FISCAL NOTE
Date Requested: February 13, 2017
Time Requested: 11:00 AM |
| Agency: |
Agriculture, WV Department of |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1040 |
Introduced |
SB27 |
|
|---|
| CBD Subject: |
Agriculture |
|---|
|
FUND(S):
Sources of Revenue:
General Fund
Legislation creates:
Neither Program nor Fund
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
SB27 establishes permitting and labeling requirements for home-based, micro-processed foods which are prepared for sale. In its current form, the only revenue specifically addressed is the $50/participant permit fees paid by producers to their local health departments. Other inspections and fees are not addressed, as noted in the 'Memorandum' section of this note.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2017
Increase/Decrease
(use"-") |
2018
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):
The Department of Agriculture could coordinate and present an FDA-approved Better Process Control School to participants, at an estimated cost of $20,000. Costs could be fully recovered by participant fees of $400/participant, which would result in a $0 net effect on agency revenue and expenditures. Providing in-state training at this price per participant will be a more cost-effective solution to WV producers, as out-of-state training programs cost $650 or more, plus travel expenses.
Other costs may be incurred for existing Department of Agriculture personnel to review, correct and process label approvals, but since the level of participation in this program is unknown at this time, additional agency expense for carrying out this responsibility cannot be estimated.
Memorandum
SB27's language for WV Code 19-35-5(c) establishes the requirement that 70% of "any produce" for a recipe must be sourced from the vendor's own premises. However, there is no specific language regarding how this requirement will be initially verified or monitored on an ongoing basis. Should Department of Agriculture staff assume this responsibility, it would be reasonable to assume that a $50/visit fee could be assessed for each producer to cover agency travel and time to review production documentation to ensure that the established threshold is met. Since the level of participation in this program is unknown at this time, the amount of agency revenue cannot be estimated.
Person submitting Fiscal Note: Alan Clemans, on behalf of Sandra Gillispie, CFO
Email Address: sgillispie@wvda.us