Fiscal Note - SB 0079 - Industrial Hemp Production Act
L.R. NO. 0318-06
BILL NO. HCS for SCS for SB 79
SUBJECT: Agriculture and Animals: Drugs and Controlled Substances
TYPE: Original
DATE: May 6, 1997
FISCAL SUMMARY
ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
None $0 $0 $0
Total Estimated
Net Effect on All
State Funds $0 $0
ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
None $0 $0 $0
Total Estimated
Net Effect on All
Federal Funds $0 $0 $0
ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
Local Government $0 $0 $0
FISCAL ANALYSIS
ASSUMPTION
Officials from the Department of Agriculture (AGR) assume the number of
growers that would be involved in this project is unknown. AGR officials
estimate it would require 520 hours for licensing and inspecting records and
growing areas. To accomplish this, they have requested a Program Coordinator
(.25 FTE at $36,795 per year) to inspect growing areas across the state for
correct acreage, location and determine the plants are in fact industrial
hemp, develop and issue licenses to qualified growers and examine grower
records of all transactions concerning the sale of industrial hemp. In
addition, other costs would include estimated travel of 5,000 miles for
record and growing area inspections, as well as associated meal and motel
expenses. Other costs would include printing licenses, postage, etc.,
resulting in annual costs of approximately $15,000 to carry out the
additional responsibilities imposed by this proposal.
Oversight assumes the administrative costs associated with this proposal
could be accomplished with existing staff in AGR; however, some costs for
overtime may be incurred. If the number of industrial hemp producers
increases appreciably, then AGR could request additional resources through
the budget process.
Officials from the Department of Public Safety - Missouri State Highway
Patrol (MHP) assume implementation of the proposal would require MHP to
create a new unit within the Division of Drug and Crime Control to monitor
and enforce regulations related to the manufacture of cannabis. This unit
would require a minimum of ten uniformed officers and two civilian clerical
employees. One of the uniformed officers would be assigned to supervise the
unit, while the remaining nine officers would be assigned to monitor the
production, enforce all laws and regulations related to cannabis production,
and investigate all criminal activity arising from its production. The
civilian personnel would be utilized to handle paperwork created by the
uniformed investigators. In addition, DPS has requested associated expense
and equipment, including ten vehicles, for annual costs in excess of
$500,000.
However, Oversight assumes the proposal would not cause the need for the
creation of a new unit within DPS. Based on language in the proposal, DPS's
role would entail consulting and collaborating with the Director of AGR to
develop criteria for licensing and would include background and criminal
record checks, testing of hemp during growth for THC levels and development
of requirements for supervision of hemp during its growth and harvest. Even
though MHP would most likely conduct the background and criminal record
checks, the proposal would not require MHP to perform additional duties.
Also, since production is currently prohibited, this proposal should not
create additional duties for DPS, but could involve the re-alignment of
duties of current DPS staff. Oversight assumes the Division of Crime and
Drug Control could continue its current enforcement efforts with regard to
hemp production. Accordingly, such costs related to additional FTEs for MHP
are not included in the fiscal impact specifications below.
Officials from University of Missouri, Southwest MO State University and
Truman State University assume the proposal would have no fiscal impact on
their universities.
In a similar previous proposal, officials from the Coordinating Board for
Higher Education (CBH) and the Office of State Courts Administrator (CTS)
assumed the proposed legislation would have no fiscal impact on their
agencies.
Officials from Northwest MO State University, Southeast MO State University
and Central MO State University did not respond to our fiscal impact request.
FISCAL IMPACT - State Government FY 1998 FY 1999 FY 2000
(10 Mo.)
$0 $0 $0
FISCAL IMPACT - Local Government FY 1998 FY 1999 FY 2000
(10 Mo.)
$0 $0 $0
FISCAL IMPACT - Small Business
Certain small businesses could be expected to be fiscally impacted as a
result of this proposal.
DESCRIPTION
The proposed legislation would authorize the director of the Department of
Agriculture (AGR) to license any person or entity engaged in growing and
maintenance of industrial hemp, manufacture of products containing industrial
hemp and regeneration of seed for the growth of industrial hemp. Unless
allowed by concurrent resolution of the General Assembly, only persons or
entities engaged in research at a University of Missouri agriculture
experiment station and other state-supported institutions of higher
institution engaged in alternative crop research would be eligible for
licensure.
The director of AGR, in cooperation with Department of Public Safety and the
United States Drug Enforcement Administration, is to develop procedures and
criteria for issuing licenses to grow industrial hemp, including background
checks of growers, registration of industrial hemp growing sites, testing of
industrial hemp during growth for THC levels, certification of transportation
and final destination of raw hemp and requirements for supervision of
industrial hemp during growth and harvest. No person convicted of a felony
or drug-related misdemeanor could be licensed.
The director of AGR would be required to submit annually to the General
Assembly the results of research on the economic viability of industrial hemp
and an analysis of other industrial hemp program operations.
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
Department of Public Safety - Missouri State Highway Patrol
Coordinating Board for Higher Education
Office of State Courts Administrator
University of Missouri
Southwest MO State University
Truman State University
NOT RESPONDING: Northwest MO State University, Southeast MO State University,
Central MO State University
This Fiscal Note is not an official copy and should not be quoted or cited.