FISCAL NOTE

Date Requested: March 14, 2017
Time Requested: 11:20 AM
Agency: Agriculture, WV Department of
CBD Number: Version: Bill Number: Resolution Number:
1823 Amendment HB2552
CBD Subject: Agriculture


FUND(S):

1481 - WV Spay Neuter Assistance Fund

Sources of Revenue:

Special Fund

Legislation creates:

Neither Program nor Fund



Fiscal Note Summary


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


HB2552 (Amended) establishes a method to fund the WV Spay Neuter Assistance Program via an increase in the fee assessed for both pet food package registrations of packages exceeding 10 pounds as well as those under 10 pounds. This program, established in 2013, was previously unfunded; this proposal will establish a reliable external revenue stream of approximately $200,000 per year to the Special Revenue fund dedicated to spay neuter activities.



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 53,600 47,600
Personal Services 0 47,600 47,600
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 6,000 0
2. Estimated Total Revenues 0 908,850 908,850


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


There are 2,302 large package products (>10 pounds) currently registered as of the date of this Fiscal Note. Based on this number of registrations, the $100 increase would generate an estimated $230,200 per year exclusively for the Spay Neuter Assistance Fund. There are 9,695 small package products (<=10 pounds) currently registered; based on this number of registrations, the additional $40 would generate $678,650 for the Spay Neuter Assistance Fund. The actual revenue amount will vary slightly from year to year due to the fluctuation in the number of products registered annually. A new 1.00 FTE position for a Registration Specialist is requested at $34,000/year (plus benefits). The additional staff member would help equalize the workload of existing staff and avoid registration backlogs or delays. In the case of this fee increase, the position would focus on reconciling registrations to ensure that fees are properly split between the Agriculture Fees Fund and Spay Neuter Assistance Fund. This position would also identify erroneous registrations and process refunds in a timely manner to avoid an overstated balance in the Spay Neuter Assistance Fund. To aid in the tracking and reconciliation process, enhancements to the agency’s existing registration management software would also be required in the first year at an estimated cost, along with new work space for the new employee and other miscellaneous implementation costs would result in $6,000 in initial expenses as well.



Memorandum


In order for consistency with the current State Rule for these package registrations, 19-14-5(e)(1) should be updated to read "...shall be registered annually." instead of "permanently." Additionally, upon passage of HB2552, the Department of Agriculture would need to submit an improvement package for Fund 1481 (WV Spay Neuter Assistance Fund) in order to increase the spending authority of this Appropriated Special Revenue fund to a level sufficient to expend the anticipated revenue in order to fully implement the program. In recognition of the administration required for the Spay Neuter Assistance Fund, it is requested that an amount of not more than ten percent (10%) of annual revenue be retained by the Department of Agriculture to support administrative activities. Additionally, consideration is requested to remove the expiration on the fee increases; instead, at the end of the initial ten (10) year period, all fees would remain at the adjusted levels and could be wholly deposited into the Agriculture Fees Fund to support Department of Agriculture programs.



    Person submitting Fiscal Note: Alan Clemans, on behalf of Sandra Gillispie, CFO
    Email Address: sgillispie@wvda.us