1. Sales to Minors
2. Single Cigarettes
3. Stop Tobacco Access to Kids Enforcement Act (STAKE) Act
   1. Background
   2. Program Requirements
   3. STAKE Act Enforcement Activities
4. Smoke-Free Laws (Workplaces and Bars)
5. Reporting Violations of State Laws
6. Tobacco Taxes
   1. Tobacco taxes and smoking rates
   2. Tobacco taxes and anti-tobacco media campaigns
   3. Proposition 99 and the Legislative Mandate for the California Tobacco Control Program
   4. Proposition 10
   5. Master Settlement Agreement
   6. Legislative tax
7. Master Settlement Agreement
   
   1. Background
   2. Tobacco Payments to California
8. Sales to Minors Rates - Youth Tobacco Purchase Survey
9. Links - State Tobacco Laws and Regulations

Sales to Minors
Penal Code Section 308(a)

• It is unlawful to knowingly sell, give, or in any way furnish cigarettes or tobacco products to persons under 18 years of age. In the case of bending machines, the person who authorizes the installation or placement of a tobacco vending machine is liable for any sale to a minor.
• Each offense is subject to either criminal action as a misdemeanor or to civil action, punishable by a fine of $200 for the first offense, $500 for the second offence, and $1,000 for the third offense
• A minor who purchases, receives or posses any tobacco products may be punished by a fine of $75 or 30 hours of community service.
• Businesses that sell tobacco products must post a warning sign at each point of sale stating that selling tobacco products to minors is illegal and subject to penalties. Warning signs must include a toll-free telephone number (1-800-ASK-4-ID) that customers may use to report observed tobacco sales to youth under the age of 18.
• Any business that fails to post such a sign shall, upon conviction, be punished by a fine of ten dollars ($10) for the first offense and fifty dollars ($50) for each succeeding violation of this provision of this provision, or by imprisonment for not more than 30 days.
• A city or county may not adopt an ordinance or regulation inconsistent with this action.

Single Cigarettes
Penal Code Section 308.2

It is illegal to sell one or more cigarettes separately. Cigarettes must be sold in the manufacturer's package, sealed and properly labeled, according to federal requirements.

Stop Tobacco Access To Kods Enforcement (STAKE) Act
Background
In 1992 Congress passed Section 1926 of Title XIX of the federal Public Health Service Act, commonly called the Synar Amendment. The Synar Amendment requires states to pass and enforce laws that prohibit the sale of tobacco to individuals under 18 years of age. It also requires that federal alcohol and substance abuse block grant funding be applied to enforcing state law in a a manner that can reasonably be expected to reduce the illegal sales rate of tobacco products to minors. Up to 40% of the block grant funding can be withheld from states for not complying with the Synar Amendment.

In May 1994, the Department of Health Services, Tobacco Control Section (DHS/TCS) and tobacco control advocates from 23 counties throughout the state undertook an unprecedented massive effort to document how easily available tobacco products were to minors. Over 400 youth, 13-17 years of age, surveyed more than 1,800 retail stores. The results of the 1994 Youth Purchase Survey indicated that the illegal sales rate was 52.1%.

In September 1994, the Stop Tobacco Access to Kids Enforcement (STAKE) Act was signed into law creating Business & Professions Code 22950 - 22960 to address the increase in tobacco sales to minors and fulfill the federal mandate.

Program Requirements
The STAKE Act created a new statewide enforcement program to take regulating action against businesses that illegally sell tobacco to minors. Authority for enforcement and responsibility for implementation of the program was delegated to the Department of Health Services, Food & Drug Branch (FDB). The Act required DHS 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 old minors granted immunity;
• 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 clerks check the identification of youthful-appearing persons prior to a sale;
• assess civil penalties ranging from $200 to $6,000 against the store owner for violations; and
• comply with the SYNAR Amendment and prepare an annual report regarding enforcement activities and their effectiveness for the federal government, Legislature, and Governor. Thus the STAKE Program was initiated.

STAKE Act Enforcement Activities (as of June 15, 2000)

Compliance checks began December 27, 1995

8,934 compliance checks conducted Statewide (all 58 counties)

Of the 8,934 compliance checks, 2,599 have resulted in illegal sales of tobacco to minors resulting in a 29% illegal sales rate. During FY 97/98 our sales rate declined to 26% where it remained during FY 98/99.

2,314 cases closed during the penalty assessment phase (fines paid).

Amount of fines collected: $699,050

415 cases have been referred to Legal for further action, of which 62 are still pending administrative hearings. (261 paid their fines after receiving notice from Legal, 75 cases have resulted in default judgments, 3 cases closed via settlement agreements and 14 cases have been closed for various reasons upon the recommendation of counsel).

52 administrative hearings have been heard to date. All final decisions, but two, have been in favor of DHS and the penalty assessments have been paid or are pending.

Smoke-Free Laws - Warkplace and Bars
The State of California, Section 6405.5 of the Labor Code, bans smoking in the workplace, including restaurants and bars, on a statewide basis January 1, 2000 marked the five-year anniversary of California's Law for a Smoke-Free Workplace, Assembly Bill 13, the public health measure designed to protect all employees from exposure to secondhand smoke in indoor workplaces. It is also the two-year anniversary of this law's requirement that bars must be smoke-free.

Since this landmark public health measure was passed by the legislature and signed into law, the number of Californians protected from secondhand smoke in the workplace has grown tremendously and the scientific evidence on the health risks associated with secondhand smoke exposure continues to mount.

According to the California Department of Health Services, only 35 percent of California workers were protected from secondhand smoke in 1990. In 1996, 90 percent of California adults employed indoors were protected from having to breathe someone else's smoke.

With the implementation of the Smoke-Free Bar provision in 1998, nearly all workers are now protected. An additional 800,000 employees became protected through the Smoke-Free Bar component of the law.

"Thanks to California's law requiring smoke-free workplaces, workers do not have to choose between their jobs and their health," said David Burns, M.D., a volunteer with the American Lung Association of California. "There is overwhelming scientific evidence that exposure to secondhand smoke poses a serious health risk, and experts have concluded that there is no safe level of exposure. It is a known human cancer-causing agent and causes an estimated 35,000 to 62,000 deaths annual from cardiovascular disease."

"Despite what the tobacco industry would have you believe, secondhand smoke is not a minor inconvenience that should be tolerated. It is a serious public health concern," added Dr. Burns.

"Public health policy must be based on unbiased scientific evidence, not dictated by well-funded tobacco industry front groups," he said. "It is unfortunate that the tobacco industry is trying to protect its bottom line at the expense of public health."

A study recently published in the Journal of the American Medical Association shows that bartenders who worked in smoke-free conditions for as little as one month had a significant drop in respiratory problems and improved lung function. According to the study, in the month before the smoke-free bars provision went into effect, about three-fourths of surveyed bartenders reported respiratory symptoms such as wheezing, coughing and phlegm production. One to two months after the law, nearly 60 percent of those who had indicated respiratory symptoms were now symptom-free. Even bartenders who are smokers showed improved respiratory symptoms and function.

"The last four years have proven California's Law for a Smoke-Free Workplace to be a winner for employees and customers because they do not have to involuntarily breathe someone else's toxic smoke and for California's economy, especially the tourism and hospitality industries," Dr. Burns said. "Contrary to predictions of the National Smokers' Alliance, a tobacco industry front group, American Lung Association surveys show that the smoke-free bar law is supported and compliance is widespread."

Opponents to AB 13 argued that its passage would result in fewer tourists and reduced tourism revenue in California. Since 1995, the year AB 13 went into effect, tourism expenditures in California have grown from $53.8 billion in 1995 to $61.2 billion in 1997 and California continues to be a prime location for visitors.

Opponents also argued that restaurants and bars would see massive reduction in their revenue due to the smoke-free requirement. However, according to the State Board of Equalization, sales tax figures show that restaurant and bar revenues in the first quarter of

1998 exceeded the first quarter of 1997 by six percent. This growth added an additional $370 million to California's economy.

Public opinion polls show that the overwhelming majority of Californians support the smoke-free workplace law, including the smoke-free bar provision. An August 1998 poll conducted by Field Research Corporation found that of bar patrons surveyed, two-thirds said that it is important to have smoke-free bars. The poll also showed that public support for smoke-free bars has continued to increase, even among smokers.

The Field poll also found that 85 percent of bar patrons reported that they would visit bars more often or not change their bar-going behavior as a result of the law prohibiting smoking in bars. This finding is reflected in recent Board of Equalization sales tax figures showing that restaurant and bar revenues have increased since the smoke-free law went into effect.

In San Francisco, a random survey of 217 bars indicated that 78.3 percent were in compliance. Other compliance checks with the smoke-free bar law produced these American Lung Association survey results: Earlier this year in Sacramento, approximately 70 percent of the 60 local bars surveyed, including many sports bars, indicated that implementation of the smoke-free bar law is going smoothly with no problems. In addition, 100 percent of 35 downtown bars in San Diego were in compliance, according to a report released by the San Diego office around the time of the Super Bowl, plus another 87 percent in the City of Coronado (in San Diego County).

Also, a 1998 February 10 ALA report documents that, of 42 bars in three San Mateo County cities, 86 percent were in compliance. The Contra Costa/Solano's BREATH Project survey shows 94 percent compliance among bars and restaurants in San Francisco's Fisherman's Wharf tourist area and 100 percent compliance among the 11 bars and restaurants visited at Jack London Square, an Oakland tourist area. And, total sales tax receipts for all 118 Chico establishments holding licenses to serve alcohol increased by 10.3 percent in 1997 compared to 1996.

