Public Hearing - May 12, 2014

    


       1      BEFORE THE NEW YORK STATE SENATE
              STANDING COMMITTEE ON HEALTH
       2      ------------------------------------------------------

       3                         PUBLIC HEARING:

       4                     TO CONSIDER INCLUDING
                     ELECTRONIC CIGARETTES IN THE EXISTING
       5       CLEAN INDOOR AIR ACT AND REGULATING LIQUID NICOTINE

       6      ------------------------------------------------------

       7                       Legislative Office Building
                               Van Buren Hearing Room A - 2nd Floor
       8                       172 State Street
                               Albany, New York 12247
       9
                               May 12, 2014
      10                       11:00 a.m. to 1:00 p.m.

      11
              PRESIDING:
      12
                 Senator Kemp Hannon
      13         Chairman

      14

      15      PRESENT:

      16         Senator Martin Golden

      17         Senator Ruth Hassell-Thompson

      18         Senator Brad Hoylman

      19         Senator Gustavo Rivera (RM)

      20         Senator Diane J. Savino

      21

      22

      23

      24

      25







                                                                   2
       1
              SPEAKERS:                               PAGE  QUESTIONS
       2
              Harlan Juster, Ph.D.                       3      16
       3      Director, Bureau of Tobacco Control
              New York State Department of Health
       4
              Lawrence Eisenstein, M.D., FACP           27      35
       5      President, NYS Association of
                   County Health Officials
       6      Commissioner of Health, Nassau County

       7      Michael Burgess                           39
              Director, NY Government Relations
       8      American Cancer Society
                   Cancer Action Network, Inc.
       9
              Julianne Hart                             39
      10      Director, NYS Government Relations
              American Heart Assoc./American Stroke
      11
              Andrew Hyland, Ph.D.                      53      70
      12      Chair, Department of Health Behavior,
                   Division of Cancer Prevention &
      13           Population Sciences
              Roswell Park Cancer Institute
      14
              Michael G. Holland, M.D.                  53      70
      15      Medical Toxicologist
              Upstate New York Poison Control
      16
              Scott Wexler                              73      78
      17      Executive Director                                88
              Empire State Restaurant and
      18           Tavern Association

      19      James Calvin                              83      88
              President
      20      New York Association of Convenience Stores

      21                            ---oOo---

      22

      23

      24

      25







                                                                   3
       1             SENATOR HANNON:  Good morning.

       2             This is a hearing of the Senate Health

       3      Committee on e-cigarettes and e-liquids.

       4             I'm joined with Gustavo Rivera, the ranking

       5      Democrat on the Committee, and by Diane Savino, a

       6      member of the Committee.

       7             We will have testimony by several people, and

       8      we've also received a large number of comments and

       9      written statements, especially from people who sell

      10      the vapor cigarettes.

      11             All of those will be made part of the record,

      12      and that will be held open, because we need to

      13      consider all aspects of this legislation.

      14             We actually reported, one of the bills about

      15      the Clean Indoor Act last week from

      16      Health Committee, but as Senator Rivera pointed out,

      17      a technical problem with it, so that will be being

      18      amended and we'll move forward.

      19             Our first person to testify is

      20      Dr. Harlan Juster, who's director of the Bureau of

      21      Tobacco Control from the Department of Health in the

      22      state, and he's here to give us a general overview

      23      of cigarettes and other things.

      24             He's not here, because that's not part of the

      25      way this Administration works, to testify on







                                                                   4
       1      specific bills, so, I just have to caution my fellow

       2      Senators that you just can't do it.

       3             But, he brings tremendous background and

       4      expertise to this area.  It's obviously a very

       5      extensive area for the state.

       6             And, Dr. Juster, we'll let you start.

       7             HARLAN JUSTER, Ph.D.:  Okay, thank you very

       8      much.

       9             Good morning, Chairman Hannon and members of

      10      the Committee.

      11             My bureau administers the statewide

      12      tobacco-control program as part of the

      13      New York State Department of Health.

      14             And thank you for this opportunity to present

      15      today regarding the possible inclusion of

      16      electric cigarettes in the existing Clean Indoor Air

      17      Act and regulation of liquid nicotine.

      18             The New York State Department of Health's

      19      tobacco-control program has been a national leader

      20      in promoting tobacco-control policy, health-systems

      21      change, and developing innovative approaches to

      22      address the negative consequences of tobacco use.

      23             The program is evidence-based.  It follows

      24      guidance on best practices from federal Centers for

      25      Disease Control, and relies on reports from the







                                                                   5
       1      U.S. Surgeon General, the Institute of Medicine, the

       2      National Cancer Institute, and the peer-reviewed

       3      scientific literature.

       4             SENATOR HANNON:  Could you pull your mics

       5      forward to you?

       6             HARLAN JUSTER, Ph.D.:  Closer?

       7             SENATOR HANNON:  Maybe the audience can --

       8      this -- under the new reconstructed hearing rooms,

       9      we have difficulty hearing up here because the

      10      speakers are in there.

      11             HARLAN JUSTER, Ph.D.:  I can't hear you very

      12      well, either; so, we're even.

      13             How's this?

      14             SENATOR HANNON:  Great.

      15             HARLAN JUSTER, Ph.D.:  The three pillars of

      16      tobacco control are the high cost of tobacco,

      17      comprehensive clean indoor air laws that are

      18      strongly enforced, and an evidence-based,

      19      population-oriented tobacco-control program.

      20             This approach is working in New York.

      21             From 2001 to 2012, the adult smoking rate in

      22      New York declined by almost one-third, from a

      23      prevalence of 23 percent, to just 16 percent.

      24             Prevention activities have produced even more

      25      impressive results among youth.







                                                                   6
       1             In 2000, 27 percent of high school-age youth

       2      reported smoking in the last 30 days.

       3             In 2012, just 12 percent of high school-age

       4      youth smoked a cigarette.

       5             That's a 56 percent decline.

       6             Among middle-school ages, the decline was

       7      70 percent.

       8             Our surveillance data indicates that the

       9      declines in New York are occurring at a rate that is

      10      faster than in the rest of the nation.

      11             The declines in youth initiation of cigarette

      12      use have had a positive impact on the trajectory of

      13      adult smoking; that is, youth who did not initiate

      14      smoking in the first decade of this century are now

      15      non-smoking young adults.

      16             And in 2010, for the first time since we've

      17      been monitoring these data, the 18-to-24-year-old

      18      young-adult age group is no longer the age group

      19      with the highest smoking rate.

      20             This positive trend, attributed to nonsmokers

      21      as they age, will continue as long as the tobacco

      22      initiation rate among youth continues to decline.

      23             There is great concern in the

      24      tobacco-controlled community that new products, like

      25      those being discussed today, could undermine and







                                                                   7
       1      potentially reverse the substantial gains that have

       2      been made in New York in reducing tobacco use.

       3             In order to effectively evaluate or regulate

       4      electronic nicotine-delivery systems, which is how

       5      we refer to them, or, "ENDS," E-N-D-S, it is

       6      important to use a comprehensive definition that

       7      covers all products.

       8             Electric cigarettes, or e-cigarettes, are

       9      just one of a number of similar personal-use

      10      devices.

      11             And you can see them up on the slides that

      12      I have in front of you.

      13             There's also e-hookah, vaping pens,

      14      e-cigars, hookah pens, and this list will

      15      undoubtedly grow.

      16             And here's a few pictures of some of the

      17      items.

      18                  (Slide show involved.)

      19             HARLAN JUSTER, Ph.D.:  That's a vaping pen.

      20             That's a rechargeable device.  That looks a

      21      mini mag flashlight to me, but it's one of these

      22      units that's a personal vaporizer.

      23             They come in many forms, and to be sure,

      24      surely more to come.

      25             That's an electronic hookah.







                                                                   8
       1             They all do the same thing.

       2             All of these devices are designed to heat a

       3      liquid containing nicotine so it is hot enough to

       4      create an emission, or vapor, which is then inhaled

       5      by the user.

       6             This inhaled emission is absorbed through the

       7      lungs and other internal surfaces into the

       8      bloodstream where nicotine travels to the brain and

       9      binds with specific neurotransmitter sites.

      10             No matter what we call them, all of these

      11      devices are designed for and capable of delivering

      12      nicotine which is a highly addictive component in

      13      all tobacco products.

      14             Many of the liquids used in these devices

      15      contain flavorings designed to appeal to youth and

      16      young adults.

      17             There are flavors called "French vanilla,"

      18      "cherry crush," "watermelon splash," "bubble gum,"

      19      "gummy bear," "cola," "strawberry," "cherry," and

      20      "cookies-and-cream milkshake."

      21             Clearly, these flavors are meant to appeal to

      22      a younger population.

      23             And it is important to note that flavors like

      24      these are prohibited by federal law from being used

      25      in traditional cigarettes, because federal law







                                                                   9
       1      recognizes that the purpose of these flavorings is

       2      to addict children to nicotine and create new

       3      generations of tobacco users.

       4             And here's some of what the containers look

       5      like.

       6             And there's "Rainbow Sherbet."

       7             Now, these devices are different from

       8      combusted or burned tobacco cigarettes.

       9             There is generally no burning, no tobacco

      10      leaf, and they may have fewer or different toxins

      11      compared with tobacco cigarettes.

      12             However, recent reports from the Food and

      13      Drug Administration, and elsewhere, have found

      14      contaminants and tobacco-specific compounds believed

      15      to be among the more carcinogenic components of

      16      tobacco smoke.

      17             And another recent study showed that when

      18      used in a particular way, levels of formaldehyde in

      19      the emissions can reach levels equal to that of

      20      combusted or burned cigarettes.

      21             So even if there are fewer toxins than

      22      cigarettes, that does not mean these are safer for

      23      the individual or for the population as a whole.

      24             Much of the analysis depends on how the

      25      products are used by the public, and researchers and







                                                                   10
       1      public-health officials are really just beginning to

       2      learn about attributes of products, consumer

       3      behavior, patterns and methods of use, intended and

       4      unintended consequences.

       5             Today, the safety of these products is

       6      unknown and their value as a cessation tool is

       7      entirely unproven.

       8             Research is scant, but what little has been

       9      conducted is concerning.

      10             We know that a great deal of marketing of

      11      these products appeals to youth, and that youth are

      12      responding to these marketing techniques.

      13             The vast majority of teens and young adults

      14      are aware of these products and are exposed to the

      15      advertising.

      16             As a result, youth use of these products has

      17      dramatically increased, and we know that most youth

      18      who use these products are also smoking cigarettes,

      19      a combination that can lead to long-term nicotine

      20      addiction and cigarette use.

      21             For adults, we know that there have been no

      22      spikes in cessation attempts, quitting attempts,

      23      among adult cigarette smokers concomitant with the

      24      spike in ENDS use.

      25             We are certain that more research is needed,







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       1      but, to date, no study has shown that quitting is

       2      enhanced by ENDS use -- ENDS use of these products,

       3      and their use may make it even harder to quit

       4      cigarette use.

       5             Determining safety and assessing health

       6      impacts requires much more research than currently

       7      exists, and multiple issues must be considered.

       8             The scientific community is only at the

       9      beginning stages of determining the safety and

      10      health impacts of these products.

      11             As a public-health professional, I'm

      12      concerned that nicotine-delivery devices will result

      13      in one or more of the following negative health

      14      outcomes:

      15             Youth using ENDS, these nicotine-delivery

      16      devices, will become addicted to nicotine, and many

      17      will transition to the use of tobacco cigarettes.

      18             Tobacco cigarettes deliver nicotine more

      19      efficiently than nicotine-delivery devices, and the

      20      transition seems to be a logical extension of ENDS

      21      use.

      22             Two, nicotine devices will re-glamorize the

      23      active smoking.  This is a battle fought by public

      24      health for a long time, and continues to be a key

      25      strategy to reducing initiating youth initiation.







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       1             Three, nicotine devices will be used to

       2      maintain and strengthen nicotine addiction in

       3      cigarette smokers, who then continue to also smoke

       4      tobacco cigarettes, known as "dual use."

       5             And, four, former smokers will return to

       6      nicotine use and addiction through the use of these

       7      devices, and then relapse to tobacco use.

       8             Now, advocates for the use of these products

       9      as cessation devices argue that because there are

      10      likely fewer toxins in the emissions compared with

      11      combusted cigarettes, or burned cigarettes, that

      12      these products must be safe to use.

      13             They're making a harm-reduction argument, but

      14      that argument is incomplete and flawed.

      15             Harm reduction works when there is a clear

      16      benefit to the user that outweighs the costs to the

      17      rest of society.

      18             We already have harm-reduction products in

      19      tobacco control.

      20             The FDA has approved five nicotine-delivery

      21      devices that have been shown in extensive research

      22      to be safe and effective.

      23             These are the nicotine-replacement therapies,

      24      and include the patch, gum, lozenge, inhaler, and

      25      nasal spray.







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       1             There are also two non-nicotine --

       2      non-nicotine prescription medications, bupropion,

       3      and varenicline, also shown to be safe and effective

       4      at increasing smoking-cessation rates.  They reduce

       5      the harm of nicotine addiction by helping users of

       6      combusted cigarettes to quit, but they do not

       7      attract the new users who find these products

       8      appealing.  This is successful harm reduction.

