BILL ANALYSIS                                                                                                                                                                                                    Ó






                             SENATE JUDICIARY COMMITTEE
                             Senator Noreen Evans, Chair
                              2013-2014 Regular Session


          SB 648 (Corbett)
          As Amended April 22, 2013
          Hearing Date: April 30, 2013
          Fiscal: Yes
          Urgency: No
          RD


                                        SUBJECT
                                           
              Electronic Cigarettes: Restriction of Use and Advertising

                                      DESCRIPTION  

          This bill would expand various provisions of existing law that  
          regulate the use of tobacco products or cigarettes to also apply  
          to electronic cigarettes.  This bill would also provide that the  
          existing prohibition against advertising of tobacco products in  
          public buildings shall include the advertising of electronic  
          cigarettes. 

                                      BACKGROUND  

          Since 1994, California has banned smoking in all workplaces,  
          including all restaurants and in 1998 this smoking ban was  
          extended to bars.  Current law prohibits public employees and  
          members of the public from smoking a cigarette or tobacco  
          product inside a public building or within 20 feet of any door,  
          window, or air intake of any government building within the  
          state, including buildings owned or occupied by any government  
          entity, including public universities, or public buildings  
          leased to private entities. Additionally, it is an infraction  
          for a person to smoke within 25 feet of a playground or tot lot  
          sandbox or for a person to smoke in the presence of a minor  
          while in a moving vehicle.  

          Those existing bans are supported by an overwhelming amount of  
          evidence that demonstrates cigarette smoke can cause or  
          exacerbate a wide variety of adverse health effects, such as  
          asthma, respiratory infections, and even cancer, among other  
          things.  Those health effects apply not only to those persons  
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          smoking the cigarettes, but also to those subjected to  
          secondhand smoke.  

          In order to help reduce the number of new smokers, the state has  
          also taken significant steps to ban advertising of cigarettes or  
          tobacco products in public buildings, and near schools.  (See  
          Gov. Code Sec. 19994.35 (banning tobacco product advertising in  
          state-owned or state-occupied buildings, except as specified);  
          see also Bus. & Prof. Code Sec. 22961 (banning tobacco product  
          advertisements near schools, as specified).)  

          In recent years, the use of electronic cigarettes (e-cigarettes)  
          has become more and more prevalent.  E-cigarettes, unlike  
          cigarettes, are "vaped" instead of "smoked." Many people attest  
          to using these e-cigarettes to overcome their addiction to  
          cigarettes, though the U.S. Food and Drug Administration (FDA)  
          does not currently list these as a smoking cessation device.   
          (See FDA 101: Smoking Cessation Products (Dec. 2012)  
          <  http://www.fda.gov/downloads/ForConsumers/ConsumerUpdates/UCM331 
          925.pdf  > [as of Apr. 18, 2013].)  The FDA also acknowledges a  
          lack of conclusive evidence on either side of the e-cigarette  
          science.  "As the safety and efficacy of e-cigarettes have not  
          been fully studied, consumers of e-cigarette products currently  
          have no way of knowing: [1] whether e-cigarettes are safe for  
          their intended use; [2] how much nicotine or potentially harmful  
          chemicals are being inhaled during use, or [3] if there are any  
          benefits associated with using these products." (FDA News &  
          Events, Electronic Cigarettes (e-cigarettes) (Oct. 9, 2012)  
          <  http://www.fda.gov/newsevents/publichealthfocus/ucm172906.htm  >  
          [as of Apr. 19, 2013].)   

          This bill would add "electronic cigarettes" to various  
          prohibitions against smoking in certain places, in order to  
          similarly prohibit the vaping of e-cigarettes.  Among other  
          things, the bill would also expand the ban on cigarettes  
          advertising in public buildings to e-cigarettes as well.

          This bill was approved by the Senate Committee on Health on  
          April 17, 2013 by a vote of 6-2.  

                                CHANGES TO EXISTING LAW
           
          1.    Existing law  prohibits the smoking or use of cigarettes or  
            other tobacco products in or nearby various places, as  
            specified, including among other places: schools, public  
            buildings, state-owned vehicles, workplaces, private  
                                                                      



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            residences licensed as a family day care home, licensed day  
            care centers, playgrounds, tot lot sandbox areas, ice storage  
            and processing areas, nonprofit charitable temporary food  
            facilities, passenger railroad or airline carriers, or youth  
            buses.  Existing law provides for various definitions relating  
            to smoke, smoking, cigarettes or tobacco products, among other  
            things in relation to the aforementioned prohibitions.   (See  
            Ed. Code Sec. 48901(a); Gov. Code Secs. 7596(a)(3), 7597;  
            Health & Saf. Code Secs. 1596.795, 110995(b), 114332.3,  
            114332.3(f), 104495(b), 104495(a)(4), 104495(a)(5); Labor Code  
            Sec. 6404.5(a), 6404.5(b), 6404.5(d)(4); Pub. Util. Code Secs.  
            561(a), 561(c), 99580(a), 99580(b)(4); Veh. Code Sec.  
            12523(d)(2).)

