Date Requested: February 10, 2015
Time Requested: 11:08 AM
Agency: Workers' Compenation
CBD Number: Version: Bill Number: Resolution Number:
1406 Introduced SB57
CBD Subject: Workers Comp.


FUND(S):

7162, 7163, 7164, 7165, 7152, 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.


    Senate Bill 57, if enacted, would significantly increase the expenses of the Worker's Compensation Old Fund and significantly increase the Old Fund's deficit balance. SB57 would also increase the expenses for the Uninsured Employer's Fund (UEF), the Self-insured Guaranty Risk Pool, the Self-insured Security Risk Pool, the State Entities Workers Compensation Program Fund and all state agencies that participate in that program.
    
    The estimates for the increased expenses, increased Old Fund deficit and the impact on the solvency of the other OIC Funds requires complex actuarial analysis and is not available at this time.
    
    Please see the memorandum to this fiscal note for additional information.



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


    Senate Bill 57, if enacted, would have significant negative fiscal impact on the Worker's Compensation Old Fund, the Uninsured Employer's Fund, the Self-insured Guaranty Risk pool, the Self-insured Security Risk pool, and the State Entities Worker's Compensation Program Fund and all participants therein.
    
    SB57, if enacted, would make the weighing of worker's compensation evidence a liberal interpretation, permit parties to submit evidence after the PTDRB has made an initial determination, change the application standard to file for a PTD benefit to 40%, make PTD benefits lifetime, allow for carpel tunnel and occupational disease to be included in the aggregation of PTD benefits, require that reviews of PTDs cease after the age of 60 and limits voc rehab job searches to 30 miles.
    
    The impact of each provision of SB57 on each of the above listed Funds must be evaluated separately by an actuarial firm in order to estimate the magnitude of the negative fiscal impact. It should also be noted that SB57 will increase worker's compensation insurance rates for employers in WV. As employers, all state agencies would be impacted with increased worker's compensation costs.



    Person submitting Fiscal Note: Melinda Kiss
    Email Address: Melinda.Kiss@wvinsurance.gov