International Premium Cigar & Pipe Retailers Association Weekly Legislative Report. May 28, 2018 June 4, 2018

International Premium Cigar & Pipe Retailers Association Weekly Legislative Report May 28, 2018 June 4, 2018 The following legislative activity occurred in the preceding week on key issues impacting our members. Please contact us with any questions or comments you have regarding these activities. ALABAMA ALASKA ARIZONA ARKANSAS CALIFORNIA S.B. 835 - Smoking Bans Sponsor: Senator Steve Glazer (D) Summary: Current version (3/20/2018):This bill would make it an infraction punishable by a fine of up to $25 for a person to smoke, as defined, in a unit of the state park system or to dispose of used cigar or cigarette waste in a unit of the state park system. The bill would establish a statemandated local program by creating a new crime. This bill would require the Department of Parks and Recreation to develop and post signs at entrances or strategic locations, as determined by the Director of Parks and Recreation, of units of the state park system to provide notice of the smoking prohibition. The bill would require the smoking prohibition to be enforced only after signs have been posted. The bill would authorize the Director of Parks and Recreation to designate, by posted order, areas within units of the state park system as exempt from the smoking prohibition, as specified. Current version (3/20/2018): http://leginfo.legislature.ca.gov/faces/billpdf.xhtml?bill_id=201720180sb835&version=20170sb 83597AMD Previous version (3/5/2018): http://leginfo.legislature.ca.gov/faces/billpdf.xhtml?bill_id=201720180sb835&version=20170sb 83598AMD 1 of 53

Introduced version: http://leginfo.legislature.ca.gov/faces/billpdf.xhtml?bill_id=201720180sb835&version=20170sb 83599INT Status: Introduced 1/4/2018. Referred to Senate Natural Resources and Water Committee 1/16/2018. Amended 3/5/2018. Hearing held; passed committee; referred to Senate Appropriations Committee 3/13/2018. Amended 3/20/2018. Hearing held; placed in suspense file 4/16/2018. Hearing held; passed committee 5/25/2018. Passed Senate 5/29/2018. Outlook: this measure passed the Senate by a 26-11 vote. The measure awaits further consideration before the Assembly. At the May 25 suspense file hearing, this measure passed in the Senate Appropriations Committee. This measure was amended. The amendment provides an exemption for those in connection with the good faith practice of a religious belief or ceremony. This measure passed 6-2 in the Senate Natural Resources and Water Committee, chaired by Senator Robert M. Hertzberg (D). Response to the Governor s veto message: SB 835 appears to respond to Governor Brown s veto message in at least two ways. First, this bill includes only state parks so the physical extent of the proposed smoking ban is smaller compared to SB 386 (Glazer, 2017). As noted above, many beaches are state parks so some beaches could still be subject to the prohibitions in this bill. Second, the maximum fine is reduced from $100 to $25 to reduce the total amount assessed to a violator (which ought to be on the order of $200 as described in the comment below). As before, State Parks is provided the discretion to exempt certain locations from enforcement and enforcement in an area does not start until signage is up. Those in support of the measure state that The consequences of smoking are immense. Smoking is the leading contributing factor to lung cancer and heart disease. While the adverse health effects of smoking and healthcare costs to the state are well known, the adverse impact that smoking has on the environment and resulting financial burden to the state is not. Containing more than 150 toxic chemicals, cigarette butts, though small in size, have a huge negative impact on the environment and ecosystem in California. Each year hundreds of acres are burned, people are displaced from their homes, and animals are injured or killed because of cigarette waste. The author notes that cigarette butts have caused many wildfires including the 1999 Oakland Hills fire, which left 10,000 homeless, destroyed almost 4,000 homes, and estimated to have caused around $1.5 billion in damage. Improperly discarded cigarette butts and cigarette-related waste don t just cause fires; they also pollute the environment creating serious health hazards for land and marine animals when ingested. Even when not directly ingested by animals, the chemicals contained within cigarette butts can enter the water supply and be deadly to fish and marine life. Research conducted by the U.S. National Oceanic and Atmospheric Administration estimated that cigarette debris is responsible for killing at least one million sea birds and 100,000 mammals annually. A recent study by Stanford University showed that a non-smoker standing downwind from a smoker outdoors can be exposed to substantial levels of toxic, second-hand cigarette smoke. Banning smoking at state parks is the next step in addressing the public health and safety concerns associated with smoking. Writing in support, the American Academy of Pediatrics notes its formal policy that there is no safe level of tobacco smoke exposure. The developing brains of children and adolescents are 2 of 53

