BILL ANALYSIS                                                                                                                                                                                                    Ó






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                                   THIRD READING 


          Bill No:  SBX2 7
          Author:   Hernandez (D), et al.
          Introduced:7/16/15  
          Vote:     21  

           SENATE PUBLIC HEALTH AND DEVELOP. SVCS. COMM.:  9-3, 8/19/15
           AYES:  Hernandez, Beall, Hall, Leno, McGuire, Mitchell,  
            Monning, Pan, Wolk
           NOES:  Morrell, Moorlach, Nielsen
           NO VOTE RECORDED:  Anderson

           SENATE APPROPRIATIONS COMMITTEE:  5-2, 8/24/15
           AYES:  Lara, Beall, Hill, Leyva, Mendoza
           NOES:  Bates, Nielsen

           SUBJECT:   Tobacco products: minimum legal age


          SOURCE:    American Cancer Society Cancer Action Network 
                     American Lung Association in California

          DIGEST:   This bill increases the minimum legal age to purchase  
          or consume tobacco from 18 to 21 and makes additional conforming  
          changes to restrictions and enforcement mechanisms in existing  
          law.

          ANALYSIS: 
          
          Existing law:

          1)Prohibits any person, firm, or corporation from selling,  
            giving, or in any way, furnishing tobacco products to any  
            person under the age of 18, including in person and through  








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            mail or telephone.

          2)Requires all persons engaging in retail sale of cigarettes and  
            tobacco products to check the identification of tobacco  
            purchasers to establish age if the person appears to be under  
            the age of 18.

          3)Establishes that California fully complies with federal  
            regulations, including the "Synar Amendment," that prohibits  
            the sale or distribution of tobacco products to individuals  
            under 18, requires strict enforcement, and conditions federal  
            Substance Abuse Prevention and Treatment Block Grant funding  
            upon compliance.

          4)Requires the Department of Public Health (DPH) to establish  
            programs to reduce the availability of tobacco products,  
            establish requirements for retailers of tobacco products to  
            post conspicuously a notice that selling to minors is illegal,  
            and enforce the laws set forth in the Stop Tobacco Access to  
            Kids Enforcement Act (STAKE Act).

          5)Creates the STAKE Act to reduce the availability of tobacco  
            products to minors through specified sales restrictions and  
            enforcement activities, including using 15 and 16 year olds  
            for onsite random sting inspections.

          6)Authorizes DPH to assess civil penalties ranging from $400 to  
            $6,000 against any person, firm, or corporation that sells,  
            gives, or in any way furnishes tobacco products to another  
            person who is under the age of 18 depending on the number of  
            infractions.

          7)Establishes a fine of $75 or 30 hours of community service  
            work for those persons under age 18 who purchase, receive, or  
            possess any tobacco product, unless participating in STAKE Act  
            activities.

          This bill:

          1)Raises the minimum legal age (MLA) to purchase and consume  
            tobacco products to 21 and makes all conforming changes in  
            existing law.

          2)Extends the applicability of the 21 years of age restriction  







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            to provisions of the STAKE Act. 

          Comments
          
          1)Author's statement.  According to the author, an estimated 90  
            % of tobacco users start prior to age 21, and 80 % of lifetime  
            users start before the age of 18. By increasing the MLA to 21,  
            this bill intends to prevent or severely restrict youth access  
            to these highly addictive and deadly products. The consumption  
            of tobacco products leads to a lifetime of adverse health  
            effects and remains the leading cause of preventable death in  
            the nation and California. This bill aims to achieve better  
            health outcomes for Californians, while lowering the immense  
            cost on the health care system of tobacco-related disease. UC  
            San Francisco (UCSF) reported tobacco use cost a staggering  
            $18.1 billion in California alone, with $9.8 billion in direct  
            health care expenditures. In 2013, to address the burden of  
            tobacco, the federal Food and Drug Administration (FDA)  
            commissioned the Institute of Medicine (IOM) to study the  
            effectiveness of raising the MLA. The IOM concluded that  
            raising the MLA to 21 would cause the smoking prevalence to  
            decline by 12 % more than existing control policies.  
            California already has a 21 year age restriction for other  
            dangerous activities; it is time for tobacco to be added to  
            that list. This bill will help California be a leader in  
            tobacco control and take steps towards eliminating the  
            addictive, costly, and deadly habit of tobacco use.

