LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 6430 NOTE PREPARED: Jan 2, 2025
BILL NUMBER: SB 515 BILL AMENDED:
SUBJECT: Historic Sites.
FIRST AUTHOR: Sen. Leising BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State
XDEDICATED
FEDERAL
Summary of Legislation: The bill establishes the Division of Historic Sites (Division) in the Department
of Natural Resources (DNR). It transfers management of historic sites from the Indiana State Museum and
Historic Sites Corporation (ISMHS) to the Division. It makes conforming changes. It makes an appropriation.
Effective Date: July 1, 2025.
Explanation of State Expenditures: Board of Trustees: The bill creates a 13-member Board of Trustees
for the Division that is to meet at least quarterly. The DNR Director is to serve as chairperson of the trustees.
The Governor is to appoint 12 other members, including one member from each of Indiana’s 9 congressional
districts. Members are entitled to travel reimbursement, and members who are not state employees are also
entitled to a per diem of $100. The director of the new Division serves as the secretary of the trustees.
Establishment and Administration of Funds: The bill establishes the new nonreverting State Historic Sites
Development Fund. This fund is to be administered by the Division or an entity designated by the Division.
Money in the this fund is continuously appropriated, after Budget Committee review and State Budget
Agency approval. The bill also establishes the new nonreverting Historic Site Acquisition Fund to be
administered by the Division, with money continuously appropriated.
The bill allows the Division to designate a nonprofit subsidiary corporation for fundraising efforts, to be
known as the Indiana Historic Sites Foundation, and requires the Division to provide administrative support
to this foundation, and allows the Division to provide office facilities.
Transfer of Historic Sites Management: The ISMHS Corporation, a quasi-agency, currently manages the
State Museum and eleven historic sites throughout the state. The bill establishes the new Division of Historic
Sites within the DNR, and transfers all powers, duties, assets, and liabilities of the state’s historic sites from
the ISMHS Corporation to the Division (the ISMHS Corporation’s name will change to the Indiana State
Museum Corporation).
The State Budget Agency is to determine and transfer any funds used to operate and maintain historic sites
SB 515 1 from the State Museum Development Fund, and transfer funds from any other account that were intended
for the historic sites, to the new nonreverting State Historic Sites Development Fund. However, the majority
of historic site net assets are held in external accounts (not within the state treasury) by the Indiana State
Museum Foundation, a nonprofit subsidiary corporation that raises funds and accepts gifts and donations for
the ISHMS Corporation. If the foundation’s existence as a “subsidiary corporation” is sufficient to be
considered an asset of the ISMHS Corporation, those net assets will also be divided.
The combined net position of the ISHMS Corporation and the Indiana State Museum Foundation, as of June
30, 2024, was $13.3 M. The impact of the bill’s provision to move management of the historic sites will
depend on the amount transferred to the Division from other state funds, and possibly from external funds,
to cover the costs of the historic sites, as well as the amounts left untransferred to continue to cover the costs
of the Indiana State Museum.
President Benjamin Harrison Conservation Trust Project Committee: The bill adds the director of the new
DNR Division to the President Benjamin Harrison Conservation Trust Project Committee (now 21 members),
and requires nine members present (instead of eight) to constitute a quorum. This additional member would
be entitled to reimbursement for travel expenses.
Additional Information:
ISMHS Corporation State Funds: HEA 1001-2023 appropriated $11 M for each fiscal year of the biennium
to the ISMHS Corporation for operating expenses and $2.3 M (FY 2024) and $1.7 M (FY 2025) for repairs
and maintenance. Personnel expenses for ISMHS Corporation employees are paid from state General Fund
appropriations into ISMHS Corporation funds, within the state treasury. The balance of state funds held for
the ISMHS Corporation as of June 30, 2024, was around $265,000.
Also appropriated was $1 M for each fiscal year of the biennium as a capital fundraising match (for repair
and rehabilitation) and a $7 M fundraising match for FY 2024 for the Whitewater Canal Rehabilitation for
when the ISMHS Corporation raises $7 M in private donations or local unit contributions. State
appropriations for construction and maintenance are disbursed from state funds to the ISMHS Corporation
be held in external funds.
Background on the ISMHS Corporation: Legislation in 2011 repealed the DNR’s Division of State Museums
and Historic Sites, and moved management of those properties to the newly established ISMHS Corporation,
a quasi-agency. In the first fiscal year (FY 2012), the DNR transferred $1.3 M in cash and $0.5 million in
net capital assets to the ISMHS Corporation.
The year-end net position for FY 2012 was $5.9 M (ISMHS Corporation $2 M; Foundation $3.9 M). The
year-end net position for FY 2024, was $13.3 M (ISMHS Corporation $2.6 M; and Foundation $10.7 M),
a decrease of $3.5 M from the prior FY.
State Employee Benefits and Retirement: Under the bill, employees currently working at a historic site will
become employees of the state. This should not increase expenditures for salaries, benefits, or retirement
plans as current law allows the ISMHS Corporation to participate in these plans. However, expenditures
would increase for the Division to contribute to Retirement Medical Benefits Accounts (RMBA) for full time
state employees. State employers contribute between $500-$1,400 annually per employee depending on the
employee's age.
SB 515 2 Other Provisions: Two of the historic sites referenced in the bill, the Wilbur Wright Birthplace Museum and
Ernie Pyle Birthplace, no longer belong to the state.
Explanation of State Revenues: Revenue to the Division for the management of historic sites will depend
on the amount transferred from other state funds, and possibly from external funds, to cover the costs of the
historic sites (See Explanation of State Expenditures).
Explanation of Local Expenditures:
Explanation of Local Revenues:
State Agencies Affected: Department of Natural Resources; ISMHS Corporation; Natural Resources
Commission; President Benjamin Harrison Conservation Trust Project Committee; State Budget Agency.
Local Agencies Affected:
Information Sources:
https://www.indianamuseum.org/resources/;
https://www.in.gov/sboa/WebReports/B42160.pdf (June 30, 2012);
https://www.indianamuseum.org/wp-content/uploads/2024/03/Audit-Report-for-June-30-2023.pdf;
https://www.indianamuseum.org/wp-content/uploads/2024/11/Audit-Report-for-June-30-2024.pdf;
https://www.indianamuseum.org/wp-content/uploads/2024/11/Form-990-June-2022.pdf;
https://www.indianamuseum.org/wp-content/uploads/2024/11/Form-990-June-2023.pdf;
https://wwbirthplace.com/wright-family-history;
https://www.visitindiana.com/listing/ernie-pyle-wwii-museum/14242/.
Fiscal Analyst: Heather Puletz, 317-234-9484.
SB 515 3