FISCAL NOTE
FUND(S):
Joint Committee on Government and Finance
Sources of Revenue:
General Fund
Legislation creates:
Neither Program nor Fund
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The legislation will require the Joint Committee on Government and Finance to hire 2 additional employees with backgrounds in economics to review, analyze, and provide comments on proposed legislative rules. Assuming that the employees will receive an annual salary of $37,000, the total additional cost will be $102,970 including benefits.
Submittal of the proposed cost/benefit analysis will be conducted electronically using the same platform as is currently being utilized for the submission of fiscal notes. This would be at no additional cost to the Joint Committee.
Below is the number of rules promulgated by the Legislative Rulemaking Committee for the last 3 years.
2004 - 77 rules
2003 - 108 rules
2002 - 100 rules
The costs to state agencies to comply with the new legislation will depend on a number of factors.
1. How many rules are submitted annually by the agency. All agencies do not submit the same number of rules. Between July 2001 and January 2005, the Insurance Commission submitted 28 proposed rules, Division of Air Quality submitted 23 proposed rules and the Division of Health submitted 18 proposed rules. For these entities who submit 5 or more rules a year, the cost will be higher.
2. The amount and type of information collected by the agency. If an agency is proposing a new rule, more information may need to be collected as opposed to a rule change where certain information is already being collected (i.e. the number of affected applicants, permittees, application cost, etc.). The more information collected or possessed by the agency, the less cost will likely be incurred by the agency.
3. The level of effort needed to comply with the proposed rule. If compliance with the proposed rule requires the addition or subtraction of known resources, agencies should be able to calculate this cost. If compliance with the proposed rule requires significant expenditure of resources by the affected population, it will be more costly for the agency to determine this cost.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2005
Increase/Decrease
(use"-") |
2006
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
102,970 |
102,970 |
| Personal Services |
0 |
102,970 |
102,970 |
| 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):
Costs include the addition of two new employees receiving a salary of $37,000 per year. Costs are for salaries and benefits totalling $102,970 per fiscal year. Costs do not include additional office supplies, computers, office space, etc. FIscal impact could also be affected by any future increase in salary received by the employees. The additional costs assumes that the new employees will choose PEIA benefits for a family.
Memorandum
Person submitting Fiscal Note: Paul Barnette
Email Address: plbarnet@mail.wvnet.edu