BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | SBX2 7| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- 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 SBX2 7 Page 2 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, SBX2 7 Page 3 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 SBX2 7 Page 4 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 SBX2 7 Page 5 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 SBX2 7 Page 6 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 **** END **** SBX2 7 Page 7