BILL ANALYSIS Ó SENATECOMMITTEE ON HEALTH Senator Ed Hernandez, O.D., Chair BILL NO: SB 24 --------------------------------------------------------------- |AUTHOR: |Hill | |---------------+-----------------------------------------------| |VERSION: |April 6, 2015 | --------------------------------------------------------------- --------------------------------------------------------------- |HEARING DATE: |April 15, 2015 | | | --------------------------------------------------------------- --------------------------------------------------------------- |CONSULTANT: |Reyes Diaz | --------------------------------------------------------------- SUBJECT : Electronic cigarettes: licensing and restrictions SUMMARY : Extends 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. Existing law: 1.Authorizes the California Department of Public Health (DPH), under the Stop Tobacco Access to Kids Enforcement (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. 2.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. 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. SB 24 (Hill) Page 2 of ? 4.Defines "electronic cigarette" as a device that can provide an inhalable dose of nicotine by delivering a vaporized solution. Prohibits a person from selling or otherwise furnishing an electronic cigarette to a person under the age of 18. 5.Requires the Board of Equalization (BOE), under the Cigarette and Tobacco Products Licensing Act, 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 Licensing Act. This bill: 1.Extends the requirements of the STAKE Act to the sale of e-cigs, distinct from the definition of tobacco products, and requires DPH to enforce the provisions related to e-cigs beginning July 1, 2016. Makes it a crime if retailers fail to post a notice on or after July 1, 2016, at each point of purchase that states the sale of e-cigs to minors is illegal. 2.Adds e-cigs to current smoke-free laws and makes the use of them in restricted areas a crime, which is subject to the same penalties as tobacco products. Requires establishments that are currently required to post "no smoking" signs to also post "no using electronic cigarettes" signs. 3.Requires all cartridges for e-cigs and solutions for filling or refilling an e-cig to be in childproof packaging, defined as packaging that contains elements, including, but not limited to, safety caps or blister packs, designed to protect children from being able to open and ingest the contents. 4.Broadens the current definition of e-cigs to include any aerosol or vapor cartridge or other container of a solution, that may or may not contain nicotine, that is intended to be used with or in an e-cig. 5.Requires retailers of e-cigs to apply for a license from BOE to sell e-cigs beginning July 1, 2016, and to display the license at each retail location by September 30, 2016. SB 24 (Hill) Page 3 of ? Requires BOE to administer a statewide program to license e-cig retailers. FISCAL EFFECT : This bill has not been analyzed by a fiscal committee. COMMENTS : 1.Author's statement. According to the author, youth use of e-cigs is on the rise. According to the National Institute on Drug Abuse, youth use is now higher than that of traditional cigarettes: 17.1 percent of 12th graders reported using an e-cig in the past month, while only 13.6 percent reported smoking a traditional cigarette in the past month. Nevertheless, California's premier law to prevent youth access to cigarettes and other tobacco products-STAKE Act-does not extend to e-cigs. E-cig retailers also do not have to be licensed by the state. Additionally, an increasing number of children in California are being poisoned by e-cig liquids. In 2012, there were 28 calls to the California Poison Control System for liquid nicotine poisoning; in 2013, there were 106 calls; and in 2014, there were 243 calls. At least 60 percent of calls were for children 5 years old or younger. Nothing in current law requires that e-cig liquids be equipped with child proof packaging. Children can easily open and ingest the often fruit flavored e-cig liquids. Nicotine liquids can be toxic even if ingested in small amounts-just one teaspoon of liquid nicotine can be deadly. 2.E-cigs. According to a 2014 report by the World Health Organization (WHO), e-cigs are battery heated devices that deliver nicotine by heating solution that users inhale. E-cig cartridges (e-liquids) contain liquid nicotine, and chemicals introduced into a liquid vehicle produce aromas and various flavors such as tobacco, chocolate mint, cotton candy, gummy bear, and grape. The concentration of nicotine varies both across different manufacturers and sometimes within the same brand. The report states that although some e-cigs are shaped to look like conventional cigarettes, they also take the form of everyday items like pens and USB flash drives. 