BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 648
                                                                  Page  1

          Date of Hearing:   June 25, 2014

                   ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION
                                 Isadore Hall, Chair
                    SB 648 (Corbett) - As Amended:  June 18, 2014

           SENATE VOTE  :   Vote not relevant
           
          SUBJECT  :   Electronic cigarettes: restrictions of use and  
          advertising.

           SUMMARY  :   Prohibits an electronic cigarette (e-cigarette) from  
          being sold, offered for sale, or distributed from a vending  
          machine or appliance, or any other coin or token operated  
          mechanical device, unless the machine or appliance is located at  
          least 15 feet way from the entrance of a premise that has been  
          issued an on-sale public premise license to sell alcoholic  
          beverages.  

           EXISTING LAW  

          1)Requires, under the Stop Tobacco Access to Kids Enforcement  
            Act (STAKE Act), the State Department of Public Health to  
            establish and develop a program to reduce the availability of  
            tobacco products to minors and to enforce those provisions.

          2)Prohibits, under the STAKE Act, a cigarette or tobacco product  
            from being sold, offered for sale, or distributed from a  
            vending machine or appliance, or any other coin or token  
            operated mechanical device designed or used for vending  
            purposes, unless the machine or appliance is located at least  
            15 feet away from the entrance of a premise that has been  
            issued an on-sale public premise license to sell alcoholic  
            beverages, as specified. A violation results in a civil  
            penalty of $400 to $600 for the first violation, a civil  
            penalty of $900 to $1,000 for a second violation within a  
            five-year period, a civil penalty of $1,000 to $1,200 for a  
            third violation within a five year period, a civil penalty of  
            $3,000 to $4,000 for a fourth violation within a five-year  
            period, and a civil penalty of $5,000 to $6,000 for a fifth  
            violation within a five-year period. 

          3)Authorizes, under the Stake Act, the adoption of more  
            restrictive local standards that further restrict access to  
            and reduce the availability of cigarette or tobacco products  








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            from vending machines or devices or ban the sale entirely.

          4)Defines an electronic cigarette as a device that can provide  
            an inhalable dose of nicotine by delivering an inhalable  
            solution. 

          5)Prohibits a person to sell or otherwise furnish an electronic  
            cigarette to a person under 18 years of age. 

           FISCAL EFFECT  :   Unknown

           COMMENTS  :   

           Purpose of the bill  :  According to the author, while sales of  
          electronic cigarettes to minors is illegal under state law,  
          unmanned vending machines that sell electronic cigarettes are  
          providing an avenue for minors to access and buy e-cigarettes,  
          because they do not have the safeguard of a face to face  
          transaction.  

          The author further contends that the use of e-cigarettes by  
          minors has risen rapidly in the last few years.  According to  
          the National Youth Tobacco Survey, in 2012, 1.78 million middle  
          and high school students nationwide had tried e-cigarettes.  
          Clearly, based on these numbers, we need to do more to protect  
          our state's youth from having access to e-cigarettes.  While the  
          FDA's proposed regulations of e-cigarettes include a ban of  
          vending machine sales, these regulations are still in their  
          public comment phase, and there is no guarantee the vending  
          machine ban will ultimately be a part of the regulations the FDA  
          adopts.  It is unclear exactly how many e-cigarette vending  
          machines are currently in use in California.  As this is a  
          growing market, it is better for businesses to provide clear  
          guidelines as to where they can and cannot sell e-cigarettes.

           What are E-Cigarettes?  :  E-cigarettes are devices that emit  
          doses of vaporized nicotine that are inhaled by the user.  Most  
          resemble long-shaped tubes, and many look like the product the  
          user used to smoke, such as a cigarette, cigar, or pipe, while  
          others look like ballpoint pens.  The majority are reusable with  
          replaceable and refillable cartridges. 

          Most of the current e-cigarettes on the market today are  
          automatic, meaning that the user sucks on it and a sensor  
          activates a heating element that vaporizes a liquid solution  








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          held in the mouthpiece.  The basic design is generally similar.   
          E-cigarettes consist of a plastic tube, an electronic heating  
          element, a liquid nicotine cartridge, and a lithium battery and  
          atomization chamber with a membrane to suspend ingredients.   
          Some contain a light emitting diode in the tip which illuminates  
          when the user inhales, or "vapes", giving the appearance of the  
          burning end of conventional cigarettes. 

          E-cigarettes were first developed in China in 2004 with the goal  
          of imitating the efficient nicotine delivery system of a  
          conventional cigarette without the significant harmful effects  
          of tobacco smoke. Chemicals introduced into a liquid vehicle  
          produce aromas and flavors of tobacco, chocolate, mint, and  
          various other flavors.  The concentration of nicotine varies  
          both across different manufacturers and sometimes within the  
          same brand.

           U.S. Food and Drug Administration (FDA)  :   In 2008 the FDA  
          sought to regulate e-cigarettes as drug delivery devices by  
          blocking new e-cigarette shipments into the United States.  In  
          response, an e-cigarette manufacturer sued the FDA in federal  
          court, claiming that the agency did not have the authority over  
          e-cigarettes as drug delivery devices and therefore could not  
          stop the shipments.

          In 2010, the federal court ruled in favor of the manufacturer  
          stating that the FDA may not regulate e-cigarettes as drug  
          delivery devices if they are not marketed as tobacco cessation  
          products.  However, the court also found that the FDA does have  
          the authority to regulate e-cigarettes as tobacco products.  As  
          a result, the FDA issued a warning letter to various e-cigarette  
          distributors informing them that the FDA intends to regulate  
          e-cigarettes in a manner consistent with its mission of  
          protecting the public health.  

