FISCAL NOTE

Date Requested: March 13, 2017
Time Requested: 01:11 PM
Agency: Agriculture, WV Department of
CBD Number: Version: Bill Number: Resolution Number:
3219 Introduced SB586
CBD Subject: Agriculture


FUND(S):

N/A

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.


    In its current form, SB586 addresses the licensing period for meat and poultry slaughter, processor, and distributor licenses issued by the WV Department of Agriculture's Meat and Poultry Inspection Division. As introduced, this only addresses timing of license renewals; as noted in the 'Memorandum' section below, an increase to license fees should be considered at this time as well.



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 -175 -175
Personal Services 0 0 0
Current Expenses 0 -175 -175
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):


    By establishing a 3-year licensing period for custom slaughter, custom processor, and distributor licensure, it is estimated that the cumulative savings for the first triennial cycle would be approximately $350. This is a result of only mailing the renewal notices and licenses every 3 years instead of annually to the original licensee population. However, as new facilities are established and licensed, it can reasonably assumed that eventually, every year there will be a small portion of license renewal mailings required.



Memorandum


    In addition to changing the license period, it is also recommended that existing fees for these licenses be evaluated for increase. The custom slaughter licenses generate $150 annually, custom processing $125, and distributors $1,150 at existing rates. By increasing the fee for these licenses to $25/each, revenue would increase to $375, $250, and $5,750 ($6,750 total). Under the 3-year license period, the cost for each license would be $75 triennially.



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