       9             While we await the availability of the

      10      results of additional research, the department will

      11      consider a variety of policy solutions, but recent

      12      events in which reports to poison control centers

      13      that young children have gained access to and drank

      14      the liquid nicotine solutions indicate that

      15      child-proof packaging must be one consideration.

      16             On April 25th of this year, the FDA proposed

      17      a new rule, known as the "deeming rule," to extend

      18      its authority to include electronic

      19      nicotine-delivery devices.

      20             Proposed regulations include prohibiting the

      21      sale and distribution of free samples to minors and

      22      requiring the disclosure of ingredients.

      23             However, the proposed regulations do not

      24      address many issues of concern to the

      25      tobacco-control community, including providing a







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       1      legal definition for e-cigarettes, prohibiting

       2      characterizing flavors, prohibiting Internet sales,

       3      prohibiting brand-name sponsorship, or marketing and

       4      advertising restrictions.

       5             The FDA's proposed timeline is already

       6      lengthy.  And just last week, the tobacco industry

       7      requested that the formal comment period be doubled,

       8      from 75 days, to 150 days.

       9             This process could take years.

      10             In the interim, these products are being sold

      11      widely in shopping malls, in stores that are

      12      otherwise unlicensed to sell tobacco products, and

      13      on the Internet.  Quality control is highly

      14      variable, and the devices are being used by our

      15      youth in creative but dangerous ways.

      16             The companies are using all the old-time

      17      marketing methods to sell these products to youth.

      18             Dr. Thomas Frieden, director of the CDC,

      19      recently said that, quote, Tobacco is really the

      20      number one enemy of health in this country and

      21      around the world, unquote.

      22             Tobacco use causes 30 percent of all cancers,

      23      including 85 percent of lung cancers.

      24             Cigarette smokers are two to four times more

      25      likely to develop coronary heart disease than







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       1      nonsmokers, and the U.S. Surgeon General has

       2      concluded that tobacco use negatively affects every

       3      organ system in the human body.

       4             The single most effective intervention that

       5      can improve the health of more people in New York

       6      and around the world would be to reduce or eliminate

       7      tobacco use.

       8             In spite of the progress we've made,

       9      24,000 New Yorkers still die each year from tobacco

      10      use, and hundreds of thousands suffer from serious

      11      illness.

      12             The financial cost to the State is enormous.

      13             We have the tools to end the tobacco problem

      14      in New York State for the next generation, but the

      15      unregulated market that is electronic

      16      nicotine-delivery systems threatens the gains that

      17      have been made in New York, and must not be allowed

      18      to undermine the important progress made in

      19      denormalizing tobacco use, especially among youth

      20      and young adults.

      21             We must continue to conduct well-designed

      22      studies to better understand the impact of these

      23      products on public health, but, the paucity of

      24      research cannot be used as an excuse to refrain from

      25      action.







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       1             Thank you for inviting me to speak with you

       2      today, and I'd be happy to respond to any questions

       3      you may have.

       4             SENATOR HANNON:  A very powerful set of

       5      conclusions, and any number of different aspects of

       6      this.

       7             I was intrigued.

       8             Senator Savino had to go do an interview, and

       9      will be back.  A media interview.

      10             But I was intrigued by even when smoking

      11      starts in the cohort of the population, because she

      12      has a bill that would raise the age for everybody to

      13      21.

      14             And I hadn't ever focused on that aspect

      15      before.  And I see -- and you cited it, and it's

      16      supported by federal --

      17             HARLAN JUSTER, Ph.D.:  It's a little hard for

      18      me to hear you, but --

      19             SENATOR HANNON:  It's supported by a federal

      20      study.

      21             HARLAN JUSTER, Ph.D.:  Yeah, 80 percent of

      22      adult smokers start before the age of 18.

      23             That's a key demographic for the tobacco

      24      industry to target, because they are the future

      25      smokers that are going to replace those who quit and







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       1      those who die.

       2             SENATOR HANNON:  How -- one of the things you

       3      said during your testimony was the -- watching the

       4      cessation rates.

       5             How was that measured?

       6             HARLAN JUSTER, Ph.D.:  We conduct

       7      surveillance of a whole host of indicators related

       8      to tobacco use, and one of them is -- are the

       9      cessation rates across the state.

      10             We have surveys that we do by telephone, we

      11      do them by mail, we do -- we use cell phones now to

      12      get to the demographics that are hard to reach.  And

      13      we've been doing this since 2003.

      14             We actually have data on a similar survey

      15      back to 1985.

      16             So we've been watching the cessation rates

      17      for a long time.

      18             Through the '80s, there was a significant

      19      drop.

      20             Through the '90s, things seemed to level off.

      21             And through the 2000s, again, a big drop in

      22      prevalence of smoking and increase in cessation

      23      rates.

      24             So we asked people, if they're smokers, have

      25      they tried to quit in the past 12 months?  Do they







                                                                   18
       1      intend to try and quit in the next 3 months?

       2             We ask all these questions.

       3             So for the last three or four years, those

       4      numbers have been, essentially, flat.

       5             In 2009, I believe 62 percent of smokers --

       6      adult smokers said they tried to quit for at least

       7      one day or more in the past year.

       8             In 2012, it was 64 percent.

       9             Essentially, no difference.

      10             So, we know that the ENDS devices are being

      11      used at a much higher rate, but the quit rate for

      12      smoking isn't changing.

      13             So what we're seeing is, I think, the

      14      beginnings of that dual use.

      15             We need to understand it better, but, there's

      16      no indication that quit rates are going up.

      17             SENATOR HANNON:  And questions of addiction,

      18      how -- one of the studies, like, that show you how

      19      long it takes for someone to become addicted to

      20      smoking tobacco; how long -- you know, how difficult

      21      it is to get out of smoking; and, what methods of

      22      cessation in terms of withdrawal?

      23             HARLAN JUSTER, Ph.D.:  Nicotine addiction is

      24      one of the most difficult addictions there is.  It's

      25      probably more difficult to quit that than to quit







                                                                   19
       1      alcohol addiction.

       2             Youth who have been smoking for just a month

       3      or two begin to show the signs of addiction -- you

       4      know, the early signs of addiction.  You know,

       5      smoking earlier and earlier, first thing in the

       6      morning, difficulty quitting, feelings of craving,

       7      and things like that.

       8             So, that's the nicotine.  Nicotine is

       9      extraordinarily addictive.

      10             And if you look at the rates of relapse

      11      following cessation attempts, it's exactly the same

      12      relapse rate that you see with all other kinds of

      13      addiction: heroin addiction, alcohol addiction.

      14             When you look at the relapse rates,

      15      something, like, 50 percent relapse within 30 days,

      16      and I believe 80 or 90 percent within 6 months.

      17             And it's the same curve for every one of

      18      those addictions.

      19             And that's why there is the development of

      20      the FDA nicotine -- approved nicotine-replacement

      21      therapies, like the patches and the gums, that

      22      provide nicotine to a person, which is a safer

      23      alternative when provided in approved form, than

      24      getting your nicotine through tobacco smoke, for

      25      instance, which has all the other chemicals







                                                                   20
       1      associated with it.

       2             The problem with these devices is, they're

       3      not regulated, they're not approved, you don't know

       4      what people are getting.  You don't know how much

       5      nicotine you're getting from them.

       6             People use them all different ways.

       7             Just saw a study in which youth are actually

       8      disassembling the devices and pouring the liquid

       9      nicotine directly onto the heater within the device,

      10      which is not how it's supposed to be used, but it

      11      produces a much higher level of nicotine emission

      12      that they can inhale.  But in the same time, they're

      13      also getting formaldehyde and some other things that

      14      are produced at high temperature, that aren't

      15      produced if they use in the expected way.

      16             Nicotine addiction is an extremely difficult

      17      addiction to break, but people do it.  And,

      18      actually, most of them still do it without help,

      19      without assistance.

      20             It's a bit of a conundrum there to get people

      21      to try these products.

      22             They seem to want to quit on their own, is a

      23      popular thing that we hear from people who are

      24      trying to quit.  They don't want help.

      25             But help will increase the likelihood of them







                                                                   21
       1      quitting with these devices.

       2             SENATOR HANNON:  Thank you.

       3             Senator Rivera.

       4             SENATOR RIVERA:  Thank you, Dr. Juster.

       5             First of all, thank you, obviously, for being

       6      here.

       7             This is a brief, but I think very thorough

       8      kind of outline of what are the concerns that we

       9      have.

      10             And I want you to -- and I wanted for you to

      11      talk a little bit more about, in particular, the way

      12      that these products are being marketed.

      13             I think it was -- I was -- kind of, as I was

      14      hearing, I was reading along, and I kind of jumped

      15      ahead a little bit, and there was some sections that

      16      really outlined the fact that, for the most part,

      17      they are -- these companies are borrowing the

      18      advertising strategies that were used by tobacco

      19      companies before they were regulated or prohibited

      20      from doing so.

      21             And that if you take that model and you just

      22      put it on to the -- on to what's happening now, that

      23      we're just looking at exactly the same marketing

      24      type of strategies.

      25             So, I wanted you to talk a little bit more







                                                                   22
       1      about that.

       2             HARLAN JUSTER, Ph.D.:  Sure, sure.

       3             The marketing of tobacco in the past was an

       4      extraordinarily successful marketing technique.

       5             It set the tone for the use of these

       6      products.

       7             It made them look glamorous to the public.

       8             It provided status symbols.

       9             Made people think they were going to be

      10      healthier using these products.

      11             They were amazingly successful.

      12             And the strategies include things like,

      13      endorsement from celebrities.

      14             Long time ago, it used to be doctors doing

      15      the endorsements.

      16             They got rid of that, but, still, celebrity

      17      endorsement is important.

      18             The flavorings that make it easier -- well,

      19      they taste better, but also makes it easier to use

      20      the products, are very popular.

      21             You saw some of the flavorings I showed you.

      22      Clearly, those are meant to appeal to youth and

      23      young people.

      24             See, celebrity endorsements and flavorings

      25      and -- and, I guess, as I said, it's the old







                                                                   23
       1      playbook all over again.

       2             There's -- the themes of the ads are, I think

       3      I said in my -- in the longer comments, you know,

       4      rugged individuality, and also rebelliousness.

       5             And these are the themes that young people,

       6      especially adolescents, take to.

       7             They are attracted very much by being -- by

       8      wanting to appear more individual -- more of an

       9      individual, and rugged, and tough, and sort of

      10      rebellious, is a key to, you know, grabbing the

      11      attention of young people.

      12             And they do this very well.

      13             SENATOR RIVERA:  Okay, and as it relates to

      14      cessation, there's two points that you mentioned,

      15      that I want to underline, as well.

      16             One of them is that there is -- in the

      17      evidence that you've seen so far, even though the

      18      use of these types of devices has spiked in the

      19      population of smokers, you don't see, necessarily,

      20      a -- an uptick in the type of -- in the amount of

      21      people that want to actually quit.

      22             HARLAN JUSTER, Ph.D.:  Correct.

      23             SENATOR RIVERA:  So, therefore, that doesn't

      24      necessarily -- it's not -- you know, it's not a

      25      double-blind study, et cetera, but there's,







                                                                   24
       1      obviously, not --

       2             HARLAN JUSTER, Ph.D.:  There was one.

       3             SENATOR RIVERA:  There was one?

       4             HARLAN JUSTER, Ph.D.:  One double-blind --

       5      or, I'm sorry, not double-blind.

       6             But there was a random controlled trial.

       7      People knew what they were getting.

       8             One random controlled trial -- it's in the

       9      longer comments -- that compared an e-cigarette with

      10      nicotine to a patch -- nicotine patch, to nothing,

      11      I think.

      12             And the quit rates, quit rates are not high

      13      for any of those products.

      14             The quit rate for the patch was about

      15      5.8 percent, and the quit rate for the e-cigarette

      16      was 6.8 percent; slightly higher, but a

      17      nonsignificant difference, as if they're -- the quit

      18      rates were identical.

      19             And, of course, it doesn't take into account

      20      the quality-control issues and the marketing to

      21      youth, and all that.

      22             And, again, the harm-reduction argument says:

      23             Will it help the individual?

      24             Will it help the population as a whole?

      25             And you have to balance both of those.







                                                                   25
       1             People who tend to look at these as cessation

       2      devices aren't looking at the population as a whole.

       3             They're looking at the individual user only

       4      and saying this might help this user.

       5             Well, but not if it gets 10 new kids to

       6      smoke.

       7             That's not worth it.  That's not a

       8      calculation I'm willing to make.

       9             SENATOR RIVERA:  And, ultimately, the -- as

      10      your conclusion here, it seems to be that you're

      11      saying, even though there might not be enough

      12      research yet to be able to determine whether this --

      13      you know, it might be a good cessation device, it

      14      might be good for that purpose, to make the argument

      15      that there's not enough evidence yet that it is or

      16      it isn't; therefore, we shouldn't regulate it, is

      17      not a smart public-safety or public-health decision.

      18             HARLAN JUSTER, Ph.D.:  Not given the history

      19      of this industry, which, as we know, was convicted

      20      of racketeering and marketing directly to kids.

      21             Judge Kessler said they're marketing to kids,

      22      even when they weren't supposed to, and they were

      23      convicted for that.

      24             This is the same industry that did that --

      25      did those things.







                                                                   26
       1             And those -- the three big companies, you

       2      know, Lorillard, R.J. Reynolds, and Altria, are now

       3      in the e-cigarette business.  All three of them have

       4      a product.

