SB 0867 - Fiscal Note

Fiscal Note - SB 0867 - Commercial Feed Law

L.R. NO.  3244-02
BILL NO.  SB 867
SUBJECT:  Commercial Feed Laws
TYPE:     Original
DATE:     February 13, 1996



                              FISCAL SUMMARY

                   ESTIMATED NET EFFECT ON STATE FUNDS

FUND AFFECTED                FY 1997          FY 1998        FY 1999

General Revenue              $48,356          $79,711        $79,711

Total Estimated
Net Effect on All
State Funds *                $47,356          $79,711        $79,711

    * There would be some administrative savings from discontinuing the
        product label registration of 23,000 products.

              ESTIMATED NET EFFECT ON FEDERAL FUNDS

FUND AFFECTED                FY 1997          FY 1998        FY 1999

None                              $0               $0             $0

Total Estimated
Net Effect on All
Federal Funds                     $0               $0             $0

                    ESTIMATED NET EFFECT ON LOCAL FUNDS

FUND AFFECTED                FY 1997          FY 1998        FY 1999

Local Government                  $0               $0             $0


                              FISCAL ANALYSIS

ASSUMPTION

The Department of Agriculture (DOA) assumes this proposal would result in a
net increase to the General Revenue Fund.  The proposal would replace the $2
fee for product label registration with a $50 license fee for approximately
1,600 commercial feed manufacturers, manufacturers and consultants.  It would
increase the fee required for selling small packed pet food by $25 annually.
The proposal would also increase the minimum inspection fee by $2 per
quarter.  The proposal would require the DOA to print and distribute the
annual summary report of commercial fee inspections free of charge which
would increase the costs to DOA by $15,000.

Officials from the Office of State Courts Administrator and the Office of
Attorney General (AGO) assume no fiscal impact.

The Secretary of State (SOS) assumes additional costs of $5,200 for the
printing, distribution, and storage of the estimated 208 additional pages of
the Missouri Register and the Code of State Regulations would be incurred
annually.

Oversight assumes SOS could increase fees to cover the additional printing
costs per Section 536.033 RSMo., and therefore has not included these costs
in the fiscal impact for this proposal.

FISCAL IMPACT - State Government           FY 1997     FY 1998     FY 1999
                                           (6 Mo.)
GENERAL REVENUE FUND
Income - DOA
  Increased fee - Small packaged pet food  $27,988     $55,975     $55,975
  New licensing fee                         40,000      80,000      80,000
  Increased minimum inspection fee           2,368       4,736       4,736
Total Income - DOA                         $70,356    $140,711    $140,711

Cost - DOA
  Print & distribute annual report                   ($15,000)   ($15,000)

Loss - DOA
  Product label registration fee         ($23,000)   ($46,000)   ($46,000)

Net effect on -
  GENERAL REVENUE FUND                     $47,356     $79,711     $79,711


FISCAL IMPACT - Local Government           FY 1997     FY 1998     FY 1999
                                          (10 Mo.)

                                                $0          $0          $0

DESCRIPTION

This bill provides for changes to the Commercial Feed Law including:

   - Any person who acts as an independent consultant must obtain a license
     from the Department of Agriculture.

   - A product is considered to be misbranded if it is not appropriate for
     its intended or purported use.

   - The department's authority is expanded to allow action to be taken if
     any product is found to be adulterated.  The product is considered to be
     adulterated if it contains any filthy, putrid, or decomposed substance,
     or if it is otherwise found to be unfit for feed.

   - Stronger action may be taken against companies by suspending or revoking
     licenses when just cause can be found.

   - Customer-formula feed sampling is expanded and chemical analysis results
     are provided to the customer.

   - The annual report containing information about sales of commercial
     feeds, data on such feeds production, and use and results of the
     analyses of official samples of commercial feeds sold within the state
     will be provided to all distributors of feed, feed dealers, and others
     free of charge.

   - The Director of Agriculture may assess civil penalties not to exceed
     $1,000 for each violation for serious and repeat offenders of the feed
     law and may order restitution be made to any person.

   - Pet food and specialty pet food inspection fees are increased.

This legislation is not federally mandated, would not duplicate any other
program and would not require additional capital improvements or rental
space.

SOURCES OF INFORMATION

Department of Agriculture
Office of the Attorney General
Secretary of State
State Courts Administrator