COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:3824H.01I Bill No.:HB 2211 Subject:Tobacco Products; Department of Public Safety; Merchandising Practices;
Business and Commerce
Type:Original Date:February 14, 2024Bill Summary:This proposal establishes provisions relating to the creation of a vapor
product directory.
FISCAL SUMMARY
ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2025FY 2026FY 2027General RevenueLess than ($95,440) Less than ($76,305)Less than ($77,520)Total Estimated Net
Effect on General
RevenueLess than ($95,440) Less than ($76,305)Less than ($77,520)
ESTIMATED NET EFFECT ON OTHER STATE FUNDSFUND AFFECTEDFY 2025FY 2026FY 2027Total Estimated Net
Effect on Other State
Funds $0$0$0
Numbers within parentheses: () indicate costs or losses. L.R. No. 3824H.01I
Bill No. HB 2211
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ESTIMATED NET EFFECT ON FEDERAL FUNDSFUND AFFECTEDFY 2025FY 2026FY 2027Total Estimated Net
Effect on All Federal
Funds $0$0$0
ESTIMATED NET EFFECT ON FULL TIME EQUIVALENT (FTE)FUND AFFECTEDFY 2025FY 2026FY 2027General Revenue
Fund 1 FTE1 FTE1 FTE
Total Estimated Net
Effect on FTE1 FTE1 FTE1 FTE
☐ Estimated Net Effect (expenditures or reduced revenues) expected to exceed $250,000 in any
of the three fiscal years after implementation of the act or at full implementation of the act.
☐ Estimated Net Effect (savings or increased revenues) expected to exceed $250,000 in any of
the three fiscal years after implementation of the act or at full implementation of the act.
ESTIMATED NET EFFECT ON LOCAL FUNDSFUND AFFECTEDFY 2025FY 2026FY 2027Local Government$0$0$0 L.R. No. 3824H.01I
Bill No. HB 2211
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FISCAL ANALYSIS
ASSUMPTION
Section 196.1202 - Vapor Products Directory
Officials from the Attorney General’s Office did not respond to Oversight’s request for fiscal
impact for this proposal.
Officials from the Office of Administration - Budget and Planning (B&P) note Section
196.1202.2 requires every vapor product manufacturer conducting sales of their vapor product in
Missouri to certify to the Department of Revenue that their product meets certain United States
Food and Drug Administration requirements. The manufacturer must submit this certification for
each vapor product sold in the state on an annual basis. Per the legislation, the manufacturer must
submit a payment of two-hundred dollars for each annual vapor product certification submitted
to the Department of Revenue. These payments could increase total state revenue by an unknown
amount. B&P defers to DOR for specific estimates.
Section 196.1202.10 outlines penalties for manufacturers, wholesalers, distributors, or retailers
who sell or offer for sale a vapor product in Missouri that is not included in the Department of
Revenue's vapor product directory. Violators of this section shall be subject to a civil penalty of
five-hundred dollars per day for each product offered for sale in violation of this section until the
offending product is removed from the market or until the offending product is properly listed in
the Department of Revenue's directory. In so far as penalty payments are deposited into the state
treasury, total state revenue may increase by an unknown amount. B&P defers to DOR for
specific estimates.
Section 196.1202.10 also states any manufacturer of vapor products that falsely represents any of
the information in their certifications submitted to the Department of Revenue shall be guilty of a
class C misdemeanor for each false representation. This legislation creates a new crime in which
fines can be imposed as a punishment. In so far as such fines are deposited into the state treasury,
these fines will impact total state revenue.
Officials from the Department of Revenue (DOR) note starting January 1, 2025, this requires
all manufacturers of vapor products wanting to sell any of those products in Missouri to be
registered with DOR by filing an annual certification form with DOR. Those manufacturers
must report or supply:
product.
L.R. No. 3824H.01I
Bill No. HB 2211
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Each year thereafter they must refile the certification form and any time they change their vapor
products or bring new products to market they must update their certification.
Starting June 1, 2025, DOR is required to maintain a publicly available vapor directory website
with all this information on it. No retailer in the state is allowed to sell a product that is not listed
in the vapor directory. Penalties can be assessed for selling a product not listed.
It should be noted that due to the Tobacco Master Settlement Agreement, DOR established a MO
Tobacco Directory for all licensed manufacturers of cigarettes and OTP products. This directory
is free for the participants to use. Due to the rules regarding cigarettes and OTP being different
than vapor products DOR believes 2 separate databases is best. The cost of a new system is
estimated at $20,000.
