CA SB395

Imposes a 12.5% excise tax on retail purchases of electronic cigarettes effective July 1, 2022, to be collected by retailers at point of sale.

Creates the California Electronic Cigarette Excise Tax Fund with continuous appropriation of revenues distributed to: Health Education Account (18%), California Children and Families Trust Fund (12%), Proposition 56 Medi-Cal Physicians and Dentists Loan Repayment Act (48%), Health Professions Career Opportunity Program (5%), UC medical education program in San Joaquin Valley (7%), and Small and Rural Hospital Relief Fund (10%).

Establishes the Small and Rural Hospital Relief Program to provide grants to small hospitals, rural hospitals, and critical access hospitals for seismic safety compliance when financial burden may result in hospital closure.

Authorizes the Department of Health Care Access and Information to contract with nonprofit entities to administer the Health Professions Career Opportunity Program aimed at building a diverse healthcare provider workforce.

Provides a $3 million General Fund loan during fiscal year 2021-22 to implement the excise tax, to be repaid by June 30, 2023 from collected tax revenues.