LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
200 W. Washington St., Suite 301
Indianapolis, IN 46204
(317) 233-0696
iga.in.gov
FISCAL IMPACT STATEMENT
LS 6715 NOTE PREPARED: Dec 27, 2023
BILL NUMBER: SB 149 BILL AMENDED:
SUBJECT: Tobacco Sales.
FIRST AUTHOR: Sen. Rogers BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
XDEDICATED
FEDERAL
Summary of Legislation: Tobacco Sales Certificates: This bill provides that a tobacco sales certificate
(certificate) applied for after June 30, 2024: (1) has an application fee of not more than $100; and (2) is valid
for a term of one year. It also prohibits the Alcohol and Tobacco Commission (ATC) from issuing a
certificate to certain persons.
The bill provides that, if a majority interest in a business that holds a certificate is sold or transferred: (1) the
new ownership must apply for a new certificate; and (2) the certificate and permit number held by the
previous ownership are void as of the date of the sale or transfer of the interest in the business.
It requires an employee of a certificate holder to: (1) hold a valid Indiana driver's license or identification
card to sell tobacco products; and (2) have the employee's driver's license or identification card in the
employee's possession when selling tobacco products.
Penalty Provisions: The bill provides that a minor who knowingly or intentionally falsely represents the
minor's age for the purpose of purchasing or attempting to purchase a tobacco product commits a Class C
misdemeanor. It also provides that a person who recklessly, knowingly, or intentionally sells a tobacco
product without a valid certificate commits a Class C infraction.
The bill provides that the tobacco sales certificate of a tobacco and vaping business that illegally operates
within 1,000 feet of an elementary or secondary school is permanently revoked.
Effective Date: July 1, 2024.
SB 149 1 Explanation of State Expenditures: Tobacco Sales Certificates: The ATC would experience an increase
in workload and expenses to implement the bill’s provisions. Beginning in FY 2026, the ATC would be
required to process a significantly higher volume of applications for tobacco sales certificates. The ATC
would also need to verify that an applicant for a tobacco sales certificate is not a person who is restricted
from holding a certificate. The increase in costs would likely be offset by increased revenue from application
fees beginning in FY 2027. The ATC is primarily funded by appropriations from the Enforcement and
Administration Fund.
Explanation of State Revenues: Tobacco Sales Certificates: Beginning in FY 2025, the bill reduces the
application fee for a tobacco sales certificate to $100 and requires certificates to be renewed annually. Under
current law, the application fee is $200, and certificates expire every three years. These provisions are
estimated to reduce revenue by approximately $238,000 in FY 2025 and $62,000 in FY 2026. After FY 2026,
when all certificate holders are on the one-year renewal cycle, revenue would likely begin to increase. The
estimated increase in FY 2027 is $121,000. However, the revenue impact could be lower to the extent the
bill’s restrictions on who qualifies for a certificate reduces the number of applicants. Revenue is deposited
in the Enforcement and Administration Fund.
In FY 2021 through FY 2023, a total of $1.88 M was collected from application fees for tobacco sales
certificates. Due to the three-year renewal cycle, there is not a consistent number of applications from year
to year. The estimated revenue impact is based on trends in revenue over the last 15 years.
Penalty Provisions: If additional court cases occur and fines are collected, revenue to both the Common
School Fund (from fines) and the state General Fund (from court fees) would increase. The maximum fine
for a Class C misdemeanor is $500. The maximum judgment for a Class C infraction is $500, which would
be deposited in the state General Fund. The total fee revenue per case would range between $113 and $135
for a Class C misdemeanor and between $85.50 and $103 for a Class C infraction. The amount of court fees
deposited will vary depending on whether the case is filed in a court of record or a municipal court. The
following linked document describes the fees and distribution of the revenue: Court fees imposed in criminal,
juvenile, and civil violation cases.
Explanation of Local Expenditures: Penalty Provisions: A Class C misdemeanor is punishable by up to
60 days in jail.
Explanation of Local Revenues: Penalty Provisions: If additional court actions occur and a guilty verdict
or judgment is entered, more revenue will be collected by certain local units. If the case for a Class C
misdemeanor is filed in a court of record, the county general fund will receive $47.40, and qualifying
municipalities will receive a share of $3.60. If the case is filed in a municipal court, the county receives $30,
and the municipality will receive $46.
If the case for a Class C infraction is filed in a court of record, the county will receive $33.90, and qualifying
municipalities will receive a share of $2.10. If the case is filed in a municipal court, the county receives $20,
and the municipality will receive $33.50.
The following linked document describes the fees and distribution of the revenue: Court fees imposed in
criminal, juvenile, and civil violation cases.
State Agencies Affected: Alcohol and Tobacco Commission.
SB 149 2 Local Agencies Affected: Trial courts, local law enforcement agencies.
Information Sources: Legislative Services Agency, Indiana Handbook of Taxes, Revenues, and
Appropriations, FY 2023. Indiana Supreme Court, Indiana Trial Court Fee Manual.
Fiscal Analyst: Lauren Tanselle, 317-232-9586.
SB 149 3