Amended IN Assembly March 28, 2025 CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Assembly Bill No. 573Introduced by Assembly Member RogersFebruary 12, 2025An act to amend Section Sections 22973.3 of and 22978.3 of, to add and repeal Section 22973.4 of, and to repeal Section 22974.1 of, the Business and Professions Code, relating to tobacco. LEGISLATIVE COUNSEL'S DIGESTAB 573, as amended, Rogers. Tobacco: licenses. Cigarette and tobacco products: licensing and enforcement.The Cigarette and Tobacco Products Licensing Act of 2003 requires the California Department of Tax and Fee Administration to administer a statewide program to license manufacturers, distributers, and retailers of cigarettes and tobacco products. The act requires a retailer who sells tobacco products that are exempt from taxation under the Cigarette and Tobacco Products Tax Law to pay a fee of $265 for the issuance or renewal of a license.This bill would instead require a retailer to pay a fee to cover the reasonable regulatory costs of the department, not to exceed $600, for the issuance or renewal of a license to sell those tobacco products. The bill would require the Legislative Analyst, on or before December 1, 2027, and again on or before December 1, 2029, in collaboration with specified agencies, to prepare and submit reports to the Legislature on the adequacy of funding for the tobacco retailer licensing program and the rate of inspection of retailers. The bill would repeal those reporting requirements on January 1, 2034.Chapter 849 of the Statutes of 2024 (AB 3218) revised the Cigarette and Tobacco Products Licensing Act of 2003 by, among other things, authorizing the department or a law enforcement agency to seize illegal flavored tobacco products or tobacco product flavor enhancers that a wholesaler or retailer possesses, stores, owns, or sold, as specified. Existing law further requires the department to impose on the wholesaler or retailer a specified civil penalty per individual package of flavored tobacco product or tobacco product flavor enhancer. Existing law defines package for purposes of the penalty provision applicable to retailers.This bill would add the same definition of package for purposes of the penalty provision applicable to wholesalers.Chapter 462 of the Statutes of 2024 (SB 1230), among other things, added a provision to the Cigarette and Tobacco Products Licensing Act of 2003 similar to the above-described provision relating to the seizure of a retailers products added by AB 3218. Specifically, SB 1230 authorizes the department to seize illegal flavored tobacco products or tobacco product flavor enhancers if the department discovers that a retailer sells, offers for sale, or possesses with the intent to sell or offer for sale, those products, and deems the seized products as forfeited.This bill would repeal the above-described provision added by SB 1230.Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.This bill would make legislative findings to that effect.Existing law requires a retailer to maintain and have in place a license to engage in the sale of cigarettes or tobacco products. Existing law requires the retailer to obtain a separate license for each retail location and display the license in a manner visible to the public. Existing law requires the retailer to submit a fee of $265 with their application for a license.This bill would make technical, nonsubstantive changes to those provisions.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NOYES Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. The Legislature finds and declares all of the following:(a) As state agencies ramp up efforts to enforce Californias flavored tobacco laws, the scale and frequency of enforcement activities is critical. As of September 2024, prohibited flavored e-cigarettes comprised 39.8 percent of total e-cigarette sales in California.(b) While the proportion of California youth and young adult tobacco users who report that it is easy to access flavored tobacco products in retail stores has declined since implementation of the ban, over 70 percent still believe it is easy to access these products. Nearly 90 percent of California high school e-cigarette users report using flavored e-cigarettes.(c) In 2024, California tobacco retailers still sold tobacco to underage buyers at a rate of 18.9 percent. Regular compliance inspections are proven to reduce youth access to tobacco products.(d) The California Department of Tax and Fee Administration (CDTFA) issues, administers, and enforces the states tobacco retailer license program. There are about 30,000 licensed tobacco retailers in California.