LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 6732 NOTE PREPARED: Mar 27, 2025
BILL NUMBER: SB 326 BILL AMENDED: Mar 27, 2025
SUBJECT: Offenses Against Children.
FIRST AUTHOR: Sen. Freeman BILL STATUS: 2
nd
Reading - 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) promptly and in good faith notified law enforcement 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, and authorizes a person to seek injunctive relief as a remedy for a violation.
It also specifies the intent of the General Assembly concerning P.L.115-2023.
Effective Date: July 1, 2025; Upon passage
Explanation of State Expenditures: 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.
SB 326 1 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
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.
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 & Injunctive Relief: 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. Also, if a governmental entity organizes, hosts, or funds an obscene performance,
a person may bring an action to seek injunctive relief. As a result, the state may incur expenses if ordered
to pay specific relief as part of a civil action.
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.
(Revised) Civil Action: 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: 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.
SB 326 2 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.]
(Revised) Injunctive Relief: A person may bring a civil action for a violation of this bill, and may seek
injunctive relief, court costs, reasonable attorney’s fees, and other reasonable expenses of litigation. The
local units may incur expenses if ordered to pay specific relief as part of a civil action.
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.
(Revised) Civil Action: 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: Department of Correction; Department of Child Services; all state agencies.
Local Agencies Affected: Trial courts; city and town courts; local law enforcement agencies; local units.
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.; Indiana Supreme Court, Indiana Trial Court Fee Manual.
Fiscal Analyst: Corrin Harvey, 317-234-9438.
SB 326 3