COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.: #3697-02
Bill No.: SB 1178
Subject: Agriculture; Business and Commerce
Type: Original
Date: February 11, 2004
# Correct LR No. on first page
FISCAL SUMMARY
| FUND AFFECTED | FY 2005 | FY 2006 | FY 2007 |
| Total Estimated
Net Effect on General Revenue Fund |
$0 | $0 | $0 |
| FUND AFFECTED | FY 2005 | FY 2006 | FY 2007 |
| Total Estimated
Net Effect on Other State Funds |
$0 | $0 | $0 |
Numbers within parentheses: ( ) indicate costs or losses.
This fiscal note contains 3 pages.
| FUND AFFECTED | FY 2005 | FY 2006 | FY 2007 |
| Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
| FUND AFFECTED | FY 2005 | FY 2006 | FY 2007 |
| Local Government | $0 | $0 | $0 |
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.
In a similar proposal officials with the Office of Administration, Division of Accounting and Division of Budget and Planning and Department of Economic Development assume this proposal will have no fiscal impact on their agency.
| FISCAL IMPACT - State Government | FY 2005
(10 Mo.) |
FY 2006 | FY 2007 |
| $0 | $0 | $0 | |
| FISCAL IMPACT - Local Government | FY 2005
(10 Mo.) |
FY 2006 | FY 2007 |
| $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 allows the Missouri Agricultural and Small Business Development Authority (MASBDA) to issue certificates of guaranty covering a first loss up to but not more than fifty percent for eligible borrowers. This act states that outstanding guaranteed loans shall at no time exceed an amount which would allow immediate redemption of twenty percent of the outstanding loans guaranteed by the fund at any one time.
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
February 11, 2004