Introduced Version
SENATE BILL No. 264
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 22-3.
Synopsis: Religious exemption from worker's compensation. Provides
an exemption from worker's compensation and occupational diseases
coverage for a member of certain religious sects or a division of a
religious sect who meets certain requirements and obtains a certificate
of exemption (certificate) from the worker's compensation board
(board). Provides that if certain information about an individual who
holds a certificate is no longer true: (1) the individual and the
individual's employer must take certain steps; and (2) the certificate is
no longer effective. Makes conforming changes.
Effective: July 1, 2024.
Bassler
January 16, 2024, read first time and referred to Committee on Pensions and Labor.
2024 IN 264—LS 6545/DI 153 Introduced
Second Regular Session of the 123rd General Assembly (2024)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in this style type. Also, the
word NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
between statutes enacted by the 2023 Regular Session of the General Assembly.
SENATE BILL No. 264
A BILL FOR AN ACT to amend the Indiana Code concerning labor
and safety.
Be it enacted by the General Assembly of the State of Indiana:
1 SECTION 1. IC 22-3-2-9, AS AMENDED BY P.L.201-2005,
2 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2024]: Sec. 9. (a) IC 22-3-2 through IC 22-3-6 shall not apply
4 to:
5 (1) casual laborers (as defined in IC 22-3-6-1);
6 (2) farm or agricultural employees;
7 (3) household employees; or
8 (4) a person who enters into an independent contractor agreement
9 with a nonprofit corporation that is recognized as tax exempt
10 under Section 501(c)(3) of the Internal Revenue Code (as defined
11 in IC 6-3-1-11(a)) to perform youth coaching services on a
12 part-time basis; or
13 (5) an individual who is exempt under IC 22-3-5-1.5 from
14 compliance with IC 22-3-2 through IC 22-3-6.
15 IC 22-3-2 through IC 22-3-6 do not apply to the employers or
16 contractors of the persons listed in this subsection.
17 (b) An employer who is exempt under this section from the
2024 IN 264—LS 6545/DI 153 2
1 operation of the compensation provisions of this chapter may at any
2 time waive such exemption and thereby accept the provisions of this
3 chapter by giving notice as provided in subsection (c).
4 (c) The notice of acceptance referred to in subsection (b) shall be
5 given thirty (30) days prior to any accident resulting in injury or death,
6 provided that if any such injury occurred less than thirty (30) days after
7 the date of employment, notice of acceptance given at the time of
8 employment shall be sufficient notice thereof. The notice shall be in
9 writing or print in a substantial form prescribed by the worker's
10 compensation board and shall be given by the employer by posting the
11 same in a conspicuous place in the plant, shop, office, room, or place
12 where the employee is employed, or by serving it personally upon the
13 employee; and shall be given by the employee by sending the same in
14 a registered letter addressed to the employer at the employer's last
15 known residence or place of business, or by giving it personally to the
16 employer, or any of the employer's agents upon whom a summons in
17 civil actions may be served under the laws of the state.
18 (d) A copy of the notice in prescribed form shall also be filed with
19 the worker's compensation board, within five (5) days after its service
20 in such manner upon the employee or employer.
21 SECTION 2. IC 22-3-5-1.5 IS ADDED TO THE INDIANA CODE
22 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
23 1, 2024]: Sec. 1.5. (a) An individual may file with the worker's
24 compensation board, in a form prescribed by the board, an
25 application for a certificate of exemption from compliance with
26 IC 22-3-2 through IC 22-3-6.
27 (b) An application filed under this section must include the
28 following information:
29 (1) The individual's name, address, date of birth, and Social
30 Security number.
31 (2) The name of the religious sect or division of a religious sect
32 to which the individual belongs.
33 (3) A verified affidavit signed by the individual stating that:
34 (A) the individual is a member of the sect or division
35 described in subdivision (2);
36 (B) the individual adheres to the sect's or division's
37 established tenets or teachings that conscientiously oppose
38 the acceptance of public or private insurance benefits as
39 the result of injury, disability, or death, or for medical care
40 for injuries or illnesses, including the benefits from any
41 insurance system established by the federal Social Security
42 Act (42 U.S.C. 301 et seq.);
2024 IN 264—LS 6545/DI 153 3
1 (C) members of the sect or division have a method for
2 sharing the costs of work related medical expenses and loss
3 of income; and
4 (D) the individual knowingly and voluntarily waives the
5 individual's rights to all benefits available to the individual
6 under IC 22-3-2 through IC 22-3-6.
7 (4) A statement by a leader of the religious sect or division of
8 the religious sect described in subdivision (2) that the
9 individual is a member of the sect or division.
10 (c) A copy of an approved Internal Revenue Service Form 4029,
11 Application for Exemption from Social Security and Medicare
12 Taxes and Waiver of Benefits, or a successor form, for the
13 individual must be filed with an application filed under this section.
14 (d) The board shall issue a certificate of exemption not later
15 than forty-five (45) days after the board receives a completed
16 application and the form described in subsection (c).
