FISCAL NOTE
Date Requested: January 09, 2019
Time Requested: 05:25 PM |
| Agency: |
Insurance Commission |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1793 |
Introduced |
SB2 |
|
|---|
| CBD Subject: |
|
|---|
|
FUND(S):
7152
Sources of Revenue:
Special Fund
Legislation creates:
Decreases Existing Expenses
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
Senate Bill 2 seeks to establish a West Virginia Intermediate Court of Appeals for the State of West Virginia. To accomplish that, Senate Bill 2 would terminate the Worker’s Compensation Board of Review (BOR) and transfer duties of the BOR and jurisdiction of worker’s compensation appeals to the newly established WV Intermediate Court of Appeals as one component of the reorganization of the WV Appellate system.
If enacted, SB2 would reduce the operating expenses of the WV Offices of the Insurance Commissioner as the operational costs and expenses for the Worker’s Compensation Board of Review would cease after June 30, 2020.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2019
Increase/Decrease
(use"-") |
2020
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
0 |
-965,000 |
| Personal Services |
0 |
0 |
-825,000 |
| Current Expenses |
0 |
0 |
-140,000 |
| 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):
If enacted, SB2 would reduce the operating expenses of the WV Offices of the Insurance Commissioner by an estimated $965,000 per year beginning in fiscal year 2021 as the operational costs and expenses for the Worker’s Compensation Board of Review would cease after June 30, 2020.
Generally, 85% of the operational cost of the BOR is related to Personal Services and employee benefits and the remaining 15% of expenditures are current year expenses.
The OIC estimates that the reduction in OIC expenses due to the termination of the BOR would be $965,000 per year beginning in fiscal year 2021.
Memorandum
Senate Bill 2 seeks to establish a West Virginia Intermediate Court of Appeals for the State of West Virginia. To accomplish that, Senate Bill 2 would terminate the Worker’s Compensation Board of Review (BOR) and transfer duties of the BOR and jurisdiction of worker’s compensation appeals to the newly established WV Intermediate Court of Appeals as one component of the reorganization of the WV Appellate system.
If enacted, SB2 would reduce the operating expenses of the WV Offices of the Insurance Commissioner by an estimated $965 thousand per year beginning in fiscal year 2021 as the operational costs and expenses for the Worker’s Compensation Board of Review would cease after June 30, 2020.
It should be noted that in FY2017 BOR operated with actual expenditures of approximately $1 million per year. In FY2018 the BOR expended $961,000 for their operations. The year to date actual expenditures for FY2019 indicate that the BOR will expend approximately $965 thousand for its current year operations.
If enacted, SB2 may increase costs to the WV Supreme Court of Appeals and their input regarding the costs to operate the WV Intermediate Court of Appeals should be sought.
Person submitting Fiscal Note: Melinda Kiss
Email Address: Melinda.A.Kiss@wv.gov