Notice of Introduction for House Bill 2062 - 10 Year Analysis Complete
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HB 2062, titled AN ACT Relating to maple syrup processing operations, has been introduced in the House of Representatives. The Office of Financial Management has identified this bill as requiring a ten-year projection of increased cost to the
taxpayers or affected fee payers.
Ten-year projection:
|
Fiscal |
Additional Inspection Fee |
Food Processor License Fee |
Maple Syrup Processor Permit Fee |
Total |
|
|
|
|||||
|
2026 |
$150 |
($276) |
$1,250 |
$1,124 |
|
|
2027 |
$150 |
($276) |
$1,250 |
$1,124 |
|
|
2028 |
$300 |
($276) |
$1,250 |
$1,274 |
|
|
2029 |
$300 |
($276) |
$1,250 |
$1,274 |
|
|
2030 |
$300 |
($276) |
$1,250 |
$1,274 |
|
|
2031 |
$300 |
($276) |
$1,250 |
$1,274 |
|
|
2032 |
$300 |
($276) |
$1,250 |
$1,274 |
|
|
2033 |
$300 |
($276) |
$1,250 |
$1,274 |
|
|
2034 |
$300 |
($276) |
$1,250 |
$1,274 |
|
|
2035 |
$300 |
($276) |
$1,250 |
$1,274 |
|
|
|
|||||
|
Total: |
$2,700 |
($2,760) |
$12,500 |
$12,440 |
|
Department of Agriculture:
Section 4 (1) requires a permitting every two years at a cost of $250 per permit. Additionally, Section 5 (3) states that the agency shall charge an inspection fee of $150 for any additional basic sanitation inspection required due to a failing initial permitting inspection or an inspection for compliance. Section 7 establishes a penalty for violations of the chapter not addressed through civil penalties, of up to $1,000 per day of violation.
Sections 4 and 5
Revenue collected by WSDA under the provisions of Section 4 (1) and Section 5 (3) would be deposited in the Food Processing Inspection Account within the Agricultural Local Fund, as established in in RCW 69.07.120.
This fiscal note assumes the three current maple syrup processors with food processing plant licenses would apply for the new permit rather than renew their current licenses.
Due to the amount of land needed to produce a volume of maple syrup sufficient to operate a business along with the large capital needed for processing equipment, this fiscal note assumes a limited number of maple syrup processors applying for the permit. Cash receipt estimates assume five applicants in the first year and five new applicants in the second year, with ten processors having permits every two years with no net change over the next ten years.
With these assumptions, maple processing permit revenue is estimated to be $250 x 5 = $1,250 per year.
In addition to permit revenue, this fiscal note assumes a loss of food processor license revenue, based on the assumption currently licensed producers would operate under the new permit moving forward. Estimated annual food processor license revenue loss is $92 X 3 = $276.00 per year.
Additional basic sanitation inspections would be required for failed initial permitting and routine inspections and for compliance monitoring in response to a food complaint, foodborne outbreak, or other public health emergency, with a fee of $150 per inspection. With five new or renewed permits estimated each year (up to 10 producers operating in the state each biennium), this fiscal note assumes one additional inspection each year in the first two years, and two inspections each subsequent year for a total of $300 per year.
Total estimated cash receipts based on the assumptions above are $1,124 in FYs 2026 and FY 2027, and $1,274 in each subsequent fiscal year, starting in FY 2028. Individual fee payer impacts for any new producers would be $250 every other year for each permit/renewal, and $150 for any needed additional inspections. The fee impact to producers currently licensed as food processors would be a net increase of $66.00 every two years, because they currently pay $92 each year for annual food processor licenses.
Ten-year projection prepared in consultation with the following agencies:
Department of Agriculture
Bill sponsors and contact information:
Legislative Bill Information Website:
http://apps.leg.wa.gov/billinfo/
Initiative 960 Website: http://www.ofm.wa.gov/tax/default.asp