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HomeMy WebLinkAboutResolutions - 2024.06.13 - 41292 AGENDA ITEM: Supporting Protect Michigan Kids Tobacco Legislation DEPARTMENT: Board of Commissioners MEETING: Board of Commissioners DATE: Thursday, June 13, 2024 9:30 AM - Click to View Agenda ITEM SUMMARY SHEET COMMITTEE REPORT TO BOARD Resolution #2024-4060 _ 24-43 Motion to adopt the attached suggested resolution. ITEM CATEGORY SPONSORED BY Resolution Angela Powell, Ajay Raman, Charles Cavell, Penny Luebs, Christine Long, Michael Spisz INTRODUCTION AND BACKGROUND A presentation was provided to the Public Health and Safety Committee on May 14, 2024. POLICY ANALYSIS On May 14, 2024, the Keep MI Kids Tobacco Free Alliance gave an informational presentation to the Public Health and Safety Committee urging support of legislation to Keep MI Kids Tobacco Free. As a result, this bipartisan resolution was introduced at Full Board on May 22, 2024, and sponsored by Commissioners Angela Powell, Ajay Raman, Charlie Cavell, Penny Luebs, Christine Long and Michael Spisz. This request is part of an 8-Bill package that includes the following Senate Bills that were introduced November 9, 2023. Attached is a summary explaining each of the bills (links are provided for each): Senate Bill 647 Senate Bill 648 Senate Bill 649 Senate Bill 650 Senate Bill 651 Senate Bill 652 Senate Bill 653 Senate Bill 654 BUDGET AMENDMENT REQUIRED: No Committee members can contact Michael Andrews, Policy and Fiscal Analysis Supervisor at 248.425.5572 or andrewsmb@oakgov.com or the department contact persons listed for additional information. CONTACT Penny Luebs, Commissioner ITEM REVIEW TRACKING Aaron Snover, Board of Commissioners Created/Initiated - 6/13/2024 David Woodward, Board of Commissioners Approved - 6/13/2024 Lisa Brown, Clerk/Register of Deeds Final Approval - 6/14/2024 AGENDA DEADLINE: 06/13/2024 9:30 AM ATTACHMENTS 1. Alliance Bill Package Summary COMMITTEE TRACKING 2024-05-22 Full Board - Refer to Legislative Affairs & Government Operations Committee 2024-06-04 Legislative Affairs & Government Operations - Recommend to Board 2024-06-13 Full Board - Adopt Motioned by: Commissioner Linnie Taylor Seconded by: Commissioner Philip Weipert Yes: David Woodward, Michael Spisz, Michael Gingell, Penny Luebs, Karen Joliat, Christine Long, Robert Hoffman, Philip Weipert, Gwen Markham, Angela Powell, Marcia Gershenson, William Miller III, Yolanda Smith Charles, Charles Cavell, Brendan Johnson, Ajay Raman, Ann Erickson Gault, Linnie Taylor (18) No: None (0) Abstain: None (0) Absent: Kristen Nelson (1) Passed June 13, 2024 RESOLUTION #2024-4060 _ 24-43 Sponsored By: Angela Powell, Ajay Raman, Charles Cavell, Penny Luebs, Christine Long, Michael Spisz Board of Commissioners - Supporting Protect Michigan Kids Tobacco Legislation Chair and Members of the Board: WHEREAS tobacco use is the leading cause of preventable death and disability in Michigan and contributes greatly to heart disease, cancer, and stroke; and WHEREAS many of the most effective health policies to reduce teen smoking, like the excise tax on cigarettes or bans on flavored cigarettes, have not been expanded to e-cigarettes in Michigan; and WHEREAS the U.S. Surgeon General has called raising prices on cigarettes “one of the most effective tobacco control interventions because increasing the price is proven to reduce smoking, especially among kids; and WHEREAS Michigan currently has no state tax on e-cigarettes or vaping products that contain nicotine and has not increased its tax on cigarettes in nearly 20 years; and WHEREAS Michigan state law prohibits local governments from enacting policies that regulate the sale and licensure of tobacco and nicotine products, keeping local communities from protecting kids’ health; and WHEREAS companies benefit from this lack of regulation, specifically appealing to young people by offering e-cigarettes in candy and fruit flavors with colorful packaging; and WHEREAS tobacco retail licensing is an effective tobacco control measure that requires every store that sells tobacco products to have a license and Michigan is one of only 10 states that does not require retailers