17 (e) A certificate of exemption issued under this section is
18 effective on the date the certificate is issued and remains in effect
19 until the date provided in subsection (f)(3).
20 (f) If information contained in an affidavit described in
21 subsection (b)(3) is no longer true, the following apply:
22 (1) Not later than seven (7) days after the date on which the
23 change occurs, the individual shall notify the individual's
24 employer in writing of the change.
25 (2) Not later than thirty (30) days after the date on which the
26 employer receives the notice described in subdivision (1), the
27 individual and the individual's employer shall each notify the
28 board in writing of the change.
29 (3) Beginning on the date the individual and the individual's
30 employer send to the board the notice described in subdivision
31 (2), the individual and the individual's employer shall each
32 comply with IC 22-3-2 through IC 22-3-6.
33 (g) The board shall maintain a data base consisting of the
34 certificates issued under this section and on request verify that a
35 certificate is on file.
36 SECTION 3. IC 22-3-6-1, AS AMENDED BY P.L.160-2022,
37 SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
38 JULY 1, 2024]: Sec. 1. In IC 22-3-2 through IC 22-3-6, unless the
39 context otherwise requires:
40 (a) "Employer" includes the state and any political subdivision, any
41 municipal corporation within the state, any individual or the legal
42 representative of a deceased individual, firm, association, limited
2024 IN 264—LS 6545/DI 153 4
1 liability company, limited liability partnership, or corporation or the
2 receiver or trustee of the same, using the services of another for pay. A
3 corporation, limited liability company, or limited liability partnership
4 that controls the activities of another corporation, limited liability
5 company, or limited liability partnership, or a corporation and a limited
6 liability company or a corporation and a limited liability partnership
7 that are commonly owned entities, or the controlled corporation,
8 limited liability company, limited liability partnership, or commonly
9 owned entities, and a parent corporation and its subsidiaries shall each
10 be considered joint employers of the corporation's, the controlled
11 corporation's, the limited liability company's, the limited liability
12 partnership's, the commonly owned entities', the parent's, or the
13 subsidiaries' employees for purposes of IC 22-3-2-6 and IC 22-3-3-31.
14 Both a lessor and a lessee of employees shall each be considered joint
15 employers of the employees provided by the lessor to the lessee for
16 purposes of IC 22-3-2-6 and IC 22-3-3-31. If the employer is insured,
17 the term includes the employer's insurer so far as applicable. However,
18 the inclusion of an employer's insurer within this definition does not
19 allow an employer's insurer to avoid payment for services rendered to
20 an employee with the approval of the employer. The term also includes
21 an employer that provides on-the-job training under the federal School
22 to Work Opportunities Act (20 U.S.C. 6101 et seq.) to the extent set
23 forth in IC 22-3-2-2.5. The term does not include a nonprofit
24 corporation that is recognized as tax exempt under Section 501(c)(3)
25 of the Internal Revenue Code (as defined in IC 6-3-1-11(a)) to the
26 extent the corporation enters into an independent contractor agreement
27 with a person for the performance of youth coaching services on a
28 part-time basis.
29 (b) "Employee" means every person, including a minor, in the
30 service of another, under any contract of hire or apprenticeship, written
31 or implied, except one whose employment is both casual and not in the
32 usual course of the trade, business, occupation, or profession of the
33 employer.
34 (1) An executive officer elected or appointed and empowered in
35 accordance with the charter and bylaws of a corporation, other
36 than a municipal corporation or governmental subdivision or a
37 charitable, religious, educational, or other nonprofit corporation,
38 is an employee of the corporation under IC 22-3-2 through
39 IC 22-3-6. An officer of a corporation who is an employee of the
40 corporation under IC 22-3-2 through IC 22-3-6 may elect not to
41 be an employee of the corporation under IC 22-3-2 through
42 IC 22-3-6. An officer of a corporation who is also an owner of any
2024 IN 264—LS 6545/DI 153 5
1 interest in the corporation may elect not to be an employee of the
2 corporation under IC 22-3-2 through IC 22-3-6. If an officer
3 makes this election, the officer must serve written notice of the
4 election on the corporation's insurance carrier and the board. An
5 officer of a corporation may not be considered to be excluded as
6 an employee under IC 22-3-2 through IC 22-3-6 until the notice
7 is received by the insurance carrier and the board.
8 (2) An executive officer of a municipal corporation or other
9 governmental subdivision or of a charitable, religious,
10 educational, or other nonprofit corporation may, notwithstanding
11 any other provision of IC 22-3-2 through IC 22-3-6, be brought
12 within the coverage of its insurance contract by the corporation by
13 specifically including the executive officer in the contract of
14 insurance. The election to bring the executive officer within the
15 coverage shall continue for the period the contract of insurance is
16 in effect, and during this period, the executive officers thus
17 brought within the coverage of the insurance contract are
18 employees of the corporation under IC 22-3-2 through IC 22-3-6.
19 (3) Any reference to an employee who has been injured, when the
20 employee is dead, also includes the employee's legal
21 representatives, dependents, and other persons to whom
22 compensation may be payable.
