|Date Requested:March 20, 2013
Time Requested:09:58 AM
| FUND(S) |
Sources of Revenue
Legislation creates:Neither Program nor Fund
Effect this measure will have on costs and revenues of state government.
|HB 2945 has no significant fiscal impact on the operations or regulatory responsibilities of the Offices of the Insurance Commissioner (OIC).|
|Effect of Proposal||Fiscal Year|
|1. Estmated Total Cost||0||0||0|
|Repairs and Alterations||0||0||0|
|2. Estimated Total Revenues||0||0||0|
3. Explanation of above estimates (including long-range effect):
| HB 2945 will impact the amount of the subsidy provided to volunteer fire departments (VFDs) to offset their workers compensation premium increases. HB 2945 has no fiscal impact on the revenues or expenses of the Offices of the Insurance Commissioner (OIC), as the OIC is not administering the subsidy. The State Auditor’s Office (SAO) administers the subsidy program for VFDs.
The OIC obtained input from the National Council on Compensation Insurance (NCCI) regarding the impact of the provisions of HB 2945. NCCI estimates that the subsidy afforded to volunteer firefighter departments under WV Code §12-4-14a is approximately $2,000,000 per year currently. By implementing HB 2945, it is estimated that an additional $600,000 per year would be required. This projection of $600,000 is only the prospective impact based on the proposed bill and would be in addition to the current premium liabilities.
If enacted, HB 2945 requires that the Insurance Commissioner consult with the State Fire Marshal, who is required to conduct a review of the volunteer or part volunteer fire departments in the state. The OIC believes that the additional responsibilities due to the study provisions of HB 2945 can be accomplished within the current OIC budget levels. Accordingly, there is no expected fiscal impact to the OIC from the study provisions of HB 2945.
HB 2945 provides for the funding of the premium tax subsidy for VFDs by altering the distribution of amounts deposited into the Fire Protection Fund and the Premium Tax Savings Fund. For information regarding the fiscal impact of those provisions of HB 2945, The Board of Insurance Risk and Management (BRIM) and the State Treasurer’s Office (STO) should be consulted.