SB 0893 - Fiscal Note

Fiscal Note - SB 0893 - Health department action regarding foodborne disease caused by contaminated food

COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. NO. 3620-01

BILL NO. SB 893

SUBJECT: Foodbourne Disease by Contaminated Food

TYPE: Original

DATE: February 20, 1998

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FISCAL SUMMARY

ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED	FY 1999	FY 2000	FY 2001
Missouri Public Health Services	Unknown	Unknown	Unknown
Total Estimated Net Effect on All State Funds	Unknown	Unknown	Unknown

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	Unknown	Unknown	Unknown

Numbers within parentheses: ( ) indicate costs or losses

This fiscal note contains 4 pages.

FISCAL ANALYSIS

ASSUMPTION

Officials from the Department of Health (DOH) assume this proposal will not fiscally impact their agency. The DOH indicates this legislation could affect small businesses operating as retail food establishments as the proposal requires the businesses to provide immune globulin at a cost of up to $1,000 per incident to prevent and/or control illness to employees or customers of a retail food establishment. The reimbursement would be waived if the establishment had an effectively implemented and monitored food safety program approved by the DOH. A retail food establishment will also incur extra costs to train employees on safe food handling practices. The following is the maximum cost assumption to a small business that has made a decision to provide the highest quality safe food handling training program to the employees. A private group would charge $70 for each employee attending the class. The retail food establishment would have to pay each employee for the eight hours of training. The DOH used the minimum wage of $5.15. The retail food industry has approximately a 300 % turnover rate each year. It is also estimated that less than 20% of food handlers have completed a safe food handling course. Therefore the costs of training would be:

50 employees X $70 = $3,500 for training

50 employees x $41.20 (8 hours x $5.15 min. wage) = $2,060 employee wages to attend training

Total training costs = $5,560.

In addition, assuming a 300 % turnover rate of employees, the total training would cost $16,680 per year. The DOH could not provide Oversight with a cost of a DOH sponsored employee training program.

The DOH also assumes the proposal would save the state $1,000 per incident for immune globulin as the DOH funds the cost of the immune globulin when a public announcement is made. The local health agency of the county where the establishment is located is charged with the administrative costs for a public clinic. The DOH did not provide Oversight with a cost estimate for the administrative costs.

Oversight assumes there could be unknown revenue for the Missouri Public Health Services Fund from retail food establishments that were assessed a portion of the cost for health care clinics. The DOH would also realize unknown savings as the retail food establishments would now pay for the immunizations of immune globulin. Oversight also assumes an unknown amount of training costs and health clinic costs for the small businesses that are retail food establishments. Oversight also assumes an unknown amount of savings for the local health agencies due to the retail food establishments being required to pay for any administrative costs (less than $1,000) incurred for each incident.

FISCAL IMPACT - State Government	FY 1999	FY 2000	FY 2001
	(10 Mo.)
MISSOURI PUBLIC HEALTH
SERVICES FUND
Revenue - Department of Health
Reimbursements for Clinic Costs	Unknown	Unknown	Unknown
Savings - Department of Health
Immune Globulin Costs Passed on
to Retail Food Establishments	Unknown	Unknown	Unknown
NET EFFECT ON MISSOURI PUBLIC
HEALTH SERVICES FUND	Unknown	Unknown	Unknown
FISCAL IMPACT - Local Government	FY 1999	FY 2000	FY 2001
	(10 Mo.)
LOCAL HEALTH AGENCY FUNDS
Revenue
Reimbursements for Administering Clinics	Unknown	Unknown	Unknown
ESTIMATED EFFECT ON LOCAL
HEALTH AGENCY FUNDS	Unknown	Unknown	Unknown

FISCAL IMPACT - Small Business

Retail food establishments could be affected by this proposal depending on the cost of the clinics, the costs of immunizations of immune globulin and the actions of the Department of Health.

DESCRIPTION

This proposal allows the Department of Health in association with local health agencies to

assess the potential for transmission of foodborne disease from contaminated food originating

from retail food establishments. If the Department of Health determines that action is needed,

public announcements will be made and clinics opened to administer dosages against the spread

of disease. The establishment responsible for the outbreak shall reimburse the Department of

Health for the costs of the clinic and of the immune globulin dosages. Reimbursements will not

exceed one-half of the total cost of the clinic or a maximum of $1,000.

DESCRIPTION (continued)

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 Health

Jeanne Jarrett, CPA

Director

February 20, 1998