COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION



FISCAL NOTE



L.R. No.: 1147-01

Bill No.: Truly Agreed to and Finally Passed SB 388

Subject: Agriculture and Animals; Agriculture Dept.; Banks and Financial Institutions

Type: Original

Date: May 19, 2003




FISCAL SUMMARY



ESTIMATED NET EFFECT ON GENERAL REVENUE FUND
FUND AFFECTED FY 2004 FY 2005 FY 2006
Total Estimated

Net Effect on

General Revenue

Fund

$0 $0 $0



ESTIMATED NET EFFECT ON OTHER STATE FUNDS
FUND AFFECTED FY 2004 FY 2005 FY 2006
Total Estimated

Net Effect on Other

State Funds

$0 $0 $0



Numbers within parentheses: ( ) indicate costs or losses.

This fiscal note contains 3 pages.











ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 2004 FY 2005 FY 2006
Total Estimated

Net Effect on All

Federal Funds

$0 $0 $0



ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 2004 FY 2005 FY 2006
Local Government $0 $0 $0




FISCAL ANALYSIS



ASSUMPTION



Officials with the Department of Agriculture assume this proposal will have a positive impact on the ability of livestock producers to obtain financing on animal facilities. The guarantee amount is doubled and reserve amount is cut in half so the net impact is zero.



Officials with the Office of Administration, Division of Accounting and Division of Budget and Planning assume this proposal will have no fiscal impact on their agency.



Officials with the Department of Economic Development assume this proposal will have no fiscal impact on their agency.



FISCAL IMPACT - State Government FY 2004

(10 Mo.)

FY 2005 FY 2006
$0 $0 $0





FISCAL IMPACT - Local Government FY 2004

(10 Mo.)

FY 2005 FY 2006
$0 $0 $0



FISCAL IMPACT - Small Business



Small business (agriculture producers) will benefit from being able to obtain a higher guarantee percentage.



DESCRIPTION



This act increases the amount to eligible borrowers that can be guaranteed from the Single Purpose Animal Facilities Loan Guarantee Fund from 25% to 50% of the amount borrowed with a limit of $250,000. This act decreases the amount to total outstanding guaranteed loans for immediate redemption of 20% of the outstanding loans at any one time. This is decreased from 40%.

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

Office of Administration - Accounting

Department of Economic Development - Finance

Division of Budget and Planning



















Mickey Wilson, CPA

Director

May 19, 2003