FISCAL NOTE
Date Requested: January 20, 2022
Time Requested: 02:24 PM |
| Agency: |
Treasurer's Office, WV |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1988 |
Introduced |
SB438 |
|
|---|
| CBD Subject: |
Finance and Administration |
|---|
|
FUND(S):
Cash Management
Sources of Revenue:
Special Fund
Legislation creates:
Creates New Revenue, Creates New Expense
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The proposed legislation creates a new article, titled the “West Virginia Security for Public Deposits Act”, which provides that deposits by counties, municipal corporations, and the state may be secured by a pooled method of collateralization. The Act authorizes a pooled collateralization program to be administered by the State Treasurer’s Office. The pooled method of collateralization refers to securing deposits by accepting the contingent liability for the losses of public deposits of other designated state depositories also choosing this method.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2022
Increase/Decrease
(use"-") |
2023
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
0 |
0 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
0 |
0 |
Explanation of above estimates (including long-range effect):
The legislation will have no impact on general revenue monies or any cost to the taxpayers. The State Treasurer's Office estimates that the total annual costs to administer this program are approximately $217,000 for increased staff, technology, and rating services. Additionally, the office estimates there will be up-front implementation costs for software development of approximately $118,000. Together, this creates a total cost to administer this program of approximately $335,000. However, the legislation authorizes the Treasurer to charge and collect any necessary administrative fees to pay for any costs associated with this program to allow the program to be fiscally self-sufficient. The financial institutions electing to participate in the pooled collateral method will pay a fee to cover the costs of administering the program. This practice is consistent with methods of implementing and administering similar programs in other states.
Memorandum
Person submitting Fiscal Note: James Fuerhoff
Email Address: james.fuerhoff@wvsto.gov