COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. NO.: 3143-03
BILL NO.: SB 857
SUBJECT: Department of Agriculture; Livestock
TYPE: Original
DATE: February 10, 2000
FISCAL SUMMARY
| FUND AFFECTED | FY 2001 | FY 2002 | FY 2003 |
| General Revenue Fund | $0 to ($201,890) | $0 to ($195,343) | $0 to ($200,317) |
| Total Estimated
Net Effect on All State Funds |
$0 to ($201,890) | $0 to ($195,343) | $0 to ($200,317) |
| FUND AFFECTED | FY 2001 | FY 2002 | FY 2003 |
| None | $0 | $0 | $0 |
| Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
| FUND AFFECTED | FY 2001 | FY 2002 | FY 2003 |
| Local Government | $0 | $0 | $0 |
Numbers within parentheses: ( ) indicate costs or losses.
This fiscal note contains 5 pages.
ASSUMPTION
The Department of Labor and Industrial Relations and the State Courts Administrator assume they would not be administratively impacted by this proposed legislation.
The Department of Corrections assumes the fiscal impact to their agency would be $0/minimal. They assume the cost involved would be absorbable.
The Office of the Attorney General (AGO) assumes, in a response to a similar proposal (HB1602), that this proposed legislation would require one Assistant Attorney General II to work with the Department of Agriculture in rule making and to enforce the provisions of this bill.
The Department of Agriculture (AGR) assumes the proposed legislation requires the director of agriculture to act as Trustee on surety instruments for approximately 300 packers whose annual purchases exceed $500,000 under proposed section 276.706; to ascertain and post public notice of approximately 170 stockyards under proposed 276.709; to register stockyards under proposed 276.712(2.); and to receive, examine, approve, and post stockyard service rates and charges under proposed 276.712. It also requires the director to initiate corrective action for violations of the chapter.
Performing these functions will require regulatory oversight. Some 170 stockyards will have to file rates for services and be approved by the director. In addition, the director will have to serve as Trustee on the surety instrument for some 300 packers. Ensuring compliance will require periodic review and assessment of registrant records pertaining to rates for services and payment to sellers of livestock. For those reasons, three new FTE (1 Regulatory Auditor III, 1 Regulatory Auditor II, and 1 Clerk Typist III) and associated costs are included in this fiscal estimate.
The proposed legislation requires the Attorney General to enforce the provisions of the law. Historically, the Department has experienced a rapid turnover in attorneys assigned to represent them in legal matters. Additionally, these attorneys are usually assigned to assist 3 or more divisions within the Department, which substantially limits their availability from time to time. The USDA Packers & Stockyards administration had to take formal legal action against 65 firms/individuals for violations of the act during FY '98. Missouri taking formal disciplinary action for violations of the proposed legislation will require consistent and experienced legal representation. Assuming the Attorney General will not assign a senior attorney to enforce the provisions of this proposed legislation, an additional $50,000 annually would be needed to retain legal assistance (and is included in this fiscal estimate).
ASSUMPTION (continued)
Oversight assumes since this proposed legislation appears to duplicate federal law, some duties
may be coordinated with the USDA. Dependent on the degree to which the AGR can rely on work performed by the USDA, costs have been ranged from $0 to approximately $200,000 annually.
Oversight adjusted AGO's Expense and Equipment to bring them in line with guidelines established by the Office of Administration (OA) and to reflect a more reasonable expense. Additionally, Oversight adjusted AGR's salaries to bring them in line with OA's guidelines. Oversight also removed the Legal Retainer Fees requested by the AGR since the AGO has requested an Assistant Attorney General II.
| FISCAL IMPACT - State Government | FY 2001
(10 Mo.) |
FY 2002 | FY 2003 |
| GENERAL REVENUE FUND | |||
| Cost - Department of Agriculture | |||
| Personal Service - (3 FTE) | ($79,440) | ($97,711) | ($100,153) |
| Fringe Benefits | ($24,428) | ($30,046) | ($30,797) |
| Expense and Equipment | ($45,650) | ($11,536) | ($11,882) |
| Total Cost - AGR | ($149,518) | ($139,293) | ($142,832) |
| Cost - Office of the Attorney General | |||
| Personal Service - (1 FTE) | ($30,625) | ($37,669) | ($38,610) |
| Fringe Benefits | ($9,417) | ($11,583) | ($11,873) |
| Expense and Equipment | ($12,330) | ($6,798) | ($7,002) |
| Total Cost - AGO | ($52,372) | ($56,050) | ($57,485) |
| Estimated Net Effect on | $0 to | $0 to | $0 to |
| GENERAL REVENUE FUND | ($201,890) | ($195,343) | ($200,317) |
| FISCAL IMPACT - Local Government | FY 2001
(10 Mo.) |
FY 2002 | FY 2003 |
| $0 | $0 | $0 |
FISCAL IMPACT - Small Business
This proposal would be expected to have a direct fiscal impact to small businesses who sell meat or livestock. Administrative costs could increase, but such increases should be minimal.
DESCRIPTION
This act mirrors the federal "Packers and Stockyards Act" to the extent possible with certain modifications for state use.
Any unjustly discriminatory action on the part of a packer or stockyard is illegal. This includes any practice creating a monopoly or apportioning distribution and sales of meats or livestock. Poultry contracts with growers must also conform to the non-discrimination standards of this act.
Stockyards must be certified by the Director of the Department of Agriculture on a monthly basis. Such certification requires a statement of compliance with the letter and intent of
this act.
Any rates charged for services provided by a stockyard must be approved by the Department of Agriculture and posted on the premises. Changes in the schedule of rates for services must be
approved by the Department. Any violation of these provisions is a Class "B" misdemeanor. Willful violation of this section is a Class "A" misdemeanor.
Stockyards are prohibited from practicing any discrimination or deception in hiring people to perform any services provided by the stockyard. The act also prohibits packer ownership of
livestock for slaughter for more than 14 days prior to slaughter.
This legislation is not federally mandated, would not require additional capital improvements or rental space, but would duplicate an existing federal program. AGR noted that USDA Packers and Stockyards Administration performs essentially the same duties as outlined in this proposed legislation (Packers and Stockyards Act, 1921, as amended).
SOURCES OF INFORMATION
Department of Agriculture
Department of Corrections
Department of Labor and Industrial Relations
Office of the Attorney General
State Courts Administrator
Jeanne Jarrett, CPA
Director
February 10, 2000