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