FISCAL NOTE
Date Requested: March 01, 2017 Time Requested: 01:45 PM |
Agency: |
Insurance Commission |
CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
2584 |
Introduced |
SB362 |
|
CBD Subject: |
Governor -- Bills Requested By |
---|
|
FUND(S):
7162
Sources of Revenue:
Special Fund
Legislation creates:
Neither Program nor Fund
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
If enacted, Senate Bill 362 will decrease the Worker's Compensation Old Fund revenues by an estimated $33,000,000 for fiscal year 2018.
Senate Bill 362 will permit the redirection, by Executive Order, of deposit revenues collected from employer surcharges and assessments on workers' compensation insurance policies, surcharges from self-insured employers and proceeds derived from net terminal income funds to the General Revenue Fund during fiscal year 2018.
The committee substitute for SB362 will also reduce the amount to be collected from self-insured employers from $9 million annually to $6 million annually.
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 |
-33,000,000 |
0 |
Explanation of above estimates (including long-range effect):
Total Estimated WC Old Fund Revenue Sources:
Video Lottery 11,000,000
Self-Insured Debt Reduction Surcharge 6,000,000
Debt Reduction Surcharge* 27,000,000
Total 44,000,000
75% of Revenues Redirected to General Revenue:
Video Lottery 8,250,000
SI Debt Reduction Surcharge 4,500,000
Debt Reduction Surcharge 20,250,000
Total Redirected Revenue 33,000,000
*FY2016 debt reduction surcharge revenues for fully insured employers yielded $31.6 million, however FY2017 y-t-d revenues show decreased collections, due to a decrease of 14.7% in loss costs for employer premium rates which became effective on Nov. 1, 2016 and reduced payroll in some employer classifications. Surcharge Revenue collections for insured employers for FY2018 are estimated to remain equivalent to current FY2017 levels.
Committee Substitute for Senate Bill 362:
There is a committee substitute for the introduced version of SB362, which in addition to redirecting the revenues from the Worker’s Compensation Old Fund to the General Revenue Fund as in the introduced version, will reduce the amount of debt reduction surcharge to be paid by self-insured employers from $9 million to $6 million annually.
Memorandum
If enacted, Senate Bill 362 will decrease the Worker's Compensation Old Fund fiscal year 2018 revenues by an estimated $33,000,000. Senate Bill 362 will permit the redirection of deposit revenues collected from employer surcharges and assessments on workers' compensation insurance policies, self insured employer surcharges
and proceeds derived from net terminal income funds by the Governor through executive order to the General Revenue Fund during fiscal year 2018.
Person submitting Fiscal Note: Melinda Ashworth Kiss
Email Address: Melinda.A.Kiss@wv.gov