Bill Summary – FastDemocracy

Division of the Budget
Landon State Office Building                                                                        Phone: (785) 296-2436
900 SW Jackson Street, Room 504                                                                    adam.c.proffitt@ks.gov
Topeka, KS 66612                                Division of the Budget                            http://budget.kansas.gov
Adam Proffitt, Director                                                                          Laura Kelly, Governor


                                                  January 31, 2023


         The Honorable Will Carpenter, Chairperson
         House Committee on Federal and State Affairs
         300 SW 10th Avenue, Room 346-S
         Topeka, Kansas 66612
         Dear Representative Carpenter:
                   SUBJECT:       Fiscal Note for HB 2188 by House Committee on Federal and State Affairs
                 In accordance with KSA 75-3715a, the following fiscal note concerning HB 2188 is
         respectfully submitted to your committee.
                 HB 2188 would regulate kratom products and dealers under the Kansas Food, Drug, and
         Cosmetic Act. The Secretary of Agriculture would be required to issue licensure of kratom dealers
         and promulgate rules and regulations regarding such licensure. The Act would prohibit certain
         levels of non-kratom substances and synthetic additions to kratom products, tasking the Kansas
         Department of Agriculture with sampling, inspecting, and analyzing such products sold within the
         state.

                                            Estimated State Fiscal Effect
                                       FY 2023         FY 2023            FY 2024         FY 2024
                                        SGF            All Funds           SGF            All Funds
            Revenue                             --                 --             --           $99,000
            Expenditure                         --                 --             --           $98,655
            FTE Pos.                             --               --               --                  --
                 The Kansas Department of Agriculture estimates that regulating kratom products and
         dealers under the agency’s Food Safety & Lodging Program would generate $99,000 of revenue
         in FY 2024 and $76,500 of revenue in all subsequent fiscal years. The larger revenue estimate for
         FY 2024 is due to one-time application fees.
The Honorable Will Carpenter, Chairperson
Page 2—HB 2188

        The most significant expense associated with HB 2188 is for testing products, with lab
testing supplies costing nearly $700 per sample. The Department of Agriculture estimates that the
cost of implementing HB 2188 would total $98,655 per year, including $70,000 per year for
product testing, $20,000 per year for administration and overhead, and $8,655 for inspections and
sampling. Any fiscal effect associated with HB 2188 is not reflected in The FY 2024 Governor’s
Budget Report.


                                                    Sincerely,

                                                    Adam Proffitt
                                                    Director of the Budget

cc: Kellen Liebsch, Department of Agriculture
Statutes affected: 
As introduced: 65-656