Fiscal Note & Local Impact Statement

124 th General Assembly of Ohio

Ohio Legislative Service Commission

77 South High Street, 9th Floor, Columbus, OH 43215-6136 ˛ Phone: (614) 466-3615

˛ Internet Web Site: http://www.lsc.state.oh.us/

BILL:

Am. H.B. 455

DATE:

March 20, 2002

STATUS:

As Passed by the Senate

SPONSOR:

Rep. Aslanides

LOCAL IMPACT STATEMENT REQUIRED:

No —

No local cost

 


CONTENTS:

To revise certain provisions of the law governing agricultural commodity marketing programs, and to authorize the Director of Agriculture to award grants for the purpose of promoting agriculture

 

State Fiscal Highlights

 

STATE FUND

FY 2002

FY 2003

FUTURE YEARS

General Revenue Fund

     Revenues

- 0 -

- 0 -

- 0 -

     Expenditures

Potential minimal effect

Potential minimal effect

Potential minimal effect

Agro Ohio Fund

     Revenues

Potential gain

Potential gain

Potential gain

     Expenditures

Potential increase

Potential increase

Potential increase

Note: The state fiscal year is July 1 through June 30. For example, FY 2002 is July 1, 2001 – June 30, 2002.

 

·        The Department of Agriculture must pay for the notification expenses in regards to the recommendation for continuation or termination of a marketing program.  Currently, the department must notify each producer of record, all parties appearing at the hearing, and other interested parties of the recommendation.  This bill would eliminate this requirement and require the director to give notice of the recommendation in the Register of Ohio.  Notice will be given to those people who request in writing to be notified.  The department may realize minimal savings since not every producer would need to be notified.  However, this will be dependent on the number of people who request in writing to be notified.

·        The Director of Agriculture must file a copy of any public notice with the Director of the Legislative Service Commission for the purpose of publishing the public notice in the register of Ohio.  This could result in minimal increases in expenditures for the Commission, as it will have to file these notices.

·        The Agro Ohio Fund may consist of federal funds, grants, or bequests made to the department.  These funds are to be used for the purpose of promoting agriculture.  There will be minimal costs associated with adopting rules dealing with the awarding of grants.  Also, the department will give award grant money to those eligible.  At this time, the department has not determined how many grants will be awarded.

Local Fiscal Highlights

 

·        No direct fiscal effect on political subdivisions.

 


 

 

Detailed Fiscal Analysis

 

Agricultural Commodity Marketing Programs

 

This bill revises certain provisions of the law governing agricultural commodity marketing programs.  Producers initiate and administer marketing programs.  There are currently eight marketing programs.  These are the:  Apple Marketing Program; Beef Council; Chicken Council; Corn Marketing Program; Egg Marketing Program; Sheep and Wool Marketing Program; Turkey Marketing Program; and Vegetable and Small Fruit Research and Development Program.  No new agricultural marketing programs are expected.

 

According to a Department of Agriculture spokesperson, six out of the eight programs have direct deposit for funds collected through assessments.  The money goes into an account separate from the Department of Agriculture.  The department receives monthly, unaudited statements and a yearly audited statement as a means of monitoring the funds.  The Apple Marketing Program and the Vegetable and Small Fruit Research and Development Program’s funds are deposited into Fund 494, Agricultural Commodity Marketing Program, and then immediately given back to the respective marketing programs.  Expenses for the programs are paid for with these funds.

 

The bill makes a few changes to current law.  The first change is a change in the minimum number of operating committee members from five to three.  Also, the requirement that operating committees shall consist of an odd number of members is eliminated.  This provision will not have a fiscal impact on the department.  Reducing the number of committee members is an option, not a requirement.  Also, any travel expenses of members are paid by the marketing program, not the department.

 

The second change to current law is the extension of the refund deadline operating committees must make from 30 days to 60 days.  This will have no fiscal effect on the department.  Refunds come from the marketing program.  The 60-day window will give committees more time to move through the refund procedure.

 

The third change is the revision of the public notice that the Director of Agriculture must give regarding the continuation or termination of a marketing program.  Currently, the director must give notice to each producer of record, all parties appearing at the hearing, and other interested parties.  This bill removes that requirement and instead requires that the director give notice of his recommendation by publication in the Register of Ohio.  The director must also provide notice to any person who has requested in writing to be notified.    The department may realize very minimal savings depending on the number of people requesting notification.  Also, the Director of Agriculture must file a copy of the public notice with the Director of the Legislative Service Commission for purposes of publishing the public notice in the register of Ohio.  This could result in minimal increases in expenditures for the Commission.  The Director of Agriculture may give whatever other notice he or she deems reasonable to ensure that the notice is given to all persons affected by the program. 

 

The fourth change establishes uniform criteria for determining whether affected producers favor the director’s proposed termination of a marketing program.  Current law requires the Director to conduct a referendum to determine whether producers favor the proposed termination of a program.  The referendum is to take place no later than 45 days after a recommendation of termination.  If a program was established before April 10, 1985, the affected producers favor termination of the program if 51 percent or more of the voting producers vote in favor of termination.  The voting producers must represent 51 percent or more of the volume of the affected agricultural commodity that was produced in the preceding marketing year.  If a program was established after April 10, 1985, the affected producers favor termination of the program if a majority of the voting producers vote in favor of termination.  The bill eliminates the reference to programs established before April 10, 1985 and provides a uniform criteria for all programs.

 

Agricultural Grants

 

Under the bill, the Director of Agriculture is authorized to award grants for the purpose of promoting agriculture.  The Agro Ohio Fund is currently an inactive fund.  The department has federal moneys that will be placed into this fund.  Any grants, gifts, or bequests of money made will be placed into this fund.  There will be some minimal costs associated with adopting rules and looking over grant applications.  Also, the department will give out award money for the promotion of agriculture to those eligible.  At this time, the department does not have an estimate of how many grants will be awarded.

 

 

LSC fiscal staff:  Wendy Risner, Budget Analyst

 

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