LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
200 W. Washington St., Suite 301
Indianapolis, IN 46204
(317) 233-0696
iga.in.gov
FISCAL IMPACT STATEMENT
LS 6353 NOTE PREPARED: Mar 9, 2021
BILL NUMBER: HB 1039 BILL AMENDED: Jan 28, 2021
SUBJECT: Military Award License Plates
FIRST AUTHOR: Rep. Judy BILL STATUS: Enrolled
FIRST SPONSOR: Sen. Zay
FUNDS AFFECTED: GENERAL IMPACT: State & Local
X DEDICATED
FEDERAL
Summary of Legislation: This bill provides that the surviving spouse of a Purple Heart recipient may retain
the Purple Heart specialty license plate as long as the surviving spouse does not remarry. It also specifies that
the surviving spouse is not eligible to receive a modified disability registration plate.
The bill also establishes the Armed Forces Expeditionary Medal specialty license plate.
Effective Date: July 1, 2021.
Explanation of State Expenditures: The bill will increase the workload and expenditures of the BMV to
design and produce a new license plate. The BMV reports the one-time cost to design a new license plate
to be $5,000, which would be provided from the BMV Commission Fund. Any increase in workload and/or
expenditures is expected to be reimbursed from the collection of license plate administrative fees.
Explanation of State Revenues: Summary - By extending eligibility for a Purple Heart license plate to
surviving spouses, this bill could impact requests for other license plates that generate (1) administrative fee
revenue for the Bureau of Motor Vehicles (BMV) and/or (2) special group revenue for state funds or
agencies.
Additionally, by creating the Expeditionary Veterans license plate, this bill could impact requests for other
license plates that generate (1) administrative fee revenue for the Bureau of Motor Vehicles (BMV) and/or
(2) special group revenue for state funds or agencies.
HB 1039 1
Additional Information -
Purple Heart License Plates: Current Purple Heart recipients have the ability to request multiple Purple Heart
license plates for vehicles registered under an award recipient’s name. This could include vehicles belonging
to a spouse. Upon the death of a Purple Heart recipient, a surviving spouse would not be eligible to retain
these license plates on vehicles registered with the Bureau of Motor Vehicles (BMV).
By extending the ability for surviving spouses to retain the Purple Heart recipient license plate, these
surviving spouses will no longer have to choose a different license plate upon the passing of an award
recipient unless they remarry. It is not known what license plates surviving spouses select when they are no
longer eligible for a Purple Heart license plate. To the extent a surviving spouse would have otherwise
selected a special group recognition license plate, state revenue would decrease from administrative and
special group fees (as applicable for license plates that benefit a state account).
Expeditionary Medal License Plate: The creation of an additional license plate for veterans could impact
license plate requests where state funds and/or agencies receive revenue from special group fees. Because
the Expeditionary Veterans license plate collects a $15 annual fee that is deposited into the Military Family
Relief Fund, to the extent current Hoosier Veteran license plate holders select the new license plate offering,
there will be no impact to state funds. To the extent a current Support Our Troops license plate holder selects
the new license plate offering, the Military and Family Relief Fund will receive $5 less per request.
The following table shows some specialty group license plates offered in the state where a state fund or state
agency is the recipient of the annual special group fee.
BMV
Special
License Plate State Fund State Agency Administrative
Group Fee
Fee
Military Family Relief Indiana Department of
Hoosier Veteran $15 $0
Fund Veterans Affairs
Indiana Homeland Indiana Department of
$25 $15
Security Foundation Homeland Security
Indiana Sheriff’s
Indiana Sheriff’s Association $25 $15
Association
Indiana State Police Indiana State Police $25 $15
Military Family Relief Indiana Department of
Support Our Troops $20 $0
Fund Veterans Affairs
BMV Administrative Fees - For those license plates in which an administrative fee is collected, the revenue
is distributed as follows.
HB 1039 2
 Distribution Fee
BMV Technology Fund $0.50
Crossroads 2000 Fund $1.00
Integrated Public Safety Communication Fund $1.25
BMV Commission Fund $5.00
Motor Vehicle Highway Account $7.25
Total $15.00
Changes in revenue to the MVHA will impact distributions to the State Highway Fund (INDOT). For FY
2021, the State Highway Fund will receive 62% of revenue deposited in the MVHA. The bill’s impact on
the State Highway Fund is indeterminable.
Explanation of Local Expenditures:
Explanation of Local Revenues: By extending eligibility for a Purple Heart license plate to surviving
spouses, this bill could impact revenue local units of government receive from parking fees and parking
enforcement penalties. Decreases in local revenue are indeterminable but expected to be small.
Additionally, any changes to MVHA revenue will impact revenue local units of government receive for
roads. The bill’s impact on local road funding is indeterminable but expected to be small.
State Agencies Affected: BMV; INDOT.
Local Agencies Affected: All.
Information Sources: Dan Shackle, BMV.
Fiscal Analyst: Bill Brumbach, 317-232-9559.
HB 1039 3


Statutes affected:
1. Introduced House Bill (H): 9-18.5-6-1, 9-18.5-6-2
2. House Bill (H): 9-18.5-2-1, 9-18.5-6-1, 9-18.5-6-2, 9-18.5-12-2
3. Engrossed House Bill (H): 9-18.5-2-1, 9-18.5-6-1, 9-18.5-6-2, 9-18.5-12-2
4. House Bill (S): 9-18.5-2-1, 9-18.5-6-1, 9-18.5-6-2, 9-18.5-12-2
5. Enrolled House Bill (H): 9-18.5-2-1, 9-18.5-6-1, 9-18.5-6-2, 9-18.5-12-2