FISCAL NOTE

Date Requested: January 30, 2020
Time Requested: 01:51 PM
Agency: Racing Commission, WV
CBD Number: Version: Bill Number: Resolution Number:
2379 Introduced HB4438
CBD Subject: Agriculture


FUND(S):

Special Revenue

Sources of Revenue:

Special Fund

Legislation creates:

Creates New Revenue, Creates New Expense, Increases Existing Expenses



Fiscal Note Summary


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


    The impact HB4438 will have on State government will be fiscally neutral. While SB403 allocates a portion of the revenue generated by advance deposit wagering to the West Virginia Racing Commission, it will be offset by the expense incurred to regulate the activity.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2020
Increase/Decrease
(use"-")
2021
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 120,000 120,000
Personal Services 0 70,000 70,000
Current Expenses 0 50,000 50,000
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 0 0
2. Estimated Total Revenues 0 120,000 120,000


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


    It has been estimated that HB4438 will result in approx.. $10 million in total handle. A source market fee of 5% would result in $500,000 of revenue for the racing industry in West Virginia. However, as outlined in HB4438, the West Virginia Racing Commission receives 1% of total ADW handle. The result is an estimated $100,000 in revenue to the State agency. In addition to the amount generated from ADW handle, HB4438 creates a license fee of $5,000 for any entity applying to operate ADW in West Virginia. It is projected that 4 companies would apply for an ADW license in West Virginia, generating $20,000 in revenue. The Racing Commission would need to employee an Accountant/Auditor to carry-out the regulatory duties resulting from HB4438. The estimated Personal Services and Employees Benefits are $70,000. The remaining revenue would certainly be offset by such Current Expenses as Training & Development, Computer Software, Contractual Services & Attorney Fees.



Memorandum


    While HB4438 allocates a portion of the revenue generated by advance deposit wagering to the West Virginia Racing Commission, it will be offset by the expense incurred to regulate the activity.



    Person submitting Fiscal Note: Joe Moore, WVRC Executive Director
    Email Address: joe.k.moore@wv.gov