BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON APPROPRIATIONS
                             Senator Ricardo Lara, Chair
                            2015 - 2016  Regular  Session

          SB 987 (McGuire) - Taxation:  medical marijuana:  Marijuana  
          Value Tax Act
          
           ----------------------------------------------------------------- 
          |                                                                 |
          |                                                                 |
          |                                                                 |
           ----------------------------------------------------------------- 
          |--------------------------------+--------------------------------|
          |                                |                                |
          |Version: March 15, 2016         |Policy Vote: GOV. & F. 5 - 1    |
          |                                |                                |
          |--------------------------------+--------------------------------|
          |                                |                                |
          |Urgency: No                     |Mandate: Yes                    |
          |                                |                                |
          |--------------------------------+--------------------------------|
          |                                |                                |
          |Hearing Date: May 27, 2016      |Consultant: Robert Ingenito     |
          |                                |                                |
           ----------------------------------------------------------------- 
          

          Bill  
          Summary: SB 987 would impose a 15 percent excise tax on medical  
          marijuana.


          *********** ANALYSIS ADDENDUM - SUSPENSE FILE ***********
             The following information is revised to reflect amendments 
                      adopted by the committee on May 27, 2016




          Fiscal  
          Impact: 
                 The Board of Equalization (BOE) estimates that the bill  
               would result in a revenue increase of $126 million in  
               2017-18, and $251 million annually thereafter. However,  
               because of the nature of this market, the assumptions used  
               to develop these estimates are subject to considerable  
               uncertainty (see Staff Comments). 

                 BOE indicates that it would incur administrative costs  







          SB 987 (McGuire)                                       Page 1 of  
          ?
          
          
               of $3.1 million in 2016-17, $5.4 million in 2017-18, $5.1  
               million for FY 2018-19, and $4.8 million in the out-years  
               to implement the provisions of the bill. 




          Author  
          Amendments: Reimburse BOE for upfront costs, and make technical  
          changes.


                                      -- END --