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 6531 NOTE PREPARED: Dec 20, 2023 BILL NUMBER: HB 1063 BILL AMENDED: SUBJECT: Age Verification. FIRST AUTHOR: Rep. King BILL STATUS: As Introduced FIRST SPONSOR: FUNDS AFFECTED:XGENERAL IMPACT: State & Local XDEDICATED FEDERAL Summary of Legislation: This bill requires an adult oriented website operator that displays material harmful to minors to use a reasonable age verification method to prevent a minor from accessing an adult oriented website. It creates a cause of action to permit: (1) the parent or guardian of a child harmed by a violation of the age verification requirement to obtain monetary damages, injunctive relief, and reasonable attorney's fees; and (2) the Attorney General to bring an action based on a violation of the age verification requirement or data retention requirements to obtain injunctive relief, and, after providing notice and an opportunity to cure, a civil penalty of not more than $5,000 per day of violation. The bill prohibits a person that conducts age verification from: (1) retaining the identifying information of an individual seeking to access an adult oriented website; (2) using identifying information for a purpose other than age verification; or (3) collecting identifying information that is not reasonably necessary for purposes of age verification. It permits an individual whose identifying information is misused to bring an action to obtain monetary damages, injunctive relief, and reasonable attorney's fees. Effective Date: July 1, 2024. Explanation of State Expenditures: Age Verification Violation: The bill could increase workload for the Attorney General to the extent that the Attorney General pursues action for a violation of the age verification requirement. Increases in Attorney General workload are expected to be accomplished within existing resource and funding levels. Explanation of State Revenues: Age Verification Violation: If a violation occurs, the Attorney General may collect a maximum civil penalty of not more that $5,000 per day. Increases in revenue to the state General HB 1063 1 Fund would occur to the extent of violations made and pursued. Actual increases in revenue are unknown but expected to be small. 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. 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: 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: Nate Bodnar, 317-234-9476. HB 1063 2