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 6765 NOTE PREPARED: Jan 25, 2022
BILL NUMBER: SB 293 BILL AMENDED:
SUBJECT: Manufactured Home Dealers.
FIRST AUTHOR: Sen. Crider BILL STATUS: As Passed Senate
FIRST SPONSOR: Rep. Pressel
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
XDEDICATED
FEDERAL
Summary of Legislation: This bill has the following provisions:
(1) Amends the definition of "major component parts" to include a catalytic converter.
(2) Provides certain requirements for an automotive salvage recycler who is purchasing catalytic converters.
(3) Defines "manufactured home dealer".
(4) Creates a new chapter concerning the licensing of dealers.
(5) Provides that a dealer may hold an offsite sale under certain conditions.
(6) Requires certain entities to obtain liability insurance coverage in certain amounts.
(7) Provides that it is an unfair practice to sell, exchange, or transfer a salvage vehicle without written
disclosure.
(8) Provides that a dealer is exempt from certain mailing address requirements.
(9) Requires that a dealer must remain in good standing with the Indiana State Department of Health while
holding a license.
Effective Date: July 1, 2022; July 1, 2023.
Explanation of State Expenditures: This bill could increase the workload of the Secretary of State to
ensure compliance with the requirements created in the bill. Increases in workload are expected to be
accomplished within existing resource and funding levels.
Explanation of State Revenues: Summary: This bill is expected to (1) decrease annual revenue distributions
to the State Highway Fund (by way of the MVHA), the Indiana State Police, and Attorney General by a total
of $2,500 to $3,300, and (2) increase annual net revenue to the Secretary of State Dealer Compliance
SB 293 1 Account between approximately $2,200 and $3,200 per year.
Penalty Provision: The bill also places regulations on the purchase of catalytic converters. To the extent
these regulations are violated, the number of Class A infraction convictions in the state could increase. The
maximum judgment for a Class A infraction is $10,000, which would be deposited in the state General Fund.
However, any additional revenue is likely to be small.
Additional Information: The bill removes manufactured home dealers from the definition of motor vehicle
dealers but specifies that manufactured home dealers would still be subject to licensure with the Secretary
of State. Licensure fees for manufactured home dealers are the same as those collected for a motor vehicle
dealer; however, the distribution of licensure fee revenue is different.
Revenue distributions for motor vehicle dealer license fees have the following distributions; 30% to the
Secretary of State Dealer Compliance Account, 40% to the Motor Vehicle Highway Account (MVHA), 20%
to the Indiana State Police, and 10% to the Attorney General. The proposed fee for a manufactured home
dealer license is distributed only to the Secretary of State Dealer Compliance Account.
The Secretary of State’s Office estimates that approximately 150 to 200 manufactured home dealers apply
for a motor vehicle license annually. This bill is expected to decrease revenue distributions to the State
Highway Fund (by way of the MVHA), the Indiana State Police, and Attorney General by a total of $2,500
to $3,300 each year. The Secretary of State Dealer Compliance Account is expected to receive an additional
$3,200 to $4,200 per year from the change in revenue distribution.
The bill also repeals the $5 fee for a revised motor vehicle dealer license, which will decrease Secretary of
State Dealer Compliance Fund revenue by less than $1,000 per year. The bill is expected to increase annual
net revenue to the Secretary of State Dealer Compliance Account between approximately $2,200 and $3,200
per year.
Explanation of Local Expenditures:
Explanation of Local Revenues: Because the bill reduces revenue the MVHA receives, local units of
government will receive less revenue from the MVHA funding formula. The revenue loss to all local units
is estimated to be between $700 and $900 per year.
Penalty Provision: If additional court actions are filed and a judgment is entered, local governments would
receive revenue from court fees. However, any additional revenue is likely to be small.
State Agencies Affected: Secretary of State; Indiana Department of Transportation; Indiana State Police;
Attorney General.
Local Agencies Affected: All.
Information Sources: Rachael Ehlich, Secretary of State.
Fiscal Analyst: Bill Brumbach, 317-232-9559.
SB 293 2