LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION March 17, 2025 TO: Honorable Ryan Guillen, Chair, House Committee on Agriculture & Livestock FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB1113 by Cain (Relating to the production and regulation of hemp; providing an administrative penalty; requiring a permit to conduct certain research involving hemp; authorizing a fee; creating a criminal offense.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB1113, As Introduced: an impact of $0 through the biennium ending August 31, 2027. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill. General Revenue-Related Funds, Five- Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact toGeneral Revenue Related Funds2026$02027$02028$02029$02030$0All Funds, Five-Year Impact: Fiscal Year Probable Savings/(Cost) fromState Hemp Program5178 Probable Revenue Gain fromState Hemp Program5178 Change in Number of State Employees from FY 20232026($202,059)$202,0592.02027($189,515)$189,5152.02028($189,515)$189,5152.02029($189,515)$189,5152.02030($189,515)$189,5152.0 Fiscal AnalysisThe bill would amend the Agriculture Code to direct the Department of Agriculture (TDA) to issue a hemp research permit to institutions of higher education and non-profit research entity with a fee. The bill would exempt these institutions from having to obtain lot crop permits for hemp research and from having to conduct pre-harvest testing. The bill would allow these institutions to cultivate and handle varieties of hemp seed and plants that are not otherwise approved by the department; collect and research feral hemp; and conduct research involving hemp in conjunction with a license holder at a facility designated by the license holder for research use only. The bill would prohibit these institutions from selling or transferring hemp to another person unless the institution complies with certain requirements in the bill. The bill would require TDA to propose necessary rule changes within timelines established by the bill. The bill would impose penalties for persons who continue to cultivate, handle, or transport hemp without obtaining a license, to include a $500 administrative penalty on the first and second violations with the third and subsequent offenses being Class B misdemeanors. The bill would require that the penalties would be deposited to General Revenue-Dedicated State Hemp Program Fund No. 5178.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION
March 17, 2025
TO: Honorable Ryan Guillen, Chair, House Committee on Agriculture & Livestock FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB1113 by Cain (Relating to the production and regulation of hemp; providing an administrative penalty; requiring a permit to conduct certain research involving hemp; authorizing a fee; creating a criminal offense.), As Introduced
TO: Honorable Ryan Guillen, Chair, House Committee on Agriculture & Livestock
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: HB1113 by Cain (Relating to the production and regulation of hemp; providing an administrative penalty; requiring a permit to conduct certain research involving hemp; authorizing a fee; creating a criminal offense.), As Introduced
Honorable Ryan Guillen, Chair, House Committee on Agriculture & Livestock
Honorable Ryan Guillen, Chair, House Committee on Agriculture & Livestock
Jerry McGinty, Director, Legislative Budget Board
Jerry McGinty, Director, Legislative Budget Board
HB1113 by Cain (Relating to the production and regulation of hemp; providing an administrative penalty; requiring a permit to conduct certain research involving hemp; authorizing a fee; creating a criminal offense.), As Introduced
HB1113 by Cain (Relating to the production and regulation of hemp; providing an administrative penalty; requiring a permit to conduct certain research involving hemp; authorizing a fee; creating a criminal offense.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB1113, As Introduced: an impact of $0 through the biennium ending August 31, 2027. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
Estimated Two-year Net Impact to General Revenue Related Funds for HB1113, As Introduced: an impact of $0 through the biennium ending August 31, 2027. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
General Revenue-Related Funds, Five- Year Impact:
2026 $0
2027 $0
2028 $0
2029 $0
2030 $0
All Funds, Five-Year Impact:
2026 ($202,059) $202,059 2.0
2027 ($189,515) $189,515 2.0
2028 ($189,515) $189,515 2.0
2029 ($189,515) $189,515 2.0
2030 ($189,515) $189,515 2.0
Fiscal Analysis
The bill would amend the Agriculture Code to direct the Department of Agriculture (TDA) to issue a hemp research permit to institutions of higher education and non-profit research entity with a fee. The bill would exempt these institutions from having to obtain lot crop permits for hemp research and from having to conduct pre-harvest testing. The bill would allow these institutions to cultivate and handle varieties of hemp seed and plants that are not otherwise approved by the department; collect and research feral hemp; and conduct research involving hemp in conjunction with a license holder at a facility designated by the license holder for research use only. The bill would prohibit these institutions from selling or transferring hemp to another person unless the institution complies with certain requirements in the bill. The bill would require TDA to propose necessary rule changes within timelines established by the bill. The bill would impose penalties for persons who continue to cultivate, handle, or transport hemp without obtaining a license, to include a $500 administrative penalty on the first and second violations with the third and subsequent offenses being Class B misdemeanors. The bill would require that the penalties would be deposited to General Revenue-Dedicated State Hemp Program Fund No. 5178.
The bill would require TDA to propose necessary rule changes within timelines established by the bill.
The bill would impose penalties for persons who continue to cultivate, handle, or transport hemp without obtaining a license, to include a $500 administrative penalty on the first and second violations with the third and subsequent offenses being Class B misdemeanors. The bill would require that the penalties would be deposited to General Revenue-Dedicated State Hemp Program Fund No. 5178.
Methodology
For the purposes of this analysis, it is assumed that costs for implementing the provisions of the bill would be funded from General Revenue-Dedicated State Hemp Program Fund No. 5178 and that additional fees would need to be generated to cover these costs pursuant to the requirements of Agriculture Code, Sec. 122.052. Based on information provided by TDA, it is assumed that an additional two FTEs (Attorney II and Program Specialist II) each fiscal year would be needed to assist with handling complaints and violations. The estimated personnel cost (salary, benefits, and operating) for two FTEs is $202,059 in fiscal year 2026 and $189,515 in each subsequent years fiscal year. It is assumed that any impact on state correctional populations or on the demand for state correctional resources would not be significant.Based on information provided by the Comptroller of Public Accounts, this analysis assumes no significant fiscal impact to state revenues from the new administrative penalty and the creation of the new criminal offense. Based on information provided by the Office of Court Administration, it is assumed that the bill would not have a significant fiscal impact to the state court system.
Local Government Impact
The fiscal impact related to local court costs cannot be determined because the amounts and timing of any fees associated with the new misdemeanor is unknown.It is assumed that any fiscal impact to units of local government associated with enforcement, prosecution, supervision, or confinement would not be significant.
Source Agencies: b > td > 212 Office of Court Administration, Texas Judicial Council, 304 Comptroller of Public Accounts, 537 State Health Services, Department of, 551 Department of Agriculture
212 Office of Court Administration, Texas Judicial Council, 304 Comptroller of Public Accounts, 537 State Health Services, Department of, 551 Department of Agriculture
LBB Staff: b > td > JMc, TUf, MW, RSTE
JMc, TUf, MW, RSTE