BILL ANALYSIS                                                                                                                                                                                                    �







                      SENATE COMMITTEE ON PUBLIC SAFETY
                            Senator Loni Hancock, Chair              A
                             2013-2014 Regular Session               B

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          AB 1735 (Hall)                                             5
          As Amended May 5, 2014 
          Hearing date:  June 24, 2014
          Penal Code
          JM:sl

             DISTRIBUTION OF NITROUS OXIDE - KNOWLEDGE IT WILL BE MISUSED

                    RECORDING OF INFORMATION ABOUT THE PURCHASER

           
                                       HISTORY

          Source:  Los Angeles County Sheriff's Department

          Prior Legislation: AB 1015 (Torlakson) Ch. 266, Stats. 2009

          Support:  California State Sheriffs' Association

          Opposition:American Civil Liberties Union; California Automotive  
          Wholesaler's Association 
                   (Oppose Unless Amended)

          Assembly Floor Vote:  Ayes 76 - Noes 0


                                        KEY ISSUES

           IF  A PERSON DISPENSES NITROUS OXIDE TO ANOTHER PERSON WHOM THE  
          DISPENSER KNOWS OR HAS "REASON TO BELIEVE" WILL INHALE IT FOR  
          INTOXICATION, SHOULD THE DISPENSER BE GUILTY OF A MISDEMEANOR IF THE  
            PERSON OBTAINING THE NITROUS OXIDE CAUSES DEATH OR GREAT BODILY  
          INJURY TO HIMSELF, HERSELF OR  ANOTHER? 

          SHOULD A DISPENSER OF NITROUS OXIDE RECORD THE IDENTIFYING  
          INFORMATION AND SIGNATURE OF THE PERSON OBTAINING IT AND WARN THE  

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          PERSON THAT INHALATION FOR INTOXICATION IS DANGEROUS AND UNLAWFUL  
          AND THAT DISPENSATION FOR SUCH A PURPOSE IS UNLAWFUL?

          SHOULD THE IDENTIFYING INFORMATION ABOUT A PERSON OBTAINING NITROUS  
          OXIDE BE AVAILABLE TO THE BOARD OF PHARMACY OR LAW ENFORCEMENT  
          PURSUANT TO A WARRANT?


                                       PURPOSE

          The purpose of this bill is to 1) provide that a dispenser or  
          distributor of nitrous oxide  is guilty of a misdemeanor if the  
          dispenser knows or has reason to believe that the person  
          obtaining the nitrous oxide will use it for intoxication and  
          that person or another person dies or suffers great bodily  
          injury as a result; 2) require the dispenser or distributor to  
          view the person's government-issued identification and record  
          the person's identifying information in a written or electronic  
          document; 3) require the dispenser or distributor to sign and  
          date the document and obtain the dated signature of the person  
          obtaining the nitrous oxide; 4) require the dispenser or  
          distributor to warn the person obtaining the nitrous oxide that  
          use for intoxication is dangerous and illegal and that  
          dispensing for such a purpose is illegal; and 5) authorize law  
          enforcement or the board of pharmacy to obtain the information  
          pursuant to a warrant.   

           Existing law  provides that any person that possesses nitrous  
          oxide (N2O) or any substance containing N2O with the intent to  
          inhale or ingest it for purposes of intoxication or distorting  
          of the senses or mental processes, is a guilty of a misdemeanor  
          punishable by imprisonment in a county jail by a term not to  
          exceed six months, a fine not to exceed $1,000, or both.  Being  
          under the influence of N2O is also a misdemeanor with the same  
          penalties.  (Pen. Code � 381 subd. (b).)

           Existing law  states that every person who sells, furnishes or  
          administers a device or receptacle containing N2O or a chemical  
          compound containing N2O to a person under 18 years of age is  
          guilty of a misdemeanor punishable by imprisonment in a county  
          jail by a term not to exceed six months, by a fine not to exceed  
          $1,000, or by both imprisonment and a fine.  The court shall  

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          consider ordering community service as a condition of probation.  
           (Pen. Code � 381c, subd. (b).)

           Existing law  provides that it is a defense to the crime of  
          selling or dispensing N2O to a minor that the defendant honestly  
          and reasonably believed that the minor was at least 18 years of  
          age.  (Pen. Code � 381c, subd. (c)(1)-(2).)

