BILL ANALYSIS                                                                                                                                                                                                    Ó




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                                UNFINISHED BUSINESS 


          Bill No:  SBX2 7
          Author:   Hernandez (D), et al.
          Amended:  3/2/16  
          Vote:     21  

           SENATE PUBLIC HEALTH & DEV. SERVICES COMMITTEE:  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

           SENATE FLOOR:  25-11, 8/27/15
           AYES:  Allen, Beall, Block, De León, Glazer, Hall, Hancock,  
            Hernandez, Hill, Hueso, Jackson, Lara, Leno, Leyva, Liu,  
            McGuire, Mendoza, Mitchell, Monning, Pan, Pavley, Roth, Stone,  
            Wieckowski, Wolk
           NOES:  Anderson, Bates, Berryhill, Cannella, Fuller, Huff,  
            Moorlach, Morrell, Nielsen, Runner, Vidak
           NO VOTE RECORDED:  Gaines, Galgiani, Hertzberg, Nguyen

           ASSEMBLY FLOOR:  49-25, 3/3/16 - See last page for vote

           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  








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          changes to restrictions and enforcement mechanisms in current  
          law.


          Assembly Amendments:

          1)Remove the criminal penalties for those under 21 that are  
            found in possession of tobacco products. 

          2)Exempt active duty military personnel from the higher age  
            limit.

          3)Add Assembly Member Wood as Principal Coauthor and Senators  
            Allen and Block as coauthors. 

          4)Seek to provide conflict resolution between SBX2-7 and SBX2-5  
            (Leno) that would ensure the 21 age limit would only apply if  
            both bills pass.

          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  
            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,  








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            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 to purchase and consume tobacco  
            products to 21 and makes all conforming changes in current  
            law.

          2)Extends the applicability of the 21 years of age restriction  
            to provisions of the STAKE Act. 

          3)Deletes penalty provisions for those under 21 found in  
            possession of tobacco products.

          4)Exempts military personnel, with the use of a military  
            identification card, from the 21 age limit.

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

          According to the Senate Appropriations Committee:

          Reduced total excise tax and sales tax revenues on tobacco  








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          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 Centers for Disease Control and  
          Prevention, 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:   (Verified3/4/16)


          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








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          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:   (Verified3/4/16)


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








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          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.


          ASSEMBLY FLOOR:  49-25, 3/3/16
          AYES:  Achadjian, Baker, Bloom, Bonilla, Bonta, Brown, Burke,  
            Calderon, Campos, Chang, Chau, Chiu, Chu, Cooley, Cooper,  
            Dababneh, Dodd, Eggman, Cristina Garcia, Eduardo Garcia,  
            Gipson, Gomez, Gonzalez, Gordon, Hadley, Roger Hernández,  
            Holden, Irwin, Jones-Sawyer, Levine, Lopez, Low, Maienschein,  
            McCarty, Medina, Mullin, Nazarian, O'Donnell, Quirk, Rendon,  
            Rodriguez, Santiago, Mark Stone, Thurmond, Ting, Weber,  
            Williams, Wood, Atkins
          NOES:  Travis Allen, Bigelow, Brough, Chávez, Dahle, Daly, Beth  
            Gaines, Gallagher, Gatto, Gray, Harper, Jones, Kim, Lackey,  
            Linder, Mathis, Mayes, Melendez, Obernolte, Patterson,  
            Ridley-Thomas, Salas, Steinorth, Wagner, Wilk
          NO VOTE RECORDED:  Alejo, Frazier, Grove, Olsen, Waldron


          Prepared by:Alex Norring / P.H. & D.S. / 
          3/4/16 12:56:46


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