FISCAL NOTE
Date Requested: January 15, 2019
Time Requested: 02:47 PM |
| Agency: |
Insurance Commission |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2269 |
Introduced |
SB306 |
|
|---|
| CBD Subject: |
Health |
|---|
|
FUND(S):
7152
Sources of Revenue:
Special Fund
Legislation creates:
Creates New Expense, Increases Existing Expenses, Creates New Program, Creates New Fund: The Family and Medical Leave Insurance Fund
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
Senate Bill 306, if enacted, would create a new program known as the Family and Medical Leave Insurance Benefits Act. The new program would be administered by the Offices of the Insurance Commissioner. The entitlement to benefits created in SB306 appear to be available to every employee in the State of WV who contributes $1000 to the paid leave system during the 12 months prior to filing an application for benefits and who meets other criteria set forth in the proposed legislation. Participation by employers appears to be mandatory at the request of the employee.
The OIC is unable to estimate the costs of the enactment of SB306, but we believe that they would be significant.
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 |
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
The Offices of the Insurance Commissioner is unable to accurately estimate the costs of the proposed legislation at this time, as we do not have data available regarding all of the elements.
It is unknown how many employees would seek to contribute to said program and it is unknown how many incidents of paid leave per employee would be likely to occur.
If enacted, SB306 would significantly increase the operational expenses of the Offices of the Insurance Commissioner. The OIC can reasonably estimate the costs of the approximately 15 additional FTEs that would be required to administer the program, and we are reasonably able to estimate the advertising, outreach and educational costs, but we are unable to reasonably estimate the cost of the technological component necessary to implement SB306.
The OIC has no existing technology that could be utilized to perform all of the administrative functions required under SB306, so an entirely new system would be required. We believe that the technology costs would be significant.
SB306 could impact all state agencies as employers, so an estimate of the costs of the implementation of SB306 to each State agency should be obtained.
Additionally, the OIC is unable to estimate the additional costs to all employers doing business in the state, which could be significant.
At this time, the OIC is unable to calculate the magnitude of any potential long term liability to the State of WV, in the event that a deficit in the program occurs.
Person submitting Fiscal Note: Melinda Kiss
Email Address: Melinda.A.Kiss@wv.gov