to obtain a license to sell tobacco, making effective enforcement almost impossible; and WHEREAS Senate Bills 647-654, introduced on November 9, 2023, which still await hearing in the Senate Regulatory Affairs Committee, aim to further restrict and reduce tobacco use; and WHEREAS the eight Michigan Senate bills in the package include: • Senate Bill 647 would allow local counties and cities to enact tougher restrictions on tobacco sales within their own community. • Senate Bill 648 would tax e-cigarettes and vaping products containing nicotine for the first time and increase tobacco taxes with proceeds used to reduce tobacco use among youth. • Senate Bills 649 and 650 would end the sale of all flavored tobacco products, including flavored e-cigarettes and menthol-flavored cigarettes. • Senate Bills 651 and 652 would require tobacco retailers to be licensed, just like liquor retailers, so the state can enforce laws prohibiting the sale of tobacco to minors. • Senate Bills 653 and 654 would repeal penalties against minors for tobacco purchase, use and possession, which supporters say have been “ineffective.” NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners supports the Protect MI Kids Bill Package and urges the Michigan Legislature to swiftly pass these critical bills to protect the health and well-being of Michigan's children and youth. BE IT FURTHER RESOLVED that the Oakland County Clerk/Register of Deeds is requested to forward copies of the adopted resolution to the Governor of the State of Michigan, the State Senate Majority and Minority leaders, the State House Speaker and Minority Leader, and the members of the Oakland County delegation to the Michigan Legislature and the Board of Commissioner’s legislative lobbyist. Chair, the following Commissioners are sponsoring the foregoing Resolution: Angela Powell, Ajay Raman, Charles Cavell, Penny Luebs, Christine Long, Michael Spisz. Date: June 13, 2024 David Woodward, Commissioner Date: June 14, 2024 Lisa Brown, County Clerk / Register of Deeds COMMITTEE TRACKING 2024-05-22 Full Board - Refer to Legislative Affairs & Government Operations Committee 2024-06-04 Legislative Affairs & Government Operations - Recommend to Board 2024-06-13 Full Board - Adopt Motioned by Commissioner Linnie Taylor seconded by Commissioner Philip Weipert to adopt the attached Resolution: Supporting Protect Michigan Kids Tobacco Legislation. Yes: David Woodward, Michael Spisz, Michael Gingell, Penny Luebs, Karen Joliat, Christine Long, Robert Hoffman, Philip Weipert, Gwen Markham, Angela Powell, Marcia Gershenson, William Miller III, Yolanda Smith Charles, Charles Cavell, Brendan Johnson, Ajay Raman, Ann Erickson Gault, Linnie Taylor (18) No: None (0) Abstain: None (0) Absent: Kristen Nelson (1) Passed ATTACHMENTS 1. Alliance Bill Package Summary STATE OF MICHIGAN) COUNTY OF OAKLAND) I, Lisa Brown, Clerk of the County of Oakland, do hereby certify that the foregoing resolution is a true and accurate copy of a resolution adopted by the Oakland County Board of Commissioners on June 13, 2024, with the original record thereof now remaining in my office. In Testimony Whereof, I have hereunto set my hand and affixed the seal of the Circuit Court at Pontiac, Michigan on Thursday, June 13, 2024. Lisa Brown, Oakland County Clerk / Register of Deeds How We Match Up: Michigan is one of only 10 states without TRL in place Proposed Policy Change (Senate Bills 651 and 652): Establishes a statewide Tobacco Retail Licensing (TRL) program housed within a designated state agency. Requires every establishment in Michigan that sells nicotine or tobacco products, including vaping products and component parts, to hold a license. Remote or mobile establishments are not eligible for licensure. Exempts products considered to be a cessation device by the U.S. Food and Drug Administration. Stipulates violations of the Act, which include civil fines starting at $1,500 and not exceeding $3,000 for subsequent violations, as well as license suspension or revocation. The agency overseeing the program will set the license fee. License fees will be deposited into the newly-created nicotine and tobacco regulation fund. The agency