23 (4) An owner of a sole proprietorship may elect to include the
24 owner as an employee under IC 22-3-2 through IC 22-3-6 if the
25 owner is actually engaged in the proprietorship business. If the
26 owner makes this election, the owner must serve upon the owner's
27 insurance carrier and upon the board written notice of the
28 election. No owner of a sole proprietorship may be considered an
29 employee under IC 22-3-2 through IC 22-3-6 until the notice has
30 been received. If the owner of a sole proprietorship:
31 (A) is an independent contractor in the construction trades and
32 does not make the election provided under this subdivision,
33 the owner must obtain a certificate of exemption under
34 IC 22-3-2-14.5; or
35 (B) is an independent contractor and does not make the
36 election provided under this subdivision, the owner may obtain
37 a certificate of exemption under IC 22-3-2-14.5.
38 (5) A partner in a partnership may elect to include the partner as
39 an employee under IC 22-3-2 through IC 22-3-6 if the partner is
40 actually engaged in the partnership business. If a partner makes
41 this election, the partner must serve upon the partner's insurance
42 carrier and upon the board written notice of the election. No
2024 IN 264—LS 6545/DI 153 6
1 partner may be considered an employee under IC 22-3-2 through
2 IC 22-3-6 until the notice has been received. If a partner in a
3 partnership:
4 (A) is an independent contractor in the construction trades and
5 does not make the election provided under this subdivision,
6 the partner must obtain a certificate of exemption under
7 IC 22-3-2-14.5; or
8 (B) is an independent contractor and does not make the
9 election provided under this subdivision, the partner may
10 obtain a certificate of exemption under IC 22-3-2-14.5.
11 (6) Real estate professionals are not employees under IC 22-3-2
12 through IC 22-3-6 if:
13 (A) they are licensed real estate agents;
14 (B) substantially all their remuneration is directly related to
15 sales volume and not the number of hours worked; and
16 (C) they have written agreements with real estate brokers
17 stating that they are not to be treated as employees for tax
18 purposes.
19 (7) A person is an independent contractor and not an employee
20 under IC 22-3-2 through IC 22-3-6 if the person is an independent
21 contractor under the guidelines of the United States Internal
22 Revenue Service.
23 (8) An owner-operator that provides a motor vehicle and the
24 services of a driver under a written contract that is subject to
25 IC 8-2.1-24-23, 45 IAC 16-1-13, or 49 CFR 376 to a motor carrier
26 is not an employee of the motor carrier for purposes of IC 22-3-2
27 through IC 22-3-6. The owner-operator may elect to be covered
28 and have the owner-operator's drivers covered under a worker's
29 compensation insurance policy or authorized self-insurance that
30 insures the motor carrier if the owner-operator pays the premiums
31 as requested by the motor carrier. An election by an
32 owner-operator under this subdivision does not terminate the
33 independent contractor status of the owner-operator for any
34 purpose other than the purpose of this subdivision.
35 (9) A member or manager in a limited liability company may elect
36 to include the member or manager as an employee under
37 IC 22-3-2 through IC 22-3-6 if the member or manager is actually
38 engaged in the limited liability company business. If a member or
39 manager makes this election, the member or manager must serve
40 upon the member's or manager's insurance carrier and upon the
41 board written notice of the election. A member or manager may
42 not be considered an employee under IC 22-3-2 through IC 22-3-6
2024 IN 264—LS 6545/DI 153 7
1 until the notice has been received.
2 (10) An unpaid participant under the federal School to Work
3 Opportunities Act (20 U.S.C. 6101 et seq.) is an employee to the
4 extent set forth in IC 22-3-2-2.5.
5 (11) A person who enters into an independent contractor
6 agreement with a nonprofit corporation that is recognized as tax
7 exempt under Section 501(c)(3) of the Internal Revenue Code (as
8 defined in IC 6-3-1-11(a)) to perform youth coaching services on
9 a part-time basis is not an employee for purposes of IC 22-3-2
10 through IC 22-3-6.
11 (12) An individual who is not an employee of the state or a
12 political subdivision is considered to be a temporary employee of
13 the state for purposes of IC 22-3-2 through IC 22-3-6 while
14 serving as a member of a mobile support unit on duty for training,
15 an exercise, or a response, as set forth in IC 10-14-3-19(c)(2)(B).
16 (13) A driver providing drive away operations is an independent
17 contractor and not an employee when:
18 (A) the vehicle being driven is the commodity being delivered;
19 and
20 (B) the driver has entered into an agreement with the party
21 arranging for the transportation that specifies the driver is an
22 independent contractor and not an employee.
23 (14) An individual who is a member of a religious sect or a
24 division of a religious sect and holds an effective certificate of
25 exemption from compliance under IC 22-3-5-1.5 is not
26 considered an employee for purposes of IC 22-3-2 through
27 IC 22-3-6.
28 (c) "Minor" means an individual who has not reached seventeen
29 (17) years of age.
30 (1) Unless otherwise provided in this subsection, a minor
31 employee shall be considered as being of full age for all purposes
32 of IC 22-3-2 through IC 22-3-6.
33 (2) If the employee is a minor who, at the time of the accident, is
34 employed, required, suffered, or permitted to work in violation of
35 IC 22-2-18-40 (before its expiration on June 30, 2021) and
36 IC 22-2-18.1-23, the amount of compensation and death benefits,
37 as provided in IC 22-3-2 through IC 22-3-6, shall be double the
38 amount which would otherwise be recoverable. The insurance
39 carrier shall be liable on its policy for one-half (1/2) of the
40 compensation or benefits that may be payable on account of the
41 injury or death of the minor, and the employer shall be liable for
42 the other one-half (1/2) of the compensation or benefits. If the
2024 IN 264—LS 6545/DI 153 8
1 employee is a minor who is not less than sixteen (16) years of age
2 and who has not reached seventeen (17) years of age and who at
3 the time of the accident is employed, suffered, or permitted to
4 work at any occupation which is not prohibited by law, this
5 subdivision does not apply.
6 (3) A minor employee who, at the time of the accident, is a
7 student performing services for an employer as part of an
8 approved program under IC 20-37-2-7 shall be considered a
9 full-time employee for the purpose of computing compensation
10 for permanent impairment under IC 22-3-3-10. The average
11 weekly wages for such a student shall be calculated as provided
12 in subsection (d)(4).
13 (4) The rights and remedies granted in this subsection to a minor
14 under IC 22-3-2 through IC 22-3-6 on account of personal injury
15 or death by accident shall exclude all rights and remedies of the
16 minor, the minor's parents, or the minor's personal
17 representatives, dependents, or next of kin at common law,
18 statutory or otherwise, on account of the injury or death. This
19 subsection does not apply to minors who have reached seventeen
20 (17) years of age.
21 (d) "Average weekly wages" means the earnings of the injured
22 employee in the employment in which the employee was working at the
23 time of the injury during the period of fifty-two (52) weeks
24 immediately preceding the date of injury, divided by fifty-two (52),
25 except as follows:
26 (1) If the injured employee lost seven (7) or more calendar days
27 during this period, although not in the same week, then the
28 earnings for the remainder of the fifty-two (52) weeks shall be
29 divided by the number of weeks and parts thereof remaining after
30 the time lost has been deducted.
31 (2) Where the employment prior to the injury extended over a
32 period of less than fifty-two (52) weeks, the method of dividing
33 the earnings during that period by the number of weeks and parts
34 thereof during which the employee earned wages shall be
35 followed, if results just and fair to both parties will be obtained.
36 Where by reason of the shortness of the time during which the
37 employee has been in the employment of the employee's employer
38 or of the casual nature or terms of the employment it is
39 impracticable to compute the average weekly wages, as defined
40 in this subsection, regard shall be had to the average weekly
41 amount which during the fifty-two (52) weeks previous to the
42 injury was being earned by a person in the same grade employed
2024 IN 264—LS 6545/DI 153 9
1 at the same work by the same employer or, if there is no person so
2 employed, by a person in the same grade employed in the same
3 class of employment in the same district.
4 (3) Wherever allowances of any character made to an employee
5 in lieu of wages are a specified part of the wage contract, they
6 shall be deemed a part of the employee's earnings.
7 (4) In computing the average weekly wages to be used in
8 calculating an award for permanent impairment under
9 IC 22-3-3-10 for a student employee in an approved training
10 program under IC 20-37-2-7, the following formula shall be used.
11 Calculate the product of:
12 (A) the student employee's hourly wage rate; multiplied by
13 (B) forty (40) hours.
14 The result obtained is the amount of the average weekly wages for
15 the student employee.
16 (e) "Injury" and "personal injury" mean only injury by accident
17 arising out of and in the course of the employment and do not include
18 a disease in any form except as it results from the injury.
19 (f) "Billing review service" refers to a person or an entity that
20 reviews a medical service provider's bills or statements for the purpose
21 of determining pecuniary liability. The term includes an employer's
22 worker's compensation insurance carrier if the insurance carrier
23 performs such a review.
24 (g) "Billing review standard" means the data used by a billing
25 review service to determine pecuniary liability.
26 (h) "Community" means a geographic service area based on ZIP
27 code districts defined by the United States Postal Service according to
28 the following groupings:
29 (1) The geographic service area served by ZIP codes with the first
30 three (3) digits 463 and 464.
31 (2) The geographic service area served by ZIP codes with the first
32 three (3) digits 465 and 466.
33 (3) The geographic service area served by ZIP codes with the first
34 three (3) digits 467 and 468.
35 (4) The geographic service area served by ZIP codes with the first
36 three (3) digits 469 and 479.
37 (5) The geographic service area served by ZIP codes with the first
38 three (3) digits 460, 461 (except 46107), and 473.
39 (6) The geographic service area served by the 46107 ZIP code and
40 ZIP codes with the first three (3) digits 462.
41 (7) The geographic service area served by ZIP codes with the first
42 three (3) digits 470, 471, 472, 474, and 478.