             Existing law  defines electronic cigarette as a device that can  
            provide an inhalable dose of nicotine by delivering a  
            vaporized solution.  (Health & Saf. Code Sec. 119405(b).)  
             This bill  would add electronic cigarettes, as defined under  
            existing law, throughout the above existing law provisions, as  
            specified. 

          2.    Existing law  , the U.S. Constitution, provides that Congress  
            shall make no law . . . abridging the freedom of speech, or of  
            the press, or the right of the people peaceably to assemble,  
            and to petition the government for a redress of grievances.   
            (U.S. Const., 1st Amend., as applied to the states through the  
            14th Amendment's Due Process Clause; see Gitlow v. New York  
            (1925) 268 U.S. 652; see also Cal. Const. art. I, Sec. 2,  
            which states a law may not restrain or abridge liberty of  
            speech or press.) 

             Existing federal case law  provides a four prong test by which  
            to determine whether a regulation of commercial speech is  
            consistent with the First Amendment as follows: (1) the speech  
            must be about a lawful activity and cannot be false or  
            misleading; (2) the government must have a substantial  
            interest; (3) the law must directly advance that interest; and  
            (4) the law must be no more extensive than necessary to serve  
            that interest.  (Central Hudson Gas & Elec. Corp. v. Public  
            Service Commission (1980) 447 U.S. 559, 566.)  

             Existing law  provides that no tobacco product advertising  
            shall be allowed in any state-owned and state-occupied  
            building excepting advertising contained in a program,  
            leaflet, newspaper, magazine, or other written material  
            lawfully sold, brought, or distributed within a building.  
                                                                      



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            Existing law defines advertising for these purposes as the  
            display of any poster, sign or other written or visual  
            material that is intended to communicate commercial  
            information or images to the public.  Existing law defines  
            tobacco product to mean any product containing tobacco, as  
            specified, including, but not limited to, cigarettes, loose  
            tobacco, cigars, snuff, chewing tobacco, or any other  
            preparation of tobacco.  (Gov. Code Sec. 19994.35.)  

             This bill  would amend the above to specify that "no tobacco  
            product advertising" shall include electronic cigarette  
            advertising. 

          3.    Existing federal law  , the Family Smoking Prevention and  
            Tobacco Control Act (Tobacco Control Act or TCA), provides the  
            Food and Drug Administration (FDA) with authority to regulate  
            tobacco products, as specified.  (21 U.S.C. Sec. 387 et seq.)   
            Existing federal law, the TCA, prohibits any state or  
            political subdivision of a state from establishing or  
            continuing in effect with respect to a tobacco product any  
            requirement which is different from, or in addition to, any  
            requirement under specified provisions relating to tobacco  
            product standards, premarket review, adulteration,  
            misbranding, labeling, registration, good manufacturing  
            standards, or modified risk tobacco products.  The TCA,  
            however, also contains a saving clause that allows states to  
            enact tougher laws relating to the sale, distribution,  
            possession, information reporting to the State, exposure to,  
            access to, the advertising and promotion of, or use of,  
            tobacco products by individuals of any age, or relating to  
            fire safety standards for tobacco products.  (21 U.S.C. Sec.  
            387p.) 

             Existing federal law  , the Federal Cigarette Labeling and  
            Advertising Act (FCLAA), states the policy of Congress to  
            establish a comprehensive federal program to deal with  
            cigarette labeling and advertising with respect to any  
            relationship between smoking and health, as specified. The  
            FCLAA prohibits any requirement or prohibition based on  
            smoking and health from being imposed under state law with  
            respect to the advertising or promotion of any cigarettes the  
            packages of which are labeled in conformity with the FCLAA.  
            Existing law, however, provides a savings clause whereby a  
            state or locality may enact statutes and promulgate  
            regulations, based on smoking and health, that take effect  
            after the effective date of the TCA, imposing specific bans or  
                                                                      



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            restrictions on the time, place, and manner, but not content,  
            of the advertising or promotion of any cigarettes. (15 U.S.C.  
            Secs. 1331, 1334.) 

