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: Mar 1, 2024
BILL NUMBER: SB 202 BILL AMENDED: Feb 26, 2024
SUBJECT: State Educational Institution Matters.
FIRST AUTHOR: Sen. Deery BILL STATUS: Enrolled
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 CHE concerning complaints submitted
regarding faculty members or contractors who are not meeting certain criteria related to free inquiry, free
expression, and intellectual diversity.
(11) It provides that certain individuals may request the CHE to review a final decision by an institution
concerning a violation of these provisions. It also provides that CHE may enter into an agreement with the
Office of Administrative Law Proceedings to review violations of certain provisions and issue an opinion
on behalf of CHE.
(12) It requires each SEI to submit certain information by September 1, 2024, and on September 1 of each
year thereafter.
Effective Date: 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
regarding intellectual diversity and free inquiry or expression.
Additional Information – State Educational Institutions: This bill establishes policy requirements and
constraints affecting aspects of personnel management, academic practice, employee discipline, reporting
SB 202 2 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.
The bill specifies that boards of trustees may delegate responsibility to administer the faculty review process
specified in this bill, which would reduce the workload for the boards of trustees but would not reduce total
institutional workload. 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 CHE 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. The
bill also authorizes CHE to enter into an agreement with the Office of Administrative Law Proceedings
(OALP) to review complaints under provisions of this bill and issue an opinion on behalf of CHE. If entered
into, such an agreement could shift a significant portion of the review process to OALP.
Explanation of State Revenues:
Explanation of Local Expenditures:
Explanation of Local Revenues:
State Agencies Affected: State Educational Institutions; Commission for Higher Education, Office of
Administrative Law Proceedings.
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.
SB 202 3 Fiscal Analyst: Alexander Raggio, 317-234-9485.
SB 202 4