FISCAL NOTE

Date Requested: February 24, 2021
Time Requested: 08:56 AM
Agency: Health and Human Resources, WV Department of
CBD Number: Version: Bill Number: Resolution Number:
2191 Introduced HB2714
CBD Subject:


FUND(S):

5111 - RYAN BROWN ADDICTION PREVENTION AND RECOVERY FUND

Sources of Revenue:

Special Fund

Legislation creates:

Creates New Program



Fiscal Note Summary


Effect this measure will have on costs and revenues of state government.


The purpose of this bill is to create a 10 cent tax on each opium and opiate Schedule II drug sold to pharmacies in this state to fund drug treatment programs through the Ryan Brown Addiction Prevention and Recovery Fund. This bill would impose an excise tax of ten cents on each pill purchased by or for any licensed pharmacy in West Virginia for all opium and opiate drugs and their derivatives and substances included as Schedule II drugs under W. Va. Code ยง60A-2-206. The tax is imposed on the pharmaceutical manufacturer or distributor, and the pharmacies are to collect and remit the tax to the Tax Commissioner. The revenue collected from this bill would be deposited to the Ryan Brown Addiction Prevention and Recovery Fund. Based on fiscal note submitted by the West Virginia Tax Commissioner the projected total revenue increase from the ten-cent tax per dosage would be roughly $7.4 million in the first full year of enactment. It is expected that the Department attempt to award out all funds deposited into the Ryan Brown Addiction Prevention and Recovery Fund through grant agreements to community based providers of treatment and recovery services.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2021
Increase/Decrease
(use"-")
2022
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 7,400,000 7,400,000
Personal Services 0 0 0
Current Expenses 0 7,400,000 7,400,000
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 0 0
2. Estimated Total Revenues 0 7,400,000 7,400,000


Explanation of above estimates (including long-range effect):






Memorandum


In their fiscal note, the Tax Commissioner identified several areas of concern related where the bill may be vague or where additional clarification may be warranted and the Department shares those concerns. To the extent practicable, it would be the intent of the Department to implement and comply with the bill as drafted and passed.



    Person submitting Fiscal Note: Bill J. Crouch
    Email Address: Bill.J.Crouch@wv.gov