FISCAL NOTE

Date Requested: January 10, 2018
Time Requested: 02:47 PM
Agency: Agriculture, WV Department of
CBD Number: Version: Bill Number: Resolution Number:
1256 Introduced SB86
CBD Subject: Agriculture


FUND(S):

Special Revenue

Sources of Revenue:

Special Fund

Legislation creates:

Creates New Revenue, Creates New Expense, Creates New Program



Fiscal Note Summary


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


SB86 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
2018
Increase/Decrease
(use"-")
2019
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):


Cost may be incurred for Department of Agriculture personnel to review, correct and process label approvals. An initial estimate has been developed of $10/label, but since the level of participation in this program is unknown at this time, additional agency expense for carrying out this responsibility cannot be reasonably estimated. 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. Producers would incur other ongoing expenses as well, such as product testing. Some testing is currently being done for free by West Virginia University, but per-test fees may be charged to producers in the future in order to support the testing program.



Memorandum


SB86's language for WV Code 19-35-5(c) references WV Department of Agriculture labeling standards. Label reviews are conducted using the criteria and standards promulgated by the Food and Drug Administration and detailed in that agency's publication, "A Food Labeling Guide: Guidance for Industry." Additionally, while SB86 will be under Chapter 19 of WV Code, the majority of provisions relate to the Bureau of Public Health, including initial permitting, produce sourcing verification, pre-opening inspection, and preapproved recipe testing. As a result, the established fee may not fully cover all expenses that may be incurred by the WV Department of Health and Human Resources; a separate fiscal note from that agency would be required to fully assess the impact on its revenue and expenses.



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