FN-D1I2HT-2 Page 1 FISCAL NOTE House Bill 319 Committee: Judiciary Sponsor: Representative Barbara Drummond Analyst: Tiffany Weaver Date: 05/04/2023 House Bill 319 as reported by the Committee on Judiciary would increase the obligations of the Alcoholic Beverage Control (ABC) Board by: (1) a board-estimated minimum of $805,000 annually for personnel and other costs associated with inspection of electronic nicotine delivery systems, e-liquids, and alternative nicotine products at permitted locations and to seize contraband, and (2) an undetermined amount for increased secured storage space for seized contraband. However, these obligations would be offset, in whole or in part, by any receipts from new and increased fines, penalties, and fees levied by this bill, which would be deposited into the Tobacco Licensing and Compliance Fund, created by this bill for such operational costs and prevention education. This bill would also allow the ABC Board to charge a fee to destroy electronic nicotine delivery systems that are seized, which will cover the increased obligations to destroy these systems. This bill would also change the distribution of the e-liquid manufacturer's fee, after payment of expenses to the Department of Revenue, as follows: Distribution Current This Bill State General Fund 66.6% 50% Alabama State Law Enforcement Agency 16.66% 25% ABC Board /Tobacco Licensing and Compliance Fund 16.66% 25% This bill will also increase the obligations of the State Board of Education by an undetermined amount to adopt a model policy to establish a vaping awareness, education, and prevention program to use in K-12 schools. However, these obligations would be offset, in whole or in part, FN-D1I2HT-2 Page 2 by the collection of additional fines levied by this bill, ranging from $500 to $1000, that would be deposited into the Education Trust Fund to the credit of the State Board of Education to be used for this program. This bill could also increase receipts to the State General Fund and municipal general funds from fines; increase receipts to the State General Fund, county general funds, municipal general funds, and other funds to which court costs are deposited; and could increase the obligations of the State General Fund, district attorneys, and the local jails by an amount dependent upon the number of persons charged with and convicted of the offenses provided by this bill and the penalties given.