This proposal will require the need for at least one (1) FTE Associate Customer Service
Representatives ($35,880). Additional, FTE may be needed based on the volume of certification
forms filed annually. It will also require notification being sent to the manufacturers and vendors
alerting them of the new reporting requirements. This is estimated to cost $10,000.
DOR notes this proposal requires the payment of a $200 fee per product. This proposal also says
the fees are to be used for the administration of this proposal. However, this proposal did not
specify a fund for the deposit of the fees. DOR will assume for fiscal note purposes only, that
the fees are to be deposited into general revenue. Additionally, DOR will show all
administrative costs as being paid by general revenue.
Oversight does not have any information to the contrary. Therefore, Oversight will show the
FTE as assumed by the DOR. Oversight will reflect the 1 FTE to the General Revenue Fund.
Oversight notes this proposal provides a $200 annual fee per product for manufacturers to
certify their authorization to market their vapor products from the FDA. Oversight assumes this
provision will result in an unknown increase in general revenue.
Oversight notes this proposal provides various penalties for manufacturers who violate the
proposed provisions.
Oversight notes as of January 2024, the FDA authorized 23 e-cigarette products between three
manufacturers. Oversight does not anticipate the fiscal impact to reach the $250,000 threshold.
Officials from the Department of Corrections note misdemeanors fall outside the purview of
the Department of Corrections, this legislation will have no impact on the department. Oversight
does not have any information to the contrary. Therefore, Oversight will reflect a zero impact in
the fiscal note. L.R. No. 3824H.01I
Bill No. HB 2211
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Rule Promulgation
Officials from the Joint Committee on Administrative Rules assume this proposal is not
anticipated to cause a fiscal impact beyond its current appropriation.
Officials from the Office of the Secretary of State (SOS) note many bills considered by the
General Assembly include provisions allowing or requiring agencies to submit rules and
regulations to implement the act. The SOS is provided with core funding to handle a certain
amount of normal activity resulting from each year's legislative session. The fiscal impact for
this fiscal note to the SOS for Administrative Rules is less than $5,000. The SOS recognizes that
this is a small amount and does not expect that additional funding would be required to meet
these costs. However, the SOS also recognizes that many such bills may be passed by the
General Assembly in a given year and that collectively the costs may be in excess of what the
office can sustain with its core budget. Therefore, the SOS reserves the right to request funding
for the cost of supporting administrative rules requirements should the need arise based on a
review of the finally approved bills signed by the governor.
Officials from the Department of Public Safety - Alcohol and Tobacco Control assume the
proposal will have no fiscal impact on their organization. Oversight does not have any
information to the contrary. Therefore, Oversight will reflect a zero impact in the fiscal note.
FISCAL IMPACT – State GovernmentFY 2025
(10 Mo.)
FY 2026FY 2027GENERAL REVENUERevenue Gain - §196.1202.4 (2) -
Collection of annual vapor product
certification feeUnknownUnknownUnknown
Revenue Gain - §196.1202 - Collection
of vapor product directory penalties$0 or Unknown$0 or Unknown$0 or Unknown
Costs - DOR Personnel Service($29,900)($36,598)($37,330) Fringe Benefits($23,896)($28,937)($29,204) Expense & Equipment ($41,644)($10,770)($10,986)Total Costs - ($95,440)($76,305)($77,520)FTE Change1 FTE1 FTE1 FTEESTIMATED NET EFFECT ON
GENERAL REVENUE
Less than
($95,440)
Less than
($76,305)
Less than
($77,520) L.R. No. 3824H.01I
Bill No. HB 2211
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FISCAL IMPACT – State GovernmentFY 2025
(10 Mo.)
FY 2026FY 2027Estimated Net FTE Change on General
Revenue1 FTE1 FTE1 FTE
FISCAL IMPACT – Local GovernmentFY 2025
(10 Mo.)
FY 2026FY 2027$0$0$0
FISCAL IMPACT – Small Business
Certain small businesses that manufacture vapor products could be impacted by this proposal.
FISCAL DESCRIPTION
The proposed legislation establishes provisions relating to the creation of a vapor product
directory.
This legislation is not federally mandated, would not duplicate any other program and would not
require additional capital improvements or rental space.
SOURCES OF INFORMATION
Office of Administration - Budget and Planning
Department of Revenue
Department of Public Safety - Alcohol and Tobacco Control
Department of Corrections
Office of the Secretary of State
Joint Committee on Administrative Rules
Julie MorffRoss StropeDirectorAssistant DirectorFebruary 14, 2024February 14, 2024