Colorado Legislative Council Staff Fiscal Note
                        STATE and LOCAL
                     REVISED FISCAL IMPACT
         (replaces fiscal note dated January 27, 2015)

Drafting Number:
Prime Sponsor(s):
LLS 15-0546
Sen. Martinez Humenik
Rep. Winter; Buck
Date:
Bill Status:
Fiscal Analyst:
February 18, 2015
House Business, Affairs and Labor
Clare Pramuk (303-866-2677)


BILL TOPIC:    SMALL BUSINESS COTTAGE FOODS ACT


Fiscal Impact Summary*
FY 2015-2016
FY 2016-2017


State Revenue




State Expenditures
                      Increased workload.
                                
                                
                      FTE Position Change
                                
                                
                                
                                
                 Appropriation Required:  None.
                                
          *    This summary shows changes from current law under the bill for each fiscal year. 


Summary of Legislation

     The reengrossed bill amends the Colorado Cottage Foods Act to allow cottage food
producers (producers) to increase their allowable net revenues per calendar year from the sale of
each eligible food product from $5,000 to $10,000.


Background

     The Colorado Cottage Foods Act allows producers of nonpotentially hazardous foods to use
their home, commercial, or public kitchens to produce foods to sell directly to the ultimate
consumers without a retail food license.  A nonpotentially hazardous food is defined in current law
as any food or beverage that, when stored under normal conditions without refrigeration, will not
support the rapid and progressive growth of microorganisms that cause food infections or food
intoxications.  The Act limits these foods to spices, teas, dehydrated produce, nuts, seeds, honey,
jams, jellies, preserves, fruit butter, and baked goods, including candies.


State Expenditures

     This bill is anticipated to increase workload for the Department of Public Health and
Environment (DPHE) beginning in FY 2015-16 to conduct food sampling and inspection in
response to complaints.  By allowing producers to increase the size of their operations, the bill may
result in an increase in complaints and corresponding workload for the DPHE.  The size of the
increase is not known and will depend on the ability of producers to maintain food safety as their
operations and numbers of sales outlets increase.  At this time, any increase in complaints is not
expected to require additional appropriations.  Should there be a large increase in complaints, the
DPHE can request additional funding through the annual budget process.Local Government Impact

     Increasing the size of a producer's sales volume increases the probability that producers
will experience food safety issues.  Should these issues arise, the fiscal note assumes that a
county or district public health agency, rather than the DPHE, will be responsible for the
investigation of food borne illness.  Like the state expenditures impact above, the amount of
increase is not known and will depend on the ability of cottage food producers to maintain food
safety as their operations and numbers of sales outlets increase.   


Effective Date

     The bill takes effect August 5, 2015, if the General Assembly adjourns on May 6, 2015, as
scheduled, and no referendum petition is filed.


State and Local Government Contacts

     Agriculture         Counties            Public Health and Environment