FISCAL NOTE
Date Requested: January 22, 2024
Time Requested: 03:28 PM |
| Agency: |
Human Services, WV Department of |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2489 |
Introduced |
HB4449 |
|
|---|
| 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 change the West Virginia law regarding tobacco sales to the minimum age of 21 to align with federal law.
The Department anticipates no negative 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, a penalty of $863,669 (or 10%) of West Virginia's current SABG Funding of $8,636,687 could be applied.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2024
Increase/Decrease
(use"-") |
2025
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
The Department's Bureau for Behavioral Health (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 the full 10% penalty is implemented; however, at a minimum it will create issues with compliance that would need to be resolved through administrative actions which could lead to the full or partial penalty to be enacted against the Block Grant.
Person submitting Fiscal Note: Cynthia A. Persily, Cabinet Secretary
Email Address: dhhrbudgetoffice@wv.gov