LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 7270 NOTE PREPARED: Jan 1, 2025
BILL NUMBER: HB 1190 BILL AMENDED:
SUBJECT: Water Quality.
FIRST AUTHOR: Rep. Abbott BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
XDEDICATED
FEDERAL
Summary of Legislation: Trust Fund: This bill establishes the Water Protection and Restoration Trust Fund.
It provides that the State Comptroller shall transfer each year to the fund from the money appropriated to
certain state agencies an amount equal to $1.66 M.
Water Quality: This bill establishes the Water Quality Board to manage and develop the fund. It sets out the
membership, terms, and compensation of the board. It provides that the board shall establish a surface water
quality financial assistance program for the purpose of assessing and reducing nutrients that are negatively
affecting surface waters within the state. It also makes conforming changes.
Effective Date: July 1, 2025.
Explanation of State Expenditures: Trust Fund: The bill establishes the nonreverting Water Protection and
Restoration Trust Fund to provide funding for a surface water quality financial assistance program. The bill
requires the State Comptroller to transfer a total of $9.96 M per fiscal year to the fund from money
appropriated to the following state agencies: Indiana Department of Environment Management (IDEM),
Department of Natural Resources (DNR), State Department of Agriculture (ISDA), Office of Community
and Rural Affairs (OCRA), Indiana Destination Development Corporation (IDDC), and Indiana Economic
Development Corporation (IEDC). Each agency would contribute $1.66 M per fiscal year to the fund.
Water Quality Board: This bill establishes the Water Quality Board to create a surface water quality financial
assistance program. DNR is to staff the board. The board consists of 12 members, including four members
of the General Assembly, two non-state employee lay members, and six state employees from the same
agencies from which appropriations will be transferred: IDEM, DNR, ISDA, OCRA, IDDC, and IEDC.
Based on an estimated four meetings per year, per diem and travel expenses for the board are estimated to
cost $8,000 per year with actual expenses dependant upon meeting attendance and member mileage. Per diem
and travel expenses for board members who are members of the General Assembly are to be paid from
appropriations made to the Legislative Council or the Legislative Services Agency. All other expenses for
the board are to be paid from the fund.
HB 1190 1 Workload will increase for the agencies with members serving on the board but should be able to be
implemented using existing staffing and resources.
Additional Information: The Water Quality Board must meet at least quarterly. A legislative member of the
task force is entitled to a $213 per diem, $85.20 subsistence (as of October 1, 2024), and mileage of $0.70
per mile (as of January 1, 2025) for each meeting attended. A lay member of the task force who is not a state
employee is entitled to a $75 per diem and mileage of $0.70 per mile (as of January 1, 2025) for each meeting
attended. A lay member of the task force who is a state employee is entitled to reimbursement of actual travel
expenses incurred and mileage of $0.49 per mile (as of June 15, 2022).
Explanation of State Revenues: Transferring $1.66 M each fiscal year from each of the various state
agencies to the fund may reduce the amount of funds reverted to the state General Fund if those funds would
have otherwise been reverted. Any impact to the state General Fund will depend on administrative actions.
The bill requires that Water Quality Board to charge an application fee, in an amount to be determined by
the board, when an entity applies for funding from the board. The bill is silent as to where application fee
revenue will be deposited.
Explanation of Local Expenditures:
Explanation of Local Revenues: Local units of government may receive funding from the surface water
quality financial assistance program to be established by the board. Any funding received will depend on
local action and decisions of the board.
State Agencies Affected: Indiana Department of Environment Management; Department of Natural
Resources; State Department of Agriculture; Office of Community and Rural Affairs; Indiana Destination
Development Corporation; Indiana Economic Development Corporation; General Assembly; State
Comptroller.
Local Agencies Affected: Local units of government receiving funding under the bill.
Information Sources:
Fiscal Analyst: Jason Barrett, 317-232-9809.
HB 1190 2