LEGISLATIVE SERVICES AGENCY OFFICE OF FISCAL AND MANAGEMENT ANALYSIS FISCAL IMPACT STATEMENT LS 7595 NOTE PREPARED: Mar 20, 2025 BILL NUMBER: HB 1425 BILL AMENDED: Mar 20, 2025 SUBJECT: Lab Grown Meat Labeling. FIRST AUTHOR: Rep. Baird BILL STATUS: 2 nd Reading - 2 nd House FIRST SPONSOR: Sen. Leising FUNDS AFFECTED:XGENERAL IMPACT: State XDEDICATED FEDERAL Summary of Legislation: (Amended) The bill requires the Department of Agriculture (ISDA), Board of Animal Health (BOAH), and the Indiana Department of Health (IDOH) to conduct a study to determine the safety of cultivated meat products for human consumption. It establishes a one year moratorium on the sale of cultivated meat products in Indiana. The bill prohibits a person from intentionally misbranding a cultivated meat product as a meat product. It provides that the cultivated meat product is misbranded as a meat product if the cultivated meat product is: (1) advertised; (2) labeled; or (3) offered for sale or sold; in a manner that does not clearly indicate that it is a cultivated meat product or not in accordance with rules adopted by the BOAH. It requires BOAH to administer the chapter. Effective Date: (Amended) July 1, 2025; July 1, 2026. Explanation of State Expenditures: (Revised) The bill will increase workload and possibly expenditures for the BOAH, the ISDA, and the IDOH to conduct a study that determines the safety of cultivated meat products for human consumption and to issue a report with findings and recommendations not later than December 1, 2025. These entities may not contract with any entity or organization to conduct the study, and all costs associated with the study are to be paid from their appropriations. [The BOAH and the ISDA receive state General Fund appropriations while IDOH administrative expenditures are currently paid from the Tobacco Master Settlement Fund, a dedicated fund.] The bill’s requirements may increase workload for the BOAH to enforce the ban of cultivated meat products during FY 2026. Additionally, the BOAH will be required 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. Explanation of State Revenues: (Revised) The bill allows the BOAH to impose a civil penalty of not more HB 1425 1 than $10,000 per day on a person that violates the bill’s provisions. Any civil penalties collected are to be deposited into the state General Fund. Explanation of Local Expenditures: Explanation of Local Revenues: State Agencies Affected: Board of Animal Health; Indiana State Department of Agriculture; Indiana State Department of Health. Local Agencies Affected: 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