"The tobacco industry would have the public believe that a ventilation standard is possible for safe exposure to carcinogenic secondhand smoke," said Dr. Burns. "There is no safe level of exposure to secondhand smoke and tobacco companies cannot be entrusted to write California's health laws." Secondhand smoke is classified as a Group A Carcinogen by the Environmental Protection Agency (EPA).

Reporting Violations of State Laws
As part of California's comprehensive campaign to address youth tobacco use, residents are urged to call the state's toll-free number if they see suspected unlawful sales of tobacco to individuals under the age of 18 at 1-800-5 ASK-4-ID or (800) 527-5443.

County Health Services ensures compliance of state smoking law and local smoking ordinances for the County of San Diego and the cities of San Diego, Chula Vista, Coronado, El Cajon, Imperial Beach, National City, Santee and Vista.
Call: 619-515-6693. Other cities govern their own smoking ordinances.

Tobacco Taxes
Tobacco taxes and smoking rates
Raising the tobacco tax is an important step toward reducing smoking, especially among youth, because the increased cost drives down consumption. Tobacco consumption in California has dropped 30 percent since Proposition 10 became effective January 1.

Tobacco taxes and anti-tobacco media campaigns The projected reduction in Proposition 99 revenues over the next several years will impede California's ability to wage an effective anti-tobacco campaign. The passage of Proposition 10, which raised the tobacco tax by 50 cents per pack, and the tobacco industry's 45 cent per pack price increase will have an enormous impact on revenues available for tobacco prevention and control programs.

Proposition 99 and the Legislative Mandate for the California Tobacco Control Program In November 1988, California voters approved the California Tobacco Tax and Health Promotion Act of 1988 (Proposition 99), which increased the state surtax on cigarettes by 25 cents per pack (and an equivalent amount on other tobacco products). Revenues from the new tobacco tax were earmarked for tobacco-related disease research, health education against tobacco, and health care for medically-indigent families.

Twenty percent of revenues from the new tax were earmarked for health education efforts aimed at the prevention and reduction of tobacco use. Approximately one-third of the health education funds go to the California Department of Education and two-thirds go to the Department of Health Services. The authorizing legislation established the goal of reducing tobacco consumption by 75 percent in the State of California by the year 1999.

The mandate for the Tobacco Control Program is contained in California Health and Safety Code, Chapter 1.2, commencing with Section 104350. The California Department of Health Services was charged with conducting a variety of innovative approaches to reduce tobacco use, including a statewide media campaign, tobacco control programs in local health departments, competitively-selected state, regional and community-based projects as well as an extensive evaluation of the entire tobacco education campaign. The Department created a Tobacco Control Section in its Cancer Control Branch to implement these programs

Proposition 10 Proposition 10 was passed in November 1998 and raised the tobacco tax 50 cents per pack of cigarettes and the equivalent of $1 on other tobacco products. The initiative, which was spearheaded by Rob Reiner and supported by the American Lung Association and other health groups, earmarked tobacco tax revenues for childhood development and other programs aimed at helping young families, including smoking cessation courses for parents who smoke.

Master Settlement Agreement Tobacco industry agreed to raise cigarette prices 45 cents per pack tax.

Legislative Tax California State Legislature passed a 2 cent tobacco tax in 1994 that was tacked on for Breast Cancer Research.

Master Settlement Agreement
Background
On December 9, 1998 Judge Ronald S. Prager of the San Diego County Superior Court approved California's settlement between the State and major U.S. tobacco manufacturers. This agreement was part of a multi-state deal negotiated between eight state attorneys general, including then Attorney General Dan Lungren, and the tobacco companies.

The attorneys general of 46 states signed on to the settlement and the four remaining states-Florida, Minnesota, Mississippi, and Texas-previously settled their lawsuits with the tobacco industry. The four companies that negotiated the agreement are: Brown & Williamson Tobacco Corporation; Lorillard Tobacco Company; Philip Morris Incorporated; and R.J. Reynolds Tobacco Company. These companies represent 97.5 percent of tobacco sales in the United States, and according to the Legislative Analyst's Office, the agreement has been signed by additional smaller tobacco manufacturers and now 99.7 percent of tobacco sales are covered under the agreement.

The multi-state agreement requires the tobacco companies to make payments to the states totaling $206 billion over the next 25 years, and to abide by voluntary advertising and marketing restrictions aimed at reducing youth smoking. This includes:

• Banning youth targeting so tobacco companies may not directly or indirectly target youth in the advertising promotion or marketing of tobacco products.
• Banning cartoons such as Joe Camel.
• Banning certain tobacco brand name sponsorships and imposing restrictions on others.
• Restricting outdoor advertising of tobacco products.
• Banning payment for tobacco product placement in media.
• Banning distribution of tobacco brand name merchandise except contracts existing as of June 20, 1997.
• Requiring minimum pack size for cigarettes of at least 20 cigarettes until December 31, 2001.
• Limiting third party use of tobacco brand names.
• Banning payment for use of non-tobacco brand names for tobacco products.
• Restricting free samples of cigarettes to adult-only facilities.

