Notice of Public Hearing for House Bill 2279
Office of the Governor / Office of Financial Management sent this bulletin at 01/30/2020 05:04 PM PST
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HB 2279, titled AN ACT Relating to improving the development of the marijuana market by enacting provisions specific to craft cannabis production, has been scheduled for a public hearing by the House Committee on Commerce & Gaming.
Date and Time: 02/03/2020 1:30PM (Subject to change by the Legislature.)
Location: John L. O'Brien Building, House Hearing Rm C, Olympia, WA
The Office of Financial Management has identified this bill as requiring a ten-year projection of increased cost to the taxpayers or affected fee payers.
Ten-year projection:
|
Fiscal |
Marijuana License Application Fee |
Marijuana Processor License Fee |
Marijuana Producer License Fee |
Total |
|
|
|
|||||
|
2020 |
0$ |
0$ |
0$ |
0$ |
|
|
2021 |
280,500 |
828,600 |
720,882 |
$ 1,829,982 |
|
|
2022 |
280,500 |
1,657,200 |
1,441,764 |
$ 3,379,464 |
|
|
2023 |
70,000 |
1,657,200 |
1,441,764 |
$ 3,168,964 |
|
|
2024 |
70,000 |
1,657,200 |
1,441,764 |
$ 3,168,964 |
|
|
2025 |
70,000 |
1,657,200 |
1,441,764 |
$ 3,168,964 |
|
|
2026 |
70,000 |
1,657,200 |
1,441,764 |
$ 3,168,964 |
|
|
2027 |
70,000 |
1,657,200 |
1,441,764 |
$ 3,168,964 |
|
|
2028 |
70,000 |
1,657,200 |
1,441,764 |
$ 3,168,964 |
|
|
2029 |
70,000 |
1,657,200 |
1,441,764 |
$ 3,168,964 |
|
|
|
|||||
|
Total: |
$ 1,051,000 |
$ 14,086,200 |
$ 12,254,994 |
$27,392,194 |
|
Liquor and Cannabis Board:
The Liquor and Cannabis Board (LCB) estimates 600 new craft cannabis licenses would be issued over the first 2 years of the bill taking effect for a total of 1,200 new licenses, generating new revenue in the form of the $250 initial application fee and $1,381 license issuance and renewal fees. Based on the current ratio of producer to producer/processor licenses, LCB assumes that 87% of the new craft cannabis licenses would be producer/processor and 13% would be producer only. The producer/processor license is considered two separate licenses for purposes of assessing the application and license fees.
LICENSE FEES:
Assumptions:
FY2021: 78 Producer applications + 522 Producer/Processor applications (522 producer + 522 processor)
FY2022: 78 Producer applications + 522 Producer/Processor applications (522 producer + 522 processor)
FY2023+: 20 Producer applications + 130 Producer/Processor applications (130 producer + 130 processor)
All license fee revenue shown is estimated at the current fee amounts in statute and not potential reduced fees that would be established for social equity purposes.
Note: For purposes of this fiscal note the LCB assumes in FY2023 and beyond the number of new craft producer and craft producer/processor licenses remains at 1,200 with the number of new licensees entering the market being offset by existing licensees deciding to leave the market.
CASH RECEIPT IMPACT:
PRODUCER:
FY2021: 78 NEW APPLICATIONS X $250 = $19,500
FY2022: 78 NEW APPLICATIONS X $250 = $19,500
FY2023+: 20 NEW APPLICATIONS X $250 = $5,000
FY2021: 78 PRODUCER LICENSES ISSUED X $1,381 = $107,718
FY2022: 156 PRODUCER LICENSES ISSUED X $1,381 = $215,436
FY 2023+: 156 PRODUCER LICENSES ISSUED X $1,381 = $215,436
PRODUCER/PROCESSOR:
FY2021: 522 NEW APPLICATIONS X $250 X 2 = $261,000
FY2022: 522 NEW APPLICATIONS X $250 X 2 = $261,000
FY2023+: 130 NEW APPLICATIONS X $250 X 2= $65,000
FY2021: 522 PRODUCER PROCESSOR LICENSES ISSUED X $1,381 X 2 = $1,441,764
FY2022: 1044 PRODUCER PROCESSOR LICENSES ISSUED X $1,381 X 2 = $2,883,528
FY2023+: 1044 PRODUCER PROCESSOR LICENSES ISSUED X $1,381 X 2= $2,883,528
EXCISE TAX:
The cash receipt impact from the marijuana excise tax is indeterminate. It is assumed this bill could generate additional excise tax but the LCB does not make any assumption as to how much.
Ten-year projection prepared in consultation with the following agencies:
Liquor and Cannabis Board
Bill sponsors and contact information:
Representative Laurie Dolan, Prime Sponsor
Democrat
(360) 786-7940
Laurie.Dolan@leg.wa.gov
Representative Sherry Appleton
Democrat
(360) 786-7934
Sherry.Appleton@leg.wa.gov
Representative Sharon Wylie
Democrat
(360) 786-7924
Sharon.Wylie@leg.wa.gov
House Committee on Commerce & Gaming members and contact information:
Representative Brian Blake
Democrat
(360) 786-7870
Brian.Blake@leg.wa.gov
Representative Kelly Chambers
Republican
(360) 786-7948
CHAMBERS_KE@leg.wa.gov
Representative Bill Jenkin
Republican
(360) 786-7836
Bill.Jenkin@leg.wa.gov
Representative Steve Kirby
Democrat
(360) 786-7996
Steve.Kirby@leg.wa.gov
Representative Shelley Kloba
Democrat
(360) 786-7900
Shelley.Kloba@leg.wa.gov
Representative Drew MacEwen
Republican
(360) 786-7902
Drew.MacEwen@leg.wa.gov
Representative Melanie Morgan
Democrat
(360) 786-7906
MORGAN_ME@leg.wa.gov
Representative Strom Peterson
Democrat
(360) 786-7950
Strom.Peterson@leg.wa.gov
Representative Alex Ramel
Democrat
(360) 786-7970
Alex.Ramel@leg.wa.gov
Representative Brandon Vick
Republican
(360) 786-7850
Brandon.Vick@leg.wa.gov
Representative Jesse Young
Republican
(360) 786-7964
Jesse.Young@leg.wa.gov
Legislative Bill Information Website:
http://apps.leg.wa.gov/billinfo/
Initiative 960 Website: http://www.ofm.wa.gov/tax/default.asp