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FISCAL NOTE
House Bill 65
Committee: Judiciary Sponsor: Representative Barbara Drummond
Analyst: Tiffany Weaver Date: 02/19/2024
House Bill 65 as introduced 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: (1) an estimated minimum of $900,000
annually in new receipts to the Tobacco Licensing and Compliance Fund, created by this bill for
operational costs and prevention education, from the collection of a $50 one-time filing fee,
$150 annual permit fee, and a $50 transfer fee, as provided by this bill, for the approximately
8,000 distributors currently permitted by the ABC Board; and (2) any receipts from new and
increased fines, penalties, and fees levied by this bill.
This bill would also increase receipts to the Public Safety Fund by an estimated minimum of
$300,000 annually from the new permit fees provided by this bill. 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 exising e-liquid/alternative nicotine product
manufacturer fees, 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%
For Fiscal Year 2023, $24,500 was collected from these fees.
This bill will also increase the obligations of the State Board of Education by an undetermined FN-TY4A959-1
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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,
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.