           This bill  makes it a misdemeanor punishable by a term of  
          imprisonment not to exceed six months, by a fine not to exceed  
          $1,000, or both, for any person to dispense or distribute N2O to  
          a person knowing or having reason to believe that the N2O will  
          be ingested or inhaled by the person for the purposes of causing  
          intoxication, euphoria or stupefaction and that person  
          proximately cause great bodily injury or death to himself,  
          herself, or any other person.

           This bill  requires a person who distributes or dispenses nitrous  
          oxide to record each transaction involving N2O in a written or  
          electronic document.  The person dispensing or distribution the  
          N2O shall require the purchaser to sign the document, provide a  
          residential address and present a valid government issued photo  
          identification.  The person dispensing or distributing the N2O  
          shall sign and date the document and retain it at the business  
          address for one year from the date of the transaction.

           This bill  states that a person dispensing or distributing N2O  
          shall make transaction records available during normal business  
          hours for inspection and copying by officers and employees of  
          the California State Board of Pharmacy, or of other law  
          enforcement agencies of this state or of the United States, upon  
          presentation of a duly authorized search warrant.

           This bill  requires that the document used to record each  
          transaction shall inform the purchaser of all of the following:

                 The inhalation of N2O may be hazardous to your health;
                 That it is a violation of state law to possess N2O or  
               any substance containing N2O with the intent to breathe,  
               inhale, or ingest it for the purpose of intoxication;  
               outside of a clinical setting; and,
                 That it is a violation of state law to knowingly  

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               distribute or dispense N2O or any substance containing N2O,  
               to a person who intends to breathe, ingest, or inhale it  
               for the purpose of intoxication.

           This bill  states that these requirements shall not apply in the  
          following circumstances:

                 Where N2O is administered for the purpose of providing  
               medical or dental care by a medical or dental provider  
               licensed by this state or at the direction or under the  
               supervision of a practitioner licensed in this state;
                 Where the N2O is contained in food products for use as a  
               propellant; and,
                 Where a transaction involves a   wholesaler licensed by  
               the Board of Pharmacy or "a manufacturer classified under  
               Code Number 325120 or 424690 of the North American Industry  
               Classification System (NAICS)."

                    RECEIVERSHIP/OVERCROWDING CRISIS AGGRAVATION

          For the last several years, severe overcrowding in California's  
          prisons has been the focus of evolving and expensive litigation  
          relating to conditions of confinement.  On May 23, 2011, the  
          United States Supreme Court ordered California to reduce its  
          prison population to 137.5 percent of design capacity within two  
          years from the date of its ruling, subject to the right of the  
          state to seek modifications in appropriate circumstances.   

          Beginning in early 2007, Senate leadership initiated a policy to  
          hold legislative proposals which could further aggravate the  
          prison overcrowding crisis through new or expanded felony  
          prosecutions.  Under the resulting policy, known as "ROCA"  
          (which stands for "Receivership/ Overcrowding Crisis  
          Aggravation"), the Committee held measures that created a new  
          felony, expanded the scope or penalty of an existing felony, or  
          otherwise increased the application of a felony in a manner  
          which could exacerbate the prison overcrowding crisis.  Under  
          these principles, ROCA was applied as a content-neutral,  
          provisional measure necessary to ensure that the Legislature did  
          not erode progress towards reducing prison overcrowding by  
          passing legislation, which would increase the prison population.  
            

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          In January of 2013, just over a year after the enactment of the  
          historic Public Safety Realignment Act of 2011, the State of  
          California filed court documents seeking to vacate or modify the  
          federal court order requiring the state to reduce its prison  
          population to 137.5 percent of design capacity.  The State  
          submitted that the, ". . .  population in the State's 33 prisons  
          has been reduced by over 24,000 inmates since October 2011 when  
          public safety realignment went into effect, by more than 36,000  
          inmates compared to the 2008 population . . . , and by nearly  
          42,000 inmates since 2006 . . . ."  Plaintiffs opposed the  
          state's motion, arguing that, "California prisons, which  
          currently average 150% of capacity, and reach as high as 185% of  
          capacity at one prison, continue to deliver health care that is  
          constitutionally deficient."  In an order dated January 29,  
          2013, the federal court granted the state a six-month extension  
          to achieve the 137.5 % inmate population cap by December 31,  
          2013.  

