LEGISLATIVE BUDGET BOARD
                          Austin, Texas

                           FISCAL NOTE
                       74th Regular Session

                           May 2, 1995



 TO:     Honorable Curtis Seidlits, Chair       IN RE: Committee Substitute
         Committee on State Affairs             for
         House of Representatives                              House Bill
         Austin, Texas                          No. 2460










FROM: John Keel, Director

In response to your request for a Fiscal Note on House Bill No.
2460 (relating to the possession, purchase, sale, distribution,
and receipt of cigarettes and tobacco products; providing
penalties) this office has determined the following:

The bill would make no appropriation but could provide the legal
basis for an appropriation of funds to implement the provisions
of the bill.

The bill would amend the Health and Safety Code regarding the
sale and distribution of tobacco products to minors.  The bill
would require an owner of a business selling tobacco products to
notify employees that state law prohibits tobacco sales to
minors.  The bill would establish certain fines for the failure
to notify employees, and for possession of tobacco by minors.

The bill would require the Texas Commission on Alcohol and Drug
Abuse to enforce the provisions of the bill through coordination
with local law enforcement agencies.  The bill requires that
enforcement action include annual random inspections at
businesses where tobacco products are sold.  The bill would
establish a $15.00 retailers permit fee.

The probable fiscal implication of implementing the provisions of
the bill during each of the first  five years following passage
is estimated as follows:    




     



        
            Fiscal  Probable Cost Out    Probable Revenue      Change in    
             Year      of  General      Gain to   General   Number of State 
                     Revenue Fund 001    Revenue Fund 001    Employees from 
                                                                FY 1995     
                                                                            
          1996                $954,795            $751,755               5.0
          1997                 709,595             751,755               5.0
                                                                            
          1998                 654,277             751,755               5.0
                                                                            
          1999                 626,477             751,755               5.0
          2000                 613,977             751,755               5.0
                                                                            
                                                                            
                                                                            
       Similar annual fiscal implications would continue as long as the
provisions of the bill are in effect.

The fiscal implication to units of local government cannot be
determined.


Source:   Commission on Alcohol and Drug Abuse
          LBB Staff: JK, BL, RR