FISCAL NOTE

Date Requested: January 13, 2020
Time Requested: 01:07 PM
Agency: Agriculture, WV Department of
CBD Number: Version: Bill Number: Resolution Number:
1753 Introduced SB320
CBD Subject: Agriculture


FUND(S):

No Dedicated Fund

Sources of Revenue:

General Fund

Legislation creates:

Creates New Expense, Creates New Program



Fiscal Note Summary


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


This bill will fiscally impact the state of WV by requiring the WV Department of Agriculture (WVDA) to register, inspect, and enforce the requirements set forth in the Farm Fresh Raw Milk Dairy Act. This bill does not have any registration costs listed, so the state would be required to fund the activities related to the bill. The total amount that would be needed to effectively implement the bill in 2020 is approximated at $115,659, and thereafter at $112,659. Information in this fiscal note was developed by the WVDA Regulatory and Environmental Affairs Divsion who would be responsible for the program if implemented.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2020
Increase/Decrease
(use"-")
2021
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 115,659 112,659 112,659
Personal Services 92,553 96,694 96,694
Current Expenses 20,051 14,985 14,985
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 3,055 980 980
2. Estimated Total Revenues 0 0 0


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


The personal services include both personnel and benefits directly related to the program. This includes the hire of a new Raw Milk Dairy Program Manager who would also conduct inspections; the Division Director's time related to the development of the new related rules and oversight of the program; the Assistant Director and Grade A Dairy Program Manager's time related to the development of the correctional training program and educational campaign; the Compliance Officer's time related to any infractions of the rule and related suspension hearings; the Registration Specialist's time related to the registration of the program participants; and the Assistant Director of the Lab Unit's time related to related outbreak investigations. These costs will be incurred each year. Additionally, it is estimated the related supplies required to support the program, including a computer, specialized thermometers, etc. would only be needed at the start up of the program. The travel related to inspections has been estimated to include expenses for mileage, food, and lodging (when necessary). This cost will be incurred every year. Travel in the first year has also been estimated to conduct an educational campaign on the requirements related to the program and the rental of facilities throughout the state to provide the training. This will only be conducted in the first year of the program. Approximately $1,000 will be set aside to conduct initial outbreak investigative analysis by the laboratory each year. In accordance with recent data from the CDC, it is estimated that approximately 5% of all raw milk sales will end in an outbreak investigation. The only revenue would be fines, which cannot be reasonably estimated at this time; in the absence of fee revenue, General Revenue would be required to fund this initiative (as noted in the previous section).



Memorandum


There are no Tuberculosis or Brucellosis testing requirements in this bill. This may not only impact the direct herd, but since WV is currently TB-free, could have a negative fiscal impact all dairy herds in WV if a positive animal were to be left unchecked.



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