FISCAL NOTE

Date Requested: February 08, 2017
Time Requested: 05:20 PM
Agency: Health and Human Resources, WV Department of
CBD Number: Version: Bill Number: Resolution Number:
1391 Introduced HB2121
CBD Subject: Consumer Protection


FUND(S):

0407 - CENTRAL OFFICE GENERAL ADMINISTRATIVE FUND

Sources of Revenue:

General Fund

Legislation creates:

A New Program,A 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 provides 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 aimed to prevent the sale in West Virginia of furniture, mattresses and children's clothing that have been treated with specific flame retardant materials and will require hiring additional professional and support staff in addition to providing for the development of the program and programmatic operational costs. During the implementation period (FY2018 - FY2020), a Program Manager, Epidemiologist, and Health Educator will be needed to review rules from other states and federal government; coordinate with the West Virginia Fire Marshal; gather manufacturing and product information about the status of materials in West Virginia; prepare a scientific report to present to the Legislature; and develop state rules. This will require a close liaison with the federal government Agency for Toxic Substance and Disease Registry (ATSDR). It will be necessary to develop educational materials and distribute throughout the state to inform manufacturers, retailers and consumers of the dangers to human health, as well as, the upcoming requirements to be met. During the implementation period, Program will be ramping up for full implementation that will occur beginning July 1, 2021 when enforcement begins. Once the implementation period is complete and enforcement begins, staff in addition to the Program Manager, Epidemiologist, and Health Educator will be needed. The Program will require six field enforcement staff and one administrative support employee. The six field enforcement staff would cover all of the 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, the Bureau for Public Health would station one field staff in each of its five Office of Environmental Health Services' (OEHS) district offices and one in the OEHS central office in Charleston. The Department estimates the cost related to this bill to be $246,025 for initial implementation and $798,156 for ongoing operations.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2017
Increase/Decrease
(use"-")
2018
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 246,025 798,156
Personal Services 0 192,359 579,087
Current Expenses 0 53,666 219,069
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):


The estimated $192,359 in Personal Services for FY2018 and each of the following two fiscal years through FY2020 is for 1.00 FTE Environmental Resources Program Manager 1 ($52,000); 1.00 FTE Environmental Epidemiologist ($45,000); and 1.00 FTE Public Health Educator 1 ($35,500) for a total of $132,500 in salaries. Fringes for these 3.00 FTEs include Public Employees Health Insurance Administrative Fees of $150 ($50 per employee x 3.00 FTE); Personnel Administrative Fee of $540 ($180 per FTE x 3.00 FTEs); Health Insurance of $26,856 ($8,952 per FTE x 3.00 FTEs); Social Security of $10,136 ($132,500 x .0765); Retirement of $14,575 ($132,500 x .11); Workers Compensation of $546 ($132,500 x .00412); and WV OPEB Contribution of $7,056 ($2,352 x 3.00 FTE) for a total of $59,859 in fringes. The estimated $53,666 in Current Expenses for FY2018 and each of the following two fiscal years through FY2020 include office space rental of $34,560 ($15 per SF x 64 SF per FTE x 3.00 FTEs x 12 months); in-state travel costs for program staff attending one-day meetings with WV Fire Marshal and other entities for research and information gathering purposes of $3,852 (100 miles per day x 24 days per year x .535 per mile x 3.00 FTEs); out-of-state travel costs for program staff attending one 3-day information gathering and training session with ATSDR of $3,447 ($475 per airfare x 3 employees = $1,425, $50 per ground transportation x 3 employees = $150, $68 per diem x 3 days x 3 employees = $612, $140 lodging x 3 days x 3 employees = $1,260); landline telephones for program staff of $1,800 ($50 per month x 12 months x 3.00 FTEs); cell phone for Program Manager of $720 ($60 per month x 12 months x 1.00 FTEs); computer equipment for program staff of $3,687 (laptop computer, docking station, and monitor - $1,229 x 3.00 FTEs); office supplies for program staff of $600 ($200 x 3.00 FTEs); and research data and educational materials to develop program of $5,000. The estimated $579,087 in Personal Services for FY2021 and ongoing years is for 1.00 FTE Environmental Resources Program Manager 1 ($52,000); 1.00 FTE Environmental Epidemiologist ($45,000); 1.00 FTE Public Health Educator 1 ($35,500); 1.00 FTE Office Assistant 2 ($23,000); and 6.00 FTEs Environmental Resource Specialist 2's (6 x $39,000 = $234,000) for a total of $389,500 in salaries. Fringes for these 10 FTEs include Public Employees Health Insurance Administrative Fees of $500 ($50 per employee x 10 FTE); Personnel Administrative Fee of $1,800 ($180 per FTE x 10 FTEs); Health Insurance of $89,520 ($8,952 per FTE x 10 FTEs); Social Security of $29,797 ($389,500 x .0765); Retirement of $42,845 ($389,500 x .11); Workers Compensation of $1,605 ($389,500 x .00412); and WV OPEB Contribution of $23,520 ($2,352 x 10 FTE) for a total of $189,587 in fringes. The estimated $219,069 in Current Expenses for FY2021 and ongoing years include office space rental of $115,200 ($15 per SF x 64 SF per FTE x 10 FTEs x 12 months); in-state travel costs for Environmental Resource Specialist 2 training of $57,780 (100 miles per day x 180 days per year x .535 per mile x 6 FTEs); landline telephones for program staff of $6,000 ($50 per month x 12 months x 10 FTEs) cell phones for Program Manager and Environmental Resource Specialist 2 field staff of $5,040 ($60 per month x 12 months x 7 FTEs); computer equipment for Environmental Resource Specialists of $7,374 (laptop computer, docking station, and monitor x $1,229 x 6.00 FTEs); computer equipment for Office Assistant of $675 (desktop computer and monitor x $675 x 1.00 FTE): office supplies for program staff of $2,000 ($200 per year x 10 FTEs); educational materials of $10,000; and testing costs and supplies of $15,000.



Memorandum


Section 16-52-6 of the proposed legislation 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 the Bureau. Additionally, 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, Cabinet Secretary
    Email Address: DHHRBudgetOffice@wv.gov