FISCAL NOTE
Date Requested: January 18, 2023
Time Requested: 08:38 AM |
| Agency: |
Health and Human Resources, WV Department of |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2268 |
Introduced |
SB266 |
|
|---|
| CBD Subject: |
Health |
|---|
|
FUND(S):
8793 - Substance Abuse Prevention and Treatment Fund
Sources of Revenue:
Other Fund Federal
Legislation creates:
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The purpose of this bill is to increase the age for the purchase of tobacco products, tobacco-derived products, and alternative nicotine products from 18 to 21. This bill also changes the way businesses are fined for the underage sale of tobacco products, tobacco-derived products, or alternative nicotine products. This bill further eliminates tobacco use in schools, prohibits the use of lit tobacco products in a motor vehicle while individuals 16 years of age or under are present and designates prohibited areas of regulation of tobacco, tobacco-derived products, and alternative nicotine products for political subdivisions.
The Department anticipates no fiscal impact related to the passage of this legislation.
The passage of the bill complies with Federal PL 116-94, signed on December 20, 2019, which increased the minimum age for tobacco sales from 18 to 21. PL 116-94 also amends section 906(d) of the Federal Food, Drug, and Cosmetic Act of 1938, the General Provisions Respecting Control of Tobacco Products, raising the federal minimum age for sale of tobacco products from 18 to 21
years and instructing the Food and Drug Administration to make conforming changes to regulations about the sale and distribution of tobacco products to carry out the amendments made by PL 116-94.
This federal law also provides for a penalty of up to 10% of the States Substance Abuse Block Grant (SABG) as a result of failure to comply with Synar Regulations. If West Virginia is found to be out of compliance, we could be penalized $850,395 which is 10% of West Virginia's current SABG Funding of $8,503,953.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2023
Increase/Decrease
(use"-") |
2024
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.
Memorandum
This BBH believes this bill would have the following overall impacts:
1. Alignment with national law and the majority of states.
2. Compliance with SAMHSA Substance Abuse Prevention and Treatment Block Grant (SABG) Synar Program requirements. A condition of the SABG is for states to enforce underage access to reduce the illegal sale of tobacco products to individuals under the age of 21.
3. Reduction in youth access to vape products. The BBH's Synar and FDA Tobacco Compliance programs are confronted by concerned law enforcement and community members regularly about the increasing number of vape shops that have cropped up across the state.
It should be noted that failure to enact this bill will not guarantee this 10% penalty is implemented; however, it will create issues with compliance that would need to be resolved through administrative actions which could lead to the penalty to be enacted against the Block Grant.
Person submitting Fiscal Note: Jeffrey H. Coben
Email Address: dhhrsecretary@wv.gov