       5             Blu; Vuse, V-U-S-E, whatever that is; and

       6      MarkTen, are now e-cigarette products.  And when

       7      they get in the business, then you start to worry.

       8             We worried before.

       9             SENATOR HANNON:  I have a -- this is what

      10      I got yesterday when I was buying a windshield wiper

      11      at Pep Boys.  Right at the counter was, M-I-S-T-I-C;

      12      hence Mistic.

      13             SENATOR RIVERA:  It sounds -- it sounds

      14      awesome.

      15             HARLAN JUSTER, Ph.D.:  It sounds awesome, and

      16      it looks awesome.

      17             And if you look at the products, they're very

      18      cool.

      19             I think some of them come with USB connectors

      20      to recharge them in your computer, because they're

      21      rechargeable units.

      22             These are very cool, interesting products

      23      that any of us would be interested in, as long -- if

      24      you didn't know what they were.

      25             SENATOR HANNON:  Yeah.







                                                                   27
       1             Well, thank you very much.  I deeply

       2      appreciate it.

       3             And I think there's a very solid foundation

       4      you've helped lay for this whole thing.

       5             HARLAN JUSTER, Ph.D.:  Great.

       6             Thank you.

       7             SENATOR RIVERA:  Thank you, Doctor.

       8             SENATOR HANNON:  I'd like to ask

       9      Dr. Lawrence Eisenstein to join us.

      10             Dr. Eisenstein is not only the health

      11      commissioner of the county of Nassau, protecting my

      12      health, he is also the president of the New York

      13      State Association of County Health Officials,

      14      NYSACHO, representing the whole state.

      15             Thanks for joining us this morning.

      16             DR. LAWRENCE EISENSTEIN:  Thank you,

      17      Senator Hannon.  It's my pleasure to be here.

      18             Good morning.

      19             My name is Dr. Lawrence Eisenstein.  I'm the

      20      commissioner of health for Nassau County, and

      21      I currently serve as the president of the

      22      New York State Association of County Health

      23      Officials, also known as "NYSACHO."

      24             NYSACHO represents all 58 county health

      25      officials, and they send their regards.







                                                                   28
       1             I want to thank the Senate Standing

       2      Committee, and send greetings from all 58 county

       3      health officials, Senator Rivera.

       4             And, of course, a special thanks to Committee

       5      Chairman Senator Kemp Hannon who represents my

       6      county.  He's been a great partner in health care.

       7             Our association had a monthly meeting last

       8      week and we discussed the pending legislation.

       9             NYSACHO loudly applauds and supports the

      10      efforts of regulating electronic tobacco-delivery

      11      devices and related components, also known as

      12      "e-cigarettes."

      13             And for the purpose of this testimony, we'll

      14      call them "e-cigarettes."

      15             I do want to comment that a lot of what

      16      you're going to hear from me was just said in what

      17      I also thought was a very thorough, excellent

      18      introduction.

      19             And I'm very appreciative of Dr. Juster's

      20      presentation, because when you hear the same theme

      21      over again, independently reached upon by different

      22      health officials, it really tends to lend

      23      credibility.

      24             And I -- it's not -- it was -- at first I was

      25      thinking, Hey, this guy's stealing my thunder.







                                                                   29
       1             But, in fact, it's really important to hear

       2      the same themes over and over again, and that we're

       3      all looking at the same data and evidence.

       4             As public-health officials, we're always

       5      searching for new tools to help smokers to quit.

       6             E-cigarettes are marketed as a

       7      smoking-cessation tool or a safe alternative to

       8      traditional tobacco products.

       9             But, in fact, we have no solid evidence that

      10      e-cigarettes really help people quit smoking.

      11             In fact, there are new studies, numerous new

      12      studies, suggesting that they serve as a gateway to,

      13      especially our youth, smoking actual cigarettes

      14      later on, and, there remains questions about their

      15      safety.

      16             We know that the nicotine in e-cigarettes is

      17      addictive.

      18             We do not know for certain what else is in

      19      the vapor they produce.

      20             Very often we hear it marketed as

      21      "water vapor," but the fact is, it's hard to believe

      22      it's just water vapor when we can all clearly smell

      23      some kind of chemical odor when we're around people

      24      using e-cigarettes.

      25             Water vapor should not have a chemical-odor







                                                                   30
       1      smell.  We want to know exactly, what is that?

       2             What chemicals are coming out of the vapor of

       3      e-cigarettes into the general air that everybody

       4      else has to breathe?

       5             Till we have clear evidence that e-cigarettes

       6      are both safe and effective for smoking cessation,

       7      NYSACHO believes and supports that our legislators

       8      regulate their manufacture and quality control.

       9             Unless we can assure their safety,

      10      e-cigarette use and exposure should be limited, and

      11      we're very excited to support the pending

      12      legislation.

      13             While we await federal regulation of this

      14      industry and these devices, NYSACHO supports our

      15      state's leaders, in particular, in taking action to

      16      protect all of the residents of New York State.

      17             We find the statewide legislation to be

      18      vital.

      19             We commend those localities that have already

      20      taken action or are considering it, but, similar to

      21      the New York State Clean Indoor Air Act, state

      22      legislation would standardize safety measures to the

      23      benefit of all New Yorkers.

      24             The current package of proposed legislation

      25      before your Committee is a crucial first step.







                                                                   31
       1             There's much we still need to learn about

       2      e-cigarettes, and there are many studies ongoing,

       3      but what we already know is troubling.

       4             We know that they are aggressively marketed

       5      to children and young adults, a theme you heard

       6      earlier, but I think it's really important to

       7      reemphasize.

       8             A CDC study published, tells us that the rate

       9      of e-cigarette use doubled, "doubled," for both

      10      middle and high school students in just one year,

      11      between 2011 and 2012.

      12             Make no mistake, this is the result of direct

      13      marketing to our youth.

      14             An example of marketing to minors is the use

      15      of flavors in e-cigarettes.

      16             While the federal government has banned

      17      flavoring of traditional cigarettes, e-cigarettes

      18      are sold in cherry, vanilla, cola, bubble gum, and

      19      chocolate flavors.

      20             Ads for e-cigarettes make them look

      21      glamorous, sexy, and rebellious, and as was just

      22      stated, they look cool.

      23             A recent University of California study

      24      published in the Journal of the American Medical

      25      Association Pediatrics version, just this month,







                                                                   32
       1      found that e-cigarettes can be concluded to be

       2      gateways; that is, they encourage teenagers who use

       3      e-cigarettes to progress to smoking traditional

       4      cigarettes.

       5             The data clearly showed that teens who use

       6      e-cigarettes have a much higher rate of using

       7      cigarettes -- actual cigarettes later on.

       8             This was from, again, the Journal of the

       9      American Medical Association Pediatrics Edition.

      10             New York State's 2012 ban on the sale

      11      e-cigarettes to minors has proven difficult to

      12      enforce.

      13             Unlike traditional tobacco sellers, vendors

      14      are not required to register with the Department of

      15      Tax and Finance, making it difficult to establish

      16      where e-cigarette products are sold.

      17             For this reason, county health officials

      18      support Senate Bill 7139.  It requires e-cigarette

      19      retailers who are not registered with State Tax and

      20      Finance to register with the State Health

      21      Department.

      22             Major public-health risk with e-cigarette

      23      liquid is nicotine poisoning.  One tablespoon of

      24      this poisoning can be lethal to adults, and just a

      25      small teaspoon is lethal to children.







                                                                   33
       1             Right now, these e-liquids can be sold in

       2      large quantities -- barrels, gallons, whatever large

       3      quantity you want -- with no protective packaging or

       4      warnings.

       5             Nicotine-poisoning calls, to further

       6      emphasize this point, to poison-control centers

       7      nationwide have risen, from 1 per month in 2010, to

       8      215 calls per month by February 2014.

       9             More than half of these calls related to

      10      nicotine poisoning from the liquids in children

      11      under the age of 5.

      12             What an absolutely unacceptable risk to our

      13      children's health.

      14             County health officials strongly support

      15      Senate Bill 7027, which requires labeling and

      16      warnings to make adults aware that this these

      17      liquids are hazardous, and it prohibits the sale of

      18      liquid nicotine to minors.

      19             The financial burden of tobacco use for

      20      New York State is estimated at about $8.2 billion

      21      annually.  This includes more than $3 billion every

      22      year in Medicaid costs for tobacco-related

      23      illnesses.

      24             We need to keep making progress to rein in

      25      these costs, not reverse it.







                                                                   34
       1             But a recent study by the CDC states that the

       2      number of Americans who have ever used e-cigarettes

       3      quadrupled between 2009 and 2010.

       4             And as discussed earlier, as these are a

       5      gateway to actual cigarette use, this could impact

       6      the trend of decreasing the overall number of

       7      smokers we have in our country.

       8             County health officials want to see the

       9      Clean Indoor Air Act apply to e-cigarettes.

      10             First of all, e-cigarettes may lead to health

      11      problems, particularly due to the inhalation of

      12      toxic chemicals.

      13             Nicotine itself represents health risks.

      14             A 2009 FDA study found that some e-cigarette

      15      liquids contained toxins and carcinogens, including

      16      diethylene glycol.  This chemical is found in

      17      antifreeze.

      18             Such toxins make exposures to the vapor risky

      19      for both smokers and nonsmokers.

      20             Secondly, the use of e-cigarettes makes it

      21      difficult for local health departments to enforce

      22      existing smoke-free-air laws.  It can be tougher and

      23      forces to distinguish between the e-cigarettes and

      24      traditional cigarettes.

      25             The industry promotes the use of e-cigarettes







                                                                   35
       1      where other tobacco products are prohibited.

       2             We believe that by encouraging use of

       3      e-cigarettes in public places, the industry seeks to

       4      reestablish smoking as an acceptable, appealing

       5      behavior.

       6             This can undercut years of successful efforts

       7      to reduce tobacco use.  It can wipe out the progress

       8      we've made in reducing tobacco-related illnesses and

       9      all of their associated human and financial costs.

      10             We cannot allow this to happen.

      11             In closing, we should thank Senator Hannon,

      12      Senator Rivera, the Standing Senate Committee on

      13      Health, and the Assembly sponsors of legislation to

      14      control e-cigarettes.

      15             NYSACHO loudly appreciates your ongoing

      16      efforts to reduce nicotine poisoning and tobacco

      17      use, and to ensure cleaner, safer air for all

      18      New Yorkers.

      19             Thank you for allowing me to testify this

      20      morning.

      21             HARLAN JUSTER, Ph.D.:  Well, thank you,

      22      Dr. Eisenstein.

      23             That -- you -- some, again, powerful facts

      24      that are there, and the correlations, especially as

      25      to where we may be going with this.







                                                                   36
       1             I should know the answer to this question.

       2             Is it the health departments that do the age

       3      verification for the sale, or is that the

       4      Consumer Affairs Department?

       5             DR. LAWRENCE EISENSTEIN:  Yes.

       6             SENATOR HANNON:  You're "yes" --

       7             DR. LAWRENCE EISENSTEIN:  Yes -- sorry.

       8             We have the tobacco-control program which

       9      does that.

      10             SENATOR HANNON:  So you would be -- because

      11      one of the bills that we have before us, is to have

      12      registration when any sale is done, because it's not

      13      necessarily a tobacco product.

      14             So that -- it's really --

      15             DR. LAWRENCE EISENSTEIN:  Yes, and that's one

      16      of our challenges.

      17             We currently do a great job with our tobacco

      18      stings for age verification, but, all of the vendors

      19      of tobacco are registered, so we know, and can plan

      20      how many visits we need to do, how many stings we

      21      need to do.

      22             In our county, it's one of the most effective

      23      programs there is.  We're up to, approximately,

      24      97 percent compliance, which is much higher than

      25      when the program began.







                                                                   37
       1             And -- but as you said, we don't go into

       2      Pep Boys to see who they're -- and when you brought

       3      that up, I said, What a wonderful example.

       4             SENATOR HANNON:  It was right in Hempstead,

       5      and I didn't even go looking for it.

       6             DR. LAWRENCE EISENSTEIN:  That's right.

       7             SENATOR HANNON:  I just needed a windshield

       8      wiper.

       9             DR. LAWRENCE EISENSTEIN:  And my inspector

      10      might be there to collect the windshield wiper, but

      11      other than that, we're not checking who they're

      12      selling this product to.

      13             SENATOR HANNON:  And the other thing that

      14      really caught my eye was the presence of other

      15      things that are in the e-cigarettes.

      16             I just wasn't really in the forefront of,

      17      propylene glycol?

      18             DR. LAWRENCE EISENSTEIN:  The

      19      diethylene glycol, yeah.

      20             SENATOR HANNON:  Diethylene glycol, is this

      21      something that's in each of the e-cigarettes?

      22             DR. LAWRENCE EISENSTEIN:  We don't know, and

      23      that's one of the challenges.

      24             One of the challenges is, there's no

      25      standardization.







                                                                   38
       1             And one of the points that I wanted to make

       2      is, you know, before a therapy or a drug is

       3      approved, the standard by the FDA, in general, is

       4      that it has to be shown to be effective and do no

       5      harm.

       6             And in the case of e-cigarettes, the data

       7      doesn't prove it to be effective, yet.  In fact, the

       8      data's very mixed.

       9             And, certainly, as a gateway, it may be

      10      causing more smokers.

