LEGISLATIVE SERVICES AGENCY OFFICE OF FISCAL AND MANAGEMENT ANALYSIS FISCAL IMPACT STATEMENT LS 6507 NOTE PREPARED: Dec 18, 2024 BILL NUMBER: HB 1170 BILL AMENDED: SUBJECT: Elimination of Gun-Free Zones. FIRST AUTHOR: Rep. Lucas BILL STATUS: As Introduced FIRST SPONSOR: FUNDS AFFECTED:XGENERAL IMPACT: State & Local XDEDICATED FEDERAL Summary of Legislation: Elimination of Gun-Free Zones - The bill provides, with some exceptions, that beginning July 1, 2025, the state of Indiana may not regulate: (1) firearms, ammunition, and firearm accessories; and (2) the ownership, possession, carrying, transportation, registration, transfer, and storage of firearms, ammunition, and firearm accessories. The bill also specifies that a certain provision of an ordinance, measure, enactment, rule, policy, or exercise of proprietary authority is void. Rules - The bill provides that a person not otherwise prohibited from carrying or possessing a firearm under federal or state law may carry or possess a firearm, without restriction, on certain property affiliated with the following state agencies beginning July 1, 2025: (1) the Department of Natural Resources. (2) The State Fair Commission. (3) the Department of Administration. (4) the Department of Workforce Development. State Educational Institutions and Regulation of Firearms– The bill prohibits a state educational institution (SEI) from regulating the possession or transportation of firearms, ammunition, or firearm accessories: (1) on land that is; or (2) in buildings and other structures that are; owned, leased, or managed by the SEI. The bill specifies certain exceptions. Voiding Indiana Administrative Code Provisions– The bill voids, as of July 1, 2025, specific provisions in the Indiana Administrative Code. The bill allows a person to bring an action if the person is adversely affected by particular rules concerning firearms that are adopted or enforced by an institution. It defines certain terms and makes conforming amendments. Effective Date: Upon passage. Explanation of State Expenditures: This bill likely reduces the costs to the state by removing some prohibitions on carrying handguns. There would likely be fewer arrests and associated Department of Correction commitments as a result of the bill. The majority of convictions where illegal possession of a handgun was the most serious offense are Level 5 felonies, punishable by a prison term ranging between 1 to 6 years, with an advisory sentence of 3 years. The average expenditure to house an adult offender was $29,432 in FY 2024. (This does not include the cost of new construction.) The estimated average cost of HB 1170 1 housing a juvenile in a state juvenile facility was $113,108 in FY 2024. [According to the Abstracts of Judgment, between FY 2023 and FY 2024 there were a total of 927 offenders sentenced. About 35% of these individuals were committed to the DOC post-trial with an average commitment time of 1.8 years.] Rules– The Department of Natural Resources, State Fair Commission, Department of Administration, and Department of Workforce Development would need to adopt rules to revise the Indiana Administrative Code cites as indicated within the bill by July 1, 2025. It is likely the agencies could adopt rules in time and adopt permanent rules later. Under normal circumstances, rule making is a routine function of state agencies. Therefore, allowing these agencies additional time to adopt permanent rules would allow them to utilize current staff levels with only a temporary increase in their staff’s workload. Background - On July 1, 2022, Indiana no longer required handgun permits to legally carry, conceal, or transport a handgun within the state. This bill allows individuals who are not prohibited persons per IC 35- 47-2-1.5 to legally carry a handgun within the state. Explanation of State Revenues: Elimination of Gun-Free Zones - This bill potentially reduces the revenue to the Common School Fund if fewer court cases occur and fewer fines are assessed. The maximum fine for a Level 5 felony is $10,000. The following linked document describes the fees and distribution of the revenue: Court fees imposed in criminal, juvenile, and civil violation cases. State Educational Institutions and Regulation of Firearms– The bill would allow an aggrieved person to bring a civil action against a SEI that attempted to regulate the possession or transportation of firearms, ammunition, or firearm accessories on land, in buildings, or in other structures that are owned, leased, or managed by the SEI. If additional civil cases occur and court fees are collected, revenue to the state General Fund will increase. The total revenue per case would range between $100 and $122. The amount 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 civil, probate, and small claims cases. Explanation of Local Expenditures: Elimination of Gun-Free Zones - This bill likely reduces the costs to county jails by removing some prohibitions on carrying handguns. There would likely be fewer arrests and jail commitments as a result of the bill. The average cost per day is $64.53 based on the per diem payments reported by U.S. Marshals to house federal prisoners in 11 county jails across Indiana during CY 2021. Of the 927 offenders sentenced, 79% of these individuals had pre-trial credit jail time, and19% were committed to local jails with an average commitment time of 0.64 years. Average time spent in post sentence probation is 1.1 years. State Educational Institutions and Regulation of Firearms - If fewer persons are charged with handgun violations, the number of persons who face post sentencing jail time should also decrease. Explanation of Local Revenues: Elimination of Gun-Free Zones - If fewer court actions occur, less revenue will be collected by certain local units. If the case is filed in a court of record, the county general fund will receive $47.40 and qualifying municipalities will receive a share of $3.60. If the case is filed in a municipal court, the county receives $30, and the municipality will receive $46. The following linked document describes the fees and distribution of the revenue: Court fees imposed in criminal, juvenile, and civil violation cases. HB 1170 2 State Educational Institutions and Regulation of Firearms– If additional civil cases occur, revenue will be collected by certain local units. If the case is filed in a court of record, the county will receive $32 and qualifying municipalities will receive a share of $3. If the case is filed in a municipal court, the county receives $20, and the municipality will receive $37. The following linked document describes the fees and distribution of the revenue: Court fees imposed in civil, probate, and small claims cases. State Agencies Affected: Department of Correction. Local Agencies Affected: Trial courts, municipal courts, and local law enforcement agencies. Information Sources: Indiana Supreme Court; Indiana Trial Court Fee Manual, Department of Correction; Abstracts of Judgement, U.S. Department of Justice Marshals Service. Fiscal Analyst: Abdulrahman Abdulkadri, 317-232-9852. HB 1170 3