Otp presentation for mpha 2013 02-21

Other Tobacco Products Equalization What is it and why is it important to Maine?

Tina Pettingill, Maine Public Health AssociationBecky Smith, American Heart AssociationMike Freiberg, Tobacco Control Legal Consortium

Webinar Agenda

Background: Maine’s Tobacco Control SuccessBackground: Tobacco use in MaineDefinition of Other Tobacco Products - OTPWhat Are OTP?National trendsWho is Using OTP?How and why OTP are marketed to youth.What is OTP equalization and why/how it would work in ME?

Advocacy Opportunities.

Maine’s Tobacco Control Efforts

In 1997 Maine had the dubious distinction of having the highest high school smoking rate in the nation at 39%. Today it is 15%.

Partnership for a Tobacco Free MaineHealthy Maine PartnershipsSmoke-free workplace lawsPeriodic cigarette tax increases

The Tobacco Industry

Isn’t Going Anywhere

Photo source: http://www.trinketsandtrash.org/

Video… How Much is a Life Worth? The Truth About Tobacco

http://youtu.be/2m7-zIa6-Es

http://youtu.be/2m7-zIa6-Es

Replacement Smokers

99% of tobacco users start before they are 26 years old

9 in 10 current smokers started before the age of 18An estimated 3,800 kids pick up their first cigarette every day

Nearly 1 in 4 high school seniors smoke 2 new smokers under age 25 replace every person who dies from tobacco use

Maine Youth and Smoking

20.3% of Maine high school students report using some form of tobacco product (i.e. cigarettes, smokeless or cigars) at least 1 time in the past month.15.2% of Maine high school students report smoking in the past month.

7.7% of high school students—primarily male—use smokeless tobacco.

2.9 million packs of cigarettes are sold to Maine’s underage youth each year.

Big Tobacco has found an opening

-40%

-30%

-20%

-10%

0%

10%

20%

Changes in High School Tobacco Use Prevalence by Type in Maine, 2001-2011

Smokeless Cigars

Cigarettes

Use of Cigars In-creases 7.5%

Use of Smoke-less Tobacco

increases 21%

Use of Ciga-rettes De-

creases 38.7%

Kids Disproportionately Use OTP

Cigarettes Cigars, Little Cigars, Cigarillos Smokeless0%

5%

10%

15%

20%

25%

23%

4%

3%

15%

13%

8%

Comparison of Tobacco Use Prevalence in Maine by Product, 2011

Adult Youth

Use of lower-price Other Tobacco Products is higher among Maine youth

than adults.

Adult Data: 2011 BRFSS Youth Data: 2011, YRBSS

Options to Regulate Non-Cigarette Tobacco Products

Mike Freiberg, JDTobacco Control Legal Consortium

Other Tobacco Products- OTP

1. Dissolvable Tobacco Products

Health Risks:Addictive

Risk of Tobacco InitiationRisk of Tobacco Continuation (Dual

Use)CarcinogenicRisk of Poisoning

Especially ChildrenResemble Candy

Potentially Less Harmful Than Cigarettes

Other Tobacco Products -OTPs

2. Electronic Cigarettes


Risk of Tobacco InitiationRisk of Tobacco

Continuation (Dual Use)No Manufacturing StandardsPotentially Less Harmful Than

Cigarettes

Other Tobacco Products -OTPs2. Electronic Cigarettes


3. Little Cigars


Risk of Tobacco Initiation

Risk of Tobacco Continuation (Dual Use)

Carcinogenic


4. Snus


Risk of InitiationRisk of Continuation

(Dual Use)Carcinogenic Increased Pre-Term

BirthPotentially Less

Harmful Than Cigarettes


5. Water Pipes


Risk of Tobacco Initiation

Risk of Tobacco Continuation (Dual Use)

CarcinogenicShared Mouthpieces Pose

Risk of Disease Transmission, e.g., Herpes, Hepatitis, Tuberculosis

Tax LawsOLD DEFINITION:

Subd. 19.Tobacco products. "Tobacco products" means cigars; little cigars; cheroots; stogies; periques; granulated, plug cut, crimp cut, ready rubbed, and other smoking tobacco; snuff; snuff flour; cavendish; plug and twist tobacco; fine-cut and other chewing tobacco; shorts; refuse scraps, clippings, cuttings and sweepings of tobacco, and other kinds and forms of tobacco, prepared in such manner as to be suitable for chewing or smoking in a pipe or otherwise, or both for chewing and smoking; but does not include cigarettes as defined in this section.