          On April 24, 2014, the FDA released those proposed regulations.  
          As part of those proposed rules, the FDA would ban the sale of  
          e-cigarettes to minors.  In addition, the proposed regulations  
          would prohibit companies from distributing free e-cigarette  
          samples and prohibit the sale of e-cigarettes through vending  
          machines, unless the vending machine is in a facility that never  
          admits anyone under the age of 18. 

          The proposed rules are subject to a public comment period of 75  
          days. After that 75 day comment period, the proposed rules could  








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          then be finalized.  

           Arguments in support  :  According to the County Health Executives  
          Association of California, each year, more than 35,000  
          Californians die due to tobacco-related illnesses.  According to  
          the Centers for Disease Control and Prevention (CDC), nearly all  
          tobacco use begins during young and young adulthood. CDC  
          reported that the percentage of U.S. middle and high school  
          students who used e-cigarette more than doubled from 2011-2012.   
          This bill would help ensure youth do not have easy access to  
          e-cigarettes and help prevent and reduce the use of tobacco or  
          nicotine products and their accompanying health and economic  
          impacts on California and its young residents. 

           Policy consideration  :  The manner in which the bill is currently  
          drafted, it might be perceived that e-cigarettes fall under the  
          classification as tobacco cigarettes. The committee may  
          therefore wish to amend the bill in the following way:

          1)On page 3, beginning on line 3: no cigarette, electronic  
            cigarette, as defined in Section 119405 of the Health and  
            Safety Code, or tobacco product shall be sold, offered for  
            sale, or distributed from a vending machine or appliance...

          2)On page 3, beginning on line 9: Commencing January 1, 1996,  
            cigarette, electronic cigarette, as defined in Section 119405  
            of the Health and Safety Code,  or tobacco product vending  
            machines or appliances may be located at least 15 feet away?

          3)On page 3, beginning on line 18: This section and subdivision  
            (b) of Section 22958 set forth minimum state restrictions on  
            the sale of cigarettes, electronic cigarette, as defined in  
            Section 119405 of the Health and Safety Code, or tobacco  
            products?

          4)On page 3, beginning on line 22: restricts access to and  
            reduces the availability of cigarettes, electronic cigarette,  
            as defined in Section 119405 of the Health and Safety Code, or  
            tobacco products from vending machines or devices or that  
            imposes a complete ban on the sale of cigarettes, electronic  
            cigarette, as defined in Section 119405 of the Health and  
            Safety Code, or tobacco products?

          5)On page 3, beginning on line 25: A local standard that further  
            restricts or imposes a complete ban on the sale of cigarettes,  








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            electronic cigarette, as defined in Section 119405 of the  
            Health and Safety Code, or tobacco products?

          6)On page 3, strike out lines 29-31. 

           Related Legislation  :  AB 1500 (Dickinson), 2013-2014 Legislative  
          session.  The bill would have prohibited a delivery seller, as  
          defined, from selling or delivering and  e-cigarette to a person  
          under 18 years of age. (Held in Assembly Appropriations  
          Committee)

           Prior Legislation  : SB 882 (Corbett), Chapter 310, Statutes of  
          2010.  The bill made it unlawful, to the extent not preempted by  
          federal law, for a person to sell or otherwise furnish an  
          e-cigarette to a person under 18 years of age. 

          SB 400 (Corbett), 2009-2010 Legislative Session.  The bill would  
          have defined e-cigarettes as drugs under state law, making them  
          subject to the Sherman Food, Drug, and Cosmetic Law, and would  
          have allowed the Department of Public Health (DPH) to halt the  
          sale, distribution, or offering of e-cigarettes as part of its  
          enforcement of the STAKE Act.  (The bill was vetoed by the  
          Governor)

          SB 1766 (Ortiz), Chapter 686, Statutes of 2002.  The bill  
          requires that all sales of cigarettes in the State be  
          vendor-assisted, face-to-face sales unless the seller receives  
          valid identification, that the purchaser is over 18, the product  
          is shipped to the address provided on the identification, the  
          sales is at least for two cartons, and the seller either  
          provides the State Board of Equalization with all taxes due on  
          the sale or includes with the shipment a notice that the  
          purchaser is  
          responsible for state taxes.  

          AB 1830 (Frommer), Chapter 685, Statutes of 2002.  The bill  
          prohibits the sales of tobacco products to minors through the  
          United States Postal Service or through any other public or  
          private postal or package delivery service, and imposes  
          specified age-verification requirements on tobacco product  
          sellers or distributors.

          AB 686 (Tucker), Chapter 823, Statutes of 1995. The bill  
          prohibit a cigarette from being sold, offered for sale, or  
          distributed from a vending machine or appliance, or any other  








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          coin or token operated mechanical device, unless the machine or  
          appliance is located at least 15 feet way from the entrance of a  
          premise that has been issued an on-sale public premise license  
          to sell alcoholic beverages 

          SB 1927 (Hayden), Chapter 1009, Statutes of 1994.  The bill  
          enacted the STAKE Act to address the increase in tobacco sales  
          to minors in California and fulfill the federal mandate that  
          prohibited the sale of cigarettes and tobacco products to  
          minors.


           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          County Health Executives Association of California
           
            Opposition 
           
          None on file

           Analysis Prepared by  :    Felipe Lopez / G. O. / (916) 319-2531