FISCAL NOTE
Date Requested: March 16, 2021
Time Requested: 11:44 AM |
| Agency: |
Agriculture, WV Department of |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 3361 |
Enrolled |
HB3224 |
|
|---|
| CBD Subject: |
Agriculture |
|---|
|
FUND(S):
N/A
Sources of Revenue:
Other Fund N/A
Legislation creates:
Creates New Expense, Creates New Program
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
HB3224 proposed for the purpose of creating food desert communities (Program) and related activities, will incur costs to the West Virginia Department of Agriculture (Department) to assist with the initial development, implementation, administration and review of the new Program. During the initial year, one employee would have to be hired to implement the program with as many as five (5) additional employees, utilizing twenty (20) percent of full time employment plus cost of fringe benefits, would be required to assist in the activities for the development and implementation phase of programming, including interviewing and selecting a partnering provider organization to implement and administer the program. A fund, in an amount yet to be determined, would have to be administered to offset costs related to reduced price produce and seasonal costs. During subsequent years, two (2) employees, one utilizing 100% of their time and one utilizing twenty (20) percent of full time employment plus cost of fringe benefits, would be required to administer activities related to the program and fund. Additional costs for assisting with program promotion, training, establishment and facilitation of a review committee and technical assistance/monitoring would be required. Information in this fiscal note was developed by the WVDA Business Development Division who would be responsible for the program if implemented.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2021
Increase/Decrease
(use"-") |
2022
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
113,200 |
66,800 |
| Personal Services |
0 |
113,200 |
66,800 |
| 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):
In its current form, HB3224 does not provide the Department any funds for administrative costs to establish or maintain the Program.
With the addition of new Program administration responsibilities, including interviewing and selecting a partnering provider and insuring they fulfill the year round requirement, and to implement and administer the program, one (1) full time employee and five (5) employees utilizing 20% of their time will be required to complete necessary Program activities with the following costs:
Program Development and Implementation Year 1 - (1) FTE x 100% effort + fringe rate brings us to a personnel total for Program management of $55,200. An additional $58,000 will be required in salary for five FTE employees utilizing 20% of their time. Additional funding, amount to be determined, will be required to offset costs related to reduced price produce and seasonal costs. The total Program management cost for Year 1 is estimated to be $113,200 + an undetermined amount for offsetting costs.
Program Implementation Year 2 and Fiscal Year - (1) FTE x 100% effort + fringe rate and one FTE at 20% of their time brings us to a personnel total for Program management of $66,800. Additional funding, amount to be determined, will be required to offset costs related to reduced price produce and seasonal costs. The total Program management cost for Year 2 is estimated to be $66,800 plus an undetermined amount for offsetting costs.
Memorandum
The following areas have been noted in HB3224 which would need further consideration:
§16-63-1 - May infringe upon private industry who is already doing this.
§16-63-1 - Does not define the parameters of a food desert community.
§16-63-1(c)(1) - Very few providers have the ability to supply year round fruits and vegetables. This is very limiting to providers/producers.
§16-63-1(c)(2) - Provider must be able to accept food vouchers. There is specific criteria to accept food vouchers.
§16-63-1(c)(3) - Does define the contents of a reduced price package, and what entity and funding will be utilized offset the reduced price to the producer.
Person submitting Fiscal Note: Alan Clemans, on behalf of Sandra Gillispie, CFO
Email Address: aclemans@wvda.us