New Funds

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.

    This bill appears to place responsibilities for the implementation of its contents on four separate agencies in WV: the State Treasurer's Office, the State Tax Commission, the Department of Health and Human Resources, and the Department of Natural Resources. The State Tax Commission, the Department of Health and Human Resources, and the Department of Natural Resources should also be contacted to provide fiscal notes on this bill.
    This fiscal note only pertains to the estimated revenues and expenditures for the State Treasurer's Office.
    The State Treasurer's Office would receive reports on or before March 1st of each year from dealers which contain the dollar value of the total deposits collected by the dealers on beverage containers sold within the state.
    Annually, the State Treasurer's Office would disburse 0.13 cents per container to certified redemption centers, would leave $1.0 million available for the administration of the fund and would transfer the remaining funds to the Community Litter Control Fund.

Fiscal Note Detail

Effect of Proposal Fiscal Year
Fiscal Year
(Upon Full
1. Estmated Total Cost 0 125,000 102,500
Personal Services 0 36,500 36,500
Current Expenses 0 78,500 65,000
Repairs and Alterations 0 0 0
Assets 0 10,000 1,000
Other 0 875,000 1,897,500
2. Estimated Total Revenues 0 1,000,000 3,000,000

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

    This bill has some similarities to a "bottle bill" in the State of Michigan that has been on the books since 1976. In FY2002, Michigan collected approximately $32.0 million from its bottle tax. Taking WV's siz and population into consideration versus Michigan's size and population, WV might expect to collect $3.0 million per year once the program is fully implemented. In its early years of operation, the program may generate as little as $1.0 million per year.
    FY2006 costs are attributed to setting up a system for collecting the reports and disbursing the appropriate funds to redemption centers. All other revenues greater than $1.0 million would be transferred to the Community Litter Control Fund which would be operated by the Department of Natural Resources.
    The costs listed above do not take into account the costs of the other state agencies with responsibilities under this bill.


    20-10-4 Redemption centers are to be certified by a commission. Is that the Tax Commission or the Department of Human Resources? This is a vague area of the bill.
    When redemption centers reques funds from the state on their reports, it appears the reports go to the Department of Health and Human Resources. On what basis would the State Treasurer's Office be able to pay a redemption center when the reports are not sent to his office?
    The dealers are required to submit reports annually to the State Treasurer's Office yet, payments to redemption centers can occur up to twice a month. There may be times in the first year of operation where no revenues from dealers exist to pay requests for payments from redemption centers.
    The previous 3 paragraphs are a quick review of the bill that may need to be reviewed by your legal staff. Feel free to contact me should you not understand my comments.

    Person submitting Fiscal Note: Blair Taylor
    Email Address: