LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 7111 NOTE PREPARED: Jan 9, 2025
BILL NUMBER: HB 1577 BILL AMENDED:
SUBJECT: Mobile Retail Food Establishment Licenses.
FIRST AUTHOR: Rep. King BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED: GENERAL IMPACT: State & Local
XDEDICATED
FEDERAL
Summary of Legislation: This bill requires the Indiana Department of Health (IDOH) to establish:
(1) a statewide mobile retail food establishment license;
(2) standards for the licensure and inspection of a mobile retail food establishment by a local health
department; and
(3) standards for the operation of a mobile retail food establishment.
It requires the IDOH to establish license fees and inspection fees.
Beginning July 1, 2026, this bill requires a local health department to:
(1) receive applications for licenses;
(2) collect annual license and inspection fees;
(3) issue licenses; and
(4) conduct semiannual inspections of a mobile retail food establishment that is issued a license.
This bill provides that an owner or operator of a mobile retail food establishment issued a license is not
required to obtain a county or local license or permit, nor required to pay a county or local inspection fee or
a license or permit fee. It provides that beginning January 1, 2026, a person may not operate a mobile retail
food establishment in Indiana unless the person obtains a license. It also requires the IDOH to adopt rules
to implement these provisions.
Effective Date: July 1, 2025.
Explanation of State Expenditures: The bill’s requirements will increase workload for the Indiana
Department of Health (IDOH) but should be able to be implemented using existing staffing and resources.
[Administrative expenses of the IDOH are paid from the Tobacco Master Settlement Fund, a dedicated fund.]
Additional Information: The bill requires the IDOH to establish a Statewide Mobile Retail Food
Establishment License, adopt rules for licensure fees and standards, and establish a related database.
HB 1577 1 Explanation of State Revenues:
Explanation of Local Expenditures: Any change in workload for local health departments is expected to
be minimal. The bill replaces the existing Mobile Retail Food Establishment Permit with the new statewide
license. Local health departments will still be required to issue licenses (instead of permits), collect fees, and
conduct inspections, as prescribed in the bill.
Explanation of Local Revenues: Revenue collected by local health departments will vary depending on the
fees set by the IDOH and the number of units that obtain a statewide license. Under current law, local health
departments may charge a fee of up to $200 for a Mobile Retail Food Establishment Permit. This bill replaces
the local permit with the new statewide license. [Local health department Mobile Retail Food Establishment
Permits were not required for operating a mobile food establishment until January 1, 2025. Permit fee
revenue collected by each local health department is unknown.]
Local units conducting the required inspections, as prescribed in the bill, could experience either an increase
or decrease in fee revenue, depending on the inspection fee levels set by the IDOH.
Additional Information: The bill requires the IDOH to establish annual fees for the licensure and inspection
of mobile retail food establishments. Fee amounts should be set to an amount that relates to the expenses
incurred by local health departments in issuing licenses and conducting the required inspections. Local health
departments may begin issuing licenses and collecting fees beginning January 1, 2026. The bill prohibits
mobile food establishments from paying any county or local fees pertaining to a license, permit, or inspection
that are not approved by the IDOH.
State Agencies Affected: Indiana Department of Health.
Local Agencies Affected: Local health departments; local boards of health; health and hospital corporation.
Information Sources:
Fiscal Analyst: Jason Barrett, 317-232-9809.
HB 1577 2