FISCAL NOTE

Date Requested: January 16, 2019
Time Requested: 01:57 PM
Agency: Tax & Revenue Department, WV State
CBD Number: Version: Bill Number: Resolution Number:
2147 Introduced HB2455
CBD Subject: Education (Higher), State Personnel, Taxation


FUND(S):

Medical School Fund, Public Employees Insurance Agency Special Fund

Sources of Revenue:

Special Fund

Legislation creates:

Creates New Fund: Public Employees Insurance Agency Special Fund



Fiscal Note Summary


Effect this measure will have on costs and revenues of state government.


    The stated purpose of this bill is to redirect excise tax revenue on bottled soft drinks from certain West Virginia University schools to the Public Employees Insurance Agency.
    
    According to the provisions of this bill, effective July 1, 2019, revenue from the Soft Drinks Tax would be deposited in a special fund in the State Treasury to be used solely to supplement existing funding for the Public Employees Insurance Agency. Money from the Soft Drinks Tax currently is deposited in the Medical School Fund and used to fund WVU Health Science professional programs. Passage of this bill would result in a loss of $14.7 million for the Medical School Fund and a gain of $14.7 million to fund PEIA.
    
    Additional administrative costs incurred by the State Tax Department would be $5,000 in FY2019.
    
    



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 5,000 0 0
Personal Services 0 0 0
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 5,000 0 0
2. Estimated Total Revenues 0 0 0


Explanation of above estimates (including long-range effect):


    According to the provisions of this bill, effective July 1, 2019, revenue from the Soft Drinks Tax would be deposited in a special fund in the State Treasury to be used solely to supplement existing funding for the Public Employees Insurance Agency. Money from the Soft Drinks Tax currently is deposited in the Medical School Fund and used to fund WVU Health Science professional programs. Passage of this bill would result in a loss of $14.7 million for the Medical School Fund and a gain of $14.7 million to fund PEIA.
    
    Additional administrative costs incurred by the State Tax Department would be $5,000 in FY2019
    



Memorandum


    The stated purpose of this bill is to redirect excise tax revenue on bottled soft drinks from certain West Virginia University schools to the Public Employees Insurance Agency.
    
    The statement of the effective date retains archaic language. Also, deleting language and changing an effective date creates a gap in the code between passage and the effective date. In other words, after passage, there is no code directing the funds to anything until the effective date.
    
    



    Person submitting Fiscal Note: Mark Muchow
    Email Address: kerri.r.petry@wv.gov