overseeing the program shall expend money only for the administration and enforcement of the program. Acceptable use of the fees includes covering the cost of compliance checks, which give officials the needed resources to reduce illegal sales to youth. The agency overseeing the program is required to conduct no less than two unannounced compliance checks per year at each establishment, including visual inspections and decoy checks. Establishments that fail the compliance check will be subject to one unannounced, follow-up compliance check. Tobacco Retail Licensure: A Proven Tool To Reduce Youth Tobacco Use Learn more at KeepMIKidsTobaccoFree.com The Facts: 3 out of 4 kids are sold tobacco products despite being underage, according to the American Heart Association. The FDA has issued more "no tobacco sales orders" to Michigan retailers for violating laws prohibiting the sale of tobacco to kids than any other state in the country. The Problem: Tobacco Retail Licensing (TRL) is an effective tobacco control measure that requires every store that sells tobacco products to have a license. Michigan is one of only 10 states that does not require retailers to obtain a license to sell tobacco, making effective enforcement almost impossible. TRL reduces youth initiation to nicotine and tobacco through improved compliance with the state’s Tobacco 21 law and other important tobacco sales regulations. Repeal PUP Penalties Repeal Preemption Tax All Tobacco Products & Raise Prices on Cigarettes End Flavored Tobacco Sales THE BILLS Establish Tobacco Retail Licensing The Facts: How We Match Up: Michigan is 1 of 5 states with preemption in place on 3 policies The Problem: Proposed Policy Change (Senate Bill 647) Repeals a provision in the Tobacco Products Tax Act that preempts a local unit of government from adopting ordinances and regulations pertaining to the sale or licensure of tobacco products. Repeal PUP Penalties Preemption: Standing in the Way of Local Tobacco Control Repeal Preemption Tax All Tobacco Products & Raise Prices on Cigarettes End Flavored Tobacco Sales THE BILLS Learn more at KeepMIKidsTobaccoFree.com Big Tobacco has used preemption to keep local communities from protecting kids’ health. Removing preemption helps communities close the health equity gap, as Black smokers are more likely to die from tobacco-related diseases. Local action can demonstrate the need and effectiveness for future statewide legislation. Establish Tobacco Retail Licensing Michigan state law prohibits local governments from enacting policies that regulate the sale and licensure of tobacco and nicotine products. Local governments want to adopt tobacco control policies specific to the needs of their communities, including to protect youth. Several local governments across the state have passed resolutions calling for preemption to be repealed so they can strengthen rules in their communities to protect residents. The Facts: How We Match Up: Michigan spends less than 10% of the CDC’s recommendation The Problem: Proposed Policy Change (Senate Bill 648): Establishes a new tax on e-cigarettes, including component parts or accessories sold as a single unit, at 57 percent of the wholesale price. Exempts drugs, devices or products that are authorized for sale and that have been deemed a tobacco cessation product by the FDA. Increases the tax on cigarettes by $1.50 (the current tax is $2.00 per pack). Increases the tax on other tobacco products (OTP) to 57 percent of the wholesale price to ensure parity with cigarette tax (currently, OTP is taxed at 32 percent). Revenue generated from the new e-cigarette tax will be dedicated to tobacco prevention and cessation programs (59 percent), tax enforcement (1 percent), and enforcement of the smoke-free air law (40 percent). New revenue from the increased tax on cigarettes must be dedicated to tobacco prevention and cessation efforts. Repeal PUP Penalties Properly Tax All Tobacco Products and Dedicate Funds to Tobacco Prevention Repeal Preemption Tax All Tobacco Products & Raise Prices on Cigarettes End Flavored Tobacco Sales THE BILLS Projected Benefits from a Cigarette Tax Increase in Michigan: 49,400 adults smokers would