FISCAL NOTE
Date Requested: February 04, 2019
Time Requested: 01:02 PM |
| Agency: |
Racing Commission, WV |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1534 |
Introduced |
HB2837 |
|
|---|
| CBD Subject: |
Agriculture |
|---|
|
FUND(S):
Special Revenue
Sources of Revenue:
Special Fund
Legislation creates:
Creates New Revenue, Increases Existing Expenses
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The impact HB2837 will have on State government will be fiscally neutral. While HB2837 allocates a portion of the revenue generated by advance deposit wagering to the West Virginia Racing Commission, it will be offset by the expense incurred to regulate the activity.
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 |
120,000 |
120,000 |
| Personal Services |
0 |
70,000 |
70,000 |
| Current Expenses |
0 |
50,000 |
50,000 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
120,000 |
120,000 |
Explanation of above estimates (including long-range effect):
It has been estimated that HB2837 will result in approx.. $10 million in total handle. A source market fee of 6% would result in $600,000 of revenue for the racing industry in West Virginia. However, as outlined in HB2837, the West Virginia Racing Commission receives 1% of total ADW handle. The result is an estimated $100,000 in revenue to the State agency. In addition to the amount generated from ADW handle, HB2837 creates a license fee of $5,000 for any entity applying to operate ADW in West Virginia. It is projected that 4 companies would apply for an ADW license in West Virginia, generating $20,000 in revenue. The Racing Commission would need to employee an Accountant/Auditor to carry-out the regulatory duties resulting from HB2837. The estimated Personal Services and Employees Benefits are $70,000. The remaining revenue would certainly be offset by such Current Expenses as Training & Development, Computer Software, Contractual Services & Attorney Fees.
Memorandum
While HB2837 allocates a portion of the revenue generated by advance deposit wagering to the West Virginia Racing Commission, it will be offset by the expense incurred to regulate the activity.
Person submitting Fiscal Note: Joe Moore, WVRC Executive Director
Email Address: joe.k.moore@wv.gov