LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION March 30, 2009 TO: Honorable Jane Nelson, Chair, Senate Committee on Health & Human Services FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:SB1329 by Nelson (Relating to control of food-borne illnesses and microorganisms that cause food-borne illnesses or are otherwise injurious to health.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for SB1329, As Introduced: a negative impact of ($2,401,204) through the biennium ending August 31, 2011. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION
March 30, 2009
TO: Honorable Jane Nelson, Chair, Senate Committee on Health & Human Services FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:SB1329 by Nelson (Relating to control of food-borne illnesses and microorganisms that cause food-borne illnesses or are otherwise injurious to health.), As Introduced
TO: Honorable Jane Nelson, Chair, Senate Committee on Health & Human Services
FROM: John S. O'Brien, Director, Legislative Budget Board
IN RE: SB1329 by Nelson (Relating to control of food-borne illnesses and microorganisms that cause food-borne illnesses or are otherwise injurious to health.), As Introduced
Honorable Jane Nelson, Chair, Senate Committee on Health & Human Services
Honorable Jane Nelson, Chair, Senate Committee on Health & Human Services
John S. O'Brien, Director, Legislative Budget Board
John S. O'Brien, Director, Legislative Budget Board
SB1329 by Nelson (Relating to control of food-borne illnesses and microorganisms that cause food-borne illnesses or are otherwise injurious to health.), As Introduced
SB1329 by Nelson (Relating to control of food-borne illnesses and microorganisms that cause food-borne illnesses or are otherwise injurious to health.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for SB1329, As Introduced: a negative impact of ($2,401,204) through the biennium ending August 31, 2011. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
Estimated Two-year Net Impact to General Revenue Related Funds for SB1329, As Introduced: a negative impact of ($2,401,204) through the biennium ending August 31, 2011.
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 2010 ($1,652,615) 2011 ($748,589) 2012 ($734,412) 2013 ($735,372) 2014 ($736,364)
2010 ($1,652,615)
2011 ($748,589)
2012 ($734,412)
2013 ($735,372)
2014 ($736,364)
All Funds, Five-Year Impact: Fiscal Year Probable Savings/(Cost) fromGeneral Revenue Fund1 Probable Savings/(Cost) fromFood & Drug Registration5024 Probable Revenue Gain fromFood & Drug Registration5024 Change in Number of State Employees from FY 2009 2010 ($1,652,615) $0 $0 2.3 2011 ($748,589) ($938,000) $938,000 9.0 2012 ($734,412) ($938,000) $938,000 11.0 2013 ($735,372) ($938,000) $938,000 11.0 2014 ($736,364) ($938,000) $938,000 11.0
Fiscal Year Probable Savings/(Cost) fromGeneral Revenue Fund1 Probable Savings/(Cost) fromFood & Drug Registration5024 Probable Revenue Gain fromFood & Drug Registration5024 Change in Number of State Employees from FY 2009 2010 ($1,652,615) $0 $0 2.3 2011 ($748,589) ($938,000) $938,000 9.0 2012 ($734,412) ($938,000) $938,000 11.0 2013 ($735,372) ($938,000) $938,000 11.0 2014 ($736,364) ($938,000) $938,000 11.0
2010 ($1,652,615) $0 $0 2.3
2011 ($748,589) ($938,000) $938,000 9.0
2012 ($734,412) ($938,000) $938,000 11.0
2013 ($735,372) ($938,000) $938,000 11.0
2014 ($736,364) ($938,000) $938,000 11.0
Fiscal Analysis
The bill would allow the Executive Commissioner of the Health and Human Services Commission by rule to require the submission of the microbiological isolate during the reporting and investigation of outbreaks of food borne illnesses to the Department of State Health Services (DSHS). DSHS by rule may require food manufacturers or food wholesalers to test products for microorganisms or toxins injurious to human health. Tests and reporting would not be required before January 1, 2010. DSHS must create and maintain a list of reportable food-borne pathogenic microorganisms or toxins. The list must include salmonella. 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. This section takes effect September 1, 2010. Except where noted above the bill would take effect September 1, 2009.
