 | Fiscal Note2nd Sub. H.B. 265 (Gray) 2026 General Session Non-nicotine Inhalation Product Amendments by Thompson, Jason E. |  |
| Ongoing | One-time | Total | |
|---|---|---|---|
| Net GF/ITF/USF (rev.-exp.) | $(11,000) | $0 | $(11,000) |
| Revenues | FY2026 | FY2027 | FY2028 |
| Electronic Cigarette Substance and Nicotine Product Proceeds Restricted Account (GFR) | $0 | $(40,000) | $(40,000) |
| Cannabinoid Proceeds Restricted Account (GFR) | $0 | $(12,000) | $(12,000) |
| General Fund | $0 | $(11,000) | $(11,000) |
| Total Revenues | $0 | $(63,000) | $(63,000) |
Enactment of this legislation may decrease ongoing revenues in FY 2027 to the (1) Electronic Cigarette Substance and Nicotine Product Proceeds Restricted Account by ($40,000), (2) Cannabinoid Proceeds Restricted Account by ($12,000), and (3) General Fund by ($11,000). Violators may pay up to $6,000 per infraction to the Department of Health and Human Services; however, the exact quantity is unknown. To the extent that more people are convicted as a result of this legislation and pay their financial obligation, this could increase state revenue per case up to the following amounts: (1) General Fund $290; (2) Court Security $38.
| Expenditures | FY2026 | FY2027 | FY2028 |
| Electronic Cigarette Substance and Nicotine Product Proceeds Restricted Account (GFR), One-time | $11,700 | $0 | $0 |
| Cannabinoid Proceeds Restricted Account (GFR) | $0 | $(12,000) | $(12,000) |
| Total Expenditures | $11,700 | $(12,000) | $(12,000) |
Enactment of this legislation may cost the Tax Commission $11,700 one-time in FY 2026 from the Electronic Cigarette Substance and Nicotine Product Proceeds Restricted Account for system programming and reduce by ($12,000) Cannabinoid Proceeds Restricted Account for the Department of Agriculture for 19 fewer products to oversee.
| FY2026 | FY2027 | FY2028 | |
| Net All Funds (rev-exp) | $(11,700) | $(51,000) | $(51,000) |
Violators may pay up to $6,000 per infraction to a local health department; however, the exact quantity is unknown. Enactment of this legislation could increase revenue to local governments by up to $1,672 per case for fines/fees. Local government entities could experience the following estimated expenditures: 1. Prosecutors - $812 per case; 2. Public Defense - $975 per case; 3. County Jails - unknown increase at about $83 per day per offender in incarceration costs; 4. Local Justice Court - unknown increase.
Violators may pay up to $6,000 per infraction to a local health department; however, the exact quantity is unknown. Non-nicotine inhalation product and electronic cigarette product that contains a cannabinoid businesses and/or user will pay ($63,000) annually less in taxes. To the extent that individuals violate provisions of this legislation, this could cost certain offenders up to $2,000 per misdemeanor case, however the total amount is unknown.
Enactment of this legislation could result in a small increase in the regulatory burden for Utah residents or businesses.
This bill does not create a new program or significantly expand an existing program.