FISCAL NOTE
FUND(S):
SPAY NEUTER ASSISTANCE FUND
Sources of Revenue:
Special Fund
Legislation creates:
A New Fund
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The changes proposed by this bill will add additional fees to two categories of feed permits, Large Package Pet Food Over 10lbs. and Commercial Feed Under 10lbs. The Over 10lbs. permit fee is currently $50 and would raise to $75; the Under 10lbs. permit fee is currently $40 and would raise to $50. The additional fee revenue would be placed in a special account created by SB479, the Spay Neuter Assistance Fund. In order to track the amounts due to the new fund, an upgrade to our current computer software would be necessary, costing approximately $12,000. A rule change (61-5-5.3a) completed in 2005 requiring companines registering Large Package Feed to submit labels each year, along with a $10 fee was omitted in SB479. Based on FY2011 registration information, this will cause a decrease of fees in this category of $38,600. With the upgrade of the computer system used to track registrations, the total cost of is $50,600 when considering lost revenue and implementation expenses. Additional staff time would be required to manage the new fund, and in the case of rejected labels, prepare refunds for rejections out of two funds instead of a single fees fund.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2012
Increase/Decrease
(use"-") |
2013
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
12,000 |
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 |
-38,600 |
-38,600 |
-38,600 |
Explanation of above estimates (including long-range effect):
SB479 places fees in WV Code, making it inconsistent with our current treatment of addressing fees in agency rules. By not using current launguage in the Commericial Feed Rule (61-5), companies will no longer submit labels each year for review or a $10 fee. Companies will submit a label once, pay a $10 registration fee and their product is registered permanently. The rule change in 2005 was a result of WVDA Regulatory Officers finding incorrect labeling on feed as companies were not required to submit new labels each year. Permanent registration will result in the loss of $38,600 annually (depending on the number of products registered). Also, a change in the computer software used to track registrations will be required to remove the annual fee and add the additional fees. The cost of this change is $12,000. In total, there will be a net negative fiscal impact of $50,600.
Memorandum
Person submitting Fiscal Note: SANDRA GILLISPIE, DIRECTOR, ADMIN SVCS DIV
Email Address: SGILLISPIE@WVDA.US