Michigan House Bill HB5977

Michigan 2023-2024 Regular Session

• Introduced: 9/26/24
• Refer: 9/26/24

Caption

Agriculture: industrial hemp; administration of industrial hemp program; modify. Amends sec. 107 of 2020 PA 220 (MCL 333.29107) & repeals secs. 101, 103, 105, 201, 211, 213, 215, 217, 301, 303, 305, 307, 309, 311, 313, 401, 403, 405, 407, 409, 501, 503, 505, 507, 509, 511, 513, 515, 601, 603, 605, 607, 609 & 801 of 2020 PA 220 (MCL 333.29101 et seq.).

Impact

One significant aspect of HB 5977 is the scheduled abolition of the industrial hemp fund on February 1, 2025. At that point, any unencumbered balance in the fund will be transferred to the agriculture licensing and inspection fees fund, raising questions about the future of the state's hemp program beyond that date. This could potentially impact hemp growers who rely on the fund for financial support and program enforcement.

Summary

House Bill 5977 proposes amendments to the Industrial Hemp Growers Act of 2020 PA 220, primarily focusing on the administration of the industrial hemp fund created within the state treasury. The bill allows the state treasurer to accept fees and other contributions to this fund, intending to support the establishment, operation, and enforcement of the hemp program. Importantly, the bill also mandates that any remaining balance in the fund at the end of the fiscal year will not lapse but will be retained within the fund for future appropriations.

Contention

While the bill seeks to streamline and reinforce funding for industrial hemp initiatives, it may face scrutiny concerning financial sustainability beyond 2025. Stakeholders, including hemp growers and agricultural advocates, may express concerns about the lack of provisions for the future operational funding of hemp programs, highlighting the need for a more permanent funding solution to support the ongoing regulation and promotion of industrial hemp in Michigan.