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F I S C A L I M P A C T R E P O R T
SPONSOR Jennings
DATE TYPED 2/15/05
HB
SHORT TITLE Increase Age For Tobacco Use From 18 To 21
SB 612
ANALYST Hanika-Ortiz
APPROPRIATION
Appropriation Contained Estimated Additional Impact Recurring
or Non-Rec
Fund
Affected
FY05
FY06
FY05
FY06
See Narrative Recurring
SOURCES OF INFORMATION
LFC Files
Responses Received From
Department of Public Safety (DPS)
Department of Health (DOH)
Administrative Office of the Courts (AOC)
New Mexico Economic Development Department (NMEDD)
SUMMARY
Synopsis of Bill
Senate Bill 612 amends the Tobacco Products Act increasing the age from 18 to 21 and increas-
ing the penalty from $1 hundred to $1 thousand. SB 612 adds possession in addition to attempt-
ing to purchase as cause for violation. Under current law, tobacco sellers “may” refuse to sell
tobacco to persons who cannot prove age. This permissive language is replaced with “shall” not
sell. Persons selling tobacco shall request an identify card of those appearing to be less than
thirty years of age.
Significant Issues
2000 census date reports between 75,000 and 90,000 tobacco users between 18 and 21. The rate
of youth smoking is higher in New Mexico than in the nation. In New Mexico, 30% of high
school students are current smokers (have smoked within 30 days), while 22% of high school
students nationally are current smokers.
According to the CDC, the tobacco industry has advocated for penalizing youth, rather than re-
tailers for purchasing or possessing tobacco in an attempt to divert the responsibility for illegal
sales from the retailer to children. CDC recommends a strategy that ensures retailers are held ac-
pg_0002
Senate Bill 612-- Page 2
countable and penalized for illegal sales to minors as the first step in reducing youth access to
tobacco products. It is estimated that one out of every four underage smokers in New Mexico
purchases their own cigarettes from a store.
The Surgeon General recommends instituting 19 years of age as the minimum age for legal
tobacco sales, which would help keep tobacco out of high school.
Youth possession laws have not been endorsed by the U.S. Surgeon General, the CDC, and the
World Health Organization.
PERFORMANCE IMPLICATIONS
DPS has concerns proposed legislation requires additional administrative resources to process
citations, and takes law enforcement officers away from other enforcement duties.
The AOC notes SB 612 could increase the number of misdemeanor cases filed against tobacco
users and tobacco sellers in magistrate and metropolitan courts.
The EDD notes SB 612 will assist retail establishments in controlling the sale of tobacco.
FISCAL IMPLICATIONS
The DOH reports the U.S. DHHS issued regulations under the Synar Amendment requiring
states to pass and enforce laws prohibiting the sale of tobacco to individuals less than 18 years of
age. Compliance with the Synar Amendment is a condition of funding for states receiving the
Substance Abuse Prevention and Treatment (SAPT) block grant. Forty (40) percent of the block
grant funding can be withheld for not complying with the Synar Amendment. $8,772,443.00 was
awarded for FY06. 40% ($3,508,977.00) of this funding is tied to compliance with the Synar
Amendment of the Alcohol, Drug Abuse and Mental Health Reorganization Act, which specifies
the age of a minor, related to tobacco products, as 18 years of age. Raising the age of a minor
from 18 to 21 years of age goes further than the age limits for minors as defined in the Synar
Amendment.
In 1997, at the inception of the Synar Amendment, New Mexico’s “sales to youth” violation rate
was 23%. In FY05 the rate was down to 6.4%, bringing it under the 20% specified by the Synar
Amendment. Increasing the age of a minor from 18 to 21 years of age could inflate the number
of sales violations because of the expanded pool of minors potentially buying tobacco products,
which could result in a portion of the SAPT block grant being withheld by SAMHSA.
Early age smokers have an increased risk of smoking-related illnesses that impact New Mexico’s
health delivery systems.
ADMINISTRATIVE IMPLICATIONS
There will be a minimal administrative impact on staff and resources for statewide update, distri-
bution, and documentation of statutory changes.
CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP
SB 612 relates to:
pg_0003
Senate Bill 612-- Page 3
•
HB 81, SB 50 repeals the cigarette tax increase
•
HB 290, redistributes Master Settlement Agreement payments into the Tobacco Settle-
ment Program Fund
•
HB 319, raises the tax on non-cigarette tobacco products
•
HB 354/SB 515, prohibits smoking in workplaces and public places
•
HB 453, appropriates $3 million to the DOH/TUPAC program
•
HB 650, appropriates $8 million to DOH/TUPAC and $500,000 for SMART MOVES,
and make other appropriations
•
SB 56, changes the requirements of cigarette tax stamps
•
SB 389, prohibits smoking in jails and schools
TECHNICAL ISSUES
The identity card requirement could be more defined.
It is unclear what the fines are for businesses selling tobacco products to minors.
OTHER SUBSTANTIVE ISSUES
The DOH notes the CDC recommends implementing evidence based strategies, they include:
•
High tobacco taxes – New Mexico’s 91 cents per pack excise tax currently ranks 20
th
in
the nation.
•
Mandatory smoke-free workplaces and public places. Strong clean indoor air laws have a
stronger deterrent effect on youth smoking rates than youth possession laws.
•
Restrictions on tobacco product promotion – Tobacco advertising images are still widely
displayed. New Mexico has no restrictions on tobacco promotions.
•
A mass media counter-advertising campaign – Evaluations of the Massachusetts and
Florida’s anti-smoking television ads concluded that ads were effective in preventing
youth from using tobacco.
•
Curriculum-based anti-tobacco education – New Mexico implements evidenced-based
tobacco education curricula in New Mexico schools.
•
A strongly enforced prohibition on tobacco supply to minors.
ALTERNATIVES
Amendment to institute 19 years of age as the minimum age for legal tobacco sales, which may
help keep tobacco out of high schools.
WHAT WILL BE THE CONSEQUENCES OF NOT ENACTING THIS BILL.
The minimum age for legal tobacco sales will remain at eighteen years of age and
minors would be subject to penalties for purchasing or attempting to purchase tobacco
products, but not for possession.
QUESTIONS
Are the fines high enough to prevent retailers from selling to minors.
AHO/yr