California Senate Bill SB395

California 2021-2022 Regular Session

• Introduced: 2/11/21
• Refer: 3/18/21
• Refer: 3/25/21
• Report Pass: 4/8/21
• Refer: 4/12/21
• Report Pass: 4/29/21
• Refer: 5/3/21
• Report Pass: 5/20/21
• Engrossed: 6/1/21
• Refer: 6/10/21
• Report Pass: 6/22/21
• Refer: 6/22/21
• Report Pass: 7/14/21
• Refer: 7/15/21
• Report Pass: 8/26/21
• Enrolled: 9/2/21
• Chaptered: 10/4/21
• Passed: 10/4/21

Caption

Excise tax: electronic cigarettes: Health Careers Opportunity Grant Program: Small and Rural Hospital Relief Program.

Impact

The establishment of the Small and Rural Hospital Relief Program is particularly significant as it addresses the financial burdens small and rural hospitals face in complying with seismic safety regulations. The bill allows these hospitals to apply for grants if they demonstrate that seismic safety compliance imposes a financial strain that may lead to closure. This response mechanism is crucial, especially in areas where hospital access is limited, and closures could detrimentally impact the healthcare landscape.

Summary

Senate Bill 395, introduced by Caballero, establishes several measures related to healthcare funding, specifically targeting electronic cigarettes and small rural hospitals. The bill introduces a new excise tax on electronic cigarette purchases, set at a rate of 12.5% of the sales price, which is to be collected at the point of sale by retailers. Revenue generated from this excise tax will be allocated to various healthcare programs, including a Health Professions Career Opportunity Grant Program and a Small and Rural Hospital Relief Program.

Sentiment

The sentiment surrounding SB 395 is largely supportive among healthcare advocates who recognize the need for enhanced healthcare funding, particularly in underrepresented regions. The excise tax on electronic cigarettes is also seen as a reasonable measure to generate funds for important public health initiatives. Nevertheless, there exists a counter sentiment among some retailers who may be concerned about the financial implications of the tax on consumer purchasing behavior and their sales.

Contention

Notably, the bill raises some contentious points, especially regarding the taxation on electronic cigarettes. Critics may argue that this could discourage the use of these products, which some perceive as safer alternatives to traditional smoking. Additionally, concerns about whether the excise tax will effectively generate the expected revenue and its impact on retail markets have been highlighted during discussions surrounding the bill. Overall, while it aims to tackle pressing issues in healthcare funding, SB 395 faces potential challenges in its implementation and public reception.