Date Requested: February 05, 2018
Time Requested: 01:54 PM
Agency: Insurance Commission
CBD Number: Version: Bill Number: Resolution Number:
2431 Introduced SB485
CBD Subject: Workers Compensation



Sources of Revenue:

Special Fund

Legislation creates:

Fiscal Note Summary

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

    If enacted, Senate Bill 485 would terminate the Workers’ Compensation Debt Reduction Fund surcharge assessment on self-insured employers after June 30, 2018.
    SB485 will reduce the revenue for the Workers’ Compensation Old Fund by an estimated $9 million in fiscal year 2019 and annually thereafter until the WC Old Fund is certified as solvent. This estimate is based on the impact of SB485 to §23-2C-3 of the Code of West Virginia, 1931, as amended. Please see memorandum entry for additional information regarding the fiscal impact of SB485.

Fiscal Note Detail

Effect of Proposal Fiscal Year
Fiscal Year
(Upon Full
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 -9,000,000 -9,000,000

Explanation of above estimates (including long-range effect):

    If enacted, SB485 will reduce revenue for the WC Old Fund by an estimated $9 million dollars per year. It should be noted that:
    • The estimate of $9 million in revenue reduction is based on the amount of surcharge to be collected from self-insured employers in fiscal year 2019 as currently written in §23-2C-3. It assumes that the Old Fund has not been certified as solvent and it assumes that no additional legislation requiring redirection of the self-insured surcharge revenues in fiscal year 2019 has been passed. It also assumes no significant loss of participating self-insured employers.


    If enacted, SB485 could reduce the revenue for the Workers’ Compensation Old Fund by an estimated $9 million per year. The above estimate assumes that the WC Old Fund has not been certified as solvent and it does not reflect any potential redirection of fiscal year 2019 revenues, as the statutory redirection of surcharge revenues ceases on June 30, 2018. Additionally, the estimate assumes that the number of self-insured employers remains constant, with no significant reduction in payroll after the assessment notification is made.
    It should be noted that the actual WC Old Fund self-insured debt reduction surcharge assessment revenues received by the WC Old Fund for fiscal years 2016 and 2017 have approximated $6.2 million and $4.4 million respectively as the result of legislated redirection of the revenues and decreased self-insured payroll.

    Person submitting Fiscal Note: Melinda Kiss
    Email Address: