LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 6871 NOTE PREPARED: Jan 17, 2025
BILL NUMBER: SB 321 BILL AMENDED:
SUBJECT: Designated Wild Areas.
FIRST AUTHOR: Sen. Yoder BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
XDEDICATED
FEDERAL
Summary of Legislation: The bill provides that 13 specified areas within certain state forests are
"designated wild areas". It specifies certain activities that are prohibited or allowed within a designated wild
area. It establishes responsibilities for the Department of Natural Resources (DNR) and divisions that manage
designated wild areas.
Effective Date: July 1, 2025.
Explanation of State Expenditures: Signs: The bill would increase workload and expenditures as it requires
the DNR to post conspicuous signs on the perimeters of the designated wild areas, and allows for signs to
indicate activities that are allowed or prohibited within those areas. The DNR states that signs cost between
$50 and $70 depending on the size and the number of colors. If signs are placed around the entire perimeter
of each designated wild area, 150 feet apart, expenditures would be between $187,000 and $262,000 from
the State Forestry Fund. The DNR should be able to implement the workload provisions using existing staff.
Timber Harvests: The bill would decrease state expenditures from the State Forestry Fund by an estimated
$14,500 to $48,000 annually from costs associated with timber harvests. Costs are estimated as 7% of timber
sales for marking, administration, locating boundaries, and advertising the timber sales. Workload could
reduce for the DNR if there are fewer timber harvests.
Maps: The bill also requires the DNR to prepare and keep on file accurate maps and legal descriptions of
each designated wild area, unless a map or legal description was prepared within the last three years. This
can be accomplished using existing resources.
Explanation of State Revenues: Logging Prohibited: The 13 designated wild areas in the bill (36,820 acres)
comprise about 24% of the total state forest harvestable acreage (153,812). The bill prohibits logging in
these designated wild areas, which could reduce revenue to the State Forestry Fund an estimated $164,000
to $540,000 annually (See Additional Information).
SB 321 1 Permits: The bill also allows the DNR to require a permit to enter a designated wild area or to engage in one
of the allowed recreational activities. The DNR already charges a fee for off-road cycling and camping. If
the DNR were to charge a fee for other activities, revenues may increase minimally.
Additional Information: The timing and magnitude of the impact cannot be determined due to several factors.
There may be some years where none of the designated wild areas in the bill would have been scheduled for
evaluation or harvest. About 3% to 6% of forest tracts are reviewed and assessed each year. Management
actions, including harvesting, are prescribed on select tracts every 15-25 years. Additionally, timber revenues
vary from year to year based on many factors such as weather, tree morbidity, and timber prices. Lastly,
based on the Division of Forestry’s harvest data (2013 to 2017 and 2020 to 2024), revenue and costs per acre
were not only different for each state forest, they were different for the same state forest from the first report
to the second. Therefore, to estimate the range of revenue loss to the State Forestry Fund, 24% of the highest
and lowest revenues over a 10-year period were used, since the designated wild areas comprise 24% of
harvestable acres.
Current law provides that 85% of the net receipts (after costs) from state timber sales must be deposited in
the State Forestry Fund and that 15% must be deposited in the general fund of the county in which the state
forest is located. The five-year average for development costs was 7%.
Estimated Fiscal Impact on Timber Sale Revenue Assuming 24% Revenue Loss
State Forestry Fund (85% distribution) $164,000 - $540,000
Counties (15% distribution)
-County general fund (50% distribution) $15,000 - $47,500
-Volunteer fire departments (50% distribution) $15,000 - $47,500
Explanation of Local Expenditures:
Explanation of Local Revenues: A county in which a state forest is located receives 15% of the net revenue
from timber harvests. Counties that have designated wild areas could collectively lose an estimated $30,000
to $95,000 annually (See Explanation of State Revenues). Fifty percent of the county’s timber sale proceeds
are required to be distributed equally to volunteer fire departments within that county that have a cooperative
lease agreement or contract with the Division of Forestry with a maximum of $1,000 per volunteer fire
department, unless the county legislative body authorizes a higher distribution.
State Agencies Affected: Department of Natural Resources, Division of Forestry.
Local Agencies Affected: Counties with state forests, and volunteer fire departments in those counties.
Information Sources: Department of Natural Resources; Division of Forestry:
Cost-Benefit Analysis of State Timber Sales, Fiscal Years 2013 - 2017;
Cost-Benefit Analysis of State Timber Sales, Fiscal Years 2020 - 2024;
https://gisdata.in.gov/portal/apps/experiencebuilder/experience/?id=7f4ae0a948b24fca94025a740ce44a5e.
Fiscal Analyst: Heather Puletz, 317-234-9484.
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