FUND(S):

7152

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.


    The Net fiscal impact of proposed HB 4618 should be nominal to state government. Actual costs and revenues to regulate Viaticals are difficult to predict given the variableness of participants and the need to fully develop processes to appropriately regulate. However, the bill requires for fee assessments to cover expenses of the regulation. Given the funding methodology, the net costs to state government should be nominal.
    
    
    Projected numbers have been provided, however, actual performance may significantly deviate given the various variables. Annual costs are estimated at $53,000 and Annual revenues are estimated at $55,000.
    



Fiscal Note Detail


Effect of Proposal Fiscal Year
2008
Increase/Decrease
(use"-")
2009
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 13,250 53,000 53,000
Personal Services 13,250 53,000 53,000
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 0 0
2. Estimated Total Revenues 0 55,000 55,000


Explanation of above estimates (including long-range effect):


    Costs for full process development are projected at 25% of 1 professional level FTE. (Salary + Benefits) * 25% = ($40,000 + $13,000) * 25% = $13,250.
    
    
    “Upon full implementation” it is estimated to require a total of 1 professional level FTE to adequately administer the proposal. Most likely this will require the allocation of staff from the Rates & Forms division, Financial Conditions division, Agents Licensing division and Market Conduct division. It is reasonable to allocate 25% of an individual in each of the four divisions or a total of 1 FTE. Salary + Benefits = $40,000 + $13,000 = $53,000.
    
    
    Fees are to be established to cover the costs of the regulation, the breakout will be determined by rule. Estimated annual requirement is $55,000.
    



Memorandum


     Person submitting Fiscal Note: Michael D. Riley
     Email Address: Michael.Riley@wvinsurance.gov