Division of the Budget
Landon State Office Building Phone: (785) 296-2436
900 SW Jackson Street, Room 504 adam.c.proffitt@ks.gov
Topeka, KS 66612 Division of the Budget http://budget.kansas.gov
Adam Proffitt, Director Laura Kelly, Governor


February 13, 2023


The Honorable Ken Rahjes, Chairperson
House Committee on Agriculture and Natural Resources
300 SW 10th Avenue, Room 112-N
Topeka, Kansas 66612
Dear Representative Rahjes:
SUBJECT: Fiscal Note for HB 2168 by Representatives Blew and K. Williams
In accordance with KSA 75-3715a, the following fiscal note concerning HB 2168 is
respectfully submitted to your committee.
HB 2168 would allow the fiber, grain, and seeds of industrial hemp to be used as food for
livestock, poultry, and pets. The bill would authorize the Secretary of Agriculture to utilize
performance-based sampling when conducting inspections of industrial hemp. The bill would also
relax a number of regulations relating to industrial hemp, including reducing the license and
registration fee, extending the license and registration period, and exempting certain providers
from fingerprinting and background check requirements.
Estimated State Fiscal Effect
FY 2023 FY 2023 FY 2024 FY 2024
SGF All Funds SGF All Funds
Revenue -- -- -- $600
Expenditure -- -- -- $366,837
FTE Pos. -- -- -- 4.50
The Kansas Department of Agriculture indicates that enactment of HB 2168 would
necessitate the hiring of 4.50 FTE positions and result in $367,837 of additional fee fund
expenditures in FY 2024 and all subsequent fiscal years. This estimate includes $270,433 for 4.50
new FTE positions in the agency’s Feed Safety Program to register and review 3,750 new hemp
products, $86,250 to administer 288 additional Tetrahydrocannabinol tests at a cost of $300 per
sample, and $11,154 for administration and overhead expenses. The agency estimates that the bill
The Honorable Ken Rahjes, Chairperson
Page 2—HB 2168

would generate $2,100 of new fee revenue. While HB 2168 would significantly increase revenue
for the agency’s Feed Safety Program, the agency assumes that this would be offset by a nearly
equivalent decline in revenue for the Plant Protection Program which currently regulates hemp
products.
According to the Kansas Fire Marshal, enactment of HB 2168 would lead to a $1,000
reduction of agency expenditures and a $1,500 reduction of agency revenues in FY 2024 and all
subsequent fiscal years. These reductions would be attributable to fewer background checks and
fewer license renewals. The Kansas Bureau of Investigation indicates that enactment of HB 2168
would not have a fiscal effect on agency operations. Any fiscal effect associated with HB 2168 is
not reflected in The FY 2024 Governor’s Budget Report.


Sincerely,

Adam Proffitt
Director of the Budget

cc: Kellen Liebsch, Department of Agriculture
Paul Weisgerber, Kansas Bureau of Investigation
Jill McCarthy, Office of the State Fire Marshal


Statutes affected:
As introduced: 2-3901, 2-3906, 2-3907, 2-3908, 34-223