COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION



FISCAL NOTE



L.R. No.: 3944-01

Bill No.: SB 964

Subject: Tobacco Products; Business and Commerce; Merchandising Practices

Type: Original

Date: March 4, 2002




FISCAL SUMMARY



ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 2003 FY 2004 FY 2005
None
Total Estimated

Net Effect on All

State Funds

$0 $0 $0



ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 2003 FY 2004 FY 2005
None
Total Estimated

Net Effect on All

Federal Funds

$0 $0 $0



ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 2003 FY 2004 FY 2005
Local Government $0 $0 $0

Numbers within parentheses: ( ) indicate costs or losses.

This fiscal note contains 3 pages.

FISCAL ANALYSIS



ASSUMPTION



Officials from the Office of Attorney General (AGO) assume they will require 2 FTE Assistant Attorneys General II (each at $36,750 per year plus fringe benefits, equipment and expenses) and 1 FTE Legal Secretary (at $21,500 per year plus fringe benefits, equipment and expense) to enforce violations of this provision pursuant to Chapter 407, RSMo. The AGO estimates the cost of the proposal to be $160,303 in FY 03; $165,520 in FY 04; and $169,836 in FY 05.



Oversight assumes the AGO could experience an increase in case load due to the proposed legislation. Oversight assumes the AGO could absorb the cost of the increased case load within existing resources. If the AGO experiences an increase that would justify additional FTE, the AGO could request funding through the appropriation process.





FISCAL IMPACT - State Government FY 2003

(10 Mo.)

FY 2004 FY 2005
$0 $0 $0



FISCAL IMPACT - Local Government FY 2003

(10 Mo.)

FY 2004 FY 2005
$0 $0 $0





FISCAL IMPACT - Small Business



The proposed legislation could have a fiscal impact on small businesses who are cigarette retailers.





DESCRIPTION



The proposed legislation would allow cigarette retailers to make agreements with suppliers to participate in cigarette merchandising, advertising, display or promotion programs. The retailers would be allowed to receive compensation for their participation. The agreements could not require the retailer to allocate, restrict or limit their space for cigarettes or advertising.





DESCRIPTION (continued)



This legislation is not federally mandated, would not duplicate any other program and would not require additional capital improvements or rental space. This legislation would not affect Total State Revenue.



SOURCES OF INFORMATION



Office of Attorney General













Mickey Wilson, CPA

Acting Director

March 4, 2002