LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 6789 NOTE PREPARED: Jan 1, 2025
BILL NUMBER: SB 349 BILL AMENDED:
SUBJECT: Environmental Remediation.
FIRST AUTHOR: Sen. Raatz BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
DEDICATED
FEDERAL
Summary of Legislation: This bill provides that, for purposes of voluntary remediation of hazardous
substances and petroleum, a restrictive covenant or environmental restrictive ordinance is not necessary to
control potential exposure pathways at a site unless it is determined that the expected future use of the site
is more likely than not to result in exposure to remaining contamination in excess of remediation objectives.
Effective Date: Upon passage.
Explanation of State Expenditures: The bill’s requirements will decrease workload for the Indiana
Department of Environmental Management if fewer restrictive covenants and environmental restrictive
ordinances are issued.
Explanation of State Revenues: If fewer restrictive covenants and environmental restrictive ordinances are
issued, revenue to the state General Fund from civil penalties could also reduce. Any reduction in revenue
is expected to be small.
Additional Information: Although state law authorizes civil penalties of up to $25,000 per day per violation,
most fines are much lower, and most violations of environmental laws are resolved informally with no fines
being issued. The amount of an issued fine depends on the magnitude of the violation, the potential harm to
human health and the environment, the economic benefit gained by the violator from not complying, and the
violator's efforts to achieve compliance.
Explanation of Local Expenditures: If fewer environmental restrictive ordinances are issued, workload
could decrease for municipal corporations.
Additional Information: "Municipal corporation" means a county, city, town, township, school corporation,
library district, fire protection district, public transportation corporation, local hospital authority or
corporation, local airport authority district, special service district, or other separate local governmental entity
that may sue and be sued. The term does not include a special taxing district.
SB 349 1 Explanation of Local Revenues:
State Agencies Affected: Indiana Department of Environmental Management.
Local Agencies Affected: Municipal corporations.
Information Sources: https://www.in.gov/idem/legal/enforcement; IC 5-10-9-1; IC 36-1-6-11.
Fiscal Analyst: Jason Barrett, 317-232-9809.
SB 349 2