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





SPONSOR: SPAC DATE TYPED: 2/15/00 HB
SHORT TITLE: Cigarette Enforcement Act SB 491/SPACS
ANALYST: Segura


APPROPRIATION



Appropriation Contained
Estimated Additional Impact
Recurring

or Non-Rec

Fund

Affected

FY00 FY01 FY00 FY01
N/A



(Parenthesis ( ) Indicate Expenditure Decreases)



Duplicates/Conflicts with/Companion to/Relates to



SOURCES OF INFORMATION



Taxation and Revenue Department (TRD)



SUMMARY



Synopsis of Bill



Senate Public Affairs Committee Substitute for SB491 defines a number of unlawful sales practices and reporting requirements associated with the sale of cigarettes. Violations of the provisions would constitute a violation of the Unfair Practices Act (up to $5,000 civil penalty under Section 57-12-11 NMSA 1978), would constitute a fourth degree felony ( 18 months imprisonment and up to $5,000 criminal penalty under Section 31-18-15 NMSA 1978), and would be grounds for the Department to revoke or suspend the violator's business registration.



Significant Issues



The prohibited practices mostly involve imported cigarettes and appear to shore-up the provisions of the state Attorneys General Agreement with tobacco manufactures. Other provisions prohibit altering, removing, concealing or obscuring any statement on the package.



The reporting requirements specify monthly reports to the Department from any person who affixes state tax stamps, including copies of : 1) all federal permits issued to persons who imported cigarettes; 2) the customs forms showing federal ATF information; 3) the brand style, quantity, supplier, and purchaser of all cigarettes; 4) a non-confidential statement identifying the brand styles of all cigarettes; 5) a statement by each manufacturer or importer certifying the cigarettes have the appropriate health warnings, the federal requirements for reporting ingredients have been met, and whether the manufacturer or importer is a participating manufacturer for purposes of 15 USCA Sections 1333 and 1335a.



FISCAL IMPLICATIONS



No fiscal impact



OTHER SUBSTANTIVE ISSUES



The TRD indicates that in HB-177, which is a department's technical correction legislation, adds a new exception to allow exchange of information with the Attorney General with respect to cigarette and tobacco products.



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