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 6694 NOTE PREPARED: Dec 26, 2023
BILL NUMBER: HB 1159 BILL AMENDED:
SUBJECT: Worker's Compensation.
FIRST AUTHOR: Rep. Lehman BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
XDEDICATED
XFEDERAL
Summary of Legislation: The bill provides that a bid specification that is entered into, issued, amended,
or renewed after June 30, 2024, may not contain a provision requiring an employer to have or maintain a
specified experience rating. It requires certain insurance companies that make a successful subrogation claim
to revise an insured party's prior experience ratings in a specified manner. It provides exceptions. It also
defines terms and makes a conforming amendment.
Effective Date: July 1, 2024.
Explanation of State Expenditures: All Agencies as Employers/Contractees: The bill prevents a contract
(after June 30, 2024) from having requirements related to the employer’s experience rating for workers’
compensation, but does not prevent parties awarding contracts from considering the employer’s experience
rating. This may impact future contract costs and negotiations. The experience rating has historically been
a factor considered in the safety evaluation of a construction operation or contractor. This could increase the
potential number of contract bids, yet the impact on costs is indeterminate at this time.
The bill’s provisions also modify how a successful subrogation claim is defined and thus could further impact
experience ratings and workers’ compensation rates in the future. This has the potential to decrease workers’
compensation premium increases.
Department of Insurance (DOI): DOI reviews rates that are submitted by the Indiana Compensation Rating
Bureau (ICRB), and after investigation, approves ratings. The ICRB is ultimately responsible for rule
making. The bill’s requirements should be able to be implemented with no additional appropriations. [The
DOI is funded through a dedicated agency fund.]
HB 1159 1 Additional Information - The ICRB is a private unincorporated association of all companies licensed to write
workers’ compensation insurance in Indiana. The ICRB is a statutory rating organization in accordance with
IC 27-7-2.
Explanation of State Revenues:
Explanation of Local Expenditures: All Units as Employers/ Contractees: The bill prevents a contract
from having requirements related to the employer’s experience rating and could impact contract costs and
negotiations.
Explanation of Local Revenues:
State Agencies Affected: All; Department of Insurance.
Local Agencies Affected: All.
Information Sources: Indiana Compensation Rating Bureau, https://www.icrb.net/experience-rating/
Fiscal Analyst: Camille Tesch, 317-232-5293.
HB 1159 2