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 6624 NOTE PREPARED: Jan 31, 2024
BILL NUMBER: HB 1183 BILL AMENDED: Jan 31, 2024
SUBJECT: Foreign Ownership of Agricultural Land.
FIRST AUTHOR: Rep. Culp BILL STATUS: 2nd Reading - 1st House
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
XDEDICATED
FEDERAL
Summary of Legislation: This bill provides that, beginning July 1, 2024, a real estate closing including
agricultural land must include an affidavit in which the purchaser affirms that the purchaser is not prohibited
from acquiring or leasing agricultural land. It provides that, beginning July 1, 2024, a prohibited person may
not acquire or lease agricultural land or a mineral right or water or riparian right on agricultural land located
in Indiana. The bill requires the Attorney General to investigate an acquisition or lease of agricultural land
if the Attorney General believes the acquisition or lease is in violation of law. It provides certain enforcement
powers to the Attorney General for a transfer of agricultural land in violation of the law. The bill also
provides that agricultural land or interests in agricultural land found to be acquired in violation of law are
subject to judicial foreclosure.
Effective Date: July 1, 2024.
Explanation of State Expenditures: Office of the Attorney General: This bill could increase the
administrative workload for the Office of the Attorney General to the extent the office would need to
investigate an acquisition or lease of agricultural land by a prohibited person in violation of the bill’s
provisions.
Explanation of State Revenues: The bill’s provision could result in an increase in revenues attributable to
agricultural land that is sold via a judicial foreclosure - a process that would be initiated by the Office of
Attorney General. To the extent that agricultural land is sold via a judicial foreclosure, the state General
Fund would receive additional revenue from a portion of the sale proceeds, related to the costs and expenses
of the Attorney General’s actions associated with the case. The increases in revenue are indeterminable.
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Additionally, 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: City and Town Courts: This bill could increase the administrative
workload for local courts to the extent the courts would need to process cases involving an acquisition or
lease of agricultural land by a prohibited person in violation of the bill’s provisions.
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: James Johnson, 317-232-9869.
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