particularly vulnerable to the development of tobacco and nicotine dependence. They continue SB 835 (Glazer) would make sure that children who frequent state parks are not exposed to secondhand smoke or inadvertently encouraged to use tobacco by seeing adults doing the same. A reduction in littered cigarettes would also potentially reduce wildfire in state parks, thus improving air quality and benefiting children who suffer from asthma and other respiratory ailments. Those opposed to the measure, like Californians for Tobacco Harm Reduction writing in opposition state SB 835 overlooks the positive effect of e-cigarettes in reduction tobacco product harm. E-cigarettes have been proved to be 95% less harmful than the average tobacco product, and are conducive to encouraging decreased tobacco use, and can help tobacco users quit. Furthermore, investigations by the California Department of Public Health have shown that second-hand vaping appears to have minimal exposure to toxins or chemicals, and does not appear to show any health risks. SB 835 disregards the distinct difference between traditional tobacco products and electronic cigarettes, and does not take into account electronic cigarette s positive impact on the reduction of tobacco harm and minimal exposure of second-hand toxins, minimizing health risks. These products should not be included in the products banned from state parks under this legislation The Cigar Association of America writing in opposition notes that littering on public property is already against the law, State Parks has authority to and does prohibit smoking in certain situations, and that smoking bans are more appropriately addressed at the local level. This measure was amended. The amendment is technical and adds a co-sponsor. The sponsor is a member of the majority. A similar measure was vetoed by Governor Brown (D) in the 2015, 2016, and 2017, due to fundamental differences. Last years vetoes stated "If people can't smoke even on a deserted beach, where can they? There must be some limit to the coercive power of government." State Outlook: The Democratic Party controls the Assembly, the Senate and the Governor s Office. The Legislature convenes the first Monday of December of any even-numbered year and adjourns sine die November 30 of the following even-numbered year. The Legislature goes into recess at multiple times throughout session and may hold interim studies on certain measures. Bills left pending at the end of a session in an odd-numbered year may be carried over to the following session in subsequent even-numbered years. California will frequently introduce spot bills. These bills act as placeholders and will likely be amended later in session to contain the author s true intent. When a bill is introduced, there is a 30-day cooling period before any action or votes can be taken on the measure. Measures can be referred to a policy committee and a fiscal committee. Measures are sent to a policy committee for a policy change, while measures that could have a fiscal impact are sent to a fiscal committee for review of the bill s fiscal impact. Bills that require an appropriation or take effect immediately generally require 27 votes in the Senate and 54 votes in the Assembly for passage. Other bills generally require 21 votes in the Senate and 41 votes in the Assembly. Pursuant to recently adopted Proposition 54, the final version of bills must be online for 72 hours before a final vote in both chambers. The California budget occurs on an annual basis and contains policy and appropriations. The budget bill moves with other bills necessary to implement the budget, known as budget trailer bills. The Senate Budget and Fiscal Review Committee and the Assembly Budget Committee 3 of 53

divide the budget into separate bills based on subject matter and refer the bills to relevant subcommittees. When the full committee passes the bill, their recommendation is given to the full chamber, which can pass the bill with a simple majority vote. Once both chambers have passed the budget bill, a conference committee is appointed to resolve the differences between the two versions. If the conference committee is unable to reach a final resolution, issues are resolved by the Big Five (the Governor, the Assembly Speaker, the Senate President and the minority leaders of both chambers). S.B. 836 - Smoking Bans Sponsor: Senator Steve Glazer (D) Summary: Current version (5/15/2018): This bill would make it an infraction punishable by a fine of up to $25 for a person to smoke, as defined, on a state coastal beach or to dispose of used cigar or cigarette waste on a state coastal beach. The bill would establish a state-mandated local program by creating a new crime. This bill would require the Department of Parks and Recreation to develop and post signs at entrances or strategic locations, as determined by the Director of Parks and Recreation, of state coastal beaches to provide notice of the smoking prohibition. The bill would require the smoking prohibition to be enforced only after signs have been posted. The bill would authorize the Director of Parks and Recreation to designate, by posted order, areas within state coastal beaches as exempt from the smoking prohibition, as specified. Current version (5/15/2018): http://leginfo.legislature.ca.gov/faces/billpdf.xhtml?bill_id=201720180sb836&version=20170sb 83696AMD Previous version (3/5/2018): http://leginfo.legislature.ca.gov/faces/billpdf.xhtml?bill_id=201720180sb836&version=20170sb 83698AMD Introduced version: http://leginfo.legislature.ca.gov/faces/billpdf.xhtml?bill_id=201720180sb836&version=20170sb 83699INT Status: Introduced 1/4/2018. Referred to Senate Natural Resources and Water Committee 1/16/2018. Amended 3/5/2018. Hearing held; passed committee 3/13/2018. Amended 3/20/2018. Hearing held; placed in suspense file 4/16/2018. Amended 5/15/2018. Hearing held; passed committee 5/25/2018. Passed Senate 5/29/2018. Outlook: This measure passed the Senate by a 27-11 vote. The measure awaits further consideration before the Assembly. At the May 25 suspense file hearing, this measure passed in the Senate Appropriations Committee and awaits further consideration on the Senate floor. This measure was amended. The amendment makes technical changes. 4 of 53

This measure was amended. The amendment provides an exemption for those in connection with the good faith practice of a religious belief or ceremony. This measure passed 6-2 in the Senate Natural Resources and Water Committee, chaired by Senator Robert M. Hertzberg (D). Response to the Governor s veto message: SB 835 appears to respond to Governor Brown s veto message in at least two ways. First, this bill includes only state parks so the physical extent of the proposed smoking ban is smaller compared to SB 386 (Glazer, 2017). As noted above, many beaches are state parks so some beaches could still be subject to the prohibitions in this bill. Second, the maximum fine is reduced from $100 to $25 to reduce the total amount assessed to a violator (which ought to be on the order of $200 as described in the comment below). As before, State Parks is provided the discretion to exempt certain locations from enforcement and enforcement in an area does not start until signage is up. Those in support of the measure state that The consequences of smoking are immense. Smoking is the leading contributing factor to lung cancer and heart disease. While the adverse health effects of smoking and healthcare costs to the state are well known, the adverse impact that smoking has on the environment and resulting financial burden to the state is not. Containing more than 150 toxic chemicals, cigarette butts, though small in size, have a huge negative impact on the environment and ecosystem in California. Each year hundreds of acres are burned, people are displaced from their homes, and animals are injured or killed because of cigarette waste. The author notes that cigarette butts have caused many wildfires including the 1999 Oakland Hills fire, which left 10,000 homeless, destroyed almost 4,000 homes, and estimated to have caused around $1.5 billion in damage. Improperly discarded cigarette butts and cigarette-related waste don t just cause fires; they also pollute the environment creating serious health hazards for land and marine animals when ingested. Even when not directly ingested by animals, the chemicals contained within cigarette butts can enter the water supply and be deadly to fish and marine life. Research conducted by the U.S. National Oceanic and Atmospheric Administration estimated that cigarette debris is responsible for killing at least one million sea birds and 100,000 mammals annually. A recent study by Stanford University showed that a non-smoker standing downwind from a smoker outdoors can be exposed to substantial levels of toxic, second-hand cigarette smoke. Banning smoking at state parks is the next step in addressing the public health and safety concerns associated with smoking. Writing in support, the American Academy of Pediatrics notes its formal policy that there is no safe level of tobacco smoke exposure. The developing brains of children and adolescents are particularly vulnerable to the development of tobacco and nicotine dependence. They continue SB 835 (Glazer) would make sure that children who frequent state parks are not exposed to secondhand smoke or inadvertently encouraged to use tobacco by seeing adults doing the same. A reduction in littered cigarettes would also potentially reduce wildfire in state parks, thus improving air quality and benefiting children who suffer from asthma and other respiratory ailments. Those opposed to the measure, like Californians for Tobacco Harm Reduction writing in opposition state SB 836 overlooks the positive effect of e-cigarettes in reduction tobacco product harm. E-cigarettes have been proved to be 95% less harmful than the average tobacco product, and are conducive to encouraging decreased tobacco use, and can help tobacco users quit. Furthermore, investigations by the California Department of Public Health have shown that second-hand vaping appears to have minimal exposure to toxins or chemicals, and does not appear to show any health risks. SB 835 disregards the distinct difference between traditional tobacco products and electronic cigarettes, and does not take into account electronic cigarette s positive impact on the reduction of tobacco harm and minimal exposure of second-hand toxins, 5 of 53

minimizing health risks. These products should not be included in the products banned from state parks under this legislation The Cigar Association of America writing in opposition notes that littering on public property is already against the law, State Parks has authority to and does prohibit smoking in certain situations, and that smoking bans are more appropriately addressed at the local level. This measure was amended. The amendment is technical and adds a co-sponsor. The sponsor is a member of the majority. A similar measure was vetoed by Governor Brown (D) in the 2015, 2016, and 2017, due to fundamental differences. Last years vetoes stated "If people can't smoke even on a deserted beach, where can they? There must be some limit to the coercive power of government." State Outlook: The Democratic Party controls the Assembly, the Senate and the Governor s Office. The Legislature convenes the first Monday of December of any even-numbered year and adjourns sine die November 30 of the following even-numbered year. The Legislature goes into recess at multiple times throughout session and may hold interim studies on certain measures. Bills left pending at the end of a session in an odd-numbered year may be carried over to the following session in subsequent even-numbered years. California will frequently introduce spot bills. These bills act as placeholders and will likely be amended later in session to contain the author s true intent. When a bill is introduced, there is a 30-day cooling period before any action or votes can be taken on the measure. Measures can be referred to a policy committee and a fiscal committee. Measures are sent to a policy committee for a policy change, while measures that could have a fiscal impact are sent to a fiscal committee for review of the bill s fiscal impact. Bills that require an appropriation or take effect immediately generally require 27 votes in the Senate and 54 votes in the Assembly for passage. Other bills generally require 21 votes in the Senate and 41 votes in the Assembly. Pursuant to recently adopted Proposition 54, the final version of bills must be online for 72 hours before a final vote in both chambers. The California budget occurs on an annual basis and contains policy and appropriations. The budget bill moves with other bills necessary to implement the budget, known as budget trailer bills. The Senate Budget and Fiscal Review Committee and the Assembly Budget Committee divide the budget into separate bills based on subject matter and refer the bills to relevant subcommittees. When the full committee passes the bill, their recommendation is given to the full chamber, which can pass the bill with a simple majority vote. Once both chambers have passed the budget bill, a conference committee is appointed to resolve the differences between the two versions. If the conference committee is unable to reach a final resolution, issues are resolved by the Big Five (the Governor, the Assembly Speaker, the Senate President and the minority leaders of both chambers). COLORADO 6 of 53

