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 6633 NOTE PREPARED: Jan 2, 2024
BILL NUMBER: SB 209 BILL AMENDED:
SUBJECT: Historic Sites.
FIRST AUTHOR: Sen. Leising BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State
XDEDICATED
FEDERAL
Summary of Legislation: The bill establishes the Division of Historic Sites (Division) in the Department
of Natural Resources (DNR). The bill transfers management of historic sites from the Indiana State Museum
and Historic Sites (ISMHS) Corporation to the Division. It makes an appropriation.
Effective Date: July 1, 2024.
Explanation of State Expenditures: Board of Trustees: The bill creates a 13-member Board of Trustees
for the Division that is to meet at least quarterly. The DNR Director is to serve as chairperson of the trustees.
The Governor is to appoint 12 other members, with various criteria given. Members are entitled to travel
reimbursement, and members who are not state employees are also entitled to a per diem of $100. The
director of the new Division serves as the secretary of the trustees.
Establishment and Administration of Funds: The bill establishes the new nonreverting State Historic Sites
Development Fund. This fund is to be administered by the DNR or an entity designated by the DNR. Money
in the this fund is continuously appropriated, after Budget Committee review and State Budget Agency
approval. The bill also establishes the new nonreverting Historic Site Acquisition Fund to be administered
by the DNR, with money continuously appropriated.
The bill allows the Division to designate a nonprofit subsidiary corporation for fundraising efforts, to be
known as the Indiana Historic Sites Foundation, and requires the DNR to provide office facilities and
administrative support to this foundation.
Transfer of Historic Sites Management: The ISMHS Corporation, a quasi-agency, currently manages the
SB 209 1 State Museum and eleven historic sites throughout the state. The bill establishes the new Division of Historic
Sites within the DNR, and transfers all powers, duties, assets, and liabilities of the state’s historic sites from
the ISMHS Corporation to the Division (the ISMHS Corporation’s name will change to the Indiana State
Museum Corporation).
The State Budget Agency is to transfer funds that were appropriated to the ISMHS Corporation for the FY
2024-FY 2025 biennium, and funds from any other account that were intended for the historic sites, to the
new nonreverting State Historic Sites Development Fund. However, the majority of historic site net assets
are held in external accounts (not within the state treasury) by the Indiana State Museum Foundation, a
nonprofit subsidiary corporation that raises funds and accepts gifts and donations for the ISHMS
Corporation. If the foundation’s existence as a “subsidiary corporation” is sufficient to be considered an asset
of the ISMHS Corporation, those net assets will also be divided.
The combined net position of the ISHMS Corporation and the Indiana State Museum Foundation, as of May
31, 2023, was $17 M. The impact of the bill’s provision to move management of the historic sites will depend
on the amount transferred to the Division from other state funds, and possibly from external funds, to cover
the costs of the historic sites, as well as the amount left untransferred to continue to cover the costs of the
Indiana State Museum.
President Benjamin Harrison Conservation Trust Project Committee: The bill adds the director of the new
DNR Division to the President Benjamin Harrison Conservation Trust Project Committee (now 21 members),
and requires nine members present (instead of eight) to constitute a quorum. This additional member would
be entitled to reimbursement for travel expenses.
Additional Information:
ISMHS Corporation State Funds: HEA 1001-2023 appropriated $11 M for each fiscal year of the biennium
to the ISMHS Corporation for operating expenses and $2.3 M (FY 2024) and $1.7 M (FY 2025) for repairs
and maintenance. Personnel expenses for the ISMHS Corporation are paid from state General Fund
appropriations into ISMHS Corporation funds, within the state treasury. The balance of state funds held for
the ISMHS Corporation as of June 30, 2023, was around $300,000.
Also appropriated was $1 M for each fiscal year of the biennium as a capital fundraising match (for repair
and rehabilitation) and a $7 M fundraising match for FY 2024 for the Whitewater Canal Rehabilitation for
when the ISMHS Corporation raises $7 M in private donations or local unit contributions. State
appropriations for construction and maintenance are disbursed from state funds to the ISMHS Corporation
be held in external funds.
Background on the Establishment of the ISMHS Corporation: Legislation in 2011 repealed the DNR’s
Division of State Museums and Historic Sites, and moved management of those properties to the newly
established ISMHS Corporation, a quasi-agency. In the first fiscal year (FY 2012), the DNR transferred $1.3
M in cash and $0.5 million in net capital assets to the ISMHS Corporation. The Indiana State Museum
Foundation transferred an additional $0.85 M.
The year-end net position for FY 2012 was $5.9 M (ISMHS Corporation $2 M; Foundation $3.9 M). The
year-end net position for FY 2022, was $11.4 M (ISMHS Corporation $0.5 M; and Foundation $10.9 M).
According to board meeting minutes, the net position as of May 31, 2023, was $17 M.
SB 209 2 Other Provisions: The bill maintains the ISMHS Corporation as the manager of the collection of the
Governors’ Portraits and the Governors’ Portraits fund and maintains their management of the Culbertson
Mansion donations, although it transfers management of the Culbertson Mansion to the Division. Two of the
historic sites referenced in the bill, the Wilbur Wright Birthplace Museum and Ernie Pyle Birthplace, no
longer belong to the state.
Explanation of State Revenues: Revenue to the Division for the management of historic sites will depend
on the amount transferred from other state funds, and possibly from external funds, to cover the costs of the
historic sites (See Explanation of State Expenditures).
Explanation of Local Expenditures:
Explanation of Local Revenues:
State Agencies Affected: Department of Natural Resources; ISMHS Corporation; Natural Resources
Commission; President Benjamin Harrison Conservation Trust Project Committee; State Budget Agency.
Local Agencies Affected:
Information Sources:
https://www.indianamuseum.org/resources/;
https://www.indianamuseum.org/wp-content/uploads/2023/09/Minutes-June-14-2023.pdf;
https://www.in.gov/sboa/WebReports/000001208A.pdf;
https://www.in.gov/sboa/WebReports/B42160.pdf;
https://apps.irs.gov/pub/epostcard/cor/356202818_202206_990_2023060621388181.pdf;
https://www.indianamuseum.org/news-article/artist-sought-to-paint-governors-official-portrait/;
https://www.in.gov/history/about-indiana-history-and-trivia/governors-portraits/;
https://wwbirthplace.com/wright-family-history;
https://www.visitindiana.com/listing/ernie-pyle-wwii-museum/14242/.
Fiscal Analyst: Heather Puletz, 317-234-9484.
SB 209 3