FISCAL NOTE

Date Requested: January 21, 2020
Time Requested: 03:54 PM
Agency: Insurance Commission
CBD Number: Version: Bill Number: Resolution Number:
1158 Introduced SB101
CBD Subject: Workers Compensation


FUND(S):

7162, 7173

Sources of Revenue:

Special Fund

Legislation creates:

Creates New Expense, Increases Existing Expenses



Fiscal Note Summary


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


If enacted, Senate Bill 101 would grant worker’s compensation benefits for first responders diagnosed with post-traumatic stress disorder from an event that occurred during their employment. Under current law, no alleged injury or disease may be recognized as a compensable injury or disease which was solely caused by nonphysical means and which did not result in any physical injury or disease to the person claiming benefits. SB101, if enacted, may result in an increase in system costs for first responder (law-enforcement officer, firefighter, emergency medical technician, and paramedic) job classification codes in West Virginia. Much of the cost impact for first responder class codes would be borne by governmental entities who are the typical employers of the affected first responder employees. The OIC does not have the data necessary to prepare an accurate estimate of the potential cost increases. However and generally, the expected cost impact (ultimately borne by governmental entities) on individual first responder class codes could be significant.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2020
Increase/Decrease
(use"-")
2021
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):


Please explain increases and decreases in personal services, current expenses, repairs and alterations, assets, other costs and revenues, including assumptions and data sources and delineation between start-up and ongoing costs. Please also include a long-range schedule of costs and revenues if fiscal impact is expected to vary in future years.



Memorandum


If enacted, Senate Bill 101 would grant worker’s compensation benefits for first responders diagnosed with post-traumatic stress disorder from an event that occurred during their employment. Under current law, no alleged injury or disease may be recognized as a compensable injury or disease which was solely caused by nonphysical means and which did not result in any physical injury or disease to the person claiming benefits. SB101, if enacted, may result in an increase in system costs for first responder (law-enforcement officer, firefighter, emergency medical technician, and paramedic) job classification codes in West Virginia. Much of the cost impact for first responder class codes would be borne by governmental entities who are the typical employers of the affected first responder employees. The OIC does not have the data necessary to prepare an accurate estimate of the potential cost increases. However and generally, the expected cost impact (ultimately borne by governmental entities) on individual first responder class codes could be significant. Senate Bill 101 contains no effective date, so the proposed changes could potentially extend to injuries occurring prior to the date the bill becomes law, resulting in possible retroactive cost impacts. Such a retroactive application of the law could result in an unfunded liability to the extent that these additional costs were not contemplated in the premiums charged for policies written prior to the effective date of the bill. The OIC administered State Funds that would be negatively impacted by retroactive application of SB101 would include the Workers Compensation Old Fund and the State Entities Worker's Compensation Fund.



    Person submitting Fiscal Note: Melinda Kiss
    Email Address: Melinda.A.Kiss@wv.gov