SB 0098 - Fiscal Note

Fiscal Note - SB 0098 - Regulates sale of bedding

COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. NO. 0481-01

BILL NO. SB 98

SUBJECT: Sale of Bedding

TYPE: Original

DATE: January 13, 1999

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FISCAL SUMMARY

ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED	FY 2000	FY 2001	FY 2002
General Revenue	($57,238)	($66,037)	($67,715)
Total Estimated Net Effect on All State Funds	($57,238)	($66,037)	($67,715)

ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED	FY 2000	FY 2001	FY 2002
None
Total Estimated Net Effect on All Federal Funds	$0	$0	$0

ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED	FY 2000	FY 2001	FY 2002
Local Government	$0	$0	$0

Numbers within parentheses: ( ) indicate costs or losses

This fiscal note contains 4 pages.

FISCAL ANALYSIS

ASSUMPTION

Officials from the Office of State Courts Administrator and Department of Social Services assume this proposal will not fiscally impact their agencies.

Officials from the Department of Health (DOH) indicate the current statute affects only 50 bedding manufacturers and renovators, which are not currently inspected by DOH. The proposed legislation significantly increases the universe subject to inspection and permitting. DOH notes there is no inventory to determine how many entities this proposal affects, and estimates there may be several hundred in the metropolitan areas of St. Louis and Kansas City alone. In addition, there continues to be a proliferation of second hand, rent to own, and resale shops that are offering bedding for sale throughout the state.

DOH states that if the intent of the proposal is to be accomplished, the program would have to be sufficiently staffed to inspect all entities covered. DOH notes that the section has decentralized the majority of inspection responsibilities to each of the six district offices, and to adequately inspect all entities covered by this proposal, a new staff person would be needed in each district. DOH assumes the program would need an Environmental Public Health Specialist V for the overall coordination, management, and evaluation of the statewide program, six Environmental Public Health Specialist IIIs to conduct field and permit inspections, a clerk typist II for the upkeep and data entry of the program's data, and a clerk typist III for the supervision and management of the clerk typist II and to track all permits, schedules, and paperwork. DOH estimates total costs associated with these additional 9 FTE would be $427,609, $482,430, and $494,902 in FY00, FY01, and FY02, respectively, and would be funded through general revenue.

DOH further assumes this proposal would eliminate the $20 permit fee for approximately 48 bedding manufacturers in the state, resulting in a loss of $960 to the general revenue fund annually.

Based on DOH's response to a similar proposal in prior years, Oversight assumes DOH would require one Environmental Public Health Specialist V ($40,140) to coordinate the program and make field inspections to assure compliance. Equipment and expenses would include office furniture, office supplies, travel, communication expenses, and data processing expenses for one FTE.

FISCAL IMPACT - State Government	FY 2000	FY 2001	FY 2002
	(10 Mo.)
GENERAL REVENUE FUND
Loss - Department of Health
Permit fees	($960)	($960)	($960)
Cost - Department of Health
Personal service (1 FTE)	($34,273)	($42,172)	($43,226)
Fringe benefits	($10,244)	($12,605)	($12,920)
Expense and equipment	($11,761)	($10,300)	($10,609)
Total Costs - Department of Health	($56,278)	($65,077)	($66,755)
ESTIMATED NET EFFECT ON
GENERAL REVENUE FUND	($57,238)	($66,037)	($67,715)
FISCAL IMPACT - Local Government	FY 2000	FY 2001	FY 2002
	(10 Mo.)
	$0	$0	$0
FISCAL IMPACT - Small Business
Small businesses would be expected to be fiscally impacted to the extent that they would incur additional costs for labels due to the requirements of this proposal.

DESCRIPTION

The proposal revises and modernizes the law governing the sale of bedding. The existing law provides that persons making or renovating bedding are subject to inspection, are required to meet specified sanitary conditions, must operate under a permit, and must properly label their products. The Department of Social Services may prosecute violators of the law. Violation is a Class A misdemeanor (up to one year in jail).

The revised law simply modernizes the above requirements, provides standards for sanitization procedures requires labels in English and correctly reflects that the program is administered

by the Department of Health rather than the Department of Social Services. 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

Department of Social Services

Office of State Courts Administrator

Jeanne Jarrett, CPA

Director

January 13, 1999