LEGISLATIVE SERVICES AGENCY OFFICE OF FISCAL AND MANAGEMENT ANALYSIS FISCAL IMPACT STATEMENT LS 7090 NOTE PREPARED: Feb 3, 2025 BILL NUMBER: HB 1382 BILL AMENDED: Feb 3, 2025 SUBJECT: Dealer Services Division. FIRST AUTHOR: Rep. Heine BILL STATUS: CR Adopted - 1 st House FIRST SPONSOR: FUNDS AFFECTED:XGENERAL IMPACT: State & Local XDEDICATED FEDERAL Summary of Legislation: (Amended) Out of State Licensing: This bill provides that the licensing requirements relating to vehicle merchandising do not apply to distributors or manufacturers that are not located in Indiana. Sunday Sales: The bill provides that if certain persons engage in the business of buying, selling, or trading of motor vehicles on a Sunday, those persons commit a Class B misdemeanor. Motor Vehicle Dealers: The bill amends current law that establishes a mandatory training program that applicants for a used motor vehicle dealer license must complete. The bill also provides that except as part of a change in dealer business entity type, a holder of a dealer license or endorsement may not take certain actions with respect to the dealer license or endorsement. It also provides that certain people may not be employed as a salesperson or act as an agent or contractor for a dealer. The bill also makes conforming changes. Effective Date: July 1, 2025. Explanation of State Expenditures: (Revised) Summary - The bill will increase the workload of the Secretary of State to enforce the expansions of training requirements for motor vehicle dealers. Increases in workload are expected to be accomplished under existing resource and funding levels. (Revised) Additional Information - The bill clarifies that out-of-state distributors and manufacturers are not subject to licensure requirements with the Secretary of State. This provision is expected to have no fiscal impact. Explanation of State Revenues: (Revised) Summary -The bill could increase revenue to the Common School Fund and General Fund from fines, fees, and judgments collected from criminal penalties for illegally acting as a motor vehicle salesperson. HB 1382 1 (Revised) Additional Information - Under IC 24-4-6-1, Sunday sales of motor vehicles is currently punishable as a Class B misdemeanor. The bill does not repeal the current penalty for Sunday sales of motor vehicles. The bill would codify this criminal penalty in Title 9 as well and is expected to have no fiscal impact. The bill also adds a Class C misdemeanor for illegally acting as a motor vehicle salesperson. If additional court cases occur and fines are collected, revenue to both the Common School Fund (from fines) and the state General Fund (from court fees and judgments) would increase. The maximum fine for a Class C misdemeanor is $500 deposited in Common School Fund. The total fee revenue per case would range between $113 and $138 for misdemeanors cases. 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: Penalty Provision: A Class C misdemeanor is punishable by up to 60 days in jail. Explanation of Local Revenues: Penalty Provision: If additional court actions occur and a guilty verdict is entered, more revenue will be collected by certain local units. If a misdemeanor 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. If an infraction case is filed in a court of record, the county will receive $33.90 and qualifying municipalities will receive a share of $2.10. If the case is filed in a municipal court, the county receives $20, and the municipality will receive $33.50. 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: Secretary of State. Local Agencies Affected: Trial courts, local law enforcement agencies. Information Sources: https://www.in.gov/sos/dealer/requirements/off-site-sales-requirements/; Indiana Supreme Court, Indiana Trial Court Fee Manual. Fiscal Analyst: Bill Brumbach, 317-232-9559. HB 1382 2