|Date Requested:February 18, 2008
Time Requested:12:39 PM
| FUND(S) |
Sources of Revenue
Legislation creates:Neither Program nor Fund
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.
|Effect of Proposal||Fiscal Year|
|1. Estmated Total Cost||13,250||53,000||53,000|
|Repairs and Alterations||0||0||0|
|2. Estimated Total Revenues||0||55,000||55,000|
3. 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.