COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:1695H.01I Bill No.:HB 593 Subject:Department of Health and Senior Services; Department of Public Safety; Drugs
and Controlled Substances
Type:Original Date:January 28, 2025Bill Summary:This proposal creates provisions relating to intoxicating cannabinoids.
FISCAL SUMMARY
ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2026FY 2027FY 2028Total Estimated Net
Effect on General
Revenue $0$0$0
ESTIMATED NET EFFECT ON OTHER STATE FUNDSFUND AFFECTEDFY 2026FY 2027FY 2028Veterans Health And
Care Fund (0606)$0 to Unknown$0 to Unknown$0 to Unknown
Veterans Health
Community
Reinvestment Fund
(0608)$0 to Unknown$0 to Unknown$0 to Unknown
Total Estimated Net
Effect on Other State
Funds$0 to Unknown$0 to Unknown$0 to Unknown
*The Department of Health and Senior Services (DHSS) states, per Article XIV, DHSS regulates
cannabis and has associated rules in place to provide a regulatory framework. DHSS could
receive additional revenues as the unregulated hemp-derived intoxicating cannabinoids market
would likely transition to the regulated cannabis market. Due to a lack of any additional
information, Oversight assumes increased revenues to DHSS could be over $250,000 annually.
Numbers within parentheses: () indicate costs or losses. L.R. No. 1695H.01I
Bill No. HB 593
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ESTIMATED NET EFFECT ON FEDERAL FUNDSFUND AFFECTEDFY 2026FY 2027FY 2028Total Estimated Net
Effect on All Federal
Funds $0$0$0
ESTIMATED NET EFFECT ON FULL TIME EQUIVALENT (FTE)FUND AFFECTEDFY 2026FY 2027FY 2028Total 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 2026FY 2027FY 2028Local Government$0$0$0 L.R. No. 1695H.01I
Bill No. HB 593
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FISCAL ANALYSIS
ASSUMPTION
§ 195.900 – Intoxicating cannabinoids
Officials from the Department of Health and Senior Services (DHSS) state § 195.900 of
proposed legislation amends Chapter 195 by placing regulation of all intoxicating cannabinoids
under the Department of Health and Senior Services' authority within the framework of Article
XIV, explicitly defining intoxicating cannabinoids as marijuana and not industrial hemp. The
proposal states that these products will be regulated by the Department in the same manner as it
regulates marijuana under Article XIV of the Missouri Constitution.
All or nearly all intoxicating cannabinoids in the unregulated market are produced using
chemical conversion of other cannabinoids. Intoxicating cannabinoids produced using such
chemical conversion cannot be created or sold under the Department’s Article XIV regulatory
framework. Since the Department’s Article XIV regulatory framework does not allow the
production or use of the intoxicating cannabinoids created through chemical conversion, it is
assumed there will be no change to the types of products, processes or businesses the Department
oversees under Article XIV. Therefore, the Department can absorb the costs of this bill with
current resources. However, if the workload in ensuring such cannabinoids are not produced or
sold significantly increases or other legislation becomes enacted, additional resources would be
requested through the appropriation process. The department could receive additional revenues
in the Veterans Health and Care Fund and the Veterans Health Community Reinvestment Fund if
some portion of the demand for intoxicating cannabinoids that is currently met by the
unregulated market transitions to the regulated cannabinoid market. However, there is no data
available on which to estimate that potential increase in revenue.
In order to calculate such an increase, it would be important to know the current demand and
revenue associated with unregulated intoxicating cannabinoids in Missouri, which has not been
tracked over the years that market has been growing in Missouri. If that data was available, it
would then be important to consider what demand and associated revenue for unregulated
cannabinoid products may transfer to the regulated market vs transferring to non-intoxicating
product markets, to no market at all, or to illicit market products. There is no good data regarding
those market choices, either, at this time. It is therefore assumed that the impact on revenue
arising from the move from the unregulated market to the regulated market is unknown
Additional revenues could flow to the Veterans Health and Care Fund and the Veterans Health
Community Reinvestment Fund if some portion of the demand for intoxicating cannabinoids that
is currently met by the unregulated market transitions to the regulated cannabinoid market. It is
assumed that the impact on revenue arising from the move from the unregulated market to
the regulated market is unknown. L.R. No. 1695H.01I
Bill No. HB 593
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Oversight does not have any information to the contrary. Therefore, Oversight will reflect “$0 to
Unknown” income to the Veterans Health and Care Fund and the Veterans Health Community
Reinvestment Fund for this agency.
