LEGISLATIVE SERVICES AGENCY OFFICE OF FISCAL AND MANAGEMENT ANALYSIS FISCAL IMPACT STATEMENT LS 7521 NOTE PREPARED: Jan 12, 2025 BILL NUMBER: HB 1466 BILL AMENDED: SUBJECT: Various Agency Administrative Procedures. FIRST AUTHOR: Rep. Meltzer BILL STATUS: As Introduced FIRST SPONSOR: FUNDS AFFECTED:XGENERAL IMPACT: State XDEDICATED FEDERAL Summary of Legislation: Department of Natural Resources (DNR): This bill provides that the Department of Natural Resources (DNR) is subject to the jurisdiction of the Office of Administrative Law Proceedings (OALP). Family and Social Services Administration (FSSA): The bill provides that the OALP is not the ultimate authority, and the Secretary of Family and Social Services Administration (FSSA) is the ultimate authority, in an administrative law matter that involves a Medicaid applicant or beneficiary appeals. The bill provides that in Medicaid applicant eligibility cases, except in certain circumstances, the order from the administrative law judge is final after 61 days without further affirmation from the ultimate authority. Professional Licensing Agency (PLA): The bill provides that the review of certain professional disciplinary reviews are not subject to the OALP. It sets forth the process to select a hearing officer for the professional disciplinary reviews. Secretary of State (SOS): The bill makes changes to securities and motor vehicle dealer services statutes to be consistent with the jurisdiction of the OALP. Department of Child Services (DCS): The bill provides that the Department of Child Services (DCS) is the ultimate authority of the review of decisions concerning residential child care base rates. It removes the duty of DCS to adopt rules concerning the administrative review by DCS of a proposed or approved substantiated report of child abuse or neglect, before or after an administrative hearing is available or conducted. The bill also makes conforming changes. Effective Date: July 1, 2025. Explanation of State Expenditures: Summary - The bill eliminates the Division of Hearings, transferring workload and expenditures from the DNR to the OALP. The OALP will become the ultimate authority in these administrative adjudications. The overall impact will depend on staffing decisions made by the DNR HB 1466 1 and the OALP. The bill will shift workload from the Secretary of State (SOS) the Office of Administrative Law Proceedings (OALP). The increase in workload for the OALP is expected to be accomplished within existing resource and funding levels. This bill will minimally reduce the workload of the DCS to adopt administrative rules. The bill would also minimally reduce the workload of the OALP to hear disputes between child services providers and the DCS. Additional Information - Secretary of State (SOS): The SOS reports that all auto dealer cases currently utilizes the Office of Administrative Law Proceedings. The bill codifies existing practice for the Dealer Services Division of the Secretary of State. The bill changes the hearing process for securities violations to being held by the SOS to the OALP. The SOS would still perform the investigative role for violations and the Securities Division Enforcement Account would still receive civil penalties collected for violations. The bill would transfer the workload of performing violation hearings from the SOS to the OALP. The increase in workload to the OALP is expected to be accomplished within existing resource and funding levels. Family and Social Services Administration (FSSA): The provisions affecting the FSSA are expected to have no fiscal impact. Department of Child Services (DCS): The DCS reports 7 administrative rules would be impacted by the bill. These rules were first adopted in 2012, reauthorized in 2018, and most recently reauthorized in 2024. These rules are scheduled to be reauthorized again in 2030. Professional Licensing Agency (PLA): The provision may increase the workload of the Professional Licensing Agency (PLA) to staff personal appearance hearings with hearing officers and produce minutes under the bill. Additionally, the PLA may need to hire or contract additional stenographer/court reporter services to record the proceedings of certain hearings conducted (probation withdrawals, reinstatements, order-to-show-cause hearings). It is likely that the Agency would be able to implement these provisions within the PLA’s current resource and staffing levels. Department of Natural Resources (DNR): The bill transfers workload and expenditures from the DNR to the OALP. The OALP will have jurisdiction over administrative adjudications and become the ultimate authority for appeals regarding of decisions of the DNR, the Natural Resources Commission, the Historic Preservation Review Board, the Board of Licensure for Professional Geologists, and the Board of Registration for Soil Scientists. These appeals are currently heard by an administrative law judge from the Division of Hearings. The bill eliminates the Division of Hearings. The Division currently has four employees. The overall impact will depend on staffing decisions made by the DNR and the OALP. Explanation of State Revenues: Explanation of Local Expenditures: Explanation of Local Revenues: HB 1466 2 State Agencies Affected: OALP; Secretary of State, DCS; DNR; NRC; PLA. Local Agencies Affected: Information Sources: Kate Collins, DCS; Kyle Bonick, Secretary of State; Marie Castetter, Secretary of State; State Staffing Tables; https://www.in.gov/nrc/administrative-review/administrative-guide/ https://www.in.gov/nrc/files/Information-Bulletin-42.pdf https://www.in.gov/nrc/aopa-committee/ https://www.in.gov/nrc/files/IB-1.pdf Fiscal Analyst: Bill Brumbach, 317-232-9559; Heather Puletz, 317-234-9484; Karen Rossen, 317-234- 2106; Chris Baker, 317-232-9851. HB 1466 3