LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 6459 NOTE PREPARED: Apr 17, 2025
BILL NUMBER: HB 1111 BILL AMENDED: Jan 27, 2025
SUBJECT: Indiana National Guard.
FIRST AUTHOR: Rep. Bartels BILL STATUS: Enrolled
FIRST SPONSOR: Sen. Baldwin
FUNDS AFFECTED:XGENERAL IMPACT: State
XDEDICATED
FEDERAL
Summary of Legislation: This bill increases, from $8,800 to $20,000, the amount that shall be paid by the
state if a member of the Indiana National Guard dies in the active service of the state. It provides that a
spouse or dependent of a member of the Indiana National Guard is eligible for a state employee death benefit
if the member dies while serving on State Active Duty (SAD).
The bill provides that members of the Indiana National Guard, while serving on SAD, shall be considered
state employees for purposes of receiving worker's compensation.
The bill provides that the Adjutant General may procure a medical insurance plan for members of the Indiana
National Guard who are ordered to SAD.
The bill adds awards and decorations that may be awarded by the Indiana National Guard.
The bill provides that a scholarship applicant of the National Guard Tuition Supplement Program (NGTSP)
may use the scholarship for a credential-certifying program, licensing program, trade certification program,
or apprenticeship program for an in-demand occupation as identified by the Adjutant General and the
Department of Workforce Development, in consultation with the Commission for Higher Education. It also
provides that if a scholarship applicant of the NGTSP receives a Twenty-first Century Scholars (21C)
Program scholarship, the scholarship applicant may use a NGTSP scholarship awarded to pay for qualified
program and educational expenses approved by the Commission for Higher Education and room and board
for two years.
The bill makes technical corrections.
Effective Date: July 1, 2025.
Explanation of State Expenditures: National Guard Tuition Supplement Program: This bill expands
programs to which NGTSP scholarships may be applied to include in-demand apprenticeship programs as
determined by the Department of Workforce Development. This provision is likely to increase demand for
HB 1111 1 NGTSP scholarships. Approximately 10% of NGTSP utilization is at two-year institutions. Assuming similar
utilization for apprenticeship programs, expenditures could increase or shift up to $400,000 per year under
this provision. Total expenditures for the NGTSP are capped by the amount of funds appropriated in the
biennial budget plus any reserve balance in the fund. NGTSP received appropriations of $3,676,240 annually
for the current biennium.
The bill also allows an NGTSP applicant that is eligible for the 21C scholarship to apply NGTSP funds to
qualified program and educational expenses and room and board expenses of up to $5,000 per year for two
years. This is likely to increase demand for NGTSP scholarships. Based on information regarding applicants
who are eligible for both programs, this provision is likely to increase or shift NGTSP expenditures by
$250,000 in the first year and $500,000 annually at full utilization as long as funds are available.
Health Insurance: This bill provides that the Adjutant General (TAG) may procure a medical insurance plan
for personnel ordered to SAD. All National Guard members who are not federal employees are eligible for
Tricare Reserve Select, which costs $53.80 per month for individuals and $274.48 per month for
sevicemembers and their families. Current law authorizes the TAG to provide an allowance to cover health
insurance premiums, but not to procure the insurance directly. Actual costs associated with implementing
this policy will depend on whether the TAG exercises the authority to procure insurance, the costs of that
plan, and whether those costs are more or less than the allowance that might otherwise be paid under current
law.
Worker’s Compensation: This bill provides that National Guard personnel acting under state control are
considered state employees for the purposes of receiving worker’s compensation payments. It removes
language that specifies claim filing, evaluation and board procedures specific to the Indiana National Guard.
Because claims filed under current law were already being paid from worker’s compensation funds (which
are administered by the Worker’s Compensation Board), it is unlikely that these changes will result in
additional expenditures by the state, but it does reduce the workload for the National Guard associated with
all future claims.
State Employee Death Benefits: The bill expands coverage for the survivors of a member of the Indiana
National Guard killed while on SAD orders to receive the $100,000 state employee death benefit. This
benefit is paid from the Special Death Benefit Fund. The Indiana National Guard has no record of a member
being killed while on SAD. Expenditures due to this provision are likely to be minimal.
National Guard Awards and Decorations: This bill expands the criteria for which a member of the Indiana
National Guard may be awarded the Indiana Distinguished Service Cross and creates several other state
awards. The total direct cost to implement these changes is expected to be under $10,000 over the biennium,
with future costs under $5,000 per biennium. Implementation will also create a workload increase for the
Indiana National Guard units that submit personnel for these awards, but this is within the routine function
of these organizations and should be implemented within existing resources.
Explanation of State Revenues:
Explanation of Local Expenditures:
Explanation of Local Revenues:
State Agencies Affected: Indiana National Guard; Worker’s Compensation Board.
HB 1111 2 Local Agencies Affected:
Information Sources: Dan Gilbert, Indiana National Guard; https://tricare.mil/FAQs/TRS/TRS_How_Much.
Fiscal Analyst: Alexander Raggio, 317-234-9485.
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