Senate Substitute Bill No. 340, introduced in the February Session of 2024, aims to modify the tobacco dealer license renewal process. Effective from October 1, 2024, the bill requires municipalities to pass an ordinance that obligates license renewal applicants to notify the chief law enforcement official of the town where the business is located. The law enforcement official then has the opportunity to submit written comments to the Commissioner of Revenue Services within fifteen days, which the Commissioner must consider before granting the renewal. The bill also mandates that by January 1, 2026, the Commissioner must report to the General Assembly on the number of comments received, actions taken, and recommendations regarding the notice requirement. It amends Section 12-287 of the general statutes to define "filing date," specify public notification procedures, and describe the process for public remonstrance and potential hearings.

The fiscal impact of Senate Bill 340 includes costs to the General Fund for the Department of Revenue Services (DRS) of $486,250 in FY 25 and $170,000 in FY 26, as well as additional fringe benefit costs. The bill necessitates hiring two full-time equivalents (FTEs) to manage the new requirements, with start-up costs estimated at $367,500 in FY 25 for system programming and materials. Ongoing costs will include salaries and benefits for the FTEs, with the potential for these costs to rise due to wage inflation and the number of applications and objections. The bill also outlines a public objection process for cigarette dealer licenses, similar to that for liquor permits, and requires the DRS commissioner to report on the notice requirements' implementation by January 1, 2026.

Statutes affected:
Raised Bill: 12-287
PS Joint Favorable Substitute: 12-287
File No. 218: 12-287