Notice of Introduction for Senate Bill 6077 - Update: 10 Year Analysis Complete

Office of Financial Management

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UPDATE: The 10 year analysis for SB 6077, titled AN ACT Relating to regulating hemp in food, 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:




Department of Agriculture:

Section 4 would create a pilot program to regulate the processing of hemp consumables in the same manner as other food processing.  Under current law, WSDA provides a voluntary food safety certification for hemp products processed as food ingredients in another state that allows this use, and the fees for hemp extract certifications under Washington Administrative Code (WAC) 16-171-120, are as follows:

 

New Application fee:  $1,400

New Certification inspection fee:  $3,000

Annual Certification Renewal Application Fee:  $1,500

 

Revenue collected by WSDA under the provisions of Chapter 69.07 RCW is deposited in the food processing inspection account within the Agricultural Local Fund.

 

WSDA assumes the same fee structure for hemp extract certifications would apply for the annual hemp consumable processing endorsement pilot program created in section 4.  The endorsements would be required for hemp extract used as a food ingredient in Washington State for persons aged 21 or older.  Because hemp extract certifications are voluntary under current law, and only apply to hemp extract used as a food ingredient outside of Washington State, WSDA does not have data to estimate the number of hemp consumable processing endorsement applications would be received would under the proposed legislation.  Almost 50 entities are currently registered as hemp producers in Washington.  However, this number does not indicate how many current producers would seek hemp extract certifications if they were required for hemp used as a food product in Washington State, and the pilot program would limit products to a certain age group. Nor could the department predict level of new interest in the pilot program. For this reason, WSDA has no basis to estimate cash receipts for hemp consumable processing application fees.   

 

An example scenario is provided below for reference purposes, but the numbers are not included in the table.

 

WSDA assumes the new program would be effective July 1, 2025, per section 4 (1). Based on the current number of Washington hemp processors, this example assumes 50 endorsement applications in fiscal year (FY) 2026, being renewed each year thereafter.  For this hypothetical example, inspections would be performed by WSDA for half of the applications, and the other half would use a third party vendor.

 

The total fee revenue for each new endorsement would be the sum of the new application fee ($1,400) and the new certification inspection fee, if applicable ($3,000) for a total of $4,400 for each new certification for which WSDA provides the inspection.  The fee would be $1,4000 for an endorsement where the applicant secures the inspection from a qualified third party.  For 25 endorsements with inspections in FY 2026, the estimated revenue would be $110,000.  For 25 endorsements not requiring WSDA inspection, the estimated revenue would be $35,000.  Total estimated revenue in FY 2026 based on the assumptions above would be $145,000. 

 

The estimated revenue for renewals, beginning in FY 2026 and ongoing thereafter, based on the annual certification renewal fee amount of $1,500, and an assumption of 50 renewals, would be $75,000.

 



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

Department of Agriculture


Bill sponsors and contact information:




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

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