|Date Requested:April 06, 2009
Time Requested:10:22 AM
| FUND(S) |
Sources of Revenue
Legislation creates:Neither Program nor Fund
Effect this measure will have on costs and revenues of state government.
| The purpose of this bill is to permit PEIA to promulgate a rule to charge fees to employers who transact business with the agency by paper when more efficient and less expensive electronic transactions are available.
PEIA is presently upgrading its eligibility, accounting and customer services to allow for more efficient and acute entry for employee enrollments, account reconciliation and customer service delivery. It is the intention of PEIA to remove the present paper based work systems and replace them with web based electronic systems.
PEIA will not be imposing a fee the first year as they want to assure their system is completely up and running and can then provide to employers the tools to perform the electronic transactions.
Currently there are approximately 100,000 transactions done by paper. Of that, 25,000 are retirement and intra-agency transfers and a fee will not be imposed for sometime as these two functions require a good deal of development yet. Based upon the approximately 75,000 transactions now, with no changes in how business is conducted, PEIA would receive a maximum of $375,000. However, we anticipate that number to reduce since employers will have adequate notice of the fee well in advance so they can get prepared to use the electronic transaction functionality.
PEIA intends to use the fees that are collected to assist those agencies/employers who do not have systems to do the transactions electronically training and set up.
There will be no fees assessed upon the employees, only the employers.
|Effect of Proposal||Fiscal Year|
|1. Estmated Total Cost||0||0||250,000|
|Repairs and Alterations||0||0||0|
|2. Estimated Total Revenues||0||0||250,000|
3. Explanation of above estimates (including long-range effect):
As was mentioned, it is expected that at full implementation of the proposed fee for paper transactions, the majority of the existing paper transactions will have already moved to an electronic format. As more and more of the employer groups begin using the electronic transaction systems the annual amount of the fee collection will drop.