California Begins Targeted Campaign to Reduce Illegal Tobacco Sales to Minors.

News Editors/Business Editors/Health/Medical Writers

SACRAMENTO, Calif.--(BUSINESS WIRE)--Feb. 19, 2004

State Announces Increased Retailer Surveillance, Stricter Enforcement

and New Legislation Calling for Severe Penalties for Retailers Who

Break the Law

In an effort to stop illegal tobacco sales to minors, five state agencies today announced a new partnership and enforcement effort to target tobacco retailers who break the law.

Combining the resources of the California Department of Alcohol and Drug Programs (ADP), the California Department of Health Services (CDHS), the California State Board of Equalization (BOE), the California Department of Alcoholic Beverage Control (ABC) and the Office of the Attorney General, the crackdown includes increased retailer surveillance, implementation of new tobacco licensing requirements and a new outreach campaign to raise awareness about the problem of retailers selling tobacco products to minors. In addition, new legislation has been introduced to increase penalties for tobacco retailers who continue to break the law.

"Selling tobacco products to children is not only illegal, it is just wrong," said S. Kimberly Belshe, secretary of the California Health and Human Services Agency. "This Administration will not sit idly by while some retailers choose to turn a blind eye to the law and put children's health at risk."

Data from the 2003 California Youth Tobacco Purchase Survey demonstrates that non-traditional tobacco retailers consistently have the highest rate of illegal tobacco sales to youth. Deli/meat/produce markets sold to youth 26.7 percent of the time, while venders categorized as "other," including doughnut shops, discount "dollar" stores and pharmacies, sold to teens 19.9 percent of the time. Also, tobacco sales to 16 year olds were significantly higher than sales to 15 year olds (16.2 percent versus 9.1 percent).

Additionally, the 2002 California Tobacco Survey (CTS) shows that 61.7 percent of established daily teen smokers report that it is easy to buy a pack of cigarettes. The data also show that less than 25 percent of youth who usually buy their own cigarettes reported being asked for identification the last time they attempted to buy tobacco.

"Retailers must take full responsibility and stop illegally selling tobacco products to children," said Kathryn Jett, director of ADP. "In addition, federal law requires states to keep the illegal sales rate below 20 percent. If we don't, more than $100 million in grants from the federal government would be at risk. These grants fund important substance abuse and treatment programs. The loss of such critical funds because of retailer irresponsibility would be bad news for California, particularly during the current budget crisis."

The BOE also announced the implementation of Assembly Bill 71, which established the Cigarette and Tobacco Products Licensing Act of 2003. This new law mandates that retailers, wholesalers, distributors and cigarette manufacturers and importers cannot sell cigarettes or tobacco products in California unless they are licensed by the BOE. Retailer applications must be filed by April 15, 2004, and retailers must be licensed by June 30, 2004.

"Every California retailer, wholesaler and distributor of tobacco must apply for a state license," said Carole Migden, chairwoman of BOE. "Failure to hold a BOE-issued tobacco retailer's license will result in severe penalties and restrictions on selling tobacco."

Additionally, new legislation sponsored by the Schwarzenegger Administration will strengthen the state's effort to break the cycle of teen addiction. As proposed, the legislation would:

-- Increase penalties for selling tobacco to minors.

-- Increase penalties for failure to post Stop Tobacco Access to

Kids Enforcement (STAKE) Act signs.

-- Ensure that local law enforcement has authority to enforce the

STAKE Act and levy fines.

"Selling tobacco to children is a serious offense and must be met with serious repercussions," said Belshe. "While I am pleased that a majority of California retailers comply with existing law, this legislation will hold accountable those who continue to break the law."

In its ongoing effort to educate California retailers, CDHS created new advertisements that will be posted in tobacco retail trade publications, convenience stores and bus shelters through June 2004. CDHS will also begin a direct mail campaign to tobacco retailers to emphasize the consequences of selling tobacco products to minors.

"While we have made great progress in California, we must not rest as long as youth still find it so easy to buy cigarettes," added Belshe.

Tobacco use remains the number one preventable cause of death in the United States and kills more than 44,000 Californians each year. Studies show that teens become addicted to tobacco faster than adults. Also, according to the 2002 CTS, more than 74 percent of current adult smokers in the state started smoking before age 18.