This amendment to House Substitute No.

Plain English Breakdown

The official status indicates this amendment was introduced and placed with the bill on June 25, 2026. While metadata mentions 'Passed Legislature,' the digest text only confirms introduction; final passage details are not explicitly detailed in the provided summary or excerpt.

Amendment Changing Lab Rules, Tax Rate, and Fund Handling for HDCPS

This bill requires HDCPS to be tested by accredited labs not disapproved by DATE, raises the retail tax rate from 6% to 9%, mandates that tax money be held in a separate fund, and sets an end date based on a federal law.

What This Bill Does

• Requires that HDCPS products are tested by accredited laboratories unless specifically disapproved by DATE.
• Raises the retail tax rate from 6% to 9%.
• Mandates that all money collected from this tax be held in a fund separate from other state funds.
• Sets an end date for the law based on when a specific federal agriculture amendment takes effect.

Who It Names or Affects

• Retailers who sell HDCPS products and must pay the new tax rate to the Division of Revenue.
• Laboratories that test HDCPS products, which must be accredited and not disapproved by DATE.

Terms To Know

HDCPS

A product mentioned in the bill that requires testing and is subject to a tax.

DATE

The state agency with the power to specifically disapprove laboratories from doing tests.

Sunset

A rule that causes this law to end automatically on a certain date linked to federal legislation.

Limits and Unknowns

• The exact effective date for the tax increase is not listed in this text.
• The specific federal amendment mentioned as the trigger for ending the law has not yet taken effect according to the dates provided.
• This document does not explain what happens if a lab is disapproved by DATE.

Official Summary Text

This amendment to House Substitute No. 1 for House Bill No. 401 does the following: (1) Specifies that HDCPS must be tested by an accredited lab that has not been specifically disapproved by DATE; (2) Raises the retail tax rate from 6 to 9%; (3) Specifies that tax receipts under this Act will be held separately from other State funds; and (4) Specifies that the Act will sunset on the effective date of a certain amendment to Section 297A of the Agricultural Marketing Act of 1946.

Current Bill Text

Legislation Document

SPONSOR:

Rep. Lynn

HOUSE OF REPRESENTATIVES

153rd GENERAL ASSEMBLY

HOUSE AMENDMENT NO. 1

TO

HOUSE SUBSTITUTE NO. 1

FOR

HOUSE BILL NO. 401

AMEND House Substitute No. 1 for House Bill No. 401 on line 101 by deleting “

accredited.

” and inserting in lieu thereof “

accredited, unless the laboratory has been specifically disapproved by DATE.

”.

FURTHER AMEND House Substitute No. 1 for House Bill No. 401 on line 193 by deleting “

6%

” and inserting in lieu thereof “

9%

”.

FURTHER AMEND House Substitute No. 1 for House Bill No. 401 by deleting lines 208 and 209 in their entirety and inserting in lieu thereof the following:

“

(c) (1) A retailer shall pay the HDCP tax to the Division of Revenue in the form and manner prescribed by the Director of Revenue, but not later than with each monthly report.

(2) The Division of Revenue shall hold all receipts collected under this section in a fund separate from all other State monies.

”.

FURTHER AMEND House Substitute No. 1 for House Bill No. 401 by inserting after line 223 the following:

“Section 3. This Act sunsets on the effective date of the Continuing Appropriations, Agriculture, Legislative Branch, Military Construction and Veterans Affairs, and Extensions Act of 2026 that applies to amendments to Section 297A of the Agricultural Marketing Act of 1946 (7 U.S.C. 1639 (o)) by Section 781 of Public Law No. 119-37 (11/12/2025)).”.

SYNOPSIS

This amendment to House Substitute No. 1 for House Bill No. 401 does the following: (1) Specifies that HDCPS must be tested by an accredited lab that has not been specifically disapproved by DATE; (2) Raises the retail tax rate from 6 to 9%; (3) Specifies that tax receipts under this Act will be held separately from other State funds; and (4) Specifies that the Act will sunset on the effective date of a certain amendment to Section 297A of the Agricultural Marketing Act of 1946.