             This bill  would state the intent of the Legislature to  
            regulate the use of electronic cigarettes, as defined under  
            existing law, to the same extent and in the same manner as  
            cigarettes and other tobacco products, to the extent not  
            preempted by federal law. 

          4.    Existing law  codifies several legislative findings and  
            declarations related to smoking of tobacco products in the  
            workplace.  (Labor Code Sec. 6404.5(a).)

             This bill  would expand those legislative findings and  
            declarations to electronic cigarettes, as defined under  
            existing law. 

          5.    Existing law  codifies that the Legislature finds and  
            declares that tobacco smoke is a hazard to general public's  
            health.  (Health & Saf. Code Sec. 118875; see also Health &  
            Saf. Code Sec. 118950 for findings on to the harms of smoking  
            and indoor air.)

             This bill  would codify that the Legislature finds and declares  
            that the use of electronic cigarettes, as defined, is a hazard  
            to the health of the general public.  This bill would declare  
            that any reference to, or prohibition of, the smoking of  
            tobacco, as specified shall also be construed to refer to the  
            use of electronic cigarettes. 

                                        COMMENT
           
           1.Stated need for the bill  

          According to the author: 

            One of the most controversial issues affecting the regulation  
            of electronic cigarettes has been whether to regulate them as  
            drug delivery devices or tobacco products.  In 2010,  
            e-cigarette manufacturers sued the FDA to prevent electronic  
            cigarettes from being regulated in as a drug device.  In  
            December 2010, the U.S. Court of Appeals for the D.C. Circuit  
            issued a decision in Sottera [Inc. v. Food and Drug  
            Administration], stating that e-cigarettes and other products  
            made or derived from tobacco are not drugs, devices, or  
                                                                      



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            combination products, unless they are marketed for therapeutic  
            proposes.  The decision also stated that the FDA can regulate  
            them as tobacco products under the historic Tobacco Control  
            Act of 2009.  

            E-cigarette manufacturers won the lawsuit and the right to  
            keep selling their product as type of tobacco product.  They  
            are, however, now subjected to the Tobacco Control Act.  A  
            number of state and local governments have already passed  
            legislation to restrict the sale, marketing, and use of  
            e-cigarettes.  Many of these provisions are included in  
            smoke-free laws.  

            Existing law restricts/prohibits the smoking of tobacco  
            products in various places such as residential dwelling units,  
            day care facilities, school campuses, public buildings, places  
            of employment, day care facilities, retail food facilities,  
            and health facilities.  SB [648] would include e-cigarettes in  
            existing smoke-free laws.  

           2.Commercial speech
           
          This bill, among other things, would extend the existing  
          prohibitions against advertising of tobacco products in state  
          owned and state occupied buildings to the advertising of  
          electronic cigarettes.  Although that prohibition does restrict  
          commercial speech, such a restriction can be upheld if it meets  
          the appropriate constitutional test, as articulated by the  
          United States Supreme Court.

          While commercial speech is a type of content-based restriction  
          that ordinarily receives strict scrutiny analysis under the  
          First Amendment jurisprudence of the U.S. Supreme Court, the  
          Supreme Court has held that the First Amendment accords it  
          lesser protection than other constitutionally guaranteed  
          expression.  This is in part because, unlike other varieties of  
          speech, speech proposing a commercial transaction occurs in an  
          area traditionally subject to governmental regulation.  (Central  
          Hudson Gas & Elec. Corp. v. Public Service Commission (1980) 447  
          U.S. 557, 562, 563.)  Moreover, only truthful, non-misleading  
          speech is protected by the First Amendment as commercial speech.  
           The protection accorded to commercial speech is based on the  
          recognition that the free flow of information is important so  
          that people can make informed decisions; that implicit in the  
          right of speech is a right to listen.   

                                                                      



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          In Central Hudson Gas & Elec. Corp. v. Public Service Commission  
          (1980), the U.S. Supreme Court articulated a four-part test by  
          which commercial speech regulations are evaluated for  
          constitutionality.  This test asks: (1) whether the expression  
          concerns lawful activity and is not misleading; (2) whether the  
          asserted governmental interest is substantial; (3) whether the  
          regulation directly advances the governmental interest asserted;  
          and (4) whether it is not more extensive than is necessary to  
          achieve that interest. 

