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 6686 NOTE PREPARED: Dec 28, 2023
BILL NUMBER: HB 1316 BILL AMENDED:
SUBJECT: Next Level Trust Fund.
FIRST AUTHOR: Rep. Snow BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State
XDEDICATED
FEDERAL
Summary of Legislation: Repeal of Next Generation Trust Fund - This bill repeals the provision
establishing the Next Generation Trust Fund (NGTF). It requires that title to any proceeds transferred to and
held in the NGTF, including any money and investments held in the NGTF, and under any trust agreement
entered into by the Indiana Finance Authority (IFA) and the Treasurer of State, be transferred to the Next
Level Indiana Trust Fund (NLITF). The bill also provides that upon completion of the transfer to the NLITF
the NGTF shall cease and be of no further force or effect as a charitable trust or otherwise.
Civil Immunity - The bill provides that the officers, directors, and employees of the IFA and the Treasurer
of State are immune from civil liability in connection with any transfer to the NLITF.
Quorum Requirement - The bill also changes the quorum requirement for the NLITF Investment Board.
Investments - The bill provides that not any one investment made from the NLITF in an investment fund may
exceed $25 M unless the investment fund is specifically created to meet a need in Indiana's ecosystem as
determined by the NLITF Investment Board.
Lease Rental Payments - The bill provides that the principal of the NLITF may be used to make and secure
lease rental payments that: (1) are payable from grant proceeds from the federal government; and (2) will
be used to pay bonds or notes issued by the IFA. It provides that if grant proceeds received from the federal
government are not sufficient to pay a lease rental payment, the IFA shall notify the trustee of the NLITF
when the lease rental payment is due and the amount of the shortfall. It requires, upon receiving notice from
the IFA, the trustee of the NLITF to promptly transfer moneys in the NLITF in the amount of the shortfall,
or at the direction of the IFA, for the purpose of making the lease rental payment.
HB 1316 1 The bill requires, if such a transfer is made, the State Budget Director to transfer funds from the State
General Fund to the NLITF in an amount equal to the transfer. It also requires the State Budget Director to
submit a report to the Budget Committee within 30 days after the transfer.
Effective Date: July 1, 2024.
Explanation of State Expenditures: Summary - The bill codifies potential uses of the principal balance of
the NLITF that are currently afforded to the NGTF in statute. These changes are expected to have no fiscal
impact on state expenditures.
Additional Information - The bill expands instances where use of the principal of the NLITF can be used to
include (1) lease rental payments where grant proceeds are payable by the federal government and (2) to pay
bonds or notes issued by the IFA. The bill also specifies that if federal grants are insufficient to make lease
payments, that the State Budget Agency shall transfer General Funds to the NLITF to satisfy any payment
shortfall. Additionally, if NLIT funds are expended for purposes outlined in the bill, the workload of the
State Budget Agency to report as such to the State Budget Committee would increase.
Explanation of State Revenues: Summary - This bill would repeal the Next Generation Trust Fund (NGTF)
and transfer the balance of the NGTF to the Next Level Indiana Trust Fund (NLITF). The principal balance
of each Fund is currently $250 M, however by consolidating the funds into the NLITF, the total principal
balance of the Fund will be $500 M.
Interest earnings on the NGTF and NLITF are both transferred to the Major Moves Construction Fund every
five years, with the next scheduled interest transfer set to occur in 2026. The transfer of the principal balance
is not expected to have an impact on periodic interest earnings transfers to the MMCF.
Additional Information - Both the NGTF and the NLITF are nonreverting funds where interest earnings are
transferred to the Major Moves Construction Fund (MMCF) every 5 years. The last scheduled transfer from
each Fund occurred on March 15, 2021, with the next transfer set to occur in 2026.
The three transfers of interest earnings from the NGTF to the MMCF totaled $279.2 M ($72.0 M in 2021;
$83.1 M in 2016; $124.1 M in 2011). The NLITF has made a single interest earnings transfer to the MMCF
of $18.2 M in 2021.
Explanation of Local Expenditures:
Explanation of Local Revenues:
State Agencies Affected: IFA, State Budget Agency, Treasurer of State.
Local Agencies Affected:
Information Sources: Dan Huge, IFA; Mike Frick, Treasurer of State; Comptrollers Database.
Fiscal Analyst: Bill Brumbach, 317-232-9559.
HB 1316 2