Introduced Version HOUSE BILL No. 1495 _____ DIGEST OF INTRODUCED BILL Citations Affected: IC 2-5-56.5; IC 4-22-2; IC 34-8. Synopsis: Review of administrative and judicial rules. Establishes the administrative rules review committee. Requires: (1) an agency to submit a rule and the latest version of the regulatory analysis with any supporting documents; and (2) the supreme court to submit a rule and any economic impact statement, with supporting documents; to the office of fiscal management and analysis of the legislative services agency to estimate the fiscal impact on state and local government. Provides that if the fiscal impact is estimated to be greater than $300,000, the rule and supporting documents shall be provided to the administrative rules review committee for review. Provides that the rule described may not take effect unless authorized by a bill enacted by the general assembly. Effective: July 1, 2025. Bascom, Pierce K, Commons, Ireland January 21, 2025, read first time and referred to Committee on Judiciary. 2025 IN 1495—LS 7275/DI 106 Introduced First Regular Session of the 124th General Assembly (2025) PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in this style type. Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution. Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts between statutes enacted by the 2024 Regular Session of the General Assembly. HOUSE BILL No. 1495 A BILL FOR AN ACT to amend the Indiana Code concerning administrative law. Be it enacted by the General Assembly of the State of Indiana: 1 SECTION 1. IC 2-5-56.5 IS ADDED TO THE INDIANA CODE 2 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE 3 JULY 1, 2025]: 4 Chapter 56.5. Administrative Rules Review Committee 5 Sec. 1. As used in this chapter, "committee" refers to the 6 administrative rules review committee established by section 4 of 7 this chapter. 8 Sec. 2. As used in this chapter, "rule" has the meaning set forth 9 in IC 4-22-2-3. 10 Sec. 3. (a) The administrative rules review committee is 11 established to serve the general assembly as a continuing 12 committee. Except as otherwise provided by this section, the 13 committee shall operate under the rules of the legislative council. 14 (b) The committee consists of the following twelve (12) members 15 of the general assembly, including the chair and vice chair: 16 (1) Three (3) members appointed by the president pro 17 tempore of the senate. 2025 IN 1495—LS 7275/DI 106 2 1 (2) Three (3) members appointed by the minority leader of the 2 senate. 3 (3) Three (3) members appointed by the speaker of the house 4 of representatives. 5 (4) Three (3) members appointed by the minority leader of the 6 house of representatives. 7 (c) The chairperson of the senate tax and fiscal policy committee 8 is the chair of the committee beginning July 1 of odd-numbered 9 years and vice chair of the committee beginning July 1 of 10 even-numbered years. The chair of the house ways and means 11 committee is the vice chair of the committee beginning July 1 in 12 odd-numbered years and the chair of the committee beginning July 13 1 in even-numbered years. 14 (d) Except as otherwise provided in this chapter, the term of a 15 member of the committee ends on June 30 of the next 16 odd-numbered year following the member's appointment. 17 However, the member may be reappointed to subsequent terms. 18 (e) A member of the committee may be removed at any time by 19 the appointing authority who appointed the member. 20 (f) If a vacancy exists on the committee, the appointing 21 authority who appointed the member whose position has become 22 vacant shall appoint an individual to fill the vacancy. An individual 23 appointed to fill a vacancy serves for the remainder of the term of 24 the vacating member. 25 (g) If a member of the committee ceases to: 26 (1) be a member of the chamber from which the member was 27 appointed; or 28 (2) hold the member's office; 29 the member ceases to be a member of the committee. 30 (h) Each member of the committee is entitled to receive the 31 same per diem, mileage, and travel allowances paid to individuals 32 who serve as legislative and lay members, respectively, of interim 33 study committees established by the legislative council. 34 (i) The committee shall meet at the call of the chair. The 35 committee may meet during the sessions of the general assembly 36 and during the interim periods between sessions (as defined in 37 IC 2-5-1.3-1). 38 (j) Seven (7) members of the committee constitute a quorum. 39 (k) The affirmative vote of a majority of the members appointed 40 to the committee is required for the committee to take action on 41 any measure. 