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 6055 NOTE PREPARED: Sep 3, 2021 BILL NUMBER: HB 1201 BILL AMENDED: SUBJECT: Radon Testing in School Buildings. FIRST AUTHOR: Rep. Andrade BILL STATUS: As Introduced FIRST SPONSOR: FUNDS AFFECTED:XGENERAL IMPACT: State & Local XDEDICATED XFEDERAL Summary of Legislation: This bill requires the person or entity having authority over a public school building to test for radon in the lowest level of the school building before January 1, 2025, and report the test results to the State Department of Health (IDOH). The bill requires the IDOH to record the test results in a data base and to use the data base in its efforts to reduce the health risks of radon to the people of Indiana. Effective Date: July 1, 2022. Explanation of State Expenditures: Radon Testing - The bill specifies that school corporations shall seek any available state or federal grant funds to pay for the cost of radon testing. The IDOH may be able to award grants from the Radon Gas Trust Fund or from the federal State Indoor Radon Grant (SIRG) program for the purposes of radon testing required by the bill. However, IDOH reports that neither of these programs currently grant funds for radon testing in schools, meaning the agency would need to divert radon funds from other priority areas in order to issue grants to schools. Any additional or redirected spending of state or federal funds for radon testing from FY 2023 to FY 2025 would be dependent upon administrative decisions by the IDOH. The Radon Gas Trust Fund received appropriations of $10,670 in FY 2022 and 2023. Indiana was awarded approximately $82,000 in federal SIRG funds in each of the last three federal fiscal years. Agency Workload - The IDOH will experience additional workload to collect and study radon testing data from school corporations as required by the bill. Additionally, if the bill results in school personnel seeking certification as radon testers, the IDOH may require additional workload to process a higher volume of certification applications. Collecting radon test results and certifying radon testers are considered routine administrative functions of the IDOH and should be able to be completed with no additional appropriations, assuming near customary agency staffing and resource levels. HB 1201 1 Explanation of State Revenues: Certification Fees - The IDOH certifies radon testers and collects a $100 biennial fee for certification, deposited in the Radon Gas Trust Fund. If school corporations choose to train and certify an employee to complete the radon testing required by the bill, fee revenue may increase between FY 2023 and FY 2025. Any increase in fee revenue is expected to be small. Penalties - Certified radon testers are required to report the testing results of all buildings tested to the IDOH. To the extent that the required reporting is not completed, the IDOH may impose a civil penalty of up to $1,000 per day for the number of days the tester is documented to have been in violation. Civil penalties are deposited in the General Fund. Any revenue from civil penalties as a result of the bill is expected to be small. Explanation of Local Expenditures: Radon Testing - The bill requires public school buildings to test the air in the lowest level of the buildings for actionable radon levels before January 1, 2025. The estimated cost of radon testing conducted by a certified professional is between $20 and $50 per room. The total costs per school corporation will depend on the number of school buildings required to be tested and the number of rooms tested in the lowest level of each building. Estimated testing costs for a school building that tests between 15 and 30 rooms would be between $300 and $1,500. If state and federal grant funds are unavailable to pay for the required testing, school corporations would pay for the testing costs. Radon Mitigation - The bill does not require school buildings to conduct radon mitigation after finding actionable levels of radon. However, it is likely that school corporations would take voluntary action to mitigate the any radon contamination discovered. A recent study published in the International Journal of Environmental Research and Public Health estimates the costs of radon mitigation in U.S. schools are between $2,000 and $5,000, depending on characteristics of the building and the underlying soil. Explanation of Local Revenues: State Agencies Affected: Department of Health. Local Agencies Affected: School corporations. Information Sources: Phillip Waters, IDOH; International Journal of Environmental Research and Public Health (2018), Radon in Schools: A Brief Review of State Laws and Regulations in the United States; Legislative Services Agency, Indiana Handbook of Taxes, Revenues, and Appropriations, FY 2020. Fiscal Analyst: Adam White, 317-234-1360. HB 1201 2