LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 7111 NOTE PREPARED: Feb 17, 2025
BILL NUMBER: HB 1577 BILL AMENDED: Jan 28, 2025
SUBJECT: Mobile Retail Food Establishment Licenses.
FIRST AUTHOR: Rep. King BILL STATUS: 2
nd
Reading - 1
st
House
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, inspection, and operation of a mobile retail food establishment;
(3) license fees and inspection fees; and
(4) a statewide mobile retail food establishment data base.
It requires the IDOH to establish a workgroup to collaborate with in implementing specified provisions.
Beginning January 1, 2027, 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, 2027, a person may not operate a mobile retail
food establishment in Indiana unless the person obtains a license. It requires the IDOH to adopt rules to
implement these provisions. It also repeals provisions of law governing mobile retail food establishment
permits effective January 1, 2027.
Effective Date: July 1, 2025; January 1, 2027.
Explanation of State Expenditures: The bill will increase expenditures for the IDOH by an indeterminate,
but likely significant amount to establish the required online portal, as prescribed in the bill. Establishing the
portal is estimated to have a one-time cost of up to $750,000 depending on the ability for IDOH to utilize
existing resources and applications in the portal’s development. Also, IDOH will likely require additional
ongoing staffing costs between $80,000 and $84,000 per year, inclusive of salary and benefits. Ultimately,
the source of funds and resources required to satisfy the requirements of this bill will depend on legislative
HB 1577 1 and administrative actions. [Administrative expenses of the IDOH are paid from the Tobacco Master
Settlement Fund, a dedicated fund.]
Additional Information: IDOH indicates that existing technology and resources, such as the State Health
Gateway, will be insufficient to meet the portal requirements. The estimated cost for building a portal
without utilizing existing resources or applications begins at $500,000, with the full cost depending on the
technology requirements of the portal.
IDOH indicates they will likely need to hire one full-time employee for ongoing support and administration
of the portal and the license application data. Based on similar positions within the agency, employing the
additional staff is estimated to cost between $80,000 and $84,000 per year, inclusive of salary and benefits.
The bill also requires the IDOH to establish a Statewide Mobile Retail Food Establishment License and a
workgroup comprised of local health department representatives, as well as adopt rules regarding inspections,
licensure fees, and licensure standards.
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, effective January 1, 2027. Local health departments will still be required to issue licenses (instead
of permits), collect fees, and conduct inspections, as prescribed in the bill. Workload will increase for all
local health departments that participate in the workgroup established by 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, 2027. 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: Rachel Swartwood, IDOH; Graig Lubsen, IOT.
Fiscal Analyst: Jason Barrett, 317-232-9809.
HB 1577 2