FISCAL NOTE

House Bill 273 as substituted and reported by the Committee on Judiciary increases the legal minimum age for persons prohibited from possessing, transporting or purchasing tobacco products, electronic nicotine delivery systems, and alternative nicotine products from 19 years of age to 21 years of age, as currently provided for by federal law.

The bill also forbids retailers and manufacturers from sponsoring, marketing, advertising certain events or activities and prohibits the use of labeling or design that primarily appeals to persons under 21 years of age. The fine for violating these provisions is $100 for the first violation and $500 for each subsequent violation.

This bill will also increase the obligations of the Department of Revenue by an undetermined amount (1) to certify certain product related information from e-liquid manufacturers and manufacturers of alternative nicotine products, (2) to develop and maintain a directory of these certified manufacturers and their certified products, and (3) to adopt implementation and enforcement rules. This increase in obligations may be offset, wholly or in part, by the collection of an initial fee of $2,000 and an annual fee of $500 thereafter from each manufacturer certified by the Department. Any funds remaining after the payment of these expenses shall be distributed as follows: two-thirds to the State General Fund, one-sixth to the Alabama State Law Enforcement Agency, and one-sixth to the Alabama Alcoholic Beverage Control Board. This bill also establishes a $1,000 per day per product fine applicable to any manufacturer who offers products for sale that are not listed on the directory and a general fine of $500 for any other violation.

Also, this bill provides statutory authority to the Department of Mental Health to codify current practice ensuring the state is in compliance with federal reporting requirements related to the Federal Substance Abuse Prevention and Treatment Block Grant Program. Alabama has been awarded an average of $23 million from this program for the past three fiscal years.