BILL ANALYSIS                                                                                                                                                                                                    







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        |Hearing Date:April 19, 2010        |Bill No:SB                         |
        |                                   |882                                |
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                      SENATE COMMITTEE ON BUSINESS, PROFESSIONS 
                               AND ECONOMIC DEVELOPMENT
                         Senator Gloria Negrete McLeod, Chair

                         Bill No:        SB 882Author:Corbett
                        As Amended:April 5, 2010 Fiscal:   Yes

        
        SUBJECT:  Tobacco:  Electronic cigarettes. 
        
        SUMMARY:  Urgency measure which requires cities and counties to revoke  
        the license of a business that, on two or more occasions, provides or  
        offers electronic cigarettes, as defined, to a person less than 18  
        years of age.

        Existing law:  

        1)Requires a retailer to maintain a license to engage in the sale of  
          cigarettes or tobacco products.

        2)Authorizes cities and counties to issue business licenses, set  
          licensing fees, and collect licensing fees.

        3)Establishes the Stop Tobacco Access to Kids Enforcement (STAKE) Act  
          that provides several provisions, including civil penalties  
          regarding the sale of tobacco to minors.


        This bill:

        1) Provides that the Legislature finds and declares that:

            a)    Electronic cigarettes are currently unregulated by the  
              United States Food and Drug Administration (FDA) and are  
              available for purchase in this state.

            b)    Initial FDA studies found that electronic cigarettes contain  
              known carcinogens and misrepresent nicotine content on their  
              labels.  As a result, the FDA has warned the public about the  





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              potential health risks of using electronic cigarettes.

            c)    Electronic cigarettes offered for sale in this state are  
              produced overseas and not covered by state and federal quality  
              control protections.

            d)    Since electronic cigarettes are not regulated at the  
              federal, state, or local level, they can be legally sold to  
              minors.

            e)    County tobacco control programs have reported the attempted  
              sale of electronic cigarettes to minors at shopping malls.   
              Throughout the state, retailers have established shopping mall  
              kiosks near food courts and stores frequented by adolescents.   
              At these kiosks, retailers target teens with pitches for  
              electronic cigarettes with flavored cartridges.

            f)    A 2008 report prepared for the State Department of Public  
              Health found, with regard to the California Tobacco Control  
              Program, that law enforcement agencies continue to rank policies  
              and procedures, such as suspension or revocation of business  
              licenses and civil and criminal penalties for owners and clerks  
              who sell tobacco to minors, as effective strategies to reduce  
              youth access to tobacco.

            g)    Due to important health, safety, and welfare concerns that  
              affect the entire state, regardless of location, regulating the  
              sale to and use by minors of electronic cigarettes is a  
              statewide concern, and not a municipal affair.

        2) Requires cities and counties to revoke the license of a business  
           that, on two or more occasions, provides or offers electronic  
           cigarettes to a person less than 18 years of age.

        3) Defines "electronic cigarette" as any device that can provide  
           inhaled doses of nicotine by delivering a vaporized solution.

        4) Provides that the bill's provision shall become effective  
           immediately as an urgency measure.


        FISCAL EFFECT:  Unknown. This bill is keyed "fiscal" by Legislative  
        Counsel.

        
        COMMENTS:





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        1. Purpose.  This bill is sponsored by the Author to halt the sale of  
           electronic cigarettes to minors by requiring cities and counties to  
           revoke the license of a business that, on two or more occasions,  
           provides or offers to provide electronic cigarettes to a person  
           less than 18 years of age. 

        2. Background.  According to the Author, the newest attempt to market  
           addictive products to children and teenagers is through electronic  
           cigarettes.  Electronic cigarettes are a completely unregulated  
           tobacco substitute and are being marketed as a healthy and  
           smokeless alternative to traditional cigarettes.  Electronic  
           cigarettes are rechargeable, battery operated devices that look  
           similar to cigarettes and allow the user to inhale a smokeless  
           vapor often containing nicotine.

           Because producers of electronic cigarettes have not sought approval  
           by the FDA, the drug delivery device is completely unregulated.   
           For months, producers of electronic cigarettes have used a loophole  
           in state and federal law to sell their product without age  
           restrictions.

           It has been reported that local county tobacco control agencies  
           have sent minors undercover to successfully purchase electronic  
           cigarettes in mall kiosks, according to the Author.

           The Author further asserts that retailers entice young consumers by  
           establishing mall kiosks close to food courts and popular teen  
           stores.  In malls, teens are offered targeted pitches on flavored  
           cartridges and the appeal of a product that can be used in all  
           public places since it emits no smoke.

           A study published in the Journal of the National Cancer Institute  
           found that teens were more likely to be influenced to smoke by  
           cigarette marketing than by peer pressure.  Similarly, a study  
           published by the Journal of the American Medical Association found  
           that as much as one-third of underage experimentation with smoking  
           was attributable to tobacco company marketing efforts.

        3. Prior Related Legislation.   SB 400  (Corbett, 2009) would have added  
           electronic cigarettes to the California Stop Tobacco Access to Kids  
           Enforcement (STAKE) Act.  The California STAKE Act, among other  
           things, provides penalties for providing tobacco products to  
           minors. This bill was vetoed and the Governor stated in his veto  
           message, "I cannot sign a measure that also declares them  
           [electronic cigarettes] a federally regulated drug when the matter  





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           is currently being decided through pending litigation."

        4. Arguments in Support.  The  Health Officers Association of  
           California asserts that, "SB 882 would take significant steps to  
           prevent minors from purchasing electronic cigarettes.  Tobacco use  
           is a major public health problem, and cigarette use among minors is  
           of great concern to public health professionals.  Electronic  
           cigarettes are an unregulated 'alternative' to cigarettes which,  
           because they have not yet been reviewed by the FDA, are not yet  
           illegal to sell to minors.  Manufacturers and distributors of  
           electronic cigarettes are taking advantage of this technicality to  
           sell electronic cigarettes in mall kiosks and other places  
           frequented by teenagers.  SB 882 would close this loophole."

        
        SUPPORT AND OPPOSITION:
        
         Support:  

        Breathe California
        Health Officers Association of California (HOAC)

         Opposition:  

        None received as of April 12, 2010.



        Consultant: Antoinnae Comeaux