SB 0939 - Fiscal Note

Fiscal Note - SB 0939 - Modernizes law governing the sale of new and renovated bedding

COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. NO. 3939-01

BILL NO. SB 939

SUBJECT: Sale of New and Renovated Bedding

TYPE: Original

DATE: March 11, 1998

---

FISCAL SUMMARY

ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED	FY 1999	FY 2000	FY 2001
General Revenue	($56,384)	($64,617)	($66,260)
Total Estimated Net Effect on All State Funds	($56,384)	($64,617)	($66,260)

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	$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) indicated that the DOH permits are currently issued to approximately 50 in-state entities. The universe established in Section 421.161, of this proposal, is unknown. The DOH assumes this could exceed 500 entities. These 500 plus entities are located across the state. Currently there is no inspection of bedding manufacturers and no bedding program manager. The DOH assumes the program would need a program manager, clerical support and two field staff to run the statewide program.

The DOH stated the Environmental Public Health Specialist V would provide program oversight, management and supervision of the overall bedding program. Responsibilities include interaction with all permit holders; provide consultation and technical assistance to public, prospective permit holders, and permit holders; review and approve all bedding tags. The Environmental Public health Specialist IV would inspect and approve of all permit holders; identify, registry and inspect all entities identified in Section 421.161; complete field reviews and evaluations of all bedding tags; extensive statewide travel to execute statue requirements. The Clerk Typist III would be responsible for all permit applications and attendant paperwork; maintain data bases associated with the program; coordinate and organize permits, bedding tags, inspection reports, complaints, correspondence for the bedding facilities.

The DOH assumes the above FTE and expense and equipment would cost approximately $225,000 annually and would be paid from the General Revenue Fund.

Oversight assumes the new FTE would be located in existing facilities, and has therefore deducted DOH's estimated rental expenses. Oversight assumes, based on the DOH's response to a similar proposal, the DOH would require one Environmental Public Health Specialist IV ($39,744) to coordinate the program and make field inspections to assure compliance. Equipment ($3,730) would include office furniture and personal computers for one FTE. Expenses ($12,165) would include travel expenses, and office and communication expenses one FTE. Oversight assumes that they would not be required to issue permits to the approximately 48 bedding manufacturers in the state. The elimination of the $20 permit fee would result in a loss to the General Revenue Fund of approximately $960 annually.

FISCAL IMPACT - State Government	FY 1999	FY 2000	FY 2001
	(10 Mo.)
GENERAL REVENUE FUND
Loss - Department of Health
Permit fees	($960)	($960)	($960)
Cost - Department of Health
Personal service (1 FTE)	($33,934)	($41,756)	($42,800)
Fringe benefits	($9,512)	($11,704)	($11,997)
Expense and equipment	($11,978)	($10,197)	($10,503)
Total Costs - Department of Health	($55,424)	($63,657)	($65,300)
ESTIMATED NET EFFECT ON
GENERAL REVENUE FUND	($56,384)	($64,617)	($66,260)
FISCAL IMPACT - Local Government	FY 1999	FY 2000	FY 2001
	(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.

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

March 11, 1998