State of Alaska
Fiscal Note
Bill Version: CSHB 156(RES)
2021 Legislative Session
Fiscal Note Number: 2
(H) Publish Date: 5/4/2021
Identifier: HB156-DNR-AGR-4-28-21 Department: Department of Natural Resources
Title: INDUSTRIAL HEMP Appropriation: Agriculture
PROGRAM;MANUFACTURING Allocation: Agricultural Development
Sponsor: HOPKINS OMB Component Number: 455
Requester: House Finance
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) 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
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If yes, by what date are the regulations to be adopted, amended or repealed? 10/31/21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 source to General Fund/Program Receipts (1005).
Prepared By: David W. Schade, MPA, Director Phone: (907)761-3867
Division: Agriculture Date: 04/02/2021 01:00 PM
Approved By: Cheri Lowenstein, Administrative Services Director Date:
OUT OF 04/28/21
Agency: Office of Mangement and Budget REPORTED
Printed 5/4/2021 Page 1 of 2 HFC 05/04/2 021
Control Code: SUuyC
 CSHB 156(RES) - Fiscal Note 2
1
FISCAL NOTE ANALYSIS
STATE OF ALASKA BILL NO. HB 156
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.
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
HB156-DNR-AGR-4-28-21 Page 2 of 2 Control Code: SUuyC


Statutes affected:
HB0156A, AM HB 156, introduced 03/29/2021: 03.05.010, 03.05.076, 03.20.130, 03.05.079, 11.71.040, 11.71.060, 03.05.100, 03.05.077
HB0156B, AM CSHB 156(RES), introduced 04/14/2021: 03.05.010, 03.05.076, 03.20.130, 03.05.079, 11.71.040, 11.71.060, 03.05.100, 03.05.077