NOTE: As provided in LFC policy, this report is intended for use by the standing finance committees of the legislature.  The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used in any other situation.

The LFC is only preparing FIRs on bills referred to the Senate Finance Committee, the Senate Ways and Means Committee, the House Appropriations and Finance Committee and the House Taxation and Revenue Committee. The chief clerks are responsible for preparing and issuing all other bill analyses.

Only the most recent FIR version, excluding attachments, is available on the Intranet. Previously issued FIRs and attachments may be obtained from the LFC office in Room 416 of the State Capitol Building.

(Parenthesis ( ) Indicate Revenue Decreases)

Companion to SB-653

SOURCES OF INFORMATION

Taxation and Revenue Department (TRD)

SUMMARY

Senate Bill 654 amends the clean air act to prohibit smoking in the state capitol except in private offices. The bill also increases the cigarette tax by six cents per pack from 21 cents per pack to 27 cents per pack.

The bill would become effective July 1, 1999.

FISCAL IMPLICATIONS

The 6-cent cigarette tax would raise $5.4 million in revenue in FY 2000. $360 thousand of this would be from the cigarette inventory tax. The table at the top of the first page shows the distributions as they would occur under current law. However, Senate Bill 653, which is a companion bill and contingent upon the passage of this legislation, would provide a different distribution if both bills passed. That bill would distribute three cents to the general fund, two cents to the cancer center and one cent to the state department of education for smoking prevention and cessation programs. The distribution of the money proposed in that bill for FY 2000 are shown in the following table.

ADMINISTRATIVE IMPLICATIONS

TRD reports a minor administrative impact which could be absorbed with current resources.

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