FISCAL NOTE
Date Requested: February 03, 2023
Time Requested: 01:44 PM |
| Agency: |
Public Health, Bureau for |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 3311 |
Introduced |
HB3216 |
|
|---|
| CBD Subject: |
Health |
|---|
|
FUND(S):
5420 - MEDICAL CANNABIS PROGRAM FUND
Sources of Revenue:
Special Fund
Legislation creates:
Decreases Existing Revenue
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The purpose of this bill is to include emergency medical services and the safe school fund in the programs that receive a portion of proceeds from the tax on medical cannabis and the medical cannabis fund.
This legislation establishes The Medical Cannabis Program Fund as a special fund in the State Treasury and defines the specific purposes for which these funds may be allocated.
This legislation decreases the percentage of collected revenue directed to the Department's Office of Medical Cannabis (OMC) from fifty-five percent to forty percent.
The result of this legislation would be a decrease of $81,401 in revenue to the OMC based on 2022 collections.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2023
Increase/Decrease
(use"-") |
2024
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
-81,401 |
-81,401 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
-81,401 |
-81,401 |
| Other |
0 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
0 |
0 |
Explanation of above estimates (including long-range effect):
Tax collected on Medical Cannabis in FY2022 totaled $542,675. The Department received $298,471, or fifty-five percent, directed to the Office of Medical Cannabis.
Assuming similar collections apportioned at forty percent, the Department would anticipate retaining $217,070 of the collections.
Memorandum
This bill is very problematic due to the ongoing inability to expend Medical Cannabis generated funds. Adding additional recipients of this funding may complicate accounting processes while there is still no ability to expend the funding.
§16A-9-2 (c) removes the language to transfer to the Division of Justice and Community Services. It retains the language indicating the funds should be allocated for grants to local law-enforcement agencies for training, drug diversion, and other programs, however add language that funds should be allocated to emergency medical services and the Safe School Fund. The section does not indicate where the funds shall be transferred. This presents the question as to whether the intent was for DHHR to award these grants for these purposes. It is unclear if these funds will remain within the Departments Medical Cannabis fund (5420) along with the 40% to be retained by the Bureau and distributed from that fund. It is also unclear since these activities and the Safe School Fund are under different Departments, how the allocation of the 24% (40% of 60%) shall be allocated between these programs.
The bill references the Safe School Fund created by §18-4-48, however this code section does not appear to exist. This appears to be a typo and should reference §18-5-48.
Person submitting Fiscal Note: Jeffrey H. Coben
Email Address: dhhrsecretary@wv.gov