 and 9 for amounts
over $50,001. The amount certified above the cap for these properties totaled $1.08 M, $792,000 of which
was approved after FY 2010. The amount of credits claimed could decrease in future years as a result of the
cap. The impact of this provision could begin in FY 2023. Homeowners are able to carry the credit forward
for up to 15 years.
Underground Petroleum Storage Fees: The DNR currently regulates and charges fees for drilling, deepening,
operating, plugging, and abandoning oil and gas wells. The bill provides that the NRC shall establish a fee
to fund the regulation of underground petroleum storage. Revenue to the Oil and Gas Environmental Fund
would increase and would depend on the number and size of underground geological structures, called fields,
that are available for storage and the fees charged. The NRC would adopt rules to establish fees. Civil
penalties of up to $10,000 may be imposed for violations of oil and gas laws.
Game Breeder’s License: Under current law, a game breeder’s license authorizes the licensee to breed and
sell nonmigratory game birds, game mammals, or certain furbearing mammals protected by Indiana law. The
bill redefines the game breeder’s license to authorize the breeding and selling of nonmigratory game birds
and any wild animals protected by Indiana law. This provision could minimally increase revenue to the Fish
and Wildlife Fund as it would allow for the propagation of other wild animals. Game breeder’s licenses are
$15.
Wild Animal Permits: The bill could increase wild animal permit revenue as it removes agencies of local
government from the list of entities excluded from being required to have wild animal permits. The bill also
provides that wild animal permits are not required for commercial animal dealers, breeders, or exhibitors
licensed by the United States Department of Agriculture, as long as the species of wild and exotic animals
are ones that can be possessed without a permit or license from the DNR. This provision could increase
permit revenue from animal sanctuaries and rescue centers that possess animal species that require a permit
or license from the DNR. However, it removes the provision that requires a separate permit for each wild
animal which could reduce permit revenue. Wild animal permits are $10.
Commercial Fishing: The bill makes it illegal to take fish from the water of Lake Michigan that are within
Indiana with commercial fishing gear, and it eliminates the license for commercial fishing in Lake Michigan.
These licenses have not been issued for years.
Mussel Licenses: The bill repeals the mussels license issued by the DNR. These licenses have not been
issued for years.
Explanation of Local Expenditures: Wild Animal Permits: An agency of local government, previously
excluded in statute, that is open to the public for education, conservation, or preservation of the earth’s fauna
may need to minimally increase expenditures for pay for wild animal permits.
Explanation of Local Revenues:
HB 1103 3 State Agencies Affected: Department of State Revenue; Department of Natural Resources, Natural
Resources Commission.
Local Agencies Affected: Agencies of local government, with wild animals, open to the public.
Information Sources: Caitlin Smith, Department of Natural Resources.
https://iga.in.gov/legislative/2021/publications/tax_incentive_review/#document-1b3add9b
https://www.in.gov/dnr/historic/3679.htm
Fiscal Analyst: Heather Puletz, 317-234-9484.
HB 1103 4