FISCAL NOTE

Date Requested: January 19, 2018
Time Requested: 08:47 AM
Agency: Health and Human Resources, WV Department of
CBD Number: Version: Bill Number: Resolution Number:
1857 Introduced HB4179
CBD Subject: Health


FUND(S):

0407 - CENTRAL OFFICE GENERAL ADMINISTRATIVE FUND

Sources of Revenue:

General Fund

Legislation creates:

Decreases Existing Expenses



Fiscal Note Summary


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


This proposed legislation will transfer authority regarding milk and milk products from the Department of Health and Human Resources, Bureau for Public Health, Office of Environmental Health Services to the Department of Agriculture. The Department estimates the total offset between the DHHR and the Department of Agriculture from this bill will be $166,724 resulting from $163,008 in personal services and $3,716 in current expenses based on SFY2017 expenditures.



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 -166,724 0
Personal Services 0 -163,008 0
Current Expenses 0 -3,716 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):


This proposed HB4179 will eliminate the Department's Milk Program. The reduction of expenditures is estimated using actual FY2017 Milk Program expenditures as a calculation method and assuming that all responsibilities of the Milk Program will transfer along with rules and regulations authority to the Department of Agriculture. There are currently two full-time Department of Health and Human Resources positions (HHR Program Manager 1 and Sanitarian 1) and three additional positions (Sanitarian Chief, Sanitarian 2, and a temporary Registered Sanitarian working as an HHR Program Manager 1) which allocate approximately 50% of their time to the Milk Program. Therefore, this legislation would require the transfer of approximately three full-time staff positions. All Milk Program personal services costs are state-funded except for the temporary Registered Sanitarian's salary that is funded under a federal grant. Should this proposed legislation be enacted, the Department of Health and Human Resources would eliminate the federally-funded temporary Registered Sanitarian/HHR Program Manager 1 position which works partially on Milk program and partially on other food regulation programs through the Manufactured Food Regulation grant. The Department's estimated reduction of General Revenue (0407) Milk Program expenditures is $166,724 and includes Salaries $122,182 + Employee Benefits of $40,826 + Current Expenses of $3,716. The Department did supplement Milk Program expenditures in FY2017 with $21,456 in Special Revenue. The Department would transfer General Revenue funds only in the amount of $166,724 and not the $21,456 paid from Special Revenue, as the Milk Program does not generate revenue for this account.



Memorandum


HB 4179 proposes to transfer milk rules and regulations from the Department of Health and Human Resources to Department of Agriculture. The Department of Health and Human Resources provides farm inspections; collection of milk samples; and ratings of farm and milk production facilities to protect public health so that Grade A milk produced in West Virginia can enter interstate commerce. Assuming that the Milk Program duties move to the Department of Agriculture along with rules and regulations authority, it is important to note responsibilities that will also transfer. The Milk Program is responsible for the inspection of farm facilities producing Grade A milk products that enter interstate commerce. The Milk Program is responsible for the collection of Grade A milk samples at farm facilities producing milk products, bulk milk tank haulers, and milk plant facilities producing Grade A milk products that enter interstate commerce. The Milk Program is responsible for the inspection of Grade A milk tank haulers of milk products that enter interstate commerce by a person certified by the U.S. Food and Drug Administration. The Milk Program is responsible for the inspection of Grade A milk plant facilities producing Grade A milk products that enter interstate commerce. The Milk Program is responsible for rating Grade A dairy farm and milk plant facilities producing Grade A milk products that enter interstate commerce by a person certified by the U.S. Food and Drug Administration. The Milk Program is responsible for ensuring laboratory services from a laboratory certified by the U.S. Food and Drug Administration is available for testing Grade A milk products that enter interstate commerce. Currently, all Grade A milk samples collected from farms or produced from milk plants located in West Virginia are tested for compliance at the Department of Health and Human Resources, Bureau for Public Health, Office of Laboratory Services.



    Person submitting Fiscal Note: Bill J. Crouch
    Email Address: Bill.J.Crouch@wv.gov