FISCAL NOTE

Date Requested: January 23, 2019
Time Requested: 03:42 PM
Agency: Natural Resources, WV Division of
CBD Number: Version: Bill Number: Resolution Number:
2173 Introduced HB2595
CBD Subject: Retirement


FUND(S):

3247

Sources of Revenue:

Special Fund

Legislation creates:

Increases Revenue From Existing Sources, Increases Existing Expenses, Creates New Fund:



Fiscal Note Summary


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


A Bill to create a new retirement system for the Division of Natural Resources (DNR) Police Officers, the Natural Resource Police Officer Retirement System (NRRS.)



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 0 575,000 575,000
Personal Services 0 0 0
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 575,000 575,000
2. Estimated Total Revenues 0 489,614 753,220


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


A portion of the new retirement system would be funded by revenue from the sale of Class CS/LE nonresident stamps. The number of CS/LE nonresident stamps sold for the previous 5 calendar years averages 57,940. The current stamp fee is $13. The bill raises the fee to $26. 50% of CS/LE nonresident stamp sales shall be credited to the Division of Natural Resources Police Officer Retirement Fund created in ยง20-17-6 of code and shall be deposited into that fund. 57,940 x $26 = $1,506,440 50% of $1,506,440 = $753,220 for Fiscal Years after 2020. Several assumptions are required to provide an estimate for nonresident CS/LE stamp sales for the period of July 1, 2019 to December 31, 2019 of FY 2020 because stamp price change would be January 1, 2020. The CS/LE stamp price would change on January 1, 2020. Assumed calendar year sales of 57,940 x new cost of CS/LE stamp $26 = $1,506,440 total sales revenue. 50% of $1,506,440 = $753,220 Amount of annual revenue for new stamp price. The approximate percentage of annual calendar year nonresident sales for license agent and on-line occurring from July 1, 2018 and December 31, 2018 was estimated to be 70% of total nonresident CS/LE sales for the calendar year 2018. Assuming this percentage would continue into calendar year 2019 the estimated revenue for the six month period of July 1, 2019 to December 31, 2019 of Fiscal Year 2020 would be as calculated below. Estimated annual CS/LE nonresident stamp sales 57,940 x total cost of $13 = $753,220 50% of $753,220 = $376,640 Estimated annual revenue for this legislation before fee increase $376,640 x 70% = $263,648 estimated revenues for the six-month period July 1, 2019 to December 31, 2019 of FY 2020. The estimated revenue for the six-month period January 1, 2020 to June 30, 2020 of Fiscal Year 2020 would be calculated as follows: Estimated annual CS/LE nonresident stamp sales 57,940 x total cost of $26 = $1,506,440 50% of $1,506,440 = $753,220 Estimated annual revenue for this legislation after fee increase $753,220 x 30% = $225,966 estimated revenues for the six-month period of January 1, 2020 to June 30, 2020 of FY 2020. $263,648 (July 1, 2019 โ€“ December 31, 2019 revenue) + $225,966 (January 1, 2020 โ€“ June 30, 2020 revenue) = $489,614 Increase in revenue for FY2020 The total estimated required employer contribution amount of the new retirement system as estimated by the Consolidated Public Retirement Board fiscal note is $575,000 for the first year. $489,614 estimated revenue to fund first year โ€“ $575.000 estimated expenditures first year = $85,386 funding gap to be filled with other available special revenue amounts associated with vacancies. For impact on the liabilities and contributions associated with the retirement system see the actuarial note summary submitted by the Consolidated Public Retirement Board.



Memorandum


For additional information concerning this fiscal note, please contact: Colonel Jerry B. Jenkins, Chief DNR Law Enforcement 324 Fourth Avenue South Charleston WV 25303-1228 Office Phone: 304-558-2784 Cell: 304-389-5056 Fax: 304-558-1170 Email: Jerry.B.Jenkins@wv.gov



    Person submitting Fiscal Note: Jennifer Snow
    Email Address: jennifer.l.snow@wv.gov