This is the $39 billion House spending proposal that requires some $1.5 billion in new taxes on top of the $3.0 billion in additional revenues the state is projected to receive over the next two years. It includes funding for court-mandated increases in state basic education support and wage and benefit increases for public employees negotiated between

the governor’s office and public employee unions last year.

The substitute bill eliminates the marijuana excise tax that applies to producers and processors, and imposes an excise tax of 37 percent on retail sales of marijuana. It changes the name of the state Liquor Control Board to the Liquor and Cannabis Board, and changes the distribution requirements of marijuana taxes collected by the

board.

The Health Benefit Exchange was established as a public private partnership to serve as an insurance marketplace for individuals, families and small businesses. This bill authorizes the Exchange to use premium taxes generated from qualified health plans through December 31, 2015. After January 1, 2016, the Exchange may no longer receive premium taxes generated from qualified health plans. All operations of the Exchange must be self-sustaining through the generation of assessments on qualified health plan carriers, Medicaid cost allocation, federal grants and other allowable sources.

The legislature created a Hospital Safety Net Assessment fund in 2010 that imposes an assessment on most hospitals, based on non-medicare inpatient days. Money in the fund, and federal matching grants, are used for various increases in hospital payments through Medicaid. This program is set to expire in 2017. The bill extends the program to 2019

and eliminates the phase-down that was to begin in 2016.