FISCAL NOTE
Date Requested: February 14, 2020
Time Requested: 11:52 AM |
| Agency: |
Environmental Protection, Department of |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 3224 |
Introduced |
SB784 |
|
|---|
| CBD Subject: |
Crime |
|---|
|
FUND(S):
SB784 does not create a fund
Sources of Revenue:
Special Fund
Legislation creates:
Creates New Revenue, Increases Existing Expenses
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
Summarize in a clear and concise manner what impact this measure will have on costs and revenues of state government.
SB784 creates a permitting requirement for specific nonferrous metal recyclers, both buyers and sellers. The buyers, called secondary metals recyclers, may be charged a permitting fee of $200 for each county in which the buyer purchases nonferrous metals. Sellers must also obtain a permit, at no charge, to sell these metals but are subject to a $10 replacement fee if the permit is lost or destroyed.
DEP does not know the exact number of nonferrous recyclers in West Virginia, but estimates it to be approximately 200, after factoring in the exemptions stated in SB784. Based on this estimate, DEP would issue approximately $40,000 in permits every two years, providing annual operating revenue of $20,000.
Anticipated expenditures would include additional personnel to issue permits and conduct on-site monitoring of the secondary metals recyclers records, office space and related costs, and travel costs. These expenditures are expected to be significantly greater than the revenue collected from permitting fees.
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 |
62,660 |
58,660 |
| Personal Services |
0 |
50,160 |
50,160 |
| Current Expenses |
0 |
8,500 |
8,500 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
4,000 |
0 |
| Other |
0 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
40,000 |
20,000 |
Explanation of above estimates (including long-range effect):
Please explain increases and decreases in personal services, current expenses, repairs and alterations, assets, other costs and revenues, including assumptions and data sources and delineation between start-up and ongoing costs. Please also include a long-range schedule of costs and revenues if fiscal impact is expected to vary in future years.
No revenue or expenditures are expected during FY2020, given the time that would be needed to establish procedures, rules, and hire an employee.
During FY2021, it's expected that one employee will be hired to issue the permits and perform on-site monitoring of the recycler's collection records. Salary and benefits will be approximately $50,160 annually. Current expenses would be office space rent ($1,000), telecommunications ($720), and travel costs ($6,780). A computer ($3,000) and office furniture ($1,000) would also need to be acquired the first year of operation. Revenues are expected to be at approximately $40,000.
Upon full implementation, average annual revenue is expected to be a maximum $20,000, given that the permit fee is valid for two years. Expenditures are expected to remain at a constant level of approximately $58,660, exceeding revenues by $38,660 annually and causing DEP to find other funding to cover the deficit.
Memorandum
Please identify any areas of vagueness, technical defects, reasons a bill would not have a fiscal impact, and/or any special issues not captured elsewhere on this form.
SB784 doesn't specify how the fines will be disbursed, therefore those revenues were not included in the calculations above.
SB784 does not establish or specify a fund to which the permit fees will be deposited. Nor does it specify how the funds are to be used.
Subsection(j) subdivision(2) refers to provisions in subsection(g) subdivision(5). There is no subsection(g) in SB784.
Person submitting Fiscal Note: Gary Rogers
Email Address: gary.w.rogers@wv.gov