LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 6732 NOTE PREPARED: Mar 20, 2025
BILL NUMBER: SB 326 BILL AMENDED: Mar 20, 2025
SUBJECT: Offenses Against Children.
FIRST AUTHOR: Sen. Freeman BILL STATUS: CR Adopted - 2
nd
House
FIRST SPONSOR: Rep. Ireland
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
XDEDICATED
FEDERAL
Summary of Legislation: (Amended) This bill replaces the term "child pornography" with the term "child
sex abuse material" throughout the Indiana Code.
It provides that it is a defense to prosecution of child exploitation and possession of child sex abuse material
if a school employee, Department of Child Services (DCS) employee, or attorney acting in the attorney's
capacity as legal counsel: (1) immediately notified law enforcement or DCS about the image or matter
depicting the sexual conduct; and (2) did not duplicate, upload, download, or otherwise transfer the image
or matter. It provides that a governmental entity may not organize or host an obscene performance or fund
an obscene performance using public funds.
It also specifies the intent of the General Assembly concerning P.L.115-2023.
Effective Date: (Amended) July 1, 2025; Upon passage
Explanation of State Expenditures: (Revised) Summary - This bill could reduce the number of persons
convicted and sentenced for child pornography or child exploitation. It could also affect the number of
persons prosecuted for obscene performance as a Level 6 felony. Any change in the Department of
Correction (DOC) offender population will likely be minor.
Additional Information - The following table shows the sentencing experiences of persons convicted for
child exploitation or possession of child pornography between FY 2013 and FY 2024.
Offense Felony Level Percent
confined in
DOC
Percent in
community
supervision
Average Length
of Stay
Child Exploitation
(IC 35-42-4-4(b)(5)(c))
Level 5 80.6% 55.2% 3.66 years
Level 4 86.5% 57.3% 6.22 years
Child Pornography
(IC 35-42-4-4(d)(e))
Level 6 19.6% 70.5% 1.60 years
Level 5 71.5% 71.8% 3.08 years
SB 326 1 The entire Level 4, Level 5, and Level 6 sentences may be suspended and the person placed on either
probation or community corrections. If no time is suspended, the offender can receive good time credit of
25% for a Level 5 and Level 4 felony, 50% for a Level 6 felony, and educational credit time. After adjusting
for credit time, the offender can be released from prison and placed on parole.
The average expenditure to house an adult offender was $29,432 annually, or $80.58 daily, in FY 2024. (This
does not include the cost of new construction.) If offenders can be housed in existing facilities with no
additional staff, the marginal cost for medical care, food, and clothing is approximately $4,719 annually, or
$12.93 daily, per prisoner. These marginal cost estimates are based on contractual agreements with food and
medical vendors and projections based on prior years for clothing and hygiene.
Term Change: This provision will have no fiscal impact.
(Revised) Public Law No. 115-2023: The bill clarifies the General Assembly’s intended application of
P.L.115-2023 to be remedial in nature and applied both prospectively and retroactively. This provision will
have no fiscal impact.
(Revised) Obscene Performance: Under current law, a person who knowingly or intentionally engages in,
participates in, manages, produces, sponsors, presents, exhibits, photographs, films, or videotapes any
obscene performance commits a Class A misdemeanor. The offense is a Level 6 felony if the obscene
performance depicts or describes sexual conduct involving any person who is or appears to be under 18 years
of age.
Explanation of State Revenues: This bill could result in a minor loss in revenue to the state General Fund,
the State User Fee Fund, and the Common School Fund.
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: Child Exploitation or Pornography: If fewer defendants are detained
in county jails prior to their court hearings, local expenditures for jail operations may decrease. However,
any decrease in expenditures would likely be minor.
(Revised) Obscene Performance: A Class A misdemeanor is punishable by up to one year in jail.
[The average cost per day is approximately $64.53 based on the per diem payments reported by U.S.
Marshals to house federal prisoners in 11 county jails across Indiana during CY 2021.]
Explanation of Local Revenues: This bill could result in a minor loss in revenue to the local general funds
of the counties if these felonies are: (1) not filed and (2) the person would have been determined to be guilty
of the offense.
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: Department of Correction; Department of Child Services.
SB 326 2 Local Agencies Affected: Trial courts, local law enforcement agencies.
Information Sources: Abstracts of Judgment, Indiana Supreme Court; Department of Correction; U.S.
Department of Justice Marshals Service; Brown v. State of Indiana, Supreme Court Case No. 24S-CR-288
(2025), https://public.courts.in.gov/decisions.
Fiscal Analyst: Corrin Harvey, 317-234-9438.
SB 326 3