BILL ANALYSIS Ó AB 1500 Page 1 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 Page 2 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 AB 1500 Page 3