LEGISLATIVE SERVICES AGENCY OFFICE OF FISCAL AND MANAGEMENT ANALYSIS FISCAL IMPACT STATEMENT LS 7685 NOTE PREPARED: Feb 17, 2025 BILL NUMBER: HB 1637 BILL AMENDED: SUBJECT: School and Public Safety Matters. FIRST AUTHOR: Rep. Bartels BILL STATUS: 2 nd Reading - 1 st House FIRST SPONSOR: FUNDS AFFECTED:XGENERAL IMPACT: State & Local XDEDICATED FEDERAL Summary of Legislation: The bill contains the following provisions: School Safety - School Safety Commission: The bill provides for the appointment of a fire chief, or the fire chief's designee, to a county school safety commission. Office of School Safety: The bill establishes the Office of School Safety within the Department of Homeland Security (DHS) for the purpose of coordinating and administering school security and safety resources. It also requires a school corporation or charter school to comply with certain safety related requests by the Office of School Safety. Composition of Board: The bill changes the composition of the Secured School Safety Board. School Safety Projects: The bill provides that the Secured School Fund may be used to provide financial assistance for projects of the office of school safety that are approved by the Secured School Safety Board. Annual Door Inspection: The bill requires a school safety plan to include measures to annually inspect each protective door assembly on school buildings to ensure compliance with standards established by the Fire Prevention and Building Safety Commission. Division of School Building Physical Security and Safety: The bill repeals the provision establishing the Department of Education's Division of School Building Physical Security and Safety. Fire and Building Safety - Board of Firefighting Personnel Standards and Education: The bill authorizes the DHS to issue enforcement orders in accordance with rules adopted by the Board of Firefighting Personnel Standards and Education. HB 1637 1 State Fire Marshal: The bill removes emergency medical services enforcement authority from the State Fire Marshal's management authority. It amends the definition of "law enforcement officer" to include the State Fire Marshal and the executive director or fire investigator of the department. Open Fire Exemption: The bill provides that the DHS, a fire department, or a volunteer fire department may open burn for fire training purposes if certain conditions are met. Enforcement: The bill makes various changes to provisions relating to the DHS's enforcement authority pertaining to the administrative adjudication of building fire and safety laws. Inspections: The bill requires that a city, town, or county that requires a building permit for the construction of a Class 2 structure to allow the inspection to be conducted by third party inspectors. Building Code Review: The bill provides that the Fire Prevention and Building Safety Commission, with certain exceptions, may not adopt a final rule for more than three building codes during any 12 month period. The bill also makes conforming amendments. Effective Date: Upon passage; July 1, 2025. Explanation of State Expenditures: Office of School Safety: The bill increases expenditures and workload significantly for Department of Homeland Security (DHS) to establish an Office of School Safety within DHS to coordinate and administer school security and safety. The Office of School Safety will perform many of the same responsibilities by the Division of School Building Physical Security and Safety such as establishing and working with schools’ safety and emergency plans, assisting the Secured School Safety Board, hosting a website, operating the School Safety Specialist Training and Certification Program. The DHS executive director would appoint a director which would cost an estimated $132,970 to $207,057 in FY 2026 and $138,649 to $215,700 in FY 2027. Implementation of the Office of School Safety will likely require additional full-time equivalent employees. Based on similar positions, salary and benefits for an additional employee could range from $92,312 to $132,588 in FY2026 and $96,365 to $138,252 in FY 2027. Additional Information - The Division of School Building Physical Security and Safety would transfer all property, records, and accounts to the Office of School Safety. The School Safety Specialist Training and Certification Program for the Department of Education (DOE) was appropriated $1 M in FY 2024. Secured School Safety Board: The Secured School Safety Board increases members from 7 to 11 members. In addition, the Secured School Safety Board would provide financial assistance for projects of the Office of School Safety that are approved by the Secured School Safety Board. It would increase expenditures to the extent of the projects approved by the board and per diem and travel expenses from the increase in members. The increases in expenditures would be funded through the Secured School Safety Fund. [The Secured School Safety Fund was appropriated $24.6 M in FY 2024 and FY 2025.] Department of Education: This bill repeals the DOE’s Division of School Building Physical Security and Safety, which will be succeeded by Office of School Safety. DOE is still required to work in conjunction with the Office of School Safety in developing and implementing certain