BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 320
                                                                  Page  1

          Date of Hearing:   April 17, 2013

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                   AB 320 (Nazarian) - As Amended:  April 2, 2013 

          Policy Committee:                              Education  
          Vote:6-0

          Urgency:     No                   State Mandated Local Program:  
          Yes    Reimbursable:              Yes

           SUMMARY  

          This bill prohibits the use of tobacco and nicotine products at  
          any time in a county office of education (COE), charter school,  
          or school district-owned or leased buildings, on school or  
          district property, and in school or district vehicles.  The  
          measure also clarifies that charter schools are eligible  
          participants in the Tobacco Use Prevention and Education (TUPE)  
          program.  Specifically, this bill:  

          1)Specifies the tobacco prohibition includes, but is not limited  
            to, smokeless tobacco, snuff, chew, clove cigarettes, and  
            other nicotine-delivery devices, such as electronic  
            cigarettes.  

          2)Requires school districts, charter schools, and COEs, to  
            prominently display signs at all entrances to school property  
            stating "Tobacco use is prohibited." 

          3)Clarifies, under the TUPE program, the prohibition for tobacco  
            and nicotine products does not include the use or possession  
            of prescription products, nicotine patches, or nicotine gum. 

           FISCAL EFFECT  

          GF/98 state reimbursable mandated costs, of at least $155,000,  
          to require school districts and COEs to display tobacco  
          prohibition signs, as specified.  Charter schools would incur  
          approximately $10,000 to comply with this measure.  Charter  
          schools are not eligible to file a state mandate claim and  
          therefore, there costs are not reimbursable.  









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           COMMENTS  

           1)Purpose  .  The TUPE program, funded from Proposition 99 -  
            cigarette tax revenue, provides funding for programs at school  
            districts, COEs, and charter schools in grades 6-12 through a  
            competitive application process for tobacco-specific student  
            instruction, reinforcement activities, special events, and  
            intervention and cessation programs for students.  Districts  
            and COEs are required to certify they have implemented a  
            tobacco-free governing board policy.  


            According to the State Department of Education (SDE), sponsor  
            of this bill, "The purpose of the TUPE program is to reduce  
            youth tobacco use by helping young people make healthful  
            tobacco-related decisions through tobacco-specific,  
            research-validated educational instruction and activities that  
            build knowledge as well as social skills and youth development  
            assets."  

            Under health and safety statute charter schools are eligible  
            to receive Proposition 99 funds.  As a result, SDE has allowed  
            charter schools to participate in the TUPE program.  This bill  
            clarifies education statute to ensure charter schools are  
            eligible participants in this program.  It also requires all  
            school districts, COEs, and charter schools, regardless if  
            they receive TUPE funding, to prohibit the use of tobacco and  
            nicotine products on its property, as specified.  According to  
            the author, "[This bill] is a step in the right direction to  
            reduce and protect our school personnel and students from  
            second-hand smoke exposure. All students and school personnel  
            deserve a smoke-free environment to learn and work in."

           2)Funding under the TUPE program  .  Proposition 99, passed by the  
            voters in November 1988, increased the tax on a pack of  
            cigarettes sold in the state by $0.25.  Revenue generated from  
            this tax is required to be distributed as follows: 20% is  
            deposited in the Health Education Account (HEA); 35% in the  
            Hospital Services Account; 10% in the Physician Services  
            Account; 5% in the Research Account; 5% in the Public  
            Resources Account; and 25% an unallocated account.  The 2012  
            Budget Act allocated $271 million in Proposition 99 revenue.   
            Of this amount, approximately $80 million is allocated under  
            the HEA.  The TUPE program is funded from the HEA.  









                                                                  AB 320
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            School districts and COEs receive funding on a competitive  
            basis for pupils in grades 6-12 to provide tobacco prevention  
            programs.  Specifically, statute requires districts and COEs  
            to adopt and enforce a tobacco-free campus policy no later  
            than July of each fiscal year as a condition of receiving  
            funding.  Funding is distributed to school districts and COEs  
            per unit of average daily attendance (ADA) in grades 6-12  
            (i.e., the number of children who attend school) and grant  
            awards are available for a three year period.  

            The 2012 Budget Act allocated approximately $17 million to the  
            SDE for the TUPE program.  Of this amount, $16.2 million was  
            allocated for distribution to 529 school districts, COEs, and  
            charter schools.  This funding amount is expected to remain  
            the same in the 2013-14 fiscal year.  

            Grantees are funded in tiers.  For example, Tier One grantees  
            receive $1,500 and $0.87 per ADA over a three year period to  
            enforce the tobacco-free policy, including placement of signs.  
             Tier Two grantees receive an average of $15.25 per ADA to  
            enforce the tobacco-free policy and administer the California  
            Healthy Kids Survey, which asks pupils about school  
            environment issues, including safety.  According to SDE,  
            approximately one million pupils in grades 6-12 are served  
            under the TUPE program.   

           3)K-12 Mandate Block Grant  .  The 2012 Budget Act allocated  
            $166.6 million for this block grant.  Essentially, a school  
            district, charter school, or county office of education may  
            choose to receive a per-pupil allocation to conduct existing  
            K-12 mandated activities.  If the district, charter school, or  
            COE chooses to receive this allocation it forfeits its ability  
            to claim mandate reimbursement via the existing state process.  
             School districts received approximately $28 per pupil;  
            charter schools approximately $14 per pupil; and COEs  
            approximately $29 per pupil.  The advantage of this block  
            grant is school districts will receive annual funding now  
            versus waiting to receive payment under the existing claims  
            process, which the state has deferred paying for a number of  
            years.  

            According to the Legislative Analyst Office (LAO), 634 school  
            districts (approximately 67% of all districts), 35 COEs  
            (approximately 60% of all COEs), and 877 charter schools  
            (approximately 93% of charter schools) participated in the  








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            block grant.  Presumably if the requirements of this measure  
            are determined to be a state mandated program, its  
            requirements would be added to the block grant.  

           

           Analysis Prepared by  :    Kimberly Rodriguez / APPR. / (916)  
          319-2081