FISCAL NOTE
Date Requested: January 15, 2024
Time Requested: 04:56 PM |
| Agency: |
Agriculture, WV Department of |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1128 |
Introduced |
HB4736 |
|
|---|
| CBD Subject: |
Agriculture |
|---|
|
FUND(S):
N/A
Sources of Revenue:
General Fund
Legislation creates:
Creates New Expense, Creates New Program
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
HB4736 creates the WV Farm Fresh Dairy Act. This bill will fiscally impact the state of WV by requiring the WV Department of Agriculture (WVDA) to register, inspect, and enforce the requirements set forth in the Farm Fresh Raw Milk Dairy Act. This bill does not have any registration costs listed, so the state would be required to fund the activities related to the bill. Without revenue, dedicated General Revenue funding would be required to implement and maintain this program on an ongoing basis, and current workload prevents existing staff from assuming additional responsibilities, so new staffing would be required. The total amount that would be needed to effectively implement the bill in 2024 is approximated at $612,500, and thereafter at $604,500. Information in this fiscal note was developed by the WVDA Animal Health Division, who would be responsible for the program if implemented.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2024
Increase/Decrease
(use"-") |
2025
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
612,500 |
604,500 |
604,500 |
| Personal Services |
550,000 |
550,000 |
550,000 |
| Current Expenses |
50,000 |
50,000 |
50,000 |
| Repairs and Alterations |
2,500 |
2,500 |
2,500 |
| Assets |
10,000 |
2,000 |
2,000 |
| Other |
0 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
0 |
0 |
Explanation of above estimates (including long-range effect):
The personal services noted above include both personnel and benefits directly related to the program. This includes filling the Guthrie Staff Veterinarian position to manage the new Raw Milk Dairy Compliance Program and two new Dairy Sanitation Compliance Officer positions (one assigned to the eastern region of WV and one to the western region) who would statewide conduct inspections and respond to producer notifications of problems (the Staff Veterinarian would review Compliance Officer findings and conduct follow-up inspections and compliance training for producers, when needed); Staff Veterinarian time for development of the correctional training program and educational campaign the Division Director's time related to the development of the new related rules and oversight of the program; the Administrative Assistant's time related onboarding new hires, ordering equipment and supplies, securing overnight lodging, processing travel reimbursements, performing and maintaining registration documentation then updating as producers submit change notices, and providing associated program support for program staff and registrants; the two Compliance Officers' time related to travel and conducting inspections, milk-sampling, and attending suspension hearings; the Division Director’s time for coordinating incidents with physician queries, WV DHHR, and other public health agencies for human illness cases; and the laboratory’s time for testing milk from outbreak investigations. These costs will be incurred each year and would fluctuate depending on program activity. There would also be administrative/support time and Executive Division time and attention (including General Counsel) for compliance issues and suspension hearings.
Additionally, estimated supplies required to support the program, including tablets for field operations, smart phones, specialized thermometers, coolers to transport raw milk samples, etc., that would only be needed at program start-up.
The travel related to inspections has been estimated to include expenses for mileage, food, and lodging. This cost will be incurred every year. Travel in the first year has also been estimated to conduct an educational campaign on the requirements related to the program and the rental of facilities throughout the state to provide the training. This will only be conducted heavily in the first year of the program, or for future non-compliance remedy trainings.
The only potential revenue would be fines and possible fees for non-compliance re-trainings, which cannot be reasonably estimated at this time and would not likely contribute significantly to offset overall program costs.
Memorandum
There are no Tuberculosis or Brucellosis testing requirements in this bill. This may not only impact the raw milk herd, but since WV is currently maintains USDA TB-free/ Brucellsos-free status, a deleterious finding could economically/fiscally negative impact all livestock herds in WV (Grade A dairy, beef, goat, sheep, seedstock producers).
According to data from the CDC, it is estimated that approximately 5% of all raw milk sales end in human illness leading to outbreak investigations. These fiscal impact estimates do not include time for WV public health investigators and human testing laboratories, nor time by human medical professionals and costs to any ill citizens.
Person submitting Fiscal Note: Laryssa Hoskins, on behalf of Alan Clemans, CFO
Email Address: lhoskins@wvda.us