42 (l) The committee shall review rules submitted to the committee 2025 IN 1495—LS 7275/DI 106 3 1 under IC 4-22-2-34.5. 2 (m) All meetings of the committee are open to the public in 3 accordance with and subject to IC 5-14-1.5. All records of the 4 committee are subject to the requirements of IC 5-14-3. 5 (n) The legislative services agency shall staff the committee. 6 (o) All funds necessary to carry out this chapter shall be paid 7 from appropriations to the legislative council and the legislative 8 services agency. 9 SECTION 2. IC 4-22-2-34, AS AMENDED BY P.L.123-2006, 10 SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 11 JULY 1, 2025]: Sec. 34. (a) The governor may approve or disapprove 12 a rule submitted under section 33 of this chapter with or without cause. 13 (b) The governor has fifteen (15) days from the date that an agency 14 submits a rule under section 33 of this chapter to approve or disapprove 15 the rule. However, the governor may take thirty (30) days to approve 16 or disapprove the rule if the governor files a statement with the 17 publisher within the first fifteen (15) days after an agency submits the 18 rule that states that the governor intends to take an additional fifteen 19 (15) days to approve or disapprove the rule. 20 (c) If the governor neither approves nor disapproves the rule within 21 the allowed period, the rule is deemed approved, and the agency may 22 submit the rule to the publisher under subsection (d) without the 23 approval of the governor. 24 (d) After a rule has been approved or deemed approved under 25 this section, the agency shall submit the rule to the legislative 26 council under section 34.5 of this chapter. 27 SECTION 3. IC 4-22-2-34.5 IS ADDED TO THE INDIANA CODE 28 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 29 1, 2025]: Sec. 34.5. (a) This section applies to a rule subject to 30 sections 23 through 36 of this chapter and if the agency commences 31 a rulemaking action after June 30, 2025, under section 23 of this 32 chapter. 33 (b) After a rule has been approved or deemed approved under 34 section 34 of this chapter, the agency shall submit the rule to the 35 legislative council, in an electronic format under IC 5-14-6. The 36 office of fiscal management and analysis of the legislative services 37 agency shall conduct a fiscal analysis of the rule. The agency shall 38 submit the following for review by the office of fiscal management 39 and analysis: 40 (1) The rule in the form required by section 20 of this chapter. 41 (2) The latest version of the regulatory analysis submitted to 42 the budget agency and the office of management and budget 2025 IN 1495—LS 7275/DI 106 4 1 under section 22.8 of this chapter. 2 (3) Any data, studies, or analyses relied on by the agency to 3 develop the regulatory analysis in the manner specified in 4 section 17.5 of this chapter. 5 (4) Any proposals submitted under IC 13-14-8-2 or 6 IC 13-14-8-5 that are applicable to the rule. 7 (5) Any other: 8 (A) documents or information requested by the legislative 9 council; 10 (B) documents or information required to be submitted to 11 the attorney general or governor with a rule for approval 12 under sections 31 through 34 of this chapter; and 13 (C) documents or information demonstrating approval by 14 the attorney general and governor under sections 31 15 through 34 of this chapter. 16 (c) If, after completing the fiscal analysis described in subsection 17 (b), the office of fiscal management and analysis estimates the fiscal 18 impact on state and local government to be greater than three 19 hundred thousand dollars ($300,000), the office of fiscal 20 management and analysis shall provide the fiscal analysis, the rule, 21 and the supporting documents under this section to the 22 administrative rules review committee for review. A rule subject 23 to review under this subsection may not take effect unless 24 authorized by a bill enacted by the general assembly. 25 (d) A rule subject to review under subsection (c) must be 26 authorized by a bill enacted by the general assembly before the 27 publisher may accept the rule for filing under section 35 of this 28 chapter. 29 SECTION 4. IC 4-22-2-35, AS AMENDED BY P.L.123-2006, 30 SECTION 11, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 31 JULY 1, 2025]: Sec. 35. (a) Except as provided in subsection (d) and 32 subject to section 34.5 of this chapter, when a rule has been approved 33 or deemed approved by the governor within the period allowed by 34 section 25 of this chapter, the agency shall immediately submit the rule 35 to the publisher for filing. The agency shall submit the rule in the form 36 required by section 20 of this chapter and with the documents required 37 by section 21 of this chapter. 