CONNECTICUT H.B. 5293 - E-Cigarettes Sponsor: CT Joint Committee on Public Health Summary: Current version (5/2/2018): This measure allows retail establishments to sell e- cigarettes (i.e., electronic delivery systems or vapor products) to consumers only through employee-assisted sales where customers cannot access the e-cigarettes without the employee's assistance. It expressly prohibits these establishments from selling or offering for sale e-cigarettes through self-service displays. The measure exempts from the requirements retail establishments that prohibit minors from entering and post notice of the prohibition clearly at all of the establishment's entrances. Current version (5/2/2018): https://www.cga.ct.gov/2018/amd/h/pdf/2018hb-05293-r00ha- AMD.pdf Introduced version: https://www.cga.ct.gov/2018/tob/h/pdf/2018hb-05293-r00-hb.pdf Status: Introduced; referred to Joint Committee on Public Health 2/28/2018. Hearing held 3/20/2018. Hearing held; passed committee 3/26/2018. Referred to Joint Committee on General Law 4/18/2018. Hearing held; passed committee 4/24/2018. Amended; passed House 5/2/2018. Passed Senate 5/9/2018. Sent to Governor Dan Malloy (D) 5/25/2018. Outlook: This measure has been sent to Governor Dan Malloy (D). Since the Legislature has adjourned sine die, the Governor has 15 days, excluding Sundays, to sign or veto this measure. If the Governor does not sign this measure, this measure will be enacted without a signature. If the Governor vetoes this measure, this measure will likely not receive further consideration. This measure passed the Senate in concurrence by a unanimous vote. This measure was amended and passed the House by a vote of 145-3. The amendment replaces the original bill, which required e-cigarette retailers to sell e-cigarettes in accordance with federal regulations on direct, face-to-face sales of cigarettes and smokeless tobacco products. At the April 24 hearings, this measure was passed by a unanimous vote. At the March 26 hearing, this measure was passed by a 16-10 vote. At the March 20 hearing, no action was taken on this measure. Testimony was presented in support of the measure by the Connecticut Medical Society, the American College of Surgeons - Connecticut Chapter, Connecticut Public Health Association, the Connecticut Coalition of Advanced Practice Nurses, the Connecticut Prevention Network and Southwest Regional Mental Health Board. This measure is a raised bill formally introduced by the Joint Committee on Public Health. State Outlook: 7 of 53

The Democratic Party controls the House of Representatives and the Governor s Office. Control of the Senate is split evenly between the Republican Party and the Democratic Party, with Lieutenant Governor Nancy Wyman (D) holding the deciding vote in the event of a tie. Connecticut operates on a biennium. In even-numbered years, the legislative session lasts three months; in odd-numbered years, the legislative session lasts five months. The legislature is tasked with implementing a budget in odd-numbered years and even-numbered years are used to address any issues with the budget that may arise. There is no carryover between years. Bills in Connecticut may be introduced by an individual legislator or by a specific committee. Bills introduced by legislators enter the process as proposed bills without full statutory language. Connecticut has Joint Committees, where legislators from both the House and Senate serve. The Joint Committee of referral will hold an executive session to decide whether to draft the bill. Once the bill is drafted it will most likely receive a public hearing; however, bills are not required to receive a public hearing in Connecticut. Amendments may be made in Committee and on the House and Senate floors. Although Connecticut has germaneness rules, in actuality there is no requirement for germaneness. The majority party can and will ignore these rules, giving them full control over the final adopted language of a bill. Due to the nature of joint committees, a bill can be reported out of a committee favorably by a single chamber. With the even-split in the Senate, this is a more frequent but is still historically rare and only used on controversial measures. The bill is sent to the chamber that reported the measure favorably, without regard to the chamber of origin. In this event, bills are still required to pass both chambers. After passing the joint committee, a bill is typically heard only once more in its respective chamber before a final vote is taken. A bill may be amended before a final vote is taken. Bills must pass both chambers before being sent to the Governor. In even-numbered years, only committees may introduce bills unrelated to budget matters. If a legislator wishes to have a non-budget bill raised, they must petition the committee to raise the concept as a committee bill. Connecticut s budget is passed in two parts; an Appropriations budget that outlines where money is being spent and a Finance budget that determines how the budget will be funded. The Finance budget often contains legislation and legislators will also use the budget implementer to sneak failed legislation and leadership may add other favors for legislators, otherwise known as rats, in the bill language. Effective Date: October 1, 2018 H.B. 5429 - Tobacco Taxes Sponsor: CT Joint Committee of Finance, Revenue and Bonding Summary: Current version (5/2/2018): This measure implements the Department of Revenue Services' recommendations for increased penalties for certain cigarette and tobacco tax violations. The measure establishes any person who knowingly violates any provision of subdivision subject to the following penalties: (A) If the violation involves one thousand or fewer unstamped cigarettes, such person shall be fined not more than one thousand dollars or imprisoned for not more than one year, or both. (B) If the violation involves more than one thousand but fewer than twenty thousand unstamped 8 of 53

