FISCAL NOTE

Date Requested: January 30, 2018
Time Requested: 02:53 PM
Agency: Insurance Commission
CBD Number: Version: Bill Number: Resolution Number:
1958 Draft - Comm. Sub. SB341
CBD Subject: Courts


FUND(S):

7152

Sources of Revenue:

Special Fund

Legislation creates:

Decreases Existing Expenses



Fiscal Note Summary


Effect this measure will have on costs and revenues of state government.


    The committee substitute for Senate Bill 341 seeks to establish a West Virginia Intermediate Court of Appeals for the State of West Virginia. To accomplish that, the committee substitute for Senate Bill 341 would terminate the Worker’s Compensation Board of Review (BOR) and transfer duties of the BOR and jurisdiction of worker’s compensation cases to the newly established WV Intermediate Court of Appeals as one component of the reorganization of the WV Appellate system.
    
    If enacted, the committee substitute for SB341 would reduce the operating expenses of the WV Offices of the Insurance Commissioner as the operational costs and budgetary appropriation for the Worker’s Compensation Board of Review would cease after June 30, 2019.
    
    The Committee has requested information regarding the case load of the Worker’s Compensation Review Board. In calendar year 2017, the BOR adjudicated 710 cases. This number of cases is the most recent data available to the OIC and can be considered representative of the annual case load.
    



Fiscal Note Detail


Effect of Proposal Fiscal Year
2018
Increase/Decrease
(use"-")
2019
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 0 -1,000,000
Personal Services 0 0 -850,000
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 0 -150,000
2. Estimated Total Revenues 0 0 0


Explanation of above estimates (including long-range effect):


    If enacted, the committee substitute for SB341 would reduce the operating expenses of the WV Offices of the Insurance Commissioner by an estimated
    $1 million per year beginning in fiscal year 2020 as the operational costs and budgetary appropriation for the Worker’s Compensation Board of Review would cease after June 30, 2019.
    
    Generally, 85% of the operational cost of the BOR is related to Personal Services and employee benefits and the remaining 15% of expenditures are current year expenses.
    
    The OIC estimates that the reduction in OIC expenses due to the termination of the BOR would be $1,000,000 per year beginning in fiscal year 2020.
    
    



Memorandum


    The committee substitute for Senate Bill 341 seeks to establish a West Virginia Intermediate Court of Appeals for the State of West Virginia. To accomplish that, the committee substitute for Senate Bill 341 would terminate the Worker’s Compensation Board of Review (BOR) and transfer duties of the BOR and jurisdiction of worker’s compensation cases to the newly established WV Intermediate Court of Appeals as one component of the reorganization of the WV Appellate system.
    
    If enacted, the committee substitute for SB341 would reduce the operating expenses of the WV Offices of the Insurance Commissioner by an estimated $1 million per year beginning in fiscal year 2020 as the operational costs and budgetary appropriation for the Worker’s Compensation Board of Review would cease after June 30, 2019.
    
    It should be noted that the FY2017 budget allocation for the BOR was estimated at $1.5 million per year and the BOR operated with actual expenditures of approximately $1 million per year. The year to date actual expenditures for FY2018 also indicate that the BOR will expend around $1 million for its current year operations.
    
    If enacted, SB341 may increase costs to the WV Supreme Court of Appeals and their input regarding the costs to operate the WV Intermediate Court of Appeals should be sought.



    Person submitting Fiscal Note: Melinda Kiss
    Email Address: Melinda.A.Kiss@wv.gov