Minn. Stat. § 297F.01, Subd. 19 (1997)

Tax LawsOLD DEFINITION:

Subd. 19.Tobacco products. "Tobacco products" means cigars; little cigars; cheroots; stogies; periques; granulated, plug cut, crimp cut, ready rubbed, and other smoking tobacco; snuff; snuff flour; cavendish; plug and twist tobacco; fine-cut and other chewing tobacco; shorts; refuse scraps, clippings, cuttings and sweepings of tobacco, and other kinds and forms of tobacco, prepared in such manner as to be suitable for chewing or smoking in a pipe or otherwise, or both for chewing and smoking; but does not include cigarettes as defined in this section.

Minn. Stat. § 297F.01, Subd. 19 (1997)

Other States’ Tax Laws

Other States’ Youth Access Laws

Tax LawsNEW DEFINITION:

Subd. 19.Tobacco products. "Tobacco products" means any products containing, made, or derived from tobacco that is intended for human consumption, whether chewed, smoked, absorbed, dissolved, inhaled, snorted, sniffed, or ingested by any other means, or any component, part, or accessory of a tobacco product, including, but not limited to, cigars; little cigars; cheroots; stogies; periques; granulated, plug cut, crimp cut, ready rubbed, and other smoking tobacco; snuff; snuff flour; cavendish; plug and twist tobacco; fine-cut and other chewing tobacco; shorts; refuse scraps, clippings, cuttings and sweepings of tobacco, and other kinds and forms of tobacco, prepared in such manner as to be suitable for chewing or smoking in a pipe or otherwise, or both for chewing and smoking; but does not include cigarettes as defined in this section. Tobacco products excludes any tobacco product that has been approved by the United States Food and Drug Administration for sale as a tobacco cessation product, as a tobacco dependence product, or for other medical purposes, and is being marketed and sold solely for such an approved purpose.

Minn. Stat. § 297F.01, Subd. 19 (2010)

Tax LawsNEW DEFINITION:

Subd. 19.Tobacco products. "Tobacco products" means any products containing, made, or derived from tobacco that is intended for human consumption, whether chewed, smoked, absorbed, dissolved, inhaled, snorted, sniffed, or ingested by any other means, or any component, part, or accessory of a tobacco product, including, but not limited to, cigars; little cigars; cheroots; stogies; periques; granulated, plug cut, crimp cut, ready rubbed, and other smoking tobacco; snuff; snuff flour; cavendish; plug and twist tobacco; fine-cut and other chewing tobacco; shorts; refuse scraps, clippings, cuttings and sweepings of tobacco, and other kinds and forms of tobacco, prepared in such manner as to be suitable for chewing or smoking in a pipe or otherwise, or both for chewing and smoking; but does not include cigarettes as defined in this section. Tobacco products excludes any tobacco product that has been approved by the United States Food and Drug Administration for sale as a tobacco cessation product, as a tobacco dependence product, or for other medical purposes, and is being marketed and sold solely for such an approved purpose.

Minn. Stat. § 297F.01, Subd. 19 (2010)

Weaknesses in OTP RegulationPrice of OTPs

Tax lawsFree SamplesCoupons, discounts and rebatesMinimum pack size

FlavoringFruit, candy and alcohol flavorsMenthol

Youth AccessUse restrictions

Opportunities for Regulation

Point of Sale Warnings

Marketing restrictions

Category prohibitions

Other Tobacco Products:The Industry and Maine Objectives

Becky Smith, American Heart Association

What is OTP?

