LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 80TH LEGISLATIVE REGULAR SESSION

May 24, 2007

TO:	Honorable David Dewhurst, Lieutenant Governor, Senate
FROM:	John S. O'Brien, Director, Legislative Budget Board
IN RE:	SB1714 by Seliger (Relating to regulation of dairy products.), As Passed 2nd House

Estimated Two-year Net Impact to General Revenue Related Funds for SB1714, As Passed 2nd House: a negative impact of ($72,260) through the biennium ending August 31, 2009.

The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.

General Revenue-Related Funds, Five-Year Impact:

Fiscal Year	Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2008	($40,880)
2009	($31,380)
2010	($31,880)
2011	($32,380)
2012	($32,380)

All Funds, Five-Year Impact:

Fiscal Year	Probable (Cost) from GENERAL REVENUE FUND 1
2008	($40,880)
2009	($31,380)
2010	($31,880)
2011	($32,380)
2012	($32,380)

Fiscal Analysis

The bill would require the Department of State Health Services (DSHS) to sample, test, or inspect milk for manufacturing purposes and dairy products that are offered for sale.

Methodology

DSHS indicates sample collections, inspections, and equipment tests would be performed by existing staff for 40 facilities. DSHS estimates a General Revenue cost for analyzing samples of $15,700 in fiscal year 2008, $16,200 in fiscal year 2009, $16,700 in fiscal year 2010 and $17,200 in fiscal years 2011-2012. DSHS estimates travel costs of $15,180 per fiscal year primarily for inspections and equipment tests.

Technology

In addition, DSHS estimates a one-time cost of $10,000 in General Revenue in fiscal year 2008 to contract for modifications to existing software (100 hours at $100 per hour).

Local Government Impact

No fiscal implication to units of local government is anticipated.

Source Agencies:

537 State Health Services, Department of

LBB Staff:

JOB, CL, WK, PP, SSt