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 6704 NOTE PREPARED: Dec 28, 2023
BILL NUMBER: HB 1239 BILL AMENDED:
SUBJECT: Administrative Proceedings for Unfair Practices.
FIRST AUTHOR: Rep. Steuerwald BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
XDEDICATED
FEDERAL
Summary of Legislation: This bill allows a complaint that alleges the commission of an unfair practice
under dealer services law to be filed with the Office of Administrative Law Proceedings (instead of with the
Dealer Services Division of the Secretary of State). The bill provides that an administrative law judge with
relevant experience shall preside over the proceedings and issue a written decision. The bill also provides
that the administrative law judge may recommend, and the secretary of state may adopt, remedial measures
or other equitable remedies. It provides that the administrative law judge may recommend mediation during
the pendency of the action.
Effective Date: July 1, 2024.
Explanation of State Expenditures: The Secretary of State reports that approximately 12 complaints are
filed annually by dealers against manufacturers and distributors for unfair practices. This bill would allow
a complaint to be filed with the Office of Administrative Law Proceedings instead of the Secretary of State.
The increase in workload to the Office of Administrative Law Proceedings is expected to be implemented
within existing resource and funding levels.
Explanation of State Revenues: Unfair practices are potentially punishable with (1) a Class A infraction,
that carries a maximum judgment of $10,000 benefitting the General Fund and (2) a maximum $10,000 civil
penalty deposited in the SOS Dealer Enforcement Account. This bill would repeal one of the possible
penalties associated with committing an unfair practice.
Additional Information - The bill could reduce the number of Class A infraction convictions in the state. The
maximum judgment for a Class A infraction is $10,000, which is deposited in the state General Fund. The
HB 1239 1 total court fee revenue per case would range between $85.50 and $103. 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:
Explanation of Local Revenues: Penalty Provision: If there is a reduction in court actions where a
judgement would have been entered, local units would receive less revenue. For cases filed in a court of
record, counties receive $33.90 and qualifying municipalities receive a share of $2.10. For cases filed in a
municipal court, the county receives $20, and the municipality will receive $33.50. 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: Secretary of State, Office of Administrative Law Proceedings
Local Agencies Affected: Trial courts, local law enforcement agencies.
Information Sources: Kyle Bonick, Secretary of State; Indiana Supreme Court, Indiana Trial Court Fee
Manual
Fiscal Analyst: Bill Brumbach, 317-232-9559.
HB 1239 2