FISCAL NOTE



FUND(S):

2180

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 purpose of this bill is to permit the Public Employees Insurance Agency to charge interest to employers upon amounts not paid on time. At the current time there is no procedure in place preventing employers from delaying payment to the Public Employees Insurance Agency. This bill would allow aggressive collection of premiums that are thirty days past due. Passage of this bill would significantly increase the cash flow to the Public Employees Insurance Agency by having employers remit monthly insurance premiums in a timely fashion. This would allow funds to be invested in an expeditious manner and over a longer period of time. Potential late fees and interest penalties are calculated to be approximately $500,000.00 annually.



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 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):






Memorandum






    Person submitting Fiscal Note: Chip Myers
    Email Address: CLIFFORD.M.MYERS@WV.GOV