          Accordingly, the proposed prohibition against advertising  
          electronic cigarettes in state-owned and state-occupied  
          buildings must meet that four-part test to pass constitutional  
          review.  In applying the first prong of the Central Hudson test,  
          the bill involves the restriction of a lawful and non-misleading  
          activity, insofar as the advertising of a lawful product  
          (e-cigarettes) is not in and of itself unlawful.  The asserted  
          governmental interest here, according the author, is to  
          strengthen the state's existing smoke free laws and provide  
          consistent regulation with regards to the use of e-cigarettes  
          given associated health risks.  Arguably, the state also has an  
          interest in preventing advertisements that could be seen to  
          promote smoking on state property, particularly where children,  
          who generally may not be able to differentiate between  
          cigarettes and e-cigarettes, may be present.  This bill would be  
          directly aimed at those interests by regulating e-cigarettes in  
          similar fashion as tobacco products or cigarettes.  

          As with most commercial speech regulations, the ultimate  
          determination of constitutionality may hinge upon the fourth  
          prong, which over the years has evolved from an  
          intermediate-scrutiny (is it a reasonable fit) analysis to a  
          more strict scrutiny-like (is it narrowly tailored) analysis.   
          Recent Supreme Court jurisprudence suggests that while the  
          regulation chosen does not have to be the least restrictive  
          alterative, it must use a means that is narrowly tailored to  
          achieve the desired objective.  (See e.g. Greater New Orleans  
          Broadcasting Assn. v. U.S. (1999) 527 U.S. 173 and Thompson v.  
          Western States Med. Center (2002) 535 U.S. 357, compared to  
          Board of Trustees of Southern University of New York v. Fox  
          (1989) 492 U.S. 469.)  

          Given that this bill focuses on an expanding existing provision  
          to also encompass e-cigarettes, as opposed to creating separate  
          and potentially broader advertising regulations for e-cigarettes  
          or banning advertisement of e-cigarettes completely (which would  
                                                                      



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          certainly ebb the free flow of information), it appears that the  
          bill would arguably be a narrowly tailored means to achieve the  
          desired objective. 

           3.Federal preemption 

          The Supremacy Clause of Article VI of the U.S. Constitution  
          establishes that wherever there is a conflict between federal  
          and state law, the U.S. Constitution, federal statutes, and U.S.  
          Treaties are "the supreme law of the land" and therefore take  
          precedence.  Federal preemption of state law becomes an issue  
          where either a federal law expressly preempts (i.e. precludes)  
          state or local law, or where preemption is implied by a clear  
          congressional intent to occupy the whole field. 

          In 2009, the federal government enacted the Family Smoking  
          Prevention and Tobacco Control Act (TCA) to provide the FDA with  
          comprehensive authority to regulate the manufacturing,  
          marketing, and sale of tobacco products.  In addition to  
          granting the FDA this broad authority, the TCA included a  
          savings clause whereby Congress expressly allows states to enact  
          tougher laws relating to the sale, distribution, possession,  
          information reporting to the state, exposure to, access to, the  
          advertising and promotion of, or use of, tobacco products by  
          individuals of any age, or relating to fire safety standards for  
          tobacco products. (21 U.S.C. Sec. 387p(a)(2)(B).)   Also  
          important for the purpose of this bill's provision related to  
          advertising, the TCA also lessened the federal preemption of  
          state regulations of cigarette advertising in the Federal  
          Cigarette Labeling and Advertising Act by allowing states to  
          restrict the time, place, and manner (but not content) of  
          cigarette advertisements.  As a result, since the enactment of  
          the TCA, states are no longer prohibited from restricting  
          cigarette advertising and promotion specifically based on  
          concerns related to smoking and health.  (15 U.S.C. 1334(c).)   
          Additionally, in 2010, the Court of Appeals for the District of  
          Columbia ruled, in part, that "the FDA has authority to regulate  
          customarily marketed tobacco products-including  
          e-cigarettes-under the Tobacco Act."  (Sottera Inc. v. FDA  
          (2010) 627 F.3d 891, 899.)  This decision arguably brings state  
          regulations on electronic cigarettes within the purview of the  
          TCA as well.

          In opposition to this bill, the Electronic Cigarette Industry  
          Group raises an issue that the FDA is to begin rulemaking this  
          month to regulate electronic cigarettes under the TCA and that  
                                                                      



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          it would be prudent for the Legislature to reserve action until  
          those rules are promulgated.  