          The Three-Judge Court then ordered, on April 11, 2013, the state  
          of California to "immediately take all steps necessary to comply  
          with this Court's . . . Order . . . requiring defendants to  
          reduce overall prison population to 137.5% design capacity by  
          December 31, 2013."  On September 16, 2013, the State asked the  
          Court to extend that deadline to December 31, 2016.  In  
          response, the Court extended the deadline first to January 27,  
          2014, and then February 24, 2014, and ordered the parties to  
          enter into a meet-and-confer process to "explore how defendants  
          can comply with this Court's June 20, 2013, Order, including  
          means and dates by which such compliance can be expedited or  
          accomplished and how this Court can ensure a durable solution to  
          the prison crowding problem."

          The parties were not able to reach an agreement during the  
          meet-and-confer process.  As a result, the Court ordered  
          briefing on the State's requested extension and, on February 10,  
          2014, issued an order extending the deadline to reduce the  
          in-state adult institution population to 137.5% design capacity  
          to February 28, 2016.  The order requires the state to meet the  
          following interim and final population reduction benchmarks:

                 143% of design bed capacity by June 30, 2014;

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                 141.5% of design bed capacity by February 28, 2015; and,
                 137.5% of design bed capacity by February 28, 2016. 

          If a benchmark is missed the Compliance Officer (a position  
          created by the February 10, 2016 order) can order the release of  
          inmates to bring the State into compliance with that benchmark.   


          In a status report to the Court dated May 15, 2014, the state  
          reported that as of May 14, 2014, 116,428 inmates were housed in  
          the State's 34 adult institutions, which amounts to 140.8% of  
          design bed capacity, and 8,650 inmates were housed in  
          out-of-state facilities.   

          The ongoing prison overcrowding litigation indicates that prison  
          capacity and related issues concerning conditions of confinement  
          remain unresolved.  While real gains in reducing the prison  
          population have been made, even greater reductions may be  
          required to meet the orders of the federal court.  Therefore,  
          the Committee's consideration of ROCA bills -bills that may  
          impact the prison population - will be informed by the following  
          questions:

                 Whether a measure erodes realignment and impacts the  
               prison population;
                 Whether a measure addresses a crime which is directly  
               dangerous to the physical safety of others for which there  
               is no other reasonably appropriate sanction; 
                 Whether a bill corrects a constitutional infirmity or  
               legislative drafting error; 
                 Whether a measure proposes penalties which are  
               proportionate, and cannot be achieved through any other  
               reasonably appropriate remedy; and,
               Whether a bill addresses a major area of public safety or  
               criminal activity for which there is no other reasonable,  
               appropriate remedy.

                                       COMMENT

          1.  Need for This Bill  

          According to the author:

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               AB 1735 will make it a misdemeanor to knowingly  
               distribute Nitrous Oxide to a customer for an illegal  
               use and where that person causes great bodily injury  
               or death, require Nitrous Oxide distributors to  
               provide customers with written information on the  
               dangers of illegal Nitrous Oxide use.

               These safeguards will help to reduce the illegal sale  
               and consumption of Nitrous Oxide, hold distributors  
               and consumers accountable to ensure its proper use and  
               ultimately reduce the number of injuries and violent  
               crimes committed as a result of illegal NOS  
               consumption throughout California.

          2.  Unusual Criminal Knowledge Standard - the Defendant Knows or  
            "has Reason to Believe" Nitrous Oxide will be Inhaled for  
            Intoxication  

          The most basic definition of a crime is a prohibited act that is  
          done with a criminal intention or state of mind.  For some  
          crimes, the relevant state of mind is that the defendant knew or  
          should have known a specified fact.  For example, where a  
          defendant faces enhanced penalties because the victim is  
          elderly, the prosecution must prove that the defendant knew or  
          should have known the victim was elderly.

          This bill uses the criminal knowledge element that the defendant  
          knew or had reason to believe that a person obtaining N2O would  
          use it for intoxication.  The standard of "reason to believe" is  
          an unusual standard that could be established by speculation  
          about the defendant's subjective awareness, not facts that would  
          bring a reasonable person to know that the N2O would be misused.  
           Prosecutors, courts and defense attorneys would not likely be  
          familiar with or consistently apply the standard in this  
          context.  As noted, because the standard is very broad and  
          amorphous, a defendant would likely argue that because the crime  
          definition is unconstitutionally vague, such that an average  
          person could not reasonably know how to comply with the law.   
          (People v. McCoy (2002) 27 Cal.4th 601, 634.)

