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 6474 NOTE PREPARED: Feb 26, 2024 BILL NUMBER: HB 1047 BILL AMENDED: Feb 26, 2024 SUBJECT: Sexual Offenses. FIRST AUTHOR: Rep. Negele BILL STATUS: 2 nd Reading - 2 nd House FIRST SPONSOR: Sen. Carrasco FUNDS AFFECTED:XGENERAL IMPACT: State & Local XDEDICATED FEDERAL Summary of Legislation: (Amended) This bill has the following provisions: A. Organizations with Congressional Charters Prior to June 16, 1916 – It provides that an action for injury to a person that results from the sexual abuse of a child, that has expired under the current statute of limitations, may be commenced before July 1, 2025, against specified entities seeking bankruptcy protection, if certain circumstances exist. B. Intimate Images – It provides that certain images created by artificial intelligence or similar means constitute an "intimate image" for purposes of: (1) a civil action involving nonconsensual pornography; or (2) the crime of distributing an intimate image. It specifies that an intimate image, for purposes of the criminal offense, must appear to depict the alleged victim. C. Exemptions from Criminal Prosecution – It exempts certain news media and internet and cloud service providers from the criminal offense under certain circumstances. D. Peep – It provides that "peep", for purposes of the voyeurism statute, includes the use of a concealed camera with the intent of capturing an intimate image. E. It makes conforming amendments. Effective Date: Upon Passage; July 1, 2024. Explanation of State Expenditures: Intimate Image – This provision specifies that distributing certain HB 1047 1 images using artificial intelligence is Class A misdemeanor and a Level 6 felony if the person has a prior unrelated conviction for this offense. Peep – This could increase the number of cases in which voyeurism as a Level 6 felony might be prosecuted. Any increase would be minor. A Level 6 felony is punishable by a prison term ranging from 6 to 30 months, with an advisory sentence of 1 year. The sentence depends on mitigating and aggravating circumstances. The average expenditure to house an adult offender was $28,110 annually, or $76.96 daily, in FY 2023. (This does not include the cost of new construction.) If offenders can be housed in existing facilities with no additional staff, the marginal cost for medical care, food, and clothing is approximately $4,456 annually, or $12.21 daily, per prisoner. These marginal cost estimates are based on contractual agreements with food and medical vendors and projections based on prior years for clothing and hygiene. The entire Level 6 sentence may be suspended and the person placed on either probation or community correction. If no time is suspended, the offender can receive good time credit of 50% and educational credit time. After adjusting for credit time, the offender can be released from prison and placed on parole. Explanation of State Revenues: (Revised) Intimate Image – This provision could expand the number of criminal prosecutions (see State Expenditures) and civil cases. Criminal Cases – If additional court cases occur and fines are collected, revenue to both the Common School Fund and the state General Fund would increase. The maximum fine for a Class A misdemeanor is $5,000 and $10,000 for any felony. Criminal fines are deposited in the Common School Fund. The total fee revenue per case would range between $113 and $135. The amount of court fees 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 criminal, juvenile, and civil violation cases. Civil Cases – 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. Explanation of Local Expenditures: County jail populations could increase if more persons await trial for Level 6 felonies and for being sentenced for misdemeanors post conviction. A Class A misdemeanor is punishable by up to one year in jail. The average cost per day is approximately $64.53 based on the per diem payments reported by U.S. Marshals to house federal prisoners in 11 county jails across Indiana during CY 2021. Explanation of Local Revenues: (Revised) Intimate Image – This provision could expand the number of criminal prosecutions (see State Expenditures) and civil cases. Criminal Cases – If additional court actions occur and a guilty verdict is entered, more revenue will be collected by certain local units. If the case is filed in a court of record, the county general fund will receive $47.40 and qualifying municipalities will receive a share of $3.60. If the case is filed in a municipal court, the county receives $30, and the municipality will receive $46. The following linked document describes the HB 1047 2 fees and distribution of the revenue: Court fees imposed in criminal, juvenile, and civil violation cases. Civil Cases – 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: Department of Correction. Local Agencies Affected: Trial courts, city and town courts. Trial courts, local law enforcement agencies. Information Sources: Indiana Supreme Court, Indiana Trial Court Fee Manual Department of Correction; U.S. Department of Justice Marshals Service. Fiscal Analyst: Mark Goodpaster, 317-232-9852. HB 1047 3