Indiana 2022 2022 Regular Session

Indiana House Bill HB1149 Introduced / Fiscal Note

Filed 02/17/2022

                    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: Feb 17, 2022
BILL NUMBER: HB 1149	BILL AMENDED: Feb 14, 2022
SUBJECT: Home Based Vendors.
FIRST AUTHOR: Rep. Lehe	BILL STATUS: 2
nd
 Reading - 2
nd
 House
FIRST SPONSOR: Sen. Leising
FUNDS AFFECTED:XGENERAL	IMPACT: State & Local
XDEDICATED
FEDERAL
Summary of Legislation: The 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 or delegate inspection 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: 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 food vendors qualify
HB 1149	1 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: Karen Rossen,  317-234-2106.
HB 1149	2