quit 14,600 youth would never start smoking 16,500 premature smoking deaths would be prevented Establish Tobacco Retail Licensing Unlike cigarettes and other tobacco products, Michigan currently has no state tax on e-cigarettes or vaping products that contain nicotine and ranks 49th in state spending on tobacco prevention. Also, Michigan has not increased its tax on cigarettes in nearly 20 years. The U.S. Surgeon General has called raising prices on cigarettes “one of the most effective tobacco control interventions” because increasing the price is proven to reduce smoking, especially among kids. Learn more at KeepMIKidsTobaccoFree.com Prohibits the sale of a nicotine or tobacco product with a “characterizing flavor,” which includes flavored e-cigarettes and menthol-flavored cigarettes. “Characterizing flavor” is defined in the bill to mean either of the following: A distinguishable taste or aroma, or both, other than the taste or aroma of tobacco, that is imparted by a nicotine or tobacco product or a byproduct produced by a nicotine or tobacco product. A cooling or numbing sensation that is imparted by a nicotine or tobacco product or a byproduct that is produced by a nicotine or tobacco product. Stipulates violations of the Act, which include civil fines starting at $1,500 and not exceeding $3,000 for subsequent violations, as well as license suspension or revocation. The Facts: The Problem: Proposed Policy Change (Senate Bills 649 and 650): Repeal PUP Penalties Flavors Hook Kids: End the Sale of Flavored Tobacco Products Repeal Preemption Tax All Tobacco Products & Raise Prices on Cigarettes End Flavored Tobacco Sales THE BILLS Learn more at KeepMIKidsTobaccoFree.com Establish Tobacco Retail Licensing Flavored tobacco targets teens with fruit and dessert flavors and is a huge driver of teen use of tobacco and nicotine products. In 2019, Michigan was one of eight states that issued emergency rules to temporarily end the sale of flavored e-cigarettes. Unfortunately, as a result of legal challenges, the order was blocked in Michigan and three other states. Other states have gone on to legislatively end the sale of flavored tobacco products and several hundred local government units have passed restrictions around the sale as well. Legislation is needed now in Michigan to remove flavored tobacco products from the marketplace. Ending the sale of flavors will prevent addiction and improve the health of communities targeted by the tobacco industry – including youth, LGBTQ+ people, American Indians and Black Americans. 85% of youth e-cigarette users use flavored products. 14% of Michigan high school students use e-cigarettes 15,700 youth try cigarettes for the first time each year. Two-thirds of youth reported using these products because “they come in flavors they like.” Studies estimate banning menthol in the U.S. would lead 923,000 smokers to quit. The Facts: The Problem: Proposed Policy Change (Senate Bills 653 and 654): Repeals provisions in the Youth Tobacco Act that imposes civil and criminal penalties on minors for purchasing, using or possessing tobacco products. Complements the proposed tobacco retail licensure program, which places responsibility and accountability on the adult sellers of tobacco products. Repeal PUP Penalties Repeal Ineffective Purchase, Use, Possession Penalties Punishing our Youth Repeal Preemption Tax All Tobacco Products & Raise Prices on Cigarettes End Flavored Tobacco Sales THE BILLS Learn more at KeepMIKidsTobaccoFree.com PUP Penalties: Unfairly penalize and stigmatize children. Shift blame from Big Tobacco to kids. Shift resources from holding retailers accountable to laws that penalize kids. Establish Tobacco Retail Licensing Michigan laws prohibiting and penalizing the possession, use, and purchase of tobacco products by minors — also known as PUP laws — are ineffective as deterrents to youth smoking and are often enforced inequitably. Currently, retailers are not held accountable for selling to minors. Instead under Michigan law, minors could be criminally charged for attempting to purchase, use, or possess tobacco products. Penalizing children is not an effective strategy for reducing youth smoking.