FISCAL NOTE

Date Requested: February 22, 2016
Time Requested: 02:54 PM
Agency: Administration
CBD Number: Version: Bill Number: Resolution Number:
2765 Introduced SB619
CBD Subject: Rules


FUND(S):



Sources of Revenue:

General Fund,Special Fund

Legislation creates:

Neither Program nor Fund



Fiscal Note Summary


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


It is difficult for the Department of Administration to estimate the effect on costs and revenues to the agency. The number of rules promulgated by the agency varies from year to year, and depends on legislation enacted that requires the agency to promulgate rules to execute the directives within the legislation.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2016
Increase/Decrease
(use"-")
2017
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):


The number of legislative rules promulgated by the agency can vary from year to year, and depends on any legislation enacted that requires the agency to promulgate rules to execute the directives within the legislation. Currently, the Department of Administration and it's agencies have at least ten active rules relating to small businesses, including guidelines for adoption of projects by the Design Build Board, registration and audits of lobbyists, and rules governing the purchase of commodities and services from the handicapped. During this session, the agency has at least two rules before the legislature that could affect small businesses. The Department of Administration does not collect economic data that would be necessary to compile an economic impact statement as described in the legislation. The bill would allow the agency to work with the economic research entities at both West Virginia University and Marshall University to produce the economic impact statement. Presumably, the institutions would collect the necessary data on behalf of the agency. Historically, these types of services to state agencies have ranged in price from $5,000 to $10,000 for very narrowly-defined reports up to approximately $30,000 for major research reports, depending on the size and scope of the report necessary. Additionally, the bill would require the lead author of the statement or other qualified representative to be available to discuss the statement with the legislature. Such arrangement could cause the agency to incur additional costs for the time of the author or representative. The hourly rate for representatives of the research institutions ranges from approximately $15 per hour for research assistants up to $75 per hour for senior research staff. Other requirements of the proposed legislation include requiring the agency to respond in writing to all public comments received during the public comment period of the rulemaking process. These responses could generally be done by existing staff, however, should a rule generate an unusually large number of comments in a finite period of time, the requirement could be particularly burdensome to the agency.



Memorandum


The Department of Administration anticipates a few bills will be passed this legislative session that will require the agency to promulgate legislative rules to execute the directives of the statute. However, it is unknown at this time how many of these bills will pass during the legislative session, the scope of the research necessary to produce the economic impact statement, or the effect on small businesses at this time.



    Person submitting Fiscal Note: Jennelle H. Jones
    Email Address: jennelle.h.jones@wv.gov