          It is suggested that has "reason to believe" be replaced by  

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          "should have known."  The standard that the defendant should  
          have known a specified fact is familiar to courts and  
          practitioners in criminal cases.  

          SHOULD THE ELEMENT THAT THE DEFENDANT HAD "REASON TO BELIEVE"  
          THAT THE PERSON OBTAINING NITROUS OXIDE WOULD USE IT FOR  
          INTOXICATION BE REPLACED BY AN ELEMENT THAT HE OR SHE "SHOULD  
          HAVE KNOWN" OF THE ILLICIT USE OF NITROUS OXIDE?

           3.  No Restrictions on use by the Dispenser of Nitrous Oxide of  
            the Personal Identifying Information about the Person  
            Obtaining the Nitrous Oxide  

          This bill requires law enforcement or officers of the Board of  
          Pharmacy to obtain a warrant before gaining access to  
          identifying information about purchasers or receivers of N2O.   
          However, the bill does not restrict the use of the information  
          by the dispenser or distributor of N2O.  The information could  
          be used for any number of improper purposes, including identity  
          theft.  Further, as the 4th Amendment prohibition on searches  
          and seizures without a warrant only apply to actions by the  
          state, the warrant requirement would not apply if the dispenser  
          or distributor provided the information to law enforcement  
          directly or indirectly.  It is suggested that the distributor or  
          dispenser should have no access to or authorized use of the  
          information other than to record the information, store it and  
          provide it to law enforcement or the Board of Pharmacy upon  
          presentation of a warrant. 

          This bill is similar to existing federal law that requires the  
          recording of personal information about the purchaser of  
          pseudoephedrine and prohibits sales of more than specified  
          amounts of the drug.  Pseudoephedrine is the main ingredient  
          used in illicit methamphetamine manufacturing.  The paper or  
          electronic logs on which the purchaser's identifying information  
          is recorded may be inspected by law enforcement.  Other  
          disclosure or use of the information is subject to federal civil  
          and criminal sanctions.

          There have been a number of bills considered by the Legislature  
          that would require electronic recording of all pseudoephedrine  
          sales in California in a single database.  To address privacy  

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          concerns, the electronic system was to be designed so as to  
          allow the retail clerk to only determine if the purchase would  
          violate the restrictions on the amount of pseudoephedrine a  
          person could purchase.  The information could not otherwise be  
          accessed or used by the clerk.  Further, failure to keep the  
          purchaser's identifying information confidential would be a  
          misdemeanor.

          As noted, this bill does not require the dispenser of N2O to  
          keep the identifying information of the persons obtaining the  
          N2O confidential.  Further, unlike the proposed electronic  
          tracking system for pseudoephedrine purchases, the information  
          about the person obtaining the N2O would not be placed in an  
          electronic system that would not be retrievable by the seller.   
          To be consistent with similar laws, provide an incentive to  
          maintain the confidentiality of the information and to sanction  
          misuse of the information, it is suggested that any use of the  
          information other than to comply with the requirements of this  
          bill be a misdemeanor.

          SHOULD IDENTIFYING INFORMATION OF A PERSON OBTAINING NITROUS  
          OXIDE REMAIN CONFIDENTIAL, WITH NO AUTHORIZED USE OF OR ACCESS  
          TO THE INFORMATION BY THE PERSON DISPENSING OR DISTRIBUTING THE  
          INFORMATION?

          SHOULD FAILURE TO KEEP CONFIDENTIAL THE IDENTIFYING INFORMATION  
          OF PERSONS OBTAINING NITROUS OXIDE BE A MISDEMEANOR?



          4.  North American Industry Classification System  

          This bill exempts transactions involving a "manufacturer  
          classified under Code Number 325120 or 424690 of the North  
          American Industry Classification System (NAICS)."  The United  
          States Census Bureau Website explains:

               The North American Industry Classification System  
               (NAICS) is the standard used by Federal statistical  
               agencies in classifying business establishments for  
               the purpose of collecting, analyzing, and publishing  
               statistical data related to the U.S. business economy.

