This Fiscal Note is not an official copy and should not be quoted or cited.
This Fiscal Note is not an official copy and should not be quoted or cited.
Fiscal Note - SB 0945 - Cotton growers ballot measures
COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. NO. 3987-03
BILL NO. Truly Agreed To and Finally Passed CCS for SB 945
SUBJECT: Agriculture and Animals: Cotton Growers
TYPE: Original
DATE: May 13, 1998
FISCAL SUMMARY
ESTIMATED NET EFFECT ON STATE FUNDS Net Effect on All State Funds* *Includes losses and savings of approximately $8 million annually, which net out to zero. ESTIMATED NET EFFECT ON FEDERAL FUNDS Net Effect on All Federal Funds
FUND AFFECTED
FY 1999
FY 2000
FY 2001 None
$0
$0
$0
Total Estimated
$0
$0
$0
FUND AFFECTED
FY 1999
FY 2000
FY 2001 None
$0
$0
$0 Total Estimated
$0
$0
$0
|
ESTIMATED NET EFFECT ON LOCAL FUNDS | |||
| FUND AFFECTED | FY 1999 | FY 2000 | FY 2001 |
| Local Government | $0 | $0 | $0 |
Numbers within parentheses: ( ) indicate costs or losses
This fiscal note contains 3 pages.
FISCAL ANALYSIS
ASSUMPTION
Officials from the Attorney General's Office, Department of Revenue and the State Treasurer's Office stated this proposal would not fiscally impact their agencies.
Officials from the Department of Agriculture (AGR) stated this proposal would reduce total state revenues by eliminating the commodity assessment fees currently collected by AGR. Currently, AGR collects check-off fees, tracks all receipts, refunds and maintains a running balance in the fund. This proposal would require fees to be collected by the appropriate commodity councils for deposit into their individually controlled bank accounts. However, the individual commodity councils may contract with the Department of Agriculture to perform administrative services, including collection of the check-off fees for deposit into the council's bank accounts. AGR would be allowed to retain fees for the cost of these administrative services, to be deposited into the commodity council merchandising fund.
Oversight assumes that essentially all revenue from fees, less administrative expenses, is currently being distributed to councils. Oversight also assumes the Councils would contract with AGR at a cost of approximately $104,000 annually (FTE, E & E, fringe benefits). These costs have been deducted from $8,000,000 in anticipated fee collections, with a net effect to state funds of zero.
| FISCAL IMPACT - State Government | FY 1999 | FY 2000 | FY 2001 | |||||||||
| (12 Mo.) | ||||||||||||
| COMMODITY COUNCIL | ||||||||||||
| MERCHANDISING FUND | ||||||||||||
| Loss - Department of Agriculture (AGR) | ||||||||||||
| Reduction in Revenue from lost | ||||||||||||
| check-off fees | ($7,896,063) | ($7,896,063) | ($7,896,063) | |||||||||
| Savings-Department of Agriculture (AGR) | ||||||||||||
| Program costs - distributions to councils | $7,896,063 | $7,896,063 | $7,896,063 | |||||||||
|
ESTIMATED NET EFFECT ON | ||||||||||||
| COMMODITY COUNCIL | ||||||||||||
| MERCHANDISING FUND | $0 | $0 | $0 | |||||||||
| FISCAL IMPACT - Local Government | FY 1999 | FY 2000 | FY 2001 | |||||||||
| (10 Mo.) | ||||||||||||
| $0 | $0 | $0 | ||||||||||
FISCAL IMPACT - Small Business
Small businesses would be expected to be fiscally impacted to the extent that they may incur additional administrative costs due to this proposal, if they choose not to contract with the Department of Agriculture for administration of their check-off fees.
DESCRIPTION
This proposal would clarify the eligibility of cotton growers to vote in an assessment referendum. Each grower is entitled to one vote. Current law allows one vote per acre dedicated to cotton production.
This proposal would change the accounting of the monies collected for the Commodity Council Merchandising Fund. The monies shall be collected by the appropriate commodity council. The individual councils may contract with the Department of Agriculture to perform all administrative services related to the collection and accounting of the funds. Administrative costs related to such services shall be deposited into the Commodity Council Merchandising Fund. This act shall be in full force and effect upon passage and approval or on July 1, 1998, whichever occurs later.
This legislation is not federally mandated, would not duplicate any other program and would not require additional capital improvements or rental space. This proposal would reduce Total State Revenues.
SOURCES OF INFORMATION
Department of Revenue
Department of Agriculture
Attorney General's Office
State Treasurer's Office
Jeanne Jarrett, CPA
Director
May 13, 1998