BILL ANALYSIS
SB 400
Page 1
Date of Hearing: August 19, 2009
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Kevin De Leon, Chair
SB 400 (Corbett) - As Amended: July 23, 2009
Policy Committee: Governmental
Organization Vote: 18 - 0
Urgency: No State Mandated Local Program:
Yes Reimbursable: No
SUMMARY
This bill updates the provisions of the Stop Tobacco Access to
Kids Enforcement (STAKE) Act to prohibit the sale of electronic
cigarettes to minors.
FISCAL EFFECT
Minor, if any, nonreimbursable local incarceration costs as this
bill changes the definition of an existing crime.
COMMENTS
1)Rationale . This bill seeks to define electronic cigarettes as
a tobacco product and make the sale of these devices to minors
illegal. According to the author, a study published by the
Journal of the National Cancer Institute found that teens were
more likely to be influenced to smoke by cigarette marketing
than by peer pressure. The author states that a similar
report published by the Journal of the American Medical
Association discovered that approximately one-third of
underage experimentation with smoking was attributable to
tobacco company marketing efforts.
According to the author, electronic cigarettes are unregulated
by state and federal law. The author claims that because the
producers of electronic cigarettes, many of which are
predominantly foreign-based companies, have not applied for
approval from the Food and Drug Administration, some retailers
have taken the opportunity to market and sell these products
SB 400
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to adults and minors, alike, through using shopping mall
kiosks and promoting flavored cartridges.
2)Electronic Cigarettes . The most recent innovation in
marketing tobacco products to the public is electronic
cigarettes. Electronic cigarettes are a tobacco substitute
being marketed as a healthy and smokeless alternative to
traditional cigarettes. These devices are battery operated,
rechargeable drug delivery devices that look similar to
cigarettes and allow the user to inhale a smokeless vapor that
often contains nicotine.
3)The STAKE Act . SB 1927 (Hayden, Chapter 1009, Statutes of
1994) enacted the Stop Tobacco Access to Kids Enforcement
(STAKE) Act to address the increase in tobacco sales to minors
in California and fulfill the federal mandate. Authority for
enforcement and responsibility for implementation of the Act
was delegated to the then-State Department of Health Services'
Food and Drug Branch, which is required to:
a) Implement the program to reduce the illegal sale of
tobacco products to minors and to conduct sting operations
using 15 and 16-year-old minors;
b) Operate a toll-free number for the public to report
illegal tobacco sales to minors;
c) Assure that tobacco retailers post signs, which include
the toll-free number, to report violations;
d) Assure that clerks check the identification of
youthful-appearing persons prior to a sale;
e) Assess civil penalties ranging from $200 to $6,000
against store owners for violations; and,
f) Comply with the Synar Amendment and prepare an annual
report for the federal government, state Legislature, and
the governor regarding enforcement activities and their
effectiveness.
Onsite inspections of retailers under the STAKE Act have been
occurring since late 1995. Between that time and 2004, almost
15,000 inspections were conducted statewide. Over 4,000
inspections (29 %) identified the illegal sales of tobacco to
minors. This figure does not represent the entire underage
sales rate, because the inspections do not constitute a random
sample since they include stores where illegal sales were
suspected. There were close to 4,000 cases in which fines
were paid and over $1 million collected. Between 1995 and
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2004, the toll-free public complaint line generated over
32,850 calls.
Analysis Prepared by : Julie Salley-Gray / APPR. / (916)
319-2081