With the election behind us, we would like to take this time to reflect on the decisions that have been made. No, we are not talking about the candidates or the winner of said election. We want to discuss the decision that was made to effect all of us in the vaping industry: Prop 56.
Proposition 56 is said to generated up to $1.4 billion in tax revenue its first year. Due to the passing of Prop 98 passing in 1988, there is a guarantee that a certain percentage of new tax increases go to school funding. HOWEVER, Prop 56 makes sure to work its way around such a cause by stating in § 30130.53 and SEC. 23 that funds shall only go to a specified purpose and not to the General Fund. If Prop 56 was really for the people, why would they want to guarantee that no money goes to improving a child’s education?
One of the biggest key points that was made to get voters to say yes on Prop 56 was to prevent our youth from smoking; that is not the true intention of Prop 56. If you read § 30130.55 of Prop 56, it clearly states that only 13% of the revenue will be used to fund tobacco prevention and control programs. While 5% will go to the University of California for medical research, 82% of revenue will be used to increase “funding for already existing healthcare programs”, yet in §30130.55 Section A, it clearly states it will fund them by providing improved payments. Where exactly in there does it show th need to ensure the youth don’t pick up smoking? Oh, right. The thirteen percent…. While 82% goes to providing higher salaries. We are glad to know where the real concern lies.
Another key point made was that Prop 56 contains “tough transparency and accountability measures”. This states that there is a built-in safeguard providing a strict cap on overhead spending and administrative costs. We find that quite interesting because if you look yet again at § 30130.56 (a) and (f), it is made apparent that $147 million goes straight to overhead and administration.
Here is what we have learned about Prop 56:
- Zero of the revenue will go to school funding
- Preventing our youth from smoking is important, but not as important as providing a bigger paycheck.
- The amount of money going to overhead and administration is almost as much as what they will spend on their tobacco prevention efforts.
If you are interested in reading more about what else is to come from the passing of Prop 56, go over to: http://www.noonproposition56.com/read-prop-56/
On the bright side, there is a company who has brought on a team of scientists to fight against cancer. They are looking to improve the technology used with e-cigarettes to help reduce any risk of disease. I’m sorry, what company did you ask is behind this? Oh. Well, it is actually Philip Morris International Inc. That name may not sound familiar. You probably know them as the founders of Marlboro. (Source: ECig Advanced)
Yes, Marlboro is making more of an impact when it comes to ensuring a healthier future, while the state of California is now ensuring that insurance companies receive higher paychecks.
Way to go, California.