State of Alaska
Fiscal Note
Bill Version: CSSB 27(RES)
2021 Legislative Session
Fiscal Note Number: 2
(S) Publish Date: 5/10/2021
Identifier: SB27-DNR-AG-05-09-21 Department: Department of Natural Resources
Title: INDUSTRIAL HEMP Appropriation: Agriculture
PROGRAM;MANUFACTURING Allocation: Agricultural Development
Sponsor: HUGHES OMB Component Number: 455
Requester: SFIN
Expenditures/Revenues
Note: Amounts do not include inflation unless otherwise noted below. (Thousands of Dollars)
Included in
FY2022 Governor's
Appropriation FY2022 Out-Year Cost Estimates
Requested Request
OPERATING EXPENDITURES FY 2022 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027
Personal Services 466.6 466.6 466.6 466.6 466.6 466.6
Travel 106.9 106.9 106.9 106.9 106.9 106.9
Services 84.1 84.1 84.1 84.1 84.1 84.1
Commodities 78.8 78.8 78.8 78.8 78.8 78.8
Capital Outlay
Grants & Benefits
Miscellaneous
Total Operating 736.4 0.0 736.4 736.4 736.4 736.4 736.4
Fund Source (Operating Only)
1005 GF/Prgm (DGF) 736.4 736.4 736.4 736.4 736.4 736.4
Total 736.4 0.0 736.4 736.4 736.4 736.4 736.4
Positions
Full-time 5.0 5.0 5.0 5.0 5.0 5.0
Part-time
Temporary
Change in Revenues
1005 GF/Prgm (DGF) 750.0 750.0 750.0 750.0 750.0 750.0
Total 750.0 0.0 750.0 750.0 750.0 750.0 750.0
Estimated SUPPLEMENTAL (FY2021) cost: 0.0 (separate supplemental appropriation required)
Estimated CAPITAL (FY2022) cost: 0.0 (separate capital appropriation required)
Does the bill create or modify a new fund or account? No
(Supplemental/Capital/New Fund - discuss reasons and fund source(s) in analysis section)
ASSOCIATED REGULATIONS
Does the bill direct, or will the bill result in, regulation changes adopted by your agency? Yes
If yes, by what date are the regulations to be adopted, amended or repealed? 10/31/21
Why this fiscal note differs from previous version/comments:
Corrected revenue fund code to general funds/program receipts (1005).
Prepared By: David W. Schade, MPA, Director Phone: (907)761-3867
Division: Agriculture
REPORT Date: 05/09/2021 08:00 AM
ED
SFC 05/1 OUT OF
Approved By: Cheri Lowenstein, Administrative Services Director Date: 05/09/2021
Agency: Office of Mangement and Budget
0/2021
Printed 5/10/2021 Page 1 of 2 Control Code: GqdOh
 CSSB 27(RES) - Fiscal Note 2
FISCAL NOTE ANALYSIS
STATE OF ALASKA BILL NO. SB 27
2021 LEGISLATIVE SESSION
Analysis
This bill will build on the existing industrial hemp pilot program to create a permanent program in the Department of
Natural Resources Division of Agriculture. The Industrial Hemp (IH) Program regulates the growing, manufacturing and
sales of industrial hemp and industrial hemp product. Regulations are currently in affect that have established the
program, and all fees associated with participation in the program. AS 03.05.010 requires for the program be self-funded
by the fees it generates.
The IH Program has the potential to have participants in nearly every town and village across Alaska which will be a
significant workload for the division. It is projected that 2,000 to 3,000 applications to be processed and monitored on a
yearly basis. Currently there are two PCNs for the pilot program, one was hired in 2021 with additional staff report from
outside the program as funding receipts have been limited. These positions expire under federal law on October 31, 2021,
but do not expire under state law. Additional PCNs will allow the program to be fully operational.
Staff are required to have the knowledge and ability to sample and supervise crops all around the state including indoor
operations year-round. The lack of IH program enforcement has caused several participants to ignore the requirements of
registration now in place. Enforcement actions have now started, resulting in an increase of applications. The additional
staff will be for program management, enforcement, and inspections. The administrative assistant will provide
administrative support to the IH program, the natural resource manager, and its inspectors.
The revenue change reflects fees collected through program receipts from the industrial hemp program. Program
participation in grow operations and retail applications are expected increase significantly with an estimated increase
revenue of $750,000 annually.
The division projects will require an additional five positions to manage a successful industrial hemp program, as outlined
below:
Program Support:
PERSONAL SERVICES COST - $466.6 total annually
Natural Resource Manager I, Range 18 ($112.3)
Agricultural Inspector, Range 16 ($93.0) x 3 positions = ($279.0)
Administrative Assistant I, Range 12 ($75.3)
Total Personal Services Costs = $466.6
TRAVEL - $106.9 total
SERVICES - $84.1 total
COMMODITIES $78.8 total
(Revised 1/13/2021 OMB/LFD) Page 2 of 2
SB27-DNR-AG-05-09-21 Page 2 of 2 Control Code: GqdOh


Statutes affected:
SB0027A, AM SB 27, introduced 01/22/2021: 03.05.010, 03.05.076, 03.20.130, 03.05.079, 11.71.040, 11.71.060, 03.05.100, 03.05.077
SB0027B, AM CSSB 27(L&C), introduced 03/17/2021: 03.05.010, 03.05.076, 03.20.130, 03.05.079, 11.71.040, 11.71.060, 03.05.100, 03.05.077
SB0027C, AM CSSB 27(RES), introduced 04/09/2021, passed House 05/19/2021, passed Senate 05/10/2021: 03.05.010, 03.05.076, 03.20.130, 03.05.079, 11.71.040, 11.71.060, 03.05.100, 03.05.077
SB0027Z, AM Enrolled SB 27, introduced 05/19/2021: 03.05.010, 03.05.076, 03.20.130, 03.05.079, 11.71.040, 11.71.060, 03.05.100, 03.05.077
SB0027C, AM CSSB 27(RES), introduced 04/09/2021: 03.05.010, 03.05.076, 03.20.130, 03.05.079, 11.71.040, 11.71.060, 03.05.100, 03.05.077