BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 1500
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          Date of Hearing:   May 21, 2014

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                  AB 1500 (Dickinson) - As Amended:  April 21, 2014

          Policy Committee:                              Governmental  
          Organization Vote:                            19-0

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

           SUMMARY  

          This bill prohibits a seller that delivers products via shipping  
          or mailing from selling or delivering an electronic cigarette  
          (e-cigarette) to a person under 18 years of age. Specifically,  
          this bill:

          1)Requires the delivery seller to use a method of mailing or  
            shipping that satisfies all of the following:

             a)   The consumer placing the delivery sale order, or an  
               adult who is at least 18 years of age, shall sign to accept  
               delivery of the e-cigarette at the delivery address.

             b)   The person who signs to accept delivery of the  
               e-cigarette shall provide a valid, government-issued  
               identification bearing a photograph of the person, proving  
               that the person is 18 years of age or older.

             c)   The delivery seller shall obtain the full name, birth  
               date, and residential address of that person and verifying  
               that information through the use of a  
               commercially-available database consisting primarily of  
               data from government sources and regularly used by  
               government and businesses for the purposes of age and  
               identity verification and authentication.

          2)Specifies that a violation shall be punishable by a fine not  
            exceeding: $200 for the first violation; $500 dollars for the  
            second violation; or $1,000 for a subsequent violation.

          3)Specifies that this bill shall not invalidate any existing  








                                                                  AB 1500
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            ordinance or prohibit the adoption of any future ordinance by  
            a city or county that regulates the distribution of  
            e-cigarettes in a manner that is more restrictive than this  
            bill.

           FISCAL EFFECT  

          Minor nonreimbursable local law enforcement costs, offset to a  
          limited degree by fine revenue.

           COMMENTS  

          1)  Purpose.   Current law prohibits sales of cigarettes and  
            e-cigarettes to minors.  According to the author, this bill  
            updates state law to require an adult to sign for the delivery  
            of e-cigarettes in the same manner as adults must sign for the  
            delivery of traditional cigarettes.

            According to the author, e-cigarettes are an increasingly  
            common source of nicotine for teenagers.  While California  
            barred the sale of e-cigarettes to minors in 2010, the author  
            claims more than half of the states still allow sales to  
            minors.  The Centers for Disease Control published a report on  
            data from the 2011 and 2012 National Youth Tobacco Survey  
            indicating the use of e-cigarettes doubled among middle and  
            high school students between 2011 and 2012, and that an  
            estimated 1.78 million students had used e-cigarettes.

          2)  Independent Database Verification.   According to the author,  
            internet tobacco sellers historically had a difficult time  
            verifying the age of the purchaser.  Consequently, the federal  
            government began requiring age verification for the delivery  
            of tobacco products through the use of a  
            commercially-available database that is regularly used to  
            verify an individual's age.  This bill would extend those age  
            verification procedures to delivery sellers of e-cigarettes  
            and require an adult to sign for the delivery of any  
            e-cigarettes in California when the purchase of e-cigarettes  
            occurred online.

           
          Analysis Prepared by  :    Joel Tashjian / APPR. / (916) 319-2081 











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