BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | SB 151| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- 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. SB 151 Page 2 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 SB 151 Page 3 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 SB 151 Page 4 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 SB 151 Page 5 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. SB 151 Page 6 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 SB 151 Page 7 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, SB 151 Page 8 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 SB 151 Page 9 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 **** END ****