(e) The fee for the tobacco retailer license is $265 per year. This fee is unchanged since 2016. The passage of Californias law banning the sale of most flavored tobacco products resulted in a significant increase in seizure costs that have drastically affected the total number of inspections the CDTFA is able to complete.(f) Currently the CDTFA inspects fewer than 15 percent of the retailers annually and violations have risen, since passage of the ban on sale of flavored tobacco products, from 2 percent of retailers inspected to 14 percent. This means that retailers are only likely to be inspected once every eight years, while violations are on the rise.(g) Increasing the tobacco retailer fee would ensure that more retailers are inspected annually by the CDTFA and would bolster compliance with the state flavored tobacco licensing and tax laws, and the Stop Tobacco Access to Kids Enforcement Act.SECTION 1.SEC. 2. Section 22973.3 of the Business and Professions Code is amended to read:22973.3. (a) Notwithstanding any other law, an application for a license for the sale of a tobacco product, as defined in subdivision (d) of Section 22950.5, that is not subject to a tax imposed by the Cigarette and Tobacco Products Tax Law pursuant to Part 13 (commencing with Section 30001) of Division 2 of the Revenue and Taxation Code shall be filed on a form prescribed by the board and shall include the following:(1) The name, address, and telephone number of the applicant.(2) The business name, address, and telephone number of each retail location. For applicants who control more than one retail location, an address for receipt of correspondence or notices from the board, such as a headquarters or corporate office of the retailer, shall also be included on the application and listed on the license. Citations issued to licensees shall be forwarded to all addressees on the license.(3) A statement by the applicant affirming that the applicant has not been convicted of a felony and has not violated and will not violate or cause or permit to be violated any of the provisions of this division or any rule of the board applicable to the applicant or pertaining to the manufacture, sale, or distribution of cigarettes or tobacco products. If the applicant is unable to affirm this statement, the application shall contain a statement by the applicant of the nature of any violation or the reasons that will prevent the applicant from complying with the requirements with respect to the statement.(4) If any other licenses or permits have been issued by the board or the Department of Alcoholic Beverage Control to the applicant, the license or permit number of those licenses or permits then in effect.(5) A statement by the applicant that the contents of the application are complete, true, and correct. Any person who signs a statement pursuant to this subdivision that asserts the truth of any material matter that they know to be false is guilty of a misdemeanor punishable by imprisonment of up to one year in a county jail, or a fine of not more than one thousand dollars ($1,000), or both the imprisonment and the fine.(6) The signature of the applicant.(7) Any other information the board may require.(b) The board may investigate to determine the truthfulness and completeness of the information provided in the application. The board may issue a license without further investigation to an applicant for a retail location if the applicant holds a valid license from the Department of Alcoholic Beverage Control for that same location.(c) The board shall provide electronic means for applicants to download and submit applications.(d) A fee of two hundred sixty-five dollars ($265) to cover the reasonable regulatory costs of the board, not to exceed six hundred dollars ($600), as provided by the board by regulation, shall be submitted with each application. application for the issuance or renewal of a license. An applicant that owns or controls more than one retail location shall obtain a separate license and shall pay a separate fee for each retail location, but may submit a single application for those licenses with an application license fee of two hundred sixty-five dollars ($265) per location. licenses. The fee shall be for the period provided in subdivision (d) of Section 22972 and shall not be prorated.(e) Every retailer shall file an application for renewal of its license, accompanied with a fee of two hundred sixty-five dollars ($265) per retail location fees specified in subdivision (d) in the form and manner prescribed by the board.