FISCAL NOTE

[First Reprint]

ASSEMBLY, No. 3732

STATE OF NEW JERSEY

217th LEGISLATURE

 

DATED: DECEMBER 14, 2017

 

 

SUMMARY

 

Synopsis:

Directs Dept. of Agriculture to authorize and advise food hubs.

Type of Impact:

Annual expenditure increase to the State General Fund.

Agencies Affected:

Department of Agriculture.

 

Executive Estimate

Fiscal Impact

Year 1 

Year 2 

Year 3 

 

State Expenditure Increase

$76,000

$79,000

$82,000

 

 

 

 

 

·         The Office of Legislative Services (OLS) concurs with the Executive estimate.

·         The Department of Agriculture (DOA) estimates that implementing this bill will require the hiring of an additional Agricultural Marketing Specialist.  The department projects that the full-year cost of filling that position will be $76,000 in the first year of implementation, $79,000 in the second year, and $82,000 in the third year.

 

 

BILL DESCRIPTION

 

      Assembly Bill No. 3732 (1R) 2016 directs the DOA to authorize the establishment of food hubs in the State and establish a program to assist and support farms and farmers seeking to belong to food hubs in their area of the State.

      The bill defines “food hub” as a business or organization that actively manages the aggregation, distribution, and marketing of source-identified food products primarily from local or regional producers to strengthen their ability to satisfy wholesale, retail, and institutional demand.

FISCAL ANALYSIS

 

EXECUTIVE BRANCH

 

      The DOA estimates that implementing this bill will require the hiring of an additional Agricultural Marketing Specialist.  The department projects that the full-year cost of filling that position will be $76,000 in the first year of implementation, $79,000 in the second year, and $82,000 in the third year.  The estimated totals include salary and fringe benefit expenditures.

 

OFFICE OF LEGISLATIVE SERVICES

 

      The OLS concurs with the Executive Branch estimate but notes that the bill does not prescribe a specific level or type of assistance the DOA is to provide to farms and farmers seeking to belong to food hubs in their area of the State.  Consequently, there is a wide range of types and levels of assistance that the DOA could provide with a corresponding wide range of possible costs that could be more or less than the amounts estimated by the DOA.

 

 

Section:

Environment, Agriculture, Energy and Natural Resources

Analyst:

Neha Mehta Patel

Associate Fiscal Analyst

Approved:

Frank W. Haines III

Legislative Budget and Finance Officer

 

 

This fiscal note has been prepared pursuant to P.L.1980, c.67 (C.52:13B-6 et seq.).