2024 IN 264—LS 6545/DI 153 10
1 (8) The geographic service area served by ZIP codes with the first
2 three (3) digits 475, 476, and 477.
3 (i) "Medical service provider" refers to a person or an entity that
4 provides services or products to an employee under IC 22-3-2 through
5 IC 22-3-6. Except as otherwise provided in IC 22-3-2 through
6 IC 22-3-6, the term includes a medical service facility.
7 (j) "Medical service facility" means any of the following that
8 provides a service or product under IC 22-3-2 through IC 22-3-6 and
9 uses the CMS 1450 (UB-04) form or the CMS 1500 (HCFA-1500)
10 form for Medicare reimbursement:
11 (1) An ambulatory outpatient surgical center (as defined in
12 IC 16-18-2-14).
13 (2) A hospital (as defined in IC 16-18-2-179).
14 (3) A hospital based health facility (as defined in
15 IC 16-18-2-180).
16 (4) A medical center (as defined in IC 16-18-2-223.4).
17 (k) "Pecuniary liability" means the responsibility of an employer or
18 the employer's insurance carrier for the payment of the charges for each
19 specific service or product for human medical treatment provided
20 under IC 22-3-2 through IC 22-3-6, as follows:
21 (1) This subdivision applies before July 1, 2014, to all medical
22 service providers, and after June 30, 2014, to a medical service
23 provider that is not a medical service facility. Payment of the
24 charges in a defined community, equal to or less than the charges
25 made by medical service providers at the eightieth percentile in
26 the same community for like services or products.
27 (2) Payment of the charges in a reasonable amount, which is
28 established by payment of one (1) of the following:
29 (A) The amount negotiated at any time between the medical
30 service facility and any of the following, if an amount has been
31 negotiated:
32 (i) The employer.
33 (ii) The employer's insurance carrier.
34 (iii) A billing review service on behalf of a person described
35 in item (i) or (ii).
36 (iv) A direct provider network that has contracted with a
37 person described in item (i) or (ii).
38 (B) Two hundred percent (200%) of the amount that would be
39 paid to the medical service facility on the same date for the
40 same service or product under the medical service facility's
41 Medicare reimbursement rate, if, after conducting the
42 negotiations described in clause (A), an agreement has not
2024 IN 264—LS 6545/DI 153 11
1 been reached.
2 (l) "Service or product" or "services and products" refers to medical,
3 hospital, surgical, or nursing service, treatment, and supplies provided
4 under IC 22-3-2 through IC 22-3-6.
5 SECTION 4. IC 22-3-7-9, AS AMENDED BY P.L.160-2022,
6 SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
7 JULY 1, 2024]: Sec. 9. (a) As used in this chapter, "employer" includes
8 the state and any political subdivision, any municipal corporation
9 within the state, any individual or the legal representative of a deceased
10 individual, firm, association, limited liability company, limited liability
11 partnership, or corporation or the receiver or trustee of the same, using
12 the services of another for pay. A corporation, limited liability
13 company, or limited liability partnership that controls the activities of
14 another corporation, limited liability company, or limited liability
15 partnership, or a corporation and a limited liability company or a
16 corporation and a limited liability partnership that are commonly
17 owned entities, or the controlled corporation, limited liability company,
18 limited liability partnership, or commonly owned entities, and a parent
19 corporation and its subsidiaries shall each be considered joint
20 employers of the corporation's, the controlled corporation's, the limited
21 liability company's, the limited liability partnership's, the commonly
22 owned entities', the parent's, or the subsidiaries' employees for purposes
23 of sections 6 and 33 of this chapter. Both a lessor and a lessee of
24 employees shall each be considered joint employers of the employees
25 provided by the lessor to the lessee for purposes of sections 6 and 33
26 of this chapter. The term also includes an employer that provides
27 on-the-job training under the federal School to Work Opportunities Act
28 (20 U.S.C. 6101 et seq.) to the extent set forth under section 2.5 of this
29 chapter. If the employer is insured, the term includes the employer's
30 insurer so far as applicable. However, the inclusion of an employer's
31 insurer within this definition does not allow an employer's insurer to
32 avoid payment for services rendered to an employee with the approval
33 of the employer. The term does not include a nonprofit corporation that
34 is recognized as tax exempt under Section 501(c)(3) of the Internal
35 Revenue Code (as defined in IC 6-3-1-11(a)) to the extent the
36 corporation enters into an independent contractor agreement with a
37 person for the performance of youth coaching services on a part-time
38 basis.
39 (b) As used in this chapter, "employee" means every person,
40 including a minor, in the service of another, under any contract of hire
41 or apprenticeship written or implied, except one whose employment is
42 both casual and not in the usual course of the trade, business,
2024 IN 264—LS 6545/DI 153 12
1 occupation, or profession of the employer. For purposes of this chapter
2 the following apply:
3 (1) Any reference to an employee who has suffered disablement,
4 when the employee is dead, also includes the employee's legal
5 representative, dependents, and other persons to whom
6 compensation may be payable.
