LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 6634 NOTE PREPARED: Feb 10, 2025
BILL NUMBER: HB 1322 BILL AMENDED: Feb 10, 2025
SUBJECT: Blockchain Technology; State Investment in Bitcoin.
FIRST AUTHOR: Rep. Criswell BILL STATUS: CR Adopted - 1
st
House
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State
XDEDICATED
FEDERAL
Summary of Legislation: (Amended) The bill provides that not later than March 1, 2026, the Department
of Administration (IDOA) may issue a request for information for purposes of exploring how the use of
blockchain technology could be used by a state agency to: (1) achieve greater cost efficiency and cost
effectiveness; and (2) improve consumer convenience, experience, data security, and data privacy. The bill
requires the IDOA to compile a report concerning the request for information and submit the report to the
Legislative Council not later than October 1, 2026. It allows funds held by the Public Employees' Retirement
Fund to be invested in certain Bitcoin exchange traded funds.
Effective Date: July 1, 2025.
Explanation of State Expenditures: (Revised) Department of Administration: Depending on the IDOA’s
actions, there could be an increase in IDOA workload, and potentially expenditures, to issue a RFI
concerning blockchain technology and to produce and deliver the required report. A position could be filled
temporarily by a consultant, or a FTE could be hired. Expenditures could be $117,300 in FY 2026 and
$118,400 in FY 2027 for an additional FTE. The estimate includes base salary and fringe benefits. The base
salary of the position is based on existing IDOA procurement consultant salaries as of August 2024.
Other State Agencies: The bill allows the Indiana Public Retirement System (INPRS) and Treasurer of State
(TOS) to invest in bitcoin ETFs. This could require additional expenditure in updating software and
generating expertise in digital currency trading. These responsibilities fall within the routine functions of
these agencies. The administrative costs of managing investments under INPRS are paid from the respective
pension funds.
(Revised) Additional Information - The bill provides that the Secretary of State, Family and Social Services
Administration, Department of Workforce Development, Department of Child Services, Office of
Technology, or any agency as determined by the Office of Technology shall participate in the RFI. The
IDOA would likely need an additional procurement position with blockchain technology expertise to
complete the bill's requirements. The additional funds and resources required to accomplish the bill's
requirements could be supplied through existing staff and resources currently being used in another program
HB 1322 1 or with new appropriations. Ultimately, the source of funds and resources required to satisfy the requirements
of this bill may depend on further legislative and/or administrative actions.
Explanation of State Revenues: (Revised) The bill defines “bitcoin” and states that an "approved bitcoin
exchange traded fund" means a spot bitcoin exchange traded fund that has been approved for listing on
national securities exchanges by the United States Securities and Exchange Commission under 15 U.S.C.
78f(b)(2). In January 2024, the U.S. Securities and Exchange Commission approved the first bitcoin spot
ETFs. These ETFs provide investors with direct exposure to bitcoin without the complexities of owning the
digital currency directly or managing a wallet. The bill provides that the board of trustees of the INPRS (as
it relates to the Public Employees’ Retirement Fund), and Treasurer of State may invest or reinvest funds that
are available for investment in approved bitcoin spot ETFs. Allowing these agencies to invest in the bitcoin
spot ETFs will change the risk and return profile of the underlying investments. The bill would have an
indeterminable impact on investment returns for the funds managed by these state agencies. The fiscal impact
will depend on whether the investment managers at INPRS or Treasurer of State choose to invest in bitcoin
spot ETFs and the future return on those investment.
Explanation of Local Expenditures:
Explanation of Local Revenues: (Revised) This bill would have an indeterminable impact on investment
returns for the local funds invested or reinvested by the Treasurer of State in bitcoin spot ETFs. (See
Explanation of State Revenues.)
State Agencies Affected: IDOA, FSSA, SOS, DWD, DCS, TOS, INPRS, IOT.
Local Agencies Affected: All local units.
Information Sources: Molly Timperman, Communications/Legislative Director, Indiana Department of
Administration; State Staffing Table August 2024 (for salary estimate); INPRS. Investment Policy
Statement. https://www.in.gov/inprs/files/INPRS_IPS.pdf ; U.S. Security and Exchange Commission,
Statement on the Approval of Spot Bitcoin Exchange-Traded Products
https://www.sec.gov/newsroom/speeches-statements/gensler-statement-spot-bitcoin-011023
Fiscal Analyst: Randhir Jha, 317-232-9556.
HB 1322 2