COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.: 4349-01
Bill No.: SB 1067
Subject: Agricultural Department: Boards and Commissions
Type: Original
Date: February 6, 2002
FISCAL SUMMARY
| FUND AFFECTED | FY 2003 | FY 2004 | FY 2005 |
| General Revenue | $0 | $750,000 | $750,000 |
| Missouri Agricultural Products Marketing Development Fund | $0 | $0 | $0 |
| Organic Production and Certification Fee | Unknown | Unknown | Unknown |
| Total Estimated
Net Effect on All State Funds |
Unknown | $750,000 to Unknown | $750,000 to Unknown |
| FUND AFFECTED | FY 2003 | FY 2004 | FY 2005 |
| Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
Numbers within parentheses: ( ) indicate costs or losses.
This fiscal note contains 4 pages.
| FUND AFFECTED | FY 2003 | FY 2004 | FY 2005 |
| Local Government | $0 | $0 | $0 |
Numbers within parentheses: ( ) indicate costs or losses.
ASSUMPTION
Officials of the Department of Agriculture and the State Treasurer stated that their agencies would not request additional resources due to this proposal.
Under current law, the legislature is to appropriate moneys from the General Revenue Fund to the Missouri Agricultural Products Marketing Development Fund in fiscal years 2002 through 2006. This proposal would repeal that language. Therefore, the fiscal impact will show a savings to the General Revenue Fund and a loss to the Missouri Agricultural Products Marketing Development Fund beginning in FY 2004.
The Missouri Agricultural Products Marketing Development Fund is to receive income from license fees under current law. This proposal potentially changes the licensing fee structure but does not change the destination of licensing fees collected. Therefore the fiscal impact will not show any gain or loss of licensing fee income to the Fund.
| FISCAL IMPACT - State Government | FY 2003
(10 Mo.) |
FY 2004 | FY 2005 |
| GENERAL REVENUE FUND | |||
| Savings - Transfers to the Missouri Agricultural Products Marketing Development Fund | $0 | $750,000 | $750,000 |
| ESTIMATED NET EFFECT ON GENERAL REVENUE FUND | $0 | $750,000 | $750,000 |
| MISSOURI AGRICULTURAL PRODUCTS MARKETING DEVELOPMENT FUND | |||
| Savings - Marketing Development Activities | $0 | $750,000 | $750,000 |
| Loss - Transfers from General Revenue Fund | $0 | ($750,000) | ($750,000) |
| ESTIMATED NET EFFECT ON MISSOURI AGRICULTURAL PRODUCTS MARKETING DEVELOPMENT FUND | $0 | $0 | $0 |
| ORGANIC PRODUCTION AND CERTIFICATION FEE FUND | |||
| Income - Fees for use of Missouri Organically Grown Trademark | Unknown | Unknown | Unknown |
| ESTIMATED NET EFFECT ON ORGANIC PRODUCTION AND CERTIFICATION FEE FUND | Unknown | Unknown | Unknown |
| FISCAL IMPACT - Local Government | FY 2003
(10 Mo.) |
FY 2004 | FY 2005 |
| $0 | $0 | $0 |
FISCAL IMPACT - Small Business
Small business which would want to use Missouri agriculture trademarks would be affected by this proposal.
DESCRIPTION
This proposal would allow the Department of Agriculture to cooperate with government and private entities to develop standards and labeling for organic farming, including cost and revenue sharing agreements for programs to develop the standards and labels. It would also create the "Organic Production and Certification Fee Fund", which would receive funds from fees paid for use of trademarks for Missouri organically grown products.
This proposal would eliminate mandatory appropriations from the General Revenue Fund to the Missouri Agricultural Products Marketing Development Fund, and eliminate the current fee structure for use of the AgriMissouri trademark or successor trademarks. The Citizens' Advisory Commission for Marketing Missouri Agricultural Products would establish trademark fee schedules and would establish guidelines and make recommendations to the Director of the Department of Agriculture for the use of funds.
The Commission would also create to two additional trademarks; one for the labeling of Missouri certified organic products, the other for Missouri certified family-farm-produced products.
The proposal would eliminate the requirement that the Marketing Division of the Department of Agriculture's Internet web site allow consumers to place orders for Missouri agricultural products and enable small companies which process Missouri agricultural products to pool products.
This legislation is not federally mandated, would not duplicate any other program and would not require additional capital improvements or rental space. This legislation might affect Total State Revenue.
SOURCES OF INFORMATION
Department of Agriculture
Office of the State Treasurer
Mickey Wilson, CPA
Acting Director
February 6, 2002