cigarettes, such person shall be fined not more than one dollar per cigarette or imprisoned for not more than one year, or both. (C) If the violation involves twenty thousand or more unstamped cigarettes, such person shall be fined not more than one dollar fifty cents per cigarette or imprisoned for not more than five years, or both. The measure exempts from the tobacco products tax cigars that are (1) exported from Connecticut and (2) owned by a distributor located on the premises of a company performing fulfillment services for the distributor. "Fulfillment services" means services that are performed by a person on the premises of such person on behalf of a distributor and that involve the receipt of orders from such distributor or an agent thereof, which orders are to be filled by the person from an inventory of cigars that are offered for sale by such distributor, and the shipment of such orders to customers of such distributor. House floor amendment (5/2/2018): https://www.cga.ct.gov/2018/amd/h/pdf/2018hb-05429- R00HA-AMD.pdf Previous version (4/23/2018):https://www.cga.ct.gov/2018/TOB/h/pdf/2018HB-05429-R01- HB.pdf Introduced version: https://www.cga.ct.gov/2018/tob/h/pdf/2018hb-05429-r00-hb.pdf Status: Introduced; referred to Joint Committee on Finance, Revenue, and Bonding 3/6/2018. Hearing held 3/16/2018. Hearing held; substituted; passed committee 4/5/2018. Amended; passed House 5/2/2018. Passed Senate 5/8/2018. Signed by Governor Dan Malloy (D) 5/29/2018. State Outlook: The Democratic Party controls the House of Representatives and the Governor s Office. Control of the Senate is split evenly between the Republican Party and the Democratic Party, with Lieutenant Governor Nancy Wyman (D) holding the deciding vote in the event of a tie. Connecticut operates on a biennium. In even-numbered years, the legislative session lasts three months; in odd-numbered years, the legislative session lasts five months. The legislature is tasked with implementing a budget in odd-numbered years and even-numbered years are used to address any issues with the budget that may arise. There is no carryover between years. Bills in Connecticut may be introduced by an individual legislator or by a specific committee. Bills introduced by legislators enter the process as proposed bills without full statutory language. Connecticut has Joint Committees, where legislators from both the House and Senate serve. The Joint Committee of referral will hold an executive session to decide whether to draft the bill. Once the bill is drafted it will most likely receive a public hearing; however, bills are not required to receive a public hearing in Connecticut. Amendments may be made in Committee and on the House and Senate floors. Although Connecticut has germaneness rules, in actuality there is no requirement for germaneness. The majority party can and will ignore these rules, giving them full control over the final adopted language of a bill. Due to the nature of joint committees, a bill can be reported out of a committee favorably by a single chamber. With the even-split in the Senate, this is a more frequent but is still historically rare and only used on controversial measures. 9 of 53

The bill is sent to the chamber that reported the measure favorably, without regard to the chamber of origin. In this event, bills are still required to pass both chambers. After passing the joint committee, a bill is typically heard only once more in its respective chamber before a final vote is taken. A bill may be amended before a final vote is taken. Bills must pass both chambers before being sent to the Governor. In even-numbered years, only committees may introduce bills unrelated to budget matters. If a legislator wishes to have a non-budget bill raised, they must petition the committee to raise the concept as a committee bill. Connecticut s budget is passed in two parts; an Appropriations budget that outlines where money is being spent and a Finance budget that determines how the budget will be funded. The Finance budget often contains legislation and legislators will also use the budget implementer to sneak failed legislation and leadership may add other favors for legislators, otherwise known as rats, in the bill language. DISTRICT OF COLUMBIA DELAWARE FLORIDA GEORGIA HAWAII IDAHO ILLINOIS H.B. 4843 - Exotic Materials Sponsor: Representative Martin Moylan (D) Summary: This measure provides that it shall be unlawful for any person to import, sell, offer for sale, purchase, barter, or possess with intent to sell, any ivory, ivory product, rhinoceros horn, or rhinoceros horn product. These provisions do not apply to specified antique weapons or musical instruments and establishes penalties for violation of the Act. It provides that the Department of Natural Resources may permit, under terms and conditions as the Department may adopt by rule, the import, sale, offer for sale, purchase, barter, or possession with intent to sell, of any ivory, ivory product, rhinoceros horn, or rhinoceros horn product for bona fide 10 of 53

