BILL ANALYSIS Ó AB 8 X2 Page 1 ASSEMBLY THIRD READING AB 8 X2 (Wood) As Amended September 4, 2015 Majority vote ------------------------------------------------------------------ |Committee |Votes|Ayes |Noes | | | | | | | | | | | | | | | | |----------------+-----+----------------------+--------------------| |Public Health |9-4 |Bonta, Bonilla, |Maienschein, Baker, | | | |Campos, Eduardo |Mayes, Steinorth | | | |Garcia, Levine, | | | | |Santiago, Mark Stone, | | | | |Thurmond, Wood | | | | | | | |----------------+-----+----------------------+--------------------| |Finance |5-3 |Weber, Bloom, |Melendez, Bigelow, | | | |Jones-Sawyer, |Obernolte | | | |McCarty, Ting | | | | | | | | | | | | ------------------------------------------------------------------ SUMMARY: Raises the minimum legal smoking age from 18 to 21; conforms existing law regarding the purchasing, selling, and enforcement of tobacco and tobacco products to reflect the new age limit; and, clarifies that these provisions are not intended to prohibit a local standard from imposing a more restrictive AB 8 X2 Page 2 legal age to purchase or possess tobacco products. Deletes existing penalties applicable when a person under 18 years of age purchases, receives, or possesses certain tobacco products. EXISTING FEDERAL LAW restricts tobacco sales to minors and requires states to vigorously enforce their laws prohibiting the sale and distribution of tobacco products to persons under 18 years of age. EXISTING STATE LAW: 1)Establishes the Stop Tobacco Access to Kids Enforcement (STAKE) Act, which charges the Department of Public Health (DPH) with developing a program to reduce the availability of tobacco products to persons under 18 years of age and specifies that various agencies, including, but not limited to, DPH, the Attorney General, or local law enforcement agencies may enforce the STAKE Act. 2)Provides that primary enforcement responsibilities lie with DPH, and requires DPH to conduct random, onsite sting inspections with the assistance of 15- and 16-year-olds; allows DPH to conduct inspections in response to public complaints; and to investigate illegal sales of tobacco products to minors by telephone, mail or the Internet. 3)Requires DPH to establish requirements that tobacco retailers conspicuously post notices at each point of purchase stating that selling tobacco products to anyone under 18 years of age is illegal and subject to penalties and that all persons selling tobacco products must check the identification of a purchaser who appears to be under 18. AB 8 X2 Page 3 4)Allows an enforcing agency to assess civil penalties, ranging from $400 for a first offense to as much as $6,000, against any person, firm, or corporation that sells, gives, or in any way furnishes any tobacco, cigarette, cigarette papers, or any other instrument or paraphernalia that is designed for the smoking or ingestion of tobacco, based on the number of repeat offenses within a given period. 5)Requires DPH, after a third, fourth, and fifth violation, to notify the State Board of Equalization (BOE) of the violation and for the BOE to then assess an additional civil penalty and to suspend or revoke the sellers' license for a specific amount of time, based on the number of violations in a given period. 6)Prohibits selling, distributing, or giving away tobacco products through the United States Postal Service or any other public or private postal or package delivery service, to any person under the age of 18. Requires a distributor or seller, before providing any tobacco product through any of these means, to verify that the purchaser is 18 years or older. 7)Makes selling, giving, or in any way furnishing any tobacco, cigarette, cigarette paper, or blunts, any other preparation of tobacco, or paraphernalia designed for smoking tobacco to anyone under the age of 18 subject to either a criminal action for a misdemeanor or to a civil action brought by a city attorney, a county counsel, or a district attorney. 8)Makes it a crime, punishable by a fine of $75 or 30 hours of community service work, for a person under 18 years of age to purchase, receive, or possess certain tobacco products. AB 8 X2 Page 4 FISCAL EFFECT: According to the Assembly Finance Committee, this bill would likely result in an ongoing, annual, cost increase of several hundred thousand dollars to support the DPH's expected workload increase associated with enforcement, inspections and surveying of retailers participating in the sale of tobacco products (General fund or the Cigarette and Tobacco Tax Surcharge Fund). Local governments may incur new costs associated with this bill related to crimes and infractions. Under the California Constitution, such costs are not reimbursable by the state. According to the BOE, assuming Fiscal Year (FY) 2016-17 will be the first complete year of the measure's impact, total excise tax and sales tax revenues would decline by $68.4 million for FY 2016-17. Specifically, for FY 2016-17, cigarette excise tax revenue losses are forecast to be $37.6 million, tobacco products excise tax losses would be $5.5 million, and related sales and use tax losses would be $25.3 million. The BOE notes that this revenue estimate does not account for any further changes in economic activity that may or may not result from enactment of the bill. COMMENTS: According to the author, the health care impacts and cost to society of tobacco products has been widely documented and is no longer disputed. The author notes that adolescent brains are more vulnerable to nicotine addiction, and people who reach the age of 21 as non-smokers have a minimal chance of becoming a smoker. The author states that tobacco use results in increased health care costs and changing the legal age will positively influence the adoption rate of tobacco use. The author contends the legal age for tobacco is no more carved in stone than that of alcohol consumption or voting, both of which changed when society determined there was compelling evidence or AB 8 X2 Page 5 need to re-examine those public policies. The author concludes the evidence and need are clear on the legal age for tobacco and now is time for us to make this change. 