San Diego County received $30.7 million to 33.7 million for FY 2000-2003. Of this amount $2 million is expected to be allocated for tobacco prevention programs. The County Board of Supervisors voted to use the entire allotment for health care programs.

The City of San Diego received $--- million. The City Council has made no decision on how to spend the money.

For more detailed information on the Master Settlement Agreement, contact:

Sales to Minors Rates - Youth Tobacco Purchase Survey

More California retailers selling Tobacco to kids - Illegal sales climb nearly one-third in 1999

The number of California retailers who illegally sold tobacco to kids increased for the first time in five years, according to the 1999 Youth Tobacco Purchase Survey released in April this year by the California Department of Health Services (DHS). The overall illegal sales rate rose to 16.9 percent, a 29 percent increase over 13.1 percent in 1998.

The results are part of the fifth annual random survey of the state's retail stores to determine compliance with state and federal laws prohibiting the sale of tobacco to children.

"We are startled and disappointed by the giant step back some retailers have taken by selling tobacco to our children," said State Health Director Diana Bontá. "The resurgence in illegal sales is disturbing because the ramifications are staggering.

Every day in California nearly 300 children become addicted to tobacco. One-third of them will die prematurely from their addiction."

Until the latest survey, annual figures had been showing a steady decline in illegal sales to minors: 37 percent in 1995, 29.3 percent in 1996 and 21.7 percent in 1997.

The survey is conducted by DHS to measure California's rate of illegal tobacco

sales to minors. It is done in compliance with the California Stop Tobacco Access to Kids Enforcement (STAKE) Act and federal law, both of which were developed to address the health consequences of tobacco use among children. The first such survey was conducted in 1995, the year the STAKE Act went into effect.

"The message is simple but serious: Retailers in California must pay more attention to the age of customers seeking to purchase tobacco," said Bontá. "Simply asking for the ID card is not enough - retailers must verify that the customer is at least 18 years of age. The California law forbidding tobacco sales to minors has been on the books for more than 100 years, so there is no excuse for an increase in illegal sales."

The STAKE Act mandates compliance checks of tobacco retailers, requires signs at every retail outlet regarding the illegality of selling tobacco to minors and imposes fines on retailers who break the law. Owners of stores caught illegally selling tobacco products to minors are fined a civil penalty of $300 for their first offense and up to $6,000 for the fifth and each additional violation within a five-year period. DHS' Food and Drug Branch conducts compliance checks throughout the year.

Other findings from the 1999 survey include:

• Businesses most likely to sell tobacco to minors are gas stations, with an illegal sales rate of 32.3 percent, an increase of 57 percent compared to 1998.
• Supermarkets had the most dramatic increase in the rate of illegal sales at 17.3 percent, up from 5.1 percent in 1998, an increase of 238 percent.
• 19.3 percent of small grocery convenience stores had illegal tobacco sales, up 39 percent from 1998.

"We are urging all California retailers - including gas stations, supermarkets and convenience stores - to re-double their efforts to make sure that California's children do not have easy access to tobacco products," added Bontá.

Some California communities have taken additional steps to further stem illegal tobacco sales by issuing revocable licenses to businesses that sell cigarettes, cigars and chewing tobacco. In those communities, tobacco retailers caught selling to minors are fined and can ultimately have their licenses to sell tobacco suspended.

To combat youth smoking the Tobacco Control Section (TCS) of DHS funds anti-tobacco programs throughout California, including local health departments, community-based agencies, regional linkage projects and ethnic networks. These programs conduct a variety of activities that involve youth directly, such as policy advocacy, leadership training, education, media literacy, coalition building, letter writing campaigns, and public speaking.

Additionally, TCS funds the toll-free Smokers' Helpline that provides free tobacco cessation materials and counseling. The Helpline, at 1-800-NO-BUTTS, also offers services specifically designed for young adults and teens who want to quit using tobacco.

As part of California's comprehensive campaign to address youth tobacco use, residents are urged to call the state's toll-free number if they see suspected unlawful sales of tobacco to individuals under the age of 18 at 1-800-5 ASK-4-ID or (800) 527-5443.

Links
American Lung Association of California Advocacy Network: www.californialung.org/advocacy/html

American Lung Association of California's release on the smoke free workplaces law www.californialung.org/press/981229smokefree.html

STAKE Act information from the California Department of Health
www.dhs.ca.gov/ps/fdb/html/stake/stakeenf.htm
www.dhs.ca.gov/ps/fdb/html/stake/stakebck.htm