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 6010 NOTE PREPARED: Sep 27, 2023
BILL NUMBER: HB 1030 BILL AMENDED:
SUBJECT: Passenger Restraint Systems.
FIRST AUTHOR: Rep. Torr BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
XDEDICATED
FEDERAL
Summary of Legislation: This bill repeals a provision specifying that failure to comply with the laws
concerning safety belt and child passenger restraint system use does not constitute fault or contributory
negligence. It repeals a prohibition against the admission of evidence of failure to comply with the law
concerning safety belt use in civil actions to mitigate damages.
Effective Date: July 1, 2024.
Explanation of State Expenditures:
Explanation of State Revenues: Summary - The bill removes language from statute that limits an insured’s
fault in motor vehicle accidents as well as financial responsibility for an insured’s insurance company to
compensate for damages. Removing this language could result in additional civil cases.
Additionally, insurance companies could increase premiums in the state to account for increased exposure
resulting from the bill’s changes in determining fault. As a result, revenue to the General Fund could increase
from civil court fees as well as revenue collected from either the insurance premium tax or the adjusted gross
income (AGI) tax. Increases in revenue are indeterminable.
Additional Information - Court Fee Revenue: If additional civil cases occur and court fees are collected,
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.
HB 1030 1 Impact on Insurance Premiums: Domestic insurers have the option to pay taxes on insurance premiums
written in the state or to pay the AGI tax. Foreign insurers are required to pay taxes on premiums written in
the state, and some foreign insurers are assessed additional retaliatory taxes. In these cases, the minimum tax
rate would be 1.3% of written premiums. Revenue received from the AGI and insurance premium tax is
deposited in the General Fund.
To the extent individuals obtain these policies from foreign insurers, the General Fund could receive
additional revenue from taxes paid on insurance premiums. If these policies are obtained from domestic
insurers, the General Fund could receive additional revenue from the AGI tax. In both of these cases, any
increase in General Fund revenue is indeterminable, but expected to be minor.
For FY 2023, the insurance premium tax generated approximately $261.8 M in revenue.
Explanation of Local Expenditures:
Explanation of Local Revenues: Court Fee Revenue: 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:
Local Agencies Affected: Trial courts, city and town courts.
Information Sources: Indiana Supreme Court, Indiana Trial Court Fee Manual; Legislative Services
Agency, Indiana Handbook of Taxes, Revenues, and Appropriations, FY 2023.
Fiscal Analyst: Bill Brumbach, 317-232-9559.
HB 1030 2