LEGISLATIVE SERVICES AGENCY OFFICE OF FISCAL AND MANAGEMENT ANALYSIS FISCAL IMPACT STATEMENT LS 7212 NOTE PREPARED: Jan 7, 2025 BILL NUMBER: HB 1195 BILL AMENDED: SUBJECT: Pornographic Material. FIRST AUTHOR: Rep. Abbott BILL STATUS: As Introduced FIRST SPONSOR: FUNDS AFFECTED:XGENERAL IMPACT: State & Local XDEDICATED FEDERAL Summary of Legislation: This bill requires a specified school to adopt policies and procedures concerning material alleged to be pornographic, obscene, or harmful to minors. It also provides that a specified school or an employee, a contractor, or a third party vendor of a specified school may not knowingly make available or provide pornographic material, obscene matter, or matter harmful to minors to a student. Effective Date: July 1, 2025. Explanation of State Expenditures: Department of Correction (DOC): The number of new cases that could be prosecuted under this bill is expected to be small. Therefore, the bill’s provisions are expected to result in a minor increase in DOC’s offender population. Under current law, a person who knowingly or intentionally disseminates matter to minors that is harmful to minors commits a Level 6 felony. Additional Information - Between FY 2017 and 2023, an average of 29 persons per year were convicted and sentenced for disseminating materials that were harmful to minors as either Class D or Level 6 felonies. Of those who were convicted and sentenced for a Level 6 felony, 11% were confined in a DOC facility with an average sentence of 1.74 years. A Level 6 felony is punishable by a prison term ranging from 6 to 30 months, with an advisory sentence of 1 year. The sentence depends on mitigating and aggravating circumstances. The average expenditure to house an adult offender was $29,432 annually, or $80.58 daily, in FY 2024. (This does not include the cost of new construction.) If offenders can be housed in existing facilities with no additional staff, the marginal cost for medical care, food, and clothing is approximately $4,719 annually, or $12.93 daily, per prisoner. These marginal cost estimates are based on contractual agreements with food and medical vendors and projections based on prior years for clothing and hygiene. The estimated average cost of housing a juvenile in a state juvenile facility was $113,108, or $309.67 daily, in FY 2024. The marginal cost for juvenile facilities was $8,778 annually or $24.05 daily. HB 1195 1 The entire Level 6 sentence may be suspended and the person placed on either probation or community correction. If no time is suspended, the offender can receive good time credit of 50% and educational credit time. After adjusting for credit time, the offender can be released from prison and placed on parole. Explanation of State Revenues: If additional court cases occur and fines are collected, revenue to both the Common School Fund and the state General Fund would increase. The maximum fine for a Level 6 felony is $10,000. Criminal fines are deposited in the Common School Fund. The total fee revenue per case would range between $113 and $138. The amount of court fees 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 criminal, juvenile, and civil violation cases. Explanation of Local Expenditures: School Corporations, Charter Schools: The bill could increase the workload of a public school, school corporation, or charter school to ensure that all materials that are pornographic material, obscene matter, or matter harmful to minors are removed from the school. It requires each school to prepare a catalogue of all school materials, each policy and procedures for requesting the removal of pornographic material. Criminal Penalty: If more defendants are detained in county jails prior to their court hearings, local expenditures for jail operations may increase. However, any additional expenditures would likely be minimal. These offenders could also be confined in a county jail post sentencing, or supervised on community corrections, probation, or both. Additional Information – Of those who have been convicted and sentenced for disseminating materials that are harmful to minors as a Level 6 felony, 79% were confined in a county jail prior to trial. The average cost per day is approximately $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. Explanation of Local Revenues: If additional court actions occur and a guilty verdict is entered, more 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. State Agencies Affected: Department of Education; Department of Correction. Local Agencies Affected: Trial courts, local law enforcement agencies; school corporations. Information Sources: FY 2017 - 2023 Abstracts of Judgment, Indiana Supreme Court; Department of Correction; U.S. Department of Justice Marshals Service. Fiscal Analyst: Corrin Harvey, 317-234-9438. HB 1195 2