BILL ANALYSIS                                                                                                                                                                                                    






                                 SENATE HEALTH
                               COMMITTEE ANALYSIS
                        Senator Elaine K. Alquist, Chair


          BILL NO:       SB 400                                       
          S
          AUTHOR:        Corbett                                      
          B
          AMENDED:       September 2, 2009                           
          HEARING DATE:  September 10, 2009                           
          4
          CONSULTANT:                                                 
          0
          Dunstan/sh                                                  
          0              
                                        

                          PURSUANT TO SENATE RULE 29.10
                                         


                                     SUBJECT
                                         
                             Electronic cigarettes

                                     SUMMARY  

          This bill provides that electronic cigarettes are drugs  
          under state law, making them subject to the Sherman Food,  
          Drug, and Cosmetic Law.  Allows the Department of Public  
          Health (DPH) to halt the sale, distribution, or offering of  
          electronic cigarettes as part of its enforcement of the  
          Stop Tobacco Access to Kids Enforcement (STAKE) Act. 


                             CHANGES TO EXISTING LAW  

          Existing state law:
          Requires DPH, under the Sherman Food, Drug, and Cosmetic  
          Law, to regulate the manufacture, sale, labeling, and  
          advertising activities related to food, drugs, devices, and  
          cosmetics in conformity with the federal Food, Drug, and  
          Cosmetic Act.  Provides that a violation of these  
          provisions is a crime.  Requires federal or state approval  
          before a drug can be sold, delivered or given away.
                                                         Continued---



          STAFF ANALYSIS OF SENATE BILL  SB 400 (Corbett)Page 2


          


          Requires DPH to take primary responsibility for enforcement  
          of the Stop Tobacco Access to Kids Enforcement Act (STAKE  
          Act).  Requires, under the Stop Tobacco Access to Kids  
          Enforcement (STAKE) Act a retailer 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 to  
          be under the age of 18.  Makes certain violations of the  
          STAKE Act a criminal offense.  Requires DPH to take primary  
          responsibility for enforcement of the STAKE Act and  
          requires DPH to conduct random, onsite inspections of  
          retail sites. 
          
          This bill:
          Authorizes DPH, while conducting STAKE Act enforcement  
          activities, to halt the sale, distribution or offering for  
          sale electronic cigarettes that have not been approved or  
          cleared by the U.S. Food and Drug Administration (FDA).  

          States that any article that can provide inhaled doses of  
          nicotine, including electronic cigarettes, shall be deemed  
          to be a drug under the Sherman Food, Drug, and Cosmetic  
          Law.



                                  FISCAL IMPACT  

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

                            BACKGROUND AND DISCUSSION  

          According to the author, SB 400 provides the Department of  
          Public Health with the tools to stop the illegal sale of  
          this product in California by updating the Stop Tobacco  
          Access to Kids Enforcement (STAKE) Act and the Health and  
          Safety Code to halt the sale of electronic cigarettes until  
          they are approved by the United States Food and Drug  
          Administration (FDA).  The author notes that producers of  
          electronic cigarettes have not sought approval by the FDA  
          which has jurisdiction over nicotine products and drug  
          delivery devices.  As a result, the author argues,  




          STAFF ANALYSIS OF SENATE BILL  SB 400 (Corbett)Page 3


          

          electronic cigarettes are completely unregulated, illegal  
          and until the FDA has the opportunity to comprehensively  
          study the effects of this product - unsafe.  Despite this,  
          electronic cigarettes are readily available to adult and  
          minors alike at mall kiosks across the state and retailers  
          have used methods that flagrantly appeal to minors such as  
          offering flavored nicotine cartridges, according to the  
          author.  The author points out that an initial study  
          commissioned by the FDA found that the product contains  
          carcinogens and misrepresentations in nicotine content.

          Nicotine
          Nicotine is highly addictive. It is both a stimulant and a  
          sedative to the central nervous system.  The ingestion of  
          nicotine results in an almost immediate kick because it  
          causes a discharge of epinephrine from the adrenal cortex.   
          This stimulates the central nervous system, and other  
          endocrine glands, which causes a sudden release of glucose.  
          Stimulation is then followed by depression and fatigue,  
          leading the abuser to seek more nicotine. Nicotine is  
          absorbed readily from tobacco smoke in the lungs, and it  
          does not matter whether the tobacco smoke is from  
          cigarettes, cigars, or pipes.

          Nicotine also is absorbed readily when tobacco is chewed.  
          With regular use of tobacco, levels of nicotine accumulate  
          in the body during the day and persist overnight.  Thus,  
          daily smokers or chewers are exposed to the effects of  
          nicotine for 24 hours each day. Nicotine taken in by  
          cigarette or cigar smoking takes only seconds to reach the  
          brain but has a direct effect on the body for up to 30  
          minutes.

          Nicotine is one of the most heavily used addictive drugs in  
          the United States.  Cigarette smoking has been the most  
          popular method of taking nicotine since the beginning of  
          the 20th century.  In 1989, the U.S. Surgeon General issued  
          a report that concluded that cigarettes and other forms of  
          tobacco, such as cigars, pipe tobacco, and chewing tobacco,  
          are addictive and that nicotine is the drug in tobacco that  
          causes addiction. In addition, the report determined that  
          smoking was a major cause of stroke and the third leading  
          cause of death in the United States.