Oversight notes the following activity for the two funds:
Balance at 12/31/24 Receipts in FY 24
Veterans Health and Care Fund (0606) $16,212,250 $738,483
Veterans Health Comm. Reiv. Fund (0608) $77,362,733 $8,294,559
Officials from the Department of Revenue (DOR) state this proposal declares its intent to
incorporate cannabinoids into the legal framework contained in Article XIV of the Missouri
Constitution. Article XIV is the regulations and taxation provisions governing the sale of
marijuana.
This proposal specifically states in Section 195.900.6 that “all intoxicating cannabinoids
products are marijuana” and subject to the same Constitutional provisions under Article XIV.
Since the intoxicating cannabinoids are not industrial hemp and are to be considered marijuana,
they are subject to the regulations and taxation provisions of Article XIV.
DHSS administers the Article XIV provisions of the Constitution and therefore this will not
fiscally impact DOR. DOR defers to DHSS for any impact of this provision.
In response to similar legislation from the 2024 Session, (HCS for HB 1781), officials from the
Office of Administration - Budget and Planning (B&P) deferred to the Department of Health
and Senior Services for the potential fiscal impact of this proposal.
Oversight notes the deferrals by DOR, DPS-MVC and B&P to DHSS for a statement of fiscal
impact; for fiscal note purposes, Oversight assumes no fiscal impact for DOR, DPS-MVC and
B&P.
Officials from the University of Missouri Health Care (MUHC) have reviewed the proposed
legislation and determined that as written it should not create expenses in excess of $100,000
annually.
Oversight assumes the costs incurred by the MUHC related to this proposal can be absorbed
within current resource levels.
Officials from the Office of Attorney General (AGO)
arising from this proposal can be absorbed with existing resources. However, the AGO may seek
additional appropriations if the proposal results in a significant increase in litigation or
investigation costs. L.R. No. 1695H.01I
Bill No. HB 593
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Oversight does not have any information to the contrary. Therefore, Oversight assumes the
AGO will be able to perform any additional duties required by this proposal with current staff
and resources and will reflect no fiscal impact to the AGO for fiscal note purposes.
Officials from the Public Schools and Education Employee Retirement Systems
(PSRS/PEERS) state, as currently drafted, this bill has no substantial fiscal or operational
impact on PSRS or PEERS of Missouri. Oversight does not have any information to the
contrary. Therefore, Oversight will reflect a zero impact in the fiscal note for this agency.
Officials from the Department of Commerce and Insurance, the Department of Corrections
the Department of Elementary and Secondary EducationDepartment of Labor and
Industrial Relations, the Department of Mental Health, the Department of Natural
Resources, the Department of Public Safety – Director’s Office, Missouri Highway Patrol
and Missouri Veterans Commission, the Department of Social Services, the Missouri
Department of Transportation, the MoDOT & Patrol Employees’ Retirement System, the
Missouri Department of AgricultureMissouri Office of Prosecution Services, the Office
of Administration, the Office of the State Public Defender, the Office of the State Treasurer,
the City of Kansas City, the Kansas City Police Department, the St. Louis County Police
Department, the Newton County Health Department, the Phelps County Sheriff’s
Department, the County Employees Retirement Fund, the Kansas City Civilian Police
Employees' Retirement, the Kansas City Police Retirement System, the Kansas City Public
School Retirement System, the Metro St. Louis Sewer District Employees Pension Plan, the
Sheriff's Retirement System, the Concordia R-2 School District, the St. Louis County Police
Department, the University of Missouri SystemNorthwest Missouri State University
the University Of Central Missouri, 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.