      11             And not only does it not meet that FDA

      12      standard, but the "do no harm" standard, we don't

      13      even know, fully, what's in the vapor.

      14             The different vendors have different

      15      chemicals and toxins, carcinogens.

      16             But, again, what's marketed as "water vapor,"

      17      it doesn't smell the way water vapor should smell.

      18      We know something's in there.

      19             And so that's an example of, we need to know

      20      exactly what's in there before we can even think of

      21      letting our children have access to it.

      22             So we agree with the State Health

      23      Department's stance, that more work and more studies

      24      are being done, and need to be done, but, certainly,

      25      we wouldn't want a treatment for cigarettes that







                                                                   39
       1      does harm, especially to our youth who are using it

       2      in alarming numbers.

       3             SENATOR HANNON:  Thank you.

       4             We have been joined by

       5      Senator Hassell-Thompson.

       6             SENATOR HASSELL-THOMPSON:  Good morning.

       7             Thank you.

       8             SENATOR HANNON:  Do you have --

       9             SENATOR HASSELL-THOMPSON:  [Shakes head.]

      10             SENATOR HANNON:  Dr. Eisenstein, thank you

      11      very much.

      12             DR. LAWRENCE EISENSTEIN:  Thank you, Senator.

      13             SENATOR HANNON:  We really appreciate it, and

      14      I appreciate NYSACHO devoting time to this, and it's

      15      an important step.

      16             DR. LAWRENCE EISENSTEIN:  We've spent a lot

      17      of time discussing it, and you have great support on

      18      this.

      19             And I think a lot of us, we're very excited

      20      to see this legislation.

      21             Thank you.

      22             SENATOR HANNON:  Thank you.

      23             I'd like to ask Julianne Hart from the

      24      American Heart Association, and Michael Burgess from

      25      the American Cancer Society, to join us, together.







                                                                   40
       1             And as we're doing that, Senator Hoylman has

       2      joined us.

       3             Good morning, Senator.

       4             MICHAEL BURGESS:  Good morning,

       5      Senator Hannon, and thank you for holding this

       6      hearing, and members of the Committee.

       7             I'm the director of state government

       8      relations for the American Cancer Society Cancer

       9      Action Network.

      10             Other than in New York City which recently

      11      passed regulations on e-cigarettes in public places,

      12      the use and promotion of them is currently

      13      unregulated for New York -- in New York State for

      14      persons 18 and older, and poses a threat to the

      15      decades-long battle against smoking.

      16             They are not subject to the Clean Indoor Air

      17      Act which permit -- permits -- prohibits smoking in

      18      all public places and workplaces, including schools,

      19      malls, playgrounds, hospitals, restaurants, and

      20      bars.

      21             And as Dr. Juster noted, it's one of the

      22      three pillars of the antismoking policy that we have

      23      in this state which has been successful in bringing

      24      the smoking rate down.

      25             E-cigarettes are not included in the







                                                                   41
       1      definition of "smoking," so people can use them, as

       2      I said, anywhere at any time.

       3             Their continued use and growing popularity

       4      among middle and high school students, in

       5      particular, undermines the public-health campaign to

       6      prevent young people from starting with a deadly

       7      nicotine addiction.

       8             And manufacturers, as you've heard here

       9      today, are also seeking to normalize smoking through

      10      television ads and other well-funded marketing

      11      strategies.

      12             Let's be very clear about what you're talking

      13      about with your legislation to include the

      14      e-cigarette as products subject to the Clean Indoor

      15      Air Act.

      16             We are not taking away someone's right or

      17      freedom to use e-cigarettes.

      18             Those over 18 have that right, and your

      19      legislation does not take it away.

      20             Instead, it maintains the right of the

      21      84 percent of nonsmokers, who are the overwhelming

      22      majority in this country and state, to be in public

      23      places without having clouds of unknown vapors being

      24      emitted.

      25             Let me say that again:  Maintains the right







                                                                   42
       1      of the nonsmokers, the majority in this state and

       2      country, to be in public places and not have to

       3      worry about what these unknown vapors are.

       4             According to the data from the Centers for

       5      Disease Control and Prevention, nearly twice as many

       6      middle and high school students experimented with

       7      e-cigarettes in 2012 as in 2011, as you heard

       8      before.

       9             If e-cigarettes prove to be a gateway to

      10      other products, leading to an increase in underaged

      11      smoking, their usage would represent a serious

      12      setback in the fight against tobacco-related

      13      illnesses.

      14             Also, new research made public this month by

      15      the University of Colorado and Mississippi State

      16      shows, quote, Electronic cigarette use has risen

      17      quickly, with adult awareness doubling, from

      18      16.4 percent in 2009, to 32.2 percent in 2010, and

      19      ever use for adults, rising from 6/10ths of

      20      1 percent in 2009, to 2.7 percent in 2010.

      21             They concluded in this study that young

      22      adults exclusively used flavored e-cigarettes.  Many

      23      young-adult users are current and former smokers,

      24      suggesting e-cigarettes are used to maintain

      25      nicotine addiction, and may reexpose former smokers







                                                                   43
       1      to nicotine.

       2             Additionally, young adults are not using

       3      e-cigarettes as a cessation alternative.

       4             Continued research on patterns of use of

       5      these products is needed; particularly, to

       6      understand the age of initiation, flavoring, and

       7      influence of marketing to inform public policy and

       8      regulatory action.

       9             That was a quote from that study.

      10             While we have made great strides in the fight

      11      to reduce e-smoking -- or, smoking rates, rather,

      12      e-cigarettes are another gimmick to re-glamorize the

      13      dangerous practice and get more people smoking.

      14             They're offering e-cigarettes with

      15      liquid-nicotine refills that come in the flavors

      16      that were mentioned before.

      17             I won't go through them all.

      18             So I say, if e-cigarettes are all about

      19      helping people to quit smoking, then why is the

      20      advertising being done to re-glamorize it?

      21             We've heard before, and I guess we're going

      22      to hear from an expert on poison control, about

      23      exposure to the liquid in these cartridges, so I'm

      24      not going to go through that.

      25             Let me just mention again, that they're being







                                                                   44
       1      proposed, and the idea is being sold, as a healthy

       2      alternative, but you're going to hear later, but we

       3      appreciate what Roswell Park has come up with in

       4      terms of their study about what's in these

       5      e-cigarettes.  And you're going to hear directly

       6      from them, so -- I assume, so I won't go through all

       7      of that.

       8             But it's very concerning to us what they've

       9      come up with, that I think is, obviously, a threat.

      10             I would also like to just stress that, you

      11      know, we have other cessation methods, including

      12      medications, and also counseling through the

      13      tobacco-control program, which are recommended for

      14      smokers, and which have been proven.

      15             You know, the quit line, as I've said many

      16      times in my work here, when we have the money for

      17      that, and when those ads are on television, they're

      18      very successful in driving up the number of calls to

      19      the quit line.

      20             Let me note again, that New York City just

      21      passed a law that includes e-cigarettes.  It just

      22      went into effect under the Clean Indoor Air Act

      23      provisions.

      24             It's desirable, therefore, to have a uniform

      25      statewide policy in all of the counties of the state







                                                                   45
       1      of New York.

       2             That's important, not just because of what

       3      we've said before about the usage in public places,

       4      but, also, there's confusion about what is allowed.

       5             Somebody goes into a restaurant or a bar and

       6      they're wondering, you know, Why is that person

       7      smoking, vaping, whatever it is?  Are there two sets

       8      of rules in public places now; one for cigarettes,

       9      and one for e-cigarettes?

      10             But, again, it comes down to the right of

      11      persons who do not smoke to have the protection in a

      12      public place, as I mentioned before.

      13             That remains the standard on which

      14      regulations and laws must be considered, and the

      15      failure to protect the nonsmoking and non-vaping

      16      public is not acceptable, and represents a very

      17      clear erosion of the Clean Indoor Air Act.

      18             Our organization is not taking a particular

      19      position on your legislation regarding liquid

      20      nicotine and the registration of e-cigarette

      21      vendors, but we do think it's a good idea to

      22      consider how to deal with a changing marketplace,

      23      and what regulations are needed to protect health

      24      and safety in light of the comments about poison

      25      control.







                                                                   46
       1             Let me conclude by saying that tobacco usage,

       2      as we have heard today, has caused millions of

       3      deaths in this country and around the world.

       4             And let me say personally, that my father was

       5      a smoker, like most of the men of his generation,

       6      over 50 percent of them, and he died of lung cancer.

       7             He was almost 40 years old before the

       8      surgeon general came out with his report in 1964.

       9             And I'll speak, as having been involved,

      10      obviously, in the Aging Services, and one of the

      11      great statistics that I have worked with, is that

      12      men are living longer.

      13             It used to be we'd go out to places, senior

      14      centers, and 1 out of every 3 people over 65 was a

      15      man.

      16             Today, because of reducing the rate of

      17      smoking and improvements in heart-disease control,

      18      that number is 42 percent.

      19             So, we should not weaken the half-century

      20      effort that's been successful in reducing smoking

      21      rates and lung-cancer rates.

      22             For those who wish to use e-cigarettes and

      23      quit smoking, they will continue to have that right

      24      in other places than those that are defined in this

      25      law.







                                                                   47
       1             But for those who wish to open up a new

       2      market and a new generation to addiction, I would

       3      say that every legislator should be against that.

       4             SENATOR HANNON:  Thank you.

       5             Ms. Hart.

       6             JULIANNE HART:  Hi.  I'm --

       7             Is this on?

       8             Can you hear me okay?

       9             SENATOR HANNON:  Yes.

      10             JULIANNE HART:  Hi, I'm Julianne Hart with

      11      the American Heart Association.  We are the largest

      12      volunteer organization dedicated to building

      13      healthier lives free of heart disease and stroke.

      14             On the first page of my written testimony,

      15      you will see a graph which shows the numbers,

      16      percentage, of heart-disease and stroke deaths.

      17             Heart disease is the number one killer in

      18      New York, and stroke is the number four killer.

      19             In 2010, nearly 45,000 people in

      20      New York State died of heart disease, and over

      21      6,000 people passed of stroke in New York State in

      22      2010.

      23             As you know, smoking is a major risk factor

      24      for cardiovascular disease.

      25             Fortunately, New York State has made great







                                                                   48
       1      progress, and approximately 16 percent of New York

       2      adults smoke, and about 12 percent of youth are

       3      still smoking.

       4             So we've made progress, but there's more to

       5      be done.

       6             Part of our -- the gains that we have made

       7      have been a result -- as a result of the state's

       8      Clean Indoor Air Act.

       9             The Clean Indoor Air Act was enacted just

      10      over 10 years ago, and I'm sure you'll recall at the

      11      time that there was significant controversy over

      12      this.

      13             Everyone made claims that, you know, bottom

      14      lines, that people weren't going to make ends meet.

      15             But the bottom line is, as a result of your

      16      actions, New Yorkers are healthier, thanks to the

      17      Clean Indoor Air Act.

      18             Specifically, there's been significant

      19      reductions in the rate of hospitalizations for

      20      heart attacks in the 3 1/2 years after the law

      21      passed compared to the period prior to the law.

      22             Hospitalizations were 15 percent lower than

      23      expected had there been no change in the

      24      Clean Indoor Air Act.

      25             And it's estimated that in the first year







                                                                   49
       1      alone, there was approximately 3800 fewer hospital

       2      admissions for heart attacks, with an estimated cost

       3      savings of 56 million.

       4             However, we know now there's a significant

       5      loophole in the Clean Indoor Air Act, and that's

       6      electronic cigarettes.

       7             So we've seen in recent years the

       8      proliferation of these products.

       9             E-cigarettes were not available when the act

      10      was implemented.

      11             They are mostly unregulated, and their health

      12      effects are not fully known, especially when

      13      considering long-term use.

      14             And while additional research is needed, we

      15      are concerned that e-cigarette use and acceptance

      16      has the potential to renormalize smoking behavior,

      17      sustain dual use alongside cigarettes, and initiate

      18      or maintain nicotine addiction.

      19             As many of the speakers before me have noted,

      20      e-cigarettes are not approved cessation devices.

      21             The most effective way to help smokers quit

      22      are the seven approved FDA therapies, along with

      23      counseling.

      24             So we would strongly encourage the State to

      25      promote those therapies, versus any type of







                                                                   50
       1      electronic cigarette, at this point.

       2             We applaud the actions you've taken to date,

       3      particularly the law which bans the sale of

       4      e-cigarettes to minors.

       5             And we would encourage the State to go

       6      further at this point.

       7             We do believe that electronic cigarettes

       8      should be included within the definition of

       9      "tobacco products" in law, and that would include

      10      banning the use of e-cigarettes in public places as

      11      is currently done under the Clean Indoor Air Act.

      12             We would also support prohibiting the sale

      13      and marketing of tobacco to minors, which some of

      14      that is done, and taxing at a tiered structure.

      15             So, thank you.

      16             SENATOR HANNON:  Thank you very much.

      17      I appreciate it.

      18             I don't have any questions.

      19             Senator Thompson?

      20             Senator Hoylman?

      21             Senator Martin Golden?

      22             SENATOR GOLDEN:  No questions.

      23             SENATOR HOYLMAN:  I have a question --

      24             SENATOR HANNON:  Please.

      25             SENATOR HOYLMAN:  -- for Mr. Burgess.







                                                                   51
       1             And I apologize for coming late.

