Indiana 2022 2022 Regular Session

Indiana Senate Bill SB0358 Introduced / Fiscal Note

Filed 01/12/2022

                    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 7186	NOTE PREPARED: Jan 4, 2022
BILL NUMBER: SB 358	BILL AMENDED: 
SUBJECT: Personal Information and Social Media Policies.
FIRST AUTHOR: Sen. Brown L	BILL STATUS: As Introduced
FIRST SPONSOR: 
FUNDS AFFECTED:XGENERAL	IMPACT: State
XDEDICATED
FEDERAL
Summary of Legislation: This bill has the following provisions:
(1) Establishes a new article in the Indiana Code concerning the security and privacy of personal information. 
(2) Sets forth the following within the new article: 
(1) General duties of businesses that collect personal information about Indiana consumers. 
(2) The rights of Indiana consumers to do the following: 
(A) Request information about the personal information businesses collect about them. 
(B) Delete personal information collected about them by businesses. 
(C) Request that a business correct inaccurate personal information about them. 
(D) Request that a business that sells personal information to disclose the types of
information sold and to whom it was sold. 
(E) Opt out of the sale or sharing of personal information (or opt into such sale or sharing
in the case of a consumer less than 16 years of age). 
(3) Prohibits a business from discriminating against a consumer for exercising any of these rights. 
(4) Provides that the consumer protection division of the office of the Attorney General is responsible for
the administration and enforcement of these provisions. 
(5) Requires the Attorney General to adopt rules to implement these provisions. 
(6) Provides that a violation of these provisions is a deceptive consumer act that is actionable under the
deceptive consumer sales act by a consumer or the Attorney General. 
(7) Establishes a new article in the Indiana Code concerning the disclosure of certain administrative
procedures used by social media services. 
(8) Includes within this new article the requirement that an owner or operator of a social media service
publish on the social media service's Internet web site the procedures, standards, policies, algorithms, or other
SB 358	1 mechanisms used by the owner or operator for: 
(1) determining how content is selected for dissemination to users of the service; 
(2) evaluating user-created content for compliance with the service's terms of service; 
(3) imposing penalties on users for violating the service's terms of service; and 
(4) facilitating an appeal by a user of: 
(A) a finding that the user has violated the service's terms of service; or 
(B) a penalty imposed on the user for such a violation. 
(9) Provides that a violation of this requirement is actionable by the Attorney General as a deceptive
consumer sales act.
Effective Date:  July 1, 2022.
Explanation of State Expenditures: This bill provides regulation of businesses that collect personal
information as well as information disclosure requirements for social media providers. Violation of the bill’s
regulations is punishable as a deceptive act actionable by the Attorney General. To the extent the Attorney
General enforces provisions of this bill, agency workload would increase to investigate and potentially
prosecute allegations.
The bill’s requirements represent an additional workload [and/or expenditure] on the agency outside of the
agency’s routine administrative functions, and 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.
Explanation of State Revenues: Deceptive acts discovered by the Attorney General carry a maximum
$5,000 civil penalty for each violation that benefits the General Fund. If this bill increases the number of
deceptive acts discovered in the state, revenue to the General Fund will increase from civil penalties paid by
violators. Actual increases in revenue are unknown but expected to be small.
A consumer may also take action for violations of the bill’s provisions. 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: 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: Attorney General.
Local Agencies Affected: Trial courts, city and town courts.  
Information Sources: 
SB 358	2 Fiscal Analyst: Bill Brumbach,  317-232-9559.
SB 358	3