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 6988 NOTE PREPARED: Jan 5, 2024
BILL NUMBER: HB 1340 BILL AMENDED:
SUBJECT: Administrative Rules.
FIRST AUTHOR: Rep. DeLaney BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State
XDEDICATED
FEDERAL
Summary of Legislation: Elimination of Budget Committee Review: The bill removes the requirement that
a proposed agency rule, proposed provisional rule, or proposed interim rule that adds or amends language
to increase or expand application of a fee, fine, or civil penalty or a schedule of fees, fines, or civil penalties
must be submitted to the Budget Committee for review.
Administrative Rules Oversight Committee: It establishes the Administrative Rules Oversight Committee to
receive complaints regarding a rule or practice of an agency and review certain agency rules.
Effective Date: Upon passage.
Explanation of State Expenditures: Administrative Rules Oversight Committee: The bill establishes the
Administrative Rules Oversight Committee (AROC), with 8 legislative members, that is required to meet
twice a year (in addition to one biennial organizational meeting). Members are entitled to a per diem,
mileage, and travel allowances. Recent expenditures for a similarly sized task force that held 3 meetings in
the 2023 interim was about $7,200. Expenses are paid from appropriations to the Legislative Council and
the Legislative Services Agency (LSA). The LSA provides staff support for legislative interim committees.
The AROC is required to receive, and is authorized to review, a complaint filed by a person regarding a rule
or practice of an agency. The AROC may also, on its own initiative, review agency rules and practices,
proposed rules, or a failure of an agency to adopt a rule and may make recommendations.
Elimination of Budget Committee Review: The bill will minimally reduce workload for the Budget
Committee, and for any state agency that does or will impose, increase, or expand the application of a fee,
HB 1340 1 fine, or civil penalty, as the bill would eliminate the requirement for a Budget Committee review, which was
implemented with HEA 1623-2023.
Explanation of State Revenues: Continued Enforcement of Fees, Fines, and Civil Penalties Previously
Awaiting Review: Under HEA 1623-2023, a state agency must withdraw or cease to enforce any
nonconforming fee, fine, or civil penalty if the agency is not able to obtain Budget Committee review, prior
to June 30, 2024, to ensure conformity to the new standards. The bill’s provision may avoid a potential
reduction in revenue if any agency would not have been able to obtain this review in time and would have
had to forego collection of the fee, fine, or civil penalty.
Explanation of Local Expenditures:
Explanation of Local Revenues:
State Agencies Affected: Budget Committee; potentially all.
Local Agencies Affected:
Information Sources:
https://www.in.gov/sba/files/2.-Aug-2023-Budget-Committee-Minutes-Signed.pdf
https://www.in.gov/sba/files/2.-Sept-2023-Budget-Committee-Minutes-Final-Signed.pdf
https://www.in.gov/sba/files/2.-November-2023-Minutes-Signed.pdf
https://www.in.gov/sba/files/3.-December-2023-Agenda.pdf
https://www.in.gov/omb/rule-approval-process/headocumentation/
Fiscal Analyst: Heather Puletz, 317-234-9484.
HB 1340 2