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 6759 NOTE PREPARED: Dec 29, 2023 BILL NUMBER: SB 175 BILL AMENDED: SUBJECT: Packaging for Low THC Hemp Extract. FIRST AUTHOR: Sen. Yoder BILL STATUS: As Introduced FIRST SPONSOR: FUNDS AFFECTED:XGENERAL IMPACT: State & Local XDEDICATED FEDERAL Summary of Legislation: This bill provides that after June 30, 2024, the packaging of low THC hemp extract may not: (1) contain certain statements, artwork, or designs that could reasonably mislead any person to believe that the package contains anything other than low THC hemp extract; (2) bear the likeness or contain a cartoon-like characteristic of a real or fictional person, animal, or fruit that appeals to children; or (3) bear unauthorized trademarks, trade names, famous marks, or other identifying marks. It provides that after June 30, 2024, the packaging of low THC hemp extract shall: (1) be child proof; (2) be tamper evident; and (3) contain a disclosure statement. Effective Date: July 1, 2024. Explanation of State Expenditures: Explanation of State Revenues: Penalty Provision: The bill’s provisions could increase violations of packaging requirements for distribution of low THC hemp extract. It is a Class B infraction and could be upgraded to a Class A infraction if the person has a prior unrelated judgement concerning the distribution of low THC hemp extract. If additional court cases occur and infraction judgments and court fees are collected, revenue to the state SB 175 1 General Fund may increase. The maximum judgment for a Class B infraction is $1,000 and for a Class A infraction is $10,000, which is deposited in the state General Fund. The 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 additional court actions occur and a judgement is entered, more revenue will be collected by certain local units. If the case is filed in a court of record, the county will receive $33.90 and qualifying municipalities will receive a share of $2.10. If the case is 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: Local Agencies Affected: Trial courts, local law enforcement. Information Sources: Indiana Supreme Court, Indiana Trial Court Fee Manual. Fiscal Analyst: Nate Bodnar, 317-234-9476. SB 175 2