This Fiscal Note is not an official copy and should not be quoted or cited.
This Fiscal Note is not an official copy and should not be quoted or cited.
Fiscal Note - SB 0361 - Limits the ability of soil and water districts to sell merchandise
COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. NO.: 1469-02
BILL NO.: SB 361
SUBJECT: Soil and Water Districts
TYPE: Original
DATE: February 8, 1999
FISCAL SUMMARY
|
ESTIMATED NET EFFECT ON STATE FUNDS | |||
| FUND AFFECTED | FY 2000 | FY 2001 | FY 2002 |
| Soils Sales Tax Fund | ($8,500) | ($2,500) | ($2,500) |
| Total Estimated
Net Effect on All State Funds |
($8,500) | ($2,500) | ($2,500) |
|
ESTIMATED NET EFFECT ON FEDERAL FUNDS | |||
| FUND AFFECTED | FY 2000 | FY 2001 | FY 2002 |
| None | $0 | $0 | $0 |
| Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
|
ESTIMATED NET EFFECT ON LOCAL FUNDS | |||
| FUND AFFECTED | FY 2000 | FY 2001 | FY 2002 |
| Local Government | (Unknown) | (Unknown) | (Unknown) |
Numbers within parentheses: ( ) indicate costs or losses
This fiscal note contains 3 pages.
FISCAL ANALYSIS
ASSUMPTION
The Department of Natural Resources (DNR) assumes the proposed legislation requires the soil and water commission to publish in a paper of general circulation the soil and water district's request to market, buy and sell products used in soil and water conservation work.
Notices of election for district board members are run for two days according to rule. Since the legislation does not state how many times the notice is to be published, the department assumes the notification would also need run for two days. The department assumes the average cost per advertisement is $125 each time it is published.
Currently, there are 35 districts that sell some type of farm product for soil conservation work. The department assumes that there would be an additional 10 districts added each year that would request approval from the commission to market, buy and sell products.
The DNR also assumes there may be an unknown loss of income to some Soil and Water Conservation Districts that currently sell items that may not be approved if this proposal passes.
| FISCAL IMPACT - State Government | FY 2000 | FY 2001 | FY 2002 |
| (10 Mo.) | |||
| SOILS SALES TAX FUND | |||
| Cost - DNR | |||
| public notices | ($8,500) | ($2,500) | ($2,500) |
| FISCAL IMPACT - Local Government | FY 2000 | FY 2001 | FY 2002 |
| (10 Mo.) | |||
| Soil and Water Conservation Districts | |||
| Loss | |||
| revenue from sales | (Unknown) | (Unknown) | (Unknown) |
| FISCAL IMPACT - Small Business | |||
| Small businesses that sell farm products may be impacted. | |||
DESCRIPTION
This act limits a soil and water district's power to compete in the marketplace for marketing and selling farm products. Currently, the district is allowed to sell items that are directly or indirectly related to soil and water conservation.
Pursuant to this act, a district can still sell products, but it must receive approval from the State Soil and Water Districts Commission. The approval depends on a finding that the products are: 1) reasonably related to soil and water conservation; and 2) not readily available in the area.
The request by the district to sell products must be published in a newspaper of general circulation in the district's area. The commission will consider written comments when making its determination.
Current inventory is allowed to be sold, but restocking is prohibited until the district receives Commission approval.
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 Natural Resources
Jeanne Jarrett, CPA
Director
February 8, 1999