7 (2) An owner of a sole proprietorship may elect to include the
8 owner as an employee under this chapter if the owner is actually
9 engaged in the proprietorship business. If the owner makes this
10 election, the owner must serve upon the owner's insurance carrier
11 and upon the board written notice of the election. No owner of a
12 sole proprietorship may be considered an employee under this
13 chapter unless the notice has been received. If the owner of a sole
14 proprietorship:
15 (A) is an independent contractor in the construction trades and
16 does not make the election provided under this subdivision,
17 the owner must obtain a certificate of exemption under section
18 34.5 of this chapter; or
19 (B) is an independent contractor and does not make the
20 election provided under this subdivision, the owner may obtain
21 a certificate of exemption under section 34.5 of this chapter.
22 (3) A partner in a partnership may elect to include the partner as
23 an employee under this chapter if the partner is actually engaged
24 in the partnership business. If a partner makes this election, the
25 partner must serve upon the partner's insurance carrier and upon
26 the board written notice of the election. No partner may be
27 considered an employee under this chapter until the notice has
28 been received. If a partner in a partnership:
29 (A) is an independent contractor in the construction trades and
30 does not make the election provided under this subdivision,
31 the partner must obtain a certificate of exemption under
32 section 34.5 of this chapter; or
33 (B) is an independent contractor and does not make the
34 election provided under this subdivision, the partner may
35 obtain a certificate of exemption under section 34.5 of this
36 chapter.
37 (4) Real estate professionals are not employees under this chapter
38 if:
39 (A) they are licensed real estate agents;
40 (B) substantially all their remuneration is directly related to
41 sales volume and not the number of hours worked; and
42 (C) they have written agreements with real estate brokers
2024 IN 264—LS 6545/DI 153 13
1 stating that they are not to be treated as employees for tax
2 purposes.
3 (5) A person is an independent contractor in the construction
4 trades and not an employee under this chapter if the person is an
5 independent contractor under the guidelines of the United States
6 Internal Revenue Service.
7 (6) An owner-operator that provides a motor vehicle and the
8 services of a driver under a written contract that is subject to
9 IC 8-2.1-24-23, 45 IAC 16-1-13, or 49 CFR 376, to a motor
10 carrier is not an employee of the motor carrier for purposes of this
11 chapter. The owner-operator may elect to be covered and have the
12 owner-operator's drivers covered under a worker's compensation
13 insurance policy or authorized self-insurance that insures the
14 motor carrier if the owner-operator pays the premiums as
15 requested by the motor carrier. An election by an owner-operator
16 under this subdivision does not terminate the independent
17 contractor status of the owner-operator for any purpose other than
18 the purpose of this subdivision.
19 (7) An unpaid participant under the federal School to Work
20 Opportunities Act (20 U.S.C. 6101 et seq.) is an employee to the
21 extent set forth under section 2.5 of this chapter.
22 (8) A person who enters into an independent contractor agreement
23 with a nonprofit corporation that is recognized as tax exempt
24 under Section 501(c)(3) of the Internal Revenue Code (as defined
25 in IC 6-3-1-11(a)) to perform youth coaching services on a
26 part-time basis is not an employee for purposes of this chapter.
27 (9) An officer of a corporation who is an employee of the
28 corporation under this chapter may elect not to be an employee of
29 the corporation under this chapter. An officer of a corporation
30 who is also an owner of any interest in the corporation may elect
31 not to be an employee of the corporation under this chapter. If an
32 officer makes this election, the officer must serve written notice
33 of the election on the corporation's insurance carrier and the
34 board. An officer of a corporation may not be considered to be
35 excluded as an employee under this chapter until the notice is
36 received by the insurance carrier and the board.
37 (10) An individual who is not an employee of the state or a
38 political subdivision is considered to be a temporary employee of
39 the state for purposes of this chapter while serving as a member
40 of a mobile support unit on duty for training, an exercise, or a
41 response, as set forth in IC 10-14-3-19(c)(2)(B).
42 (11) An individual who is a member of a religious sect or a
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1 division of a religious sect and holds an effective certificate of
2 exemption from compliance under section 34.2 of this chapter
3 is not considered an employee for purposes of this chapter.
4 (c) As used in this chapter, "minor" means an individual who has
5 not reached seventeen (17) years of age. A minor employee shall be
6 considered as being of full age for all purposes of this chapter.
7 However, if the employee is a minor who, at the time of the last
8 exposure, is employed, required, suffered, or permitted to work in
9 violation of the employment of minors laws of this state, the amount of
10 compensation and death benefits, as provided in this chapter, shall be
11 double the amount which would otherwise be recoverable. The
12 insurance carrier shall be liable on its policy for one-half (1/2) of the
13 compensation or benefits that may be payable on account of the
14 disability or death of the minor, and the employer shall be wholly liable
15 for the other one-half (1/2) of the compensation or benefits. If the
16 employee is a minor who is not less than sixteen (16) years of age and
17 who has not reached seventeen (17) years of age, and who at the time
18 of the last exposure is employed, suffered, or permitted to work at any
19 occupation which is not prohibited by law, the provisions of this
20 subsection prescribing double the amount otherwise recoverable do not
21 apply. The rights and remedies granted to a minor under this chapter on
22 account of disease shall exclude all rights and remedies of the minor,
23 the minor's parents, the minor's personal representatives, dependents,
24 or next of kin at common law, statutory or otherwise, on account of any
25 disease.
