Missouri 2023 2023 Regular Session

Missouri House Bill HB912 Introduced / Fiscal Note

Filed 04/26/2023

                    COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:1837H.02C Bill No.:HCS for HB 912  Subject:Consumer Protection; Drugs and Controlled Substances; Department of Health 
and Senior Services 
Type:Original  Date:April 26, 2023Bill Summary:This proposal creates new provisions relating to the sale of kratom products. 
FISCAL SUMMARY
ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2024FY 2025FY 2026Total Estimated Net 
Effect on General 
Revenue $0$0$0
ESTIMATED NET EFFECT ON OTHER STATE FUNDSFUND AFFECTEDFY 2024FY 2025FY 2026Total Estimated Net 
Effect on Other State 
Funds $0$0$0
Numbers within parentheses: () indicate costs or losses. L.R. No. 1837H.02C 
Bill No. HCS for HB 912  
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ESTIMATED NET EFFECT ON FEDERAL FUNDSFUND AFFECTEDFY 2024FY 2025FY 2026Total Estimated Net 
Effect on All Federal 
Funds $0$0$0
ESTIMATED NET EFFECT ON FULL TIME EQUIVALENT (FTE)FUND AFFECTEDFY 2024FY 2025FY 2026Total 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 2024FY 2025FY 2026Local Government$0 to (Unknown)$0 to (Unknown)$0 to (Unknown) L.R. No. 1837H.02C 
Bill No. HCS for HB 912  
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FISCAL ANALYSIS
ASSUMPTION
§196.1170 – Sale of kratom products
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] 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 Kansas CityCity of Springfield 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. 
In response to similar legislation from the current session (SB 504), officials from the Office of 
the State Courts Administrator
organization.
Oversight notes provisions of this bill (§196.1170.3) provides that the General Assembly 
occupies and preempts the regulation of kratom to the complete 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 dealer is guilty of a class D misdemeanor. 
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. L.R. No. 1837H.02C 
Bill No. HCS for HB 912  
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FISCAL IMPACT – State GovernmentFY 2024
(10 Mo.)
FY 2025FY 2026$0$0$0FISCAL IMPACT – Local GovernmentFY 2024
(10 Mo.)
FY 2025FY 2026LOCAL 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)
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.
The General Assembly preempts the entire field of regulating kratom products to the exclusion 
of any order, ordinance, or regulation of any political subdivision of the state. Any existing 
orders, ordinances, or regulations of any political subdivision of the state relating to kratom are 
void under this bill.
A dealer may not prepare, distribute, sell, or expose for sale a kratom product that is adulterated 
or contaminated with a dangerous non-kratom substance, contains a level of 7-
hydroxymitragynine in the alkaloid fraction that is greater than 2% composition of the product, 
contains any synthetic alkaloids, or does not include on its package or label the amount of 
mitragynine, 7- hydroxymitragynine, or other synthetically derived compounds of the plant  L.R. No. 1837H.02C 
Bill No. HCS for HB 912  
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Mitragyna speciosa. A dealer may not distribute, sell, or expose for sale a kratom product to 
anyone under 18 years of age.
The bill specifies penalties for a violation of the labeling requirements and allows for a person 
who is aggrieved by a violation of the labeling requirements to bring a cause of action for 
damages resulting from the violation. 
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 State Public Defender
City of Kansas City
City of Springfield
Missouri Office of Prosecution Services
Office of the State Courts Administrator
Julie MorffRoss StropeDirectorAssistant DirectorApril 26, 2023April 26, 2023