          Electronic cigarettes
          Electronic cigarettes are not cigarettes.  They are  




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          electronic devices that are manufactured to look like  
          cigarettes that cost between $40 and $70.  They are battery  
          powered and provide the person who uses them a vaporized  
          liquid to inhale, which delivers nicotine to the user.   
          They also come in a variety of flavors, including  
          chocolate, mint and apple, which make them appealing to  
          children and adolescents.

          Since electronic cigarettes are not cigarettes they fall  
          outside of the tobacco regulatory scheme at the state and  
          federal levels.  As an unregulated product, there is no age  
          limit for purchasing them.  Electronic cigarettes do not  
          contain warnings, which are required on nicotine  
          replacement therapies and tobacco products.

          These products have not been subject to an analysis to  
          determine the possible impact on consumer health.  The  
          amount of nicotine they deliver is unknown.  The existence  
          and possible levels of other compounds that may be  
          contained is uncertain, although the FDA has researched  
          some samples and announced that they contain toxic and  
          carcinogenic chemicals.  Because electronic cigarettes are  
          a means of delivering nicotine, there is a concern that the  
          use of them may lead to nicotine addiction, including among  
          youths.  Concerns have been raised that this nicotine  
          addiction could lead to increased underage smoking.

          The U.S. FDA is investigating electronic cigarettes.  The  
          FDA has opined that nicotine is a drug and subject to  
          agency regulation and that electronic cigarettes are  
          devices used to deliver drugs, hence they must be approved  
          by the FDA before being marketed within the United States.   
          Before approval could be gained, the manufacturers would  
          have to show that electronic cigarettes are safe and  
          effective.

          The FDA has been examining and detaining shipments of  
          e-cigarettes at the border and the products it has examined  
          thus far meet the definition of a combination drug-device  
          product under the Federal Food, Drug and Cosmetic Act.   
          However, the FDA has not taken any steps to remove them  
          from the U.S. market.  The FDA has been challenged  
          regarding its jurisdiction over e-cigarettes in a case  
          currently pending in federal district court (Smoking  
          Everywhere, Inc. v. FDA).  The basis of the challenge is  
          that electronic cigarettes are nontherapeutic alternatives  




          STAFF ANALYSIS OF SENATE BILL  SB 400 (Corbett)Page 5


          

          to cigarettes; hence they do not fall under FDA regulation.  
           

          Stop Tobacco Access to Kids Enforcement (STAKE) Act 
          In response to the federal law, in 1994, the state began to  
          track minors' access to cigarettes and tobacco products.   
          The state conducted a survey, using over 400 youths, 13-17  
          years of age, who attempted to buy cigarettes at more than  
          1,800 retail stores.  Fifty-two percent of the retailers  
          sold to minors.  The poor compliance with the law was a  
          factor in the September 1994 enactment of the STAKE Act,  
          which sought to more effectively police tobacco sales to  
          minors and fulfilled the federal mandate.



          The STAKE Act requires DPH to: 
           Implement an enforcement program to reduce the illegal  
            sale of tobacco products to minors and to conduct sting  
            operations using 15 and 16 year olds;
           Operate a toll-free number for the public to report  
            illegal tobacco sales to minors; 
           Assure that tobacco retailers post warning signs which  
            include the toll-free number to report violations; 
           Assure that clerks check the identification of youthful  
            appearing persons prior to a sale; and,
           Assess civil penalties ranging from $200 to $6,000  
            against the store owner for violations.

          Related Bills
          SJR 8 (Corbett), requests that the federal Food and Drug  
          Administration prohibit all sales of electronic cigarettes  
          until they have been found by the Food and Drug  
          Administration to be safe.  This resolution is in Assembly  
          Governmental Organization Committee.

          Arguments in support
          According to the supporters, SB 400 halts the sale of  
          electronic cigarettes to minors in California by amending  
          the California Stop Tobacco Access to Kids Enforcement  
          (STAKE) Act and keeps the addictive and harmful drug  
          nicotine away from minors..  They argue that this is  
          necessary because, in recent years, industries have been  
          innovative in their marketing of tobacco and nicotine  
          products to children.  A new product called electronic  
          cigarettes has hit the market without any regulation or  




          STAFF ANALYSIS OF SENATE BILL  SB 400 (Corbett)Page 6


          

          studies.  Producers of electronic cigarettes have refused  
          to apply for approval from the U.S. FDA.  Furthermore, they  
          argue that electronic cigarette companies are currently  
          marketing their product to minors by selling flavored  
          nicotine cartridges and utilizing shopping mall kiosks and  
          other locations frequented by minors.

                                  PRIOR ACTIONS

           Assembly Floor:               51-24
          Assembly Appropriations:      17-0
          Assembly Governmental Organization:18-0


                                    POSITIONS  


          Support:  Breathe California
                    California Medical Association
                    California Tobacco Control Alliance
                    Community Advocate Teens of Today Coalition

          Oppose:   None received