FISCAL NOTE
Date Requested: January 16, 2026
Time Requested: 03:07 PM |
| Agency: |
Alcohol Beverage Control Administration |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2126 |
Introduced |
HB4459 |
|
|---|
| CBD Subject: |
Crime; Health |
|---|
|
FUND(S):
Special
Sources of Revenue:
Special Fund
Legislation creates:
Decreases Existing Revenue, Decreases Existing Expenses
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 bill proposes to make Kratom illegal by repealing the Kratom article at W. Va. Code 19-12F-1 et seq., and adds Kratom as a Schedule 1 controlled substance.
This will end revenues generated from the 11% Kratom tax (collected by the Tax Commissioner) and some incidental sales tax revenue.
This will decrease costs of time spent administratively enforcing the Kratom statutes, as Kratom becomes a criminal matter.
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 |
-124,467 |
-248,934 |
-248,934 |
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.
Using FY 25' Kratom tax collections and disbursements to WVABCA, the rough estimate (since hemp and kratom transfers are pooled together) of loss of kratom revenue would be about $248,934, assuming similar usage by patrons in FY 26'. Please check with Agriculture and Tax for any lost Kratom revenue or expenses affecting those offices.
With the bill, the Kratom enforcement costs would got to zero, as Kratom would be criminally enforced. However, the Hemp enforcement costs would remain which are the same locations generally. It is difficult to separately quantify the kratom enforcement costs as the hemp and kratom operations are completed jointly. There may be some staff time savings.
The Hemp and Kratom funds are collected and used for enforcement and excess funds over $200,000 are transferred to General Revenue annually. In FY 26', any Kratom Funds could be used for hemp enforcement or would be transferred to general revenue if in excess of $200,000 in the account. This transfer would be reduced in FY 26' and the following years.
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 K Bhasin
Email Address: anoop.k.bhasin@wv.gov