38 (b) The agency shall submit to the publisher the copies of the rule 39 and other documents specified in section 31 of this chapter. 40 (c) Subject to section 39 of this chapter, the publisher shall: 41 (1) accept the rule for filing; and 42 (2) electronically record the date and time the rule is accepted. 2025 IN 1495—LS 7275/DI 106 5 1 (d) A rule required to be provided to the administrative rules 2 review committee for review under section 34.5(c) of this chapter 3 may not be submitted to the publisher until the rule has been 4 authorized by a bill enacted by the general assembly. 5 SECTION 5. IC 4-22-2-40, AS AMENDED BY P.L.249-2023, 6 SECTION 37, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 7 JULY 1, 2025]: Sec. 40. (a) At any time before a rule is accepted for 8 filing by the publisher under section 35, 37.1, 37.2, or 38 of this 9 chapter, the agency that adopted the rule may recall it. A rule may be 10 recalled regardless of whether: 11 (1) the rule has been disapproved by the attorney general under 12 section 32 of this chapter; or 13 (2) the rule has been disapproved by the governor under section 14 34 of this chapter; or 15 (3) the rule has been reviewed by the administrative rules 16 review committee under section 34.5 of this chapter. 17 (b) IC 13-14-9 and sections 23 through 38 of this chapter do not 18 apply to a recall action under this section. However, the agency shall 19 distribute a notice of its recall action to the publisher for publication in 20 the Indiana Register. IC 13-14-9 and sections 23 and 26 of this chapter 21 do not apply to a readoption action under subsection (c). 22 (c) After an agency recalls a rule, the agency may reconsider its 23 adoption action and adopt an identical rule or a revised rule. However, 24 if IC 13-14-9 or sections 23 through 36 of this chapter apply to the 25 recalled rule, the readopted rule must comply with the requirements 26 under section 29 of this chapter or IC 13-14-9-9 (as applicable). 27 (d) The recall of a rule under this section voids any approval given 28 after the rule was adopted and before the rule was recalled. 29 (e) If a rule is: 30 (1) subject to sections 31, and 33, and 34.5 of this chapter; 31 (2) recalled under subsection (a); and 32 (3) readopted under subsection (c); 33 the agency shall resubmit the readopted version of the recalled rule to 34 the attorney general and the governor for approval, and to the 35 administrative rules review committee. The attorney general and the 36 governor have the full statutory period to approve or disapprove the 37 readopted rule. The agency shall resubmit the readopted version of a 38 recalled rule to the office of management and budget with sufficient 39 information for the office of management and budget to evaluate 40 whether the initial regulatory analysis submitted to the office of 41 management and budget under section 22.8 of this chapter needs to be 42 revised. If the impact of the readopted rule is substantially different 2025 IN 1495—LS 7275/DI 106 6 1 from the recalled rule, the agency shall submit the revised regulatory 2 analysis to the publisher for publication in the Indiana Register with the 3 document control number assigned by the publisher to the rule. The 4 agency also shall comply with any other applicable approval 5 requirement provided by statute. 6 (f) The readopted version of a recalled rule is effective only after the 7 agency has complied with section 35, 37.1, 37.2, or 38 of this chapter. 8 SECTION 6. IC 34-8-1-0.5 IS ADDED TO THE INDIANA CODE 9 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 10 1, 2025]: Sec. 0.5. The general assembly finds the following: 11 (1) The legislative authority of the state is vested in the 12 general assembly by Article 4, Section 1 of the Constitution of 13 the State of Indiana. 14 (2) The senate and the house of representatives are granted all 15 powers necessary for a branch of the legislative department 16 of a free and independent state by Article 4, Section 16 of the 17 Constitution of the State of Indiana. 18 (3) The constitutional power and authority described in this 19 section necessarily includes the power to establish state policy 20 concerning public safety, public finance, and the operation of 21 state prisons or county jails. 22 (4) A legislative review of proposed supreme court rules 23 affecting public finance is necessary to ensure that policies 24 established by the rules are consistent with the fiscal policies 25 established by the general assembly. 