OTP = Other Tobacco Products

• Chewing/Spit Tobacco• Snus• Dissolvables• Cigars/Cigarillos• Roll-your-Own

Photo source: http://www.trinketsandtrash.org http://www.winwins.posterous.com

Chewing/Spit Tobacco

Photo source: http://www.flickr.com/photos/clearinghouse

Pipe tobacco

Photos: http://upload.wikimedia.org/wikipedia/commons/f/f4/DunhillEarlyMorningPipeMurrays.jpg

http://farm5.static.flickr.com/4094/4873834291_5d955ef421_z.jpg

Snus


Snus


Little Cigars/Cigarillos

Photo source: http://www.trinketsandtrash.org/Photo source: http://www.flickr.com/photos/clearinghouse

Little Cigar or Cigarette?

cigarette little cigars


Blunt wraps


Dissolvables


http://www.trinketsandtrash.org

What is the Problem?

Appealing PackagingCandy-Flavored

Cheap

Photo source: FACT collection

THE PROBLEM


Photo source: http://goodhealth.freeservers.com/Camel_Orbs_compared_with_Tic_Tacs.jpg

Photo source: Utah Tobacco Prevention & Control Program




Let’s Play a Game….The Price Isn’t Right

Let’s Play a Game…The Price Isn’t Right

$0.89 at Hannaford $1.56 at Hannaford

The Price Isn’t Right

The Price Isn’t Right$1.03 at Hannaford

$0.99 at Hannaford

The OTP Tax Loophole

20% of wholesale

48% of wholesale

92% of wholesale

50% of wholesale

50% of Wholesale

80% of Wholesale

• Other Tobacco Products are taxed differently than a pack of Cigarettes

• OTPs are taxed at a percent of the wholesale price, rather than a per unit amount.

• Maine’s tax on OTP is the lowest in New England.

• One Caveat- Maine already taxes cans of moist snuff at the equivalent of a pack of cigarettes ($2).

The OTP Tax Loophole20 Cigarettes 20 Little Cigars

Cigarette Tax Collected: $2.00

Tobacco Tax Collected: $0.30*

*amount will vary by product

What can be done?

Federal ResponsibilityFDA should assert its authority over ALL tobacco productsManufacturing, marketing, sales, distribution

State and local tobacco control laws should be broad enough to cover emerging tobacco products

Funding at federal, state and local levels for prevention programs, cessation, and research is needed for ALL tobacco products

Remove flavors from ALL productsTax equivalence Tobacco-free venues

State Responsibility

New products, but not new issuesWe want tax equivalence

Higher prices on any tobacco product reduces consumption, especially for youth

Equal to a pack of cigarettes% of price

Capture very low weight productsBroad definitions of tobacco products in tax laws

OTP Resources in Maine

• Fact Sheets

• MPHA Tobacco Policy Committee

• Advocacy Networks and

• Lobbyists & other staff

OTP Resources in Maine

OTP Equalization Efforts in Maine

Representative Megan Rochelo has introduced a bill this session to equalize the tax on OTP

This bill will:

• Generate revenue of between 8-10 million dollars• Reduce youth use rates in Maine• Equalize the tax to cigarettes• Sets aside $140,000 for the Maine Tobacco

Helpline

OTP Advocacy Efforts

Talk to your legislatorsSubmit LTE/Op EdsTalk to your co-workers, friends, neighborsDistribute OTP fact sheetsInclude OTP info in newsletters, on listservs, and on social media

Join our Advocacy Networks- ACS, MPHA, AHA, ALA, etc.

OTP Advocacy Efforts

Backpack Petition

MPHA MEMBER BENEFITS

• MPHA has 3 Policy Committees open to all members:• Tobacco• Obesity• Broad Public Health

• We also convene the Friends of the Fund for a Healthy Maine.

• Together, we achieve more. • Attend Hall of Flags events• Attend Press events• Write/submit Letters to the Editor & Opinion articles• Friend us on FB and share postings• Educate your local legislators

• We need you to become a member of MPHA.www.mainepublichealth.org

Thank You!

• To Our Speakers• To Our Sponsor, UNE• To YOU, our participants

• Questions? Use your ChatBox.

• Tina Pettingill: [email protected]• Mike Freiberg: [email protected] or (651) 290-7517• Becky Smith: [email protected]

Documents

Otp presentation for mpha 2013 02-21