3.Are e-cigs safe? The Food and Drug Administration (FDA) states that the safety and efficacy of e-cigs has not been fully studied. Some of the uncertainty stems from the wide variety of devices and liquids available, and therefore separate components need to be studied, including the e-cig device, the SB 24 (Hill) Page 4 of ? e-liquid, the inhaled aerosol, and the exhaled aerosol that may be inhaled secondhand. E-cig 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, and The National Institute of Health (NIH) states that there is poor correlation between labeled and actual nicotine content. A July 2014 report, "Electronic nicotine delivery systems (ENDS)," by the WHO stated that existing evidence shows e-cigs do not produce merely a water vapor but an aerosol that poses serious threats to adolescents and fetuses. The aerosol inhaled by smokers contains ultra-fine particulate matter that gets trapped in the small airways of the lungs. According to a 2013 study entitled "Does electronic cigarette consumption cause passive vaping?," aerosol exhaled by e-cig smokers contains nicotine, formaldehyde, and other chemicals, although at much lower levels than emissions from conventional cigarettes, and nicotine metabolites were found in nonsmokers exposed to the exhaled aerosol. A 2012 publication from Reproductive Toxicology showed a wide variety of toxicity on human cells, and that toxicity did not correlate with nicotine concentration but did correlate with the amount of flavor additives that were used. Since California passed legislation prohibiting the sale of e-cigs to minors, the Attorney General's office has been investigating a number of e-cig companies that sell products on the Internet to ensure compliance with the statute, as well as other consumer protection provisions. Many companies are coming into compliance voluntarily. 4.Health risks and increase in use of e-cigs. DPH's State Health Officer released a report in January 2015, "A Community Health Threat," about e-cigs that cites, among other things, the concern about the health risks of e-cigs and the growing number of e-cig users. E-cig poisonings increased from seven in 2012 to 154 in 2014. By the end of 2014, e-cig poisonings to young children tripled in one year, making up more than 60 percent of all e-cig poisoning calls, according to the report. The State Health Officer also noted that in California, use of e-cigs among those between the ages of 18 and 29 tripled in one year, from 2.3 percent to 7.6 percent. Nearly 20 percent of these young adult e-cig users had never smoked traditional cigarettes. The State Health Officer concludes that there is a SB 24 (Hill) Page 5 of ? high need to educate the public about e-cig 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 e-cigs. 5.Marketing of e-cigs as cessation devices. The DPH report also cites the unrestricted marketing tactics for e-cigs. E-cig marketing continues to claim they are a safer alternative to traditional cigarettes. To date, the effectiveness of e-cigs as cessation aids has not been proven by e-cig companies or approved by the FDA as such. The report states that a number of studies actually show that e-cig users are no more likely to quit than smokers of traditional cigarettes, and in one study, 89 percent of e-cig users were still using them one year later. Dual use of e-cigs and traditional cigarettes continues to rise, which, according to the report, may be attributed to the unrestricted marketing of e-cigs. E-cig companies are using tactics previously used by tobacco companies that have since been banned. These include running unrestricted ads and promotions on TV, radio, and social media, and in magazines, newspapers, and retail stores, as well as sponsoring sport and music events and giving out free samples, according to the report. 6.Related legislation. SB 140 (Leno), recasts and broadens the definition of "tobacco product" in current law to include e-cigs as specified; extends current restrictions and prohibitions against the use of tobacco products to e-cigs; and extends current licensing requirements for manufacturers, importers, distributors, wholesalers, and retailers of tobacco products to e-cigs. SB 140 passed the Senate Health Committee by a vote of 6-1. AB 216 (Garcia), raises the allowable fine for selling e-cigs to a minor. AB 216 is currently set for hearing in the Assembly Governmental Organization Committee. AB 768 (Thurmond), would prohibit the use of e-cigs in any baseball stadium, including the dugout and locker rooms. AB 768 passed out of the Assembly Arts, Entertainment, Sports, Tourism, and Internet Media Committee on April 7, 2015, on a 4-2 vote and is pending hearing in the Assembly Governmental Organization Committee. 