FISCAL NOTE

Date Requested: January 09, 2019
Time Requested: 05:02 PM
Agency: Highways, Division of
CBD Number: Version: Bill Number: Resolution Number:
1438 Introduced HB2110
CBD Subject: Natural Resources, Taxation


FUND(S):

State Road Fund

Sources of Revenue:

Special Fund

Legislation creates:





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. HB2110 will have a small increase in administrative costs to handle and document the use new from severance tax fund. Depending upon the size and type of project may require technical personnel. This Bill will make an increase in Highways budget to repair secondary roads. It should encourage the addition of development and industry activities.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2019
Increase/Decrease
(use"-")
2020
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 30,000 30,000 30,000
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 30,000 30,000 30,000


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. The Division of Highways (DOH) lacks sufficient information to give a cost estimate until we go through the rule making processes to determine the scope of the program. DOH is not aware of all the deductions to the Oil and Gas severance tax receipts. The absence of this information makes it very vague to compare costs of this fund. Personnel expenses should be minimal to administer this fund due to some of the functions being performed at organizational personnel already in place at the districts and counties.



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. The impact will be positive for our secondary road program. It is not expected to relieve the industry and operators of correcting their damages by our agreements. This bill gives us the funding to correct the problems that hamper the local citizens on concerns they wanted done plus the industry will partner on these projects. Joint rules are not common;DOH suggests two separate rules on HB2011. There are concerns regarding the creation of certain funds from the Treasury Office. DOH recommendation to consider disbursement by State Treasury Office to State Road Fund to disburse to affected districts/counties.



    Person submitting Fiscal Note: Lorrie Hodges
    Email Address: lorrie.a.hodges@wv.gov