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 6630 NOTE PREPARED: Dec 27, 2021
BILL NUMBER: SB 5 BILL AMENDED:
SUBJECT: Reciprocity.
FIRST AUTHOR: Sen. Brown L BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
XDEDICATED
FEDERAL
Summary of Legislation: License Reciprocity - This bill establishes a procedure to grant licenses and
certificates to practice certain health care professions in Indiana. It requires the applicant to hold a current
license or certificate from another state or jurisdiction and meet other requirements.
Provisional Licenses - The bill allows the applicant who meets certain requirements to apply for a provisional
license or provisional certificate. It requires the provisional license or provisional certificate to be issued
within 30 days.
Penalties - The bill provides for penalties for submitting false information on an application for a provisional
license or provisional certificate.
Timely Approval - The bill provides that if a board has a pending application for initial licensure or
certification that requires final approval by the board, the board shall meet not more 31 days after the
application is ready for approval.
Physicians - The bill provides that the Medical Licensing Board may not issue a physician's license to an
applicant using the reciprocity law beginning July 1, 2026.
Effective Date: Upon passage.
Explanation of State Expenditures: Summary - The Professional Licensing Agency (PLA) will experience
an increase in workload in FY 2022 and FY 2023 to review and amend rules for 18 health occupations’
licensing boards, commissions, and committees to facilitate the common standards of licensure reciprocity
SB 5 1 established by the bill. If the bill results in additional practitioners with out-of-state credentials seeking
employment and licensure in Indiana, the PLA may also experience additional ongoing workload and
administrative costs to process applications in accordance with the bill’s standards for reciprocity.
Additionally, the State Police Department may experience additional workload to conduct criminal history
checks for license applicants in certain occupations. Because the bill invokes penalties of perjury, a Level
6 felony, for provisional license applicants who submit false information in a signed affidavit, the
Department of Correction could potentially incur additional costs for incarcerating an individual convicted
for this offense.
If existing staffing and resource levels are 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.
Additional Information -
Penalty Provision: A Level 6 felony is punishable by a prison term ranging from 6 to 30 months, with an
advisory sentence of 1 year. The sentence depends on mitigating and aggravating circumstances. Assuming
offenders can be housed in existing facilities with no additional staff, the marginal cost for medical care,
food, and clothing is approximately $4,333 annually, or $11.87 daily, per prisoner. However, any additional
expenditures are likely to be small.
Explanation of State Revenues: Summary - If the bill results in additional practitioners with out-of-state
credentials seeking employment and licensure in Indiana, the PLA will collect additional revenue from
license fees. License fees for health professions regulated under the PLA are deposited in the General Fund
and range between $40 and $250, typically paid biennially, depending on the occupation. Additionally, the
State Police Department would collect additional General Fund revenue from the $15 national criminal
history check fee for license applicants in certain occupations. Total additional revenue from new license
seekers is indeterminable but likely to be small, given that many of the licensing boards, commissions, and
committees affected by the bill have already established avenues for licensure by reciprocity.
If any applicants are convicted on Level 6 felony or Class A infraction charges for submitting false
information to a licensing board, there could be a small increase in revenue to the General Fund and Common
School Fund from court fees and criminal fines.
Additional Information -
Penalty Provision: If additional court cases occur and fines are collected, revenue to both the Common
School Fund and the state General Fund would increase. The maximum fine for a Level 6 felony is $10,000,
deposited in the Common School Fund. The maximum judgment for a Class A infraction is $10,000,
deposited in the General Fund. Revenue from court fees is also deposited in the General Fund. However, any
additional revenues would likely be small.
Explanation of Local Expenditures: Penalty Provision: If more defendants are detained in county jails
prior to their court hearings, local expenditures for jail operations may increase. However, any additional
expenditures would likely be small.
Explanation of Local Revenues: Penalty Provision: If additional court actions occur and a guilty verdict
SB 5 2 is entered, local governments would receive revenue from court fees. However, the amounts would likely
be small.
State Agencies Affected: Professional Licensing Agency; State Police Department; Department of
Correction.
Local Agencies Affected: Trial courts, local law enforcement agencies.
Information Sources: Legislative Services Agency, Indiana Handbook of Taxes, Revenues, and
Appropriations, FY 2021.
Fiscal Analyst: Adam White, 317-234-1360.
SB 5 3