FISCAL NOTE
Date Requested: January 25, 2023
Time Requested: 02:55 PM |
| Agency: |
Labor, WV Division of |
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| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2883 |
Introduced |
HB3030 |
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| CBD Subject: |
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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 HB 3030 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 of a child or for the adoption of a child under 12 years of age. The pilot program is to be administered by the Division of Labor. The Division does not have access to the information necessary to determine the overall fiscal impact to the state for a paid family leave program for state employees, but the Division has tried to estimate what the agency's administrative costs would be, which is discussed in more detail below.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2023
Increase/Decrease
(use"-") |
2024
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
21,900 |
87,600 |
111,600 |
| Personal Services |
21,900 |
87,600 |
111,600 |
| 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):
Because the Division of Labor is not currently responsible for administering any other benefit programs for state employees, it is difficult to determine what exactly the agency's administrative costs would be for implementing and administering the paid family leave pilot program. The Division would be able to absorb certain administrative costs, such as those relating to the preparation and distribution of paid family leave claim forms/applications and the drafting of emergency, legislative, and procedural rules, from the Division's current FY 2023 appropriations. However, assuming the pilot program's start date is July 1, 2023, it is likely that the Division would need to hire approximately three additional employees in the last quarter of FY 2023 for training and for the development and administration of the IT infrastructure needed for processing benefit payments. The Division assumed that the Division of Personnel class specifications for such employees would be an Office Assistant III and two Administrative Services Assistant I positions, which would lead to a FY 2023 increase for Personal Services in the amount of $21,900 ($7,300 per month for April, May, and June). The Division assumed that no additional staff beyond the three employees would need to be hired for FY 2024. The Division based this assumption by estimating the number of total applications for benefits that are required to be processed within seven days to determine an applicant's eligibility. The West Virginia Auditor submitted a Fiscal Note for SB 607 during the 2021 Regular Legislative Session in which it was estimated that there were approximately 400 births and adoptions that occurred per year for state employees, and that all 400 employees would apply for paid leave benefits and be eligible for such benefits. Of the other states who have enacted paid family leave policies for state employees, no information could be found relating to the number of applicants for paid leave benefits per year and a breakdown of eligible versus ineligible applicants. The Division estimated it would receive 200 applications for benefits per year that would be deemed ineligible. Thus, the Division estimated it would receive a total of 600 applications per year. The increase for FY 2024 Personal Services would be $87,600. The Division estimated that upon full implementation, additional staff may be needed in order to conduct an annual employer survey and submit a report of the survey results to the Joint Committee on Government and Finance and to prepare and submit an annual performance review report to the Joint Committee on Government Organization. The employer survey and the performance review are both required to be submitted annually beginning in 2025. The increase for Personal Services upon full implementation would be $111,600.
Memorandum
The references in the bill to the "department" of labor should be changed to the "division" of labor. Additionally, unlike the Parental Leave Act, W. Va. Code ยง21-5D-1 et seq., this bill does not require employers to post notice of employee rights regarding paid family leave.
Person submitting Fiscal Note: Brooke M. Farber
Email Address: brooke.m.farber@wv.gov