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 6399 NOTE PREPARED: Dec 15, 2023
BILL NUMBER: HB 1074 BILL AMENDED:
SUBJECT: Ban on High Fructose Corn Syrup as Food Ingredient.
FIRST AUTHOR: Rep. Bartlett BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
XDEDICATED
FEDERAL
Summary of Legislation: This bill prohibits businesses from using high fructose corn syrup in food in
Indiana.
Effective Date: July 1, 2024.
Explanation of State Expenditures: The Indiana Department of Health (IDOH) must enforce the provisions
of this bill. This represent an additional workload [and/or expenditure] on the IDOH 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. [The IDOH’s administrative expenditures are currently paid from the
Tobacco Master Settlement Fund, a dedicated fund.]
Explanation of State Revenues: This bill will impact the sale of common food and drink items such as
sauces, salad dressings, beverages, candies, breads, and other commonly used and consumed items. Places
such as grocery stores, restaurants, bars, vending machines, cafeterias, snack shops, and other locations may
not hold or sell any item containing high fructose corn syrup.
This will result in a significant short-term reduction in Sales Tax revenue, as many common items would no
longer be sold in Indiana, and would likely cause a significant amount of cross-border shopping. However,
the revenue loss could be offset to the extent that consumers substitute with other items that do not contain
high fructose corn syrup. Over time, as businesses adapt to the law, there could potentially be an increase
HB 1074 1 in Sales Tax revenue to the extent that restaurants and food manufacturers use higher cost ingredients in
place of high fructose corn syrup. Sales Tax revenue is deposited in the state General Fund (99.838%),
Commuter Rail Service Fund (0.131%), and Industrial Rail Service Fund (0.031%).
There would also be a similar impact on local food and beverage taxes.
Misdemeanor: This bill makes it a Class B misdemeanor for any person to recklessly violate the provisions
of this bill to sell, store, distribute, hold for service, or use in the preparation of food containing high fructose
corn syrup in Indiana. 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 B misdemeanor is
$1,000. 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.
Explanation of Local Expenditures: Misdemeanor: A Class B misdemeanor is punishable by up to 180
days in jail. The average cost per day to incarcerate a prisoner 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: Misdemeanor: 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 fees and distribution of the revenue: Court fees imposed in
criminal, juvenile, and civil violation cases.
State Agencies Affected: All.
Local Agencies Affected: Trial courts, local law enforcement agencies.
Information Sources:
Fiscal Analyst: Jason Barrett, 317-232-9809.
HB 1074 2