BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 400
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          SENATE THIRD READING
          SB 400 (Corbett)
          As Amended  July 23, 2009
          Majority vote 

           SENATE VOTE  :23-15  
           
           GOVERNMENTAL ORGANIZATION   18-0APPROPRIATIONS      17-0        
           
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          |Ayes:|Coto, Anderson, Chesbro,  |Ayes:|De Leon, Conway, Ammiano, |
          |     |Cook,                     |     |                          |
          |     |De Leon, Galgiani, Hall,  |     |Charles Calderon, Coto,   |
          |     |Hill, Jeffries, Lieu,     |     |Davis, Duvall, Fuentes,   |
          |     |Mendoza, Nestande,        |     |Hall, Harkey, Miller,     |
          |     |V. Manuel Perez,          |     |John A. Perez, Skinner,   |
          |     |Portantino, Silva,        |     |Solorio, Audra            |
          |     |Torres, Torrico, Tran     |     |Strickland, Torlakson,    |
          |     |                          |     |Hill                      |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |     |                          |
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           SUMMARY :  Updates both the Stop Tobacco Access to Kids  
          Enforcement (STAKE) Act to define electronic cigarettes under  
          state law and to halt the sale of electronic cigarettes to  
          minors.  Specifically,  this bill  :    

          1)Amends existing law to include electronic cigarettes in the  
            definition of "tobacco product" as a "tobacco substitute."

          2)Defines "tobacco substitute" as a battery-powered device that  
            can provide inhaled doses of nicotine by delivering a  
            vaporized solution. 

          3)Requires that the suppliers and sellers of electronic  
            cigarettes be in full compliance of established state law  
            relevant to the distribution of tobacco products to minors. 

          4)Makes technical and conforming changes.

           EXISTING LAW  :

          1)Requires states to enact and enforce laws that prohibit the  
            sale of cigarettes and tobacco products to minors under the  








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            age of 18. 

          2)Makes it a misdemeanor, subject to civil action and fines, any  
            individual who knowingly or under circumstances furnishes,  
            gives, or sells cigarettes or tobacco products to minors under  
            the age of 18. 

          3)Provides that any individual desiring to engage in the sale of  
            cigarettes or tobacco products as a distributor shall file  
            with the Board of Equalization (BOE) an application for a  
            distributor's license.  A distributor must apply and obtain a  
            license for each place of business where he or she will engage  
            in the business of distributing cigarettes or tobacco  
            products.

          4)Provides that any individual desiring to engage in the sale of  
            cigarettes or tobacco products as a wholesaler shall file with  
            the BOE an application for a wholesaler's license.  A  
            wholesaler must apply and obtain a license for each place of  
            business where he or she will engage in the business of  
            selling cigarettes or tobacco products as a wholesaler.

          5)Provides, under the Stop Tobacco Access to Kids Enforcement  
            (STAKE) Act:

             a)   Retailers from selling cigarettes and tobacco products  
               to minors under the age of 18 and requires that retailers  
               check identification of individuals trying to buy  
               cigarettes and tobacco products who appear under the age of  
               18;  

             b)   Increases civil penalties and expands the number of  
               agencies that are permitted to carry out investigations of  
               illegal tobacco sales to minors from the State Department  
               of Public Health (DPH) to include the Attorney General and  
               other state and local agencies;

             c)   Makes certain violations of the STAKE Act a criminal  
               offense;

             d)   Requires DPH to take primary responsibility for  
               enforcement of the STAKE Act and requires DPH to conduct  
               random, onsite inspections of retail sites;









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             e)   Requires DPH to enlist the assistance of persons who are  
               15 or 16 years of age for this purpose and requires the DPH  
               to adopt and publish guidelines for the use of minors in  
               inspections;

             f)   Requires the peace officer accompanying the minor to  
               re-enter the retail site following the completion of a sale  
               and inform the seller of the random inspection.  Requires  
               DPH, following an attempted sale, to notify the retailer of  
               the inspection;

             g)   Permits DPH to enter into an agreement with a local law  
               enforcement agency for delegation of enforcement of the  
               STAKE Act;

             h)   Requires any enforcement by DPH, in cases where DPH has  
               delegated enforcement to a local law enforcement agency, to  
               be coordinated with the local law enforcement agency and  
               prohibits duplication of enforcement activities that result  
               in a duplication of civil penalties or assessments; and,

             i)   Requires DPH to reimburse local law enforcement agencies  
               for enforcement costs pursuant to delegation contracts from  
               the Sale of Tobacco to Minors Control Account, which was  
               created under the STAKE Act and receives moneys collected  
               as civil penalties under the Act.

           FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee, costs are deemed minor, if any, nonreimbursable  
          incarceration costs as this bill changes the definition of an  
          existing crime.

           COMMENTS  :  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.

          The most recent innovation in marketing tobacco products to the  
          public is electronic cigarettes.  Electronic cigarettes are a  
          tobacco substitute that is being marketed as a healthy and  








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          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.       

          According to the author, electronic cigarettes are unregulated  
          by both state and federal laws.  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 to  
          adults and minors, alike, through using shopping mall kiosks and  
          promoting flavored cartridges.

          This bill seeks to define electronic cigarettes as a tobacco  
          product and, make illegal, the sale of these devices to minors.   



           Analysis Prepared by  :    Rod Brewer / G. O. / (916) 319-2531 


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