LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 6369 NOTE PREPARED: Nov 22, 2024
BILL NUMBER: HB 1375 BILL AMENDED:
SUBJECT: Financial Responsibility.
FIRST AUTHOR: Rep. Boy BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED: GENERAL IMPACT: State
XDEDICATED
FEDERAL
Summary of Legislation: This bill requires an insurance carrier to notify the Bureau of Motor Vehicles
(BMV) when a motor vehicle liability insurance policy issued by the insurance carrier becomes inactive. The
bill requires an insurance carrier to notify the BMV when a motor vehicle liability insurance policy issued
by the insurance carrier is reinstated after becoming inactive. It provides that if an individual switches
insurance carriers, the insurance carrier that issues the new motor vehicle liability insurance policy must
notify the BMV of the change in motor vehicle liability insurance policies. The bill also requires the BMV
to report certain information to the Indiana Data and Communication System (IDACS).
Effective Date: July 1, 2025.
Explanation of State Expenditures: This bill will increase the workload of the BMV to receive
notifications from insurers as well as uploading information to IDACS. Increases in workload could be
accomplished by the insurance verification system the BMV has planned for implementation.
Additionally, the bill could increase the workload of the Department of Insurance (DOI) to ensure insurance
providers satisfy reporting requirements in the bill.
Additional Information - The BMV currently plans to develop an insurance verification system with
implementation costs reported to be between $250,000 and $500,000. Annual costs thereafter would depend
on integration points with law enforcement and the insurance industry, security measures, web portal selected
for interfacing, as well as technology support. These costs are anticipated to be provided from the BMV
Technology Fund and possibly from the BMV Commission Fund. The system the BMV currently has
planned would most likely satisfy the requirements in the bill and are expected to have no additional impact
on agency expenditures.
Explanation of State Revenues:
Explanation of Local Expenditures:
HB 1375 1 Explanation of Local Revenues:
State Agencies Affected: DOI, BMV.
Local Agencies Affected:
Information Sources: Cody Eckert, BMV.
Fiscal Analyst: Bill Brumbach, 317-232-9559.
HB 1375 2