FISCAL NOTE
Date Requested: January 31, 2019
Time Requested: 01:45 PM |
| Agency: |
Agriculture, WV Department of |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2704 |
Introduced |
HB2796 |
|
|---|
| CBD Subject: |
Agriculture |
|---|
|
FUND(S):
N/A
Sources of Revenue:
Other Fund N/A
Legislation creates:
Creates New Expense
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The effect of the proposed legislation will be an additional cost to the state for personnel and current expenses related to the research and development of criteria to approve laboratories for hemp testing as well as follow-up oversight to ensure compliance with established testing standards. Further, if the department's in-house testing volume changes (due to samples being sent to an outside laboratory), samples are no longer to be "batched in larger quantities" which would mean that the cost per test would increase for the department. Samples typically are batched together so that less consumables and standards need to be utilized.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2019
Increase/Decrease
(use"-") |
2020
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
85,900 |
67,291 |
| Personal Services |
0 |
81,400 |
62,791 |
| Current Expenses |
0 |
4,500 |
4,500 |
| 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):
Included in the personal services costs noted above is a new position (1.00 FTE) at an estimated $54,800 per year (salary and benefits) that would be dedicated to regulation and oversight of external laboratories to verify adherence to established standards for hemp testing and to periodically verify the validity of test data generated by those laboratories.
The first year estimated total also includes estimated personal services and time allocation for researching, development, and the writing of proposed laboratory requirements. The current expenses relate to the higher cost of testing materials for in-house testing. The fewer number of samples that are analyzed by the Department of Agriculture, the higher the cost, as they can no longer be batched together.
The 2020 expenses are further implementation costs that pertain to the personal services time allocation related to the approval of the laboratory and investigation as to whether they are qualified to perform analysis. The current expenses remain the same, as described in the paragraph above.
Memorandum
None noted.
Person submitting Fiscal Note: Alan Clemans, on behalf of Sandra Gillispie, CFO
Email Address: sgillispie@wvda.us