This Fiscal Note is not an official copy and should not be quoted or cited.
This Fiscal Note is not an official copy and should not be quoted or cited.
Fiscal Note - SB 0485 - Relating to the registration of packaged ice manufacturers
COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. NO. 1918-03
BILL NO. SCS for SB 485
SUBJECT: Registration of Manufacturers of Packaged Ice
TYPE: Original
DATE: March 17, 1998
FISCAL SUMMARY
ESTIMATED NET EFFECT ON STATE FUNDS Net Effect on All State Funds
FUND AFFECTED
FY 1999
FY 2000
FY 2001 Missouri Public Health
Services
($205,585)
($373,921)
($403,219)
Total Estimated
($205,585)
($373,921)
($403,219)
|
ESTIMATED NET EFFECT ON FEDERAL FUNDS | |||
| FUND AFFECTED | FY 1999 | FY 2000 | FY 2001 |
| None | |||
| Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
|
ESTIMATED NET EFFECT ON LOCAL FUNDS | |||
| FUND AFFECTED | FY 1999 | FY 2000 | FY 2001 |
| Local Government | $0 | $0 | $0 |
Numbers within parentheses: ( ) indicate costs or losses
This fiscal note contains 5 pages.
FISCAL ANALYSIS
ASSUMPTION
Officials from the Department of Health (DOH) estimate that 4,200 establishments would be subject to the $150 license fee annually. The DOH assumes that 1,700 convenience stores and 2,500 retail food stores will be inspected annually. DOH estimates that $630,000 in annual revenue, collected by the DOH, would be credited to the Missouri Public Health Services Fund related to these inspections.
DOH estimates that 3,600 establishments would be under local health agency inspection. These local health agency inspections are estimated to cost $75 per establishment. Oversight assumes the cost to perform the inspections will be offset from the revenue received from the DOH for performing the inspections. Therefore, a net fiscal effect of zero for the local health agencies is expected.
The laboratory costs are due to the materials needed to run samples to determine that ice meets necessary standards. These samples would cost $25 each. It is estimated that at least an initial sample plus 20% follow-up would be needed for a total of 20,160 samples for a total cost of $504,000. Samples need to be taken annually to be consistent with public health concerns and standards set for bottled and public waters. Due to the language of the bill requiring "all establishments engaged in the manufacture of food or distribution of foods to wholesale account," an estimated additional 6,000 establishments would need to be registered and tracked on an annual basis; thus, creating the need for an additional Environmental Public Health Specialist. The estimate of establishments does not include any out-of-state facilities doing business in Missouri.
Two (2) FTE Environmental Public Health Specialist III ($34,296 each) would be needed for inspecting and sampling ice manufacturers and issuing permits to assure compliance with the new law. In addition, the DOH would conduct surveillance to assure that other food manufacturers were registering with DOH. One (1) FTE Public Health Lab Scientist ($31,620) would be needed to run bacteriological tests and chemical analysis. One (1) FTE Clerk IV ($21,816) would keep records and insure that fees were collected and permits issued. One (1) FTE Clerk Typist II ($16,512) would do data entry and keep computer records. Oversight assumes only the Clerk IV is needed for support staff.
Equipment ($24,850) would include office equipment and systems furniture for five FTEs. Expense ($87,411) would include office supplies, travel expenses, rental expenses, office and communication expenses, and printing expenses. Laboratory services, as stated earlier, would cost $504,000. Oversight assumes the Public Health Lab Scientist would be located in the State Health Lab and, as a result, has eliminated all additional rental costs from the fiscal estimate.
ASSUMPTION (continued)
The contracts for inspections by the local health agencies are expected to cost $274,500 annually. Oversight has also shown this as a revenue to the local government funds.
The DOH indicated indirect costs were included in their estimate of fiscal impact at a rate of 35.1%, since these costs must also come from the Missouri Public Health Services Fund. Oversight has eliminated the indirect costs from the fiscal estimate.
The proposal also states that rules will be developed. A booklet containing the statute and rules would be printed as well as the permit forms. DOH estimates the cost of the rule booklet at $1.50 each and they would require 5,000 booklets which would total $7,500. The DOH estimates the cost of the forms at $0.12 each and they would require 6,000 forms which would total $720. Oversight assumes the rule booklets would not be reprinted entirely each year. Oversight assumes the DOH would have to reprint approximately 20% of the booklets to provide to new establishments and has reduced DOH's request for expense and equipment accordingly.
The City of Kansas City, City of St. Louis, St. Louis County, City of Springfield, Greene County, and Jackson County did not respond to our fiscal impact request. Oversight assumes the $75 per inspection fee, paid by the DOH, would be paid to local health agencies and would cover their cost of performing the inspections.
| FISCAL IMPACT - State Government | FY 1999 | FY 2000 | FY 2001 |
| (10 Mo.) | |||
| MISSOURI PUBLIC HEALTH | |||
| SERVICES FUND | |||
| Income - Department of Health | |||
| Licensing Fees | $630,000 | $630,000 | $630,000 |
| Costs - Department of Health | |||
| Personal Services (4 FTE) | ($104,191) | ($128,205) | ($131,411) |
| Fringe Benefits | ($29,205) | ($35,936) | ($36,834) |
| Expense and Equipment for FTE | ($46,848) | ($35,638) | ($36,708) |
| Sub-Total | ($180,244) | ($199,779) | ($204,953) |
| Laboratory Services | ($419,832) | ($519,120) | ($534,694) |
| Printing Booklets and Forms | ($6,850) | ($2,287) | ($2,355) |
| Contracts With Local Health Agencies | ($228,659) | ($282,735) | ($291,217) |
| Total Costs - Department of Health | ($835,585) | ($1,003,921) | ($1,033,219) |
| FISCAL IMPACT - State Government | FY 1999 | FY 2000 | FY 2001 |
| (continued) | (10 Mo.) | ||
|
ESTIMATED NET EFFECT ON MISSOURI | |||
| PUBLIC HEALTH SERVICES FUND | ($205,585) | ($373,921) | ($403,219) |
| FISCAL IMPACT - Local Government | FY 1999 | FY 2000 | FY 2001 |
| (10 Mo.) | |||
| LOCAL GOVERNMENT FUNDS | |||
| Income - Local Government Funds | |||
| Contract Revenue from the DOH | $228,659 | $282,735 | $291,217 |
| Costs- Local Government Funds | |||
| Inspection Costs | ($228,659) | ($282,735) | ($291,217) |
|
ESTIMATED NET EFFECT ON | |||
| LOCAL GOVERNMENT FUNDS | $0 | $0 | $0 |
FISCAL IMPACT - Small Business
Small businesses would be expected to be fiscally impacted to the extent that they would incur additional licensing costs due to the requirements of this proposal.
DESCRIPTION
This proposal requires all manufacturers of packaged ice for wholesale or retail sales to register each of their locations with the Department of Health, obtain and pay for a license from the Department of Health, and to renew these licenses annually.
The Department of Health will promulgate rules and regulations regarding the testing and inspection of equipment and storage facilities for ice. The Department of Health may refuse to grant a license or may suspend a license if violations are found. This act does not apply to restaurants or other retail establishments whose manufacture and sale of ice is otherwise subject to inspection by the Department of Health or a county or municipal health department.
This legislation is not federally mandated, would not duplicate any other program and would not require additional capital improvements or rental space. It would affect Total State Revenues.
SOURCES OF INFORMATION
Department of Health
NOT RESPONDING: Office of Attorney General, City of St. Louis, St. Louis County, City of Springfield, Greene County, City of Kansas City and Jackson County
Jeanne Jarrett, CPA
Director
March 17, 1998