FISCAL NOTE
Date Requested: January 11, 2024
Time Requested: 09:39 PM |
| Agency: |
Public Health, Bureau for |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1137 |
Introduced |
HB4391 |
|
|---|
| CBD Subject: |
Education (K12) |
|---|
|
FUND(S):
5420 - MEDICAL CANNABIS PROGRAM FUND, M506 - FIGHT SUBSTANCE ABUSE FUND
Sources of Revenue:
Special Fund
Legislation creates:
Creates New Fund:
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 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 revenue to the OMC by $172,111 based on 2023 collections. Alternatively, revenue to the Fight Substance Abuse Fund within the Department of Health would increase by $86,055 based on 2023 collection for a net decrease of $86,056.
The bill also provides for a portion of the allocation to be transferred to Emergency Medical Services as defined in §16-4C-3. There are two funds established for Emergency Medical Services within §16-4C, but neither within §16-4C-3. Additional clarification is needed to reference which Emergency Medical Services fund to be utilized, as well as specify which portion will be allocated to Emergency Medical Services, versus Safe School Fund, in order to determine any additional revenue to the Department of Health.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2024
Increase/Decrease
(use"-") |
2025
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
0 |
0 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
-86,056 |
-86,056 |
Explanation of above estimates (including long-range effect):
Revenue collected on Medical Cannabis in FY2023 totaled $1,147,407. The Department received $631,074, or fifty-five percent, directed to the Office of Medical Cannabis. Additionally, the Department received $258,167 (22.5% or (45% x 50%)) for the Fight Substance Abuse Fund.
Assuming similar collections apportioned at forty percent, the Department would anticipate retaining $458,963 of the collections within Medical Cannabis, and $344,222 in Fight Substance Abuse (30% or (60% x 50%).
Net reduction in revenue for the Department of Health would be ($631,074 + 258,167 = $889,241) - ($458,963 + $344,222 = $803,185) = loss of $86,056.
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) (2) (B) 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. Additionally it adds language that funds should be allocated to emergency medical services and the Safe School Fund. The section does not indicate how the 24% (40% of 60%) shall be allocated between Emergency Medical Services and the Safe School Fund as these funds are under different Departments.
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: Sherri A. Young, Cabinet Secretary
Email Address: dhhrbudgetoffice@wv.gov