BILL ANALYSIS Ó AB 216 Page 1 Date of Hearing: April 22, 2015 ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION Adam Gray, Chair AB 216 Cristina Garcia - As Amended April 13, 2015 SUBJECT: Product sales to minors: vapor products SUMMARY: Prohibits the sale of any device intended to deliver a nonnicotine product in a vapor state, to be directly inhaled by the user, to a person under 18 years of age. Specifically, this bill: 1) Provides it shall be unlawful for a person to sell or otherwise furnish any device intended to deliver a nonnicotine product in a vapor state, to be directly inhaled by the user, to a person under 18 years of age. 2) Specifies that a violation of provision shall be an infraction punishable by a fine not exceeding five hundred dollars ($500) for the first violation, by a fine not exceeding one thousand dollars ($1,000) for the second violation, or by a fine not exceeding one thousand five hundred dollars ($1,500) for a third or subsequent violation. AB 216 Page 2 3) Exempts from the prohibition the sale of a drug or medical device that has been approved by the federal Food and Drug Administration. EXISTING LAW: 1) Prohibits a person from selling or otherwise furnishing an electronic cigarette to a person under the age of 18. 2) Defines "electronic cigarette" as a device that can provide an inhalable dose of nicotine by delivering a vaporized solution. 3) Defines "tobacco product" as any product containing tobacco leaf, including, but not limited to, cigarettes, cigars, pipe tobacco, snuff, chewing tobacco, dipping tobacco, bidis, or any other preparation of tobacco. 4)Requires, under the Stop Tobacco Access to Kids Enforcement Act (STAKE Act), the State Department of Public Health to establish and develop a program to reduce the availability of tobacco products to minors and to enforce those provisions. 5)Authorizes, under the STAKE Act, the adoption of more restrictive local standards that further restrict access to and reduce the availability of cigarette or tobacco products from vending machines or devices or ban the sale entirely. AB 216 Page 3 6) Authorizes the California Department of Public Health (DPH), under the STAKE Act, to assess civil penalties ranging from $400 to $6,000, depending on the number of infractions, against any person, firm, or corporation that sells, gives, or in any way furnishes tobacco products to a person who is under the age of 18. 7) Establishes "smoke-free laws," which prohibit the smoking of tobacco products in various places, including, but not limited to, school campuses, public buildings, places of employment, apartment buildings, day care facilities, retail food facilities, health facilities, and vehicles when minors are present, and makes a violation of some of the prohibitions punishable as an infraction. 8) Requires the Board of Equalization (BOE), under the Cigarette and Tobacco Products Licensing Act (CTPLA), to administer a statewide program to license cigarette and tobacco products manufacturers, importers, distributors, wholesalers, and retailers. Requires a retailer to obtain a separate license for each retail location that sells cigarettes and tobacco products. Requires BOE to suspend or revoke a retailer's license upon notification by DPH of certain STAKE Act violations. Permits BOE to assess various civil penalties for violations of the CTPLA. FISCAL EFFECT: Unknown COMMENTS: Purpose of the bill : According to the author, the intent of this bill is to make it illegal for retail stores to sell AB 216 Page 4 non-nicotine vaping/electronic cigarette devices to anyone under the age of 18. Current law only prevents minors from purchasing vaping/electronic cigarette devices with nicotine cartridges. Even though these devices come without nicotine, it is still a filtration device that can be used for smoking cannabis, nicotine, or other herbal substances. The author declares that e-cigarettes and vape pens often target a younger audience using sweet flavored compounds that carry the names of popular kid's treats such as gummy bears and fruit loops. Although they do not have nicotine, these compounds have been shown to contain other harmful chemicals, masked by the candy-flavored vapor. Minors under the age of 18 years old are now free to purchase and use these products. Retailers have taken the opportunity to market and sell them to minors by promoting flavored cartridges such as caramel, cherry limeade, strawberry, banana bread, papaya, and others. The author maintains, "While some are using e-cigarettes and vape pens as a way to quit smoking, studies suggest that adolescents who use ecigarettes are more likely to progress from experimenting with the product to becoming established smokers. In fact, the number of children using e-cigarettes or vape pens has doubled every year since 2009." The author states, the goal of this bill is "to protect our children who have become prey to vendors with strategically named, non-nicotine products, with fun flavors like 'Kool-Aid' and 'Skittles.' Unlike candy