LEGISLATIVE SERVICES AGENCY OFFICE OF FISCAL AND MANAGEMENT ANALYSIS 200 W. Washington St., Suite 301 Indianapolis, IN 46204 (317) 233-0696 iga.in.gov FISCAL IMPACT STATEMENT LS 7034 NOTE PREPARED: Jan 11, 2024 BILL NUMBER: HB 1419 BILL AMENDED: SUBJECT: Use of Hemp Products in Animal Feed. FIRST AUTHOR: Rep. Baird BILL STATUS: As Introduced FIRST SPONSOR: FUNDS AFFECTED:XGENERAL IMPACT: State DEDICATED FEDERAL Summary of Legislation: The bill provides, for purposes of the Commercial Feed Law, that the definition of "commercial feed" includes hemp or a substance derived from hemp added for use as feed or for mixing in feed for a pet, specialty pet, horse, or animal that will not be sold for human consumption. It defines "hemp" for purposes of the Commercial Feed Law. Effective Date: July 1, 2024. Explanation of State Expenditures: The bill could increase the workload and expenditures of the Office of the Indiana State Chemist (OISC). The bill allows hemp or a derived substance to be added to pet food (for cats and dogs), specialty pet food (for gerbils, hamsters, birds, fish, snakes, and turtles), food for horses, or food for animals not sold for human consumption. This provision would increase expenditures for regulatory administration fees (label reviews and product registration), laboratory costs (analysis of feed to ensure no more than 0.3% THC), and field staff time (verifying acceptable products). The OISC is housed within Purdue University. State educational institutions receive state funding through General Fund appropriations. Explanation of State Revenues: The bill could increase revenues to the OISC for feed inspections on pet food, specialty pet food, food for horses, and food for animals not sold for human consumption. Fees collected are paid to Purdue University and expended on administrative expenses for employment of inspectors and chemists, expenses of feed inspections, and agricultural programs at Purdue University. Explanation of Local Expenditures: HB 1419 1 Explanation of Local Revenues: State Agencies Affected: Office of the Indiana State Chemist; Purdue University. Local Agencies Affected: Information Sources: Office of the Indiana State Chemist; https://oisc.purdue.edu/feed/pdf/form_f1_2023.pdf; https://oisc.purdue.edu/feed/pdf/Form_F-3_2022.pdf; https://oisc.purdue.edu/feed/pdf/form_f6.pdf; https://www.aafco.org/news/hemp-as-a-feed-ingredient-a-national-discussion/. Fiscal Analyst: Heather Puletz, 317-234-9484. HB 1419 2