FISCAL NOTE
Date Requested: February 18, 2025
Time Requested: 04:55 PM |
| Agency: |
Economic Development Authority, WV |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1953 |
Introduced |
HB2593 |
|
|---|
| CBD Subject: |
Finance and Administration |
|---|
|
FUND(S):
Unknown
Sources of Revenue:
Other Fund Unknown
Legislation creates:
Creates New Expense
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
Summarize in a clear and concise manner what impact this measure will have on costs and revenues of state government.
It is difficult to estimate the cost of this bill as it will most likely require purchasing an in-depth background check on each applicant that cannot be confirmed as having no financial benefit to a foreign entity with values antithetical to those of the State of West Virginia that are documented and demonstrating ownership layers to conclude with individual natural persons. It is impossible to estimate the number of background checks that may be required as many applicants have several principal members that are party to loan documents as co-borrowers and/or guarantors, thereby benefitting from the transaction.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2025
Increase/Decrease
(use"-") |
2026
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):
Please explain increases and decreases in personal services, current expenses, repairs and alterations, assets, other costs and revenues, including assumptions and data sources and delineation between start-up and ongoing costs. Please also include a long-range schedule of costs and revenues if fiscal impact is expected to vary in future years.
I have attempted to obtain an estimate of this type of service but do not yet have a reply.
Using an assumption of cost of $10,000/background investigation, and an average of three persons/applicant business, and 30 applicant businesses/year, I could estimate an expense of at least $900,000-$1,000,000 increase in expense per year.
Memorandum
Please identify any areas of vagueness, technical defects, reasons a bill would not have a fiscal impact, and/or any special issues not captured elsewhere on this form.
This bill would definitely have a negative fiscal impact.
Person submitting Fiscal Note: J. Steven Webb
Email Address: Steven.J.Webb@wv.gov