protocols as specified in the bill, but this bill will decrease the net workload for DOE. Board of Firefighting Personnel Standards and Education: The Board of Firefighting Personnel Standards HB 1637 2 and Education would have an increase in workload and expenditures for appeals from certain orders issued and creating a program for certification of fire service or nonfire service personnel. Increases in expenditures are likely to be small and potentially offset from fees from the created certification program. The bill transfers reporting of training requirements of fire fighters, certification of firefighters, and administration of Best Practices Fund from Board of Firefighting Personnel Standards and Education to DHS. The bill’s requirements are within the agency’s routine administrative functions and should be able to be implemented with no additional appropriations, assuming near customary agency staffing and resource levels. State Fire Marshal: The bill would decrease the workload of the state fire marshal to not manage the enforcement authority of emergency medical services. The workload would transfer to DHS to manage the enforcement authority of emergency medical services. DHS has an emergency medical services division to potentially reorganize the enforcement authority of emergency medical services. The bill makes the state fire marshal a law enforcement officer when conducting an investigation into the causes and circumstances surrounding a fire or explosion. It does not affect ongoing investigations that continue after July 1, 2025. The bill’s requirements are within the agency’s routine administrative functions and should be able to be implemented with no additional appropriations, assuming near customary agency staffing and resource levels. Building Code Review: The bill limits Fire Prevention and Building Safety Commission to adopt a final rule for no more than three building codes during any 12 month period. It may increase workload to extent that the commission reviews more building codes (Current law only allows to review three building codes a year). The bill’s requirements are within the commission’s routine administrative functions and should be able to be implemented with no additional appropriations, assuming near customary agency staffing and resource levels. Enforcement: DHS would have an increase workload to publish a list of projects for design release that is not selected for an application plan review. The bill’s requirements are within the agency’s routine administrative functions and should be able to be implemented with no additional appropriations, assuming near customary agency staffing and resource levels. Explanation of State Revenues: Board of Firefighting Personnel Standards and Education: Board of Firefighting Personnel Standards and Education may create a program for certification of fire service or nonfire service personnel. If the board creates a program, fee revenue from certification may increase. The fees would be set by the board and deposited into the Fire and Building Services Fund. Any increase in fee revenue is likely to be small. Open Fire Exemption: DHS, municipal fire departments, and volunteer fire departments are exempt from air pollution control violations to open burn for certain fire training purposes. Revenue from penalties fees from Indiana Department of Environmental Management (IDEM) would decrease. IDEM may collect a civil penalty up to $25,000. Any penalty decrease would be small. Enforcement: For a practitioner of an elevator contractor, elevator inspector, or elevator mechanic, revenue from civil penalties may decrease due to maximum penalty amount DHS may impose decreasing from a $1,000 to $250. The revenue would be deposited into the Fire and Building Services Fund. Any decrease in revenue is expected to be small. HB 1637 3 Explanation of Local Expenditures: Annual Door Inspection: School corporations would have an increase in expenditures and workload to add to the school safety plan to annually inspect each protective door assembly on school building to ensure compliance with the Fire Prevention and Building Safety Commission. Costs associated with the inspections will range from a minimum of $200 for small buildings to over $1,500 for large buildings. The costs for inspections will be new but if the inspections lead to needing repairs or replacements, costs for repairs and replacement should be at least partially covered by established facilities maintenance budgets. School Safety Commission: The bill may increase workload for a fire chief, or a fire chief’s designee, if appointed for a county school safety commission. However, it should be able to be implemented with no additional appropriations, assuming near customary agency staffing and resource levels. Explanation of Local Revenues: State Agencies Affected: Department of Homeland Security; State Fire Marshal; Board of Firefighting Personnel Standards and Education; Secured School Board; Indiana Department of Environmental Management; Department of Education. Local Agencies Affected: Local fire departments; Public Schools. Information Sources: SPD Staffing Data. Peoplesoft Financial Data. Fiscal Analyst: Nate Bodnar, 317-234-9476; Alexander Raggio, 317-234-9485. HB 1637 4