FISCAL NOTE
FUND(S):
7152
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.
Passage of HB 2873 as proposed would have an estimated cost to state government of $5,000 the first year and $3,000 per year after full implementation. The insurance commission would absorb these costs.
The impact on the revenues of state government due to companies no longer qualifying for the tax credit is unknown at this time.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2005
Increase/Decrease
(use"-") |
2006
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
5,000 |
3,000 |
| Personal Services |
0 |
4,000 |
3,000 |
| Current Expenses |
0 |
1,000 |
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):
Cost estimates during FY 06 include costs associated with developing an application methodology whereby companies would provide necessary documentation to the Insurance Commission to certify qualifying health care coverage.
It is estimated that the administration of the applications and review processes will take approximately 15 days of an insurance commission's rate and review analyst. This cost averages $3,000 per year.
Revenue impact has not been estimated, due to the unknown quantity of companies that may no longer qualify for the credit.
Memorandum
The Tax department has also submitted a fiscal note relative to this bill that speaks to the revenue impact.
Person submitting Fiscal Note: Michael D. Riley
Email Address: Michael.Riley@wvinsurance.gov