Bill Summary – FastDemocracy

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 7280                                                            NOTE PREPARED: Jan 5, 2021
BILL NUMBER: HB 1490                                               BILL AMENDED:
SUBJECT: Health Care Sharing Ministries.
FIRST AUTHOR: Rep. Carbaugh                                        BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED: X GENERAL                                          IMPACT: State & Local
                X DEDICATED
                  FEDERAL
Summary of Legislation: The bill requires a health care sharing ministry (HCSM) to hold a current
certificate of registration, issued by the Department of Insurance (DOI), to conduct business in Indiana. It
also establishes a registration and renewal process for HCSMs.
Effective Date: July 1, 2021.
Explanation of State Expenditures: The bill will increase the workload of the DOI to register and regulate
HCSMs. The additional funds and resources required could be supplied through the new application and
renewal fees established in the bill, existing staff and resources currently being used in another program, or
with new appropriations. Ultimately, the source of funds and resources required to satisfy the requirements
of this bill will depend on legislative and administrative actions.
Additionally, the Attorney General may act to dissolve an HCSM that does not register. Any workload
impact is expected to be minimal.
Additional Information - The DOI’s expenditures are paid through a dedicated fund that receives revenue
from license, regulatory, and audit fees with an FY 2021 appropriation of $127.2 M. As of December 2020,
DOI has 16 vacant positions with a total salary capacity between $530,000 and $1.3 M, based on the salary
range of the vacant positions.
Explanation of State Revenues: Application and Renewal: The application and renewal fee for registration
is $100 and it is renewed annually. An HCSM pays a $250 late fee for being up to 30 days past the renewal
date, $500 for up to 60 days past, and $1,000 for being up to 90 days past. After 90 days past the renewal,
HB 1490                                               1
the HCSM must wait two years before reapplying. Fees and penalties are deposited in the DOI agency fund.
[There are an estimated 108 HCSMs nationally, and approximately 39,247 Indiana residents participate in
HCSM.]
The bill specifies a registered HCSM is subject to anti-fraud laws. The penalty for engaging in an unfair and
deceptive act is one or more of the following: (1) a civil penalty of either $25,000 or $50,000 for each act
or violation and (2) revocation of an insurer's license or certificate of authority in certain circumstance. If
an HCSM does not register, the DOI may file for an injunction and impose a Class A infraction penalty. The
maximum judgment for a Class A infraction is $10,000, which is deposited in the state General Fund. Also,
the Attorney General may file for dissolution of an registered corporation and court fees may be collected
from the defendant if the Attorney General prevails [IC 33-37-3-1]. Additional court fees will increase
revenue to the state General Fund. A civil costs fee of $100 could be assessed from the defendant, 70% of
which would be deposited in the state General Fund if the case is filed in a court of record or 55% if the case
is filed in a city or town court. Additional fees may apply.
Explanation of Local Expenditures:
Explanation of Local Revenues: If additional court actions are filed and a judgment is entered, local
governments would receive revenue from the following sources. The county general fund would receive
27% of the $70 court fee that is assessed in a court of record. Cities and towns maintaining a law
enforcement agency that prosecutes at least 50% of its ordinance violations in a court of record may receive
3% of court fees. If the case is filed in a city or town court, 20% of the court fee would be deposited in the
county general fund and 25% would be deposited in the city or town general fund. Persons found guilty of
an infraction are also required to pay the following fees that are deposited in local funds: the document
storage fee ($5), which is deposited into the clerk record perpetuation fund, and the jury fee ($2) and law
enforcement continuing education fee ($4), which are both deposited in the county user fee fund.
State Agencies Affected: DOI, Attorney General.
Local Agencies Affected: Trial courts, city and town courts.
Inf ormation Sources: https://crsreports.congress.gov/product/pdf/R/R46003/2;
http://ahcsm.org/about-us/data-and-statistics/.
Fiscal Analyst: Karen Rossen, 317-234-2106.
HB 1490                                               2
Statutes affected: 
1. Introduced House Bill (H): 27-1-2.1-1