LEGISLATIVE BUDGET BOARD
                          Austin, Texas

                           FISCAL NOTE
                       74th Regular Session

                          April 2, 1995



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







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 possession of tobacco by minors.

The bill would require the Department of Public Safety to enforce
the provisions of the bill through coordination with local law
enforcement agencies.  The bill requires that enforcement action
include, at a minimum, annual random, unannounced inspections at
businesses where tobacco products are sold.  The Department of
Public Safety would be authorized to establish administrative
penalties, suspension, and revocation of permits held by
businesses.

The revenue generated by fines or administrative penalties
imposed on tobacco industry permittees and minors cannot be
estimated.    




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      Change in   
             Year      of  General      Number of State
                     Revenue Fund 001   Employees from 
                                            FY 1995    
                                                       
          1996              $2,059,328             24.0
          1997               1,427,328             24.0
                                                       
          1998               1,412,328             24.0
                                                       
          1999               1,412,328             24.0
          2000               1,412,328             24.0
                                                       
                                                       
                                                       




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:   Comptroller of Public Accounts, Department of Public
Safety,
                         Alcoholic Beverage Commission
          LBB Staff: JK, BL, DF