LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 7159 NOTE PREPARED: Feb 3, 2025
BILL NUMBER: HB 1214 BILL AMENDED:
SUBJECT: Worker's Compensation.
FIRST AUTHOR: Rep. Lehman BILL STATUS: 2
nd
Reading - 1
st
House
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
XDEDICATED
XFEDERAL
Summary of Legislation: The bill provides that, after June 30, 2025, a party may not prohibit an employer
from bidding on a contract solely on the basis of the employer's experience rating. It requires insurance
companies providing worker's compensation insurance to revise an insured party's prior experience ratings
in a specified manner after the insurance company makes a successful subrogation claim.
Effective Date: July 1, 2025.
Explanation of State Expenditures: All Agencies as Employers/Contractees: The bill prevents a party
(after June 30, 2025) from prohibiting an employer from bidding on a contract solely on the basis of the
employer’s experience rating for workers’ compensation, but it 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.]
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:
HB 1214 1 Explanation of Local Expenditures: All Units as Employers/Contractees: The bill prevents a party (after
June 30, 2025) from prohibiting an employer from bidding on a contract solely on the basis of the
employer’s experience rating for workers’ compensation 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 1214 2