FISCAL NOTE

Date Requested: January 10, 2018
Time Requested: 03:14 PM
Agency: Agriculture, WV Department of
CBD Number: Version: Bill Number: Resolution Number:
1053 Introduced SB145
CBD Subject: Agriculture, Military and Veterans


FUND(S):

Agriculture Fees Fund

Sources of Revenue:

Special Fund

Legislation creates:

Increases Revenue From Existing Sources



Fiscal Note Summary


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


The language in SB145 will result in additional revenue realized from increases to licensing fees for various meat and poultry processing, slaughter, and distribution operations prescribed therein.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2018
Increase/Decrease
(use"-")
2019
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 -175 0
Personal Services 0 0 0
Current Expenses 0 -175 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 0 0
2. Estimated Total Revenues 0 5,825 500


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


By establishing a 3-year licensing cycle (with increases) for custom slaughter, processor, and distributor, there would be initially be a small cost savings realized from having a renewal mailing each year. However, as new facilities are added, it is projected that eventually each year would require mailing a small set of renewals. Estimated increase in revenue realized from SB145 is projected based on current commercial and custom licenses in place as of January, 2018, with $500 of the anticipated increase related to annual commercial slaughter and processing establishments, and $5,325 increase from the beginning of the initial triennial custom facility licensing.



Memorandum


It is suggested to update the language in part (d)(1) on page 3 that states, “Further, the carcasses, meat and poultry products offered for sale must be wholesome and unadulterated.” Alternatively, text from 2017 RS SB586 should be used which states, “… and if he or she is further satisfied that the carcasses, meat products or poultry products to be sold or offered for sale from the establishment through commercial outlets will be wholesome and unadulterated, he or she shall issue the license.” The 2018 wording in (d)(1) implies that the carcasses, meat and poultry products could already be present at the establishment and are evaluated as a part of the initial inspection to approve the license, however, that would not be legally possible. The 2017 version of SB586 and the current code indicate the that the Commissioner of Agriculture is satisfied that carcasses, meat and poultry products will be wholesome and unadulterated when they are produced. In addition, because of the reorganization of the information in this section, part (d) of the current language will apply to both commercial and custom slaughterers, and processors. For this reason, the wording needs to be modified to avoid the implication that custom carcasses, meat and poultry products can be sold in commerce. Suggested language for (d)(1) could read, “If the applicant meets these requirements, and if the commissioner is satisfied that the carcasses, meat and poultry products to be produced at the establishment will be wholesome and unadulterated, then a license will be issued for that establishment, including an establishment number issued by the Commissioner.” The sentence in (d)(1) that states, “Further, the carcasses, meat and poultry products offered for sale must be wholesome and unadulterated” could then be removed.



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