          Staff notes, however, that even if the FDA is to promulgate  
          regulations as directed under the TCA, the savings clause of the  
          TCA makes explicitly clear that Congress did not intend to  
          occupy the whole field and prohibit all state regulations.   
          Moreover, the provisions of this bill relating to the  
          advertising of e-cigarettes and extending existing regulations  
          of smoking cigarette or other tobacco or nicotine products in  
          various places appear to fall within the scope of the FCLAA and  
          TCA savings clauses described above. Ultimately, this bill  
          states the intent of the Legislature to regulate the use of  
          electronic cigarettes, as otherwise defined by the bill, to the  
          same extent and in the same manner as cigarettes and other  
          tobacco products, to the extent not preempted by federal law.   
          (Emphasis added.)  

           4.Author's clarifying and technical amendments
           
          The following clarifying amendments are offered by the author:

             Author's amendments
             
            On page 7, lines 31-32, strike "including an electronic  
            cigarette, as defined in subdivision (b) of Section 119405"

            On page 7, line 35, after "electronic cigarette" insert ", as  
            defined in subdivision (b) of Section 119405"

            On page 11, line 37, strike "is" and insert "may be"

            On page 12, line 32, after insert quotation marks surrounding  
            "smoking of tobacco products" 




           5.Opposition arguments  

          Approximately 40 individuals have written in opposition to this  
          bill as of the time of this analysis.  One such individual  
          writes, that:
           
            All evidence to date shows that the low health risk associated  
            with e-cigarettes is comparable to other smokeless nicotine  
                                                                      



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            products.  I smoked cigarettes for thirty years and have tried  
            to quite numerous times using hypnosis, the patch, nicotine  
            gum, Wellbutrin, and SmokEnders, and I was unable to quit.   
            The use of an e-cigarette is the only option that has kept me  
            from smoking tobacco, and I have now been smoke-free for over  
            six months.  E-cigarette use is easy to distinguish from  
            actual smoking.  Although some e-cigarettes resemble real  
            cigarettes, many do not.   [ . . . ]  It is easy to tell when  
            someone lights a cigarette, from the smell of smoke.   
            E-cigarette vapor, on the other hand, is practically odorless  
            and generally any detectable odor is not unpleasant and smells  
            nothing like smoke.  The ability to use electronic cigarettes  
            in public spaces will actually improve public health by  
            inspiring other smokers to switch.  

          This sentiment is echoed in numerous letters of opposition from  
          other constituents.  Another individual argues in opposition  
          that this bill will (erroneously) send a message that vaping is  
          as much of a risk as smoking.  Relatedly, another individual  
          adds that putting restrictions on e-cigarettes will actually  
          cause less people to quit cigarettes, which are known to be  
                   harmful.  Finally, yet another individual argues in opposition  
          that:  "There is quite a bit of prejudice in regards to  
          e[-]cigarette usage because it looks a lot like smoking.   
          Passing this bill without [examining] the facts and benefits of  
          e[-] cigarettes would be devastating to the local shops and  
          multitudes of smokers who might quit if they could only visit a  
          shop and sample juices until they find one that they are willing  
          to trade their regular cigarettes for."


           Support  :  California Black Health Network; California Medical  
          Association 

           Opposition  :  Electronic Cigarette Industry Group (ECIG); 39  
          individuals

                                        HISTORY
           
           Source  :  Author

           Related Pending Legislation  :  AB 320 (Nazarian) would prohibit  
          the use of tobacco and nicotine products, as specified, and  
          would include in its prohibition nicotine-delivery devices, such  
          as electronic cigarettes.  That bill is in the Assembly  
          Appropriations Committee. 
                                                                      



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           Prior Legislation  :

          SB 882 (Corbett, Ch. 312, Stats. 2010) was an urgency measure  
          that made it unlawful, to the extent it is not preempted by  
          federal law, to sell or otherwise furnish electronic cigarettes  
          to a person under the age of 18 punishable as an infraction, as  
          specified. 

          SB 400 (Corbett, 2009) would have defined electronic cigarettes  
          as drugs under state law, making them subject to the Sherman  
          Food, Drug, and Cosmetic Law, and would have allowed the  
          Department of Public Health (DPH) to halt the sale,  
          distribution, or offering of electronic cigarettes as part of  
          its enforcement of the Stop Tobacco Access to Kids Enforcement  
          (STAKE) Act.  This bill was vetoed.  

          SJR 8 (Corbett, 2009) would have requested that the federal Food  
          and Drug Administration (FDA) prohibit all sales of electronic  
          cigarettes until the FDA has found them to be safe.  That bill  
          died without hearing in the Assembly Governmental Organization  
          Committee. 

           Prior Vote  :  Senate Health Committee (Ayes 6, Noes 2) 

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