COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.: 4555-01
Bill No.: SB 1165
Subject: Agriculture and Animals: Department of Agriculture
Type: Original
Date: February 28, 2002
FISCAL SUMMARY
| FUND AFFECTED | FY 2003 | FY 2004 | FY 2005 |
| Pesticide Project Fund | $1,111,346 | $1,109,567 | $1,107,057 |
| Total Estimated
Net Effect on All State Funds |
$1,111,346 | $1,109,567 | $1,107,057 |
| FUND AFFECTED | FY 2003 | FY 2004 | FY 2005 |
| Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
| FUND AFFECTED | FY 2003 | FY 2004 | FY 2005 |
| Local Government | $0 | $0 | $0 |
Numbers within parentheses: ( ) indicate costs or losses.
This fiscal note contains 3 pages.
ASSUMPTION
Officials from the Office of the State Treasurer stated the proposed legislation would not fiscally affect their agencies.
Officials from the Department of Agriculture (AGR) stated the proposed legislation will require one Program Coordinator to administer this program, i.e., to account for all money and solicit, review and fund grant proposals. It would require the Program Coordinator to visit all funded projects 2-4 times per year to make sure requirements of grant and/or Memorandum of Understanding are being fulfilled. One clerical person would be needed to handle all clerical work such as typing Memorandum of Understandings, financial accounting, filing and other clerical work. All personal services funding will come from the "Pesticide Project Fund" and $15 of each label fee would go to the General Revenue Fund, thus there would be no effect on that Fund.
| FISCAL IMPACT - State Government | FY 2003
(10 Mo.) |
FY 2004 | FY 2005 |
| PESTICIDE PROJECT FUND | |||
| Income - Department of Agriculture | |||
| Pesticide Registration Fees | $1,210,000 | $1,210,000 | $1,210,000 |
| Costs - Department o f Agriculture | |||
| Personal Service Costs (2 FTE) | ($60,034) | ($73,842) | ($75,688) |
| Fringe Benefits | ($21,618) | ($26,591) | ($27,255) |
| Equipment and Expense | ($17,002) | $0 | $0 |
| Total Costs - Department of Agriculture | ($98,654) | ($100,433) | ($102,943) |
| NET ESTIMATED EFFECT ON | |||
| PESTICIDE PROJECT FUND | $1,111,346 | $1,109,567 | $1,107,057 |
| FISCAL IMPACT - Local Government | FY 2003
(10 Mo.) |
FY 2004 | FY 2005 |
| $0 | $0 | $0 |
FISCAL IMPACT - Small Business
Small businesses that would register a pesticide would be affected by this proposal.
DESCRIPTION
Currently, anyone who sells or commercially transports pesticides pays an annual $15 registration fee for each product to the General Revenue Fund. This proposal would increase the annual fee to $125. The increased fee would take effect in calendar 2003. Revenue would be split between the Pesticide Project and General Revenue Funds ($15 to General Revenue and the balance to the Pesticide Project Fund). The maximum balance in the Pesticide Project Fund would be $5 million. Excess funds would revert to general revenue.
The Pesticide Project Fund would be administered by the Plant Industries Division of the Department of Agriculture. Up to 20% of the fund could be used for administration. Beginning July 1, 2003, 80% of the fund could be used for designated projects, including specified department programs.
Allocation of project funds would require an executed memorandum of understanding between the department and the applicant. Before each fiscal year, applicants would submit proposals to the department by March 31. Successful applicants would submit a project report within 30 days after the end of the fiscal year. Project revenue that is not spent or obligated would revert to the fund 60 days after the project is completed. The department could require applicants that do not complete their projects as intended to make partial or full repayments.
The proposal would also allow the department to deny, cancel, suspend, or revoke the registration of a pesticide if the product is found to be harmful to humans or the environment.
This legislation is not federally mandated, would not duplicate any other program and would not require additional capital improvements or rental space. This legislation would affect Total State Revenue.
SOURCES OF INFORMATION
Department of Agriculture
Office of State Treasurer
Mickey Wilson, CPA
Acting Director
February 27, 2002