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 6545 NOTE PREPARED: Jan 29, 2024
BILL NUMBER: SB 264 BILL AMENDED: Jan 25, 2024
SUBJECT: Religious Exemption from Worker's Compensation.
FIRST AUTHOR: Sen. Bassler BILL STATUS: 2
nd
Reading - 1
st
House
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
XDEDICATED
XFEDERAL
Summary of Legislation: The bill 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). It 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. It also makes conforming changes.
Effective Date: July 1, 2024.
Explanation of State Expenditures: Worker's Compensation Board: The employee seeking an exemption
from worker’s compensation based on membership in a religious sect must meet certain requirements and
obtain a certificate of exemption from the board. This is within the board’s routine functions and should be
able to be implemented with current resources.
All Agencies as Employers: The proposal has the potential to reduce state expenditures for workers’
compensation payments for state employees; however, the impact is anticipated to be minimal. The state
provides a worker’s compensation program for all employees as required by IC 22-3-1-1 through 22-3-12-15.
To the extent any individual state employee receives a certificate of exemption based on membership in a
certain religious sect, the state may receive an exemption for the provision of worker's compensation and
occupational diseases coverage and thus provide coverage to fewer employees. [This bill has the potential
to impact all agencies as employers, thus impacting all funds that provide operating funds to agency staff.]
Additional Information - The Alliance of Health Care Sharing Ministries works with seven out of nine health
SB 264 1 care sharing ministries that have a large, nationwide open membership. These ministries provide financial
and other supportive services to members, yet they are not insurance. If a member has insurance or worker’s
compensation coverage that is responsible for coverage, that insurance would pay first. Expenses beyond that
are eligible to be shared based on the guidelines of each ministry plan. In 2021, the Alliance reports that
31,839 individuals in Indiana are members of some of the largest health care sharing ministries. It is unknown
how many state and local employees are members of these ministries, and/or would seek this exemption.
Explanation of State Revenues:
Explanation of Local Expenditures: All Units as Employers: To the extent any individual employee of a
local unit receives a certificate of exemption based on membership in a certain religious sect, that unit may
receive an exemption for the provision of worker's compensation and occupational diseases coverage and
thus provide coverage to fewer employees. The impact is anticipated to be minimal.
Explanation of Local Revenues:
State Agencies Affected: Worker’s Compensation Board; All agencies as employers.
Local Agencies Affected: All units as employers.
Information Sources: http://ahcsm.org/.
Fiscal Analyst: Camille Tesch, 317-232-5293.
SB 264 2