          2)Toll of tobacco.  The Surgeon General issued a report in 1964  
            that linked smoking and poor health outcomes, including lung  
            cancer and heart disease. Over the ensuing 50 years since that  
            report, research solidified the link between tobacco and poor  
            health outcomes, both directly and indirectly caused.  
            According to the Center for Disease Control and Prevention  
            (CDC), tobacco use causes cancer, heart disease, stroke, lung  
            diseases, and diabetes and remains the leading cause of  
            preventable death in the United States, resulting in over  
            480,000 deaths annually. A study conducted by UCSF estimated  
            that, in 2009, 34,000 deaths in California were attributable  
            to smoking. In addition to tobacco-related diseases, like  
            cancer, heart disease, and lung disease, there are a number of  
            physiological effects. Low infant birth weight is associated  
            with mothers who smoke or are exposed to secondhand smoke, and  
            increased hospitalization and inability to heal wounds are  







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            both linked to tobacco users. There is also a financial toll  
            as a result of these impacts. Tobacco use costs the nation  
            billions in direct health care expenditures and lost  
            productivity annually. The Campaign for Tobacco-Free Kids  
            estimates that tobacco use in California results in $3.5  
            billion in costs to Medi-Cal.

          3)Youth and tobacco. The CDC states that nearly all tobacco  
            users begin during their youth, with 3,200 adolescents trying  
            their first cigarette each day. DPH estimates that 64 % of  
            smokers in California start before age 18. According to DPH,  
            California has one of the lowest teenage smoking rates in the  
            nation. But the prevalence of smokeless tobacco use among  
            youth has greatly increased, and there has been a slowing  
            decline in rates of cigarette smoking among youth. Through  
            implementation of the STAKE Act, California also has seen a  
            steady decline in illegal sales to minors, although there has  
            been a slight increase in recent years. Research shows that  
            nicotine exposure has a dynamic impact on developing brains in  
            smaller doses and leads to increased vulnerability to  
            addiction, impulsivity, and mood disorders. Tobacco use for  
            youth is also associated with reduced lung function, reduced  
            lung growth, and early cardiovascular damage.

          4)IOM report.  The FDA is granted broad authority over tobacco  
            products by the Family Smoking and Tobacco Control Act of 2009  
            (Act), but is prohibited from increasing the minimum age above  
            18 at a federal level. The Act required the FDA to convene a  
            panel to examine the ramifications of increasing the minimum  
            tobacco purchase age. The FDA tasked the IOM with  
            investigating this issue. The IOM recently released a report,  
            Public Health Implications of Raising the Minimum Age of Legal  
            Access to Tobacco Products, which examined the impacts of  
            increasing the 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 three % additional decrease; raising the  
            age to 21, a 12 % additional decrease; and raising the age to  
            25, a 15 % additional decrease. The IOM concluded that the age  
            group most impacted by raising the MLA 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. From a health perspective, the impacts of  
            decreased prevalence would be short- and long-term. Reductions  







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            in tobacco-related diseases will take decades to realize, but  
            there would be immediate reduction in adverse physiological  
            effects and poor infant health outcomes. The IOM report stated  
            that raising the 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.

          5)Alternative tobacco products. According to DPH, prevalence of  
            smokeless and other tobacco products have increased among high  
            school students, which often do not have the same regulations  
            placed upon them as cigarettes. In recent years, sales of  
            smokeless tobacco and nicotine products, like snus, have risen  
            dramatically. Hookah, popular with teens and young adults, has  
            been shown to contain the same cancer-causing chemicals as  
            secondhand smoke. Smokeless tobacco has been linked to oral  
            cancer, pancreatic cancer, and gum disease. DPH recently  
            released a report on electronic cigarettes, which stated that  
            teen use of electronic cigarettes has surpassed the use of  
            traditional cigarettes and marketing of these products has  
            increased 1,200% in the last three years. Electronic  
            cigarettes deliver nicotine to the user, which, research from  
            the IOM shows, can be harmful to brain development in  
            adolescents. The DPH report asserts that the aerosol emitted  
            from electronic cigarettes is toxic and contains at least 10  
            chemicals known to cause cancer, birth defects, and other poor  
            health outcomes. 

          6)Age restrictions. Federal and state laws have set various  
            standards for age restrictions. For example, at age 16, an  
            individual can obtain a driver's license. At age 18, an  
            individual gains the right to vote, can join the military,  
            enter into binding contracts, and be tried as an adult in the  
            criminal courts. At age 21, an individual can purchase and  
            consume alcohol, purchase certain firearms, and gamble.  
            Minimum age restrictions can be established at a federal  
            level, and states may opt to make restrictions more stringent.  


