This Fiscal Note is not an official copy and should not be quoted or cited.
Fiscal Note - SB 0831 - Regulating Sale of Tobacco Products to Minors
L.R. NO. 2844-07
BILL NO. Perfected SS for SCS for SB 831
SUBJECT: Children & Minors: Tobacco Sales
TYPE: Original
DATE: April 30, 1996
FISCAL SUMMARY
ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 1997 FY 1998 FY 1999
General Revenue $444,269 ($131,374) ($141,865)
Total Estimated
Net Effect on All
State Funds $444,269 ($131,374) ($141,865)
ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 1997 FY 1998 FY 1999
None $0 $0 $0
Total Estimated
Net Effect on All
Federal Funds $0 $0 $0
ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 1997 FY 1998 FY 1999
Local Government $0 $20,000 $20,000
FISCAL ANALYSIS
ASSUMPTION
Officials of the Department of Revenue (DOR) and Missouri Sheriff's
Association assume this proposal would not fiscally impact their agencies.
Officials of the Office of the State Courts Administrator (CTS) stated that
while some additional work reporting convictions of violations would be
expected, they would not anticipate a significant change in the number of
cases filed in the courts and would therefore not expect this legislation to
increase the budget of the judiciary.
Officials of the Department of Mental Health (DMH) did not respond to our
request for information. In a previous response DMH assumed that this
proposal would have no fiscal impact to their agency. DMH officials also
noted that this proposal addresses the annual report required by Section 1926
of the federal Public Health Service Act, 42 U.S.C. 300X-26 which contains
the Substance Abuse Prevention and Treatment Block Grant from which the
division receives much of its funding. The block grant requires evidence of
enforcement laws prohibiting the sale of tobacco products to minors. DMH
officials noted that the Division of Alcohol and Drug Abuse is developing
programs to provide this enforcement and to establish compliance with block
grant requirements.
Officials of the Department of Public Safety (DPS) - Division of Liquor
Control (DLS) assume:
STATE REVENUE SOURCES
23,500 Tobacco Outlets and Tobacco Vending Machines x $25.00 = $587,500
annually
FY97 would be $587,500 collected on or before July 1, 1997 pursuant to
Section 311.903.
STATE EXPENDITURES
Officials assume an additional 20 FTE, plus related equipment and expenses,
would be required to implement the additional duties outlined in this
proposal. The 20 FTE would include 1 Tobacco Program Manager ($42,025), 6
Assistant District Supervisors ($36,864), 6 Agents ($28,200), 3 Clerks III
($18,732), 1 Clerk Services Supervisor ($24,552), 1 Computer Information
Specialist II ($28,776), 1 Accountant I ($23,616), and 1 Public Information
Officer ($35,340).
Equipment would include:
a) $44,200 for office furniture for 8 FTE
b) $29,680 for Personal Computers & Software for 8 FTE
c) $6,423 for 3 Laser Printers
d) $3,000 for 12 typewriters
e) $6,955 for 13 radio units
f) $197,733 for an Optical Disk System with Data Processing Equipment
and support enhancements/AS 400 Upgrade
Expenses would include:
a) $18,416 for rent for 8 FTE
b) $100,800 for travel for 6 Assistant District Supervisors, 6 Agents,
1 Public Information Officer, and 1 Program Manager
c) $56,000 for On-going Enforcement Training for 12 new Enforcement
Personnel
d) $6,000 for office supplies for 20 new FTE
e) $50,000 for postage and printing
f) $1,700 for travel/training for Computer Information Specialist II
Total cost of the proposal for FY 97 would be $1,162,026; for FY 98
$1,036,680; and for FY 99 $1,063,654.
Oversight assumed that the duties outlined in this proposal could be
implemented with 17 additional FTE, plus related equipment and expenses. This
proposal is similar to one from last session in which Liquor Control
requested Clerk III positions rather than Clerk Typist III positions and a
Programmer Analyst rather than a computer Information Specialist II.
Oversight has reflected the position titles and salaries assumed by Liquor
Control last session, adjusted for inflation. Oversight assumes that since a
license is not required until July 1, 1997, that 7 FTE would be hired for the
last 3 months of FY 97 and the other 10 FTE would not be hired until FY 98.