26 (d) This chapter does not apply to:
27 (1) casual laborers as defined in subsection (b); nor to
28 (2) farm or agricultural employees; nor to
29 (3) household employees; nor to
30 (4) railroad employees engaged in train service as engineers,
31 firemen, conductors, brakemen, flagmen, baggagemen, or
32 foremen in charge of yard engines and helpers assigned thereto;
33 nor to their
34 (5) an individual who is exempt under section 34.2 of this
35 chapter from compliance with this chapter; or
36 (6) employers with respect to these of employees listed in
37 subdivisions (1) through (5).
38 Also, this chapter does not apply to employees or their employers with
39 respect to employments in which the laws of the United States provide
40 for compensation or liability for injury to the health, disability, or death
41 by reason of diseases suffered by these employees.
42 (e) As used in this chapter, "disablement" means the event of
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1 becoming disabled from earning full wages at the work in which the
2 employee was engaged when last exposed to the hazards of the
3 occupational disease by the employer from whom the employee claims
4 compensation or equal wages in other suitable employment, and
5 "disability" means the state of being so incapacitated.
6 (f) For the purposes of this chapter, no compensation shall be
7 payable for or on account of any occupational diseases unless
8 disablement, as defined in subsection (e), occurs within two (2) years
9 after the last day of the last exposure to the hazards of the disease
10 except for the following:
11 (1) In all cases of occupational diseases caused by the inhalation
12 of silica dust or coal dust, no compensation shall be payable
13 unless disablement, as defined in subsection (e), occurs within
14 three (3) years after the last day of the last exposure to the hazards
15 of the disease.
16 (2) In all cases of occupational disease caused by the exposure to
17 radiation, no compensation shall be payable unless disablement,
18 as defined in subsection (e), occurs within two (2) years from the
19 date on which the employee had knowledge of the nature of the
20 employee's occupational disease or, by exercise of reasonable
21 diligence, should have known of the existence of such disease and
22 its causal relationship to the employee's employment.
23 (3) In all cases of occupational diseases caused by the inhalation
24 of asbestos dust, no compensation shall be payable unless
25 disablement, as defined in subsection (e), occurs within three (3)
26 years after the last day of the last exposure to the hazards of the
27 disease if the last day of the last exposure was before July 1, 1985.
28 (4) In all cases of occupational disease caused by the inhalation
29 of asbestos dust in which the last date of the last exposure occurs
30 on or after July 1, 1985, and before July 1, 1988, no compensation
31 shall be payable unless disablement, as defined in subsection (e),
32 occurs within twenty (20) years after the last day of the last
33 exposure.
34 (5) In all cases of occupational disease caused by the inhalation
35 of asbestos dust in which the last date of the last exposure occurs
36 on or after July 1, 1988, no compensation shall be payable unless
37 disablement (as defined in subsection (e)) occurs within
38 thirty-five (35) years after the last day of the last exposure.
39 (g) For the purposes of this chapter, no compensation shall be
40 payable for or on account of death resulting from any occupational
41 disease unless death occurs within two (2) years after the date of
42 disablement. However, this subsection does not bar compensation for
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1 death:
2 (1) where death occurs during the pendency of a claim filed by an
3 employee within two (2) years after the date of disablement and
4 which claim has not resulted in a decision or has resulted in a
5 decision which is in process of review or appeal; or
6 (2) where, by agreement filed or decision rendered, a
7 compensable period of disability has been fixed and death occurs
8 within two (2) years after the end of such fixed period, but in no
9 event later than three hundred (300) weeks after the date of
10 disablement.
11 (h) As used in this chapter, "billing review service" refers to a
12 person or an entity that reviews a medical service provider's bills or
13 statements for the purpose of determining pecuniary liability. The term
14 includes an employer's worker's compensation insurance carrier if the
15 insurance carrier performs such a review.
16 (i) As used in this chapter, "billing review standard" means the data
17 used by a billing review service to determine pecuniary liability.
18 (j) As used in this chapter, "community" means a geographic service
19 area based on ZIP code districts defined by the United States Postal
20 Service according to the following groupings:
21 (1) The geographic service area served by ZIP codes with the first
22 three (3) digits 463 and 464.
23 (2) The geographic service area served by ZIP codes with the first
24 three (3) digits 465 and 466.
25 (3) The geographic service area served by ZIP codes with the first
26 three (3) digits 467 and 468.
27 (4) The geographic service area served by ZIP codes with the first
28 three (3) digits 469 and 479.
29 (5) The geographic service area served by ZIP codes with the first
30 three (3) digits 460, 461 (except 46107), and 473.
