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 6797 NOTE PREPARED: Jan 3, 2024
BILL NUMBER: HB 1326 BILL AMENDED:
SUBJECT: Occupational Health and Safety.
FIRST AUTHOR: Rep. Carbaugh BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State
DEDICATED
FEDERAL
Summary of Legislation: The bill provides that the commissioner of labor or the commissioner's duly
designated representative may assess a civil penalty of not less than the minimum civil penalty and not more
than the maximum civil penalty adopted by the United States Occupational Safety and Health Administration
(OSHA) under the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 for an
employer who violates certain health and safety standards.
Effective Date: July 1, 2024.
Explanation of State Expenditures: Department of Labor: Inspecting businesses and assessing penalties
under the Indiana Occupational Safety and Health Act (IOSHA) are within the department’s routine
administrative functions. Adjusting IOSHA penalties should be able to be implemented with no additional
appropriations, assuming near customary agency staffing and resource levels.
Explanation of State Revenues: The bill may increase state General Fund revenue from OSHA penalties.
Switching to the federal penalty limits could increase revenue collected from Indiana occupational health
and safety fines and penalties. In FY 2023, $1.7 M was collected from Indiana employers due to health and
safety violations. Table 1 shows the 2023 federal OSHA civil penalty amounts which would become effective
under the bill. Table 2 lists IOSHA penalty rates under current Indiana law.
According to the U.S. Department of Labor Occupational Safety and Health Administration, states that
operate their own occupational safety and health plans in regards to OSHA as Indiana does are required to
adopt maximum penalty levels at least as effective as Federal OSHA’s which adjusts annually based on the
Consumer Price Index for All Urban Consumers.
HB 1326 1 Table 1. OSHA Civil Penalties under the bill (2023 Federal OSHA Civil Penalties)
Type of Violation Penalty Minimum Penalty Maximum
Serious $1,116 per violation $15,625 per violation
Other-than-Serious $0 per violation $15,625 per violation
Willful or Repeated $11,162* per violation $156,259 per violation
Posting Requirements $0 per violation $15,625 per violation
Failure to Abate N/A $15,625 per day unabated
beyond the abatement date
[generally limited to 30 days
maximum]
* For a repeated other-than-serious violation that otherwise would have no initial penalty, a gravity based
penalty of $446 shall be proposed for the first repeated violation,$1,116 for the second repeated violation,
and $2,232 for a third repetition.
Table 2. Indiana Occupational Health and Safety (IOSHA) Fines and Penalties under Current Law
Type of Violation Penalty Minimum Penalty Maximum
Serious $0 per violation $7,000 per violation
Other-than-Serious $0 per violation $7,000 per violation
Knowing violation contributing
to an employee fatality
$9,472 $132,598
Knowing violation not
contributing to an
employee fatality
$5,000 $70,000
Each repeated violation $0 per violation $70,000
Posting Requirements $0 per violation $7,000 per violation
Failure to abate $0 per violation $7,000 for each day
violation remains unfixed
Explanation of Local Expenditures:
Explanation of Local Revenues:
State Agencies Affected: Department of Labor.
Local Agencies Affected:
Information Sources: IC 22-8-1.1-27.1; Legislative Services Agency. Indiana Handbook of Taxes,
Revenues, and Appropriations, FY 2023; U.S. Department of Labor Occupational Safety and Health
HB 1326 2 Administration. OSHA Penalties. https://www.osha.gov/penalties/; U.S. Department of Labor Occupational
Safety and Health Administration. (2022, December 20). 2023 Annual Adjustments to OSHA Civil Penalties.
https://www.osha.gov/memos/2022-12-20/2023-annual-adjustments-osha-civil-penalties
Fiscal Analyst: Camille Tesch, 317-232-5293.
HB 1326 3