SB 0521 - Fiscal Note

Fiscal Note - SB 0521 - Expands Authority For Coops To Invest In Other Entities

L.R. NO.  2315-03
BILL NO.  Truly Agreed To and Finally Passed SS for SB 521
SUBJECT:  Cooperative Marketing Associations
TYPE:     Original
DATE:     May 2, 1996



                              FISCAL SUMMARY

                    ESTIMATED NET EFFECT ON STATE FUNDS

FUND AFFECTED               FY 1997         FY 1998         FY 1999

General Revenue                  $0       ($60,850)       ($52,204)

Total Estimated
Net Effect on All
State Funds                      $0       ($60,850)       ($52,204)


                   ESTIMATED NET EFFECT ON FEDERAL FUNDS

FUND AFFECTED               FY 1997         FY 1998         FY 1999

None

Total Estimated
Net Effect on All
Federal Funds                    $0              $0              $0


                    ESTIMATED NET EFFECT ON LOCAL FUNDS

FUND AFFECTED               FY 1997         FY 1998         FY 1999

Local Government                 $0              $0              $0


                              FISCAL ANALYSIS

ASSUMPTION

The Department of Economic Development assumed no fiscal impact from this
proposal.

The Department of Agriculture (DOA) assumed they would request one FTE, a
program coordinator,  and related expenses and equipment including an
automobile to carry out the responsibilities of the proposal.

The Program Coordinator would work with established and existing resources,
universities, organizations, and markets to provide agricultural producers
information and assistance on cooperative marketing and processing.  The
Program Coordinator would also disseminate information on agricultural
production, processing and marketing.

The DOA assumed this proposal did not completely duplicate any current
programs.  However, similarities exist between this proposal and the
University Extension Service's Commercial Agriculture Program.

Oversight assumes the Program Coordinator will be based out of the DOA
central office and can use an existing fleet vehicle.  Accordingly, Oversight
has not included costs to purchase a vehicle.


FISCAL IMPACT - State Government      FY 1997    FY 1998    FY 1999
                                     (10 Mo.)
GENERAL REVENUE FUND
Costs - DOA
  Personal Service                         $0  ($33,498)  ($34,336)
  Fringe Benefits                           0   (10,291)   (10,548)
  Expense and Equipment                     0   (17,061)    (7,320)
Total Costs - DOA                           0  ($60,850)  ($52,204)

Net effect on -
GENERAL REVENUE FUND                       $0  ($60,850)  ($52,204)


FISCAL IMPACT - Local Government      FY 1997    FY 1998    FY 1999
                                     (10 Mo.)

                                            0          0          0


DESCRIPTION

This proposal would authorize cooperative marketing associations to invest in
other entities including those issuing capital stock.

This proposal would also require the Department of Agriculture to provide
assistance to persons engaged in agricultural production in cooperative
marketing and processing, developing markets, and disseminate information and
technology related to agricultural production, processing and marketing.  The
DOA will also be required to report on these activities annually.

This legislation is not federally mandated, would not duplicate any other
program and would not require additional capital improvements or rental
space.


SOURCES OF INFORMATION

Department of Agriculture
Department of Economic Development