FISCAL NOTE
Date Requested: March 31, 2025
Time Requested: 10:23 AM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2602 |
Introduced |
SB816 |
|
|---|
| CBD Subject: |
Health |
|---|
|
FUND(S):
General Revenue Fund
Sources of Revenue:
General Fund
Legislation creates:
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
Summarize in a clear and concise manner what impact this measure will have on costs and revenues of state government.
The stated purpose of this bill is to prohibit sales of electronic smoking devices that have not been approved by the United States Food and Drug Administration.
Per our interpretation, the bill would amend W.Va. Code §§16-9A-2, 3, and 7 and create new sections designated W.Va. Code §§16-9A-12 through 16. The bill adds definitions for “Authorized electronic smoking device”, “Retailer”, and “Tobacco noncompliance database and reporting system” and expands the provisions related to penalties for sale of tobacco products to persons younger than 21 years of age.
The Alcohol Beverage Control Administration (ABCA) is added as an enforcement entity and the Bureau for Behavioral Health is removed. All citations are to be reported to the ABCA, and the ABCA will prepare and submit to the Governor on the last day of September each year, a report of the enforcement and compliance activities undertaken. Beginning September 1, 2025, the Alcohol Beverage Control Commissioner shall maintain and make publicly available on the ABCA’s website a “directory” that lists all electronic smoking device manufacturers and electronic smoking devices for which certification forms have been submitted.
The Secretary of State is responsible for developing a list of retailers that sell electronic smoking devices and providing the list to the Alcohol Beverage Control Commissioner. The Alcohol Beverage Control Commissioner is responsible for developing and maintaining a list of authorized electronic smoking devices, a list of retailers of authorized electronic smoking devices, and a coordinated tobacco noncompliance database.
Additional sections of the bill outline restrictions on manufacturer, wholesaler, and retailer sales and distribution of electronic smoking devices along with fees for product certifications and penalties for citations. All fees and penalties are to be used for administration and enforcement.
According to our interpretation, there would be no impact to General Revenue Fund collections associated with the passage of this bill. There would be no administrative costs incurred by the State Tax Department.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2025
Increase/Decrease
(use"-") |
2026
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
0 |
0 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
0 |
0 |
Explanation of above estimates (including long-range effect):
Please explain increases and decreases in personal services, current expenses, repairs and alterations, assets, other costs and revenues, including assumptions and data sources and delineation between start-up and ongoing costs. Please also include a long-range schedule of costs and revenues if fiscal impact is expected to vary in future years.
Per our interpretation, the bill would amend W.Va. Code §§16-9A-2, 3, and 7 and create new sections designated W.Va. Code §§16-9A-12 through 16. The bill adds definitions for “Authorized electronic smoking device”, “Retailer”, and “Tobacco noncompliance database and reporting system” and expands the provisions related to penalties for sale of tobacco products to persons younger than 21 years of age.
The Alcohol Beverage Control Administration (ABCA) is added as an enforcement entity and the Bureau for Behavioral Health is removed. All citations are to be reported to the ABCA, and the ABCA will prepare and submit to the Governor on the last day of September each year, a report of the enforcement and compliance activities undertaken. Beginning September 1, 2025, the Alcohol Beverage Control Commissioner shall maintain and make publicly available on the ABCA’s website a “directory” that lists all electronic smoking device manufacturers and electronic smoking devices for which certification forms have been submitted.
The Secretary of State is responsible for developing a list of retailers that sell electronic smoking devices and providing the list to the Alcohol Beverage Control Commissioner. The Alcohol Beverage Control Commissioner is responsible for developing and maintaining a list of authorized electronic smoking devices, a list of retailers of authorized electronic smoking devices, and a coordinated tobacco noncompliance database.
Additional sections of the bill outline restrictions on manufacturer, wholesaler, and retailer sales and distribution of electronic smoking devices along with fees for product certifications and penalties for citations. All fees and penalties are to be used for administration and enforcement.
According to our interpretation, there would be no impact to General Revenue Fund collections associated with the passage of this bill. There would be no administrative costs incurred by the State Tax Department.
Memorandum
Please identify any areas of vagueness, technical defects, reasons a bill would not have a fiscal impact, and/or any special issues not captured elsewhere on this form.
The stated purpose of this bill is to prohibit sales of electronic smoking devices that have not been approved by the United States Food and Drug Administration.
The sale of electronic smoking devices that have not been approved by the United States Food and Drug Administration are already prohibited. There are concerns regarding the language and administrative requirements.
No portion of the bill relates to taxation or the duties of the West Virginia Tax Division. Administrative duties to carry out the changes in this bill are designated to the West Virginia Secretary of State’s Office and the West Virginia Alcohol Beverage Control Administration.
There are issues with the organization of section 9A-2. Some portions are designated an alphabetical or numerical citation while others are not. There is no specified effective date for the amendments to this section or sections 9A-12 and 9A-16. Other sections give an effective date of September 1, 2025.
Person submitting Fiscal Note: Mark Muchow
Email Address: radfiscal@wv.gov