FISCAL NOTE

Date Requested: March 01, 2017
Time Requested: 12:13 PM
Agency: Economic Development Authority, WV
CBD Number: Version: Bill Number: Resolution Number:
2798 Introduced SB485
CBD Subject: Corporations


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.


    This bill takes $25 million from the West Virginia Board of Treasury Investments to create a new program to assist in the financing of the expansion of broadband in West Virginia.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2017
Increase/Decrease
(use"-")
2018
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost -25,000,000 0 0
Personal Services 5,000 5,000 0
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 0 0
2. Estimated Total Revenues 50,000 50,000 0


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


    Revenue estimate is calculated based on average loans outstanding of $12.5 million at an interest rate of 4%. Any revenues are transferred back to the West Virginia Board of Treasury Investments as a return of their investment.



Memorandum


    The West Virginia Enterprise Capital Fund, LLC was established approximately fifteen years ago to administer funds utilized in promoting and expanding venture capital money in West Virginia.
    
    That entity formed by WVEDA has a total different purpose and I would discourage co-mingling funds from this endeavor in the WV Enterprise Capital Funds, LLC.
    
    If approved the WV Board of Treasury Investment non-recourse loan could go direct to the WV Economic Development Authority and eliminate reference to WV Enterprise Capital Fund, LLC.



    Person submitting Fiscal Note: David Warner, Executive Director
    Email Address: David.A.Warner@wv.gov