LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: SB 237 SLS 24RS 469
Bill Text Version: ENGROSSED
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.: REVISED
Date: May 15, 2024 1:42 PM Author: PRESSLY
Dept./Agy.: Department of Agriculture and Forestry/ Alcohol and Tobacco
Subject: Control
Industrial Hemp Analyst: Richie Anderson
AGRICULTURAL COMMODITIES EG SEE FISC NOTE RV See Note Page 1 of 1
Provides relative to industrial hemp. (8/1/24)
Present law requires the commissioner of Agriculture and Forestry to submit an annual report to the house and senate
committees on agriculture regarding the state’s industrial hemp program. Proposed law seeks to extend this four year
requirement that expires in 2024 to 2028. In addition, proposed law will require the annual report to incorporate information
on the quantity and dollar amount of hemp sold from growers to processors. This annual report should also estimate the
value of the industrial hemp industry in the state and in each parish. Proposed law would define hemp as an agricultural
commodity only to be used for industrial uses such as home and building construction projects. Additionally, proposed law
eliminates the production and sale of recreational adult-use intoxicating substances derived from hemp. Proposed law will
require hemp products to clearly state that it does not contain any THC per serving, while present law allows up to .5
milligrams per serving.
EXPENDITURES 2024-25 2025-26 2026-27 2027-28 2028-29 5 -YEAR TOTAL
State Gen. Fd. $0 $0 $0 $0 $0 $0
Agy. Self-Gen. $0 $0 $0 $0 $0 $0
Ded./Other $0 $0 $0 $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total $0 $0 $0 $0 $0 $0
REVENUES 2024-25 2025-26 2026-27 2027-28 2028-29 5 -YEAR TOTAL
State Gen. Fd. SEE BELOW SEE BELOW SEE BELOW SEE BELOW SEE BELOW
Agy. Self-Gen. DECREASE DECREASE DECREASE DECREASE DECREASE
Ded./Other SEE BELOW SEE BELOW SEE BELOW SEE BELOW SEE BELOW
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds SEE BELOW SEE BELOW SEE BELOW SEE BELOW SEE BELOW
Annual Total
EXPENDITURE EXPLANATION
There is no anticipated direct material effect on governmental expenditures as a result of this measure. The Department of
Agriculture and Forestry (LDAF) and the Office of Alcohol and Tobacco Control (ATC) are able to accommodate the proposed
changes using existing resources and staff. The Office of State Police anticipates that expenditures will not be affected based
on the proposed law.
REVENUE EXPLANATION
Proposed law could potentially impact revenues to the SGF, Dedications, and Local collections resulting from changes in sales
of consumable hemp products as a result of the removal of all products containing any level of THC, however, it is difficult to
determine to what extent the proposed legislation could impact these revenues without knowing the amount of hemp
products sold solely for its THC content compared to those sold for other hemp derived properties. Total sales tax collections
on these products from both the state (4.45%) and local (5.1% average) could be impacted. In FY 23, collections for
consumable hemp products generated approximately $992,000 in excise tax collections, $1.5 M state sales tax collections,
and $1.7 M in local sales tax collections. Additionally, the revenue collections from hemp products include the 3% excise tax,
which is deposited into the Early Childhood Education Fund.
Proposed law redefines what is legal regarding the amount of THC per serving in consumable hemp, changing it from 0.5
milligrams of THC per serving to containing no THC per serving. ATC anticipates a potential SGR decrease if a majority of
retailers decide not to renew their licenses. To the extent businesses do renew their licenses to sell other hemp products not
affected by this legislation, the impacts to the agency could lessen.
Analyzing historical revenue collections associated with industrial hemp products, it is the opinion of the LFO that moving
consumable hemp products with THC into the market resulted in a significant increase in state and local revenues above
historical baseline collections, with state-only collections increasing $660,262 above the baseline in FY 21, $1.7 M above the
baseline in FY 23, and $2.1 M above the baseline in FY 24 (estimated by average monthly collection to date). This data
illustrates an increase in estimated collections above baseline sales of industrial hemp in FY 21. To the extent there is some
substitute demand for products that remain allowable under proposed law, revenues may not return to the baseline level but
are assumed to result in a significant decline in excess of $500,000 compared to current law.
Senate Dual Referral Rules House
13.5.1 >= $100,000 Annual Fiscal Cost {S & H} 6.8(F)(1) >= $100,000 SGF Fiscal Cost {H & S}
Patrice Thomas
x 13.5.2 >= $500,000 Annual Tax or Fee 6.8(G) >= $500,000 Tax or Fee Increase
Change {S & H} Deputy Fiscal Officer
or a Net Fee Decrease {S}


Statutes affected:
SB237 Original: 3:1464(9)
SB237 Engrossed: 3:1464(9), 3:1481(1), 3:1482(A), 3:1483(B)(6), 3:1482(E), 3:1483(D)