Brief ⁽¹⁾

As introduced, SB 100 would raise the maximum allowable fee for application for or renewal of food service licenses from $100 to $200. The Department of Health and Environment issues these licenses. The House Committee amended the bill so that nutrition sites that serve but do not prepare food would be exempted from such fees. The House Committee further amended the bill to allow a fee based on a graduated scale established by the Secretary of Health and Environment to be charged to grocery stores and food processing plans. Currently, such facilities are inspected by the Department but no fee is assessed.

Background

SB 100 was assigned to the Ways and Means Subcommittee on the Department of Health and Environment. The Subcommittee was informed that if SB 100 is enacted, the Department of Health and Environment intends to raise fees to $130 this year to cover FY 2003 program operations. The Subcommittee heard testimony that the Kansas Restaurant and Hospitality Association has no objection to the passage of SB 100.

The House Committee amended portions of HB 2500 into the bill to exempt senior nutrition sites, which serve but do not prepare food, from fees and to require grocery stores and food processing plants to pay fees. Currently, these facilities do not pay fees but are inspected. The food inspection program's FY 2002 budgeted expenditures are $2,235,126, including $350,039 from the State General Fund. The General Fund dollars are used for activities involving grocery stores and food processing plants.

The fiscal note from the Division of the Budget on the original bill indicates that the increased fees would result in additional revenue of $414,000. Of the increased revenue, 40.0 percent or $165,600 would go to the Food Service Inspection Reimbursement Fund. Revenues to this fund would be expended for the reimbursement of local health agencies contracting with the Department to provide food service inspection and regulatory services. The remainder of the increase ($248,400) would go the Food Inspection Fee Fund. Any fiscal effect resulting from the passage of SB 100 would be in addition to the amounts included in The FY 2002 Governor's Budget Report.

1. *Supplemental notes are prepared by the Legislative Research Department and do not express legislative intent. The supplemental note and fiscal note for this bill may be accessed on the Internet at http://www.ink.org/public/legislative/fulltext.cgi