LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 6753 NOTE PREPARED: Dec 30, 2024
BILL NUMBER: SB 235 BILL AMENDED:
SUBJECT: Limitations on Diversity, Equity, and Inclusion.
FIRST AUTHOR: Sen. Johnson T BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
XDEDICATED
FEDERAL
Summary of Legislation: This bill establishes prohibitions and requirements on state agencies, recipients
of state contracts or grants, state educational institutions (SEIs), and health profession licensing boards
regarding diversity, equity, and inclusion (DEI). The bill provides that certain civil actions for noncompliance
may be filed against an SEI. It also establishes: (1) requirements regarding a standardized admissions test;
and (2) requirements regarding altering academic standards; for postsecondary educational institutions that
offer certain health education programs.
Effective Date: July 1, 2025.
Explanation of State Expenditures: Attorney General (AG): This bill requires that all training,
programming and activities that are to be promulgated by a state agency in order to comply with state and
federal law must be developed by an attorney and approved by the AG. It also allows the AG to investigate
violations of the bill’s provisions and to adopt rules concerning such investigations. These provisions may
constitute a significant workload increase for the AG, and existing staffing and resource levels, if currently
being used to capacity, may be insufficient for full implementation. The additional funds and resources
required could be supplied through existing staff and resources currently being used in another program or
with new appropriations.
Standardized Testing for Admissions: This bill requires the utilization of a standardized test “focused on
knowledge and critical thinking around science and medical training” by all “eligible institutions,” which
are defined in the bill as any institution offering a health education program at the bachelors level or above.
Currently, there are no standardized tests specifically for prospective undergraduate students in the health
field. It is unclear if the required standardized test applies to all applicants to the institution or only to the
health education programs. If a suitable test for applicants to undergraduate health education programs exists,
or a broader standardized test such as the SAT or ACT is determined to meet the requirements of this bill,
this provision will create minor workload increases associated with revising admissions requirements.
Academic Standards: This bill provides that eligible institutions may not implement changes to academic
standards for admission or graduation until at least 60 days after it has notified the Legislative Council and
SB 235 1 the Commission for Higher Education (CHE). It also specifies that eligible SEIs that are not open enrollment
programs must require graded (“A” through “F”) rather than “pass/fail” assessments for all courses required
to graduate. These requirements are within each SEI’s routine administrative functions and should be able
to be implemented with no additional appropriations, assuming near customary agency staffing and resource
levels.
DEI Prohibitions: This bill prohibits programming that includes DEI as defined in this bill. It prohibits DEI
audits and the hiring of DEI consultants by state agencies, SEIs and health licensing boards, as well as the
establishment of DEI offices or the hiring of DEI officers by state agencies and SEIs. All agencies will need
to review and, if necessary, revise policies and practices to ensure compliance with this bill. Some entities
may need to reorganize staff or reassign personnel. These requirements should be met within existing
resources, and in some cases, may result in a net decrease in expenditures.
All human health profession licensing entities would be prohibited from including DEI training requirements
or considering such training as a factor in certification. This will require the review and potential revision
of certification processes by 17 boards, but any increase in workload should be within the routine
administrative functions of each board. [Boards are appointed by the Governor and staffed by the
Professional Licensing Association, which receives General Fund appropriations.]
Legal Actions Against SEIs: This bill allows an aggrieved individual to file a civil suit against an SEI for
violations of certain provisions of this bill. Any action filed could result in additional workload to the SEI
or additional legal costs. A ruling against an SEI could result in additional costs to the SEI in the form of
fines and attorney’s fees for the plaintiff. The bill also specifies that the AG may petition the court to compel
compliance by an SEI and to seek a civil penalty of up to $1 M per violation.[SEIs receive General Fund
appropriations.]
Explanation of State Revenues: If additional civil cases occur and court fees are collected, revenue to the
state General Fund will increase. The total revenue per case would range between $100 and $122. The
amount 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
civil, probate, and small claims cases.
Explanation of Local Expenditures:
Explanation of Local Revenues: If additional cases occur, revenue will be collected by certain local units.
If the case is filed in a court of record, the county will receive $32 and qualifying municipalities will receive
a share of $3. If the case is filed in a municipal court, the county receives $20, and the municipality will
receive $37. The following linked document describes the fees and distribution of the revenue: Court fees
imposed in civil, probate, and small claims cases.
State Agencies Affected: All state agencies, SEIs, health profession licensing boards.
Local Agencies Affected: Trial courts, city and town courts.
Information Sources: Indiana Supreme Court, Indiana Trial Court Fee Manual.
Fiscal Analyst: Alexander Raggio, 317-234-9485.
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