       2             And thank you, Senator Hannon, for your

       3      leadership on this important issue.

       4             Why hasn't the FDA, in your opinion, done any

       5      initial data release on health impacts of

       6      e-cigarettes?

       7             I mean, they've been silent, because of,

       8      I guess, data is forthcoming?

       9             Do you have any expectation when they will be

      10      sharing that information with the public?

      11             MICHAEL BURGESS:  Well, we just heard earlier

      12      from the Health Department, that -- well, in April,

      13      that Food and Drug Administration uttered its first

      14      comments on this, and opened up the regulation that

      15      now is in public comment period, as they were

      16      talking about.

      17             So, they've started the process.

      18             I mean, obviously, people have been waiting

      19      and waiting and waiting for them to take action, and

      20      I would expect that we'll be seeing more from them.

      21             But, I think there's a concern that it's

      22      taken a long time, and it may continue to take a

      23      while.

      24             But, as far as the data, I'm not sure exactly

      25      if they released any data that day when they came







                                                                   52
       1      out with this, or not.

       2             But, we're all looking for them to lead and

       3      to give as much information as they possibly can,

       4      and to look at some of the areas that they didn't

       5      even want to talk about in the initial round of

       6      regulation, which is, like, the flavoring and other

       7      things.

       8             SENATOR HOYLMAN:  Have you seen any -- from

       9      your network of cancer-research advocates, any

      10      health impacts?

      11             Or is there any suggestion that -- at this

      12      point, that there is a secondhand vapor concern, or

      13      anything to that effect?

      14             MICHAEL BURGESS:  Well, I think that that is

      15      exactly what's coming out now.

      16             I think that, for quite a while, until the

      17      last few months, we have heard a lot about, you

      18      know, the marketing and the benefits, in terms of

      19      trying to stop smoking.

      20             But now we're hearing, and you're going to

      21      hear today, I mean, I -- we -- I mentioned briefly

      22      that Roswell Park has a memo in support of this

      23      bill, and they're going to talk about that.

      24             And, there was a major "New York Times" story

      25      last week, talking about what you heard earlier,







                                                                   53
       1      about, when these are heated at a high level, what

       2      the emissions are.

       3             So there is concern about the emissions, and

       4      that they might become toxic, or even

       5      cancer-causing, at a high level of heat.

       6             SENATOR HOYLMAN:  Thank you.

       7             SENATOR HANNON:  Thank you very much.

       8      Appreciate it.

       9             I would ask Dr. Andrew Hyland, who is with

      10      the Roswell Park Cancer Institute, and

      11      Dr. Michael Holland, who's with the Upstate New York

      12      Poison Control Center, to join us.

      13             Now, obviously, there's only -- oh.

      14             And you are...?

      15             ANDREW HYLAND, Ph.d.:  Dr. Hyland.

      16             SENATOR HANNON:  Dr. Hyland.

      17             We've never met, so I don't know...

      18             ANDREW HYLAND, Ph.d.:  Let me get organized

      19      here.

      20             SENATOR HANNON:  And Dr. Holland.

      21             DR. MICHAEL G. HOLLAND:  Yes, sir.

      22             SENATOR HANNON:  Maybe we'll call Dr. Hyland

      23      first, and then -- unless you have another order

      24      that you decided on?

      25             Okay.







                                                                   54
       1             Thank you for joining us.

       2             Thank you for coming to Albany, and

       3      I appreciate both of you have a ways to go.

       4             ANDREW HYLAND, Ph.d.:  Lifelong New Yorkers.

       5             This is an important issue, obviously.  A lot

       6      of interest and discussion.

       7             Thank you, Chairman Hannon, and other members

       8      of the Committee.

       9             You know, I'm the chairman of the Department

      10      of Health Behavior at Roswell Park Cancer Institute

      11      in Buffalo, New York.

      12             I have been doing tobacco control for

      13      20 years.  We've published over 200 papers, numerous

      14      grants, contracts.

      15             I'm the deputy editor for the "Journal of

      16      Tobacco Control."

      17             And, I'm the scientific principal

      18      investigator for a big cohort study of tobacco

      19      users, both -- that the FDA will be looking at as

      20      the evidence begins to come out.

      21             I also am the director of the New York State

      22      smokers' quit line.

      23             So that's a little bit of a background on me.

      24             Thank you again for the invitation.

      25             I'll start my remarks with a summary of some







                                                                   55
       1      of the problem that we face.

       2             And some of what I've talked about,

       3      obviously, has been raised by other panel members

       4      previously.

       5             I'm going to describe some facts about

       6      e-cigarettes, some of which I think you've not heard

       7      in previous testimony; describe some of our relevant

       8      research at Roswell Park that we've been doing on

       9      e-cigarettes; and conclude with some thoughts and

      10      implications about some of the marketing, as well as

      11      the Clean Indoor Air Act.

      12             And, again, I'm not here to really advocate

      13      on a position on any bill that you might have before

      14      you, but, really, to help share some of our

      15      scientific expertise that we have, so that when you

      16      come to your decision-making, you'll have that at

      17      your disposal.

      18             You know, the problem, tobacco use, it's the

      19      number one preventable cause of disease in our

      20      country.

      21             You know, 23,000 New Yorkers die each year.

      22             The Surgeon General has put out a new

      23      statistic, like, in New York State, of those that

      24      are under 18 years of age, if you track them over

      25      their lifetime, 270,000 of them will die from a







                                                                   56
       1      cigarette-attributable disease.  You know, a quarter

       2      million people.

       3             Really looking at a huge, huge problem that

       4      we still have, despite the advances that we've made

       5      decreasing smoking prevalence.

       6             With regard to e-cigarettes, let me state up

       7      front what my position is on this, and let me finish

       8      the whole thing.  I don't want to be taken out of

       9      context here.

      10             It's my view that there's reason to be

      11      hopeful about the potential of e-cigarettes to

      12      reduce the disease-burden caused by tobacco.

      13             The best thing that a smoker can do is to

      14      quit altogether.  Without question, that's the best

      15      thing.

      16             But short of that, if a smoker is able to

      17      switch completely from those combusted cigarettes to

      18      an e-cigarette, while the evidence is still

      19      emerging, it's my belief that that's probably going

      20      to be beneficial to that individual, without all the

      21      toxic byproducts.

      22             However, a big "however" here, is that

      23      there's reason also to be very concerned about the

      24      potential unintended consequences of electronic

      25      cigarettes and their marketing, and this is where we







                                                                   57
       1      are, because this is an experiment that's happening

       2      in real time, and we don't have all of the evidence

       3      on which to make these decisions.

       4             Some people may use cigarettes as a reason

       5      not to quit smoking, but as a reason to continue

       6      smoking, as sort of a psychological crutch to think,

       7      Oh, if I reduce the amount that I'm smoking by a few

       8      cigarettes per day, that that's okay.  Or, I can go

       9      out and use an e-cigarette while I'm in a social

      10      venue, that that's -- that they're mitigating their

      11      risk.

      12             Youth that have never smoked may take up

      13      e-cigarettes, and former smokers may come back into

      14      the tobacco-using marketplace.

      15             All of these things would be bad outcomes for

      16      public health.

      17             And how these products are marketed is a key

      18      driver of these behaviors.

      19             Research is underway to understand these

      20      issues, but in the meantime, it's sensible to

      21      discuss policies that address some basic

      22      foundational issues.

      23             And I understand that there are several bills

      24      that are under consideration at the moment.

      25             Looking at some facts about e-cigarettes,







                                                                   58
       1      I think you heard some testimony about how they

       2      work.

       3             There's a liquid, it's vaporized, the

       4      nicotine comes off, and the user breathes that in.

       5             And that's the vaping process.

       6             Sometimes you'll hear people, the term

       7      "vaper."

       8             There's flavors, all kinds.  You know,

       9      chocolate, sex on the beach, mint...you name it,

      10      it's out there.

      11             And, nationally, e-cigarettes, gross sales

      12      are about $2 billion this year.

      13             At least one stock analyst for Wells Fargo

      14      has put a bold prediction out there that, within

      15      10 years, the sales of e-cigarettes will surpass

      16      that of conventional cigarettes.

      17             So, in terms of fads or not, this looks like

      18      it's here for a while.

      19             In terms of patterns of use, you've heard the

      20      Center for Disease Control's statistics, looking at

      21      the doubling in youth uptake from 2011 to 2012.

      22             We also see a similar pattern, an increasing

      23      uptake in adults.

      24             Most of the e-cigarette use that we do

      25      observe, both in youth and adults, are among







                                                                   59
       1      cigarette smokers.  And I think it's safe to say

       2      that the evidence is not conclusive at all that

       3      e-cigarettes help people quit smoking.

       4             Dr. Juster referred to the one clinical trial

       5      that's been done, which showed no difference in quit

       6      rates, and, different people will use for different

       7      reasons.  And, again, the marketing will come into

       8      play here.

       9             So, I mean, a fundamental issue, when

      10      thinking about this, is do e-cigarettes pose a risk?

      11             And I think the answer is an unequivocal yes.

      12             While, overall, e-cigarettes appear to be

      13      less harmful in terms of the numbers and the amount

      14      of toxic chemicals, they're not safe.

      15             So, somebody comes out and says e-cigarettes

      16      are a safe alternative, that's not correct.

      17             And we know they make toxins that are

      18      harmful.

      19             And our group at Roswell Park has been at the

      20      forefront of research, and here's just a couple -- a

      21      couple highlights of some of our work.

      22             As mentioned previously, e-cigarettes may

      23      expose users to carcinogens.

      24             And with these newer e-cigarette devices,

      25      there's a voltage, and that can be variable.







                                                                   60
       1             The higher-voltage devices tend to emit more

       2      toxins.

       3             What are some of the toxins that are there?

       4             In particular, formaldehyde was mentioned,

       5      and formaldehyde is an embalming agent.  And they're

       6      emitted, and these things are -- and formaldehyde is

       7      also carcinogenic, and can be emitted into the air

       8      which can be breathed and can be harmful to

       9      non-users.

      10             Secondhand vapor is also a concern.

      11             Work in our lab shows that e-cigarettes are

      12      not emission-free.

      13             They include nicotine; acrolein, which is a

      14      weed killer; formaldehyde; and other chemicals.

      15             So while the concentrations of these toxins

      16      is less than what you see coming off of a burning

      17      conventional cigarette, it's still -- it's a matter

      18      of, you know, just a little bit of poison versus a

      19      lot of poison.

      20             And so, when it comes to looking at

      21      smoke-free policies, again, the intent is really to

      22      try to provide smoke-free and healthy air for

      23      employees to breathe.

      24             So there's health risks associated to the

      25      users.  Secondhand vapor or smoke issues to







                                                                   61
       1      non-users.

       2             We've also done studies about thirdhand

       3      exposure, which would be like the residue that you

       4      would see.  And, again, we see that kind of residue

       5      coming off of e-cigarette vapors, again, sort of

       6      complementing what we see from cigarette smoke.

       7             I understand the Committee's also looking at

       8      issues regarding e-liquid.  And I think you've heard

       9      about some of the poison-control statistics.  And

      10      there's the graphic over here from a previous

      11      speaker on the right -- on my right.

      12             Scientific research is ongoing, and in the

      13      near future, we'll be used to more helply -- more

      14      clearly delineate the health risks and net

      15      public-health impact of these devices.

      16             But while the content and emissions from

      17      e-cigarettes are being analyzed, the behavioral

      18      risks are also being assessed.

      19             So it's not just the products themselves, but

      20      it's how they're used, which is what confers risk.

      21             As I mentioned earlier, there's reason to be

      22      hopeful about e-cigarettes for improving public

      23      health if they serve as a transition for people to

      24      get off of conventional cigarettes completely, but

      25      that's a big "if" that's there.







                                                                   62
       1             And there's also significant reason to be

       2      concerned if we fall short of that goal.

       3             And I mentioned the marketing for

       4      e-cigarettes plays a role.

       5             You know, since 1971, you can't advertise

       6      tobacco products on television, but there's no

       7      current restrictions on e-cigarettes.  And,

       8      unfortunately, the FDA deeming rule that was

       9      published last month is silent on the issue of

      10      e-cigarettes and marketing, perhaps to be taken up

      11      at a later time for a later rule.

      12             A recent report estimates about 59 million

      13      was spent on e-cigarette advertising in 2013.

      14             And I just wanted to show a couple of

      15      examples of what we see when it comes to some of the

      16      marketing here.

      17             So, let me see if I can...

      18             Many of you might recognize this character.

      19             You know, the great Yankee catcher,

      20      Yogi Berra, the great philosopher, one of his, you

      21      know, sayings was, "Looks like deja vu all over

      22      again."

      23             And that's exactly how I feel when it comes

      24      to this.

      25             So, looking here on the panel, some examples







                                                                   63
       1      of both cigarette ads juxtaposed with cigarette ads.

       2      It's really the same message: Switch but don't quit.

       3             And on the top middle, this is a True

       4      cigarette-brand ad.  This is from, like, 1974, 1975.

       5             Considering all I heard, it's about low tar.

       6      Low-tar products.

       7             "Either quit or smoke True."

       8             "I smoke True."

       9             Again, that message to say, you don't have to

      10      quit.  You know, we've got a safer alternative for

      11      you.

      12             And blu e-cigarettes, on the top left; again,

      13      the same exact message.