          7)Other states. A number of other states have attempted to enact  
            legislation or have measures pending that would increase the  
            purchasing age for tobacco to 21, but Hawaii has been the only  
            state thus far to adopt the increase into law. Alabama,  
            Alaska, New Jersey, and Utah currently have an age restriction  
            of 19 for tobacco, which is higher than the national standard  







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            of 18. In the absence of federal and state action, tobacco  
            control has been undertaken at a local level. New York City, a  
            number of municipalities in Massachusetts, and Healdsburg, CA,  
            have increased their tobacco purchase age to 21. 

          FISCAL EFFECT:   Appropriation:    No          Fiscal  
          Com.:YesLocal:   Yes

          According to the Senate Appropriations Committee, likely ongoing  
          costs in the tens of thousands to low hundreds of thousands per  
          year for additional survey activities at retail stores that sell  
          tobacco products.

          Likely ongoing costs in the hundreds of thousands per year for  
          enforcement actions relating to illegal sales of tobacco  
          products to individuals between 18 and 21 years of age.

          Reduced total excise tax and sales tax revenues on tobacco  
          products of $68 million per year in the near term. The Board of  
          Equalization (BOE) projects reduced tobacco excise tax revenues  
          of about $43 million per year (about $4 million of which would  
          come from the General Fund and the remainder from special funds  
          that support a variety of public health programs). The BOE  
          estimates reduced sales tax revenues of about $25 million per  
          year (about $13 million coming from the General Fund and the  
          remainder coming from local government sales tax revenues).  
          Additional long-run reductions in tobacco excise and sales tax,  
          likely over $100 million per year.

          Unknown, but significant health care cost savings to public  
          payers. According to the CDC, estimates of annual direct health  
          care costs related to smoking are between $130 billion and $180  
          billion per year, nationally. This bill is likely to reduce  
          health care costs, by reducing tobacco use rates. If the  
          long-term reduction in the expenditure of health care costs  
          relating to smoking is proportional to the reduction in the use  
          rate, total direct health care costs in the state would be  
          reduced by as much as $2 billion per year in the long-run. A  
          significant portion of those savings would likely accrue to  
          public payers such as the Medi-Cal program and CalPERS.


          SUPPORT:   (Verified8/24/15)








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          American Cancer Society Cancer Action Network (co-source)
          American Lung Association in California (co-source)
          American Academy of Pediatrics, California
          American College of Emergency Physicians, California Chapter
          American Heart Association/American Stroke Association
          Association of California Healthcare Districts
          Association of Northern California Oncologists
          California Academy of Family Physicians
          California Academy of Preventive Medicine
          California Black Health Network
          California Chronic Care Coalition
          California Dental Association
          California Medical Association
          California Optometric Association
          California Pan Ethnic Health Network
          California Primary Care Association
          California Society of Addiction Medicine
          California State Association of Counties
           Community Action Fund of Planned Parenthood Orange and San  
            Bernardino Counties
          First 5 Association of California
          Health Access California
          Kaiser Permanente
          March of Dimes, California Chapter
          Medical Oncology Association of Southern California, Inc.
          Planned Parenthood Advocacy Project Los Angeles
          Planned Parenthood Affiliates of California
          Planned Parenthood Mar Monte
          Planned Parenthood Northern California Action Fund
          Planned Parenthood of the Pacific Southwest
          San Dieguito Alliance for Drug Free Youth
          Santa Clara County Board of Supervisors
          Service Employees International Union California
          Solano Beach City Council
          Solano County Board of Supervisors


          OPPOSITION:   (Verified8/24/15)


          American Legion-Department of California
          AMVETS - Department of California
          Association of the United States Army







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          California Distributors Association
          California Retailers Association
          California State NAACP
          Fleet Reserve Association
          Jewish War Veterans, Department of California
          Military Officers Association of America, California Council of  
          Chapters
          Military Order of the Purple Heart, Department of California
          Vietnam Veterans of America - California State Council

          ARGUMENTS IN SUPPORT:  The American Lung Association in  
          California (ALA) argues that delaying the age when youth first  
          use tobacco can reduce their likelihood of transitioning to  
          regular tobacco users. ALA states that California has a rich  
          history of tobacco control that has helped to reduce smoking  
          rates, but tobacco companies continue to find replacement  
          smokers. The American Cancer Society Cancer Action Network  
          writes that this bill is an important component in a  
          comprehensive strategy to reduce youth consumption of tobacco.


          ARGUMENTS IN OPPOSITION:     Various veterans groups write in  
          opposition that this would be unfair to men and women in the  
          armed forces because if they can serve in our military they  
          should be allowed to buy a legal product and there is nothing to  
          justify raising the age to 21. They argue further that this is  
          not about smoking being right or wrong, but about protecting  
          liberty and personal freedom.


          Prepared by:Alex Norring / P.H. & D.S. / 
          8/26/15 15:13:51


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