The bill would allow the Executive Commissioner of the Health and Human Services Commission by rule to require the submission of the microbiological isolate during the reporting and investigation of outbreaks of food borne illnesses to the Department of State Health Services (DSHS).
DSHS by rule may require food manufacturers or food wholesalers to test products for microorganisms or toxins injurious to human health. Tests and reporting would not be required before January 1, 2010. DSHS must create and maintain a list of reportable food-borne pathogenic microorganisms or toxins. The list must include salmonella.
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. This section takes effect September 1, 2010.
Except where noted above the bill would take effect September 1, 2009.
Methodology
DSHS estimates that requiring manufacturers to submit microbiological isolates for testing to the department would cost an estimated $1.7 million in fiscal year 2010 and $1.4 million in fiscal year 2011 and beyond in General Revenue. It is estimated that DSHS would need 2.3 FTEs in fiscal 2010, 6.0 FTEs in fiscal year 2011 and 7.0 FTEs in fiscal year 2012 and beyond. The cost for the FTEs is estimated to be $0.2 million in fiscal year 2010, $0.5 million in fiscal year 2011 and beyond. These costs include, salary, benefits, travel, set up cost and other operating expenses. DSHS estimates that it would need $0.5 million in fiscal year 2010 and $0.1 million in fiscal year 2011 and beyond to buy testing equipment, supplies, and shipping containers. It is estimated that DSHS would need $933,484 in fiscal year 2010 and approximately $804,545 in fiscal year 2011 and beyond for consultations on food borne illnesses and to provide training to local health departments on specialized investigation techniques. 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 currently charges $670 per license. DSHS estimates that there will be a gain of $938,000 in fiscal year 2011 and beyond to the Food and Drug Registration Account. These revenues are assumed to offset the cost of the program. DSHS estimates it would require $0.3 million for 3 FTEs in fiscal year 2011 and 4 FTEs in fiscal year 2012 and beyond to provide inspections to and license the food shippers. This cost includes salary, benefits, travel, and other operating costs. The total cost to implement the bill would be $1.7 million in All Funds in each year covered by this cost estimate.
DSHS estimates that requiring manufacturers to submit microbiological isolates for testing to the department would cost an estimated $1.7 million in fiscal year 2010 and $1.4 million in fiscal year 2011 and beyond in General Revenue. It is estimated that DSHS would need 2.3 FTEs in fiscal 2010, 6.0 FTEs in fiscal year 2011 and 7.0 FTEs in fiscal year 2012 and beyond. The cost for the FTEs is estimated to be $0.2 million in fiscal year 2010, $0.5 million in fiscal year 2011 and beyond. These costs include, salary, benefits, travel, set up cost and other operating expenses. DSHS estimates that it would need $0.5 million in fiscal year 2010 and $0.1 million in fiscal year 2011 and beyond to buy testing equipment, supplies, and shipping containers. It is estimated that DSHS would need $933,484 in fiscal year 2010 and approximately $804,545 in fiscal year 2011 and beyond for consultations on food borne illnesses and to provide training to local health departments on specialized investigation techniques.
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 currently charges $670 per license. DSHS estimates that there will be a gain of $938,000 in fiscal year 2011 and beyond to the Food and Drug Registration Account. These revenues are assumed to offset the cost of the program.
DSHS estimates it would require $0.3 million for 3 FTEs in fiscal year 2011 and 4 FTEs in fiscal year 2012 and beyond to provide inspections to and license the food shippers. This cost includes salary, benefits, travel, and other operating costs.
The total cost to implement the bill would be $1.7 million in All Funds in each year covered by this cost estimate.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 537 State Health Services, Department of
537 State Health Services, Department of
LBB Staff: JOB, CL, BM, MB
JOB, CL, BM, MB