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               NAICS was developed under the auspices of the Office  
               of Management and Budget (OMB), and adopted in 1997 to  
               replace the Standard Industrial Classification (SIC)  
               system.  It was developed jointly by the U.S. Economic  
               Classification Policy Committee (ECPC), Statistics  
               Canada and Mexico's Instituto Nacional de Estadistica  
               y Geografia 

               325120 Industrial Gas Manufacturing:

               This industry comprises establishments primarily  
               engaged in manufacturing industrial organic and  
               inorganic gases in compressed, liquid, and solid  
               forms.  

          Examples include nitrous oxide manufacturing, helium, hydrogen,  
          dry ice, carbon dioxide and oxygen manufacturing.

               424690 Other Chemical and Allied Products Merchant  
               Wholesalers

               This industry comprises establishments primarily  
               engaged in the merchant wholesale distribution of  
               chemicals and allied products (except agricultural and  
               medicinal chemicals, paints and varnishes, fireworks,  
               and plastics materials and basic forms and shapes).

          Examples include acids, industrial chemicals, automotive  
          chemicals (except lubricating oils and greases) and industrial  
          salts wholesalers

          5.  Use of Nitrous Oxide in Dentistry  

          Nitrous oxide, in combination with pure oxygen, is commonly  
          used for sedation of patients and pain relief during dental  
          procedures.  The website of the American Academy of Dental  
          Pediatrics provides the following information on the use of  
          N2O in dental procedures for children:




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               Nitrous oxide/oxygen (N2O -O2) is a blend of two gases  
               -- oxygen and nitrous oxide.  A fitted mask is placed  
               over the nose and, as the patient breathes normally,  
               uptake occurs through the lungs.  At the end of  
               treatment, it is eliminated after a short period of  
               breathing oxygen and has no lingering effects. 

               [The patient] smells a faint, sweet aroma and  
               experience a sense of well-being and relaxation.   
               Since it may produce a feeling of giddiness or  
               euphoria, it is often called "laughing gas."  Children  
               sometimes report dreaming and their arms and legs may  
               feel "tingly."  It raises the pain threshold and may  
               even make the time appear to pass quickly. 

               Nitrous oxide/oxygen is perhaps the safest sedative in  
               dentistry.  It is well tolerated.  It has a rapid  
                                                                  onset, is reversible, can be adjusted in various  
               concentrations and is non-allergenic.  Your child  
               remains fully conscious -- keeps all natural reflexes  
               -- when breathing nitrous oxide/oxygen.  He/she will  
               be capable of responding to a question or request.   
               Nitrous oxide/oxygen may also be used in combination  
               with other sedative agents.



















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          6.  Use of Nitrous Oxide in Food Preparation, Motor Sports and  
            Model Rockets

           NO is commercially sold in a steel cylinder or cartridge  
          primarily as a whipping agent for use in a whip cream dispenser  
          and in some cooking sprays.  NO is commonly used in coffee  
          shops and restaurants to make whipped cream as its  
          bacteriostatic properties keep bacteria from growing and because  
          NO produces a lighter, fluffier whipped cream.  

          NO is also used as an oxidizer in model rockets and motor  
          vehicle racing due to its low temperature and high oxygen  
          content. 

          7.  Argument in Support  

          The   Los Angeles County Sheriff's Department argues:

               Nitrous oxide use has spiked in the last several  
               years.  Social media has become a popular place to  
               advertise parties that include nitrous oxide.  The  
               Department has investigated murder, assault, rape,  
               vehicle collisions and other crimes that surround the  
               use of nitrous oxide.

               Oftentimes, businesses that advertise themselves as  
               auto parts suppliers, conduct a large business as  
               distributors of nitrous oxide which is used at large  
               parties advertised on social media.  Currently, that  
               practice is not illegal; however, Assembly Bill 1735  
               will address this problem.

          8.  Argument in Opposition  

          The American Civil Liberties Union states:

               We are concerned about infringing on individual's  
               right to privacy in their purchases of lawful products  
               by requiring them to provide their name, address, and  
               driver's license information.  People should not be  
               required to provide detailed personal information to  
               purchase products.  This is not just an abstract  

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               privacy concern, but also a safety issue because  
               retailers and their employees could use the  
               information for unauthorized purposes.  Finally, the  
               state should not be requiring the gathering of  
               personal information without demonstrating a  
               compelling need for that information and showing that  
               there are no less intrusive means to achieve that  
               interest.



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