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: Feb 29, 2024
BILL NUMBER: SB 149 BILL AMENDED: Feb 27, 2024
SUBJECT: Tobacco.
FIRST AUTHOR: Sen. Rogers BILL STATUS: 2
nd
Reading - 2
nd
House
FIRST SPONSOR: Rep. King
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
XDEDICATED
FEDERAL
Summary of Legislation: Tobacco Sales Certificates: This bill prohibits a retail establishment from holding
more than one active tobacco sales certificate (certificate) for a retail location at any time. It also prohibits
the Alcohol and Tobacco Commission (ATC) from issuing a certificate to certain persons.
It 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 90 days after the sale
or transfer of the ownership of the business.
It specifies that an employee of a certificate holder (employee) must hold a valid: (1) driver's license issued
by the state of Indiana or another state; or (2) identification card issued by the state of Indiana, another state,
or the United States; to sell tobacco products.
The bill requires an employee to have the driver's license, identification card, or a copy of these documents
readily available to show an excise officer or law enforcement when selling tobacco products. It allows an
employee who is unable to show these documents to provide certain evidence within five days. It permits the
ATC to impose a civil penalty on the certificate holder if an employee fails to timely produce this evidence.
Penalty Provisions: The bill provides that a person who recklessly, knowingly, or intentionally sells a
tobacco product without a valid certificate commits a Class C infraction.
The bill also makes it a Class C misdemeanor for a person to operate a tobacco and vaping business within
1,000 feet of school property. It specifies exceptions.
SB 149 1 Effective Date: July 1, 2024.
Explanation of State Expenditures: Tobacco Sales Certificates: The ATC would experience an increase
in workload to verify that an applicant for a tobacco sales certificate is not a person who is restricted from
holding a certificate. The bill’s requirements should be able to be implemented within existing staffing and
resource levels. [The ATC is primarily funded by appropriations from the Enforcement and Administration
Fund.]
Explanation of State Revenues: Tobacco Sales Certificates: The bill imposes restrictions on who qualifies
for a tobacco sales certificate. To the extent this provision reduces the number of applications for tobacco
sales certificates, revenue to the Enforcement and Administration Fund could decrease. [The fee for a
tobacco sales certificate is $200 for each retail location, paid every three years.]
The bill also allows the ATC to impose a civil penalty of up to $1,000 on a certificate holder if an employee
is unable to show a valid driver’s license, government issued identification card, or a copy of either within
five days that an excise officer or law enforcement requests it. Civil penalties imposed by the ATC are
deposited in the Enforcement and Administration Fund.
Penalty Provisions: The bill provides that a person that operates a tobacco and vaping business within 1,000
feet of school property, which is defined in IC 35-31.5-2-285, commits a Class C misdemeanor. (Under
current law, it is a Class C misdemeanor for a tobacco and vaping business to operate within 1,000 feet of
a building used by a public or private elementary or secondary school for instructional purposes.) The bill
also makes it a Class C infraction for a person to recklessly, knowingly, or intentionally sell a tobacco
product without a valid tobacco sales certificate.
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.
SB 149 2 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.
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