OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

http: //www. cga. ct. gov/ofa

HB-5389

AN ACT CONCERNING THE PALLIATIVE USE OF MARIJUANA.

OFA Fiscal Note

State Impact:

Agency Affected

Fund-Effect

FY 13 $

FY 14 $

Consumer Protection, Dept.

GF - Cost

162,820

195,500

Comptroller Misc. Accounts (Fringe Benefits)1

GF - Cost

46,023

55,227

Consumer Protection, Dept.

Palliative Marijuana Administration account (non-appropriated account - Revenue Gain

267,500

195,066

Judicial Dept.

GF - Revenue Gain

less than 25,000

less than 25,000

Note: GF=General Fund

Municipal Impact: None

Explanation

The bill results in a cost to the state of $208,843 in FY 13 and $250,727 in FY 14. Additionally the bill results in a revenue gain to the state of $267,500 in FY 13 and approximately $195,066 in FY 14. The bill requires sufficient revenue in each year to cover the costs of administering the program.

The costs in FY 13, which represents ten month funding where appropriate, include two Drug Control Agents ($113,333), one License Application Analyst ($41,167), vehicle, oil and gas ($5,417) and one-time computer and other equipment ($2,900) at the Department of Consumer Protection (DCP), plus fringe benefit costs of $46,023. The costs in FY 14 are annualized to include two Drug Control Agents ($136,000), one License and Application Analyst ($53,000), vehicle, oil and gas ($6,500) at DCP plus fringe benefit cost of $55,227.

The revenue in FY 13 assumes ten producer applicants (the maximum set forth in the bill) at a fee of $25,000, which generates $250,000 and 700 initial user registrants at a fee of $25, which generates $17,500. User registration is anticipated to grow to 1,400 in subsequent years. The estimate of user registration is based on the experience in Vermont and Rhode Island. The DCP will set dispensing and producer renewal fees at a level sufficient to cover administrative costs. All fees are to be deposited in the Palliative Marijuana Administration account established in the bill.

The bill makes it a class C misdemeanor to lie to a law enforcement official about acquiring, distributing, possessing, using, or transporting marijuana or related paraphernalia for palliative use for purpose of avoiding arrest or prosecution. The bill also makes it a class A misdemeanor to lie to a law enforcement officer about the issuance, contents, or validity of a: 1) written certification for palliative use or 2) document purporting to be a written certification. This will result in an estimated revenue gain of less than $25,000 to the General Fund. The estimate assumes that the establishment of a crime for this offense will result in less than 50 offenders annually.

It is anticipated that the number of additional low-risk offenders placed on probation would be less than 50, and would not result in additional resources being required by the Judicial Department. An additional 50 offenders placed on probation would represent a 0. 1% increase to the total probation caseload.

The Out Years

The annualized ongoing fiscal impact identified above would continue into the future subject to inflation.

Sources:

Various state registration databases.

1 The fringe benefit costs for most state employees are budgeted centrally in accounts administered by the Comptroller. The estimated non-pension fringe benefit cost associated with most personnel changes is 29. 22% of payroll in FY 13 and FY 14.