Recent Developments in California & Nationally

Date:     May 20, 2016

To:         To Our Valued California Customers

From:     Charles J. Janigian

Subject:  Recent Developments in California & Nationally

In case you have not been following the news the following is a recap of Legislative Bills signed into by Governor Jerry Brown:

SB5X2 by Senator Mark Leno, Democrat, San Francisco, will classify e-cigarettes as tobacco products, making them subject to the same restrictions as cigarettes, such as smoke-free laws in and around public buildings and workplaces and civil penalties for those caught selling to minors.

SB7X2 by Senator Ed Hernandez, Democrat, Azusa, will make it a crime to sell tobacco to anyone under 21, with an exemption for active military personnel. There will be no penalties, however, for anyone smoking under the age of 21.

AB7X2 by Assemblyman Mark Stone, Democrat, Monterey Bay, will remove many legal exemptions that allow smoking in indoor workplaces.

AB9X2 by Assemblymen Tony Thurmond, Democrat, Richmond, and Adrin Nazarian, Democrat, Sherman Oaks, will require all schools to be tobacco free.

AB11X2 by Adrin Nazarian, Democrat, Sherman Oaks, will increase the state’s tobacco licensing fee from a one-time $100 fee to a $265 annual fee and increase the distributor and wholesaler license fee from $1000 to $1,200 annually.

The Governor did veto the following Bill:

AB10X2 by Assemblyman Richard Bloom, Democrat, Santa Monica, which would have allowed counties and cities to ask for voter approval on local tobacco taxes.

In addition, the campaign to raise California’s cigarette tax by $2 a pack has collected enough signatures to qualify the proposal for the November 8, 2016 ballot. In addition to the $2 a pack cigarette tax increase there would be an equivalent tax increase on all other tobacco products.

The FDA announced it will extend Federal regulatory authority over e-cigarettes. In addition it will extend its authority over the premium cigar industry.

We will keep you informed of all developments as they occur.