Update: 10 Year Analysis Complete for House Bill 1641

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UPDATE: The 10 year analysis for HB 1641, titled AN ACT Relating to enacting policy solutions to address public health challenges of high-potency cannabis products, has been completed. 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:

Liquor and Cannabis Board:

Section 1(1)(a): There is levied and collected a cannabis excise tax equal to:

      (i)  37 percent of the selling price on each retail sale in this state of cannabis-infused products, useable cannabis with a THC concentration less than 35 percent, and cannabis concentrates with a THC concentration less than 35 percent;

     (ii)  50 percent of the selling price on each retail sale in this state of cannabis concentrates and useable cannabis with a THC concentration of 35 percent or greater but less than 60 percent; and

     (iii) 65 percent of the selling price on each retail sale in this state of cannabis concentrates and useable cannabis with a THC concentration greater than 60 percent.

The agency's Cannabis Central Reporting System (CCRS) has the capability for cannabis retailers to report THC percentages on sales to consumers, however, licensees are not required to utilize this functionality and it appears it is used less than 1/10th of the time. Thus, the agency does not have enough data to make an analysis regarding the impact of changing the cannabis excise tax structure would have, so the impact is indeterminate.

Section 3(1)(c):

     (i) Retail outlets may not sell a cannabis product with greater than 35 percent total tetrahydrocannabinol to a person who is under age 25 who is not a qualifying patient or designated provider.  Violations of subsection (1)(c) are subject to penalties. The agency makes no assumptions regarding increase in penalty revenue.

Ten-year projection prepared in consultation with the following agencies:

Liquor and Cannabis Board


Bill sponsors and contact information:

Representative Lauren Davis, Prime Sponsor
Democrat
(360) 786-7910
DAVIS_LA@leg.wa.gov

Representative Tom Dent
Republican
(360) 786-7932
tom.dent@leg.wa.gov

Representative Mari Leavitt
Democrat
(360) 786-7890
LEAVITT_MA@leg.wa.gov

Representative Paul Harris
Republican
(360) 786-7976
Paul.Harris@leg.wa.gov

Representative Lisa Callan
Democrat
(360) 786-7876
CALLAN_LI@leg.wa.gov

Representative Carolyn Eslick
Republican
(360) 786-7816
ESLICK_CA@leg.wa.gov

Representative Amy Walen
Democrat
(360) 786-7848
WALEN_AM@leg.wa.gov

Representative Lillian Ortiz-Self
Democrat
(360) 786-7972
lillian.ortiz-self@leg.wa.gov

Representative Alex Ramel
Democrat
(360) 786-7970
alex.ramel@leg.wa.gov

Representative Alicia Rule
Democrat
(360) 786-7980
Alicia.Rule@leg.wa.gov

Representative Mia Gregerson
Democrat
(360) 786-7868
mia.gregerson@leg.wa.gov

Representative Gerry Pollet
Democrat
(360) 786-7886
gerry.pollet@leg.wa.gov




Legislative Bill Information Website: http://apps.leg.wa.gov/billinfo/

Initiative 960 Website: http://www.ofm.wa.gov/tax/default.asp