Date Requested:March 12, 2005
Time Requested:09:52 AM
Agency: State Tax Department
CBD Number: Version: Bill Number: Resolution Number:
2005R1317 Intro HB3000
CBD Subject: Keep Jobs in WV Act
FUND(S)
All State Funds
Sources of Revenue
General Fund,Other Fund
Legislation creates:
A New Program

Fiscal Note Summary

Effect this measure will have on costs and revenues of state government.

    The stated purpose of this bill is to create the “Keep Jobs in West Virginia Act.” This Act provides that state contracts, local government contracts funded with state money, or state development assistance may not be awarded to vendors, contractors or applicants for development assistance that perform the work at a site outside of the United States.
    
    As written, the bill would prohibit contracting with, or providing economic assistance to, companies that ship work offshore. According to our interpretation, there would no change in State revenue as a result of passage of this bill.
    
    All State agencies would experience additional administrative costs of an unknown amount as a result of passage of this bill. The additional costs would be attributable to the initial and ongoing compliance checks necessary to ascertain that vendors are in compliance with the bill’s provisions.

Fiscal Note Detail
Over-all effect
Effect of Proposal Fiscal Year
2005
Increase/Decrease
(use"-")
2006
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
3. Explanation of above estimates (including long-range effect):
    Passage of this bill would create the “Keep Jobs in West Virginia Act.” The Act provides that state contracts, local government contracts funded with state money, or state development assistance may not be awarded to vendors, contractors or applicants for development assistance that perform the work at a site outside of the United States.
    
    As written, the bill would prohibit contracting with, or providing economic assistance to, companies that ship work offshore. According to our interpretation, there would no change in State revenue as a result of passage of this bill.
    
    All State agencies would experience additional administrative costs of an unknown amount as a result of passage of this bill. The additional costs would be attributable to the initial and ongoing compliance checks necessary to ascertain that vendors are in compliance with the bill’s provisions.


Memorandum
Person submitting Fiscal Note:
Mark Muchow
Email Address:
kpetry@tax.state.wv.us
    The stated purpose of this bill is to create the “Keep Jobs in West Virginia Act.” This Act provides that state contracts, local government contracts funded with state money, or state development assistance may not be awarded to vendors, contractors or applicants for development assistance that perform the work at a site outside of the United States.
    
    As written, the bill may be subject to litigation as to its constitutionality relative to the Commerce Clause of the U.S. Constitution.