FISCAL NOTE
Date Requested: January 28, 2026
Time Requested: 03:19 PM |
| Agency: |
Labor, WV Division of |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2944 |
Introduced |
SB616 |
|
|---|
| CBD Subject: |
Professions and Occupations |
|---|
|
FUND(S):
WV Contractor Licensing Board Fund
Sources of Revenue:
Special Fund
Legislation creates:
Decreases Existing Revenue, Decreases Existing Expenses
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The Contractor Licensing Board brings in approximately $1.6 million in revenue per year from initial license applications and license renewals.
Per the Contractor Licensing Board's 2025 Annual Report, the Board incurred costs of $767, 526.25 in personal services and $4,800 in Board member per diem compensation.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2026
Increase/Decrease
(use"-") |
2027
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
0 |
0 |
| Personal Services |
0 |
767,526 |
767,526 |
| Current Expenses |
0 |
4,800 |
4,800 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
1,600,000 |
1,600,000 |
| 2. Estimated Total Revenues |
0 |
-827,673 |
-827,673 |
Explanation of above estimates (including long-range effect):
The Contractor Licensing Board brings in approximately $1.6 million in revenue per year from initial license applications and license renewals.
Per the Contractor Licensing Board's 2025 Annual Report, the Board incurred costs of $767, 526.25 in personal services and $4,800 in Board member per diem compensation.
If the Contractor Licensing Board were abolished, the state would lose approximately $827,673 in revenue per year.
Memorandum
In addition to the approximate $827,673 annual loss in revenue that would result if the Contractor Licensing Board was terminated, the Board also generates a significant amount of revenue which would be lost for both the Secretary of State and the Tax Department because the Contractor Licensing Act requires all entities to register their business with the Secretary of State and obtain a Business Registration Tax Number from the Tax Department before the entity can be licensed with the Contractor Licensing Board.
Further, the Contractor Licensing Board issues, on average, 300 cease and desist orders per year, and out of those, high percentages of contractors to whom the cease and desist orders were issued typically were not registered with the Tax Department, the Secretary of State, and did not carry the required workers’ compensation insurance nor the required unemployment compensation insurance.
Person submitting Fiscal Note: Brooke Farber
Email Address: brooke.m.farber@wv.gov