TO: | Honorable Lois W. Kolkhorst, Chair, House Committee on Public Health |
FROM: | John S. O'Brien, Director, Legislative Budget Board |
IN RE: | SB1329 by Nelson (Relating to food manufacturers, food wholesalers, and warehouse operators required to hold a license.), Committee Report 2nd House, Substituted |
Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
---|---|
2010 | $0 |
2011 | $0 |
2012 | $0 |
2013 | $0 |
2014 | $0 |
Fiscal Year | Probable Savings/(Cost) from Food & Drug Registration 5024 |
Probable Revenue Gain/(Loss) from Food & Drug Registration 5024 |
Change in Number of State Employees from FY 2009 |
---|---|---|---|
2010 | $0 | $0 | 0.0 |
2011 | ($224,758) | $427,000 | 3.0 |
2012 | ($286,255) | $427,000 | 4.0 |
2013 | ($286,735) | $427,000 | 4.0 |
2014 | ($287,231) | $427,000 | 4.0 |
The bill would no longer exempt persons, firms, or corporations that ship raw fruits or vegetables from obtaining a license under Section 431 of the Health and Safety Code. The bill would take effect September 1, 2010.
DSHS estimates there would be 1,400 businesses each year starting in fiscal year 2011 that would need to be licensed to ship raw fruits and vegetables. DSHS would set the fee at $305 per license. DSHS estimates that there will be a gain of $427,000 in fiscal year 2011 and beyond to the Food and Drug Registration Account.
DSHS estimates it would require $224,758 for 3 FTEs in fiscal year 2011 and approximately $286,255 for 4 FTEs in fiscal year 2012 and beyond to provide inspections to and license the food shippers; these costs include salary, benefits, travel, and other operating costs. It is assumed that collections to the Food and Drug Registration Account will offset all cost for the licensing FTEs and associated operating costs.
Source Agencies: | 537 State Health Services, Department of
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LBB Staff: | JOB, CL, PP, BM, MB
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