      14             We see rugged men and beautiful women.

      15             Again, the e-cigarette ad, on the left.

      16             The Marlboro cowboy on the right.

      17             And, again, blu e-cigarette versus the

      18      Virginia Slim model.

      19             It's, you know, virtually, the same ads and

      20      just scrubbed out the text.

      21             Music festivals and sports sponsorships;

      22      again, blu e-cigarette festival, a cool jazz

      23      festival.

      24             You know, and the two racing cars.  Even the

      25      angle, that might even to be same car.  I think







                                                                   64
       1      that's just layered.

       2             So, again, replaying a successful marketing

       3      campaign.

       4             Again, e-cigarette ad, FIN e-cigarette brand.

       5             Pall Mall, this is an ad from, I think, the

       6      '40s, looking at here.

       7             Virtually the same.

       8             And the flavors, we've heard about the

       9      flavors.

      10             Again, the blu e-cigarette ads versus the

      11      Camel cigarette ad, on the right.

      12             Celebrity spokes people, again, really

      13      juxtaposed, using that same playbook.

      14             And, of course, you know, sex always sells.

      15             If you haven't checked out the Swimsuit Issue

      16      this year, the e-cigarette ad, I didn't know that

      17      the bikini bottom would be a billboard for

      18      blu e-cigarettes.

      19             And, apparently, the online version, young

      20      teenage boys can go and zoom in, and just make sure

      21      things are spelled correctly, I guess, on that.

      22             So that's an example of how some of the

      23      marketing.

      24             Now, obviously, marketing is a difficult

      25      issue to deal with, but I think definitely shapes







                                                                   65
       1      who this target audience is.

       2             If we're looking at a 50-year-old cigarette

       3      smoker, say, "Hey, use my product, my e-cigarettes,

       4      so you can get off of those cigarettes completely,

       5      and then maybe transition to get off of those

       6      completely," that's a good outcome.

       7             But that's not what we're seeing here.

       8             I've heard some say that, in fact, these

       9      companies are their own worst enemy on this because

      10      they might find sympathy in those that are looking

      11      for a public health -- a product that could benefit

      12      public health.

      13             But when it's marketed like this, there's

      14      concern.

      15             And just, briefly, to summarize here:

      16             In 2003, New York State took a strong stand,

      17      a leading national stance, with their Clean Indoor

      18      Air Act, protecting health of both smokers and

      19      nonsmokers.

      20             And public forums like this provide an

      21      opportunity to share information about the relevant

      22      science needed.

      23             In 2003 e-cigarettes didn't exist, so it's

      24      very sensible to say, let's -- you know, we've got a

      25      new issue, new concerns, and let's see if it makes







                                                                   66
       1      sense to try to incorporate that.

       2             And, again, the science that our group and

       3      other groups have performed; so, that there are

       4      toxins in e-cigarette vapor, and that they can

       5      provide exposure to non-users in public places.

       6             So, a very complex issue, lots of layers

       7      involved.

       8             I appreciate the opportunity to speak briefly

       9      before the group, and would be happy to answer any

      10      questions after, from this panel.

      11             SENATOR HANNON:  Dr. Holland.

      12             DR. MICHAEL G. HOLLAND:  Thank you, sir.

      13             Appreciate the chance to come talk to you.

      14             I'm a physician toxicologist at the

      15      Upstate New York Poison Control Center, and we're

      16      housed at the SUNY Upstate Medical University in

      17      Syracuse, New York.

      18             I just wanted to echo some of the comments

      19      that others have made, and I'm just going to briefly

      20      make some comments, and I'm here to answer any

      21      questions, basically.

      22             We have seen an increase in calls related to

      23      e-cigarette liquid nicotine.

      24             In 2013, we had 27 total calls to the

      25      Upstate New York Poison Center.







                                                                   67
       1             In 2014, just in the first 4 months, we've

       2      already had 27.

       3             So it's really, basically, a 300 percent

       4      increase in calls related to this.

       5             About half or -- about a third of these calls

       6      have been for children under age 5 accidentally

       7      stumbling all upon these liquid products.

       8             And the danger with these is that, that

       9      they're so concentrated.  You know, the toxicity of

      10      nicotine, we've known about, because kids, as

      11      they -- toddlers especially, as they explore their

      12      environment, they tend to put things -- they look at

      13      something and then put it in their mouth.

      14             Cigarettes don't taste very good so they

      15      often never get, you know, any toxicity.

      16             If they do, the toxicity involves, first of

      17      all, vomiting.  And they'll often self-decontaminate

      18      because they vomit up many -- much of the stuff

      19      they've ingested.

      20             So the problem with the liquid nicotine is

      21      they're so much more concentrated than a cigarette,

      22      that just small amounts can be lethal.

      23             The LD50, which is the lethal dose that will

      24      kill 50 percent of a population, it's -- you know,

      25      it's extrapolated from animal studies.  But we also







                                                                   68
       1      know, in humans, that about 1 milligram per kilogram

       2      of nicotine can kill you.  So, 1 milligram ingested

       3      per kilogram of body weight.

       4             So a child that weighs, you know,

       5      5, 10 kilograms, there's the small amounts that can

       6      kill them.

       7             And many of these products that are not in

       8      child-proof packaging are liquids that contain

       9      19 milligrams per ml.

      10             So just a teaspoon would have over

      11      100 milligrams, so it could easily be lethal.

      12             And even -- and even the concentrated

      13      formulas like that, could even be -- small amounts

      14      could even be lethal to adults.

      15             Nicotine is so toxic that it previously was

      16      one of the best available pesticides.

      17             People sprayed it on crops before there were

      18      other more readily available chemical manufactured

      19      pesticides.  But it's still an effective pesticide,

      20      so it's used to kill things, so it can be lethal in

      21      high amounts.

      22             We at the Upstate New York Poison Center

      23      serve 7.4 million New Yorkers.

      24             We cover all the counties north of Orange and

      25      Westchester county.







                                                                   69
       1             And then the other poison-control center in

       2      the New York poison system is the New York City

       3      Poison Center that covers the rest of the counties

       4      and Long Island and New York City.

       5             And the other danger that you don't see with

       6      other nicotine-replacement products, such as the gum

       7      and the lozengers [sic], is that the nicotine is

       8      well-absorbed through the skin.  It's one of the

       9      unique toxins.  It doesn't just have to be ingested.

      10             So you can absorb it by vaporizing it in the

      11      e-cigarettes, but you can also absorb it by

      12      accidental swallowing it.

      13             But you can also get toxic from absorption

      14      through to be skin.

      15             There's a well-known occupational illness

      16      called "green-tobacco illness," or "green-tobacco

      17      sickness," where people that are picking tobacco, if

      18      it's moist tobacco, or if they get sweaty and the

      19      tobacco leaves get wet, and get on their skin, they

      20      can actually absorb nicotine very readily and get

      21      sick.

      22             It's a known occupational illness.

      23             So we know that nicotine is well-absorbed

      24      through the skin.

      25             And there have been -- of these calls that







                                                                   70
       1      we've received, there have been three calls already

       2      this year of skin toxicity from exposure to these

       3      concentrated nicotine liquids.

       4             SENATOR HANNON:  What would people -- people

       5      arguing against this bill have said to me --

       6             It would help, I guess, if I turned the mic

       7      on.

       8             People arguing against the bill have said,

       9      Well, there's other dangerous substances in the

      10      home.  You know, Drano, or something like that.

      11             What would you -- are you getting, you know,

      12      similar types of calls about other poisons at the

      13      home; just cleaning agents, or something like that?

      14             DR. MICHAEL G. HOLLAND:  Sure.

      15             And many of those are -- have some protective

      16      packaging on them.  And they're also -- consumers

      17      know that those are toxic products, and they're

      18      kept -- through poison education, we try to make

      19      sure people keep them, you know, in locked cabinets

      20      where toddlers can't get at them.

      21             Drano and those kind of things are very

      22      toxic, understandably.

      23             But, the consumers don't understand how toxic

      24      these can be.  And they're not sold in any kind of

      25      protective packaging.







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       1             Many of them are just in colorful bottles

       2      that have a lid you unscrew and you have

       3      dropper-type things.

       4             You can even buy them online.  You can buy

       5      these things in huge quantities.  They even sell it

       6      in a 55-gallon drum.

       7             So, they can sell it by the liter, you know,

       8      because it's very cheap to buy it in bulk, and then

       9      use it in your refillable e-cigarette things.

      10             So these are not in child-proof packaging,

      11      and the consumers don't really realize how that

      12      there's lethal doses in just small amounts of these

      13      that's in their home.

      14             SENATOR HANNON:  What about the cartridges;

      15      do you get any calls about use or misuse of that?

      16             DR. MICHAEL G. HOLLAND:  The ones that are

      17      not -- that are like the blu, or the type that are

      18      not, you know, refillable, that are just

      19      single-use-type things, there haven't been very many

      20      bad outcomes or calls regarding those.

      21             Most of the calls, and the major increase, is

      22      in the these liquids that are the refillable types,

      23      the concentrated liquids.

      24             SENATOR HANNON:  Okay.

      25             Does anybody have any question?







                                                                   72
       1             Senator Hoylman.

       2             SENATOR HOYLMAN:  I just wanted to point out

       3      to Dr. Harlan, I think the reason why we're seeing a

       4      repeat of marketing with e-cigarettes, harkening

       5      back to the glory days of traditional cigarette

       6      advertising, is that a lot of the major brands are

       7      now owned by big tobacco, so they're just rolling

       8      out, you know, old campaigns with new devices.

       9             Altria, R.J. Reynolds, Lorillard, they own

      10      the brands at this point, or major portions of the

      11      big brands.

      12             Also, I would want to point out, are

      13      e-cigarette devices themselves, which I think have

      14      an allure to young people.

      15             Some of them are, you know, festooned with,

      16      you know, fake gems.  And I've seen one device that

      17      is a Hello Kitty vapor device.

      18             I would think those would be extremely

      19      attractive to young people, as well as pose a danger

      20      to children should they fall, you know, into their

      21      hands.

      22             I have a 3-year-old, and anything that has

      23      Hello Kitty on it is fair game.

      24             DR. MICHAEL G. HOLLAND:  And I think it's

      25      important to understand that nicotine is not -- most







                                                                   73
       1      of the source of the nicotine in these products is

       2      from tobacco.  That's where they get it.

       3             So, it's a place to market the crops.

       4             When you grow tobacco, you can produce

       5      nicotine and put in it these products.

       6             ANDREW HYLAND, Ph.d.:  That's a very

       7      perceptive comment.

       8             SENATOR HANNON:  Well, I thank you for coming

       9      here and laying into the record exactly all of the

      10      important knowledge and findings that you have, and

      11      I appreciate it very much.

      12             ANDREW HYLAND, Ph.d.:  Thank you.

      13             DR. MICHAEL G. HOLLAND:  Thank you.

      14             SENATOR HANNON:  Thank you.

      15             Next we want to ask Scott Wexler, who is

      16      executive director of the Empire State Restaurant

      17      and Tavern Association, and James Calvin, who's

      18      president of the New York State Association of

      19      Convenience Stores.

      20             Mr. Wexler.

      21             SCOTT WEXLER:  Good afternoon,

      22      Chairman Hannon, and members of the Senate Committee

      23      on Health.

      24             As you know, I'm Scott Wexler, and I'm here

      25      today in my capacity as the executive director of







                                                                   74
       1      the Empire State Restaurant and Tavern Association.

       2             I've been privileged to serve as the

       3      executive director of the association since 1985.

       4             The association represents thousands of

       5      small, independent, on-premise alcohol-beverage

       6      licensees who are located throughout the state, and

       7      this includes restaurants, bars, taverns, hotels,

       8      bowling centers, and other businesses that sell

       9      alcohol for on-site consumption.

      10             Thank you for the invitation to provide

      11      testimony on behalf of our members to your hearing

      12      today.

      13             As the public discussion over the use of

      14      e-cigarettes has been engaged, I've been struck by

      15      how much the public-placed vaping bans are supported

      16      by folks who base their position on the simple

      17      argument that e-cigarettes are just like cigarettes

      18      and, so, they should be treated the same.

      19             According to the sponsors' memo, the bill is

      20      advanced to further protect New Yorkers from these

      21      dangers of these unregulated devices, particularly

      22      given they have not been proven to be safe for use

      23      at any age.

      24             But our association doesn't see it this way.

      25             Our fight over smoking in bars and







                                                                   75
       1      restaurants was principally over economic concerns.

       2      Our members feared the business losses they would

       3      suffer if smoking was banned.

       4             Those fears were, for the most part,

       5      unrealized.

       6             There was a short-term dip in overall

       7      restaurant and bar sales following the ban that was

       8      disproportionately felt by a small segment of the

       9      industry.

      10             Unfortunately, they were our members, the

      11      small bars and taverns, with the overwhelming

      12      majority of businesses having no impact, or even

      13      seeing an increase in sales after the smoking ban.

      14             But even our members saw their businesses

      15      stabilize and grow after a transition period.

      16             So this history informs us not to be

      17      concerned about any impact on business from a

      18      public-placed vaping ban.

      19             We object to this bill because of its assault

      20      on our members' ability to run their businesses as

      21      they please.

      22             This is not about our concern about the loss

      23      of business.

