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F I S C A L I M P A C T R E P O R T

SPONSOR Carraro

ORIGINAL DATE

LAST UPDATED

01/19/07 HB

SHORT TITLE Limiting the Amount of Nicotine in Cigarettes

SB 166

ANALYST Hanika Ortiz

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY07

FY08

NFI

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Attorney General’s Office (AG)

Department of Health (DOH)

Public Regulation Commission (PRC)

SUMMARY

Synopsis of Bill

Senate Bill 166 amends New Mexico state law governing cigarette sales and distribution (NMSA

57-2A-3) to prohibit the acquisition, ownership, possession, transportation, sale or importation of

cigarettes with greater than three-tenths (.3) milligrams of nicotine per gram of tobacco per

cigarette rod after January 1, 2010.

FISCAL IMPLICATIONS

Senate Bill 166 may create an additional fiscal impact on law enforcement that will be

proportional to the enforcement of this new law and commenced prosecutions. There will also

be additional costs for the Taxation and Revenue Department (which enforces the Cigarette

Enforcement Act) in staff time and other resources associated with the implementation of an

acceptable method of testing cigarette nicotine content on a “per gram" basis.

Senate Bill 166 – Page

2

SIGNIFICANT ISSUES

Based upon data from philipmorrisusa.com the average cigarette contains approximately one

gram of tobacco, and nicotine content varies between .5 and 1.2 milligrams per cigarette. Senate

Bill 166 will require a significant reduction in the amount of nicotine which could be lawfully

contained in cigarettes possessed, sold or distributed in New Mexico. DOH reports the average

nicotine yield for cigarettes labeled “full flavor" is 2.16 milligrams, and for cigarettes labeled

“medium" is 2.01 milligrams according to a Massachusetts Department of Public Health

Measurement. The PRC reports that the Federal Trade Commission produces an annual report on

the amount of nicotine in various cigarette brands but it is unclear whether the nicotine content is

measured on a “per gram" basis.

DOH reports that lowering the amount of nicotine in cigarettes is unlikely to reduce overall

smoking and may increase smoking as nicotine-dependent tobacco users strive to maintain the

blood levels of nicotine required to avoid withdrawal thereby getting as much tar (which contains

the carcinogens) as found in higher nicotine cigarettes.

PERFORMANCE IMPLICATIONS

The AGO reports it is unlikely state legislation will affect the ability of Indian Tribes to sell

tobacco products containing higher nicotine amounts. The AGO further states the bill appears to

make possession of cigarettes containing higher amounts of nicotine a fourth degree felony,

which they feel may be difficult to enforce.

ADMINISTRATIVE IMPLICATIONS

The Taxation and Revenue Department will need to dedicate staff time and resources that may

be currently directed at or planned for other activities.

TECHNICAL ISSUES

Senate Bill 166 appears to make an assumption that each cigarette rod contains one gram of

tobacco. DOH states that nicotine content is typically described either by the total milligrams per

cigarette as opposed to “per gram of tobacco" per cigarette rod.

OTHER SUBSTANTIVE ISSUES

AGO reports that according to the Harvard School of Public Health, cigarette manufacturers

have steadily increased the nicotine content in cigarettes approximately 1.5% per year to make it

easier to obtain a sufficient nicotine dose per single puff.

ALTERNATIVES

The PRC suggests the NM state legislature consider requiring cigarette manufacturers to file an

annual report detailing the nicotine content as is done in other states.

WHAT WILL BE THE CONSEQUENCES OF NOT ENACTING THIS BILL

The nicotine content of cigarettes sold or distributed in New Mexico will continue to be

unregulated.

AHO/csd