FISCAL NOTE

Date Requested: January 29, 2016
Time Requested: 04:02 PM
Agency: Agriculture
CBD Number: Version: Bill Number: Resolution Number:
2399 Introduced SB434
CBD Subject: Agriculture


FUND(S):

0131

Sources of Revenue:

General Fund

Legislation creates:

A New Program



Fiscal Note Summary


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


The requirements for certification and sale of home-based micro-processed food established in SB434 will create additional expense for the Department of Agriculture (WVDA) in order to implement and maintain delivery of program services to eligible producers. This Fiscal Note addresses the impact to WVDA only; information on estimated expense and revenue to the Department of Health and Human Resources (DHHR) is not included in this submission.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2016
Increase/Decrease
(use"-")
2017
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 117,920 93,420
Personal Services 0 87,420 87,420
Current Expenses 0 25,500 6,000
Repairs and Alterations 0 0 0
Assets 0 5,000 0
Other 0 0 0
2. Estimated Total Revenues 0 0 0


Explanation of above estimates (including long-range effect):


For the purpose of this projection, it is assumed that this program will initially impact FY 2017 with an effective date of July 1, 2016. At minimum, program expenses will be approximately $118,000 in the first year and approximately $93,000 thereafter. It is estimated that WVDA will require two (2.00) FTEs to carry out outreach, training, certification, and follow-up compliance monitoring for producers across the state. Estimates above provide for an annual salary of $31,000 plus benefits for each FTE. Time and expense will be required in the first year to develop and deliver producer training. Training will be developed via an outside contract then a “train-the-trainer” approach will be taken to allow program personnel to reach the target audience. The training program will then require evaluation and modification in subsequent years. Additional startup costs include the basic supplies and equipment for program personnel (estimated at $1,500 per FTE) along with the purchase of specialized equipment to test for proper processing controls ($1,000) and to verify equipment used in pressurized processing ($1,000). After the certification program is established, ongoing expense includes staff time and travel to deliver additional training as well as time and travel for ongoing monitoring activities. Travel cannot be accurately estimated at this time, as it will depend on the number and location of program participants across the state in a given year. The proposed legislation does not allow for revenue to WVDA, so general revenue funding would have to be made available for initial and ongoing agency expense.



Memorandum


There is significant cost and effort required to develop and implement a training curriculum for producers that addresses the requirements of the proposed legislation but does not conflict with or supplant other food processing regulations, standards, and best practices. Additionally, while provisions are made for online sales, there would have a mechanism to insure that products are only being sold in-state; any out-of-state sales require compliance with commercial kitchen/public health processing requirements for interstate commerce (19-35-2(c)(3)). Lastly, steps will have to be taken to provide specialized training to local health inspectors to adequately inspect in-home or community kitchens, which will be an additional expense that either must be borne by the state or passed along to those being inspected (19-35-5(e)(2)).



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