FISCAL NOTE

Date Requested: March 03, 2021
Time Requested: 11:03 AM
Agency: Secretary of State
CBD Number: Version: Bill Number: Resolution Number:
2324 Introduced HB2874
CBD Subject: Military and Veterans


FUND(S):

1617

Sources of Revenue:

General Fund

Legislation creates:

Decreases Existing Revenue



Fiscal Note Summary


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


Secretary of State revenues will decrease insignificantly, but the bill will have no increase in expenses.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2021
Increase/Decrease
(use"-")
2022
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 0 0
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 0 0 0


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


Extending current veteran business registration fee waiver ($100 per registration) and annual report fee waiver ($25 per year, per business), will decrease Secretary of State revenues insignificantly. We estimate there could be 500 annual registrations by qualified military exempt applicants, which amounts to $25,000 annual decrease in business registration annual fees, and $6,250 annual decrease in business annual report fees, for a total of $31,250 annual decrease in revenues. Estimations based on 2017 data reported by governing.com, showing 197 active-duty military in WV, and 7,882 reservists. Reservists called out on "orders" or activated for deployment/stationed elsewhere, is approx. 300 annually. In total, 500 potentially qualified military members (or their spouses/immediate family members) could be expected to open a business and qualify for the fee waivers.



Memorandum


The phrase "immediate family members" is undefined, but under the Secretary of State's interpretation intended to mean "dependents" in the tax-code sense. The Secretary of State has discretion to apply that definition to business fee waiver applicants, or use rule-making authority to clarify the phrase. If desired to clarify via amendment, the phrase could be defined as or replaced with "dependents."



    Person submitting Fiscal Note: Donald Kersey
    Email Address: dkersey@wvsos.gov