LEGISLATIVE SERVICES AGENCY OFFICE OF FISCAL AND MANAGEMENT ANALYSIS FISCAL IMPACT STATEMENT LS 7595 NOTE PREPARED: Jan 14, 2025 BILL NUMBER: HB 1425 BILL AMENDED: SUBJECT: Lab Grown Meat Labeling. FIRST AUTHOR: Rep. Baird BILL STATUS: As Introduced FIRST SPONSOR: FUNDS AFFECTED:XGENERAL IMPACT: State & Local XDEDICATED FEDERAL Summary of Legislation: The bill prohibits a person from intentionally misbranding a cultivated meat product as a meat product. Effective Date: July 1, 2025. Explanation of State Expenditures: The bill’s requirements may increase workload for the Board of Animal Health (BOAH) to conduct complaint-based inspections of meat and poultry harvesting and processing facilities regarding mislabeled cultivated meat products and to adopt rules regarding these products. The BOAH currently inspects these facilities and should be able to implement these requirements using existing staffing and resources. [The BOAH receives state General Fund appropriations for meat and poultry inspections.] Explanation of State Revenues: The bill allows the BOAH to impose a civil penalty of not more than $100,000 on a person that violates the bill’s provisions. Any civil penalties collected are to be deposited into the state General Fund. The bill creates a Class B misdemeanor for a person who recklessly violates or fails to comply with the bill’s provisions. If additional court cases occur and fines are collected, revenue to both the Common School Fund and the state General Fund would increase. The penalty for a Class B misdemeanor is $1,000. 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: A Class B misdemeanor is punishable by up to 180 days in jail. The average cost per day to incarcerate a prisoner 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 guilty verdicts are entered, more revenue will be collected by certain local units. The following linked document describes the fees and HB 1425 1 distribution of the revenue: Court fees imposed in criminal, juvenile, and civil violation cases. State Agencies Affected: Board of Animal Health. Local Agencies Affected: Trial courts, local law enforcement agencies. Information Sources: https://www.in.gov/boah/files/2024-MPI-Establishments.pdf; https://www.in.gov/boah/files/meat-inspection-flow-chart-COLOR.pdf. Fiscal Analyst: Heather Puletz, 317-234-9484. HB 1425 2