LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 88TH LEGISLATIVE REGULAR SESSION April 14, 2023 TO: Honorable Stephanie Klick, Chair, House Committee on Public Health FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB4758 by Thierry (Relating to a prohibition on certain e-cigarette containers.), As Introduced Passage of the bill would prohibit the sale of certain e-cigarette containers that depict images that are aimed at marketing to minors. As a result, sales of e-cigarette containers and the associated sales tax revenue to the state could be reduced. The bill would amend Chapter 161, Subchapter H, of the Health and Safety Code, regarding the distribution of cigarettes, e-cigarettes, or tobacco products, by adding Section 161.0876.The new section would prohibit the sale of e-cigarette containers that depict a cartoon-like fictional character that mimics a character primarily aimed at entertaining minors; imitate or mimic trademarks or trade dress of products that are, or have been, primarily marketed to minors; include a symbol or celebrity image that is primarily used to market products to minors; or resemble a food product, including candy or juice.Selling an e-cigarette container prohibited above could lead to the suspension of the seller's e-cigarette retailer's permit and assessment of administrative fines.While the prohibition of certain e-cigarette containers could lead to reduced sales tax revenue and violations of the new section could lead to increased administrative fine revenue, the number of containers to be prohibited, their values, the number of potential violators to be assessed fines, and the administrative fine amounts to be assessed are unknown and, as such, the revenue implications of this bill cannot be determined. Local Government ImpactPassage of the bill would prohibit the sale of certain e-cigarette containers that depict images that are aimed at marketing to minors. As a result, sales of e-cigarette containers and the associated sales tax revenue to units of local government that levy a sales tax could be reduced. Source Agencies: b > td > 304 Comptroller of Public Accounts LBB Staff: b > td > JMc, NPe, SD, BRI
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 88TH LEGISLATIVE REGULAR SESSION
April 14, 2023
TO: Honorable Stephanie Klick, Chair, House Committee on Public Health FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB4758 by Thierry (Relating to a prohibition on certain e-cigarette containers.), As Introduced
TO: Honorable Stephanie Klick, Chair, House Committee on Public Health
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: HB4758 by Thierry (Relating to a prohibition on certain e-cigarette containers.), As Introduced
Honorable Stephanie Klick, Chair, House Committee on Public Health
Honorable Stephanie Klick, Chair, House Committee on Public Health
Jerry McGinty, Director, Legislative Budget Board
Jerry McGinty, Director, Legislative Budget Board
HB4758 by Thierry (Relating to a prohibition on certain e-cigarette containers.), As Introduced
HB4758 by Thierry (Relating to a prohibition on certain e-cigarette containers.), As Introduced
Passage of the bill would prohibit the sale of certain e-cigarette containers that depict images that are aimed at marketing to minors. As a result, sales of e-cigarette containers and the associated sales tax revenue to the state could be reduced.
Passage of the bill would prohibit the sale of certain e-cigarette containers that depict images that are aimed at marketing to minors. As a result, sales of e-cigarette containers and the associated sales tax revenue to the state could be reduced.
The bill would amend Chapter 161, Subchapter H, of the Health and Safety Code, regarding the distribution of cigarettes, e-cigarettes, or tobacco products, by adding Section 161.0876.The new section would prohibit the sale of e-cigarette containers that depict a cartoon-like fictional character that mimics a character primarily aimed at entertaining minors; imitate or mimic trademarks or trade dress of products that are, or have been, primarily marketed to minors; include a symbol or celebrity image that is primarily used to market products to minors; or resemble a food product, including candy or juice.Selling an e-cigarette container prohibited above could lead to the suspension of the seller's e-cigarette retailer's permit and assessment of administrative fines.While the prohibition of certain e-cigarette containers could lead to reduced sales tax revenue and violations of the new section could lead to increased administrative fine revenue, the number of containers to be prohibited, their values, the number of potential violators to be assessed fines, and the administrative fine amounts to be assessed are unknown and, as such, the revenue implications of this bill cannot be determined.
Local Government Impact
Passage of the bill would prohibit the sale of certain e-cigarette containers that depict images that are aimed at marketing to minors. As a result, sales of e-cigarette containers and the associated sales tax revenue to units of local government that levy a sales tax could be reduced.
Source Agencies: b > td > 304 Comptroller of Public Accounts
304 Comptroller of Public Accounts
LBB Staff: b > td > JMc, NPe, SD, BRI
JMc, NPe, SD, BRI