BILL ANALYSIS AND FISCAL IMPACT REPORT	Page 1 of  1
DATE: February 26, 2001	Submitted by: TAXATION AND REVENUE DEPT.      
	T. GLENN ELLINGTON, SECRETARY 
BILL NUMBER: HB-704

SPONSOR: Representative Rodella

BILL SHORT TITLE: Penalties for minors possessing tobacco products

CONFLICTS, DUPLICATES, COMPANIONS:  

DESCRIPTION: This legislation adds a new section to the Tobacco Products Act (Sections 30-49-1 to 30-49-12 NMSA 1978). The Tobacco Products Act regulates conditions under which tobacco products may be sold, and is generally aimed at preventing tobacco products from being sold to a minor. Among provisions of the Act are that an individual who sells tobacco products to a person that is under 18 years of age is guilty of a misdemeanor and subject to a fine of up to $1,000, and any minor who purchases a tobacco product is subject to a fine of up to $1,000. The proposed measure make possession of tobacco products by a minor a misdemeanor and establish penalties of 1) first violation -- up to $1,000 fine and 30 hours of service in a tobacco cessation and prevention program, 2) second violation -- up to $1,000 fine, 40 hours of service with a tobacco cessation and prevention  program and 90 day suspension of driver's license. If the driver is too young to possess a driver's license, the 90 days is to be added to the date the minor would become eligible to obtain a driver's license; 3) third and subsequent violations -- $1,000 fine, 60 hours of community service and driver's license suspension for two years or until the offender reaches 21 years of age -- whichever is greater.

EFFECTIVE DATE:  July 1, 2001

FISCAL IMPACT (Thousands of dollars):  		Note: Parenthesis ( ) indicate a revenue loss:
		Recurring or		
	Estimated Impact on Revenues	Nonrecurring	Funds	
	FY 2002	Full Year	     Impact    	Affected	
	*	*	Recurring	General Fund	
*Uncertain, probably very small, depends on enforcement, court actions, and similar factors. There is really no way to know how minors would react to the new sanctions against possessing tobacco products. Current statutes make it a $1,000 fine for them to purchase tobacco products; whether additional sanctions against possessing the products would impact their use is uncertain.

TECHNICAL ISSUES:
To be enforceable, the proposed measure should reference an appropriate portion of the Motor Vehicle Code, for example 66-5-5 NMSA 1978 (Persons not to be licensed).

ADMINISTRATIVE IMPACT: Administrative impacts of the proposed measure would most likely be modest and could be probably be performed with resources currently available to the Department.

OTHER IMPACTS AND ISSUES:
1.	There seems little doubt that the proposed measure addresses a serious health problem of concern to New Mexico citizens, and would tend to reduce use of tobacco products. However, as mentioned above, the proposal's effectiveness in reducing tobacco use by minors is doubtful.
2.	No mechanism is established by which MVD is even notified of a conviction of a violation of these new crimes.  It is therefore unlikely that the driver’s license sanctions would be implemented.