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 6125 NOTE PREPARED: Feb 27, 2024 BILL NUMBER: SB 15 BILL AMENDED: Feb 27, 2024 SUBJECT: Veterans' Benefits. FIRST AUTHOR: Sen. Tomes BILL STATUS: CR Adopted - 2 nd House FIRST SPONSOR: Rep. Bartels FUNDS AFFECTED:XGENERAL IMPACT: State & Local XDEDICATED FEDERAL Summary of Legislation: (Amended) This bill provides that certain disability ratings and educational cost exemptions apply to an individual whose parent enlisted in the armed forces after June 30, 2017 (instead of June 30, 2011). The bill requires that the Indiana Department of Labor (DOL) consult with the Indiana Department of Veterans' Affairs (IDVA) to create and distribute a veterans' benefits and services poster. The bill provides that the veterans' benefits and services poster must contain certain information. It also requires that Indiana employers with more than 50 full-time employees (or their equivalent) display the veterans' benefits and services poster in a conspicuous place. Effective Date: July 1, 2024. Explanation of State Expenditures: (Revised) Modification of Reduction of Fee Exemption Based on Disability Rating: There will be minimal impact on expenditures for fee exemptions due to this bill in the near term because very few CVO applicants for financial assistance have parents who enlisted after June 30, 2011. The Indiana Department of Veterans Affairs (IDVA) reports that applicants who fall under the 2011 enlistment rule have thus far had disability ratings of 80% or above and are receiving the same 100% exemption to which they would be entitled under this bill. However, this bill will increase expenditures for CVO fee remissions in the future as children of veterans who entered the military after June 30, 2011, and before July 1, 2017, reach college age and become eligible. The impact will increase over time, increasing significantly in the late 2030s and continuing to increase throughout the 2040s. (Revised) Commission for Higher Education (CHE): The CHE administers the CVO fee exemptions and SB 15 1 would have to make administrative changes based on the provisions of this bill. The provision that delays reduction of the fee exemption based on the parent’s disability rating would simplify administration of the fee exemption for affected applicants. The bill’s requirements should be able to be implemented with no additional appropriations, assuming near customary agency staffing and resource levels. Department of Veterans Affairs (IDVA): Determining whether students are eligible for a fee exemption based on the service connected death or disability of a parent is within the IDVA’s routine administrative functions and should be able to be implemented with no additional appropriations, assuming near customary agency staffing and resource levels. Workplace Signage: This bill requires DOL and IDVA to develop and distribute a veterans’ benefits and services poster for businesses to display. This constitutes a one-time workload increase for both DOL and IDVA, but the requirements are within each agency’s routine administrative functions and should be able to be implemented with no additional appropriations, assuming near customary agency staffing and resource levels. [Both agencies are funded by General Fund appropriations.] All state agencies would be required to print and display the posters. (Revised) Additional Information – Modification of Reduction of Fee Exemption Based on Disability Rating: The bill modifies the provision which reduces the fee exemption for students based on their parents’ disability rating. This aspect of current law applies to students whose parents joined the military after June 30, 2011. Under current law, approximately 72% of that cohort would experience a significant decrease in their benefits relative to those whose parents joined the military before July 1, 2011. Under this bill, students whose parents entered the military after June 30, 2011, and before July 1, 2017 would receive full fee exemptions. Workplace Signage: All posters and notices that are required to be posted by Indiana employers are posted on the DOL website. Although commercially-produced versions of signs are available, DOL recommends employers simply print the required signage. No additional expenditures should be required by either DOL or IDVA to design or distribute the posters. Explanation of State Revenues: Explanation of Local Expenditures: Local units with more than 50 employees would be required to print and display the posters. Explanation of Local Revenues: State Agencies Affected: Department of Labor, Department of Veterans Affairs, all agencies, Commission for Higher Education, state educational institutions. Local Agencies Affected: Local units with more than 50 employees. Information Sources: Ambat Babu, Indiana Department of Labor; Anthony Weber, IDVA; https://www.in.gov/dol/publications/; US Department of Veterans Affairs VETPOP2020 dataset, https://www.va.gov/vetdata/veteran_population.asp. Fiscal Analyst: Alexander Raggio, 317-234-9485. SB 15 2