FISCAL NOTE
Date Requested: January 10, 2020
Time Requested: 09:59 AM |
| Agency: |
Insurance Commission |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1163 |
Introduced |
SB116 |
|
|---|
| CBD Subject: |
Counties |
|---|
|
FUND(S):
Political Subdivisions Fire Cleanup Relief Fund
Sources of Revenue:
Special Fund
Legislation creates:
Increases Revenue From Existing Sources, Creates New Expense, Creates New Fund: Political Subdivisions Fire Cleanup Relief Fund
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
If enacted, Senate Bill 116 would add a new section to the Code of West Virginia, 1931, designated as ยง33-3-33c which would create a new surcharge to be imposed on the policyholder of every fire or casualty insurance policy issued in the state. The policy surcharge will be equal to one tenth of one percent of the taxable premium for each policy. Senate Bill 116 also would create a new Fund to be known as the Political Subdivisions Fire Cleanup Relief Fund. This new fund will be administered by the State Treasurer.
The purpose of the newly created surcharge and related Fund is to provide financial assistance to municipalities and counties of certain fire related cleanup and demolition costs.
The Offices of the Insurance Commissioner (OIC) will collected the surcharge revenue and the OIC estimates that the new surcharge will generate approximately $3,109,023 in revenue.
The State Treasurer's Office (STO) will be responsible for the administration of the newly created Fund, the development of legislative rules to assist with the administration of the Fund and the disbursement of the monies in the Fund to the municipalities. Accordingly, the STO should be contacted to estimate the administrative expenses associated with the new Fund.
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 |
3,109,023 |
3,109,023 |
3,109,023 |
Explanation of above estimates (including long-range effect):
The estimates are based on 2018 premiums, which is the most recent fully audited tax year 2018 Total Surplus Lines Premiums
Total Premiums $128,045,348.17
Cancelations $(5,521,084.62)
fees $2,196,151.53
$124,720,415.08
Proposed surcharge 0.100%
$124,720.42
2018 Total Company Premiums
Total Company Premiums 2,984,302,857
Proposed surcharge 0.100%
TOTAL REVENUE $2,984,302.86
TOTAL Proposed Revenue $3,109,023.27
Memorandum
If enacted, Senate Bill 116 will establish a newly created special revenue fund to be administered by the State Treasurer's Office for the purpose of providing funding to municipalities and counties for fire-related cleanup and demolition costs.
SB 116 establishes a new surcharge of one tenth of one percent to be levied on all fire and casualty insurance policies issued in the State. The OIC estimates the proceeds from the newly created surcharge to approximate $3,109,023 in surcharge revenue.
As the State Treasurer's Office will be charged with administration of the newly created Fund, they should be contacted regarding any anticipated expenses related to Senate Bill 116.
Person submitting Fiscal Note: Melinda Kiss
Email Address: Melinda.A.Kiss@wv.gov