Officials from the Office of the State Courts Administrator did not respond to Oversight’s
request for fiscal impact for this proposal.
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 L.R. No. 1695H.01I
Bill No. HB 593
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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.
FISCAL IMPACT – State GovernmentFY 2026
(10 Mo.)
FY 2027FY 2028VETERANS HEALTH AND CARE
FUND (0606)
Income – DHSS (§ 195.814) – creation
of hemp-derived intoxicating
cannabinoids program p. 3$0 to Unknown$0 to Unknown$0 to Unknown
ESTIMATED NET EFFECT ON
THE VETERANS HEALTH AND
CARE FUND
$0 to
Unknown
$0 to
Unknown
$0 to
Unknown
VETERANS HEALTH
COMMUNITY REINVESTMENT
FUND (0608)
Income – DHSS (§ 195.814) – creation
of hemp-derived intoxicating
cannabinoids program p. 3$0 to Unknown$0 to Unknown$0 to Unknown
ESTIMATED NET EFFECT ON
THE VETERANS HEALTH
COMMUNITY REINVESTMENT
FUND
$0 to
Unknown
$0 to
Unknown
$0 to
Unknown
FISCAL IMPACT – Local GovernmentFY 2026
(10 Mo.)
FY 2027FY 2028$0$0$0 L.R. No. 1695H.01I
Bill No. HB 593
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FISCAL IMPACT – Small Business
The proposed legislation places hemp-derived intoxicating cannabinoids under framework of
Article XIV and associated rules. Any small businesses currently producing or selling these
products outside of the regulatory framework would no longer be able to do so. (§ 195.900)
FISCAL DESCRIPTION
This bill establishes the "Intoxicating Cannabinoid Control Act".
The bill specifies that hemp, industrial hemp, and hemp-derived products that do not contain
intoxicating cannabinoids will not be considered marijuana and must not be subject to the legal
framework contained in the Missouri Constitution.
This bill specifies that any intoxicating cannabinoid, in any form and from any source, is subject
to the regulations promulgated by the DHSS under Article XIV of the Constitution and treated as
marijuana under such regulations and sold only at dispensaries licensed by the Department.
No person or entity, aside from a comprehensive marijuana dispensary facility, medical
marijuana dispensary facility, or microbusiness dispensary facility licensed under the provisions
of the Constitution, will conduct business or carry on, under a name that contains as part of the
name the word "dispensary" or any similar word. (§ 195.900)
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
Attorney General’s Office
Budget and Planning
Department of Commerce and Insurance
Department of Corrections
Department of Elementary and Secondary Education
Department of Health and Senior Services
Department of Labor and Industrial Relations
Department of Mental Health
Department of Natural Resources
Department of Public Safety
Director’s Office
Missouri Highway Patrol
Missouri Veterans Commission
Department of Revenue
Department of Social Services
Joint Committee on Administrative Rules L.R. No. 1695H.01I
Bill No. HB 593
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Missouri Department of Agriculture
Missouri Department of Transportation
MoDOT & Patrol Employees’ Retirement System
Missouri Office of Prosecution Services
Office of Administration
Office of the Secretary of State
Office of the State Courts Administrator
Office of the State Public Defender
Office of the State Treasurer
University of Missouri System
City of Kansas City
Newton County Health Department
Phelps County Sheriff’s Department
Kansas City Police Department
St. Louis County Police Department
County Employees Retirement Fund
Kansas City Civilian Police Employees' Retirement
Kansas City Police Retirement System
Kansas City Public School Retirement System
Metro St. Louis Sewer District Employees Pension Plan
Public Education Employees' Retirement System
Sheriff's Retirement System
Concordia R-2 School District
Northwest Missouri State University
University Of Central Missouri
Julie MorffJessica HarrisDirectorAssistant DirectorJanuary 28, 2025January 28, 2025