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 7032 NOTE PREPARED: Jan 2, 2022 BILL NUMBER: HB 1116 BILL AMENDED: SUBJECT: Electronic Voting Machines. FIRST AUTHOR: Rep. Wesco BILL STATUS: As Introduced FIRST SPONSOR: FUNDS AFFECTED: GENERAL IMPACT: Local DEDICATED FEDERAL Summary of Legislation: Ramp-up of VVPAT– The bill changes the date by which a county must provide a voter verifiable paper audit trail for electronic voting systems from December 31, 2029, to July 1, 2024. Voter Verifiable Paper Ballot– The bill requires that before November 8, 2022, a county that has received state funds for use on a voter verifiable paper audit trail shall use the funds in the manner prescribed. Effective Date: July 1, 2022. Explanation of State Expenditures: Explanation of State Revenues: Explanation of Local Expenditures: Ramp-up of VVPAT– Estimated total aggregate expenditures to acquire the necessary equipment are approximately $12.7 M. This estimate includes the counties using the MicroVote DRE voting system. The $12.7 M in equipment expenditures are not necessarily “new” as all counties are currently required by law to have VVPAT modules in place by 2029. The ramp-up to July 1, 2024, would move the all remaining VVPAT equipment expenditures up to calendar years 2022 to 2024. The estimate projects the remainder of DRE units that need the VVPAT modules and re-winders (if the county elected to conduct risk-limiting audits.) Explanation of Local Revenues: Voter Verifiable Paper Ballot– Some counties have received state money under HEA 1001-2019 for election security equipment that was applied to the purchase of VVPAT modules. It is unknown, which counties may not have yet expended those funds for VVPAT modules. According to HB 1116 1 the Secretary of State’s budget request transmittal letter, dated: December 9, 2020, the Secretary of State, with the use of federal and state funds, was able to replace or equip more than 30% of existing equipment with VVPAT technology. Additional Information– Johnson County purchased MicroVote DREs with VVPAT modules and was reimbursed under the program for 10% of the VVPAT equipped machines or 45 machines during late 2019. Johnson County currently has VVPAT modules for all of their MicroVote DREs. Bartholomew County received state funds from the Secretary of State for 60 VVPAT modules for their MicroVote DREs. State law requires all counties with DRE voting systems to have at least 10% of their machines capable of producing a paper trail. According to MicroVote, all counties have at least 21% of their MicroVote DREs connected to VVPAT modules. All of the MicroVote DREs owned by Adams, Bartholomew, Blackford, Dubois, Franklin, Parke, Steuben, Tippecanoe, and White are 100% equipped with VVPAT modules, with Clinton at 97%. Several more are at 50% to 60% equipped. State Agencies Affected: Local Agencies Affected: County election boards. Information Sources: Rachel Hoffmeyer, Deputy Secretary of State, Indiana Secretary of State’s Office; VSTOP; https://dailyjournal.net/2019/09/24/county_to_buy_all_new_election_equipment/; https://www.therepublic.com/2020/02/23/county_to_have_paper_record_on_all_voting_machines/; https://www.in.gov/sba/files/Secretary-of-State-Transmittal-Letter.pdf; MicroVote. Fiscal Analyst: Chris Baker, 317-232-9851. HB 1116 2