Date Requested: January 28, 2020
Time Requested: 04:42 PM
Agency: Insurance Commission
CBD Number: Version: Bill Number: Resolution Number:
2517 Introduced SB624
CBD Subject: Health


7152, 7162, 7163, 7164, 7165, 7173

Sources of Revenue:

Special Fund

Legislation creates:

Increases Revenue From Existing Sources, Creates New Expense, Increases Existing Expenses, Creates New Program, Creates New Fund: West Virginia Black Lung Program

Fiscal Note Summary

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

Senate Bill 624, if enacted, would create a new program known as the West Virginia Black Lung Program, grant entitlement for pain and suffering from occupational pneumoconiosis, provide a tax credit for benefits received under the program, impose additional severance taxes and new taxes on generation of electricity by solar and wind devices, create a new fund known as the State Black Lung Fund and would require the Governor and the Legislature to cooperate with other states to attempt to recoup the federal excise tax on coal. The Offices of the Insurance Commissioner is unable to estimate the fiscal impact of Senate Bill 624 at this time. Please see the memorandum section of this fiscal note for additional information.

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 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.


Senate Bill 624, if enacted would create a new fund and program called the West Virginia Black Lung Program which would create entitlement benefits for pain and suffering for occupational pneumoconiosis. The Offices of the Insurance Commissioner (OIC) is unable to estimate the potential cost of the proposed legislation. The OIC did note some technical issues with SB 624, as currently drafted. 1. §23-4D-1 requires that the Insurance Commissioner propose rules for legislative approval beginning on July 1, 2012. This date is 8 years in the past. 2. §23-4D-1 requires that the rules that the Commissioner proposes be submitted for legislative approval in accordance with §29A-3-1 and ignores the rule making ability of the worker's Compensation INDC for Chapter 23 rules. 3. §23-4D-2 grants the presumptive benefit to anyone who worked in WV for a period of 10 years during the 15 immediately preceding the DLE. It does not restrict the exposure to coal dust. Without the limitation on the type of “minute particles of dust”, this benefit is open to any type of alleged dust exposure. 4. The benefit to be granted is a fixed amount for pain and suffering and is not related to medical treatment or lost wages. This benefit is a presumptive award and is in addition or TTD or FBL. It does not specifically say that it is in addition to permanent partial disability (PPD), which is typically viewed as the payment for pain, suffering and bodily injury. 5. SB 624 creates a general revenue account to be called the State Black Lung Fund. SB 624 does not say who is to administer the newly created Fund. It appears that the State Tax Commissioner may administer instead of the OIC. 6. Those that receive this benefit will also get a tax credit against their personal state income tax. The State Tax Department should be consulted for the potential impact of the proposed tax credit. 7. A new severance tax is also imposed, and the calculations for the fiscal impact of that tax should be done by the Tax Department.

    Person submitting Fiscal Note: Melinda Kiss
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