31 (6) The geographic service area served by the 46107 ZIP code and
32 ZIP codes with the first three (3) digits 462.
33 (7) The geographic service area served by ZIP codes with the first
34 three (3) digits 470, 471, 472, 474, and 478.
35 (8) The geographic service area served by ZIP codes with the first
36 three (3) digits 475, 476, and 477.
37 (k) As used in this chapter, "medical service provider" refers to a
38 person or an entity that provides services or products to an employee
39 under this chapter. Except as otherwise provided in this chapter, the
40 term includes a medical service facility.
41 (l) As used in this chapter, "medical service facility" means any of
42 the following that provides a service or product under this chapter and
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1 uses the CMS 1450 (UB-04) form or the CMS 1500 (HCFA-1500)
2 form for Medicare reimbursement:
3 (1) An ambulatory outpatient surgical center (as defined in
4 IC 16-18-2-14).
5 (2) A hospital (as defined in IC 16-18-2-179).
6 (3) A hospital based health facility (as defined in
7 IC 16-18-2-180).
8 (4) A medical center (as defined in IC 16-18-2-223.4).
9 (m) As used in this chapter, "pecuniary liability" means the
10 responsibility of an employer or the employer's insurance carrier for the
11 payment of the charges for each specific service or product for human
12 medical treatment provided under this chapter as follows:
13 (1) This subdivision applies before July 1, 2014, to all medical
14 service providers, and after June 30, 2014, to a medical service
15 provider that is not a medical service facility. Payment of the
16 charges in a defined community, equal to or less than the charges
17 made by medical service providers at the eightieth percentile in
18 the same community for like services or products.
19 (2) Payment of the charges in a reasonable amount, which is
20 established by payment of one (1) of the following:
21 (A) The amount negotiated at any time between the medical
22 service facility and any of the following, if an amount has been
23 negotiated:
24 (i) The employer.
25 (ii) The employer's insurance carrier.
26 (iii) A billing review service on behalf of a person described
27 in item (i) or (ii).
28 (iv) A direct provider network that has contracted with a
29 person described in item (i) or (ii).
30 (B) Two hundred percent (200%) of the amount that would be
31 paid to the medical service facility on the same date for the
32 same service or product under the medical service facility's
33 Medicare reimbursement rate, if, after conducting the
34 negotiations described in clause (A), an agreement has not
35 been reached.
36 (n) "Service or product" or "services and products" refers to
37 medical, hospital, surgical, or nursing service, treatment, and supplies
38 provided under this chapter.
39 SECTION 5. IC 22-3-7-34.2 IS ADDED TO THE INDIANA CODE
40 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
41 1, 2024]: Sec. 34.2. (a) An individual may file with the worker's
42 compensation board, in a form prescribed by the board, an
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1 application for a certificate of exemption from compliance with
2 this chapter.
3 (b) An application filed under this section must include the
4 following information:
5 (1) The individual's name, address, date of birth, and Social
6 Security number.
7 (2) The name of the religious sect or division of a religious sect
8 to which the individual belongs.
9 (3) A verified affidavit signed by the individual stating that:
10 (A) the individual is a member of the sect or division
11 described in subdivision (2);
12 (B) the individual adheres to the sect's or division's
13 established tenets or teachings that conscientiously oppose
14 the acceptance of public or private insurance benefits as
15 the result of injury, disability, or death, or for medical care
16 for injuries or illnesses, including the benefits from any
17 insurance system established by the federal Social Security
18 Act (42 U.S.C. 301 et seq.);
19 (C) members of the sect or division have a method for
20 sharing the costs of work related medical expenses and loss
21 of income; and
22 (D) the individual knowingly and voluntarily waives the
23 individual's rights to all benefits available to the individual
24 under this chapter.
25 (4) A statement by a leader of the religious sect or division of
26 the religious sect described in subdivision (2) that the
27 individual is a member of the sect or division.
28 (c) A copy of an approved Internal Revenue Service Form 4029,
29 Application for Exemption from Social Security and Medicare
30 Taxes and Waiver of Benefits, or a successor form, for the
31 individual must be filed with an application filed under this section.
32 (d) The board shall issue a certificate of exemption not later
33 than forty-five (45) days after the board receives a completed
34 application and the form described in subsection (c).
35 (e) A certificate of exemption issued under this section is
36 effective on the date the certificate is issued and remains in effect
37 until the date provided in subsection (f)(3).
38 (f) If information contained in an affidavit described in
39 subsection (b)(3) is no longer true, the following apply:
40 (1) Not later than seven (7) days after the date on which the
41 change occurs, the individual shall notify the individual's
42 employer in writing of the change.
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1 (2) Not later than thirty (30) days after the date on which the
2 employer receives the notice described in subdivision (1), the
3 individual and the individual's employer shall each notify the
4 board in writing of the change.
5 (3) Beginning on the date the individual and the individual's
6 employer send to the board the notice described in subdivision
7 (2), the individual and the individual's employer shall each
8 comply with this chapter.
9 (g) The board shall maintain a data base consisting of the
10 certificates issued under this section and on request verify that a
11 certificate is on file.
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