FISCAL NOTE
Date Requested: January 12, 2022
Time Requested: 04:39 PM |
| Agency: |
Insurance Commission |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1095 |
Introduced |
SB106 |
|
|---|
| CBD Subject: |
|
|---|
|
FUND(S):
7162, 7163, 7164, 7165, 7173
Sources of Revenue:
General Fund
Legislation creates:
Increases Revenue From Existing Sources, Creates New Expense, Increases Existing Expenses, Creates New Program, Creates New Fund: West Virginia Black Lung Program
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
Senate Bill 106, if enacted, would create a new program / fund known as the West Virginia Black Lung Program. This new program would grant entitlement for pain and suffering from occupational pneumoconiosis (OP), establish a presumption of OP based on
years of employment, provide those receiving benefits from the program to claim the benefits as a credit against personal income tax, impose additional severance taxes on coal and oil and natural gas and impose new taxes on the generation of electricity by solar and wind devices. SB 106 also would require that the Governor and the Legislature cooperate with other states in an attempt to recoup the federal excise tax on coal in order to help to fund the program.
The Offices of the Insurance Commissioner is unable to estimate the fiscal impact of Senate Bill 106.
Please see the memorandum section of this fiscal note for additional information.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2022
Increase/Decrease
(use"-") |
2023
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
Senate Bill 106, if enacted, would create a new program and a new Fund called the WV Black Lung Program which would create entitlement benefits and and presumptive awards for benefits for occupational pneumoconiosis.
The Offices of the Insurance Commissioner is unable to estimate the potential cost of the proposed program.
The OIC did note some technical issues with SB106:
1. §23-4D-1 requires that the Insurance Commissioner propose rules for legislative approval by July 1, 2021, which is already in the past. Additionally, this section proposes that the rules be submitted to the legislature as opposed to the Worker's Compensation Industrial Council.
2. §23-4D-2 grants the presumptive benefit to anyone who has worked in WV for a period of 10 years during the 15 years immediately preceding the DLE. The language does not limit the exposure to coal dust, so any "minute particle of dust" would appear to qualify.
3. The benefit to be granted is a fixed amount for "pain and suffering" and is not related to medical treatment or lost wages. The newly created award is in addition to any existing State or Federal awards. SB 106 does not clarify if the new benefits are to be paid in addition to a permanent partial disability award (PPD), which is viewed as the ward that is payment for pain and suffering for bodily injury or disease.
4. SB 106 creates a new general revenue fund account to be called the State Black Lung Fund, but does not clearly identify who is to administer the Fund.
5. The State Tax Department should be consulted as SB 106 would permit those receiving benefits under the program to get a credit against their personal income taxes. The State Tax Department should also be consulted regarding the increased severance taxes and the creation of the new taxes on energy producing activities.
Person submitting Fiscal Note: Melinda Kiss
Email Address: Melinda.A.Kiss@wv.gov