2023 Indiana Code › Title 4. State Offices and Administration › Article 22. Administrative Rules and Procedures › Chapter 2. Adoption of Administrative Rules › 4-22-2-19.6. Adoption of a Rule That Includes a Fee, Fine, or Civil Penalty; Requirements; Effect of Nonconformity

Sec. 19.6. (a) A rule adopted under this article or IC 13-14-9 that includes a fee, fine, or civil penalty must comply with this section. Subsections (b), (c), and (d) do not apply to a rule that must be adopted in a certain form to comply with federal law.
(b) For each fee, fine, or civil penalty imposed by an agency that is not set as a specific amount in a state law, a rule must describe the circumstances for which the agency will assess a fee, fine, or civil penalty and set forth the amount of the fee, fine, or civil penalty:
(1) as a specific dollar amount;
(2) under a formula by which a specific dollar amount can be reasonably calculated by persons regulated or otherwise affected by the rule; or
(3) as a range of potential dollar amounts, stating the factors that the agency will utilize to set a specific dollar amount in an individual case with sufficient certainty that a review of an agency action under IC 4-21.5 or comparable process can evaluate whether the amount was reasonable.
A rule concerning fines or civil penalties does not prohibit an agency to enter into a settlement agreement with a person against whom a fine or civil penalty is being assessed to determine the fine or civil penalty to be paid for a violation.
(c) The amount of a fee must be reasonably based on the amount necessary to carry out the purposes for which the fee is imposed.
(d) An agency setting a fine or civil penalty shall consider the following:
(1) Whether the violation has a major or minor impact on the health, safety, or welfare of a person, the health or safety of animals or natural resources, or other facts set forth in the agency's rule.
(2) The number of previous violations committed by the offender of laws, rules, or programs administered by the agency.
(3) The need for deterrence of future violations.
(4) Whether the conduct, if proved beyond a reasonable doubt, would constitute a criminal offense, and the level of penalty set by law for the criminal offense.
(e) An agency is not liable for a fee, fine, or civil penalty that is not in conformity with this section if:
(1) the fee, fine, or civil penalty was included in a rule that became effective before January 1, 2023, and that otherwise complies with subsection (b);
(2) the fee, fine, or civil penalty was:
(A) set by an agency before January 1, 2023;
(B) reviewed by the budget committee:
(i) in the case of the department of environmental management, the boards listed in IC 13-14-9-1, the office of environmental adjudication, the natural resources commission, the department of natural resources, the Indiana gaming commission, and the Indiana horse racing commission, before December 31, 2023; and
(ii) in the case of an agency not described in item (i), before July 1, 2024; and
(C) included in a rule that complies with this section and becomes effective before:
(i) in the case of the department of environmental management, the boards listed in IC 13-14-9-1, the office of environmental adjudication, the natural resources commission, the department of natural resources, the Indiana gaming commission, and the Indiana horse racing commission, December 31, 2024; and
(ii) in the case of an agency not described in item (i), July 1, 2025; or
(3) the agency withdraws or otherwise ceases to enforce or apply the fee, fine, or civil penalty before:
(A) in the case of the department of environmental management, the boards listed in IC 13-14-9-1, the office of environmental adjudication, the natural resources commission, the department of natural resources, the Indiana gaming commission, and the Indiana horse racing commission, December 31, 2023; and
(B) in the case of an agency not described in clause (A), July 1, 2024.
Readoption without changes under IC 4-22-2.6 of a nonconforming fee, fine, or civil penalty that meets the requirements of subdivision (1) or (2) does not invalidate the nonconforming fee, fine, or civil penalty.
(f) Beginning January 1, 2024, an agency shall post on its website a schedule of fines and civil penalties that apply to violations of laws, rules, and requirements of federal programs administered by the agency.
As added by P.L.249-2023, SEC.15.