LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 7591 NOTE PREPARED: Feb 11, 2025
BILL NUMBER: HB 1412 BILL AMENDED: Feb 6, 2025
SUBJECT: Reporting of Child Abuse or Neglect.
FIRST AUTHOR: Rep. Cash BILL STATUS: As Passed House
FIRST SPONSOR: Sen. Goode
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
XDEDICATED
FEDERAL
Summary of Legislation: This bill provides that an individual's duty to report suspected child abuse or
neglect is may only be delegated to another person if certain conditions are met. The bill requires that if a
report of suspected child abuse or neglect alleges that a staff member, youth coach, or volunteer of an
institution, school, facility, organization, or agency is the abuser, local law enforcement shall investigate to
determine whether the institution, school, facility, organization, or agency knew that the alleged abuse was
happening and failed to report the alleged abuse.
The bill allows law enforcement to consider certain facts when determining whether the institution, school,
facility, organization, or agency knew about the alleged abuse. It increases the penalty for failure by a
member of the staff of a public or private institution, school, facility, organization, or agency to report
suspected child abuse or neglect to a Class A misdemeanor (instead of a Class B misdemeanor, under current
law), and increases the penalty to a Level 6 felony if the person has a prior conviction for failure to report
abuse or neglect.
The bill also makes conforming changes.
Effective Date: July 1, 2025.
Explanation of State Expenditures: This bill changes the reporting requirements for suspected instances
of child abuse and neglect. As a result, the DCS could receive more reports of child abuse and neglect, which
would increase DCS workload to perform investigations. If the additional investigations can not be
accommodated with existing staff, the DCS could fill from existing vacancies to address the new cases. [As
of August 2024, the DCS has a total of 1,350 vacant positions worth a total of $81.1 M in annual salary. Of
these positions, 910 vacancies are for family case managers that are worth $52.7 M in annual salary.]
Felony Failure to Report: State expenditures could increase if an offender is incarcerated in a state prison
rather than in a local jail. However, any expenditure increase is likely to be small. A Level 6 felony is
punishable by a prison term ranging between 6 to 30 months, with an advisory sentence of 1 year. The period
of incarceration will depend upon mitigating and aggravating circumstances. If offenders can be housed in
HB 1412 1 existing facilities with no additional staff, the marginal cost per offender for medical care, food, and clothing
is approximately $4,719 annually, or $12.93 daily.
Explanation of State Revenues: This bill could increase state revenue received from misdemeanor and
felony enhancements for failure to report child abuse and neglect. The bill’s impact on state revenue from
criminal convictions is expected to be small.
Additional Information - The bill repeals a provision in statute concerning the duty to report child abuse and
neglect by hospital staff that is currently punishable as a Class B misdemeanor. Hospital staff would still be
required to report child abuse and neglect under other provisions of current law. Failure to do so would still
be punishable as a Class B misdemeanor (IC 31-33-22-1 and IC 31-33-5-1).
The bill also enhances the penalty for failure to report child abuse and neglect for staff of public and private
institutions, schools, facilities, organizations, and agencies from a Class B misdemeanor to a Class A
misdemeanor or a Level 6 felony if the individual has a previous conviction for failure to report child abuse
and neglect.
OFMA found 19 persons who were convicted and sentenced for failure to report (IC 31-33-22-1) as a Class
B misdemeanor, between FY 2013 and FY 2024. Persons convicted of a Class B misdemeanor are more than
likely to have their sentences suspended and supervised in the community.
Enhancing Failure to Report: By enhancing a Class B misdemeanor to an A misdemeanor or Level 6 Felony,
revenue to the Common School Fund may increase. The maximum fine for a Class B misdemeanor is $1,000
whil the maximum fine for a Class A misdemeanor is $5,000. The maximum fine for a Level 6 felony is
$10,000. Court fees for both misdemeanors and felonies are the same.
Explanation of Local Expenditures: Felony Failure to Report: If an offender is sentenced to state prison
rather than to a county jail, the costs to the county may be reduced. However, any cost reduction is likely to
be small.
Misdemeanor Failure to Report: The bill could decrease the total number of misdemeanor convictions for
failure to report child abuse and neglect but also enhances the penalty for failure to report from a Class B
misdemeanor to a Class A misdemeanor. The maximum term of imprisonment for a Class B misdemeanor
is up to 180 days, while the maximum term for a Class A misdemeanor is up to one year. The bill’s net effect
on local incarceration costs is indeterminable.
Explanation of Local Revenues: Criminal Penalties - Court fees would remain unchanged.
State Agencies Affected: DCS. Department of Correction.
Local Agencies Affected: Trial courts; local law enforcement agencies.
Information Sources: Odyssey database; State Staffing Table Report, August 2024; Indiana Supreme Court,
Indiana Trial Court Fee Manual.
Fiscal Analyst: Bill Brumbach, 317-232-9559.
HB 1412 2