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OHIO LEGISLATIVE SERVICE COMMISSION <br />Office of Research <br />and Drafting <br />Legislative Budget <br />Office <br />Version: As Passed by the House <br />Primary Sponsors: Reps. Fraizer and Lipps <br />Local Impact Statement Procedure Required: No <br />Shannon Pleiman, Senior Budget Analyst <br />Highlights <br />The Division of Food Safety within the Department of Agriculture will incurcoststo create <br />a program to monitor and regulate the processing of kratom and kratom products. These <br />costs would be offset by an annual license fee that is to be established in rule. Costs would <br />be paid from the Kratom Program Fund which the bill creates for the Department to use <br />to administer and enforce the program. <br />The bill may minimally increase caseload for county prosecutors to prosecute violations <br />of the bill's provisions. The bill establishes a minor misdemeanor for a first offense <br />(maximum fine of $150) and a fourth degree misdemeanor for subsequent violations <br />(maximum fine of $2S0 and a jail sentence of not more than 30 days). <br />Detailed Analysis <br />Regulation of kratom <br />The Division of Food Safety within the Department of Agriculture will incur costs to create <br />a program to monitor and regulate kratom processing. Specifically, the bill requires the <br />Department to issue kratom processing licenses and establish procedures for testing and <br />inspecting kratom products. The kratom processing license is valid for three years. The cost that <br />will be incurred by the Department ultimately depends on the number of kratom processors, <br />which is unknown. This cost may be offset by an annual license fee that is to be established in <br />rule by the Department. License fees will be deposited into the Kratom Program Fund created by <br />the bill. <br />The Division employs 16 food safety specialists and 13 other food safety personnel. <br />Depending on the number of licensed kratom processors, the Division may need to hire <br />additional food safety specialists. Based on the state's employee classification plan, if a Food <br />February u, zmzz <br />