NOTE:  As provided in LFC policy, this report is intended only 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 for other purposes.

 

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F I S C A L   I M P A C T   R E P O R T

 

 

 

SPONSOR:

Beam

 

DATE TYPED:

03/21/03

 

HB

136/aSCORC

 

SHORT TITLE:

Prevent Youth Access To Tobacco

 

SB

 

 

 

ANALYST:

Martinez/Padilla

 

APPROPRIATION

 

Appropriation Contained

Estimated Additional Impact

Recurring

or Non-Rec

Fund

Affected

FY03

FY04

FY03

FY04

 

 

 

 

 

NFI

 

 

(Parenthesis ( ) Indicate Expenditure Decreases)

 

SOURCES OF INFORMATION

 

LFC Files

 

Responses Received From

Taxation and Revenue Department (TRD)

 

No Responses Received From

Regulation and Licensing Department (RLD)

 

SUMMARY

 

     Synopsis of SCORC Amendment

 

The Senate Corporations and Transportation Committee amendment adds another exception under which tobacco products can be sold via vending machine.  Under the SCORC amendment, tobacco products could be sold via vending machine in locations in which the vending machine is equipped with a remote-controlled lock-out device.

 

     Synopsis of Original Bill

 

House Bill 136 amends Section 30-49-7 to restrict the sale of tobacco products to a direct, face-to-face exchange between the customer and seller.  The bill leaves two exceptions for vending machines sales that currently exist in statute.  However, it deletes the existing statutory provision that allows tobacco vending machines in locations where alcoholic beverages are sold for consumption on the premises.  The bill also prohibits the sale of tobacco products with a self-service display where the public has access to the products without the assistance of the seller.  

Finally, the bill adds a section that states written, telephonic, and electronic sales are not subject to the provisions of Section 30-49-7.

 

     Significant Issues

 

This bill may reduce vending machine related tobacco consumption.  The impact on total cigarette consumption is indeterminate.  This legislation could serve as a deterrent to the unlawful sale of tobacco products to minors.   

 

The sale of tobacco products on tribal lands may not apply.

 

POSSIBLE QUESTIONS

 

  1. How will tobacco distribution companies be affected?

 

  1. What is the financial impact upon retail locations?

 

  1. Is there substantial evidence that suggests large numbers of minors are purchasing tobacco products from vending machines?

 

MM/njw:yr