FISCAL NOTE
Date Requested: January 16, 2026
Time Requested: 03:07 PM |
| Agency: |
Agriculture, WV Department of |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2126 |
Introduced |
HB4459 |
|
|---|
| CBD Subject: |
Crime; Health |
|---|
|
FUND(S):
AGRICULTURE FEES FUND
Sources of Revenue:
Special Fund
Legislation creates:
Decreases Existing Revenue
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
Implementation of House Bill 4459 to classify kratom as a Schedule I controlled substance would eliminate revenue currently generated by the West Virginia Department of Agriculture (WVDA) through kratom registrations and sales tax collections. Despite the loss of this revenue, the WVDA would continue to incur personnel and operational costs associated with inspection, compliance, and enforcement activities required.
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 |
-343,750 |
-1,375,000 |
-1,375,000 |
Explanation of above estimates (including long-range effect):
It is estimated that this proposed bill would not increase or decrease costs for the Department of Agriculture. Even though the measure reclassifies kratom as a schedule I drug, the Department of Agriculture would still require personnel for inspection, compliance, enforcement, and administrative support to continue to carry out duties in Chapter 19-12E. Current staff are regionally-based and responsible for both hemp and kratom enforcement. Current costs for these activities total $500,000.
Kratom registrations ($450,000) and sales tax collections ($600,000) generate approximately $1.05 million in revenue annually for the West Virginia Department of Agriculture. The Alcohol Beverage Control Commission and Fight Substance Abuse Fund would also lose $325,000 in revenue annual from sales tax remittance. Fiscal year 2026's revenue decrease is estimated if this measure is effective from passage (25% of annual amount).
Memorandum
While revenue generated from 19-12E is currently sufficient to support the Department's regulatory responsibilities for select plant-based derivatives, recent federal legislation affecting the legality of many products currently registered for sale in the State of WV may leave enforcement and regulatory activities underfunded in the future.
Person submitting Fiscal Note: Laryssa Hoskins, CFO
Email Address: lhoskins@wvda.us