RD589 - Cost Recovery Analysis of “Larger” Food Establishments

Executive Summary:

Item 295 of the 2017 Appropriation Act (Chapter 836 of the 2017 Acts of Assembly) required the Virginia Department of Health (VDH) to examine the cost recovery from “larger" food establishments to determine if services are adequately supported and submit a report to the Chairmen of the House Appropriations and Senate Finance Committees by December 15, 2017.

In July of 2016, VDH and the Virginia Department of Agriculture and Consumer Services (VADACS) jointly adopted the 2013 U.S. Federal Drug Administration (FDA) Food Code pursuant to § 35.1-14 of the Code of Virginia.  In addition, VDH adopted the FDA’s Voluntary National Retail Food Regulatory Program Standards (VNRPS) which serves as a uniform method for regulatory authorities charged with administering programs related to food safety to reduce the occurrence of illnesses and deaths related to food borne illness. These mandates directly contribute to the implementation and administration of the food program and therefore impact expenditures.

This report will outline costs associated with complying with the newly adopted FDA Food Code and the VNRPS as they relate to “larger" food establishments.  Such analysis in the report shall include the following: (1) Overview of the Food Program in the Commonwealth, (2) Methodology of Study, and (3) Fee Adjustment Proposal and Alternatives.