1)Health effects of smoking. Smoking is a major cause of many deadly health problems heart disease, aneurysms, bronchitis, emphysema, and stroke. Using tobacco can damage a woman's reproductive health and hurt babies. Tobacco use is linked with reduced fertility and a higher risk of miscarriage, early delivery (2)premature birth), and stillbirth. It is also a cause of low birth-weight in infants and has been linked to a higher risk of birth defects and sudden infant death syndrome. Smoking causes 80% of all deaths from chronic obstructive pulmonary disease, and causes stroke and coronary heart disease, the leading causes of death in the United States. Smokers are 30% to 40% more likely to develop type 2 diabetes than nonsmokers, and people with diabetes who smoke are more likely than nonsmokers to have trouble with insulin dosing and with controlling their disease. Smoking causes more than 480,000 deaths each year in the Unites States, or about one in five deaths. The average annual smoking-attributable mortality rate in California for the years 2000-04 was 235 per 100,000. The range across states is 138.3 per 100,000 to 370.6 per 100,000. California ranks 6th lowest per capita among all 50 states in deaths attributed to smoking. If nobody smoked, one of every three cancer deaths in the United States would not happen. 3)Smoking and youth. California monitors smoking rates among high school students using the California Student Tobacco Survey. The 2012 survey showed the percentage of California high school students who reported smoking a cigarette within the previous 30 days was 10.5%, or 297,000 students. Smoking AB 8 X2 Page 6 among high school students in California is declining consistently and is lower than for the rest of the United States. Student smoking rates declined 51% from 2000 to 2012; however, there are substantial differences in student smoking prevalence when examined by race or ethnicity. While rates declined for non-Hispanic Whites, Hispanics, and Asian/Pacific Islanders, the rate for African-Americans increased by 15.9% over this same time period. 4)Youth use of electronic cigarettes (e-cigarettes). According to the January 2015 State Health Officer's report on e-cigarettes, A Community Health Threat, e-cigarette use is rising rapidly. In California, use among young adults ages 18 to 29 tripled in one year. The report notes that while the long-term health impact resulting from use of this product is presently unknown, it is known that e-cigarettes emit at least 10 chemicals that are found on California's Proposition 65 (1986) list of chemicals known to cause cancer, birth defects, or other reproductive harm. A study published July 27, 2015, in the Journal of Pediatrics surveyed almost 2,100 California high school students, and found that one-quarter had tried e-cigarettes. Ten percent were currently using e-cigarettes, and those current users where much more likely than their peers to also smoke cigarettes. E-cigarettes are currently defined in California law as products designed to deliver nicotine or other substances to a user in the form of a vapor. State law also prohibits anyone from selling or furnishing an electronic cigarette to anyone under the age of 18. 5)Effect of raising the minimum legal smoking age. A March 2015 Institute of Medicine Report (IOM), Public Health Implications of Raising the Minimum Age of Legal Access to Tobacco Products, examined the impacts of raising the legal minimum smoking age to 19, 21, and 25. The IOM determined that relative to status quo projected decreases, raising the age to 19 would result in a 3% additional decrease; raising the age to 21, a 12% additional decrease; and raising the age to 25, a AB 8 X2 Page 7 15% additional decrease. The IOM concluded that the age group most impacted by raising the minimum legal age would be 15 to 17 year olds for any of the three ages studied. The IOM argued that increasing the age for tobacco purchase will result in delayed use of such products, which in turn will decrease the prevalence of users. The IOM report stated that raising the smoking age to 21 would result in 200,000 fewer premature deaths and potentially millions of years of life gained for those born between 2000 and 2019. On June 9, 2015, the Santa Clara County Board of Supervisors adopted an ordinance to raise the purchase age for tobacco and electronic smoking products from 18 to 21, effective January 1, 2016. Santa Clara County is the first California county to pass such an ordinance. Supporters of this bill, including the American Heart Association/American Stroke Association, American Cancer Society Cancer Action Network, the California Academy of Preventive Medicine, and the California Optometric Association state tobacco use remains the leading cause of preventable death in the United States, killing more than 400,000 people each year. Supporters note 2,800 youth try cigarettes daily, and many use multiple tobacco products. Supporters point out 90% of tobacco users take up this dangerous habit before the age of 18, but almost no one starts after the age of 25. Supporters conclude raising the legal age for consumption of tobacco products to 21 is predicted to reduce smoking prevalence by 12% and smoking-related deaths by nearly 10% for future generations. The Health Officers Association of California states despite its diminishing prevalence over the last decade, the use of tobacco continues to threaten public health and drain our state's health care resources. Considered to be the leading cause of preventable deaths in the United States, smoking places a heavy economic burden on California, costing our state billions in direct and indirect health expenses from smoking-related illnesses, premature deaths and lost productivity. AB 8 X2 Page 8 The California State Association of Counties (CSAC) notes that many 18-year-olds have social networks that include younger peers since this age group often still attends high school, and older peers are able to buy and supply tobacco products to their minor friends. CSAC concludes, by raising the minimum age to 21, the likelihood of mixed-age minors being in the same social networks decreases, which would likely decrease the chances of the initiation age occurring before 18. Several military and veterans' organizations oppose this bill, including the American Legion-Department of California, the Military Officers Association of America, California Council of Chapters, and the Vietnam Veterans of America-California State Council. The opposition states this bill would be very unfair to our currently serving men and women stationed in California. The opposition notes men and women can serve in our military, putting their lives on the line for the rest of us at age 18, and they should certainly be allowed to buy a legal product. The opposition concludes this is not about tobacco, whether smoking is right or wrong, this is about protecting the rights of our currently serving military and their dependents from over-reaching nanny-state laws. Analysis Prepared by: Lara Flynn / HEALTH / (916) 319-2097 FN: 0002333 AB 8 X2 Page 9