FISCAL NOTE

Date Requested: March 02, 2021
Time Requested: 11:36 AM
Agency: Insurance Commission
CBD Number: Version: Bill Number: Resolution Number:
2329 Introduced HB2846
CBD Subject: Taxation


FUND(S):

1331

Sources of Revenue:

Special Fund

Legislation creates:





Fiscal Note Summary


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


House Bill 2846, if enacted, would dedicate 25 percent of the annual insurance premium tax revenues to the PEIA Rainy Day Fund. These tax proceeds are currently collected by the Insurance Commissioner and sent to General Revenue. HB2846 will not have any impact on the revenues, expenses or operations of the Offices of the Insurance Commissioner. HB2846 appears to be revenue neutral as it dedicates tax proceeds to a special revenue Fund by taking them from the State's General Revenue Fund. The Department of Revenue and the State Budget Office should be consulted regarding the impact on General Revenue. The OIC estimates the amount of premium tax revenue that would be dedicated to the PEIA Rainy Day Fund to be $20,475,009 annually, if HB 2846 is enacted.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2021
Increase/Decrease
(use"-")
2022
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 0 0
Personal Services 0 0 0
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 0 0
2. Estimated Total Revenues 0 0 0


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


Please explain increases and decreases in personal services, current expenses, repairs and alterations, assets, other costs and revenues, including assumptions and data sources and delineation between start-up and ongoing costs. Please also include a long-range schedule of costs and revenues if fiscal impact is expected to vary in future years.



Memorandum


HB2846 will not have any impact on the revenues, expenses or operations of the Offices of the Insurance Commissioner. House Bill 2846, if enacted, would dedicate 25 percent of the annual insurance premium tax revenues to the PEIA Rainy Day Fund. These tax proceeds are currently collected by the Insurance Commissioner and sent to General Revenue. Currently, the Offices of the Insurance Commissioner collects approximately $81,900,036 annually in accordance with W.Va. Code 33-3-14, so 25 percent of those tax proceeds would yield $20,475,009 that would be transferred to the PEIA Rainy Day Fund and not remitted to the State's General Fund each year. The Department of Revenue and the State Budget Office should be contacted regarding the impact on the state's General Revenue.



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