SB 0972 - Fiscal Note

Fiscal Note - SB 0972 - Industrial Hemp Production Act

L.R. NO.  3504-02
BILL NO.  SB 972
SUBJECT:  Industrial hemp production
TYPE:     Original
DATE:     March 18, 1996



                              FISCAL SUMMARY
                    ESTIMATED NET EFFECT ON STATE FUNDS


FUND AFFECTED              FY 1997             FY 1998           FY 1999

General Revenue                 $0                  $0                $0
                            --to--              --to--            --to--
                         ($50,000)           ($50,000)         ($50,000)

Total Estimated
Net Effect on All
State Funds                     $0                  $0                $0
                            --to--              --to--            --to--
                         ($50,000)           ($50,000)         ($50,000)



                   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 Coordinating Board for Higher Education (CBHE)  assumed this proposal
would have no fiscal impact to the CBHE.

The Department of Agriculture (DOA) assumed the number of growers that would
be involved in this project is unknown.  DOA assumed they would request
$3,750 to hire a contract employee for 250 hours to license and inspect
records and growing areas for up to five producers of industrial hemp.  DOA
assumed the contractor would need $1,900 for 5,000 miles of travel expenses
and office supplies.  DOA estimated the total cost to the DOA to carry out
this proposal would be $5,650.

Oversight assumes the administrative costs associated with this proposal
could be accomplished with existing staff in the DOA.  Some costs for
overtime may be incurred.  If the number of industrial hemp producers
increases appreciably, the DOA could request additional resources through the
budget process.   Oversight also assumes subject to appropriation, one
institution of higher education would receive an award of $50,000 with which
to make grants for research projects.


FISCAL IMPACT - State Government FY 1997   FY 1998   FY 1999
                                (10 Mo.)
GENERAL REVENUE FUND

Costs - DOA
  Research Grants to - Institution of          $0        $0   $0
      Higher Education            --to--    --to--    --to--
                               ($50,000) ($50,000) ($50,000)


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

                                      $0        $0        $0



DESCRIPTION

This act authorizes the growing and maintenance of  industrial hemp for
commercial uses.  Examples of permitted commercial uses are the manufacture
of rope, sacks, yarn, paper, cloth and such other products as may be made
from the fiber or sterilized seed of industrial hemp.

The Department of Agriculture is given regulatory authority over the
licensing and growing of industrial hemp.

Higher education institutions may receive up to $50,000 to conduct research
on uses of industrial hemp.  Institutions receiving such appropriations may
make grants of up to $10,000 for each research project.

Any person violating any provision of this act may be charged as provided in
the Comprehensive Drug Control Act of 1989, Chapter 195, RSMo.

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
Coordinating Board of Higher Education