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 6896 NOTE PREPARED: Feb 16, 2021
BILL NUMBER: SB 323 BILL AMENDED: Feb 4, 2021
SUBJECT: Music Production Incentive Program.
FIRST AUTHOR: Sen. Busch BILL STATUS: As Passed Senate
FIRST SPONSOR: Rep. Heine
FUNDS AFFECTED: X GENERAL IMPACT: State
DEDICATED
FEDERAL
Summary of Legislation: The bill authorizes the Indiana Destination Development Corporation (IDDC) to
employ a Music Commissioner. It also authorizes the IDDC to establish a music production incentive
program.
The bill requires the IDDC, in coordination with the Office of Management and Budget, to provide a report
to the Interim Study Committee on Fiscal Policy concerning: (1) music production incentives offered in other
states; and (2) a recommendation on the type of incentive that should be offered in Indiana.
Effective Date: July 1, 2021.
Explanation of State Expenditures: Interim Study Committee on Fiscal Policy: This bill requires the
IDDC, in coordination with the Office of Management and Budget (OMB), to prepare a report concerning
music production incentives and provide the report to the Interim Study Committee on Fiscal Policy before
October 1, 2021. If the committee were to hold additional meetings to address this topic, there would be
additional expenditures for legislator per diem and travel reimbursement for the committee members. Any
additional expenditures must be within the committee’s budget, which is established by the Legislative
Council.
Indiana Destination Development Corporation: The IDDC may develop an authorization process to establish
a music production incentive program beginning on July 1, 2022. The IDDC also may employ a Music
Commissioner and other necessary staff to perform duties that relate to a music production program. The
total cost of these positions would depend on the number of employees hired. The bill does require applicants
to pay an application fee. The fee may offset the administrative costs.
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Music Production Program: The fiscal impact of the incentive program may begin in FY 2023. The IDDC
may not issue an incentive to a qualified applicant after December 31, 2027. Incentives under the program
are subject to appropriations to the program by the General Assembly.
Office of Management and Budget (OMB): The bill requires the OMB to coordinate with the IDDC to
provide a report to the Interim Study Committee on Fiscal Policy before October 1, 2021. The OMB’s current
level of funding and resources should be sufficient for this provision.
Explanation of State Revenues: The applicant must pay fees to the IDDC when they submit an application.
If the IDDC and the applicant enter into an agreement, then the applicant must pay a final administrative fee.
The fees are determined by the IDDC.
Explanation of Local Expenditures:
Explanation of Local Revenues:
State Agencies Affected: Indiana Destination Development Corporation; Office of Management and Budget.
Local Agencies Affected:
Information Sources:
Fiscal Analyst: Seth Payton, 317-233-3546.
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