COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:3296S.02T Bill No.:Truly Agreed To and Finally Passed SS for HB 1667 Subject:Consumer Protection; Drugs and Controlled Substances; Food; Department of
Health and Senior Services
Type:Original Date:June 2, 2022Bill Summary:This proposal creates the "Kratom Consumer Protection Act".
FISCAL SUMMARY
ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2023FY 2024FY 2025Total Estimated Net
Effect on General
Revenue $0$0$0
ESTIMATED NET EFFECT ON OTHER STATE FUNDSFUND AFFECTEDFY 2023FY 2024FY 2025Total Estimated Net
Effect on Other State
Funds $0$0$0
Numbers within parentheses: () indicate costs or losses. L.R. No. 3296S.02T
Bill No. Truly Agreed To and Finally Passed SS for HB 1667
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ESTIMATED NET EFFECT ON FEDERAL FUNDSFUND AFFECTEDFY 2023FY 2024FY 2025Total Estimated Net
Effect on All Federal
Funds $0$0$0
ESTIMATED NET EFFECT ON FULL TIME EQUIVALENT (FTE)FUND AFFECTEDFY 2023FY 2024FY 2025Total Estimated Net
Effect on FTE 000
☐ Estimated Net Effect (expenditures or reduced revenues) expected to exceed $250,000 in any
of the three fiscal years after implementation of the act or at full implementation of the act.
☐ Estimated Net Effect (savings or increased revenues) expected to exceed $250,000 in any of
the three fiscal years after implementation of the act or at full implementation of the act.
ESTIMATED NET EFFECT ON LOCAL FUNDSFUND AFFECTEDFY 2023FY 2024FY 2025Local Government$0 to (Unknown)$0 to (Unknown)$0 to (Unknown) L.R. No. 3296S.02T
Bill No. Truly Agreed To and Finally Passed SS for HB 1667
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FISCAL ANALYSIS
ASSUMPTION
§196.1170 – Sale of kratom products
Officials from the City of Kansas City state this legislation may have a negative fiscal impact
on Kansas City, Missouri if the City were to lose revenue from not being able to have a sales tax
on this product due to the preemption language in the legislation. The potential negative impact
is unknown.
Oversight notes provisions of this bill (§196.1170.3) provides that the General Assembly
occupies and preempts the regulation of kratom products to the exclusion of any order,
ordinance, or regulation of any political subdivision of the state and that any political
subdivision’s existing or future orders, ordinances or regulations relating to kratom will be void.
As Oversight does not have information to the contrary, Oversight will reflect a $0 to (Unknown)
potential loss of revenue to local governments.
Oversight also notes subsection .7 provides that if a kratom dealer violates certain provisions of
this proposal, the director of the Department of Health and Senior Services (DHSS) may, after
notice and hearing, impose a fine of no more than $500 for the first offense and no more than
$1,000 for second and subsequent offenses. In addition, a dealer that violates certain provisions
of this proposal is guilty of a class D misdemeanor. As it is unknown whether the DHSS will
impose any fines. Oversight assumes, for fiscal note purposes, the amount of fines collected will
be minimal and will not present fine revenue for fiscal note purposes.
Officials from the Missouri Office of Prosecution Services (MOPS) state there is no
measurable fiscal impact to MOPS. The enactment of a new crime [196.1170.7(2)] creates
additional responsibilities for county prosecutors and the circuit attorney which may in turn
result in additional costs which are difficult to determine.
Oversight does not have any information to the contrary. Therefore, Oversight will reflect no
impact for MOPS for fiscal note purposes.
Officials from the Department of Commerce and Insurance, the Department of Health and
Senior Services, the Department of Public Safety - Missouri Highway Patrol, the Office of
the State Public DefenderCity of Claycomo, the St. Louis County Clerk’s Office and the
Office of the State Courts Administrator each assume the proposal will have no fiscal impact
on their respective organizations. Oversight does not have any information to the contrary.
Therefore, Oversight will reflect a zero impact in the fiscal note for these agencies. L.R. No. 3296S.02T
Bill No. Truly Agreed To and Finally Passed SS for HB 1667
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Rule Promulgation
Officials from the Joint Committee on Administrative Rules assume this proposal is not
anticipated to cause a fiscal impact beyond its current appropriation.
Officials from the Office of the Secretary of State (SOS) note many bills considered by the
General Assembly include provisions allowing or requiring agencies to submit rules and
regulations to implement the act. The SOS is provided with core funding to handle a certain
amount of normal activity resulting from each year's legislative session. The fiscal impact for
this fiscal note to the SOS for Administrative Rules is less than $5,000. The SOS recognizes that
this is a small amount and does not expect that additional funding would be required to meet
these costs. However, the SOS also recognizes that many such bills may be passed by the
General Assembly in a given year and that collectively the costs may be in excess of what the
office can sustain with its core budget. Therefore, the SOS reserves the right to request funding
for the cost of supporting administrative rules requirements should the need arise based on a
review of the finally approved bills signed by the governor.
Oversight only reflects the responses received from state agencies and political subdivisions;
however, other cities and various county officials were requested to respond to this proposed
legislation but did not. A listing of political subdivisions included in the Missouri Legislative
Information System database is available upon request.
FISCAL IMPACT – State GovernmentFY 2023
(10 Mo.)
FY 2024FY 2025$0$0$0FISCAL IMPACT – Local GovernmentFY 2023
(10 Mo.)
FY 2024FY 2025LOCAL GOVERNMENTS -–
CITIES
Revenue Reduction – Cities Potential reduction in licensing fees
(§196.1170)
$0 to
(Unknown)
$0 to
(Unknown)
$0 to
(Unknown)
ESTIMATED NET EFFECT ON
LOCAL GOVERNMENTS - CITIES
$0 to
(Unknown)
$0 to
(Unknown)
$0 to
(Unknown) L.R. No. 3296S.02T
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FISCAL IMPACT – Small Business
This proposal may directly impact small businesses that sell kratom products. (§196.1170)
FISCAL DESCRIPTION
This bill establishes the "Kratom Consumer Protection Act", which requires dealers who prepare,
distribute, sell, or expose for sale a food that is represented to be a kratom product to disclose on
the product label the basis on which this representation is made. A dealer is prohibited from
preparing, distributing, selling, or exposing for sale a kratom product that does not conform to
these labeling requirements.
This legislation is not federally mandated, would not duplicate any other program and would not
require additional capital improvements or rental space.
SOURCES OF INFORMATION
Department of Commerce and Insurance
Department of Health and Senior Services
Department of Public Safety – Missouri Highway Patrol
Office of the Secretary of State
Office of the State Public Defender
City of Claycomo
City of Kansas City
St. Louis County Clerk’s Office
Joint Committee on Administrative Rules
Missouri Office of Prosecution Services
Office of the State Courts Administrator
Julie MorffRoss StropeDirectorAssistant DirectorJune 2, 2022June 2, 2022