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 6125 NOTE PREPARED: Feb 4, 2021
BILL NUMBER: SB 142 BILL AMENDED:
SUBJECT: Age Verification for Tobacco and Vaping Sales.
FIRST AUTHOR: Sen. Ford Jon BILL STATUS: CR Adopted - 1st House
FIRST SPONSOR:
FUNDS AFFECTED: X GENERAL IMPACT: State & Local
X DEDICATED
FEDERAL
Summary of Legislation: This bill makes it a Class C infraction if a person or retail establishment sells or
distributes tobacco, an e-liquid, or an electronic cigarette without performing age verification of the
purchaser with scanning technology or an automated software system. It provides that a good faith effort to
verify the age of a purchaser of e-liquids includes performing age verification with scanning technology or
an automated software system.
Effective Date: July 1, 2021.
Explanation of State Expenditures: Alcohol and Tobacco Commission (ATC): The ATC would enforce
the bill’s provisions requiring tobacco, e-liquid, and electronic cigarette retailers to use scanning technology
or an automated software system to verify the age of purchasers. The ATC should be able to do this within
its existing level of resources.
Explanation of State Revenues: Shipping E-liquids: The bill makes it a Class C infraction for a person to
ship e-liquid without performing age verification of the purchaser with scanning technology or an automated
software system that indicates the birth date or age of the purchaser. (This requirement replaces the
requirements in current law to verify the age of the purchaser in a commercially available database or obtain
a photocopy of a government issued identification.)
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.
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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.
Sale or Distribution of Tobacco, E-liquids, or Electronic Cigarettes: The bill makes it a Class C infraction
for a person to sell or distribute tobacco, an e-liquid, or an electronic cigarette without performing age
verification with scanning technology or an automated software system. Civil penalties for violations of this
provision would be deposited in the Richard D. Doyle Youth Tobacco Education and Enforcement Fund.
The bill also provides that a retail establishment that sells or distributes tobacco, an e-liquid, or an electronic
cigarette without performing age verification with scanning technology or an automated software system
commits a Class C infraction. The maximum penalty for violations of this provision ranges from $400 to
$2,000 depending on the number of violations at the establishment in the previous year. Revenue is deposited
in the Richard D. Doyle Youth Tobacco Education and Enforcement 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.
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Statutes affected:
2. Senate Bill (S): 35-46-1-10, 35-46-1-10.2
3. Senate Bill (S): 35-46-1-10, 35-46-1-10.2