FISCAL NOTE
Date Requested: January 12, 2022
Time Requested: 05:15 PM |
| Agency: |
Insurance Commission |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1114 |
Introduced |
SB234 |
|
|---|
| CBD Subject: |
|
|---|
|
FUND(S):
Political Subdivisions Fire Cleanup Relief Fund
Sources of Revenue:
Special Fund
Legislation creates:
Increases Revenue From Existing Sources, Creates New Expense, Creates New Fund: Political Subdivision Fire Cleanup Relief Fund
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
If enacted, Senate Bill 234 would add a new section to the Code of West Virginia, 1931, as amended, designated as ยง33-3-33c which would create a new surcharge to be imposed on the policyholder of every fire or casualty insurance policy issued in the state.
The proposed new policy surcharge would be equal to one tenth of one percent of the taxable insurance premium for each policy.
Senate Bill 234 would also create a new Fund to be known as the Political Subdivisions Fire Cleanup Relief Fund. The newly created Fund would be administered by the State Treasurer. The purpose of the newly created surcharge and related Fund is to provide financial assistance to municipalities and counties for certain fire related cleanup and demolition costs.
The Offices of the Insurance Commissioner (OIC) will collect the surcharge revenue and the OIC estimates that the new surcharge would generate approximately $2,622,591 in annual revenue if SB 234 is enacted.
The State Treasurer (STO) will be responsible for the administration of the newly created Fund and the disbursement of monies in the Fund to the applicants. Accordingly, the STO should be contacted in order to estimate the costs and expenses of the enactment of SB234.
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 |
2,622,591 |
2,622,591 |
2,622,591 |
Explanation of above estimates (including long-range effect):
The estimates are based on 2020 insurance premiums, which is the most recent fully audited tax year.
Total Surplus Lines Premiums:
Total Premiums $150,562,922
Cancelations $ (8,547,307)
Fees $ 10,687,711
Total Surplus Lines Premiums $152,703,326
Proposed new Surcharge 0.100%
Surplus Lines Revenue $152,703
Total Insurance Company Premiums:
Total Premiums $2,469,887,292
Proposed new Surcharge 0.100%
Revenue $2,469,888
Total Proposed New Revenue $2,622,591
Memorandum
If enacted, Senate Bill 234 will establish a newly created surcharge of one tenth of one percent to be levied on all fire and casualty insurance policies issued in the state. The OIC estimates that the annual revenue generated from the proposed new surcharge on policyholders will approximate $2,622,591 annually.
If enacted, Senate Bill 234 will establish a newly created special revenue fund to be administered by the State Treasurer's Office for the purpose of providing funding to municipalities and counties for fire-related cleanup and demolition costs. As the State Treasurer's Office will be charged with the administration of the newly created Fund and program, they should be contacted regarding the anticipated costs and expenses related to the enactment of SB 234.
Person submitting Fiscal Note: Melinda Kiss
Email Address: Melinda.A.Kiss@wv.gov