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 6786 NOTE PREPARED: Feb 6, 2024
BILL NUMBER: SB 202 BILL AMENDED: Feb 5, 2024
SUBJECT: State Educational Institution Matters.
FIRST AUTHOR: Sen. Deery BILL STATUS: As Passed Senate
FIRST SPONSOR: Rep. Behning
FUNDS AFFECTED:XGENERAL IMPACT: State
DEDICATED
FEDERAL
Summary of Legislation: This bill amends the duties of state educational institutions' diversity committees.
The bill provides that certain offices or individuals established or employed by a state educational institution
(SEI) regarding diversity programming must include within the mission of the office or position
programming that substantially promotes both cultural and intellectual diversity.
This bill has the following provisions regarding free inquiry, free expression, and intellectual diversity:
(1) It requires the establishment of certain policies regarding: (A) disciplinary actions for certain persons that
materially and substantially disrupt protected expressive activity; (B) limiting or restricting the granting of
tenure or a promotion if certain conditions related to free inquiry, free expression, and intellectual diversity
are not met; and (C) disciplinary actions that will be taken if, after a review, a determination has been made
that a tenured faculty member has failed to meet certain criteria related to free inquiry, free expression, and
intellectual diversity.
(2) It requires the review and consideration, at least every five years, of certain criteria related to free inquiry,
free expression, and intellectual diversity.
(3) It requires the establishment of a procedure that allows students and employees to submit complaints that
a faculty member or contractor is not meeting certain criteria related to free inquiry, free expression, and
intellectual diversity and establishes requirements regarding the procedure and submitted complaints.
(4) It establishes consideration requirements before an institution renews an employment agreement or other
SB 202 1 contract with, makes a bonus decision regarding, or completes a review or performance assessment of a
faculty member or contractor.
(5) It prohibits requiring an applicant, employee, or contractor to pledge allegiance to or make a statement
of personal support for any: (A) certain policies or actions; or (B) political or ideological movements.
(6) It establishes restrictions regarding awarding admission, enrollment, employment, benefits, hiring,
reappointment, promotion, or granting tenure to an applicant, employee, or contractor on the basis of the
viewpoints expressed in a submitted pledge or statement.
(7) It requires certain information be included in an institution's programming for new students.
(8) It requires the adoption of a statement on neutrality that makes a distinction between the official positions
of an institution from the individual viewpoints of the institution's employees, contractors, students, and
alumni.
(9) It allows the Commission for Higher Education (CHE) to establish a survey that attempts to collect
information from students regarding the current perceptions of whether free speech and academic freedom
are recognized and fostered by an institution in a manner that welcomes expression of different opinions and
ideologies and requires an institution to promote and provide the survey to students.
(10) It establishes various reporting requirements by institutions or the commission concerning the following:
(A) Complaints submitted regarding faculty members or contractors who are not meeting certain criteria
related to free inquiry, free expression, and intellectual diversity. (B) Institutions' budget allocations for
diversity, equity, and inclusion initiatives.
(11) It provides that certain individuals may request the commission to review a final decision by an
institution concerning a violation of these provisions.
(12) The bill adds member appointments by the Legislative Council to the board of trustees of SEIs (board
of trustees). The bill provides that a board of trustees member who is a state employee is not entitled to per
diem but is entitled to reimbursement for traveling expenses and other certain expenses. It also removes
certain criteria requirements for members of boards of trustees.
(13) The bill requires each SEI to submit certain information at the time the SEI submits its legislative budget
request.
Effective Date: Upon passage; July 1, 2024.
Explanation of State Expenditures: State Educational Institutions (SEIs): SEIs will experience short- and
long-term workload increases as a result of this bill. Each institution may need the equivalent of at least one
additional full-time employee to address the additional workload. [SEIs receive state funding through General
Fund appropriations.]
Commission for Higher Education: CHE will experience a significant workload increase, but depending on
several factors, this bill’s requirements may be met within existing resources. Relevant factors affecting
workload and potential expenditures include the quality and timeliness of information reported by SEIs,
whether CHE opts to establish a survey, and how many petitioners file requests for review of complaints
SB 202 2 regarding intellectual diversity and free inquiry or expression.
SEI Boards of Trustees: This bill increases the membership of some SEI boards of trustees by up to two
members each, and modifies appointing authorities for two board members at each SEI. SEIs will experience
cost increases associated with travel reimbursement and expenses for all additional trustees and per diem pay
for all additional trustees that are not state employees. Any current trustees that are state employees will no
longer receive per diem, which may reduce expenditures for some SEIs. The Legislative Council will
experience an increase in workload associated with selecting trustees. These requirements should will likely
be met within the existing resources of all affected entities.
Additional Information – State Educational Institutions: This bill establishes policy requirements and
constraints affecting aspects of personnel management, academic practice, employee discipline, reporting
requirements, and the adoption of certain procedures. SEIs will experience long-term workload increases
associated with:
1. The requirement that boards of trustees review the free inquiry, free expression and intellectual
diversity practices of each tenured professor at least every five years. (IU Bloomington alone has
over 1,000 tenured faculty, which means the board will have to conduct over 200 reviews per year.)
2. Developing and administering a complaint process.
Other provisions are likely to produce a short-term increase in workload as changes are implemented but are
unlikely to have a significant long-term effect on workload. The additional long-term workload for each SEI
could be in excess of one full-time equivalent employee. The additional funds and resources required could
be supplied through existing staff and resources currently being used in another program or with new
appropriations. Ultimately, the source of funds and resources required to satisfy the requirements of this bill
will depend on legislative and administrative actions.
Commission for Higher Education: This bill authorizes but does not require the Commission for Higher
Education to establish and collect the results of a biannual student survey. If established, a survey is likely
to require facilitation by a contracted service provider. Based on current contracts for support to the 21st
Century Scholars program, this contract is expected to cost between $80,000 and $120,000 annually. It also
authorizes CHE to prepare a biannual report on trends within each SEI, deliver the report to the Legislative
Council, and post it on the CHE website.
The bill requires CHE to gather information about diversity, equity, and inclusion practices at all state
educational institutions, and to make recommendations to the Budget Committee.
CHE is also required to collect information regarding complaints against tenured faculty and to develop a
process by which a petitioner can request a review of an SEI’s decision regarding a complaint filed with the
SEI. CHE is required to issue a final order regarding the request within 60 days of its receipt. Depending on
utilization of this process, the workload associated with reviewing these complaints could be significant.
Explanation of State Revenues:
Explanation of Local Expenditures:
Explanation of Local Revenues:
State Agencies Affected: State Educational Institutions; Commission for Higher Education, Legislative
SB 202 3 Council.
Local Agencies Affected:
Information Sources: Greg Harrell, Director of Legislation and Program Implementation, CHE;
https://vpfaa.indiana.edu/policies/bl-aca-e14-annual-reviews-promotion/index.html.
Fiscal Analyst: Alexander Raggio, 317-234-9485.
SB 202 4