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 6811 NOTE PREPARED: Feb 16, 2021
BILL NUMBER: SB 220 BILL AMENDED: Feb 11, 2021
SUBJECT: Worker's Compensation.
FIRST AUTHOR: Sen. Tallian BILL STATUS: As Passed Senate
FIRST SPONSOR: Rep. Lehman
FUNDS AFFECTED: X GENERAL IMPACT: State & Local
X DEDICATED
X FEDERAL
Summary of Legislation: The bill provides that if, after the occurrence of an accident, compensation is paid
for temporary total disability or temporary partial disability, then the two year limitation period to file an
application for adjustment of claim begins to run on the last date for which such compensation was paid. It
increases benefits for injuries and disablements by 2% each year for three years, beginning on July 1, 2021.
It also makes conforming amendments.
Effective Date: Upon passage; July 1, 2021.
Explanation of State Expenditures: Workers’ Compensation Payments: The bill would increase total
workers’ compensation payments to state employees by an estimated $18,000 in FY 2022 and $35,000 in FY
2023. Of this total, approximately two-thirds would come from dedicated and federal funds, and
approximately one-third would be state General Fund expenditures. The proposal increases the maximum
weekly wage used to calculate wage replacement benefits, and it increases payments for permanent partial
impairment (PPI). These provisions will impact the state as an employer and provider of worker’s
compensation benefits. [This bill has the potential to impact all agencies as employers, thus impacting all
funds that provide operating funds to agency staff.]
The rate increase for PPI is estimated to increase state expenditures for worker’s compensation by
approximately $10,000 in FY 2022 and by $20,000 in FY 2023 based on state payments to employees for
PPI in FY 2020 of $488,282. The annual increase in wage replacement is estimated to increase the cost of
wage replacements for state employees by $8,000 in FY 2022 and by $15,000 in FY 2023 based on FY 2020
wage replacement payments for state employees and state staffing data. The benefit increases for wage
replacement will only impact individuals with wages above the current maximum.
SB 220 1
Additional Information - Based on the October 2020 state staffing report, 22% of state employees earn more
than the maximum weekly wage of $1,170 and would receive an increased wage replacement under this
proposal if they were injured on the job and eligible to receive workers’ compensation. The proposed changes
to the statute of limitations regarding worker’s compensation claims represent the current practice of the
Worker’s Compensation Board.
Degrees of Permanent Partial 1-10 11-35 11-35 50-100
Impairment (PPI)
Current $1,750 $1,952 $3,186 $4,060
FY 2022 $1,785 $1,991 $3,250 $4,141
FY 2023 $1,821 $2,031 $3,315 $4,224
FY 2024 $1,857 $2,072 $3,381 $4,308
Maximum Weekly Wage Replacement: 500 Weeks Maximum
Wage 2/3 Weekly Wages Total Benefit
Current $1,170 $780 $390,000
FY 2022 $1,193 $795 $398,000
FY 2023 $1,217 $811 $406,000
FY 2024 $1,241 $827 $414,000
Explanation of State Revenues:
Explanation of Local Expenditures: See Explanation of State Expenditures. The bill will impact local units
as employers.
Explanation of Local Revenues:
State Agencies Affected: All agencies as employers.
Local Agencies Affected: All units as employers.
Information Sources: JWF Specialty, state staffing data.
Fiscal Analyst: Camille Tesch, 317-232-5293.
SB 220 2


Statutes affected:
1. Introduced Senate Bill (S): 22-3-3-10, 22-3-3-22, 22-3-7-16
2. Senate Bill (S): 22-3-3-10, 22-3-3-22, 22-3-7-16, 22-3-7-19