Date Requested:February 24, 2011
Time Requested:12:00 PM
Agency: State Tax Department
CBD Number: Version: Bill Number: Resolution Number:
2011R2783 Introduced SB553
CBD Subject: INSURANCE SUBSIDY PROGRAM
FUND(S)
General Revenue Fund
Sources of Revenue
General Fund
Legislation creates:
A New Program

Fiscal Note Summary

Effect this measure will have on costs and revenues of state government.

    The stated purpose of this bill is to provide a program for distribution of a workers’ compensation insurance premium subsidy to volunteer fire departments meeting the requirements for participation.
    
    The total cost each fiscal year would be $2,500,000. Funding has been recommended by the Governor as follows:
    
    FY 2011 (General Revenue surplus supplemental) $2,500,000
    FY 2012 (General Revenue) - $2,500,000
    
    If funding is passed as recommended a total of $5,000,000 would be available in FY 2012 to address the first year of anticipated increases to volunteer fire departments worker’s compensation premiums.
    
    The funding would be distributed via prorated formula to cover the difference between the pre-July 1, 2011 annual worker’s compensation premium and the post-July 1, 2011 premiums based on the premium subsidy funding appropriated by the Legislature for the program. No volunteer fire department would be allocated more than 100% of the increase in premium. The payment would be made directly to the worker’s compensation insurance carrier.
    
    This program would be administered by the State Auditor’s Office. Program will undergo a review to assess its effectiveness after three years of operation (July 1, 2011 – July 1, 2014) with report due to the Legislature by February 1, 2015.
    

Fiscal Note Detail
Over-all effect
Effect of Proposal Fiscal Year
2011
Increase/Decrease
(use"-")
2012
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
3. Explanation of above estimates (including long-range effect):
    The stated purpose of this bill is to provide a program for distribution of a workers’ compensation insurance premium subsidy to volunteer fire departments meeting the requirements for participation.
    
    The total cost each fiscal year would be $2,500,000. Funding has been recommended by the Governor as follows:
    
    FY 2011 (General Revenue surplus supplemental) $2,500,000
    FY 2012 (General Revenue) - $2,500,000
    
    If funding is passed as recommended a total of $5,000,000 would be available in FY 2012 to address the first year of anticipated increases to volunteer fire departments worker’s compensation premiums.
    
    The funding would be distributed via prorated formula to cover the difference between the pre-July 1, 2011 annual worker’s compensation premium and the post-July 1, 2011 premiums based on the premium subsidy funding appropriated by the Legislature for the program. No volunteer fire department would be allocated more than 100% of the increase in premium. The payment would be made directly to the worker’s compensation insurance carrier.
    
    This program would be administered by the State Auditor’s Office. Program will undergo a review to assess its effectiveness after three years of operation (July 1, 2011 – July 1, 2014) with report due to the Legislature by February 1, 2015.
    


Memorandum
Person submitting Fiscal Note:
Mark Muchow
Email Address:
kerri.r.petry@wv.gov