FISCAL NOTE

Date Requested: March 14, 2017
Time Requested: 01:40 PM
Agency: Personnel, WV Division of
CBD Number: Version: Bill Number: Resolution Number:
1597 Introduced HB3083
CBD Subject: State Personnel


FUND(S):



Sources of Revenue:

Other Fund

Legislation creates:

Neither Program nor Fund



Fiscal Note Summary


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


    The Division of Personnel is unable to provide financial data with the facts available and for other reasons more fully explained below.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2017
Increase/Decrease
(use"-")
2018
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 bill does not address what happens to existing balances of sick and annual leave. Depending on how this is handled, the wvOASIS system may be required to track leave accrual based upon existing balances, date of hire, leave rules applied by classified agencies as opposed to exempt agencies not affected by the bill, etc. This would make the administration of leave even more complex and administratively burdensome.
    
    • Limits the ability for employees to carry over leave, creating more of an incentive for employees to use their leave before the end of year, increasing absenteeism.
    
    • The amount of paid leave available for employees to use in the event of incapacity or illness would be greatly reduced, resulting in higher turnover.
    
    • Decreases the ability to recruit and retain employees. All full-time employees immediately start accruing 1.5 days of sick leave per month and can carry over any unused sick leave at the end of each year in addition to the maximum annual leave carry over. This will worsen an existing morale issue relating to new employees in the same classification getting paid more than current employees due to lack of pay increases (pay compression) and recruitment challenges. This dissatisfaction may result in increased costs associated with employee turnover and grievances.
    
    • Could increase the rate of retirements due to long tenured employees earning less or losing leave which could be used to purchase retiree health insurance or enhance retirement benefits.
    
    • The bill does not address use of personal leave for insurance or retirement benefits upon retirement for employees eligible to use sick and annual leave for those purposes.
    
    • The Public Employees Insurance Agency and Consolidated Public Retirement Board would likely be required to amend their statutes and legislative rules.
    
    • Requires that West Virginia Division of Personnel’s legislative rules 143CSR1, 143CSR2, and 143CSR3 be amended.
    
    • W. Va. Code § 5-5-3 pertaining to payment of annual leave upon separation would need to be amended.
    
    • W. Va. Code § 23-4-1 pertaining to use of sick leave pending receipt of Temporary Total Disability Benefits would require amendment.
    
    • Employees receiving TTD benefits currently accrue annual leave but not sick leave. Accrual of “personal leave” while receiving TTD benefits would need to be addressed, ideally in statute.
    
    • Requires West Virginia Division of Personnel’s Family Medical Leave Act/Parental Leave Act, Workers Compensation/Sick Leave, Annual Increment, Emergency Situations/Inclement Weather, Severance Pay, and Witness/Jury Service policies to be updated.
    
    • Agency personnel handbooks, policies, etc. would need to be updated.
    
    • The Department of Administrations Sick Leave Compensation Program will need to be updated.
    
    • Employees would be taking less time off, however it could speed up their eligibility for FMLA and a medical leave of absence without pay, since only time worked is counted towards eligibility.
    
    • More payment of leave due upon separation (i.e. resignation, dismissal, layoff, or retirement). Currently, sick leave is not paid out upon separation but payment of unused personal leave would have to be paid out consistent with the West Virginia Division of Labor’s Wage Payment Collection Act and the West Virginia Division of Personnel’s Administrative Rule.
    



Memorandum


    • The bill does not address what happens to existing balances of sick and annual leave. Tenured employees likely have large balances of sick leave and maximum balances of annual leave since they may utilize the leave to enhance insurance or retirement benefits upon retirement.
    
    • Employees in high turnover positions, such as correctional officers and health care workers, have difficulty in using excess annual leave before the end of the year due to mandated overtime. These employees will now have more leave they could potentially lose at the end of each year.
    
    • Property interest litigation is likely if the leave conversion is not prospective in nature.
    



    Person submitting Fiscal Note: Joe Thomas
    Email Address: joe.f.thomas@wv.gov