educational or scientific purposes, unless this activity is prohibited by federal law. http://www.ilga.gov/legislation/100/hb/pdf/10000hb4843lv.pdf Status: Introduced 2/14/2018. Referred to House Consumer Protection Committee 3/7/2018. Hearing held; passed committee 4/9/2018. Passed House 4/23/2018. Referred to Senate Environment and Conservation Committee 5/1/2018. Hearing held; passed committee 5/10/2018. Passed Senate 5/24/2018. Outlook: This measure passed the Senate by a unanimous vote. This measure is eligible to be sent to Governor Bruce Rauner (R). Since the Legislature is in session, the Governor has 60 days, excluding Sundays, to sign or veto this measure. If the Governor does not sign this measure, this measure will be enacted without a signature. If the Governor vetoes this measure, this measure will be sent back to its chamber of origin with a message explaining the Governor s objections and recommendations which will remove such objections. The Legislature can overturn the Governor s veto with a 3/5 vote in both legislative chambers. At the May 10 hearing, this measure was passed by a unanimous vote. This measure has been referred to the Senate Environment and Conservation Committee. On April 23, this measure passed the House by a vote of 61-44. State Outlook: The Democratic Party controls the House of Representatives and the Senate, while the Republican Party controls the Governor's Office. The General Assembly has a twoyear session. Each session historically adjourns May 31, but sine die adjournment does not occur until a few days before the beginning of the next session. Bills left pending at the end of a session in an odd-numbered year may be carried over to the following session in the subsequent even-numbered year. At the beginning of session, it is not uncommon for legislators to introduce shell bills. A shell bill is a legislative bill, typically with no substantive provisions, that is introduced for purposes of later being amended to include the actual legislative proposals advanced by the introducer. Upon introduction, bills are referred to a committee. However, committees are not required to hear every bill referred to them. Additionally, Committees often call last-minute hearings without notice. If the measure receives a hearing, members of the public may testify on the bill and legislators may amend the measure. Committees may hold multiple hearings on a measure before reporting the bill out to another committee or to the floor. Bills are often considered in multiple committees before being considered in a chamber. Legislators in Illinois typically file a large number of amendments, either on the floor or in committee. Illinois has very loose germaneness rules. If the bill passes the committee, it is reported to the floor for a second reading, where it can be debated and amended. Bills in Illinois require three readings for final passage in each chamber and may be amended on third reading. If there are differences between the House and Senate versions of the bill, a conference committee is appointed to resolve differences. Members of the conference committees are appointed by the Speaker of the House and Senate President and consist of five representatives and five senators. If the report is passed by the committee, it goes back to the House and Senate for final approval. After the report passes both chambers, the final bill is sent to Governor for action. Additionally, Illinois's budget occurs annually and only contains appropriations. After the Governor submits a budget to the General Assembly, all 11 of 53

Senate and House Appropriations committees review and consider budgetary legislation. Final passage of the budget before May requires a simple majority vote. After May, a three-fifths majority vote is required to pass the measure. After passage, the final budget is sent to the Governor for approval. S.B. 2332 - Tobacco Age Restrictions Sponsor: Senator Julie Morrison (D) Summary: Current version (4/24/2018): This measure amends the Prevention of Tobacco Use by Minors and Sale and Distribution of Tobacco Products Act. It changes the name of the Act to the Prevention of Tobacco Use by Persons under 21 Years of Age and Sale and Distribution of Tobacco Products Act. The measure raises the age for whom tobacco products, electronic cigarettes, and alternative nicotine products may be sold to and possessed by from at least 18 years of age to at least 21 years of age. A person shall not distribute without charge samples of any tobacco product to any other person, regardless of age, except for smokeless tobacco in an adult-only facility. Adopted amendment #2 (4/24/2018): http://www.ilga.gov/legislation/100/sb/pdf/10000sb2332sam002.pdf Adopted amendment #1 (2/13/2018): http://www.ilga.gov/legislation/100/sb/pdf/10000sb2332sam001.pdf Introduced version (1/24/2018): http://www.ilga.gov/legislation/100/sb/pdf/10000sb2332lv.pdf Status: Introduced; referred to Senate Assignments Committee 1/24/2018. Referred to Senate Public Health Committee 1/30/2018. Hearing held; passed committee 2/6/2018. Amendment #1 filed 2/13/2018. Amendment #1 adopted 2/20/2018. Amendment #2 filed; Amendment #3 filed 4/20/2018. Amendment #2 referred to Senate Public Health Committee; Amendment #3 referred to Senate Public Health Committee 4/23/2018. Hearing held; amendment #2 adopted; passed committee 4/24/2018. Amendment #3 tabled; passed Senate 4/25/2018. Referred to House Health and Healthcare Disparities Committee 5/7/2018. Hearing held; passed committee 5/18/2018. Outlook: On May 30, this measure passed the House by a vote of 61-49. This measure is eligible to be sent to Governor Bruce Rauner (R). Since the Legislature is in session, the Governor has 60 days, excluding Sundays, to sign or veto this measure. If the Governor does not sign this measure, this measure will be enacted without a signature. If the Governor vetoes this measure, this measure will be sent back to its chamber of origin with a message explaining the Governor s objections and recommendations which will remove such objections. The Legislature can overturn the Governor s veto with a 3/5 vote in both legislative chambers. At the May 18 hearing, this measure was passed by a 3-1 vote. The Senate tabled amendment #3 and passed this measure by a vote of 35-20. Amendment #3 is unlikely to receive further consideration this legislative session. This measure will now await consideration in the House. 12 of 53