(f) (1) The board shall report back to the Legislature no later than January 1, 2019, regarding the adequacy of funding for the Cigarette and Tobacco Products Licensing Act of 2003 with regard to tobacco products for which a license is required by this section. The report shall include data and recommendations about whether the annual licensing fee funding levels are set at an appropriate level to maintain an effective enforcement program.(2) The report required by paragraph (1) shall be submitted in compliance with Section 9795 of the Government Code.(g) (1) This section applies to a retailer who sells a tobacco product, as defined in subdivision (d) of Section 22950.5, that is not subject to a tax imposed by the Cigarette and Tobacco Products Tax Law pursuant to Part 13 (commencing with Section 30001) of Division 2 of the Revenue and Taxation Code, and who does not already possess a valid license to sell cigarettes or tobacco products issued pursuant to Section 22972.(2) A retailer that possesses a valid license to sell cigarettes and tobacco products issued pursuant to Section 22972 may also sell under that license a tobacco product, as defined in subdivision (d) of Section 22950.5, that is not subject to a tax imposed by the Cigarette and Tobacco Products Tax Law pursuant to Part 13 (commencing with Section 30001) of Division 2 of the Revenue and Taxation Code.SEC. 3. Section 22973.4 is added to the Business and Professions Code, to read:22973.4. (a) On or before December 1, 2027, and again on or before December 1, 2029, the Legislative Analyst, in collaboration with the California Department of Tax and Fee Administration and the State Department of Public Health, including, but not limited to, the Office of Youth Tobacco Enforcement, shall prepare and submit a report to the Legislature on the adequacy of funding for the tobacco retailer licensing program and the rate of inspection of retailers. To the extent data is available, the report shall include, but not be limited to:(1) Strategies and tools to bolster coordination and efficiency between state and federal agencies and local authorities regarding enforcement of all tobacco laws and to ensure state compliance with the federal Synar regulations requiring no more than a 20 percent retailer violation rate.(2) Data and recommendations about whether the annual licensing fees are set at appropriate levels to maintain an effective licensing and enforcement program and attain a reasonable reduction in the availability of flavored tobacco products.(3) Costs for transport, storage, and disposal of hazardous waste, universal waste, and other waste arising from seizures of tobacco products.(4) An evaluation of whether prior violations of analogous federal and local laws regarding the sale of tobacco products to minors should be considered when considering escalating penalties for violations of state laws regarding the sale of tobacco products to minors.(b) To prepare the reports required by this section, the Legislative Analyst may request information from any state or local agency involved in enforcement of laws regulating retailers.(c) The reports required by this section shall be submitted in compliance with Section 9795 of the Government Code and shall not include any personally identifiable information.(d) Pursuant to Section 10231.5 of the Government Code, this section shall become inoperative on December 1, 2033, and is repealed on January 1, 2034.SEC. 4. Section 22974.1 of the Business and Professions Code is repealed.22974.1.(a)Notwithstanding any other law, if the department discovers that a retailer, or any of the tobacco retailers agents or employees, sell, offer for sale or possess with the intent to sell or offer for sale, a flavored tobacco product or tobacco product flavor enhancer, in violation of Section 104559.5 of the Health and Safety Code, the department may seize those flavored tobacco products or tobacco product flavor enhancers at the retail location or any other persons location. Any flavored tobacco products or tobacco product flavor enhancers seized by the department shall be deemed forfeited and the department shall comply with the procedures set forth in Chapter 7.5 (commencing with Section 30435) of Part 13 of Division 2 of the Revenue and Taxation Code.(b)For purposes of this section, flavored tobacco product and tobacco product flavor enhancer shall have the same meaning as the terms are defined in Section 104559.5 of the Health and Safety Code.SEC. 5. Section 22978.3 of the Business and Professions Code is amended to read:22978.3. (a) (1) Notwithstanding any other provision of this division, upon discovery by the department or a law enforcement agency that a wholesaler possesses, stores, or owns flavored tobacco products or tobacco product flavor enhancers, or has made a sale of flavored tobacco products or tobacco product flavor enhancers in violation of Section 104559.1 of the Health and Safety Code, the department or the law enforcement agency may seize the flavored tobacco products or tobacco product flavor enhancers possessed, stored, owned, or sold by the wholesaler.