BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    SB 5 X2


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          (Without Reference to File)





          SENATE THIRD READING


          SB 5  
          X2 (Leno)


          As Amended  March 2, 2016


          Majority vote


          SENATE VOTE:  25-13


          SUMMARY:  Defines the term smoking for purposes of the Stop  
          Tobacco Access to Kids Enforcement (STAKE) Act; expands the  
          definition of a tobacco product to include electronic cigarettes  
          (e-cigarettes); and, extends current restrictions and  
          prohibitions against the use of tobacco products to  
          e-cigarettes.  Establishes an annual e-cigarette retailer  
          licensing fee of $265 per location.  Specifically, this bill:  


          1)Defines smoking as inhaling, exhaling, burning, or carrying  
            any lighted or heated cigar, cigarette, or pipe, or any other  
            lighted or heated tobacco or plant product intended for  
            inhalation, whether natural or synthetic, in any manner or in  
            any form.  Includes the use of an electronic smoking device  
            that creates an aerosol or vapor, in any manner or in any  
            form, or the use of any oral smoking device for the purpose of  
            circumventing the prohibition of smoking.








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          2)Expands the definition of tobacco product to include an  
            electronic device that delivers nicotine or other vaporized  
            liquids to the person inhaling from the device, including, but  
            not limited to an e-cigarette, cigar, pipe, or hookah.   
            Includes in the definition any component, part, or accessory  
            of a tobacco product, whether or not sold separately.


          3)Clarifies that a tobacco product does not include a product  
            that has been approved by the United States Food and Drug  
            Administration (FDA) for sale as a tobacco cessation product  
            or for other therapeutic purposes where the product is  
            marketed and sold solely for such an approved purpose.


          4)Requires all cartridges for e-cigarettes and solution for  
            filling or refilling an e-cigarette to be in childproof  
            packaging.  Defines child-resistant packaging as packaging  
            that meets current federal law. 


          5)Establishes an annual e-cigarette retailer licensing fee of  
            $265 per location; specifies the format for the application;  
            and, requires the Board of Equalization (BOE) to provide  
            electronic means for applicants to download and submit  
            applications.


          1)Contains double-jointing language to resolve potential code  
            conflict with AB 6 X2 (Cooper), SB 6 X2 (Monning), AB 7 X2  
            (Stone), SB 7 X2 (Hernandez), and AB 8 X2 (Wood) of the  
            current legislative session.
          EXISTING LAW:


          1)Authorizes the California Department of Public Health (DPH),  
            under the STAKE Act, to assess civil penalties ranging from  








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            $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 a 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)Defines an e-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  
            e-cigarette to a person under the age of 18.


          5)Requires the 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.  Prohibits selling  
            tobacco products without a valid license, and makes violations  
            punishable as a misdemeanor.  


          6)Requires a retailer, for purposes of collecting a tobacco tax,  
            to obtain a separate license for each retail location that  
            sells cigarettes and tobacco products and pay a one-time fee  
            of $100. Requires BOE to suspend or revoke a retailer's  








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            license upon notification by DPH of certain STAKE Act  
            violations.


          7)Prohibits, under the STAKE Act, any person from distributing  
            or selling tobacco products via the United States Postal  
            Service (USPS), or any other public or private postal or  
            package delivery service, to any purchaser who is a minor.


          8)Bans, under the federal Prevent All Cigarette Trafficking Act  
            (PACT Act), the shipment of tobacco products through the USPS.


          9)Federal law, the Poison Prevention Packaging Act of 1970  
            requires the use of child-resistant packaging for prescription  
            drugs, over-the-counter drugs, household chemicals, and other  
            hazardous materials that could be considered dangerous for  
            children.


          FISCAL EFFECT:  This bill, as amended, has not been analyzed by  
          a fiscal committee.