      24             The association sees this as another attempt

      25      by government to dictate how New Yorkers run their







                                                                   76
       1      businesses and live their lives, adding cost to the

       2      bottom line and eroding their freedom to operate the

       3      businesses as they desire, and we don't see any

       4      evidence that justifies such an intrusive

       5      imposition.

       6             The Food and Drug Administration recently

       7      proposed a federal regulatory framework for

       8      e-cigarettes, and they issued a call for the

       9      submission of scientific information on e-cigarettes

      10      so they can assess the product more fully.

      11             Some public-health advocates have taken note

      12      of smokers using e-cigarettes to reduce or eliminate

      13      their tobacco smoking.

      14             They note that e-cigarettes have been

      15      demonstrated to be as effective a smoke-cessation

      16      devices as nicotine gum or the nicotine patch, but,

      17      they may be more helpful for smokers, given the

      18      similarities with smoking tobacco cigarettes, and

      19      that any use of e-cigarettes, rather than tobacco

      20      cigarettes, is positive, even if the smoker doesn't

      21      quit smoking.

      22             We believe the FDA is the appropriate agency

      23      to review the science and make any determinations

      24      about the safety or health risks associated with

      25      using e-cigarettes, and to then let those findings







                                                                   77
       1      guide the regulation.

       2             Once the FDA makes these findings,

       3      New York State can consider a public-placed vaping

       4      ban in the context of these expert findings.

       5             If the FDA determines there is significant

       6      harm to those who use e-cigarettes and/or those

       7      around them, there will be a consensus to advance a

       8      public-placed vaping ban, or something similar.

       9             But there's no reason to prejudge the outcome

      10      of the research and to jump to the conclusion that

      11      e-cigarettes are an equivalent public-health risk as

      12      tobacco smoke and enact this public-placed vaping

      13      ban.

      14             Don't take it from me.

      15             The FDA's regulatory notice acknowledges that

      16      emerging technologies, such as e-cigarettes, may

      17      have the potential to reduce the death and disease

      18      toll from overall tobacco-product use, depending on

      19      who uses the products and how they are used.

      20             According to the notice, if such products

      21      result in minimal initiation by children and

      22      adolescents while significant numbers of smokers

      23      quit, then there is a potential for the net impact

      24      at the population level to be positive.

      25             We hope the New York State Senate has a high







                                                                   78
       1      bar for infringing on the rights of its citizens,

       2      and that this imposition on the right to manage your

       3      business with little evidence of public need falls

       4      short.

       5             Thank you again for permitting to us share

       6      our association's comments.

       7             I look forward to continuing to work with you

       8      on this, and other subjects.

       9             SENATOR HANNON:  Senator Thompson wanted to

      10      ask Mr. Wexler a question.

      11             Senator Thompson.

      12             SENATOR HASSELL-THOMPSON:  Thank you.

      13             Thank you, Mr. Wexler.

      14             I had a meeting, but I stayed specifically

      15      because I had read your testimony very quickly, and

      16      I just wanted to direct a couple of questions and

      17      concerns.

      18             I notice that you first said that your

      19      concern, initially, about smoking in public was an

      20      economic one.

      21             But now you've gone on beyond the economics

      22      when you've seen that there are no negative economic

      23      impacts to your businesses, to make a statement that

      24      really is not in your purview.

      25             And I say that because, one of the big







                                                                   79
       1      concerns, I remember having lunch in a restaurant in

       2      New York City, and I was introduced to the manager.

       3      And he recognized that I was one of the Senators who

       4      had voted very positively yes to ban public smoking.

       5      And he began to tell me, for close to an hour, about

       6      the impact on his business.

       7             And part of what I shared with him was, that

       8      there might be some fall-off in the beginning, but

       9      you will see an increase because many people don't

      10      come to your restaurant because you do allow

      11      smoking.  And, very shortly, you will see an

      12      increase.

      13             As you have rightly said, that did happen.

      14             That doesn't make me a prophet.  It just

      15      makes me understand a little bit about human nature.

      16             And as someone is in the health field, my

      17      concern, when we passed this bill, was not

      18      necessarily to regulate what smokers do or don't do.

      19             It is what your workers in your restaurants,

      20      the impact on them.

      21             One of the things that we're all aware of is

      22      how long it takes the FDA to come up with a

      23      determination and a decision and a finding.

      24             And in many of the cases, we have found, that

      25      in the process of waiting for the FDA's







                                                                   80
       1      deliberations, which is appropriate, perhaps, more

       2      and more people are being impacted, and particularly

       3      the public.

       4             We have to be concerned about the public.

       5             We have to be concerned about every aspect of

       6      the public; the smokers and the nonsmokers.

       7             As somebody who smoked for 25 years,

       8      I believed all those ads.

       9             I believed, when I moved from smoking --

      10      I never smoked Marlboros, but I did smoke one of

      11      the strongest cigarettes on the market.  And when

      12      they put a filter on it, I thought that I was being

      13      safe.

      14             Well, we found that, I was not only being

      15      safe, it was more deleterious to my health than

      16      smoking without the filter.

      17             I mean, these are things that take all of us

      18      a long time to get to.

      19             I appreciate the fact that Senator Hannon has

      20      been very proactive in saying we can't afford, with

      21      the numbers of children and young people who are

      22      being initiated into smoking, because it's now sexy

      23      and presumably safe, while we wait for the FDA.

      24             So I'm here to ask you:  How do you see us as

      25      interfering with the ability of businesses to run







                                                                   81
       1      their business as they do, without our concern

       2      being, foremost, about your employers -- employees,

       3      as we wait for the FDA?

       4             SCOTT WEXLER:  Senator, thank you.

       5             I don't disagree with you that the concern

       6      about the safety of any product that would be used

       7      or people would be exposed to in a restaurant goes

       8      well beyond the smokers and the nonsmokers.

       9             And I certainly accept your premise that we

      10      have to be concerned about the impact on our

      11      employees, as well as others who might be in the

      12      public place.

      13             But the difference between the conversation

      14      back then about secondhand smoke was, the evidence

      15      was clear, and, in fact it had been clear for years,

      16      that exposure to secondhand tobacco smoke was

      17      dangerous.

      18             We may disagree, but --

      19             And Senator Hannon and I clearly disagree,

      20      and we've had this disagreement politely and

      21      professionally.

      22             -- our association does not believe that

      23      there's a similar predicate of information about

      24      exposure to e-cigarettes being dangerous for our

      25      employees or others who might be in our restaurants.







                                                                   82
       1             If the evidence were clear, then we would

       2      agree with you that you shouldn't wait for the FDA.

       3             But the FDA themselves have said they have

       4      to -- the evidence isn't clear, and they want to

       5      receive the information.

       6             And we think that's a good position to take.

       7             SENATOR HASSELL-THOMPSON:  We don't disagree

       8      with you in that aspect.

       9             I think problematic for me, however, is that,

      10      are you prepared for a lawsuit when the vapes

      11      perhaps are -- if the FDA approves the fact that

      12      these vapes have the same impact as secondhand

      13      smoke?

      14             SCOTT WEXLER:  Senator, I'm not an attorney,

      15      and I didn't come here this afternoon to theorize of

      16      what the litigation strategies might be.

      17             But I suppose that our members, like

      18      everything else in their business, litigation is one

      19      of those things that they might be exposed to.

      20             If they thought about all the things that

      21      could go wrong in their business, they probably

      22      wouldn't put the key in the door every morning.

      23             I do take your point.  I think you make an

      24      important point.

      25             I believe our members disagree with your







                                                                   83
       1      position.

       2             SENATOR HASSELL-THOMPSON:  Okay.

       3             Thank you, Mr. Wexler.

       4             SCOTT WEXLER:  Certainly.

       5             SENATOR HANNON:  Now, Mr. Calvin, we have

       6      some questions of both of you afterwards, but

       7      I thought I'd let you say that.

       8             We're -- all Senators are trying to be

       9      two places at once this morning.

      10             JAMES CALVIN:  I appreciate that.

      11             SENATOR HANNON:  Jim.

      12             JAMES CALVIN:  Mr. Chairman and honorable

      13      members of the Committee --

      14             SENATOR HANNON:  By the way, your submitted

      15      testimony says "Continued"?

      16                  [Laughter.]

      17             JAMES CALVIN:  Yes, I'm coming back tomorrow

      18      with the other half.

      19                  [Laughter.]

      20             SENATOR HANNON:  As long as you have it.

      21             JAMES CALVIN:  Well, let me at least present

      22      the first half.

      23             Thank you, Mr. Chairman.

      24             The New York Association of Convenience

      25      Stores is a statewide trade organization







                                                                   84
       1      representing 8,000 neighborhood mini marts, bodegas,

       2      and convenience stores, the majority of which are

       3      licensed by the State of New York to responsibly

       4      sell tobacco products to adult customers.

       5             Many of them also sell electronic cigarettes.

       6      A smaller number sell e-liquids.

       7             NYACS was one of the first entities to be

       8      approved by the New York State Department of Health

       9      as a provider of certified tobacco-sales training

      10      under legislation authored by Senator Hannon.

      11             I have personally trained over 7,000 retail

      12      clerks and cashiers in the proper procedures for

      13      preventing underaged sales in accordance with that

      14      state law.

      15             I'm proud to say that this type of training,

      16      along with effective compliance enforcement by the

      17      state and county health departments, and voluntary

      18      good-faith efforts by responsible retailers, has

      19      helped drive up New York's compliance rate, from

      20      80 percent 15 years ago, to 95 percent today.

      21             And every day, all of us, of course, are

      22      striving to further improve that number.

      23             We'd like to commend you, Senator Hannon, for

      24      your principal leadership in the arena of

      25      public-health policy, in general; and tobacco







                                                                   85
       1      policy, in particular.

       2             We occasionally agree, obviously; we

       3      occasionally disagree, obviously; but you've always

       4      been thoughtful and forthcoming and respectful of

       5      the retail industry's point of view.

       6             New York State and New York City were among

       7      the first jurisdictions in the nation to forbid

       8      smoking in bars, restaurants, places of employment,

       9      and other indoor areas.

      10             They did so because the public-health

      11      advocates insisted that exposure to secondhand

      12      cigarette smoke could kill nonsmokers.

      13             Well, private industry responded by inventing

      14      a battery-operated nicotine-delivery system that

      15      smokers could use in such places without exposing

      16      others to secondhand smoke; the electronic

      17      cigarette.

      18             Now, some New Yorkers have responded to the

      19      advent of e-cigarettes the way they might react to

      20      seeing a spider on their kitchen floor, "quick,

      21      stomp on it," without knowing whether it's really a

      22      threat to their safety, and without regard for any

      23      beneficial impact it may have.

      24             Truth be told, the jury is still out on the

      25      degree to which e-cigarettes are a smoking-cessation







                                                                   86
       1      tool, a public-health threat, or some combination of

       2      the two.

       3             The FDA has officially begun sorting that out

       4      in an orderly fashion, undertaking the scientific

       5      analysis necessary to objectively define benefits

       6      and risks, and then properly balance them through

       7      regulation.

       8             Consistent with our commitment to preventing

       9      youth access to tobacco-related products, NYACS is

      10      on record supporting Senator Hannon's bill, S-7027A,

      11      prohibiting sale liquid nicotine to minors, and

      12      requiring such products to display ingredients and a

      13      warning label, and requiring the containers to be

      14      child-proof.

      15             We have also endorsed another Hannon bill,

      16      7139, to require standalone vaping shops to register

      17      with the State, and undergo periodic undercover

      18      compliance inspections just like retail tobacco

      19      dealers do.

      20             But in our view, outlawing the sale of liquid

      21      nicotine to adult customers under any circumstances,

      22      as proposed in S-6939A, and, completely banning

      23      e-cigarette use wherever smoking is banned, as

      24      proposed in S-6562, would be premature at best.

      25             Why squish a product category that, for many







                                                                   87
       1      smokers, has already become the long-awaited viable

       2      solution to quitting combustible cigarettes?

       3             Why leapfrog the FDA by enacting an

       4      e-cigarette-use ban based on conjecture that may or

       5      may not conform to what the FDA ultimately deems

       6      appropriate based on science.

       7             If there are suddenly fewer places that you

       8      can use an e-cigarette, will the transition from

       9      combustibles to vaping be retarded, or even

      10      reversed?

      11             And is that in the long-term interest of

      12      public health?

      13             Before you stomp on that spider, we

      14      respectfully implore you to first let the FDA

      15      determine whether that's a black widow scurrying

      16      across the floor, or a species that can help achieve

      17      the public-health objective of further reducing

      18      tobacco-related illness and death.

      19             I also add that there are many others in the

      20      e-cigarette industry that -- who would have liked to

      21      have testified today.

      22             One of them is Dr. Richard Carmona, a former

      23      surgeon general of the United States, and native

      24      New Yorker, who has joined the board of an

      25      e-cigarette company called "NJOY."







                                                                   88
       1             He authored the 2006 Surgeon General's Report

       2      declaring secondhand smoke a serious public-health

       3      hazard.

       4             He is far more knowledgable and articulate

       5      and credible on this subject than I, and I urge you

       6      in strongest forms to read the written comments he

       7      prepared for this hearing, which I have submitted to

       8      the staff.

       9             Thank you.

      10             SENATOR HANNON:  Thank you.

      11             Questions?

      12             Senator Savino.

      13             SENATOR SAVINO:  Thank you, Senator Hannon.

      14             Thank you, gentlemen, for your testimony.

      15             Unfortunately, I had to leave before, and

      16      I didn't get to hear some of the other testifiers.

      17             I find myself in an odd position, because

      18      I am probably one of the most obnoxious ex-smokers

      19      you've ever met.

