LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
200 W. Washington St., Suite 301
Indianapolis, IN 46204
(317) 233-0696
iga.in.gov
FISCAL IMPACT STATEMENT
LS 6240 NOTE PREPARED: Nov 4, 2020
BILL NUMBER: SB 45 BILL AMENDED:
SUBJECT: Prohibition on Flavored E-liquids.
FIRST AUTHOR: Sen. Grooms BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED: X GENERAL IMPACT: State & Local
DEDICATED
FEDERAL
Summary of Legislation: This bill prohibits the sale of flavored e-liquid to a person of any age. It defines
"flavored e-liquid" as e-liquid that contains a constituent ingredient that is added for the purpose of imparting
a characterizing flavor. The bill provides that a manufacturer, distributor, or retailer may not manufacture,
distribute, or market flavored e-liquid in Indiana. It also authorizes the Alcohol and Tobacco Commission
(ATC) to investigate and enforce penalties for certain violations involving flavored e-liquid.
Effective Date: July 1, 2021.
Explanation of State Expenditures: If the ATC increases its enforcement activities, its costs could increase.
However, the bill is not expected to have a significant impact on the ATC’s expenditures.
Explanation of State Revenues: The bill makes it a Class C infraction for a person or retail establishment
to sell or distribute flavored e-liquids. If additional court cases occur and infraction judgments and court fees
are collected, revenue to the state General Fund may increase. The maximum judgment for a Class C
infraction is $500, which is deposited in the state General Fund.
If court actions are filed and a judgment is entered, a court fee of $70 would be assessed, 70% of which
would be deposited in the state General Fund if the case is filed in a court of record or 55% if the case is filed
in a city or town court. In addition, revenue from the automated record keeping fee ($20) is deposited into
the state user fee fund, and the judicial salaries fee ($20), public defense administration fee ($5), court
administration fee ($5), judicial insurance adjustment fee ($1), and the DNA sample processing fee ($3) are
deposited into the state General Fund.
SB 45 1
The bill also provides that flavored e-liquid may not be manufactured, distributed, or marketed in Indiana.
The ATC could assess a civil penalty of up to $10,000 against a manufacturer, distributor, or retailer for
violating this provision. Civil penalties assessed by the ATC would be deposited in the General Fund.
Explanation of Local Expenditures:
Explanation of Local Revenues: If additional court actions are filed and a judgment is entered, local
governments would receive revenue from the following sources. The county general fund would receive 27%
of the $70 court fee that is assessed in a court of record. Cities and towns maintaining a law enforcement
agency that prosecutes at least 50% of its ordinance violations in a court of record may receive 3% of court
fees. If the case is filed in a city or town court, 20% of the court fee would be deposited in the county general
fund and 25% would be deposited in the city or town general fund. Persons found guilty of an infraction are
also required to pay the following fees that are deposited in local funds: the document storage fee ($5), which
is deposited into the clerk record perpetuation fund, and the jury fee ($2) and law enforcement continuing
education fee ($4), which are both deposited in the county user fee fund.
State Agencies Affected: Alcohol and Tobacco Commission.
Local Agencies Affected: Trial courts, local law enforcement agencies.
Information Sources:
Fiscal Analyst: Lauren Tanselle, 317-232-9586.
SB 45 2


Statutes affected:
1. Introduced Senate Bill (S): 35-46-1-1.5