FISCAL NOTE

Date Requested: January 22, 2022
Time Requested: 09:12 AM
Agency: Labor, WV Division of
CBD Number: Version: Bill Number: Resolution Number:
1981 Revised SB421
CBD Subject: Labor


FUND(S):

Paid Parental Leave Pilot Program Fund

Sources of Revenue:

Special Fund

Legislation creates:

Creates New Expense, Increases Existing Expenses, Creates New Program, Creates New Fund: Paid Parental Leave Pilot Program Fund



Fiscal Note Summary


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


The purpose of SB 421 is to create a paid family leave pilot program which would allow eligible state employees to take 12 weeks of paid leave during any 12-month period for the birth or adoption of a child. The pilot program is to be implemented and administered by the Division of Labor, however, the Division does not have access to the information necessary to determine the total costs of a paid family leave program for eligible state employees.



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):


The Division of Labor would be able to absorb the costs associated with the preparation of launching a new program from the Division’s current FY 2022 appropriations. The Division of Labor does not have access to the information necessary to determine the estimated total costs for FY 2023 or upon full implementation thereafter.



Memorandum


The references in the bill to the “department” of labor should be changed to the “division” of labor. On line 4 of the bill title, the “and” after “paid parental leave” should be replaced with a semicolon. On line 6 of the bill title, the semicolon after “employee” should be replaced with a comma and the semicolon after “leave” should be replaced with “and”. The bill establishes the pilot program’s start date as July 1, 2022 and sunset date as December 31, 2026. As written, an employee is entitled to a total of 12 weeks of paid leave during the first 12 months after a child’s birth for a child born during the period of July 1, 2022 through July 1, 2025 or for the adoption of a child during the same period. It is unclear whether an employee would be entitled to paid leave for a child born or adopted on or after July 2, 2025 but prior to December 31, 2026. The bill title includes a section relating to “employers required to respond to survey to Department of Labor[.]” As written, beginning on July 1, 2024, the Division of Labor is required to annually survey every employer to which a claim for paid leave has been submitted regarding certain prescribed information and that the survey information collected “shall be submitted to the Joint Committee on Government and Finance on or before August 1, 2024, and each year thereafter.” Assuming that the intent of the bill is for the Division to both conduct the survey and to compile and submit the survey information collected from all employers, it would be difficult for the Division complete such a task within a single month. If that assumption is correct, requiring the Division to submit the survey information at the same time the Division would be required to submit an annual program performance review report (beginning October 1, 2024) would be helpful. Unlike the Parental Leave Act, W. Va. Code §21-5D-1 et seq., this bill does not require employers to post notice of employee rights regarding paid family leave.



    Person submitting Fiscal Note: Brooke Farber
    Email Address: brooke.m.farber@wv.gov