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HB 5094

Industrial Hemp: administration; administration of industrial hemp program; modify. Amends sec. 107 of 2020 PA 220 (MCL 333.29107).

2025-2026 Regular Session Introduced by Timmy Beson and 1 co-sponsor

Abolishes the Industrial Hemp Fund on Oct 1, 2026; remaining balance transfers to the Agriculture Licensing and Inspection Fees Fund.

bill electronically reproduced 10/07/2025
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Bill Summary · HB 5094

Summary — HB 5094 (2025): Industrial Hemp Fund — modification and scheduled abolition

  • Bill number: HB 5094
  • Title: Industrial Hemp: administration; administration of industrial hemp program; modify (amends sec. 107 of 2020 PA 220 — MCL 333.29107)
  • Introduced: March 13, 2025 (latest electronic reproduction/intro: Oct 7, 2025 by Rep. Donavan McKinney)
  • Effective date (if enacted): February 1, 2026
  • Current status (per provided actions): Read/referred in 2025; referred to Committee on Regulatory Reform (Oct. 7, 2025)

Purpose / Intent

The bill revises the statutory provisions governing the Industrial Hemp Fund created under the Industrial Hemp Growers Act (2020 PA 220). Its principal change is to provide for the fund’s abolition on a set date and to specify the disposition of any remaining balance.

Key provisions

  • Confirms creation of the industrial hemp fund within the state treasury (existing provision).
  • Authorizes the state treasurer to receive fees collected under section 511 (of the act) and other money/assets for deposit into the fund, and to credit interest and earnings from fund investments.
  • States that fund balances do not lapse to the general fund at fiscal year close (money remains in the fund).
  • Designates the department (administrator of the act) as the fund administrator for auditing purposes.
  • Directs the department to expend fund money to establish, operate, and enforce the industrial hemp program.
  • Adds a termination clause: on October 1, 2026, the industrial hemp fund is abolished. Any unencumbered balance remaining on that date must be transferred to the "agriculture licensing and inspection fees fund" (created by section 9 of the Insect Pest and Plant Disease Act, 1931 PA 189; MCL 286.209).

Who is affected

  • State financial administration: state treasurer and the receiving treasury accounts.
  • Department charged with administering the industrial hemp program (for auditing and expenditures).
  • Industrial hemp growers and program participants indirectly — the funding mechanism for program operations is altered.
  • Stakeholders tracking fee revenues and fund balances (legislators, budget staff, auditors).

Practical impact / considerations

  • The bill does not change fee amounts or program operational duties directly; it changes the fund’s lifespan and final disposition of balances.
  • Abolition less than a year after the bill’s effective date (fund abolished Oct. 1, 2026; effective Feb. 1, 2026) could shift ongoing program financing into a broader agricultural licensing fund, affecting transparency and tracking of hemp-specific fees.
  • The transfer to the agriculture licensing and inspection fees fund centralizes residual resources, which may affect budgeting, auditing, and program priority-setting within broader agricultural programs.

Statutory reference

  • Amends section 107 of 2020 PA 220 (MCL 333.29107).

Compiled from official sources — confirm details with the bill’s official record.

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