FISCAL NOTE
Date Requested: February 15, 2017 Time Requested: 02:03 PM |
Agency: |
Treasurer's Office, WV |
CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
2118 |
Revised |
SB328 |
|
CBD Subject: |
Counties, Insurance, Municipalities |
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|
FUND(S):
Political Subdivisions Fire Cleanup Relief Fund
Sources of Revenue:
Special Fund
Legislation creates:
A New Fund
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The purpose of Senate Bill 328 is to create a fund to relieve the burden upon municipalities and counties of certain fire related cleanup and demolition.
Senate Bill 328 imposes a 0.1% surcharge on fire or casualty insurance policy premiums to be collected by the Insurance Commissioner quarterly and deposited into the newly created Political Subdivisions Fire Cleanup Relief Fund in the state treasury. Municipalities and counties responsible for demolishing or cleaning up private structures damaged by fire when there was insufficient insurance may apply to the Treasurer for moneys from the Fund if the municipality or county can provide it will own the property and will either redevelop it or have a private developer not connected to the previous owner redevelop and/or own it. The Treasurer is authorized to propose legislative rules.
Currently, the Insurance Commissioner collects moneys based upon surcharges on fire or casualty insurance policy premiums. Extrapolating the amounts expected to be generated by a 0.1% surcharge from the amounts currently generated by other surcharges, it appears approximately $2.5 million would be generated in Fiscal Year 2018, with estimated increases of 1.8% annually.
The Treasurer’s Office estimates the set up costs, including creating the forms, promulgating a proposed rule and communicating with the counties and the municipalities, to be approximately $7,500. We also estimate the ongoing costs to be $200 per application, which includes reviewing the application, ensuring compliance with the W.Va. Code and the rule, responding to questions, and processing payments, for an estimated $2,000 per year.
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 |
9,500 |
2,000 |
Personal Services |
0 |
9,500 |
2,000 |
Current Expenses |
0 |
0 |
0 |
Repairs and Alterations |
0 |
0 |
0 |
Assets |
0 |
0 |
0 |
Other |
0 |
0 |
0 |
2. Estimated Total Revenues |
0 |
2,500,000 |
2,545,000 |
Explanation of above estimates (including long-range effect):
See information above.
Memorandum
Senate Bill does not provide for the start-up and ongoing administrative expenses of the West Virginia State Treasurer's Office. Authorizing administrative expenses from collections would be helpful. In addition, there is no effective date, which should probably be July 1, 2017 or later, to ensure sufficient lead time for insurance companies and agents to be able to commence collections.
Person submitting Fiscal Note: Diana Stout
Email Address: diana.stout@wvsto.com