cigarettes, that became socially unacceptable, these products are dangerous for children and act as a gateway to future tobacco use." AB 216 Page 5 Background : What is vaping ? Vaping is defined as the act of inhaling water vapor through a personal vaporizer or electronic cigarette. When users draw on the device, the battery heats the liquid, which is then atomized into an inhalable vapor. Vaping products are available in specialty stores and convenience stores around the US with varying restrictions on purchase by youth under 18. What are electronic cigarettes ? Electronic cigarettes are battery-operated inhalers that consist of a rechargeable, battery-operated heating element, a replaceable cartridge that may contain nicotine or other chemicals, and an atomizer that, when heated, converts the contents of the cartridge into a vapor. The user can then inhale this vapor. The product is often made to look like such products as cigarettes, cigars, and pipes. Electronic cigarettes are sometimes made to look like everyday items such as pens and USB memory sticks. According to the World Health Organization (WHO), electronic nicotine delivery systems, of which electronic cigarettes are the most common prototype, are devices that do not burn or use tobacco leaves but instead vaporize. The main components of the solution, in addition to nicotine when nicotine is present, are propylene glycol, with or without glycerol and flavoring agents. ENDS solutions and emissions contain other chemicals, some of them considered to be toxicants. There are more than 450 brands and more than 7,500 flavors on the market, according to the policy report. There have been an average of 10 new brands entering the market every month for the last two years, a recent Internet survey found. AB 216 Page 6 Electronic cigarettes have been sold in the USA since 2007. The biggest markets are Europe and North America. Sales are banned in 13 of the 59 countries that regulate the devices, the WHO reported, but most of those 13 countries say they are still available because of illicit trade and cross-border Internet sales. Reports have stated that adolescents might be influenced to try e-cigarettes because of how they are priced and promoted. They can be cheaper than traditional cigarettes and may be perceived as safer. Other features, like flavors can also support use in this age group. California Department of Public Health (DPH) Report : DPH's State Health Officer released a report in January 2015, "A Community Health Threat," about e-cigarettes that cites, among other things, the concern about the health risks of e-cigarettes and the growing number of e-cigarettes. Electronic cigarettes poisonings increased from seven in 2012 to 154 in 2014. The State Health Officer stated that there is a high need to educate the public about electronic cigarettes safety concerns and that existing laws currently in place to protect minors and the general public from traditional tobacco products should be extended to cover electronic cigarettes. Are Electronic Cigarettes Safe ? The Food and Drug Administration (FDA) states that the safety and efficacy of electronic cigarettes has not been fully studied. Some of the AB 216 Page 7 uncertainty stems from the wide variety of devices and liquids available, and therefore separate components need to be studied, including the electronic cigarettes device, the e-liquid, the inhaled aerosol, and the exhaled aerosol that may be inhaled secondhand. Electronic cigarettes devices vary in their engineering, battery voltage, and ability to heat the e-liquid, meaning e-liquids can deliver a different aerosol and nicotine dose depending on the device. E-liquids currently have no requirements for labeling. FDA Regulation : In 2008, the FDA sought to regulate e-cigarettes as drug delivery devices by blocking new e-cigarette shipments into the United States. In response, an e-cigarette manufacturer sued the FDA in federal court, claiming that the agency did not have the authority over e-cigarettes as drug delivery devices and therefore could not stop the shipments. In 2010, the federal court ruled in favor of the manufacturer stating that the FDA may not regulate e-cigarettes as drug delivery devices if they are not marketed as tobacco cessation products. However, the court also found that the FDA does have the authority to regulate e-cigarettes as tobacco products. On April 24, 2014, the FDA released proposed regulations. As part of those proposed rules, the FDA would ban the sale of e-cigarettes to minors. In addition, the proposed regulations AB 216 Page 8 would prohibit companies from distributing free e-cigarette samples and prohibit the sale of e-cigarettes through vending machines, unless the vending machine is in a facility that never admits anyone under the age of 18. It has been reported that the FDA is in the process of finalizing these regulations. Policy consideration : The bill is similar to SB 882 (Corbett), Chapter 310, Statutes of 2010 in that it is attempting to make unlawful, for a person