BILL ANALYSIS                                                                                                                                                                                                    

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          Date of Hearing:  September 8, 2015 

                            ASSEMBLY COMMITTEE ON FINANCE

                                Shirley Weber, Chair

          ABX2 9  
          (Thurmond) - As Amended August 27, 2015

          SUBJECT:  Tobacco use programs.

          SUMMARY:  Prohibits the use of tobacco and other nicotine  
          products at any time in a county office of education, charter  
          school, or school district building, on school or district  
          property, and in school or district vehicles. Also clarifies  
          that charter schools are eligible for tobacco use prevention  
          education (TUPE) program funds.  Specifically, this bill:  

             1    Requires all school districts, charter schools, and  
               county offices of education to prominently display signs at  
               all entrances to school property stating "Tobacco use is  
             2    Specifies that the prohibition of tobacco includes, but  
               is not limited to, smokeless tobacco, snuff, chew, clove  
               cigarettes, and other nicotine delivery devices, such as  
               electronic cigarettes.

             3    Clarifies that, under the TUPE program, the prohibition  
               of tobacco does not include prescription products, nicotine  
               patches or nicotine gum.


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          FISCAL EFFECT:  

             1)   Potential state reimbursable mandate costs, in the range  
               of $130,000 to $165,000 (Proposition 98/GF) due to the  
               requirement that schools post signs at all entrances  
               notifying the public that tobacco use is prohibited. Under  
               current law, school districts and county offices of  
               education can apply for grant funding under the TUPE  
               program if they have a tobacco-free policy and post signs  
               stating "tobacco use is prohibited" at all entrances to  
               school property. This bill would require all school  
               districts, charter schools and county offices of education  
               to have tobacco-free policies with signs displayed.
             2)   Potential cost pressure on existing TUPE funding due to  
               the possible increase in participating charter schools.  
               Currently charter schools are eligible to receive TUPE  
               funds, however, participation among charter schools is low.  
               This bill specifically states that charter schools are  
               eligible for TUPE funding, which could result in increased  


             1    Purpose. According to the author, this bill will protect  
               students from tobacco and provide school personnel a  
               smoke-free environment. The author notes that participation  
               in the TUPE program is low, meaning that many schools are  
               not required to ban tobacco on their campuses. This bill  
               requires all school districts, charter schools and county  
               offices of education to ban tobacco on school property in  
               an effort to reduce tobacco use among youth.
             2    Education Mandates. School districts and county offices  
               of education are eligible to receive reimbursement for any  
               state mandated activity through either the traditional  
               mandate claim reimbursement process, or the K-12 education  
               mandates block grant. Charter schools cannot seek  


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               reimbursement through the mandate claim process, but are  
               eligible to receive block grant funding. Under the mandates  
               block grant, schools receive a block grant for all mandated  
               activities and do not have to file individual claims, which  
               can be a time-consuming and burdensome process. Most school  
               districts and county offices of education opt to receive  
               block grant funding and virtually all charter schools  
               choose this option.

               This bill requires all schools to post signs banning  
               tobacco at all school entrances, which could be considered  
               a state mandate. If the Commission on State Mandates  
               determines the activities in this bill to be a reimbursable  
               state mandate, the Legislature could consider adding the  
               mandate to the K-12 education mandates block grant through  
               the annual budget process.

             3    Proposition 99. Proposition 99, passed by voters in  
               1988, increased the state cigarette tax by $0.25 per pack  
               and added an equivalent amount to other tobacco products.  
               This revenue is used to support various tobacco related  
               programs. Of the Proposition 99 revenue, 20 percent is  
               deposited in the Health Education Account (HEA), which  
               funds both community and school-based health education  
               programs to prevent and reduce tobacco use. The HEA is  
               jointly administered by the California Tobacco Control  
               Program (CTCP) and the California Department of Education  
               (CDE). The CDE's portion of the HEA is used for the  
               school-based TUPE program. 
               The 2015 Budget estimates HEA revenue will be $64.4 million  
               for 2015-16. Of this amount, the CDE received $16.4 million  
               for the TUPE program, which includes funding for state  
               administration ($1.2 million), county offices of education  
               ($3.7 million) and local assistance ($11.5 million). Local  
               assistance grants for the TUPE program totaled $11.6  
               million for 2015-16. Since grant awards exceeded estimated  
               revenue for 2015-16, the CDE used carryover funds from the  


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               prior year.

             4    Tobacco Use Prevention Education (TUPE) program. The  
               TUPE program provides funding for tobacco prevention  
               programs in grades six through twelve through a competitive  
               application process. The CDE administers TUPE funding based  
               on two tiers. Tier one grantees receive $1,500 per year for  
               three years to enforce a tobacco-free policy, complete the  
               Healthy Kids survey and post signs prohibiting tobacco at  
               all entrances to school property. Tier two funding is based  
               on a formula of $54 per unit of student average daily  
               attendance to comply with the requirements under tier one  
               and administer additional tobacco-use prevention  
               According to the CDE, there are currently 327 school  
               districts, 40 county offices of education and only 4  
               charter schools participating in the TUPE program. This  
               bill would require all schools to prohibit tobacco use on  
               school property and clarifies that charter schools are  
               eligible to receive TUPE funding, which could increase  
               participation in the program. 


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          Health Officers Association of California (HOAC)

          American Lung Association in California

          California Medical Association

          Children Now


          None received  
          Analysis Prepared by:Katie Hardeman / FINANCE /916-319-2099


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