(2) Any flavored tobacco products or tobacco product flavor enhancers seized by a law enforcement agency shall be delivered to the department, or its designee, within 30 days, unless the seized flavored tobacco products or tobacco product flavor enhancers will be destroyed by that law enforcement agency, or unless the seized flavored tobacco products or tobacco product flavor enhancers are otherwise required to be used as evidence in an administrative, criminal, or civil proceeding, or as part of an ongoing law enforcement operation. Any flavored tobacco products or tobacco product flavor enhancers seized by the department or delivered to the department by a law enforcement agency shall be deemed forfeited to the state and the department shall comply with procedures set forth in Chapter 7.5 (commencing with Section 30435) of Part 13 of Division 2 of the Revenue and Taxation Code.(b) (1) In addition to seizure and forfeiture of the flavored tobacco products or tobacco product flavor enhancers described in subdivision (a), the department shall impose a civil penalty upon the wholesaler equal to fifty dollars ($50) per individual package of flavored tobacco product or tobacco product flavor enhancer seized or delivered to the department by a law enforcement agency regardless of the authority used by the law enforcement agency to seize the flavored tobacco product or tobacco product flavor enhancer. The department shall impose the civil penalty in accordance with the procedures applicable to the civil penalty authorized in Section 22978.7.(2) In the case of a second seizure and forfeiture of flavored tobacco products or tobacco product flavor enhancers made pursuant to subdivision (a), the department shall suspend the license of the wholesaler in accordance with the procedures set forth in Section 22980.3.(3) In the case of a third seizure and forfeiture of flavored tobacco products or tobacco product flavor enhancers made pursuant to subdivision (a), the department shall revoke the license of the wholesaler in accordance with the procedures set forth in Section 22980.3.(4) Civil penalties collected pursuant to this section shall be deposited into the Cigarette and Tobacco Products Compliance Fund created pursuant to Section 22990.(5) For purposes of paragraph (1), package means the individual packet, box, or other container of flavored tobacco products or tobacco product flavor enhancers that are normally sold or intended to be sold at retail. Package does not include containers that contain smaller packaging units of flavored tobacco products or tobacco product flavor enhancers, including, but not limited to, cartons, cases, bales, or boxes.(c) Upon discovery by the department that a distributor, wholesaler, or other person has made a sale in violation of Section 104559.1 of the Health and Safety Code, and, for wholesalers, if neither the department nor a law enforcement agency seized flavored tobacco products or tobacco product flavor enhancers from the wholesaler pursuant to subdivision (a), all of the following shall apply:(1) Upon a first offense, the department shall issue a warning notice to the distributor, wholesaler, or other person.(2) Upon a second offense, the department shall suspend the license of the distributor, wholesaler, or person in accordance with the procedures set forth in Section 22980.3.(3) Upon a third offense, the department shall revoke the license of the distributor, wholesaler, or other person in accordance with the procedures set forth in Section 22980.3.(d) The appeals procedures applicable to Section 22978.7 shall apply to the warning notice, suspension, and revocation actions taken by the department pursuant to this section.SEC. 6. The Legislature finds and declares that Section 3 of this act, which adds Section 22973.4 to the Business and Professions Code, imposes a limitation on the publics right of access to the meetings of public bodies or the writings of public officials and agencies within the meaning of Section 3 of Article I of the California Constitution. Pursuant to that constitutional provision, the Legislature makes the following findings to demonstrate the interest protected by this limitation and the need for protecting that interest:This act strikes a balance between reporting essential information to the Legislature to ensure adequate funding for the cigarette and tobacco product retailer licensing program while protecting the privacy of individuals.
