| TO: | Honorable Rick Hardcastle, Chair, House Committee on Agriculture & Livestock |
| FROM: | John S. O'Brien, Deputy Director, Legislative Budget Board |
| IN RE: | HB2927 by Kolkhorst (Relating to requiring the licensing of resellers of certified seed; imposing a criminal penalty.), As Introduced |
| Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
|---|---|
| 2006 | ($324,481) |
| 2007 | ($231,690) |
| 2008 | ($231,690) |
| 2009 | ($231,690) |
| 2010 | ($231,690) |
| Fiscal Year | Probable Revenue Gain/(Loss) from GENERAL REVENUE FUND 1 |
Probable Savings/(Cost) from GENERAL REVENUE FUND 1 |
Change in Number of State Employees from FY 2005 |
|---|---|---|---|
| 2006 | $47,040 | ($371,521) | 5.1 |
| 2007 | $47,040 | ($278,730) | 5.1 |
| 2008 | $47,040 | ($278,730) | 5.1 |
| 2009 | $47,040 | ($278,730) | 5.1 |
| 2010 | $47,040 | ($278,730) | 5.1 |
The bill would require the licensing of resellers of certified seed and impose a penalty for non-compliance. The bill would require the Texas Department of Agriculture (TDA) to license and inspect any reseller of certified seed that wishes to handle certified seed in bulk. The bill would also require TDA to revoke, modify, or suspend the license of a reseller, place on probation a person whose license to resell has been suspended, or reprimand a licensee in enforcing rules governing the handling and selling of certified seed.
TDA assumes that there would be 392 retailers (resellers) in the state who would want to be licensed to handle certified seed in bulk. Further the agency assumes that these retailers would be inspected five times annually for a total of 1,960 inspections a year. In order to perform these licensing and inspection duties an estimated 3.3 FTEs (2.5 inspectors, 0.7 program specialist and 0.1 licensing specialist) would be needed. The cost for these FTEs is $147,657. It is also anticipated that there would be an additional start up costs as well as costs for travel, training etc. TDA also anticipates a cost of $20,000 to set up a new licensing and inspection program for certified seed resellers. The total cost for the first year of licensing and inspecting under this program would be $252,128. The cost in the subsequent fiscal years would be $184,714.
Assuming the 392 retailers (resellers) who would want to be licensed to handle certified seed in bulk, the agency anticipates that each of these retailers would require an annual audit inspection of their records as well as an unannounced inspection at each location to verify that the retailers maintain the genetic purity and identity of the bulk certified seed. In order to perform these enforcement activities an estimated 1.8 FTEs (1.5 inspectors and .3 program specialist) would be needed. The cost for these FTEs is $81,414. Assuming additional start up costs, as well as costs for travel, training the total cost for the first year of enforcement activities would be $119,392. The cost in the subsequent fiscal years would be $94,015.
Based on another seed licensing program (Vegetable Seed License) for projecting an application fee, TDA estimates a fee of $120 and assuming 392 potential applicants the agency anticipates generating $47,040 annually.
| Source Agencies: | 551 Department of Agriculture
|
| LBB Staff: | JOB, WK, ZS, JF
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