State Outlook: The Democratic Party controls the House of Representatives and the Senate, while the Republican Party controls the Governor's Office. The General Assembly has a twoyear session. Each session historically adjourns May 31, but sine die adjournment does not occur until a few days before the beginning of the next session. Bills left pending at the end of a session in an odd-numbered year may be carried over to the following session in the subsequent even-numbered year. At the beginning of session, it is not uncommon for legislators to introduce shell bills. A shell bill is a legislative bill, typically with no substantive provisions, that is introduced for purposes of later being amended to include the actual legislative proposals advanced by the introducer. Upon introduction, bills are referred to a committee. However, committees are not required to hear every bill referred to them. Additionally, Committees often call last-minute hearings without notice. If the measure receives a hearing, members of the public may testify on the bill and legislators may amend the measure. Committees may hold multiple hearings on a measure before reporting the bill out to another committee or to the floor. Bills are often considered in multiple committees before being considered in a chamber. Legislators in Illinois typically file a large number of amendments, either on the floor or in committee. Illinois has very loose germaneness rules. If the bill passes the committee, it is reported to the floor for a second reading, where it can be debated and amended. Bills in Illinois require three readings for final passage in each chamber and may be amended on third reading. If there are differences between the House and Senate versions of the bill, a conference committee is appointed to resolve differences. Members of the conference committees are appointed by the Speaker of the House and Senate President and consist of five representatives and five senators. If the report is passed by the committee, it goes back to the House and Senate for final approval. After the report passes both chambers, the final bill is sent to Governor for action. Additionally, Illinois's budget occurs annually and only contains appropriations. After the Governor submits a budget to the General Assembly, all Senate and House Appropriations committees review and consider budgetary legislation. Final passage of the budget before May requires a simple majority vote. After May, a three-fifths majority vote is required to pass the measure. After passage, the final budget is sent to the Governor for approval. S.B. 2765 - Retail Licensing Sponsor: Senator Pamela Althoff (R) Summary: Current version (3/29/2018): This measure permits the Department of Human Services to contract with the Food and Drug Administration of the U.S. Department of Health and Human Services to conduct unannounced investigations of Illinois tobacco vendors to determine compliance with federal laws relating to the illegal sale of cigarettes and smokeless tobacco products to persons under the age of 18. It provides that grant funds received from the FDA for conducting unannounced investigations of Illinois tobacco vendors shall be deposited into the Tobacco Settlement Recovery Fund starting July 1, 2018. Current version (3/29/2018): http://www.ilga.gov/legislation/100/sb/pdf/10000sb2765eng.pdf Introduced version (2/13/2018): http://www.ilga.gov/legislation/100/sb/pdf/10000sb2765.pdf Status: Introduced 2/13/2018. Referred to Senate Executive Committee 2/20/2018. Passed 13 of 53

committee 3/1/2018. Amendment #1 filed 3/29/2018. Amendment #1 referred to Senate Human Service 4/4/2018. Amendment adopted 4/11/2018. Passed Senate 4/25/2018. Referred to House Executive Committee 5/7/2018. Hearing held; passed committee 5/17/2018. Passed House 5/24/2018. Outlook: This measure passed the House by a unanimous vote. This measure is eligible to be sent to Governor Bruce Rauner (R). Since the Legislature is in session, the Governor has 60 days, excluding Sundays, to sign or veto this measure. If the Governor does not sign this measure, this measure will be enacted without a signature. If the Governor vetoes this measure, this measure will be sent back to its chamber of origin with a message explaining the Governor s objections and recommendations which will remove such objections. The Legislature can overturn the Governor s veto with a 3/5 vote in both legislative chambers. At the May 17 hearing, this measure was passed by a unanimous vote. The measure awaits further consideration before the House. Testimony was presented in support of the measure by the Illinois Department of Human Services. This measure passed the Senate by a unanimous vote. State Outlook: The Democratic Party controls the House of Representatives and the Senate, while the Republican Party controls the Governor's Office. The General Assembly has a twoyear session. Each session historically adjourns May 31, but sine die adjournment does not occur until a few days before the beginning of the next session. Bills left pending at the end of a session in an odd-numbered year may be carried over to the following session in the subsequent even-numbered year. At the beginning of session, it is not uncommon for legislators to introduce shell bills. A shell bill is a legislative bill, typically with no substantive provisions, that is introduced for purposes of later being amended to include the actual legislative proposals advanced by the introducer. Upon introduction, bills are referred to a committee. However, committees are not required to hear every bill referred to them. Additionally, Committees often call last-minute hearings without notice. If the measure receives a hearing, members of the public may testify on the bill and legislators may amend the measure. Committees may hold multiple hearings on a measure before reporting the bill out to another committee or to the floor. Bills are often considered in multiple committees before being considered in a chamber. Legislators in Illinois typically file a large number of amendments, either on the floor or in committee. Illinois has very loose germaneness rules. If the bill passes the committee, it is reported to the floor for a second reading, where it can be debated and amended. Bills in Illinois require three readings for final passage in each chamber and may be amended on third reading. If there are differences between the House and Senate versions of the bill, a conference committee is appointed to resolve differences. Members of the conference committees are appointed by the Speaker of the House and Senate President and consist of five representatives and five senators. If the report is passed by the committee, it goes back to the House and Senate for final approval. After the report passes both chambers, the final bill is sent to Governor for action. Additionally, Illinois's budget occurs annually and only contains appropriations. After the Governor submits a budget to the General Assembly, all Senate and House Appropriations committees review and consider budgetary legislation. Final passage of the budget before May requires a simple majority vote. After May, a three-fifths majority vote is required to pass the measure. After passage, the final budget is sent to the 14 of 53

