FISCAL NOTE
Date Requested: February 12, 2025
Time Requested: 09:17 PM |
| Agency: |
Insurance Commission |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2002 |
Introduced |
SB16 |
|
|---|
| CBD Subject: |
|
|---|
|
FUND(S):
7152, 7162, 7163, 7164, 7165
Sources of Revenue:
Special Fund
Legislation creates:
Increases Existing Expenses
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
Senate Bill 16, if enacted, will likely increase the expenses of the OIC’s Operating Fund, and may adversely affect the efficiency of the Occupational Pneumoconiosis (OP) Board.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2025
Increase/Decrease
(use"-") |
2026
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):
Please explain increases and decreases in personal services, current expenses, repairs and alterations, assets, other costs and revenues, including assumptions and data sources and delineation between start-up and ongoing costs. Please also include a long-range schedule of costs and revenues if fiscal impact is expected to vary in future years.
Memorandum
Senate Bill 16, if enacted, will likely increase the expenses of the OIC’s Operating Fund, and may adversely affect the efficiency of the Occupational Pneumoconiosis (OP) Board.
Analysis of the historical number of claimant examinations performed by the OP Board shows that the average examinations performed from fiscal years 2005 – 2018 was 697 per year compared to a more current average of 382 examinations per year from fiscal years 2019 -2024. Current expenditures (FY 2024) for the OP Board cost $3,650 per claimant examination. The effects of SB16 may overload the current capacity of the OP Board and its five (5) members by increasing the examination caseload to such an extent that the OP Board would realize a significant backlog of examinations resulting in increased wait times for applicants.
If the number of examinations increase from 331 (FY2024 examination count) to the pre-2019 averages due to the provisions in SB16, the financial impact of the OP Board may increase by $1,336,000 or 111% annually over the FY2024 expenses. This increase does not contemplate any additional resources the Board may require for increased examinations.
In addition to the anticipated increased expenses of the Board (paid by the OIC's Operating Fund, 7152), the workers' compensation funds responsible for paying benefits for state occupational pneumoconiosis impairments, if awarded, will also be adversely affected and will likely incur additional costs. These funds include the Old Fund (7162), Uninsured Employer Fund (7163), Guaranty Fund (7164) and Security Fund (7165).
Person submitting Fiscal Note: Rhonda Hartwell
Email Address: rhonda.c.hartwell@wv.gov