BILL ANALYSIS                                                                                                                                                                                                    Ó






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          |SENATE RULES COMMITTEE            |                        SB 151|
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                                   THIRD READING 


          Bill No:  SB 151
          Author:   Hernandez (D)
          Introduced:1/29/15  
          Vote:     21  

           SENATE HEALTH COMMITTEE:  9-0, 4/8/15
           AYES:  Hernandez, Nguyen, Hall, Mitchell, Monning, Nielsen,  
            Pan, Roth, Wolk

           SENATE APPROPRIATIONS COMMITTEE:  5-2, 5/28/15
           AYES:  Lara, Beall, Hill, Leyva, Mendoza
           NOES:  Bates, Nielsen

           SUBJECT:   Tobacco products: minimum legal age


          SOURCE:    Author


          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 current  
          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  
            mail or telephone.








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          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  
            current law.

          2)Establishes minimum state restrictions regarding tobacco  
            purchase and possession and does not preempt local ordinances  







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            that impose a more restrictive legal age.

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

          Background
          
          Author's statement.  According to the author, an estimated 90  
          percent of tobacco users start prior to age 21, and 80 percent  
          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 percent 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.

          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  







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          birth weight is associated with mothers who smoke or are exposed  
          to secondhand smoke, and increased hospitalization and inability  
          to heal wounds are 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. 

          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 percent 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.

          IOM report.  The Food and Drug Administration (FDA) is granted  
          broad authority over tobacco products by the Family Smoking and  
          Tobacco Control Act of 2009 (Act), but is prohibited from  
          raising the minimum age above 18 at a federal level. The Act  
          required the FDA to convene a panel to examine the ramifications  
          of raising 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  
          raising 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 percent additional decrease; raising  
          the age to 21, a 12 percent additional decrease; and raising the  
          age to 25, a 15 percent 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.

          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 1200 percent 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 ten  
          chemicals known to cause cancer, birth defects, and other poor  
          health outcomes. 

          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. 
          
          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 none have yet been signed  
          into law. Alabama, Alaska, New Jersey, and Utah currently have  
          an age restriction of 19 for tobacco, which is higher than the  
          national standard of 18. In the absence of federal and state  
          action, tobacco control has been undertaken at a local level.  







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          New York City, a number of municipalities in Massachusetts, and  
          Healdsburg, CA, have raised their tobacco purchase age to 21. 

          Related Legislation 

          SB 140 (Leno) changes the definition of a tobacco product to  
          include electronic devices that deliver nicotine or other  
          substances, make providing such a product to minors a  
          misdemeanor, and update the restrictions of using tobacco  
          products to reflect the inclusion of electronic devices. 
          
          SB 591 (Pan), among other provisions, imposes an additional tax  
          of $2.00 on each pack of cigarettes sold and requires the funds  
          generated to be deposited in the California Tobacco Tax Act of  
          2015 Fund to be expended for specific outlined purposes. 

          AB 1162 (Holden), establishes tobacco cessation services as  
          covered benefits under Medi-Cal, and requires the services to  
          include unlimited quit attempts comprised of counseling and  
          treatment programs. 

          AB 1278 (Gray), allows the use of a United States Armed Forces  
          identification card for age verification, as long as it contains  
          date of birth and photo, to purchase tobacco products. 
          
          Prior Legislation 

          AB 221 (Koretz, 2003), was substantially similar to this bill. AB  
          221 failed passage in the Assembly Governmental Organizations  
          Committee.

          SB 1821 (Dunn, 2003), was substantially similar to this bill. SB  
          1821 was held on the Senate Appropriations Committee suspense  
          file.

          AB 1453 (Koretz, 2002), was substantially similar to this bill.  
          AB 1453 was subsequently amended to a different subject.
          
          FISCAL EFFECT:   Appropriation:    No          Fiscal  
          Com.:YesLocal:   Yes

          According to the Senate Appropriations Committee analysis,  
          likely ongoing costs in the tens of thousands to low hundreds of  
          thousands per year for additional survey activities at retail  







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          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 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:   (Verified5/28/15)


          American Academy of Pediatrics
          American Cancer Society Cancer Action Network
          American Federation of State, County and Municipal Employees,  







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          AFL-CIO American Heart Association/American Stroke Association 
          American Lung Association in California
          Association of California Healthcare Districts
          Association of Northern California Oncologists
          Breathe California
          California Academy of Family Physicians
          California Academy of Preventive Medicine
          California Black Health Network
          California Center for Public Health Advocacy
          California Chapter of the American College of Cardiology
          California Chapter of the American College of Emergency  
          Physicians
          California Dental Association
          California Medical Association
          California Pharmacists Association
          California Police Chiefs Association
          California Primary Care Association
          California Society of Addiction Medicine
          Campaign for Tobacco-Free Kids
          El Monte/South El Monte Chamber of Commerce
          First 5 Association of California
          Kaiser Permanente
          March of Dimes California Chapter
          Medical Oncology Association of Southern California, Inc.
          San Marcos Prevention Coalition
          Santa Clara County Board of Supervisors
          Solano County Board of Supervisors
          Tobacco Education and Research Oversight Committee


          OPPOSITION:   (Verified5/28/15)


          California Retailers Association
          Cigar Association of America
          Legal Services for Prisoners with Children


          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  







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          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.  
          Kaiser Permanente states that the serious and negative health  
          effects of smoking are well known and a costly burden to  
          society; anything that can be done to restrict access to young  
          people to prevent addiction is worth doing. The American Academy  
          of Pediatrics states this is an evidence-based, reasonable and  
          important step to protect and promote the public health of our  
          communities.


          ARGUMENTS IN OPPOSITION:     The Cigar Association of America  
          (CAA) writes that no state has made a similar move to restrict  
          the age to purchase tobacco to 21. CAA argues that an individual  
          can be eligible to vote, serve in the military, and enter into  
          contracts at the age of 18 and therefore should be able to make  
          decisions about purchasing tobacco products. Further, CAA states  
          this bill will result in a decrease in tax revenues to the  
          state, which could jeopardize ongoing fiscal obligations. Legal  
          Services for Prisoners with Children writes that addressing  
          public health concerns through criminal law is counterproductive  
          and should be resolved with treatment and education, not  
          criminal sanctions.


          Prepared by:Alex Norring / HEALTH / 
          5/31/15 13:00:39


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