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 6676 NOTE PREPARED: Mar 10, 2022
BILL NUMBER: HB 1211 BILL AMENDED: Mar 8, 2022
SUBJECT: State and Local Administration.
FIRST AUTHOR: Rep. Teshka BILL STATUS: Enrolled
FIRST SPONSOR: Sen. Garten
FUNDS AFFECTED:XGENERAL IMPACT: State
XDEDICATED
FEDERAL
Summary of Legislation: This bill has the following provisions:
Blockchain Technology Report: The bill requires the Indiana Office of Technology (IOT) to compile a report
concerning the request for information and submit the report to the Legislative Council in an electronic
format not later than March 31, 2023. It defines "blockchain technology" and "distributed ledger
technology"and requires an agency to submit an emergency rule to the Attorney General for review and
approval before the emergency rule may take effect.
Administrative Rules Oversight: It provides that emergency rules may not be effective for a period that
exceeds 180 days. The bill provides that certain emergency rules expire not more than two years after the
rule takes effect. It requires an agency adopting an administrative rule to submit an economic impact
statement and an explanation of any penalty, fine, or other similar negative impact included in the proposed
rule to the Publisher of the Indiana Administrative Code (Publisher). The bill requires the Publisher to
provide a copy of the materials concerning a proposed rule or pending readoption to the members of the
appropriate standing committee, the Governor, and the Office of Management and Budget.
The bill provides that administrative rules expire on July 1 of the fourth year after the year in which the rule
takes effect (instead of January 1 of the seventh year after the year in which the rule takes effect). It also
requires an agency intending to readopt an administrative rule to provide to the Publisher, not later than
January 1 of the third year after the year in which the rule most recently took effect: (a) notice of; and (b)
information concerning; the pending readoption.
READI Grants: It requires that all broadband infrastructure projects that are funded in whole or in part by
HB 1211 1 a grant or loan from the Regional Economic Acceleration and Development Initiative (READI) Fund must
satisfy the criteria and requirements as described in the rural broadband program.
The bill also makes corresponding changes.
Effective Date: Upon passage; July 1, 2022.
Explanation of State Expenditures: Blockchain Technology Report: This bill will increase the workload
of (1) the Indiana Department of Administration and IOT to issue a request for information (RFI) concerning
blockchain technology and (2) the IOT to deliver the required report. Additionally, the bill will increase the
workload of the Secretary of State, Bureau of Motor Vehicles, as well as other state agencies who either want
to participate in the RFI or are identified by an RFI respondent as possibly benefitting from blockchain
technology.
Existing staffing and resource levels, if currently being used to capacity, may be insufficient for full
implementation. The additional funds and resources required could be supplied through existing staff and
resources currently being used in another program or with new appropriations. Ultimately, the source of
funds and resources required to satisfy the requirements of this bill will depend on legislative and
administrative actions.
Administrative Rules Oversight: This bill has the following impacts on state agencies:
(1) It creates additional oversight and regulations concerning the administrative and emergency rule
promulgation process for executive agencies, potentially increasing workload and/or state expenditures for
state agencies. Administrative rules under the bill are valid for up to four years. Currently, these rules are
valid for up to seven years. Additionally, the bill specifies emergency rules are valid for no more than 180
days, which is a shorter duration than current law. These changes in the bill would increase state agency
workload to resubmit administrative and emergency rules more often than current practice.
(2) The bill increases the workload and state expenditures of the Indiana Register and Administrative Code
Division of the Legislative Services Agency.
(3) It requires the Attorney General to review emergency and administrative rules submitted by state
agencies. [Currently, the Attorney General performs this function for administrative rules but not for
emergency rules.] This provision will increase workload and/or state expenditures for the Attorney General.
The Office of Management and Budget currently reviews fiscal impact statements for proposed rules
submitted by state agencies. The requirement that state agencies create and submit an impact statement for
rules that carry a penalty, fine, or other similar negative impact is expected to have no impact on agency
workload.
READI Grants: By specifying that all broadband infrastructure projects that receive READI funding must
meet the same requirements as those in the rural broadband program, this bill could reduce the number of
broadband infrastructure projects eligible for READI Grant funding. This provision could reduce state
expenditures for grants and loans made for infrastructure projects, or it could alter which projects are chosen
to receive funds. Any impact on state expenditures is indeterminable.
Explanation of State Revenues:
Explanation of Local Expenditures:
HB 1211 2 Explanation of Local Revenues:
State Agencies Affected: Indiana Department of Administration; Indiana Office of Technology; Secretary
of State; Bureau of Motor Vehicles; Executive branch agencies; Legislative Services Agency; Attorney
General.
Local Agencies Affected:
Information Sources: Indiana Register; Indiana Utility Regulatory Commission Rulemaking Process
Overview.
Fiscal Analyst: Bill Brumbach, 317-232-9559.
HB 1211 3