          COMMENTS:  According to the author, California has invested 25  
          years and $2.5 billion in public health measures aimed at  
          reducing tobacco use.  However, that investment is now  
          threatened by a new tobacco product:  e-cigarettes.  According  
          to a DPH report, e-cigarette aerosol contains at least 10  
          chemicals that are on California's Proposition 65 (1986) list of  
          chemicals known to cause cancer, birth defects, or other  
          reproductive harm.  Despite industry claims that e-cigarettes do  
          not present secondhand smoke concerns, studies have found  
          formaldehyde, benzene, and tobaccospecific nitrosamines (a  
          carcinogen) coming from the secondhand emissions of ecigarettes.  











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          The author notes, despite these potentially serious risks to  
          public health, e-cigarette use is growing nationwide.  The  
          Centers for Disease Control and Prevention found that more than  
          a quarter of a million youth who had never smoked a cigarette  
          used e-cigarettes in 2013.  E-cigarettes come in enticing  
          flavors such as gummy bear and mango.  While California  
          currently bans the sale of e-cigarettes to minors under the age  
          of 18, many youth are still able to access the product. 


          The author concludes that DPH recommends that "[e]xisting laws  
          that currently protect minors and the general public from  
          traditional tobacco products should be extended to cover  
          e-cigarettes," and this bill will do exactly this by including  
          e-cigarettes within California's smoke-free laws and the STAKE  
          Act.


          BACKGROUND.  E-cigarettes are defined in California law as a  
          device that can provide an inhalable dose of nicotine by  
          delivering a vaporized solution.  Typically, they are composed  
          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.  This vapor is then  
          inhaled by the user.  These products are often made to look like  
          such products as cigarettes, cigars, and pipes.  They are also  
          sometimes made to look like everyday items such as pens and  
          Universal Serial Bus memory sticks, for people who wish to use  
          the product without others noticing.


          The health effects of e-cigarettes have not been fully studied,  
          so consumers currently don't know the potential risks of  
          e-cigarettes, how much nicotine or other potentially harmful  
          chemicals are being inhaled during use, or whether there are any  
          benefits associated with using these products.  According to the  
          January 2015 State Health Officer's report on e-Cigarettes, "A  
          Community Health Threat," e-cigarette use is rising rapidly.   








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          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 list of chemicals known to  
          cause cancer, birth defects, or other reproductive harm.


          The FDA has issued a proposed rule that would extend the  
          agency's tobacco authority to cover additional products that  
          meet the legal definition of a tobacco product, such as  
          e-cigarettes.  The agency intends to regulate e-cigarettes and  
          related products in a manner consistent with its mission of  
          protecting the public health.  The FDA has not completed its  
          evaluation of e-cigarettes for safety or effectiveness.  When  
          the FDA conducted limited laboratory studies of certain samples,  
          they found significant quality issues that indicate that quality  
          control processes used to manufacture these products are  
          substandard or non-existent.  They also found that cartridges  
          labeled as containing no nicotine did contain nicotine and that  
          three different e-cigarette cartridges with the same label  
          emitted a markedly different amount of nicotine with each puff.   
          Experts have also raised concerns that the marketing of products  
          such as e-cigarettes can increase nicotine addiction among young  
          people and may lead kids to try other tobacco products. 


          In California, use of e-cigarettes among young adults ages 18 to  
          29 tripled in one year.  A 2015 study funded by the National  
          Institute of Health and published in the Journal of the American  
          Medical Association, compared tobacco use initiation among 222  
          students who had used e-cigarettes, but not combustible tobacco  
          products, and 2,308 who had neither used e-cigarettes or  
          combustible tobacco products when initially surveyed at the  
          start of ninth grade.  During the first six months after being  
          surveyed, 30.7% of those who had used e-cigarettes started using  
          combustible tobacco products, such as cigarettes, cigars, and  
          hookahs, compared to only 8.1% of those who had never used  
          e-cigarettes.









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          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.




          Analysis Prepared by:                                             
          Lara Flynn / P.H. & D.S. /   FN: 0002645