FISCAL NOTE
Date Requested: January 14, 2026
Time Requested: 06:03 PM |
| Agency: |
Commerce, WV Dept of |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2281 |
Introduced |
SB1 |
|
|---|
| CBD Subject: |
Economic Development |
|---|
|
FUND(S):
General Revenue - Personal Services
Sources of Revenue:
General Fund
Legislation creates:
Creates New Program
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.
The requirement of the bill to provide resources to provide program management and deal evaluation expertise would require Commerce to hire at least two individuals for program management (marketing as well as application vetting) and likely a third to handle all deal-related compliance/enforcement of credit rules and investment target evaluation. Requirements such as "A growth fund, before making a qualified investment, may request from the department a written opinion as to whether the business in which it proposes to invest is an eligible business" speak to this compliance team requirement, or the program could be better placed with a department/division that has established deal flow financing expertise such as EDA or WVJIT. Language such as "if the department fails to notify the growth fund of its determination by the 20th business day, the business in which the growth fund proposes to invest shall be deemed an eligible business" also speaks to the need for increased staffing to support risk mitigation since WV would not want to see misguided investments due to justifiable delays that may occur by the deal assessment team.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2026
Increase/Decrease
(use"-") |
2027
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
0 |
0 |
| Personal Services |
0 |
300,000 |
300,000 |
| Current Expenses |
0 |
200,000 |
200,000 |
| 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):
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.
$500K/annual increase is an estimate based on the potential need for new/additional staff and the likely need for outside advisors/counsel. $300K is allocated to the potential need for new/additional staff, and $200K is allocated to the potential need for financial consulting services.
Annual revenues from application fees are undetermined at this time, but would likely offset some portion of the cost of compliance.
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 Department of Commerce can only speak to the fiscal impact related to its direct compliance with the proposed new statute. The Department of Revenue, Tax Department, and Insurance Commission may be better able or more suited to discussing the tax effect of the proposed new program.
Person submitting Fiscal Note: Garner Marks
Email Address: garner.marks@wv.gov