BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2757
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          Date of Hearing:   May 12, 2010

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                   AB 2757 (Bradford) - As Amended:  April 8, 2010 

          Policy Committee:                              Governmental  
          Organization Vote:                            21 - 0 

          Urgency:     No                   State Mandated Local Program:  
          Yes    Reimbursable:              No

           SUMMARY  

          This bill would make it a misdemeanor to sell, offer for sale,  
          distribute or import blunt wraps unless the wraps will be sold  
          in a business establishment that prohibits the presence of  
          persons under 18 on the premises. 

           FISCAL EFFECT  

          1)According to industry sales data, blunt wraps currently  
            generate almost $600,000 in sales tax revenue annually. Of  
            that amount, almost $400,000 is revenue for the state.  This  
            legislation prohibits that sale of blunt wraps at the majority  
            of the 38,000 tobacco retail outlets in the state.  Instead,  
            their sale would essentially be limited to less than 1,000  
            specialty tobacco shops. If this shift results in a 75% drop  
            in legal sales, it would result in a loss of almost $300,000  
            in state revenue.  Some of that loss could be offset by an  
            increase in the sales of other products. 

          2)Negligible, non-reimbursable costs for prosecution and/or  
            incarceration, offset by fine revenue, for misdemeanor  
            violations of provisions associated with selling blunt wraps  
            in establishments that are not restricted to people 18 years  
            and older.

           COMMENTS  

           1)Purpose  . This bill is aimed at restricting the sale of blunt  
            wraps to minors.  Information from the National Institute on  
            Drug Abuse shows that recent increases in marijuana smoking  
            among youth and young adults has been accompanied by the  








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            popularization of smoking marijuana as "blunts" instead of as  
            joints, especially in urban areas.  

            The author has modeled this legislation after the current  
            restrictions against selling the tobacco product commonly  
            referred to as "bidis" or "beedies" in outlets that are not  
            restricted to adults. 

           2)Support  .  In support of the bill, the Cigar Association of  
            America, argues that in recent years blunt wraps have been  
            increasingly marketed in gas stations, liquor and convenience  
            stores across the state. Blunt wrap manufacturers sell these  
            products in flavored varieties including Cotton Candy, Cookie  
            Dough, and Kush (a slang term for marijuana) that are heavily  
            marketed to youth. Blunt wraps are becoming increasingly  
            popular because their strong flavoring masks the odor created  
            from burning marijuana and other drugs. 

           3)Opposition  .  In opposition, the Roll Your Own Cigar  
            Association (made up of manufacturers), argues that state law  
            already limits the access of minors to blunt wraps, because  
            they are a tobacco product and cannot be sold or marketed to  
            minors. In addition, the opposition notes that there are a  
            myriad of products, such as cigarette rolling papers,  
            manufactured cigars, and tobacco pipes that can be used for  
            smoking marijuana and other illegal drugs.  Therefore, they  
            note that this legislation unfairly targets one product and  
            not others. 

           4)Related Legislation  . AB 1749 (Horton; Chapter 501, Statutes of  
            2006) adds "blunt wraps" to the definition of tobacco  
            paraphernalia and impose specific restrictions on the sale of  
            blunt wraps.  In addition, it defines "blunt wraps" as cigar  
            papers or cigar wrappers that are designed for smoking or  
            ingestion of tobacco products and contain less than 50%  
            tobacco.  Finally, the bill states legislative intent that all  
            manufacturers or importers of blunt wraps place appropriate  
            labels for tobacco products as required by federal law. 

            SB 322 (Ortiz, Chapter 375, Statutes of 2001) prohibits the  
            sale, offer for sale, distribution or importation of a tobacco  
            product commonly referred to as "bidis" or "beedies."  The  
            bill also defines "bidis" or "beedies" under state law.   
            Finally the bill makes violation of this law a misdemeanor  
            punishable with a civil action for injunctive relief and civil  








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            penalties up to $2,000 may be brought up by a city attorney,  
            county counsel, district attorney, or Attorney General.

           Analysis Prepared by  :    Julie Salley-Gray / APPR. / (916)  
          319-2081