In FY 97, One Program Manager ($42,025) would supervise all aspects required
to implement and operate the Division of Alcohol and Tobacco Control. Three
Clerk Typist III's ($18,732) would handle the administrative duties involved
with the processing of license applications. One Clerk Services Supervisor
($24,552) would supervise the processing of all license applications, and any
other required administrative duties. One Programmer Analyst ($24,812) would
be responsible for routine data processing, and for the administration of the
computer system. One Public Information Officer ($35,340) would plan and
implement tobacco law education and training for the general public and
division personnel. Equipment would include office furniture and personal
computers for 7 FTE. Expenses would include postage, printing, and office
supplies.
In FY 98, Nine Agents ($24,608) would be responsible for ensuring compliance
with Missouri Statutes relating to tobacco. One Special Agent ($30,851)
would uphold and enforce all laws enacted in this legislation in accordance
with the Constitution of the State of Missouri. Equipment would include
radios and typewriters. Expenses would include travel, training, and office
supplies.
Oversight has not included costs for an Optical Disk System or for additional
D.P. Equipment and an AS 400 Upgrade ($197,733) since it is assumed the
Division of Liquor Control could use an existing method of record retention.
Oversight has decreased postage and printing costs to $21,400 in FY 98, and
$22,042 in FY 99, assuming that $50,000 will not be required after the
initial startup costs in the first year.
LOCAL IMPACT
Funds from fines are to be distributed pursuant to the provisions of Section
7 of Article IX of the Missouri Constitution (School Districts). It is
estimated that the courts will collect $20,000 in fines annually beginning
with FY 98.
FISCAL IMPACT - State Government FY 1997 FY 1998 FY 1999
(3 Mo.)
GENERAL REVENUE FUND
Income-Division of Liquor Control
License Fees $587,500 $587,500 $587,500
Costs-Division of Liquor Control
Personal Service (7, 17, 17 FTE) ($46,875) ($457,282) ($468,714)
Fringe Benefits (14,409) (140,569) (144,083)
Expense and Equipment (81,947) (121,023) (116,568)
Total Costs-Division of Liquor Control ($143,231) ($718,874) ($729,365)
ESTIMATED NET EFFECT ON
GENERAL REVENUE FUND $444,269 ($131,374) ($141,865)
FISCAL IMPACT - Local Government FY 1997 FY 1998 FY 1999
Income-School Districts
Fines $0 $20,000 $20,000
DESCRIPTION
This legislation would establish the Division of Alcohol and Tobacco Control
within the Department of Public Safety. The Director of the Division would
assume the same powers as the Supervisor of Liquor Control as provided in
sections 650.005, 311.610 to 311.670 and 312.010, RSMo. It would vest the
Division with the power to substantially regulate the sale of tobacco
products to persons less than 18 years of age.
It would require the Division to operate a licensing agency and to establish
the license fee for tobacco outlets and vending machines at $25 annually
beginning July 1, 1997. It would authorize the Division of Alcohol and
Tobacco Control to conduct random, unannounced inspections using a person
under the age of eighteen to test compliance.
This proposal would require the retailer, when selling tobacco products or
distributing samples, to require proof of age from a prospective purchaser if
an ordinary person would conclude that such purchaser could be under the age
of eighteen. It would establish fines of $1,000 or less for violations of
the tobacco laws. It would establish a fine for the violation of a person
under eighteen purchasing or receiving a tobacco product.
It would require every retailer to notify each individual employed by that
person as a retail sales clerk that state law prohibits the sale or
distribution of tobacco products to any person under eighteen years of age.
The employee would have to sign a notice which verifies that they have been
informed of the requirement to not sell to individuals under the age of
eighteen and to demand proof of age from any purchaser or recipient if the
employee has reason to believe that they are under eighteen years of age.
The employer would be required to retain the signed form until one hundred
twenty days after the individual had left the employer's employ. Any
employer failing to comply with this requirement would be subject to a fine
of $25 for the first offense and $50 for each succeeding violation of this
provision within a two- year period.
This legislation is federally mandated in accordance with Section 1926 (Synar
Amendment) of the Public Health Service Act. This legislation would not
duplicate any other program and would not require additional capital
improvements.
Oversight assumes that the Department of Public Safety, Division of Liquor
Control would locate new FTE in existing facilities, and therefore has not
included additional rental costs as a result of this proposal.
SOURCES OF INFORMATION
Department of Revenue
State Courts Administrator
Department of Public Safety - Division of Liquor Control
Missouri Sheriff's Association
NOT RESPONDING: Department of Mental Health and Missouri Police Chief's
Association