LEGISLATIVE SERVICES AGENCY OFFICE OF FISCAL AND MANAGEMENT ANALYSIS FISCAL IMPACT STATEMENT LS 6703 NOTE PREPARED: Apr 7, 2025 BILL NUMBER: SB 197 BILL AMENDED: Apr 7, 2025 SUBJECT: Various Property Matters. FIRST AUTHOR: Sen. Freeman BILL STATUS: CR Adopted - 2 nd House FIRST SPONSOR: Rep. Ireland FUNDS AFFECTED:XGENERAL IMPACT: State & Local XDEDICATED XFEDERAL Summary of Legislation: (Amended) Unsafe Buildings: The bill provides that the enforcement authority shall give notice with certain requirements. It provides that after a civil penalty is imposed and a hearing is held, the enforcement authority may impose an additional civil penalty. The bill provides that if a civil penalty is unpaid for more than 30 days after payment of the civil penalty is due, the civil penalty may be collected in the same manner as unpaid costs for unsafe premises repairs or emergency actions taken. Waste Disposal: The bill provides that depositing or causing or allowing the deposit of contaminants or solid waste upon the land is a Class C misdemeanor in certain circumstances. Utility Data: The bill provides that after May 14, 2025, a unit may not adopt or enforce a utility usage data ordinance. Use of Public Land: The bill makes it a Class C misdemeanor for a person to use public property of the state or a political subdivision for purposes of sleeping or camping, subject to certain exceptions and conditions. It requires a law enforcement officer that discovers a violation to first determine if there are reasonable grounds for an emergency detention of the person. The bill provides that if the law enforcement officer does not proceed with an emergency detention, the law enforcement officer must: (1) give the person a warning to move from the property within a certain period of time; (2) offer to transport the person to a location (if a location exists and is available to provide mental health services or shelter) within five miles of where the violation occurs; and (3) call a local crisis intervention team for assistance, if: (A) the unit is served by a local crisis intervention team; and (B) a location to provide mental health services or shelter does not exist or is not available to receive the person or the person refuses to be transported to the location. The bill requires a person charged with a violation to be referred to a problem solving court designated by the prosecuting attorney. Medicaid Waiver: The bill allows application of a Medicaid waiver to provide long term access to home and community based services, including housing related services, under the healthy Indiana plan. SB 197 1 Effective Date: (Amended) Upon passage; July 1, 2025. Explanation of State Expenditures: (Revised) Medicaid Waiver: The bill allows the Office of the Secretary of Family and Social Services (FSSA) to apply for modification of the HIP 2.0 Substance Use Disorder (SUD) and Serious Mental Illness (SMI) waiver to expand the conditions covered and the services offered. Applying for the waiver renewal application will increase workload for FSSA but should be able to be implemented using existing staffing and resources. If additional conditions or services are added and federally approved, the waiver population may receive additional services which could increase overall Medicaid expenditures. [An extension request for the SUD/SMI waiver was submitted on December 20, 2024 for the wavier that expires on December 31, 2025.] Explanation of State Revenues: (Revised) Waste Disposal and Use of Public Land: If additional court cases occur and fines are collected, revenue to both the Common School Fund (from fines) and the state General Fund (from court fees) would increase. The maximum fine for a Class C misdemeanor is $500. The total fee revenue per case would range between $113 and $138. The amount of court fees deposited will vary depending on whether the case is filed in a court of record or a municipal court. The following linked document describes the fees and distribution of the revenue: Court fees imposed in criminal, juvenile, and civil violation cases. Explanation of Local Expenditures: (Revised) Waste Disposal and Use of Public Land: A Class C misdemeanor is punishable by up to 60 days in jail. (Revised) Use of Public Land: The implementation of these provisions may require courts and law enforcement agencies to modify their current practices. The local units should have the existing resources necessary to implement those provisions. (Revised) Unsafe Buildings: The provisions modifying the content and timing of civil penalty notices can be accomplished within existing resources. (Revised) Utility Data: The provision prohibiting a local unit from adopting or enforcing a utility usage data ordinance after May 14, 2025 can likely be accomplished within existing resources. Explanation of Local Revenues: (Revised) Unsafe Buildings: The provision extending the notice date of an unpaid civil penalty from 15 days to 30 days will likely have no fiscal impact. (Revised) Waste Disposal and Use of Public Land: If additional court actions occur and a guilty verdict is entered, more revenue will be collected by certain local units. If the case is filed in a court of record, the county general fund will receive $47.40 and qualifying municipalities will receive a share of $3.60. If the case is filed in a municipal court, the county receives $30, and the municipality will receive $46. The following linked document describes the fees and distribution of the revenue: Court fees imposed in criminal, juvenile, and civil violation cases. State Agencies Affected: Office of the Secretary of Family and Social Services. Local Agencies Affected: Enforcement and hearing authorities assigned with administering unsafe building laws in counties and municipalities; trial courts, local law enforcement agencies. SB 197 2 Information Sources: Indiana Supreme Court, Indiana Trial Court Fee Manual; https://www.medicaid.gov/medicaid/section-1115-demonstrations/downloads/in-healthy-indiana-plan-pa- 12202024.pdf; https://www.in.gov/fssa/hip/files/IN_SMI_Interim_Report_Draft.pdf. Fiscal Analyst: James Johnson, 317-232-9869; Karen Rossen, 317-234-2106. SB 197 3