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 6652 NOTE PREPARED: Jan 20, 2022 BILL NUMBER: HB 1149 BILL AMENDED: Jan 20, 2022 SUBJECT: Home Based Vendors. FIRST AUTHOR: Rep. Lehe BILL STATUS: CR Adopted - 1 st House FIRST SPONSOR: FUNDS AFFECTED:XGENERAL IMPACT: State & Local XDEDICATED FEDERAL Summary of Legislation: (Amended) This bill specifies the requirements for the preparation and sale of food products as a home based vendor. It reorganizes provisions concerning the sale of certain food products by an individual vendor at a farmers' market or roadside stand. The bill also requires an individual who sells poultry, rabbits, and eggs at a farmers' market or roadside stand to comply with certain requirements. It makes conforming changes. Effective Date: July 1, 2022. Explanation of State Expenditures: The bill amends provisions under current statute that grant farmers markets and roadside stands exemptions from being regulated as food establishments. The bill expands these exemptions to apply to all “home-based vendors” and adds specifications for food products sold by home- based vendors in order to qualify for the exemptions. These provisions may result in an increase in workload for the Department of Health (IDOH) to adopt rules and perform inspections of products sold by home based vendors. Actual increases in workload will depend on administrative decisions and the volume of consumer complaints relating to food products sold by home-based vendors. Any additional workload is expected to be completed within existing resources. [IDOH administrative expenditures are currently paid from appropriations to a dedicated agency fund.] Explanation of State Revenues: (Revised) Summary - The bill may have an indeterminable impact on the number of individuals cited with violating food safety regulations under existing law. Violators of sanitary requirements for food establishments are currently subject to a Class B misdemeanor. If a food product sold by a home-based vendor is found to be misbranded, the vendor could be charged with a Class B misdemeanor, and revenue from fines and court fees could be collected. However, to the extent that more HB 1149 1 food vendors qualify for exemption from regulations as a result of the bill, the total number of violations could decrease. The bill’s overall impact on state revenues is expected to be minor. Additional Information - If additional court cases occur and fines are collected, revenue to both the Common School Fund (from fines) and the state General Fund (from court fees) would increase. The maximum fine for a Class B misdemeanor is $1,000. Explanation of Local Expenditures: Local Health Departments - This bill may result in a minor increase in workload for local health departments to provide oversight of the products sold by home-based vendors. Penalty Provision - A Class B misdemeanor is punishable by up to 180 days in jail. Explanation of Local Revenues: Penalty Provision - If additional court actions occur and a guilty verdict is entered, local governments would receive revenue from court fees. However, any change in revenue would likely be small. State Agencies Affected: Department of Health. Local Agencies Affected: Local health departments, trial courts, local law enforcement agencies. Information Sources: IC 16-42-5; IC 16-42-11. Fiscal Analyst: Adam White, 317-234-1360. HB 1149 2