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 6016 NOTE PREPARED: Oct 23, 2023
BILL NUMBER: HB 1014 BILL AMENDED:
SUBJECT: Infant Formula Price Gouging.
FIRST AUTHOR: Rep. Bauer M BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
XDEDICATED
FEDERAL
Summary of Legislation: This bill defines "price gouging" to include charging a consumer an
unconscionable amount for the sale of infant formula. It provides that price gouging occurs in the sale of
infant formula if the price at which the infant formula is sold grossly exceeds the average price charged for
infant formula of the same brand and type in retail establishments in Indiana on or about the date on which
the infant formula is sold. It authorizes the attorney general to investigate complaints, seek injunctive relief,
seek restitution for victims, and institute actions to collect civil penalties in cases of price gouging in the sale
of infant formula. It also provides that a court may assess a civil penalty of up to $1,000 for each transaction
against a retailer found to have committed price gouging in the sale of infant formula.
Effective Date: Upon passage.
Explanation of State Expenditures: Office of the Attorney General (AG): The bill could increase the
workload of the AG to investigate consumer complaints regarding price gouging of infant formula. The AG
may seek injunctive relief, restitution for victims, and collect a maximum civil penalty of up to $1,000 for
each transaction. The bill’s requirements are within the agency’s routine administrative functions and should
be able to be implemented with no additional appropriations, assuming near customary agency staffing and
resource levels.
Explanation of State Revenues: Summary - The bill could increase civil court cases if the Attorney General
finds that a retailer has committed price gouging at which the infant formula is sold. As a result, the General
Fund could receive additional revenue from civil penalties and court case filings.
Additional Information - If the AG files a civil action against a nongovernmental party and prevails, court
HB 1014 1 fees may be collected from the defendant [IC 33-37-3-1] and revenue to the state General Fund will increase.
The total revenue per case would range between $100 and $122. The amount deposited will vary depending
on whether the case is filed in a court of record or a municipal court. The following linked document
describes the fees and distribution of the revenue: Court fees imposed in civil, probate, and small claims
cases.
Explanation of Local Expenditures: To the extent additional civil court cases are filed by the AG, the bill
could potentially increase the workload of the court.
Explanation of Local Revenues: Summary - The bill could increase local revenue received from civil court
fees. Total increases in local revenue are indeterminable, but expected to be small.
Additional Information - If additional cases occur, revenue will be collected by certain local units. If the case
is filed in a court of record, the county will receive $32 and qualifying municipalities will receive a share of
$3. If the case is filed in a municipal court, the county receives $20, and the municipality will receive $37.
The following linked document describes the fees and distribution of the revenue: Court fees imposed in
civil, probate, and small claims cases.
State Agencies Affected: Office of the Attorney General.
Local Agencies Affected: Trial courts, city and town courts.
Information Sources: Indiana Supreme Court, Indiana Trial Court Fee Manual.
Fiscal Analyst: Corrin Harvey, 317-234-9438.
HB 1014 2