OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

http://www.cga.ct.gov/ofa

SB-603

AN ACT CONCERNING THE STATE'S INDUSTRIAL HEMP INDUSTRY.


OFA Fiscal Note

State Impact:

Agency Affected

Fund-Effect

FY 18 $

FY 19 $

Department of Agriculture

GF - Cost

68,250

136,500

State Comptroller - Fringe Benefits1

GF - Cost

25,990

51,979

Note: GF=General Fund

Municipal Impact: None

Explanation

The bill requires the Department of Agriculture (DoAg) to adopt regulations establishing a pilot program for growing industrial hemp. This new pilot program must study the growth, cultivation, and marketing of industrial hemp.

This would result in costs to DoAg of $68,250 in FY 18 and $136,500 in FY 19 (plus fringe benefits of $25,990 in FY 18 and $51,979 in FY 19) for DoAg to hire two positions, as DoAg does not currently have expertise in this area.2

The Out Years

The annualized ongoing fiscal impact identified above would continue into the future subject to inflation.

1 The fringe benefit costs for most state employees are budgeted centrally in accounts administered by the Comptroller. The estimated active employee fringe benefit cost associated with most personnel changes is 38.08% of payroll in FY 18 and FY 19.

2 assumes a December 1, 2017 start date for one Staff Attorney and an Agricultural Marketing and Inspection Representative I