FISCAL NOTE

Date Requested: February 05, 2019
Time Requested: 01:29 PM
Agency: Treasurer's Office, WV
CBD Number: Version: Bill Number: Resolution Number:
2883 Introduced SB523
CBD Subject: Crime


FUND(S):

Special Revenue

Sources of Revenue:

Special Fund

Legislation creates:

Creates New Revenue, Creates New Expense, Creates New Program, Creates New Fund: Human Trafficking and Child Exploitation Prevention Grant Fund



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 purpose of this bill is to prohibit retailers from selling or leasing products that make content accessible on the Internet, unless the product contains an active and operating digital blocking capability that renders obscene material inaccessible. Steps to deactivate the digital blocking capability include a $20 fee to be remitted to the Human Trafficking and Child Exploitation Prevention Grant Fund created in the State Treasury. The fee is to be remitted quarterly to the Treasurer and the Attorney General is authorized to make grants from the Fund. In addition to the fee, fines are also to be deposited into the Fund. The bill requires 5 other states to enact this legislation before it becomes effective in West Virginia. A quick review of what other states have enacted similar legislation did not locate any. Georgia and Texas considered similar legislation in 2017, but neither bill was enacted. Therefore, it will be some time before this bill could go into effect. Collections of the fees and penalties would be handled similarly to other fees and penalties collected by the State Treasurer’s Office. We have developed software for these types of collections to facilitate their accurate remittance. If these fees and penalties go into effect, we anticipate modifying our software to add them to our processes. The cost associated with making the modifications is estimated to be approximately $2500. We have no means of estimating the amount of income that would be generated from the fees and penalties. We suggest contacting the Attorney General for information on the expenses it anticipates in connection with making the grants and administering the Fund.



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 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):


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. There is no way to know when the bill could go into effect if enacted. Until 5 other states enact similar legislation, Senate Bill 523 will not go into effect. Therefore, we are unable to establish when the revenue and expenses would begin.



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. See Fiscal Note Summary



    Person submitting Fiscal Note: Diana Stout
    Email Address: diana.stout@wvsto.com