FISCAL NOTE
Date Requested: January 24, 2018
Time Requested: 11:35 AM |
| Agency: |
Financial Institutions, West Virginia Division of |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1966 |
Introduced |
HB4285 |
|
|---|
| CBD Subject: |
Corporations |
|---|
|
FUND(S):
SPECIAL
Sources of Revenue:
Special Fund
Legislation creates:
Increases Revenue From Existing Sources
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
CHANGE WOULD ALLOW WEST VIRGINIA TO DISCONTINUE USE OF ITS STATE-SPECIFIC TEST AND ADOPT THE UNIFORM STATE TEST USED BY MAJORITY OF OTHER STATES. OTHER STATES ADOPTING THE UNIFORM TEST HAVE SEEN INCREASES IN NUMBER OF APPLICANTS RANGING FROM 33% TO 253%. APPLYING A CONSERVATIVE PERCENT INCREASE, THE WEST VIRGINIA DIVISION OF FINANCIAL INSTITUTIONS (“WVDFI”) ESTIMATES ANNUAL REVENUES WILL INCREASE BY APPROXIMATELY $290,000 BEGINNING IN FY2019. INCREASE IN APPLICANTS WILL REQUIRE THE HIRING OF ONE EMPLOYEE AT AN ESTIMATED ANNUAL COST OF $48,000 WHICH INCLUDES BENEFITS, EQUIPMENT, AND TRAINING.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2018
Increase/Decrease
(use"-") |
2019
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
47,500 |
47,500 |
| Personal Services |
0 |
44,500 |
44,500 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
3,000 |
3,000 |
| 2. Estimated Total Revenues |
0 |
290,000 |
290,000 |
Explanation of above estimates (including long-range effect):
THE WVDFI ESTIMATES THE CHANGE WILL INCREASE ITS NUMBER OF APPLICANTS BY APPROXIMATELY 50%. BASED ON THAT ESTIMATE, THE REVENUES WILL INCREASE BY APPROXIMATELY $290,000 PER YEAR. THE WVDFI WOULD NEED ONE EMPLOYEE TO PROCESS THE INCREASE IN APPLICANTS AND TO ADMINSTER OTHER STATUTORY REQUIRED DUTIES AT AN ESTIMATED ANNUAL COST OF $48,000.
Memorandum
IF THE BILL DOES NOT PASS, THEN WEST VIRGINIA WOULD BE ONLY ONE OF TWO STATES THAT CONTINUE TO REQUIRE A STATE SPECIFIC TEST. THE STATE SPECIFIC TEST WOULD REQUIRE THE APPLICANT TO TRAVEL TO CHARLESTON, WEST VIRIGNIA TO TAKE THE EXAM AND ALSO WOULD REQUIRE THE WVDFI TO DEVELOP, ADMINISTER, AND MONITOR THE TEST. CURRENTLY, THE TEST IS DEVELOPED AND MAINTAINED BY THE CONFERENCE OF STATE BANK SUPERVISORS AND OFFERED ON A NATIONAL PLATFORM PROVIDED BY PROMETRIC, BUT THAT WILL END IN SEPTEMBER 2018 WITHOUT IMPLEMENTATION BY WEST VIRGINIA. WITHOUT PASSAGE, THE WVDFI ANTICIPATES REVENUES FROM MORTGAGE LICENSING WILL DECREASE SIGNIFICANTLY AS MORTGAGE LOAN ORIGINATORS ARE UNABLE TO OBTAIN LICENSES EFFICIENTLY.
Person submitting Fiscal Note: CHRISTOPHER R. ARTHUR
Email Address: carthur@wvdob.org