7.Prior legislation. SB 648 (Corbett), of 2014, would have made SB 24 (Hill) Page 6 of ? the provision of the STAKE Act restricting the sale of cigarette and tobacco products from vending machines applicable to e-cigs, as defined. SB 648 died in the Assembly Appropriations Committee. AB 320 (Nazarian), of 2013, would have prohibited the use of tobacco and nicotine products in a county office of education, charter school or school district-owned or leased building, on school or district property, and in school or district vehicles; would have also required school districts, charter schools, and county offices of education to prominently display signs at all entrances to school property stating "Tobacco use is prohibited"; would have include in its prohibition nicotine-delivery devices, such as e-cigs. AB 320 died in the Assembly Appropriations Committee. 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-cig to a person under the age of 18. SB 400 (Corbett), of 2009, would have defined e-cigs as drugs under state law, made them subject to the Sherman Food, Drug, and Cosmetic Law, and allowed DPH to halt the sale, distribution, or offering of e-cigs as part of its enforcement of the STAKE Act. SB 400 was vetoed by Governor Schwarzenegger who stated that while he supported restricting access of e-cigs to children under the age of 18, he could not sign a measure that also declared them a federally regulated drug when the matter is being decided through pending litigation. He noted that items defined as "tobacco products" are legal for anyone over the age of 18, and if adults want to purchase and consume these products with an understanding of the associated health risks, they should be able to do so unless and until federal law changes the legal status of these tobacco products. 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. 8.Support. Supporters argue that the increase in e-cig use, sales, and marketing is alarming. They state that use has increased particularly by youth who use the devices to smoke SB 24 (Hill) Page 7 of ? illegal substances. Calls to poison control centers have also risen because of children accessing e-cig cartridges. Supporters believe that this bill will curb youth e-cig use by extending STAKE Act laws to e-cigs, as well as requiring that e-cig packaging be childproof. 9.Support if amended. The BOE supports this bill if it is amended to provide adequate funding for BOE to administer the expansion of existing Licensing Act provisions to include e-cigs, without any impact to the various cigarette and tobacco product tax funds (the General Fund, Breast Cancer Fund, Cigarette and Tobacco Products Surtax Fund [Prop.99], and the California Children and Families Trust Fund [Prop. 10]). 10.Oppose unless amended. Organizations writing in opposition, unless the bill is amended, argue that this bill threatens decades of tobacco control and public health campaigns in California by distinguishing e-cigs from tobacco products. They state that the tobacco industry has been working diligently to ensure that e-cigs are defined separately from tobacco products in order to weaken regulation of e-cigs. Also, by not including all components that make up e-cigs, certain parts sold separately could still be sold to minors. They argue that the FDA and DPH recommend that e-cigs be regulated in the same manner as tobacco products. These organizations would like to see this bill amended to include only the requirement that e-cig cartridges be packaged in a childproof manner. 11.Policy Comment. The FDA is in the process of finalizing regulations to treat e-cigs like tobacco products, which is also a recommendation in DPH's report. In the opinion of staff, the author may wish to consider whether this bill's distinction of e-cigs from tobacco products would create a conflict with pending federal action regarding e-cigs. SUPPORT AND OPPOSITION : Support: California College and University Police Chiefs California Poison Control System Coalition Engaged in a Smoke-free Effort (CEASE) Junior League of California, State Public Affairs Committee Kings County Tobacco-Free Partnership SB 24 (Hill) Page 8 of ? Oppose: American Cancer Society Cancer Action Network (unless amended) American Heart Association/American Stroke Association (unless amended) American Lung Association in California (unless amended) California Medical Association (unless amended) Health Access California (unless amended) An individual -- END --