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 6268 NOTE PREPARED: Dec 31, 2020
BILL NUMBER: HB 1138 BILL AMENDED:
SUBJECT: Driving Cards.
FIRST AUTHOR: Rep. Campbell BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED: X GENERAL IMPACT: State & Local
X DEDICATED
FEDERAL
Summary of Legislation: This bill provides for the issuance of driving cards and driving card learner's
permits (cards) to residents of Indiana who cannot provide proof of identity and lawful status in the United
States. It provides that the cards may not be used for federal identification or any other federal purpose. The
bill also requires that an individual who holds a card and operates a motor vehicle must verify that financial
responsibility on any motor vehicle that the holder operates is continuously maintained in the amounts
required by law. It also makes conforming amendments and makes technical corrections.
Effective Date: Upon passage; July 1, 2021.
Explanation of State Expenditures: Summary: This bill is expected to increase one-time Bureau of Motor
Vehicles (BMV) Commission Fund expenditures by approximately $927,000 in FY 2021 to issue a new
license type.
BMV expenditures in FY 2022 and after would depend on (1) population growth, (2) new credential
applicants, and (3) the renewal period for credentials first issued during FY 2021. If demand for the
credential in subsequent years is not substantial, it is possible the BMV could process requests for these
credentials with FY 2021 staffing levels.
Additional Information: The BMV reports the cost to redesign two new credentials as required under the bill
would be approximately $927,000 for the new credentials. Of this amount, approximately $825,000 would
be paid to the BMV’s vendor to create the new credentials and $102,000 would include information
technology costs associated with offering the new credentials. The total demand for these credentials is
unknown, but expected to come from the undocumented immigrant population in the state. The bill could
HB 1138 1
increase BMV administrative costs to (1) process and review applications for compliance with requirements
contained in the bill and (2) provide a new license type.
Explanation of State Revenues: Summary: This bill could increase state revenue for requests of the
credential created in the bill. If there are 8,900 requests for the credentials created in the bill, fee revenue to
the state could increase by $144,400. This estimate is based upon the reported 8,900 Deferred Action Against
Childhood Arrivals (DACA) recipients in Indiana as of June 2020. This population is used as a proxy to
estimate who might be the most interested in obtaining the credentials created by the bill. However,
additional individuals could be interested in these credentials beyond those participating and eligible for
DACA.
The bill could also increase state General Fund revenue by requiring individuals who hold driving cards to
maintain financial responsibility.
Additional Information: Licensing Fees– The current fees for an operator’s license and a learner’s permit
are included in the following table. The new credentials have the same fee amounts as the current operators
license and learner’s permit.
Fund Operator’s Learner’s
License Permit
Revenue Revenue
Motor Vehicle Highway Account $4.50 $0.25
Crossroads 2000 Fund $2.00 $2.00
BMV Technology Fund $0.50 $0.50
Integrated Public Safety $1.25 $1.25
BMV Commission Fund $9.25 $5.00
Total $17.50 $9.00
The BMV reports that 85% of annually issued credentials are operator’s licenses and 15% are learner’s
permits. Assuming a similar distribution for these 8,900 individuals, the Motor Vehicle Highway Account
(MVHA), Crossroads 2000, BMV Technology Fund, Integrated Public Safety Communication Fund, and the
BMV Commission Fund will receive additional revenue. Total increases to these funds from 8,900 credential
requests is included in the following table.
BMV Credential Revenue Distribution Estimated revenue from
to Each Fund 8,900 credential requests
MVHA $34,375
Crossroads 2000 $17,800
BMV Technology $4,450
Integrated Public Safety Communication $11,125
BMV Commission Fund $76,650
HB 1138 2
Revenue increases to the MVHA will benefit the State Highway Fund. Based on these projections, the State
Highway Fund is expected to receive approximately $21,300 in revenue.
Financial Responsibility: Domestic insurers have the option to pay taxes on insurance premiums written in
the state or to pay the adjusted gross income (AGI) tax. Foreign insurers are required to pay taxes on
premiums written in the state, and some foreign insurers are assessed additional retaliatory taxes. In these
cases, the minimum tax rate would be 1.3% of written premiums. Revenue received from the AGI tax and
insurance premium tax is deposited in the state General Fund.
If this bill results in additional insurance policies sold in the state, the state General Fund could receive
additional revenue, but any increase is indeterminable.
Explanation of Local Expenditures:
Explanation of Local Revenues: Revenue increases to the MVHA will also result in local revenue increases
for highway construction and maintenance. Approximately 38% of MVHA revenue is forwarded to local
units of government. For 8,900 credential requests, local units of government are expected to receive
approximately $13,100 in revenue.
State Agencies Affected: BMV; INDOT.
Local Agencies Affected: Local recipients of MVHA funding.
Information Sources: Tamytha Cooper, BMV; Stephen Leak, BMV; Migration Policy Institute; U.S.
Citizenship and Immigration Services; U.S. Department of Homeland Security; National Immigration Law
Center, National Conference of State Legislatures.
Fiscal Analyst: Bill Brumbach, 317-232-9559.
HB 1138 3


Statutes affected:
1. Introduced House Bill (H): 9-13-2-39.7, 9-13-2-48, 9-13-2-123.5, 9-14-6-6, 9-14-8-3, 9-14-11-5, 9-14-13-2, 9-14-13-7, 9-21-8-52, 9-24-1-1, 9-24-2-1, 9-24-2-2, 9-24-2-2.5, 9-24-2-3, 9-24-2-4, 9-24-3-1, 9-24-7-1, 9-24-7-4, 9-24-7-5, 9-24-7-7, 9-24-9-2, 9-24-9-2.5, 9-24-10-4, 9-24-10-7, 9-24-11-3.5, 9-24-11-4, 9-24-11-5, 9-24-11-5.5, 9-24-11-7, 9-24-12-0.5, 9-24-12-1, 9-24-12-4, 9-24-12-5, 9-24-12-10, 9-24-12-11, 9-24-12-13, 9-24-13-1, 9-24-14-3.5, 9-24-18-1, 9-24-18-6, 9-24-18-7.5, 9-25-6-7, 9-25-6-15, 9-25-7-3, 9-25-7-6, 9-26-1-1.1, 9-26-1-1.5, 9-27-6-3, 9-27-6-4, 9-27-6-5, 9-30-3-15, 9-30-4-6.1, 9-30-5-18, 9-30-6-4.3, 9-30-8-1, 9-30-13-0.5, 9-30-13-8, 9-30-13-9, 9-30-16-1, 9-30-16-3, 9-30-16-3.5, 9-30-16-5, 9-30-16-6, 9-30-16-6.5, 9-30-16-7, 20-33-2-11, 20-33-2-28.5, 20-33-8-33, 34-24-1-1, 35-43-1-2, 35-43-5-2, 35-52-9-36, 35-52-9-37.5