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 6585 NOTE PREPARED: Dec 19, 2021 BILL NUMBER: SB 276 BILL AMENDED: SUBJECT: Cause of Action for Civil Rights Violations. FIRST AUTHOR: Sen. Koch BILL STATUS: As Introduced FIRST SPONSOR: FUNDS AFFECTED: XGENERAL IMPACT: State & Local XDEDICATED XFEDERAL Summary of Legislation: The bill prohibits a governmental entity, including a state educational institution (SEI), from discriminating against persons: (1) over the exercise of rights provided or protected by the Constitution of the United States; or (2) by granting preferential treatment to any individual or group on the basis of race, sex, color, ethnicity, or national origin in the operation of public employment, public education, or public contracting. It specifies certain exemptions. The bill provides that prohibited discrimination may be asserted as a claim or defense in a judicial or administrative proceeding regardless of whether the relevant entity or institution is a party to the proceeding. It provides that, if the relevant entity or institution is not a party to a proceeding, the relevant entity or institution has an unconditional right to intervene in order to respond to an action or claim alleging discrimination. The bill specifies certain awards and remedies. It defines certain terms. Effective Date: July 1, 2022. Explanation of State Expenditures: The bill could increase expenditures for state agencies and SEIs if a court finds that a governmental entity or SEI has discriminated against a person or group under this bill. The prevailing person would be awarded statutory damages of $1,000 a day until the violation is cured. They may also be awarded declaratory relief, injunctive relief, actual damages, compensatory damages, and costs of litigation including reasonable attorney’s fees. [This bill has the potential to impact all agencies, thus impacting all funds that provide operating funds to agency staff.] Additional Information - The bill may reduce workload for the Civil Rights Commission if civil rights cases involving SEIs and government entities end up being heard in court as civil actions rather than going through SB 276 1 the complaint process through the Civil Rights Commission. Under current law, civil actions occur in civil rights cases only when both the claimant and the respondent agree to have the case decided in a court of law, or upon appeal after administrative remedies have been exhausted. Explanation of State Revenues: Court Fee Revenue: If additional civil actions occur and court fees are collected, revenue to the state General Fund may increase. A civil costs fee of $100 would be assessed when a civil case is filed, 70% of which would be deposited in the state General Fund if the case is filed in a court of record or 55% if the case is filed in a city or town court. In addition, some or all of the judicial salaries fee ($20), public defense administration fee ($5), court administration fee ($5), and the judicial insurance adjustment fee ($1) are deposited into the state General Fund. The proceeds from the automated record keeping fee ($20) are 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: See Explanation of State Expenditures. Explanation of Local Revenues: Court Fee Revenue: If additional civil actions occur, local governments would receive revenue from the following sources. The county general fund would receive 27% of the $100 civil costs fee that is assessed in a court of record. Cities and towns maintaining a law enforcement agency that prosecutes at least 50% of its ordinance violations in a court of record may receive 3% of court fees. If the case is filed in a city or town court, 20% of the court fee would be deposited in the county general fund and 25% would be deposited in the city or town general fund. Additional fees may be collected at the discretion of the judge, depending upon the particular type of case. Persons filing a civil case are also required to pay the following fees that are deposited in local funds. The document storage fee ($5) is deposited into the clerk record perpetuation fund. The following fees are deposited into the general fund of the county in which the court is located: • Document fees ($1 per page) are charged for preparing transcripts or copies of record or certificate under seal. • A civil garnishee defendant service fee ($10) is collected from the filing party for each defendant beyond the first three garnishee defendants cited in the lawsuit. State Agencies Affected: All; State Educational Institutions; Civil Rights Commission. Local Agencies Affected: All; trial courts, city and town courts. Information Sources: Fiscal Analyst: Camille Tesch, 317-232-5293. SB 276 2