FISCAL NOTE
Date Requested: January 21, 2019
Time Requested: 01:31 PM |
| Agency: |
Treasurer's Office, WV |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2307 |
Introduced |
HB2538 |
|
|---|
| CBD Subject: |
Banking and Finance |
|---|
|
FUND(S):
Special Revenue
Sources of Revenue:
Special Fund
Legislation creates:
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
Summarize in a clear and concise manner what impact this measure will have on costs and revenues of state government.
The purpose of this bill is to provide banking services for operations under the West Virginia Medical Cannabis Act.
The State Treasurer’s Office examined the various banking services we expect would be required for the collection and payment of funds under the Act, the current pricing for those services, and estimates of the cost of the additional risks to the financial institution. We estimate the direct banking costs will be at least $250,000 per year and personnel costs of $60,000 per year. The services covered by these estimates were already contemplated in the Act, and are not considered new, just quantified.
While the bill authorizes the Treasurer to charge fees for providing the banking services, a review of the fiscal note authored by the Bureau for Public Health in the emergency rules for the Medical Cannabis Program, e.g., General Rules, 64 CSR 109, does not indicate there was an expectation of banking expenses of $310,000 annually. The fiscal note indicates that upon full implementation the Office of Medical Cannabis will only receive $342,375.00 in revenue each year.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2019
Increase/Decrease
(use"-") |
2020
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
310,000 |
310,000 |
310,000 |
| Personal Services |
60,000 |
60,000 |
60,000 |
| Current Expenses |
250,000 |
250,000 |
250,000 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
0 |
0 |
Explanation of above estimates (including long-range effect):
Please explain increases and decreases in personal services, current expenses, repairs and alterations, assets, other costs and revenues, including assumptions and data sources and delineation between start-up and ongoing costs. Please also include a long-range schedule of costs and revenues if fiscal impact is expected to vary in future years.
As indicated above, the State Treasurer’s Office examined the various banking services we expect would be required for the collection and payment of funds under the Medical Cannabis Act, the current pricing for those services, and estimates of the cost of the additional risks to the financial institution. We anticipate the expenses will be about the same each year.
Memorandum
Please identify any areas of vagueness, technical defects, reasons a bill would not have a fiscal impact, and/or any special issues not captured elsewhere on this form.
These have been discussed with House counsel.
Person submitting Fiscal Note: Diana Stout
Email Address: diana.stout@wvsto.com