Colorado Legislative Council Staff
STATE
FISCAL IMPACT
Drafting Number: Prime Sponsor(s): |
LLS 99-0331 Rep. Young |
Date: Bill Status: Fiscal Analyst: |
January 12, 1999 House Agriculture Steve Tammeus (866-2756) |
TITLE: CONCERNING THE REGULATION OF COLORADO COMMERCIAL FEED.
Fiscal Impact Summary |
FY 1999/2000 |
FY 2000/2001 |
State Revenues General Fund |
|
-$1,135 |
State Expenditures General Fund |
|
$1,028 |
FTE Position Change |
0.0 FTE |
0.0 FTE |
Other State Impact: None |
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Effective Date: July 1, 2000 |
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Appropriation Summary for FY 1999-2000: None |
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Local Government Impact: None |
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Summary of Legislation
This bill repeals the entirety of the "Colorado Commercial Feed Law of 1979" under Article 60 of Title 35, C.R.S., and reenacts the law with the following additions:
• requires commercial feed manufacturers to obtain an annual license from the Department of Agriculture, establishes the licensing procedure, sets the license and renewal fees at $10 each, and establishes a $10 penalty for failure to comply;
• eliminates the feed registration requirement;
• allows the Commissioner of Agriculture, after an administrative hearing, to deny an application or refuse to renew a license of any person who violates the law;
• authorizes the commissioner to promulgate and amend rules to implement the law;
• permits the commissioner to impose a civil penalty of up to $750 per day;
• reduces the maximum inspection fee of $0.20 to $0.15 per ton of commercial feed distributed in the state;
• establishes an alternative inspection fee of $10 per product for products sold in packages weighing 10 pounds or less; and
• requires each person who is required to pay an inspection fee to submit an annual, rather than semi-annual, statement to the commissioner that identifies the number of new tons of commercial feed distributed in the state.
State Revenues
Pursuant to Section 2-2-322, C.R.S., which requires legislative service agency review of legislative measures which include the creation or increase of any fee collected by a state agency, Table 1 provides an overview of fees the Department of Agriculture would collect starting FY 2000-01 per the provisions of this bill. All revenue from these fees will be deposited to the state General Fund. Therefore, this bill would reduce General Fund revenue starting in FY 2000-01 by approximately $1,135 which represents 0.4 percent of current annual commercial feed fee revenue
Table 1 - Department of Agriculture Commercial Feed Law Fees |
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Type of Fee |
Proposed Fee |
Number |
Total Fee |
Annual License |
$10 |
850 |
$8,500 |
Feed Consultant License |
$10 |
50 |
$500 |
Late License |
$10 |
85 |
$850 |
Livestock Products |
$0.15/ton |
1,542,141 |
$231,321 |
Pet Products |
$0.15/ton |
191,192 |
$28,679 |
Products under 10 lbs. each |
$10 |
6,200 |
$62,000 |
Companies reporting under 167 tons |
$25 |
443 |
$11,075 |
Companies filing late |
$10 |
50 |
$500 |
Subtotal Proposed Fees |
|
|
$343,425 |
Registration Fees |
Current Fee |
|
$75,284 |
Tonnage Fees |
Current Fee |
|
$269,276 |
Subtotal Current Fees |
|
|
$344,560 |
Total Fee Impact - Revenue Decrease |
($1,135) |
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State Expenditures
This bill allows the Commissioner of Agriculture, after an administrative hearing, to deny an application or refuse to renew a license of any person who violates the law, and to impose a civil penalty of up to $750 per day. The Department of Agriculture anticipates at least one new administrative hearing per year which will require additional legal services from the Department of Law. The annual General Fund cost for these legal services starting in FY 2000-01 is estimated to be $1,028, based upon 20 hours of attorney time at $51.40 per hour.
State Appropriations
This fiscal note would imply that no new state appropriations are required for FY 1999-2000.
Departments Contacted
Agriculture Law