LEGISLATIVE SERVICES AGENCY OFFICE OF FISCAL AND MANAGEMENT ANALYSIS FISCAL IMPACT STATEMENT LS 7684 NOTE PREPARED: Jan 10, 2025 BILL NUMBER: HB 1496 BILL AMENDED: SUBJECT: State Educational Institution Administration. FIRST AUTHOR: Rep. Bascom BILL STATUS: As Introduced FIRST SPONSOR: FUNDS AFFECTED:XGENERAL IMPACT: State DEDICATED FEDERAL Summary of Legislation: This bill prohibits use of public funds by a State Educational Institution (SEI) for policies or programs and campus activities outside the classroom that: (1) advocate for campus diversity, equity, and inclusion; or (2) promote or engage in political or social activism. It makes related changes. Effective Date: July 1, 2025. Explanation of State Expenditures: SEIs will experience short- and long-term workload increases as a result of this bill to ensure compliance and approved use of all state and federal funding (including student financial aid awards). The bill also requires a designated official at each SEI to ensure oversight of these requirements. Existing staffing and resource levels, if currently being used to capacity, may be insufficient for full implementation. Ultimately, the source of funds and resources required to satisfy the requirements of this bill will depend on legislative and administrative actions. [SEIs receive state funding through General Fund appropriations.] Additional Information: SEA 202-2024 required all SEIs to submit to the Commission for Higher Education (CHE) data describing the institution’s budget for diversity, equity, and inclusion activities. This information was also to be reviewed by the CHE and reported to the Budget Committee. [This fiscal note may be updated if additional information is made available.] Explanation of State Revenues: Explanation of Local Expenditures: Explanation of Local Revenues: State Agencies Affected: State Educational Institutions. Local Agencies Affected: Information Sources: HB 1496 1 Fiscal Analyst: Alexander Raggio, 317-234-9485. HB 1496 2