      20             I also understand the lure of cigarettes,

      21      though, and how dangerous they can be.

      22             When I started smoking, I was 12.  I could

      23      walk into any convenience store that were a member

      24      of your organization, and I would could buy

      25      cigarettes for myself and my mother and my father.







                                                                   89
       1             You know, you could smoke anywhere.

       2             You could smoke in a hospital.  You could

       3      smoke in a doctor's office.

       4             You could smoke in the -- you could smoke

       5      any -- it's the culture of where we were.

       6             Restaurants and bars.

       7             And when I quit smoking the first time, at

       8      the age of 30 -- everyone can go figure out how old

       9      I was -- how long ago that was -- they were just

      10      beginning to crack down on indoor smoking in

      11      offices.

      12             And, again, for 12 years, I was -- no, 13,

      13      I was an obnoxious ex-smoker.

      14             And then when I went back to smoking, I was a

      15      very avid smoker for a short period of time.

      16             So I know how dangerous cigarettes are.

      17             I used the e-cigarette once or twice, but

      18      I quit the old-fashioned way, the second time.

      19             What I'm concerned about, though, because

      20      I -- again, I find myself in an odd spot.

      21             I think we should do everything possible to

      22      prevent people from getting access to nicotine

      23      products that will allow them to become addicted to

      24      something that I will be addicted to for the rest of

      25      my life.







                                                                   90
       1             So I support the idea of preventing people

       2      from buying e-cigarettes before the age of, I think,

       3      21.  I think 18 is still too young.  I think we

       4      should move cigarettes to 21.

       5             And we should be consistent across the state

       6      on that.

       7             I don't think we should allow people to buy

       8      the liquid stuff and recharge it.

       9             But I look at the e-cigarette, and I see that

      10      we don't have the evidence that the surgeon general

      11      has produced for secondhand smoke; that evidence

      12      that took decades to really produce, to show the

      13      effects of secondhand smoke.

      14             And that's what led to the indoor smoking

      15      ban.

      16             I look at restaurants and bars now.

      17             They're certainly much nicer.  You know, you

      18      don't walk out of there stinking.

      19             But then I look at what's outside the door,

      20      and that's where smokers go, and they stand in front

      21      and they smoke.

      22             Go outside any major, you know, office

      23      building in Manhattan.

      24             And, we're concerned about the effects of

      25      secondhand smoke; and, yet, every one of us walks







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       1      through a cloud of it to get in and out of buildings

       2      or out of bars and restaurants.

       3             And so I wonder, if we do this, if we

       4      restrict them, or cover them by the indoor smoking

       5      ban, will they be standing outside your restaurants

       6      and bars smoking their e-cigarette, and how long

       7      before they go back to smoking real cigarettes?

       8             SENATOR HANNON:  That is a question?

       9             SENATOR SAVINO:  No.

      10             I'm just -- how -- so you look at -- you look

      11      at -- we have the science, scientists, but then we

      12      have the people who are going to have to enforce it;

      13      and that's our bars and restaurants, that's our

      14      convenience stores, that's our other retailers, who

      15      are going to have to be responsible for enforcing

      16      this.

      17             And I'm curious as to whether or not you feel

      18      that this would be an additional burden on you, and

      19      how you're going to enforce it consistent with what

      20      we do with regular cigarettes now.

      21             I know it was a long question, but I got

      22      there to the end.

      23             SCOTT WEXLER:  It was a good question,

      24      Senator Hannon.

      25             Thank you, Senator Savino.







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       1             I think that managing the use of an

       2      e-cigarette in a restaurant or a bar is no different

       3      than any of the other challenges that you have.

       4             By the way, we support the owner of a

       5      restaurant or a bar deciding the best way to solve

       6      the problem is to ban it completely.  That's their

       7      privilege.

       8             But we see exactly the scene in front of our

       9      establishments, people leaving their drinks, going

      10      outside.

      11             In some urban locations, we have issues with

      12      noise, from the neighbors, from people gathering

      13      outside.

      14             And while there's a lot of concern about our

      15      employees who might be exposed to secondhand smoke,

      16      e-cigarettes is a product that we are now seeing

      17      some of our employees starting to use.

      18             Instead of going out for a 15-minute

      19      cigarette break when you're working behind the bar

      20      or on the dining room floor, you can step into a

      21      side space, have a puff or two, as you've

      22      experienced with the e-cigarette, and go on.

      23             So unless and until we see that information

      24      that's out there that would support something

      25      more --a broader ban, we really do believe that you







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       1      ought to let us try to sort it out.

       2             We'll probably sort it out reasonably well,

       3      because having our customers happy is what we do.

       4      We're in the hospitality business.

       5             SENATOR SAVINO:  The City of New York

       6      recently adopted adding e-cigarettes to the indoor

       7      smoking ban.

       8             Has -- how has that worked out so far in

       9      terms of enforcement?

      10             SCOTT WEXLER:  It's really pretty new.

      11             And from talking to our folks down there,

      12      they're just beginning to have the experience.  And

      13      I think we really need to take some time.

      14             I will say that, when we look at the

      15      cigarettes, one of the reasons that we don't see it

      16      as an economic loss, is that it's not like -- as

      17      Mr. Calvin was saying, it's not like a large portion

      18      of the community is engaged in this behavior, or a

      19      large portion of our patrons were.

      20             You know, when the City and State and

      21      localities were regulating smoking in bars and

      22      restaurants, there were a lot of our customers who

      23      were smoking, and we had to referee that.

      24             I actually think we are aware of very few of

      25      our customers who are engaging in e-smoking because







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       1      it's not an obtrusive behavior.  It's not something

       2      that you have to do and be very demonstrative about

       3      it.  It's something you do fairly quietly, and to

       4      yourself.

       5             SENATOR HANNON:  Senator Golden.

       6             SENATOR GOLDEN:  Thank you, Mr. Chairman.

       7             And thank you, gentlemen, for being here

       8      today.

       9             I'm one that would like to err on the side of

      10      caution and make sure that we have all the

      11      information that is needed and required.

      12             But I do believe Senator Hannon has some good

      13      bills that we should probably move forward.

      14             There's a difference, obviously, between a

      15      liquid and cartridge, that's still to be determined

      16      as to health risk.

      17             But we've noticed that, on the liquid form,

      18      they're [unintelligible] using nicotine, but they

      19      use liquid hashish, they will use different types of

      20      narcotics.  It's becoming the new fad for their new

      21      hashish pipe, in certain areas.

      22             As far as enforcement, enforcement in the

      23      restaurants is -- it's very good.  Now there's

      24      plenty of enforcement in the restaurants.

      25             The enforcement that's lacking is in the







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       1      actual sale of the cigarettes and the actual sale of

       2      the products, and, there is no enforcement.

       3             The enforcement across the state of New York

       4      is to about 17 people.

       5             And I think we have two or three agents in

       6      all of the city of New York.

       7             Everybody knows that nothing happens between

       8      or after, before 9:00 in the morning and after

       9      5:00 at night on Monday to Friday, so there is no

      10      enforcement whatsoever.

      11             And the estimates out there are, 6 in 10 on

      12      the cartons of cigarettes being sold in the city of

      13      New York and across the state of New York are from

      14      outside the state of New York, and are with bad

      15      stamps, and that it's costing the state of New York

      16      somewhere in the category of about $2 billion a year

      17      in untaxed cigarettes that are being sold in these

      18      locations across the city and the state.

      19             So that's one of our biggest problems, is

      20      going to be enforcement.  Being able to get that

      21      $2 billion back that's being lost in the state, but

      22      making sure the regulations work across the state of

      23      New York, and that there are enough people going in

      24      and throughout the delicatessens, bodegas.  These

      25      are even being sold in supermarkets and in







                                                                   96
       1      drugstores and our chain stores, are illegal

       2      cigarettes being sold.

       3             I mean, it's really something that the

       4      State of New York has to get more serious about.

       5             And I think we got to be very, very cautious

       6      about placing this type of product in the store

       7      where there is no regulations or limited regulation.

       8             So mine is more of a statement.

       9             You can respond to it, but that's a -- I'm a

      10      pro-business guy, but there has to be some form of

      11      regulation.  And I don't see any regulation in this

      12      city, in this state.

      13             JAMES CALVIN:  Thank you, Senator Golden.

      14             One of our concerns about the proposed

      15      prohibition of the sale of e-liquids, is that

      16      experience has proven, time and again, that in

      17      New York, when you attempt to ban or overtax a

      18      tobacco-related product, the customers stop coming

      19      to our stores to buy it, but they find a way to get

      20      it, from neighboring states, from the Internet, from

      21      Native American tribal stores, all of which are free

      22      from the encumbrances of New York State regulation

      23      and taxation.

      24             So, we lose the sale, but there's still

      25      consumption going on.







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       1             And that's one of our biggest concerns about

       2      on outright ban on the e-liquid product.

       3             We think it would be far better to impose the

       4      child-proofing provision, make sure that all retail

       5      outlets are registered, make sure there's proper

       6      labeling on the e-liquids, and so forth.

       7             We hope you'll decide to stop short of an

       8      outright ban, because what that will do is create a

       9      black market for the product.

      10             SENATOR GOLDEN:  I believe you have good

      11      actors and bad actors out there in all fields, in

      12      all industries, but there are definitely many more

      13      bad actors in your field when it comes to

      14      cigarettes.

      15             And I'm being, not facetious, but I'm being

      16      totally honest.

      17             There's a tremendous amount of untaxed

      18      cigarettes being sold by members of your

      19      organization.  And it's sad that the State has

      20      allowed this to get as far as it has.

      21             I notice when a task force has been created

      22      that has yet to meet, and I believe that we need to

      23      deal with that issue before we put any type of these

      24      e-cigarettes into sale into these locations.

      25             JAMES CALVIN:  Senator, I'm going to







                                                                   98
       1      respectfully object to the comment that members of

       2      my association selling are illegal cigarettes or

       3      illegally trafficking in cigarettes.

       4             That is not the case.

       5             And I defy you to show me a single one of our

       6      members of the New York Association of Convenience

       7      Stores that are selling cigarettes illegally.

       8             SENATOR GOLDEN:  You do not want to challenge

       9      me today.

      10             JAMES CALVIN:  I just did.

      11             SENATOR HANNON:  Well, we'll let that be

      12      settled.

      13             I'm going to call this to an end.

      14             I would suggest you gentlemen, and anybody

      15      else who's raised this, about the questions about

      16      the efficacy of e-cigarettes for withdrawal, and the

      17      effect of e-cigarettes on secondhand smoke, that

      18      they go back and read carefully the testimony

      19      presented this morning, especially the testimony by

      20      Dr. Hyland from Roswell, Dr. Eisenstein from

      21      NYSACHO, and the very well-documented testimony from

      22      the Department of Health.

      23             It does not support the conclusions that you

      24      have said.

      25             Let me also, just one more comment about the







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       1      FDA.

       2             Probably, in the last few years, I've had

       3      more experience with the FDA than anybody else in

       4      the Legislature because of different proposals in

       5      regard to different ingredients, but also because of

       6      something that I got into sponsoring, which was

       7      calories on menu labeling.

       8             And I had the statewide bill.

       9             And I had the statewide bill because

      10      localities started to enact their own statutes,

      11      which then led people to say we have to have some

      12      uniformity, which was very difficult to write a

      13      statewide bill, because there were such disparate

      14      elements of each of the laws.

      15             And now we find the same thing happening with

      16      e-cigarettes, New York, [unintelligible], people are

      17      doing that.

      18             So you're going to at some point say, Well,

      19      wait a minute.  We need a statewide bill.

      20             But here's what happened to me on the menu

      21      calories:

      22             The industry -- the food industry said, Oh,

      23      well, it's going to happen in the Affordable Care

      24      Act.  It's going to be a separate title.  It will be

      25      passed.







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       1             And it was passed.

       2             That was four years ago.

       3             To date, the FDA has been unable to issue the

       4      regulations.

       5             It was very clear what was being done.

       6             It was very clear what they had to do.

       7             They've been unable to do it.

       8             I'm afraid waiting for the FDA is like

       9      waiting for [unintelligible].  Maybe it never comes.

      10             So, by the way, a piece of -- some details

      11      I really need to say is, for the people who have

      12      submitted written testimony, and I just want that to

      13      be noted to go on the record:

      14             NJOY, with the testimony of Richard Carmona,

      15      the former associated surgeon general, you had

      16      mentioned, Mr. Calvin;

      17             Lorillard Tobacco; Altria Tobacco;

      18      American Council on Science and Health; "NATO,"

      19      which is National Association of Tobacco Outlets;

      20             And, an extensive memo that my staff did when

      21      they met with Ms. Spike Babaian, in regard to what

      22      she felt the rights of vapor sellers were.

      23             So, all of those are going to be part of the

      24      record, and we will be doing a report in due course,

      25      but, we'll also see how this affects the legislation







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       1      that's pending.

       2             I thank you very much.

       3             The hearing is now over.

       4

       5                  (Whereupon, at approximately 12:45 p.m.,

       6        the public hearing held before the New York State

       7        Senate Standing Committee on Health concluded, and

       8        adjourned.)

       9                            ---oOo---

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