26 (5) The general assembly's exercise of the power and 27 authority described in this section may not be construed as an 28 exercise of judicial power. 29 SECTION 7. IC 34-8-1-1 IS AMENDED TO READ AS FOLLOWS 30 [EFFECTIVE JULY 1, 2025]: Sec. 1. (a) The purpose of this chapter 31 is to enable the supreme court to: 32 (1) simplify and abbreviate the pleadings and proceedings; 33 (2) expedite the decision of causes; 34 (3) remedy abuses and imperfections that exist in the practice; 35 (4) abolish unnecessary forms and technicalities in pleading and 36 practice; and 37 (5) abolish fictions and unnecessary process and proceedings. 38 (b) This chapter may not be construed to grant authority to the 39 supreme court to adopt, amend, or rescind rules concerning 40 general matters of public interest such as public safety, public 41 finance, and the operation of state prisons or county jails. Matters 42 of general public interest described in this subsection may not be 2025 IN 1495—LS 7275/DI 106 7 1 construed as matters of court practice or court procedure. 2 SECTION 8. IC 34-8-1-3 IS AMENDED TO READ AS FOLLOWS 3 [EFFECTIVE JULY 1, 2025]: Sec. 3. Subject to section 1(b) of this 4 chapter, the supreme court has authority to adopt, amend, and rescind 5 rules of court that govern and control practice and procedure in all the 6 courts of Indiana. These rules must be promulgated and take effect 7 under the rules adopted by the supreme court, and thereafter all laws in 8 conflict with the supreme court's rules have no further force or effect. 9 SECTION 9. IC 34-8-1-5 IS ADDED TO THE INDIANA CODE 10 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 11 1, 2025]: Sec. 5. (a) Before a proposed rule takes effect, the 12 supreme court shall provide the legislative council, in an electronic 13 format under IC 5-14-6, with the rule and any economic impact 14 statement, including any supporting data, studies, or analysis, for 15 the rule. The office of fiscal management and analysis of the 16 legislative services agency shall conduct a fiscal analysis of the rule. 17 (b) If, after completing the fiscal analysis described in 18 subsection (a), the office of fiscal management and analysis 19 estimates the fiscal impact on state and local government to be 20 greater than three hundred thousand dollars ($300,000), the office 21 of fiscal management and analysis shall provide the fiscal analysis, 22 the rule, and supporting documents under this section to the 23 administrative rules review committee for review. A rule subject 24 to review under this subsection may not take effect unless 25 authorized by a bill enacted by the general assembly. 26 SECTION 10. IC 34-8-2-1 IS AMENDED TO READ AS 27 FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 1. Subject to 28 IC 34-8-1-1(b), the general assembly of the state of Indiana affirms the 29 inherent power of the supreme court of Indiana to adopt, amend, and 30 rescind rules of court affecting matters of procedure, and the general 31 assembly reaffirms the power given to the supreme court to adopt, 32 amend, and rescind rules of court, including the rules of court adopted 33 in this chapter, as set forth by IC 34-8-1-1. However, the power of the 34 supreme court to adopt, amend, and rescind rules of court does not 35 preclude the creation, by statute, of alternatives to the change of venue. 36 SECTION 11. IC 34-8-2-3 IS ADDED TO THE INDIANA CODE 37 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 38 1, 2025]: Sec. 3. (a) Before a proposed rule takes effect, the 39 supreme court shall provide the legislative council, in an electronic 40 format under IC 5-14-6, with the rule and any economic impact 41 statement, including any supporting data, studies, or analysis, for 42 the rule. The office of fiscal management and analysis of the 2025 IN 1495—LS 7275/DI 106 8 1 legislative services agency shall conduct a fiscal analysis of the rule. 2 (b) If, after completing the fiscal analysis described in 3 subsection (a), the office of fiscal management and analysis 4 estimates the fiscal impact on state and local government to be 5 greater than three hundred thousand dollars ($300,000), the office 6 of fiscal management and analysis shall provide the fiscal analysis, 7 the rule, and supporting documents under this section to the 8 administrative rules review committee for review. A rule subject 9 to review under this subsection may not take effect unless 10 authorized by a bill enacted by the general assembly. 2025 IN 1495—LS 7275/DI 106