What do all these tobacco terms mean?
Where does all the tobacco money go?
Proposition 99
Prop. 99 was passed by the voters of California in November 1988. It
added a 25 cent per pack tax on tobacco products. The San Mateo County
Tobacco Prevention Program (TPP) receives about $172,000 annually from
Prop.99. These funds are used to support staffing as well as contracts for
community tobacco education.
Proposition 10
Prop. 1 0 was passed by the voters of California in November 1998. It
added a 50 cents per pack tax on tobacco products. San Mateo County
receives about $1 0 million annually from Prop. IO, however, no Prop. 1 0
funding has been made available to community groups and no specific
commitment to tobacco education has been made. San Mateo County's Smoke
Free Start for Families (SFSF) Program, funded by the Lucile Packard
Family Founda- tion through Nov. 2000, is a pilot perinatal smoking
cessation program that is being used as a standard all over the state of
California. The Tobacco Education Coalition recommends that this program
should receive future funding from Prop. IO.
Proposition 28
Prop. 28 is a ballot measure sponsored by "Cigarettes
Cheaper" that would have wiped out the 50 cent per pack tax (Prop.
IO) passed by the voters November 1998. Prop. 28 would also have
prohibited any future tax on tobacco products in California. On March 711,
2000 California voters soundly defeated Proposition 28. Statewide, Prop.
28 was defeated by a vote of 72% "No" to 28% "Yes". In
San Mateo County, the vote was even more lopsided with a 78%
"No" vote.
Penal Code 308
PC 308 is a law written in the 1890's to limit youth access to tobacco
products. Section (a) of PC 308 prohibits anyone from selling, giving, or
furnishing tobacco products to anyone under 18 years of age. Section (b)
was added in the 1990s to make it illegal for anyone under 18 to purchase,
receive, or be in possession of tobacco products. An ongoing concern to
tobacco education advocates in the lack of enforcement of PC 308a.
Stop Tobacco Access to Kids Enforcement (STAKE) Act of
1994
The STAKE Act provides for the proactive enforcement of PC 308a. The
1-800-5-ASK-4-ID number was created to provide the public with a contact
if they want to report local stores that may be selling tobacco to people
under 18. The STAKE Act also requires stores to prominently post STAKE Act
signs at all points of sale (cash registers), ask for ID, and limits
tobacco vending machines to adults-only locations.
Lawsuit Against the Tobacco Industry
In July 1996, the San Mateo County Board of Supervisors decided to
join San Francisco, San Jose, Los Angeles, and 1 0 other California cities
and counties in the lawsuit against the tobacco industry in order to
recover costs in treating tobacco related illnesses. This was a long
battle which involved many subpoenas and requests for information by the
industry. The TPP staff spent many hours collecting information, gathering
evidence, and providing testimony in this lawsuit. In the end, the tobacco
industry settled the lawsuits, resulting in a multi-billion dollar payment
over 25 years. We can't really say we won because the case was settled,
but our side certainly gained a financial and moral victory.
The following is how the
settlement played out:
Mangini Settlement Funds
Named after Janet Mangini, the San Francisco activist who launched the
lawsuit against the industry on the grounds that they specifically market
their products to children, the Mangini Settlement received $10 million in
a one-time settlement from RJ Reynolds. RJR also agreed to discontinue its
Joe Camel campaign. The settlement funds were stipulated to be spent on
tobacco education, enforcement, and media activities designed to lower
youth tobacco use. San Mateo County was allocated $127,000 from the
Mangini Settlement. Seventy thousand dollars ($70,000) were put in the
Health Education budget for Fiscal Year 1999-2000 with the remaining
amount to be budgeted during the Fiscal Year 2000-01.
Master Settlement Agreement
In Fall 1998, the tobacco industry signed the Master Settlement
Agreement (MSA) with 46 states. The'MSA will bring $206 billion
unrestricted dollars to the states over 25 years. The tobacco industry
also agreed to not use youth-oriented marketing tactics and will fund a
youth-targeted anti- tobacco campaign nationally. San Mateo County is
slated to receive $10-12 million annually from the MSA. For Fiscal Year
1999-2000, $350,000 was allotted for tobacco education. The funds are
being used to provide free tobacco cessation services, a youth theater
program, and a comprehen- sive media campaign. An adult-oriented media
education campaign is scheduled to educate the community about the effects
of secondhand smoke.
Food and Drug Administration (FDA) Regulation of
Tobacco
In March 2000, the Supreme Court, in a 5 to 4 vote, ruled that the FDA
lacks the power to regulate tobacco products. The root of contention is
the 1938 federal Food, Drug and Cosmetic Act, which gave authority to the
FDA to regulate certain consumer products as defined by Congress. Under
this authority, the FDA determined tobacco to be a drug and in 1996 with
support from the Clinton Administration, began to implement regulations
that would reduce youth tobacco use. While the nine Supreme Court Justices
all agreed that tobacco is the greatest single health hazard, they ruled
that Congress did not give the FDA specific authority to regulate tobacco
products.
The specific FDA regulations impacted by the Supreme Court
ruling are: the prohibition of tobacco sales to anyone under 18, the
requirement to check the ID of patrons who look under 27 years of age, and
the limitation of tobacco vending machines to adults-oniy locations. This
ruling is considered to be a huge tobacco industry victory and a major
setback for the Clinton Administration's effort to curb tobacco use by
teens. In order for the FDA to regulate tobacco as a drug, the US Congress
would have to enact legislation that would give the FDA regulatory
authority over tobacco.