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 6789 NOTE PREPARED: Jan 3, 2024 BILL NUMBER: SB 179 BILL AMENDED: SUBJECT: Commission on Court Appointed Attorneys. FIRST AUTHOR: Sen. Koch BILL STATUS: As Introduced FIRST SPONSOR: FUNDS AFFECTED: GENERAL IMPACT: State & Local XDEDICATED FEDERAL Summary of Legislation: This bill changes the name of the Indiana Public Defender Commission to the Indiana Commission on Court Appointed Attorneys (CCAA). It provides that a county may be reimbursed for 40% of indigent defense services provided for misdemeanors in a superior or circuit court. (Current law excludes misdemeanors from reimbursement.) It provides that through June 30, 2029, certain counties may be reimbursed for 100% of indigent defense services provided for misdemeanors in a superior or circuit court. It requires the CCAA to submit a report to the Legislative Council and the Budget Committee not later than December 1, 2029, concerning the 100% reimbursement for indigent defense services provided for misdemeanors. It requires each clerk of the court to make an annual report to the CCAA concerning certain fees. It changes the distribution of fees for indigent defendant representation. It increases certain fees if a court finds a person is able to pay the cost of representation by counsel. It also prohibits the CCAA from: (1) requesting additional appropriations from the General Assembly for misdemeanor reimbursement; or (2) reimbursing certain counties for misdemeanor reimbursement; before July 1, 2029. Effective Date: July 1, 2024. Explanation of State Expenditures: Public Defense Fund - Beginning July 1, 2024, the bill provides that participating pilot counties may begin requesting reimbursement up to 100% of the county’s or multi-county public defender’s office’s expenditures for indigent defense services in misdemeanor cases. If additional SB 179 1 claims are approved, OFMA estimates the bill could potentially increase state expenditures from the Public Defense Fund by approximately $76,761 to $812,313 annually beginning in FY 2025. Any increase in state expenditures from the fund would depend upon authorization by the Commission. This estimate includes reimbursement at a rate between 80% and 100%, and the additional fee revenue collected from the County Supplemental Public Defender Services Fund. Also, the bill could potentially result in cost savings to the Public Defense Fund to the extent the Commission approves reimbursement at a rate less than 80% of expenditures in misdemeanor cases. The Commission reimburses counties for the following costs of providing indigent defense services: attorney fees, investigations, expert witnesses, paralegal, transcript costs, and costs of direct appeals. Additional Information - Indiana Commission on Court Appointed Attorneys (CCAA): The bill will increase the workload of the CCAA to fulfill the bill’s requirements. The CCAA shall submit a report concerning how the misdemeanor reimbursement pilot project has impacted attorney rates, jail population, trial rates, and case outcomes in the pilot counties. The report must be submitted no later than December 1, 2029, to the Legislative Council and the Indiana Budget Committee. If a county opts out of participating in the pilot project, the CCAA must publish on its website the replacement county. Name Change: This provision will have no fiscal impact on the Commission. Explanation of State Revenues: County Supplemental Public Defender Services Fund: The bill requires the clerk of the court to transfer 50% of the County Supplemental Public Defender Services Fee revenue to the Public Defense Fund. As a result, the bill will increase revenue to the fund by approximately $1.63 M annually. This estimate is based on a five-year average of revenue collected from the fee. The following table shows the amount of revenue deposited in the fund. Revenue Deposited in the County Supplemental Public Defender Services Fund 2017 - 2021 Year CY 2017 CY 2018 CY 2019 CY 2020 CY 2021 Revenue $3.21 M $ 3.34 M $3.38 M $2.85 M $3.59 M Potential Savings: The additional revenue to the Public Defense Fund could offset the cost of the misdemeanor reimbursement pilot program. If the Commission approves reimbursement at a rate less than 80%, the additional fee will result in a revenue increase to the fund. Explanation of Local Expenditures: The bill could reduce local expenditures to the extent pilot counties are eligible to recoup cost incurred for misdemeanor defense services. To the extent the Commission reimburses misdemeanor expenses at a rate of 100%, OFMA estimates that local expenditure could potentially be reduced by approximately $2.0 M to $2.45 M annually. However, the actual fiscal impact will depend on the participating counties. The following counties are participating in the pilot project: Adams, Allen, Clark, DeKalb, Hendricks, Lawrence, and Pulaski Counties. The selected pilot counties shall quarterly report to the CCAA regarding reimbursements requested and SB 179 2 received from the fund for the county’s expenditures for indigent defense services. This provision will increase the workload of participating pilot counties. Explanation of Local Revenues: The bill will reduce county and municipal revenue from the County Supplemental Public Defender Services Fund. (See Explanation of State Revenues.) State Agencies Affected: Public Defender Commission; Legislative Council; Budget Committee. Local Agencies Affected: County public defenders; county auditors. Information Sources: Indiana Public Defender Commission, Funding and Reimbursement History, https://www.in.gov/publicdefender/funding-and-reimbursement-history/; Indiana Supreme Court, Reports & Statistics, https://www.in.gov/courts/publications/reports/. Fiscal Analyst: Corrin Harvey, 317-234-9438. SB 179 3