to sell or otherwise furnish a "non-tobacco product" to a person under 18 years of age. Related legislation : SB 69 of 2015 (Leno), would recast and broaden the definition of "tobacco product" in current law to include electronic cigarettes as specified; extends current restrictions and prohibitions against the use of tobacco products to electronic cigarettes; and, extends current licensing requirements for manufacturers, importers, distributors, wholesalers, and retailers of tobacco products to electronic cigarettes. SB 69 passed the Senate Health Committee on April 8, 2015. SB 24 (Hill) of 2015, would extend Stop Tobacco Access to Kids Enforcement Act requirements to the sale of electronic cigarettes (e-cigs), distinct from the definition of tobacco products, and requires enforcement, as specified, to begin July 1, 2016; extends current smoke-free laws and penalties to e-cigs; requires e-cig cartridges to be in childproof packaging, as defined; broadens the current definition of e-cigs, as specified; and requires all retailers of e-cigs to apply for licensure to sell e-cigs, as specified. SB 24 passed the Senate AB 216 Page 9 Health Committee on April 15, 2015. SB 151 (Hernandez) of 2015, would raise the legal age to purchase tobacco products to 21. SB 151 passed the Senate Health Committee on April 8, 2015. AB 768 (Thurmond) of 2015, would prohibit the use of electronic cigarettes in any baseball stadium, including the dugout and locker rooms. AB 768 passed the Assembly Committee on Arts, Entertainment, Sports, Tourism, and Internet Media on April 7, 2015. AB 48 (Stone) of 2015, would prohibit a person or entity from selling, giving, or in any way furnishing to another person of any age in this state a cigarette utilizing a single-use filter made of any material, including cellulose acetate. SB 48 is pending in the Assembly G.O. Committee. Prior Legislation : SB 648 (Corbett), 2013-2014 Legislative Session. Would have prohibited the offer, sale, or distribution of electronic cigarettes (e-cigarettes) from a vending machine or other coin or token operated mechanical device or appliance, unless that machine or appliance is located on a premises issued AB 216 Page 10 an on-sale public license to sell alcoholic beverages and is at least 15 feet from the entrance to that premises. (Failed Passage in Assembly Appropriations Committee). AB 1500 (Dickinson), 2013-2014 Legislative Session. Would have prohibited 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. (Failed Passage in Assembly Appropriations Committee) AB 320 (Nazarian), 2013-2014 Legislative Session. Would have prohibited the use of tobacco and nicotine products at any time in a county office of education, charter school, or school district-owned or leased buildings, on school or district property, and in school or district vehicles. The measure also clarifies that charter schools are eligible participants in the Tobacco Use Prevention and Education program. (The bill was held on suspense by the Assembly Appropriations Committee) SB568 (Steinberg) Chapter 336, Statues of 2013. Prohibited an operator of an Internet Web site, online service, online application, or mobile application, as specified, from marketing or advertising electronic cigarettes to a minor. AB 216 Page 11 SB 882 (Corbett), Chapter 310, Statutes of 2010. Made it unlawful, to the extent not preempted by federal law, for a person to sell or otherwise furnish an e-cigarette to a person under 18 years of age. SB 400 (Corbett), 2009-2010 Legislative Session. Would have defined e-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 to halt the sale, distribution, or offering of e-cigarettes as part of its enforcement of the STAKE Act. (Vetoed by the Governor) SB 1766 (Ortiz), Chapter 686, Statutes of 2002. Required that all sales of cigarettes in the State be vendor-assisted, face-to-face sales unless the seller receives valid identification, that the purchaser is over 18, the product is shipped to the address provided on the identification, the sales is at least for two cartons, and the seller either provides the State Board of Equalization with all taxes due on the sale or includes with the shipment a notice that the purchaser is responsible for state taxes. AB 1830 (Frommer), Chapter 685, Statutes of 2002. Prohibited the sales of tobacco products to minors through the United AB 216 Page 12 States Postal Service or through any other public or private postal or package delivery service, and imposes specified age-verification requirements on tobacco product sellers or distributors. SB 1927 (Hayden), Chapter 1009, Statutes of 1994. Enacted the STAKE Act to address the increase in tobacco sales to minors in California and fulfill the federal mandate that prohibited the sale of cigarettes and tobacco products to minors. REGISTERED SUPPORT / OPPOSITION: Support Breast Cancer Fund California Narcotic Officers Association California School Employees Association Opposition AB 216 Page 13 None on file Analysis Prepared by:Eric Johnson / G.O. / (916) 319-2531