FISCAL NOTE



FUND(S):



Sources of Revenue:

Special Fund

Legislation creates:

A New Program,A New Fund



Fiscal Note Summary


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


The purpose of this legislation is to create a new Office of the Small Business Advocate within the Department of Commerce. The Small Business Advocate will be appointed by the Governor.This office will advocate for start-ups, entrepreneurs,small employers and small businesses before administrative and judicial bodies.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2014
Increase/Decrease
(use"-")
2015
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 610,500 610,500
Personal Services 0 310,500 310,500
Current Expenses 0 300,000 300,000
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 0 0
2. Estimated Total Revenues 0 610,500 610,500


Explanation of above estimates (including long-range effect):


The above estimate is based on total new staff of five people. One of which must be an attorney in order to be able to represent small businesses in judicial matters as this bill calls for. Since this is a totally new Division within the Department of Commerce funds must also budgeted to obtain new office space ,as well as necessary office equipment , and various research aids necessary to fulfill the mission of the agency. The bill also calls for the office to hold workshops yearly in all 55 counties. So this would mean that it would be necessary for the Advocate's Office to set aside funds to cover staff travel , meeting room rentals , as well media costs to promote these events. This bill calls for this office to be funded by a $5.00 fee on all new business licenses , a $100.00 fee charged to each small business that avails itself of the Advocate's services ,as well as donations obtained from small businesses.



Memorandum


We were unable to determine how many new business licenses are issued each year by the Tax Department , but we doubt that the $5.00 business license fee would be adequate to fund this office at any level. It is our belief that this fee would have to be the primary funding mechanism for the Small Business Advocate's Office because of the variable nature of the other funding sources.



    Person submitting Fiscal Note: Carl D Smith
    Email Address: carl.d.smith@wv.gov