FISCAL NOTE
Date Requested: February 06, 2026
Time Requested: 01:31 PM |
| Agency: |
Alcohol Beverage Control Administration |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 3468 |
Introduced |
SB808 |
|
|---|
| CBD Subject: |
Health |
|---|
|
FUND(S):
General
Sources of Revenue:
General Fund
Legislation creates:
Creates New Revenue, Creates New Expense, Creates New Program
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
Summarize in a clear and concise manner what impact this measure will have on costs and revenues of state government.
The stated purpose of the bill is to regulate consumable hemp products and to establish
clear standards for the manufacture, distribution, sale, taxation, and enforcement of
consumable hemp products in West Virginia.
Note, this bill does not repeal W. Va. Code ยง19-12E-1 et seq., which is existing code that regulates hemp products, has licensee fees, registers products and applies a 11% tax on such products, which is split by Agriculture (65%), WVABCA (30%) and the substance abuse fund (5%) to provide funding for licensing, operations and enforcement.
This bill requires a license be issued to sell consumable hemp products but does not set a license fee and does not specify if there should manufacturer, wholesaler and retailer licenses. This bill prescribes a 10% tax on the product of which 80% goes to General Revenue and 20% of the tax goes to municipalities.
The bill would have the WVABCA license, regulate and enforce violations on this product. The bill does not provide any revenue for the WVABCA to license, regulate and enforce violations for this product. Further, the bill would have costs associated with regulating all consumable hemp products such as additional agents and equipment, software enhancements, and costs to adjudicate violations.
From the bill language it is difficult to determine a fiscal impact to the state.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2026
Increase/Decrease
(use"-") |
2027
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
0 |
0 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
0 |
0 |
Explanation of above estimates (including long-range effect):
Please explain increases and decreases in personal services, current expenses, repairs and alterations, assets, other costs and revenues, including assumptions and data sources and delineation between start-up and ongoing costs. Please also include a long-range schedule of costs and revenues if fiscal impact is expected to vary in future years.
From the bill language it is difficult to determine the fiscal impact.
The bill, as drafted, would significantly increase WVABCA's operational costs. Further, the revenue goes to General Revenue and municipalities. Thus, the costs to WVABCA would not have any revenue offset.
The bill would not be in effect until January 1, 2027.
The Tax Division may be able to extrapolate what the proposed additional 10% tax would generate on consumable hemp products from the current 11% tax collections.
Memorandum
Please identify any areas of vagueness, technical defects, reasons a bill would not have a fiscal impact, and/or any special issues not captured elsewhere on this form.
Person submitting Fiscal Note: Anoop Bhasin, General Counsel on behalf of WVABCA
Email Address: anoop.k.bhasin@wv.gov