Governor for approval. INDIANA IOWA KANSAS KENTUCKY LOUISIANA MAINE MARYLAND MASSACHUSETTS MICHIGAN MINNESOTA H.F. 947 - E-Cigarettes Sponsor: Representative Jenifer Loon (R) Summary: Current version (5/20/2018): This measure has been amended into your scope of interest. This measure amends the definition of tobacco products to include vapor products. It defines vapor product to include electronic cigarettes and other components and accessories sold with a nicotine solution, as well as solutions containing nicotine produced from sources other than tobacco. The bill also amends the definition of wholesale sales price so that it does 15 of 53

not include the cost of electronic cigarettes and other components and accessories sold separately from a nicotine solution. Veto message (5/23/2018: http://mn.gov/govstat/pdf/2018_05_23_letter_veto_chapter_205_hf947_tax_and_education.pdf Conference committee report (5/20/2018): https://www.revisor.mn.gov/bills/text.php?number=hf947&version=e&session=ls9 0&session_year=2017&session_number=0&type=ccr&format=pdf Previous version (5/19/2017): https://www.revisor.mn.gov/bills/text.php?number=hf947&version=1&session=ls9 0&session_year=2017&session_number=0&type=ue&format=pdf Introduced version: http://wdoc.house.leg.state.mn.us/leg/ls90/hf0947.0.pdf Bill page: https://www.revisor.mn.gov/bills/bill.php?b=house&f=hf947&ssn=0&y=2017 Status: Introduced; referred to House Education Finance Committee 2/9/2017. Hearing held; passed committee 2/22/2017. Passed House 5/1/2017. Referred to Senate Rules and Administration Committee 5/4/2017. Substituted; passed Committee 5/8/2017. Amended; passed Senate 5/18/2017. House refuses concurrence; conference committee appointed 5/19/2017. Conference committee reported; passed House; passed Senate 5/20/2018. Sent to Governor 5/21/2018. Vetoed by Governor Mark Dayton (DFL) 5/23/2018. Outlook: This measure has been vetoed by Governor Mark Dayton (DFL). In his veto message, the governor stated, I am vetoing this bill because of its misguided priorities that give tax cuts to corporations and the wealthy over the education of our children." Because the veto occurred after the legislative session adjourned, this measure is unlikely to receive further consideration. At a news conference late Sunday night, April 20, Governor Mark Dayton (DFL) said "the Republican repetition of gross untruths continues." He went on to say Republican actions on many of the bills have been "appalling," "vile" and "disgusting." "I just don't understand how they can keep representing these things that are just so patently untrue," Dayton said of claims by Republicans that his staff had stopped negotiating by midafternoon Sunday. Republican legislative leaders help their own news conference saying Dayton continued to constantly make new demands that made it nearly impossible to pass bills he would sign. "In the end I can't control what the governor's going to do," said Senate Majority Leader Paul Gazelka (R). "I can't control when he moves the goal posts." The final day of the legislative session got off to an early start, as the Senate and House both passed a massive supplemental spending and policy bill after midnight This measure is eligible to be sent to Governor Mark Dayton (DFL). Since the Legislature is in session, the Governor has 14 days, excluding Sundays, to sign or veto this measure. If the Governor does not sign this measure, this measure will be enacted without a signature. If the Governor vetoes this measure, this measure will be sent back to its chamber of origin with a message explaining the Governor s objections and recommendations which will remove such 16 of 53

objections. The Legislature can overturn the Governor s veto with a 2/3 majority vote in both legislative chambers. On May 20, the conference committee reported the measure. The report deleted all original language. The House passed the measure by a vote of 85-42. The Senate passed the measure by a vote of 34-33. The House refused to concur with the Senate amendments May 19. A conference committee has been appointed to consider the measure and reach consensus. This measure was amended on the Senate floor May 18. The amendment does not impact your issue scope. The measure then passed the Senate by a vote of 62-0 and was transmitted to the House for concurrence. This measure was substituted for its companion SF 945 May 8 in the Senate Rules and Administration Committee. This measure passed the House by a vote of 131-0 May 1. The measure was heard during the House Education Finance Committee hearing on February 22 where it was passed by an undisclosed vote. The sponsor is a member of the majority party. This measure has garnered the support of cosponsors. State Outlook: The Republican Party controls both the House of Representatives and the Senate. The Democratic-Farmer-Labor Party (DFL) controls the Governor s Office. The legislative session lasts a maximum of 120 days and may not meet in a regular session after the first Monday following the third Saturday in May of any year. Bills left pending at the end of a session in an odd-numbered year may be carried over to the following session in subsequent even-numbered year. Upon introduction, a bill is referred to a committee. However, committees are not required to hear every bill referred to them. After discussion, the bill may be held over for inclusion in an omnibus bill or referred to another committee for further consideration. In the House, bills are placed on the General Register prior to being added to the calendar for a final vote during the third reading. Bills in the House receive their third reading and may be debated and amended after they have been placed on the calendar. In the Senate, bills on the General Orders may be debated and amended before receiving a final vote. The General Orders in the Senate constitutes a third reading. Toward the end of session, committees release large omnibus measures with provisions from bills that have been laid over from previous hearings. The Minnesota budget process occurs on a biennial basis and contains policy and appropriations. The Governor s proposed budget and the final budget are statutorily required to be balanced. Multiple bills, titled omnibus appropriation bills, are written and introduced in the Legislature throughout the session to account for different portions of the budget. Each chamber s finance committee will create at least one of these bills. Normal committee procedures occur and the bills progress through the legislative process in their respective chambers. Subcommittees may hear and recommend amendments to the full committee during the process. Once the set of bills have passed their chamber of origin, a conference committee 17 of 53