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