FISCAL NOTE
Date Requested: February 11, 2026
Time Requested: 05:08 PM |
| Agency: |
Alcohol Beverage Control Administration |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 4020 |
Introduced |
HB5437 |
|
|---|
| CBD Subject: |
Health; Public Safety |
|---|
|
FUND(S):
unclear
Sources of Revenue:
Other 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.
HB 5437 creates a "Vape Safety Act". The Act specifies the WVABCA Commissioner shall regulate the Act.
The Act seeks to regulate e-cigarettes and e-cigarette liquids for nicotine or tobacco based products. The Act defines a vape or smoke shop and requires a license, sets license requirements, and requires certain standards of business owners. The Act requires a background check in certain instances and references that the WV State Police would maintain a system for background checks.
The Act sets a vape or smoke shop license fee of $1,200, with a $150 late fee for missing the renewal deadline of June 30 of each year.
The Act requires the WVABCA to enforce the provisions of the Act upon vape or smoke shops through various inspections. The WVABCA would provide notice of failures to employees and licensees and attempts to fine managers or persons who violate the article.
The Act also requires a Vapor Product Registry with a $100 annual fee for each vapor product registered. The registration may be renewed annually or the product will be removed from the registry. The Act has reporting and labeling requirements. The Act also has criminal penalties.
HB 5437 will increase the costs of state government through creation of licensing, enforcement and registration for nicotine/tobacco based vape or smoke shops and he associated products.
The Tax Division may have some estimates on the number of vape shops and possibly some of the vape products.
The WVABCA does not know the number of vape shops or vape product in the state currently, thus the revenue estimate from the license and registration fees is difficult to provide.
It is difficult to say whether the licensees, fees and fines would be sufficient to cover the expense of administering the Act.
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.
HB 5437 will increase the costs of state government through creation of licensing, enforcement and registration for nicotine/tobacco based vape or smoke shops and he associated products.
The Tax Division may have some estimates on the number of vape shops and possibly some of the vape products. This would assist in generating possible revenue estimates.
It is difficult to say whether the license fees and fines would be sufficient to cover the expense of administering the Act.
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.
The bill provides for the WVABCA to fine managers and persons. Under administrative law, an agency may fine licensees and not individuals (unless they are issued a license).
There is no fund created to deposit and expend proceeds generated from licenses, fees and fines.
Person submitting Fiscal Note: Anoop Bhasin, General Counsel on behalf of WVABCA
Email Address: anoop.k.bhasin@wv.gov