FISCAL NOTE
Date Requested: January 30, 2024
Time Requested: 04:47 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 3287 |
Introduced |
SB585 |
|
|---|
| CBD Subject: |
Professions and Occupations |
|---|
|
FUND(S):
General Revenue Fund, Public Employees Insurance Agency
Sources of Revenue:
General Fund Public Employees Insurance Agency
Legislation creates:
Creates New Revenue, Increases Existing Expenses, Creates New Program
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The stated purpose of this bill is to provide the use of legal cannabis sales profits to offset employee contributions to the Public Employees Insurance program if the sale of recreational cannabis is legalized in West Virginia.
This bill stipulates that if the sale of recreational cannabis is legalized in West Virginia, 50 percent of the profits from the sale of recreational cannabis would be used to offset the employee’s proportionate share of the premium or cost. According to our interpretation, this bill allows the State to collect 50 percent of the profit from recreational cannabis, but no method is given in the bill for collection of the monies due and the bill fails to provide a definition of “profit”. Since recreational cannabis remains illegal in West Virginia, there would be no revenue impact from passage of this bill.
There would be no administrative cost incurred by the Tax Division.
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 |
0 |
0 |
Explanation of above estimates (including long-range effect):
This bill stipulates that if the sale of recreational cannabis is legalized in West Virginia, 50 percent of the profits from the sale of recreational cannabis would be used to offset the employee’s proportionate share of the premium or cost. According to our interpretation, this bill allows the State to collect 50 percent of the profit from recreational cannabis, but no method is given in the bill for collection of the monies due and the bill fails to provide a definition of “profit”. Since recreational cannabis remains illegal in West Virginia, there would be no revenue impact from passage of this bill.
There would be no administrative cost incurred by the Tax Division.
Memorandum
The stated purpose of this bill is to provide the use of legal cannabis sales profits to offset employee contributions to the Public Employees Insurance program if the sale of recreational cannabis is legalized in West Virginia.
Use of the undefined term “profits” is problematic. Beyond failing to define the term, the bill provides no guidance regarding how the state would collect 50 percent of the profit of anyone selling recreational cannabis, whether a special fund would be created to receive the collected monies, how the funds would be applied by PEIA to offset the employee’s proportionate share, or how this offset would affect the 80/20 employer/employee split mandated by W. Va. Code §5-16-5(d)(4).
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov