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: April 2, 2024 12:51 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 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.
Note: The Legislative Fiscal Office is awaiting a response from the Department of Health for impacts related to the
amendment adopted to this legislation on 3/27/24 to incorporate into this fiscal note. Should the information contained in
the agency’s response materially change the analysis, this fiscal note will be updated to reflect the new information.
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 any products containing 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. The revenue collections from hemp
products include the 3% excise tax which is deposited into the Early Childhood Education Fund. Additionally, sales tax
collections on these products from both the state (4.45%) and local (5.1% average) could be impacted as shown in the table
above. 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.
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.
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
13.5.2 >= $500,000 Annual Tax or Fee 6.8(G) >= $500,000 Tax or Fee Increase
Change {S & H} or a Net Fee Decrease {S} Deputy Fiscal Officer


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)