FISCAL NOTE

Date Requested: February 10, 2021
Time Requested: 04:27 PM

1427	Introduced	HB2126
Agency:	Health and Human Resources, WV Department of
CBD Number:	Version:	Bill Number:	Resolution Number:
CBD Subject:

FUND(S):

N/A

Sources of Revenue:

General Fund

Legislation creates:

Creates New Expense, Creates New Program, Creates New Fund:

Fiscal Note Summary

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

The purpose of this bill is to create the West Virginia Residential Furniture and Children’s Products Flame Retardants Act administered and enforced under the authority of the Commissioner of the Bureau for Public Health. The bill prohibits the use of certain flame-retardant chemicals in certain products, including those designed for use by children. The bill states when replacement chemicals may be used in these products and provide exemptions to requirements. The bill requires a report to the Joint Committee on Government and Finance by the Commissioner of the Bureau for Public Health in conjunction with the Fire Marshal. The bill requires certificates of compliance from persons or businesses selling products subject to this article, provides for injunctive relief for violations, and provides for civil penalties. This proposed legislation would require implementation of a new program within the Bureau for Public Health, Office of Environmental Health Services (OEHS) aimed at preventing the sale of furniture, mattresses and children's clothing in West Virginia that have been treated with specific flame retardant materials and would require hiring additional professional, field, and support staff to develop, implement, and operate the program. During the development and implementation period, OEHS would need a Program Manager, Epidemiologist, and Health Educator to review rules from other states and federal government; coordinate with the West Virginia Fire Marshall; gather manufacturing and product information about the status of materials in West Virginia; work closely with the federal government Agency for Toxic Substance and Disease Registry (ATSDR); prepare a scientific report to present to the Legislature; write emergency rules; and develop educational material for distribution throughout the state to inform manufacturers, retailers, and consumers of the dangers to human health. Once the program is implemented and prior to enforcement beginning, the Program would need to have field enforcement staff on board so that they can be trained to cover all retail sites in the state that sell or resell furniture, mattresses, or clothing. It is estimated that there are thousands of these sites in West Virginia. To keep travel costs manageable, OEHS would station one field staff in each of its five district offices and one in the OEHS central office in Charleston. For the purpose of preparing this fiscal note, OEHS assumes that HB2126 will become effective on July 1, 2021 and estimates that it will take a year to bring staff on board to develop the program, write emergency rules, and implement the program. It is also estimated that field staff would not be needed until FY2023 at which time they will have to be trained before enforcement could begin. Estimated costs to develop, implement, and operate the Program is $281,094 for FY2022 and $684,995 upon full implementation.

Fiscal Note Detail

Effect of Proposal	Fiscal Year
Effect of Proposal	2021 Increase/Decrease (use"-")	2022 Increase/Decrease (use"-")	Fiscal Year (Upon Full Implementation)
1. Estmated Total Cost	0	281,094	684,995
Personal Services	0	261,500	639,195
Current Expenses	0	19,594	45,800
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):

Estimated Personal Services cost for FY2022 is $261,500 and includes salaries and employee benefits for 1.00 FTE Environmental Resources Program Manager 1 ($58,349); 1.00 FTE Environmental Epidemiologist 2 ($60,097); 1.00 FTE Public Health Educator 1 ($37,629); and 1.00 FTE Administrative Services Assistant 2 ($ 37,629). Employee benefits are estimated at $67,796 ($193,704 x 35%). Estimated Personal Services cost for FY2023 and ongoing is $639,195 and includes salaries and employee benefits for the above positions plus 6.00 FTE Environmental Resources Specialist 2 (6 x $46,629 = $279,774). Employee benefits are estimated at $165,717 ($473,478 x 35%). Estimated Current Expense cost for FY2022 is $19,594 and includes landline telephone service at $2,400 ($50 per month x 12 months x 4.00 FTE); cell phone service for Program Manager at $600 ($50 per month x 12 months); cell phone equipment for Program Manager at $300; computer equipment and monitors at $4,800 ($1,200 x 4.00 FTE); office supplies at $800 ($200 x 4.00 FTE); research data and material for development of the program at $2,500; development and printing of educational material at $2,500; in-state travel for program staff meeting with WV Fire Marshall and other entities for research and information gathering purposes at $1,344 (100 miles per day x 24 days x $0.56 per mile); and out-of-state travel for program staff attending one 3-day information gathering and training session with ATSDR at $4,350 ($500 per airfare x 3 employees = $1,500; $50 per ground transportation x 3 employees = $150; $100 per diem x 3 days x 3 employees = $900; $200 lodging x 3 days x 3 employees = $1,800). Estimated Current Expense cost upon full implementation is $45,800 and includes landline telephone service at $6,000 ($50 per month x 12 months x 10.00 FTE); cell phone service for Program Manager and field staff at $4,200 ($50 per month x 12 months x 7.00 FTE); office supplies at $2,000 ($200 x 10.00 FTE); and in-state travel for field staff performing inspections at $33,600 (6 inspectors x 2 inspections per day x 200 days per year x 25 miles per inspection x $0.56 per mile). FY2023 also includes a one time current expense costs of $10,800 that include cell phone equipment for field staff at $1,800 ($300 x 6.00 FTE); and computer equipment and monitors for field staff at $7,200 (1,200 x 6.00 FTE).

Memorandum

It is important to note that the Department would likely not know if HB2126 passes until March or April 2021 which would allow only two to three months for implementation if manufacturers are required to comply as of July 1, 2021. Manufacturers would also be required to comply prior to emergency rules being written. As written, HB2126 would also require manufacturers and retailers to comply prior to the program being fully developed to the point that it could begin conducting inspections and act on enforcement. Section 16-63-6 of HB2126 allows for the development of a "Meets Fire Safety Standards Without the Use of Chemical Flame Retardants" labeling program and an awards program to recognize accomplishments of West Virginia manufacturers that exceed requirements. The implementation of both programs will be at the discretion of the Commissioner. There will be no additional costs to the Department should the Commissioner choose to implement either or both programs. Manufacturers will be responsible for covering costs under the Labeling Program. Any expenses related to an Awards Program will be minimal and covered by OEHS. This Legislation does not require any independent third party testing to ensure that manufacturing limits are adhered to. This fiscal note does not include costs for the Department to conduct sampling of its own to determine compliance. Sampling methods and associated costs are unknown at this time. This Legislation would allow the Department to take enforcement actions through the Attorney General for violations but does not address if any revenue resulting from civil penalties will revert back to the program. No calculation of potential penalties are included in this fiscal note as the amount(s) cannot be readily projected.

Person submitting Fiscal Note: Bill J. Crouch
Email Address: Bill.J.Crouch@wv.gov