OFFICE OF FISCAL ANALYSIS Legislative Office Building, Room 5200 Hartford, CT 06106 (860) 240-0200 http://www.cga.ct.gov/ofa sHB-6488 AN ACT CONCERNING CIGARETTES, TOBACCO PRODUCTS, ELECTRONIC NICOTINE DELIVERY SYSTEMS AND VAPOR PRODUCTS. Primary Analyst: CW 3/28/23 Contributing Analyst(s): RDP, ME, ES OFA Fiscal Note State Impact: Agency Affected Fund-Effect FY 24 $ FY 25 $ Resources of the General Fund GF - Revenue Loss 10.7 million 10.7 million Resources of the Tobacco Health Trust Fund Tobacco Health Trust Fund - Revenue Gain 10.7 million 10.7 million Note: GF=General Fund Municipal Impact: None Explanation The bill, which increases the annual Tobacco Settlement Fund transfer to the Tobacco and Health Trust Fund, results in (1) a General Fund revenue loss of $10.7 million and (2) a commensurate revenue gain to the Tobacco and Health Trust Fund annually beginning in FY 24. Section 2 requires the Mental Health and Addiction Services commissioner to convene a working group to evaluate license fees, penalties and taxes related to cigarettes, tobacco, and nicotine products, which results in no fiscal impact because the working group has the expertise to accomplish the requirements of the bill. The Out Years The annualized ongoing fiscal impact identified above would remain constant into the future.