The Industry, Business and Labor Committee revisited a proposal to allow broader uses of proceeds collected under the cigarette testing fee administered by the State Fire Marshal. Committee members questioned whether the fee — set in statute as $250 per tested brand — should be adjusted downward rather than broaden the permissible uses of an accumulating fund.

Doug Nelson, State Fire Marshal, told the committee the program has been in place about a decade and that cigarette manufacturers submit fees when they certify or recertify brands under state testing rules. Nelson said the office has used the funds for enforcement and testing activities but asked for flexibility to use proceeds on related prevention work such as smoke alarms, oxygen‑related prevention equipment, and other measures to prevent fire fatalities.

Representative Schauer moved a do‑pass recommendation; Representative Johnson seconded. Several members, including Representatives Ruby and Koppelman, raised concerns about the fund balance and the policy of widening the fund’s uses rather than reducing the fee charged to manufacturers. Representative Koppelman cited Century Code language that allows the fire marshal to “adjust this fee annually to ensure the fee to [sic] phrase the actual cost of the process, testing, enforcement, or oversight activities required by this chapter,” and asked whether the marshal could reduce the fee to avoid a surplus.

Members asked for financial detail and whether the transferred funds (including a recent $400,000 amount cited in committee materials) should instead be returned to the general fund or used to lower fees. Representative Volmer asked whether the fire marshal could put the fund balance into investment to generate returns for program use; Marshal Nelson said he did not know the investment status of the account and declined to speculate in committee.

Representative Schauer agreed to withdraw the do‑pass motion after discussion and the committee paused further action to request more information and agency follow‑up. No formal vote was recorded on the bill during the session.

Next steps: committee staff will follow up with the State Fire Marshal on fee authority, fund balances, past uses, and whether the office or the Legislature should adjust fees or appropriate funds for prevention programs. A do‑pass motion was made and later withdrawn; no action was taken.