LEGISLATIVE BUDGET BOARD
Austin, Texas
 
FISCAL NOTE, 82ND LEGISLATIVE REGULAR SESSION
 
February 28, 2011

TO:
Honorable Lois W. Kolkhorst, Chair, House Committee on Public Health
 
FROM:
John S O'Brien, Director, Legislative Budget Board
 
IN RE:
HB670 by Crownover (Relating to the elimination of smoking in certain workplaces and public places; providing penalties.), As Introduced

No direct significant fiscal implication to the State is anticipated; however, it is likely that secondary effects of the bill's provisions would result in significant cost savings to the state's various healthcare and health insurance programs.

The bill would prohibit smoking in public places, places of employment, and seating areas of outdoor events; exceptions are provided. The Department of State Health Services (DSHS) would be required to guide employers, owners, operators, and managers in complying with the chapter and would be responsible for enforcement of the chapter. The bill establishes offenses and penalties for violation of the provisions of the chapter. The bill would take effect September 1, 2011.

 

DSHS is required to engage in public education, in part through a brochure, and serve as a guide to compliance with the new chapter, but the bill does not specify a delivery method. According to the agency, a brochure could be published on one of DSHS' existing tobacco program websites. It is assumed that any costs would be minimal and could be absorbed by the agency. DSHS indicates that an existing toll-free service would be used to receive complaints about violations, and that the increased volume of calls would not affect the existing contract.

 

The Office of the Attorney General indicates that the new complaints, investigations, or cases associated with implementation of the bill could be absorbed within existing resources.

 

According to various studies, the bill may result in significant savings in health care costs, especially as related to the effects of secondhand smoke. The greatest impact would be seen on the costs associated with low birth weight, childhood asthma, and coronary heart disease. These savings would likely increase over time, and would include impacts to both the state employee health care program and Medicaid.  The Health and Human Services Commission projects potential Medicaid savings of approximately $13 million in General Revenue Funds (approximately $31 million All Funds) for the 2012-13 biennium; the estimated five-year savings would total $35 million in General Revenue Funds ($83 million in All Funds).


Local Government Impact

The bill would repeal Section 48.01 of the Penal Code, and Section 2, Chapter 290, Acts of the 64th
Legislature, Regular Session, 1975. There would be some costs to local governments associated with
implementing the provisions of the bill, mostly consisting of purchasing and installing signage in
public places to inform citizens of the ban, which also would result in ongoing costs to replace broken, worn, or stolen signs.

There would be costs to local law enforcement to enforce a ban, but this would depend on the number
of offenders, and some of the costs would be offset by the fines imposed on offenders.



Source Agencies:
302 Office of the Attorney General, 529 Health and Human Services Commission, 537 State Health Services, Department of
LBB Staff:
JOB, CL, MB, VJC, SD