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 7027 NOTE PREPARED: Jan 3, 2022
BILL NUMBER: SB 274 BILL AMENDED:
SUBJECT: Censorship of Digital Expression.
FIRST AUTHOR: Sen. Koch BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
XDEDICATED
FEDERAL
Summary of Legislation: This bill has the following provisions:
(1) Prohibits an interactive computer service or a social media platform from censoring any user of the
interactive computer service or social media platform, the expression of any user of the interactive computer
service or social media platform, or the ability of any user of the interactive computer service or social media
platform to receive the expression of another person, based on:
(A) the viewpoint of the user or another person;
(B) the viewpoint represented in the user's expression or another person's expression; or
(C) the user's geographic location in Indiana.
(2) Provides for specified exceptions to the prohibition.
(3) Provides that an interactive computer service or social media platform that violates the prohibition with
respect to a user of the interactive computer service or social media platform is subject to a civil action by
the user in which a prevailing user is entitled to one or more of the following:
(A) A declaratory judgment.
(B) Injunctive relief.
(C) Recovery of the user's costs and reasonable and necessary attorney's fees.
(4) Provides that an interactive computer service or social media platform that willfully fails to promptly
comply with an order issued by a court in an action brought for a violation of the prohibition commits
contempt of the court, and provides that the court: (A) may impose on the interactive computer service or
social media platform any penalty authorized for contempt of court; and (B) shall impose on the interactive
computer service or social media platform a civil penalty for each day the interactive computer service or
social media platform remains in noncompliance with the order, in an amount and duration sufficient to
secure the interactive computer service's or social media platform's immediate compliance.
SB 274 1 Effective Date: July 1, 2022.
Explanation of State Expenditures:
Explanation of State Revenues: Civil Penalties: The bill allows a court to collect civil penalties from social
media platforms who are found to be in contempt of court. The bill allows a court discretion in ordering a
civil penalty amount, which is to be collected for each day a social media platform is found to be in
contempt. Revenue received from civil penalties collected under the bill would be deposited in the General
Fund. Actual increases in General Fund revenue are indeterminable.
Court Fee Revenue: The bill allows an affected state resident to file an injunctive action against a social
media platform that performs an act of censorship. As a result, state revenue from civil court filing fees could
increase.
A civil costs fee of $100 would be assessed when a civil case is filed. If additional civil actions occur and
court fees are collected, revenue to the state General Fund may increase. A portion of the fee revenue is
deposited into the State User Fee Fund.
Additional fees may be collected at the discretion of the judge and depending upon the particular type of
case.
Explanation of Local Expenditures:
Explanation of Local Revenues: Court Fee Revenue: If additional civil actions occur and court fees are
collected, local governments would receive additional revenue from both a portion of the civil costs fee and
other fees that would be collected.
State Agencies Affected:
Local Agencies Affected: Trial courts, city and town courts.
Information Sources:
Fiscal Analyst: Matthew Leahy, 317-234-9485.
SB 274 2