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