| TO: | Honorable Jane Nelson, Chair, Senate Committee on Health & Human Services |
| FROM: | John S. O'Brien, Director, Legislative Budget Board |
| IN RE: | HB9 by Crownover (Relating to the elimination of smoking in certain workplaces and public places; providing penalties.), As Engrossed |
The bill adds Chapter 169 to the Health and Safety Code. The newly created chapter prohibits smoking in public places, places of employment, seating areas of outdoor events, bleachers or grandstands for use by spectators at a sporting or other public event, and within 15 feet of an entrance, operable window, or ventilation system of a public place or place of employment; exceptions are provided, including allowing persons who privately own property to designate that property as exempt. The bill requires persons in control of a public place or a place of employment to clearly post signage indicating smoking is prohibited, remove all ashtrays from areas where smoking is prohibited, and make a reasonable effort to request that persons smoking in prohibited areas cease doing so. The bill prohibits an employer in control of a place of employment subject to the newly created chapter from awarding a contract to a proposed contractor unless the contractor offers the contractor's employees a smoking cessation program to assist employees who smoke. The bill allows an employer in control of a place of employment subject to the chapter to offer a smoking cessation program to employees; an employer offering such a program is entitled to a credit equal to the cost of the program against taxes owed under the franchise tax. The bill allows a person in control of an establishment, facility, or outdoor area to declare it a nonsmoking place in its entirety.
The Department of State Health Services (DSHS) or a public health official is authorized to enforce the chapter; DSHS, a public health official, or a law enforcement officer is authorized to enter and inspect public places in the course of enforcement. Complaints regarding violations of the chapter may be filed with DSHS or a political subdivision of the state. The Attorney General or a district, county, or city attorney may bring an action for injunctive relief to enforce the chapter. The bill establishes offenses and penalties for violation of the provisions of the chapter. DSHS is authorized to engage in a program to educate the public about the provisions of the newly created chapter. The chapter preempts and supersedes a local ordinance, rule, or regulation adopted by any political subdivision that restricts or prohibits smoking to a lesser degree unless the population of the political subdivision is less than 50,000 and the local ordinance, rule, or regulation was adopted before September 1, 2007. The voters in a municipality are authorized to vote to allow the governing body of the municipality to adopt a local ordinance that restricts or prohibits smoking to a lesser degree than this chapter, in which case the new chapter does not apply within the boundaries of that municipality; such an election shall be held on May 10, 2008. The bill also requires the Texas Building and Procurement Commission (TBPC) to give preference to a proposed state contractor in awarding contracts under Chapter 2166, Government Code, including contracts for services related to contracts under the chapter, to a contractor who has a worksite nonsmoking policy for the contractor's employees.
DSHS indicates that any costs related to education, complaints, and enforcement can be absorbed within available resources. The Office of the Attorney General indicates that the cost of any additional legal work could be reasonably absorbed with current resources. TBPC indicates no fiscal impact from giving preference to contractors with a worksite nonsmoking policy.
The prohibition on employers awarding a contract to a proposed contractor unless the contractor offers its employees a smoking cessation program to assist employees who smoke could have a significant fiscal impact to the state. The legislative, executive, and judicial branches of state government are specifically included in the definition of employer as relates to the bill; this could have a substantial impact on the process for awarding state contracts and could result in contracts being awarded in a manner that results in higher costs for the contract. In addition, the Office of the Comptroller of Public Accounts indicates there could be a substantial impact to franchise tax collections from the new tax credit related to smoking cessation programs. Neither of these impacts can be estimated at this time.
There would be costs to local governments to implement the provisions of the bill, mostly consisting of purchasing and installing signage in public places to inform citizens of the ban. The Texas Association of Counties estimated that a sign could range in cost from $10 to $50, depending on materials, size, and other factors. There would also be ongoing costs to replace signs that are broken, worn, stolen, or otherwise put out of commission.
There would be costs to local law enforcement to enforce a ban, but this would depend on the number of offenders. Some, but not all, of the costs would be recovered from the fines imposed on offenders.
Establishing contractor preferences for employers who offer smoking cessation programs could impact local governments, but the impact cannot be determined.
There would be costs to municipalities that choose to hold an election to enact an ordinance that prohibits or restricts smoking to a lesser degree than the one in the provisions of this bill. It is assumed that a municipality would hold an election only if sufficient funds are available.
| Source Agencies: | 303 Building and Procurement Commission, 304 Comptroller of Public Accounts, 537 State Health Services, Department of
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| LBB Staff: | JOB, CL, KJG, JRO, PP, LR
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