HB 1624-FN - AS INTRODUCED

2020 SESSION

20-2660

01/10

HOUSE BILL 1624-FN

AN ACT establishing a moratorium on sales of e-cigarettes.

SPONSORS: Rep. P. Schmidt, Straf. 19; Rep. Cleaver, Hills. 35

COMMITTEE: Commerce and Consumer Affairs

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ANALYSIS

This bill establishes a moratorium on the sale of "e-cigarettes" for the length of time it takes the commissioner of the department of health and human services to determine that they are not a cause of illness or death.

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

20-2660

01/10

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Twenty

AN ACT establishing a moratorium on sales of e-cigarettes.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1  Moratorium on the Sale of E-Cigarettes.  There shall be a moratorium on the sale of e-cigarettes until the commissioner of the department of health and human services determines that they are not a cause of illness or death as certified by the commissioner to the secretary of state and the director of legislative services.  For the purposes of this section, "e-cigarette" means any electronic smoking device composed of a mouthpiece, a heating element, a battery, and electronic circuits that may or may not contain nicotine.  This term shall include such devices whether they are manufactured as e-cigarettes, e-cigars, or e-pipes, or under any other product name.  

2  Effective Date.  This act shall take effect upon its passage.

LBAO

20-2660

12/6/19

HB 1624-FN- FISCAL NOTE

AS INTRODUCED

AN ACT establishing a moratorium on sales of e-cigarettes.

FISCAL IMPACT:      [ X ] State              [    ] County               [    ] Local              [    ] None

METHODOLOGY:

This bill establishes a moratorium on the sale of e-cigarettes until the commissioner of the Department of Health and Human Services determines that they are not a cause of illness or death.  The Department of Health and Human Services states that the proposed moratorium may result in increased demand for the Tobacco Quitline Program, as individuals previously using e-cigarettes as a transitional measure may try to quit smoking via other means.  Based on moratoriums in other states, the Department anticipates a 24 percent increase in demand for Quitline services during the first year of the moratorium.   Based on anticipated Quitline costs of $156,526, this would result in a $37,566 increase in the first year of the moratorium.  Additionally, based on anticipated annual costs of $133,268 for approved tobacco cessation medication for the uninsured, Medicare, and Medicaid populations, the Department expects an increase of $31,984 in costs for these services.  These costs would be paid for with a combination of state and federal Medicaid funds.  The combined total of $69,550 per year (shown in the table above) assumes the moratorium will take effect in the beginning of FY 2021 and remain in effect through FY 2023.

The Department of Revenue Administration notes that the moratorium may result in a revenue decrease, as the State's tobacco tax is scheduled to apply to e-cigarettes as of January 1, 2020.  For informational purposes, the current FY 2020/21 operating budget assumes that the tobacco tax applied to e-cigarettes will generate a total of $5.7 million in FY 2021 ($3.2 million for the state general fund, and $2.5 million for the education trust fund).    

AGENCIES CONTACTED:

Departments of Health and Human Services and Revenue Administration