FISCAL NOTE
Date Requested: January 15, 2015
Time Requested: 06:40 PM |
| Agency: |
Insurance Commission |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1405 |
Introduced |
|
|
|---|
| CBD Subject: |
Workers Comp. |
|---|
|
FUND(S):
7162, 7163, 7164, 7165, 7173
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.
Please see the memorandum below regarding the fiscal impact of
CBD #2015R1405 introduced by Senator Yost.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2015
Increase/Decrease
(use"-") |
2016
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):
Memorandum
This Bill states that the Legislature finds that the Worker's Compensation Old Fund deficit has been resolved. That is factually incorrect and creates a technical defect in the proposed legislation. The Worker's Compensation Old Fund still maintains a deficit balance. The June 30, 2014 audited financial statements of the Offices of the Insurance Commissioner indicated a deficit balance in the Old Fund of $350,309,000 on a discounted basis (discount rate 5%). On an undiscounted (nominal) basis, the Old Fund deficit at June 30, 2014 was estimated to be $1,260,309,000.
It is unknown at this time what the legal and fiscal impact of the removal of the emergency provisions from ยง23-1-1 would be on the Old Fund's deficit. It is also unknown at this time what the impact of the removal of the requirement of weighing of the evidence and reversion back to the Rule of "liberal construction" in deciding worker's compensation cases would be on the Old Fund and other worker's compensation related funds that the OIC administers. However, it is highly likely that those provisions would significantly increase the Old Fund's deficit and negatively impact the solvency of the other Funds.
As currently drafted, the proposed legislation also has the potential to negatively impact (increase) the insurance premium rates paid by WV employers.
Person submitting Fiscal Note: Melinda Kiss
Email Address: Melinda.Kiss@wvinsurance.gov