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: Jan 26, 2022
BILL NUMBER: HB 1103 BILL AMENDED: Jan 24, 2022
SUBJECT: Department of Natural Resources.
FIRST AUTHOR: Rep. Eberhart BILL STATUS: 2
nd
Reading - 1
st
House
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State
XDEDICATED
FEDERAL
Summary of Legislation: 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.
Logjam Removal: The bill provides instances when a construction permit for a floodway is not required to
remove a logjam or mass of wood debris that has accumulated in a river or stream.
Residence in a Floodway: The bill provides that, beginning January 1, 2022, the director of the DNR shall
not exercise authority to remove or eliminate an abode or residence from a floodway if the abode or residence
was constructed before January 1, 2022. (Current law provides that the director of the DNR shall not exercise
HB 1103 1 the authority of the residence or abode was constructed before January 1, 2020.)
Floodway Licenses: The bill provides that before July 1, 2023, the DNR shall adopt a license for the removal
of trees; channel maintenance; and bank reconstruction, repair, and stabilization in a floodway.
Local Floodplain Administrators: The bill provides that a local floodplain administrator shall utilize the best
floodplain mapping data available as provided by the DNR and located on the Indiana Floodplain Information
Portal when reviewing a permit application for a structure or a construction activity in, or near, a floodplain.
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: Residence in a Floodway: The bill could decrease the immediate
workload of the DNR by prohibiting measures of enforcement against a homeowner whose residence is in
violation of the prohibition against building an abode or residence in a floodway, if the criteria of the bill are
met.
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
HB 1103 2 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
safety.
Explanation of State Revenues: Floodway Licenses: The bill could increase revenue to the Land and Water
Resources Fund as the bill requires the DNR to adopt a license for the removal of trees; channel maintenance;
and bank reconstruction, repair, and stabilization in a floodway.
Logjam Removal: The bill could minimally decrease revenue to the Land and Water Resources Fund as it
provides additional instances in which a construction permit for a floodway is not required to remove a
logjam or mass of wood debris that has accumulated in a river or stream.
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.
Local Floodplain Administrators: The bill requires local floodplain administrators to utilize the best
floodplain mapping data provided by the DNR, and available on the Indiana Floodplain Information Portal
when reviewing a permit application for a structure or a construction activity in, or near, a floodplain. To the
HB 1103 3 extent that some local floodplain administrators do not currently do this, workload could increase.
Explanation of Local Revenues:
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; local
floodplain administrators.
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