Texas House Bill HB2548

Texas 2011 - 82nd Regular

• Introduced: 3/8/11
• Refer: 3/15/11

Caption

Relating to the imposition of a fee on the sale of cigarettes and cigarette tobacco products manufactured by certain companies; providing penalties.

Impact

If enacted, HB2548 will amend the Health and Safety Code to create a new revenue stream targeted specifically at nonsettling manufacturers. This legislative change is intended to bring financial relief to the state in terms of health-related expenses attributed to smoking while also protecting the integrity of existing tobacco settlement agreements. The bill establishes a structure for the collection of these fees while ensuring that sales of nonsettling manufacturer products are closely monitored and subject to compliance requirements.

Summary

House Bill 2548 seeks to impose a fee on cigarettes and cigarette tobacco products manufactured by nonsettling manufacturers—those not participating in the tobacco settlement agreement. The legislation aims to recover healthcare costs incurred by the state due to smoking and to prevent these manufacturers from undermining efforts to reduce underage smoking by offering products at lower prices. The proceeds from the fees collected will be allocated to the property tax relief fund, thus potentially benefiting local taxpayers.

Sentiment

The sentiment surrounding the bill is anticipated to be mixed. Proponents, often health advocates and legislators concerned about public health, view the bill as a necessary step to protect youth from tobacco and hold nonsettling manufacturers accountable for their contributions to health crises. Conversely, opponents might argue that this type of taxation could disproportionately affect consumers and lead to a decrease in sales within the state, thus having economic implications.

Contention

Key points of contention may arise regarding the fairness of imposing a fee solely on nonsettling manufacturers, which some might perceive as discriminatory compared to those who comply with the tobacco settlement. Additionally, questions may be raised about the potential for increased illegal tobacco sales as consumers seek cheaper alternatives. The balance between health responsibilities and economic impact will be a central focus of discussions surrounding this bill.