Committee approves $500-per-product fee in HB1003 to help fund tobacco compliance auditor

The Appropriations — Education and Environment Division voted to bring the attorney general’s budget back for amendment and approved language in House Bill 1003 that would require manufacturers selling vape products to pay a $500 registration fee per product, a measure proponents said will help fund a tobacco compliance auditor in the attorney general’s office.

The move began when Representative Martinson asked the committee to reconsider the previously passed attorney general budget so it could be amended. The committee approved that motion by voice and then took up House Bill 1003. Kayla Efforts Cleveland, a lobbyist with Integrity Public Affairs representing Altria Client Services, told the committee the $500 fee is levied at the manufacturer level and was modeled on similar directory language already used for cigarettes. “This is a fee that you have the ability to set,” she said, and noted that the cigarette directory fee is currently $250 per manufacturer, per brand as a point of comparison.

The amendment and ensuing debate focused on how much of a newly authorized compliance position the fee would cover. Becky (Attorney General’s Office) confirmed the budget includes one full-time equivalent (FTE) position with operating costs; committee discussion placed the FTE’s total cost at about $239,000. Committee members estimated roughly 200 registrable products in the market and concluded the flat $500 fee would not fully fund the position for the first biennium. Representative Swantek and others said the manufacturers should at least cover the cost of the compliance officer; committee members also noted the state could continue to use tobacco settlement trust funds to cover any remaining funding gap.

Committee members asked whether the attorney general would have authority to levy fines or otherwise enforce noncompliance discovered during unannounced compliance checks. The attorney general’s office said it would draft rules and handle enforcement but needed to review the amendment language to confirm whether the bill, as written, expressly authorizes fines; staff said they would provide clarification.

On a roll call, the committee adopted the amendment and then voted to give House Bill 1003 a due-pass recommendation to the full appropriations body. The roll call recorded six yes votes and one absence; the committee designated a member to carry the bill forward.

The committee paused further work on the governor’s budget pending delivery of a related amendment and scheduled additional budget work for upcoming committee meetings.