Amended IN Assembly March 28, 2025 CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Assembly Bill No. 573Introduced by Assembly Member RogersFebruary 12, 2025An act to amend Section Sections 22973.3 of and 22978.3 of, to add and repeal Section 22973.4 of, and to repeal Section 22974.1 of, the Business and Professions Code, relating to tobacco. LEGISLATIVE COUNSEL'S DIGESTAB 573, as amended, Rogers. Tobacco: licenses. Cigarette and tobacco products: licensing and enforcement.The Cigarette and Tobacco Products Licensing Act of 2003 requires the California Department of Tax and Fee Administration to administer a statewide program to license manufacturers, distributers, and retailers of cigarettes and tobacco products. The act requires a retailer who sells tobacco products that are exempt from taxation under the Cigarette and Tobacco Products Tax Law to pay a fee of $265 for the issuance or renewal of a license.This bill would instead require a retailer to pay a fee to cover the reasonable regulatory costs of the department, not to exceed $600, for the issuance or renewal of a license to sell those tobacco products. The bill would require the Legislative Analyst, on or before December 1, 2027, and again on or before December 1, 2029, in collaboration with specified agencies, to prepare and submit reports to the Legislature on the adequacy of funding for the tobacco retailer licensing program and the rate of inspection of retailers. The bill would repeal those reporting requirements on January 1, 2034.Chapter 849 of the Statutes of 2024 (AB 3218) revised the Cigarette and Tobacco Products Licensing Act of 2003 by, among other things, authorizing the department or a law enforcement agency to seize illegal flavored tobacco products or tobacco product flavor enhancers that a wholesaler or retailer possesses, stores, owns, or sold, as specified. Existing law further requires the department to impose on the wholesaler or retailer a specified civil penalty per individual package of flavored tobacco product or tobacco product flavor enhancer. Existing law defines package for purposes of the penalty provision applicable to retailers.This bill would add the same definition of package for purposes of the penalty provision applicable to wholesalers.Chapter 462 of the Statutes of 2024 (SB 1230), among other things, added a provision to the Cigarette and Tobacco Products Licensing Act of 2003 similar to the above-described provision relating to the seizure of a retailers products added by AB 3218. Specifically, SB 1230 authorizes the department to seize illegal flavored tobacco products or tobacco product flavor enhancers if the department discovers that a retailer sells, offers for sale, or possesses with the intent to sell or offer for sale, those products, and deems the seized products as forfeited.This bill would repeal the above-described provision added by SB 1230.Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.This bill would make legislative findings to that effect.Existing law requires a retailer to maintain and have in place a license to engage in the sale of cigarettes or tobacco products. Existing law requires the retailer to obtain a separate license for each retail location and display the license in a manner visible to the public. Existing law requires the retailer to submit a fee of $265 with their application for a license.This bill would make technical, nonsubstantive changes to those provisions.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NOYES Local Program: NO
Amended IN Assembly March 28, 2025
Amended IN Assembly March 28, 2025
CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION
Assembly Bill
No. 573
Introduced by Assembly Member RogersFebruary 12, 2025
Introduced by Assembly Member Rogers
February 12, 2025
An act to amend Section Sections 22973.3 of and 22978.3 of, to add and repeal Section 22973.4 of, and to repeal Section 22974.1 of, the Business and Professions Code, relating to tobacco.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
AB 573, as amended, Rogers. Tobacco: licenses. Cigarette and tobacco products: licensing and enforcement.
The Cigarette and Tobacco Products Licensing Act of 2003 requires the California Department of Tax and Fee Administration to administer a statewide program to license manufacturers, distributers, and retailers of cigarettes and tobacco products. The act requires a retailer who sells tobacco products that are exempt from taxation under the Cigarette and Tobacco Products Tax Law to pay a fee of $265 for the issuance or renewal of a license.This bill would instead require a retailer to pay a fee to cover the reasonable regulatory costs of the department, not to exceed $600, for the issuance or renewal of a license to sell those tobacco products. The bill would require the Legislative Analyst, on or before December 1, 2027, and again on or before December 1, 2029, in collaboration with specified agencies, to prepare and submit reports to the Legislature on the adequacy of funding for the tobacco retailer licensing program and the rate of inspection of retailers. The bill would repeal those reporting requirements on January 1, 2034.Chapter 849 of the Statutes of 2024 (AB 3218) revised the Cigarette and Tobacco Products Licensing Act of 2003 by, among other things, authorizing the department or a law enforcement agency to seize illegal flavored tobacco products or tobacco product flavor enhancers that a wholesaler or retailer possesses, stores, owns, or sold, as specified. Existing law further requires the department to impose on the wholesaler or retailer a specified civil penalty per individual package of flavored tobacco product or tobacco product flavor enhancer. Existing law defines package for purposes of the penalty provision applicable to retailers.This bill would add the same definition of package for purposes of the penalty provision applicable to wholesalers.Chapter 462 of the Statutes of 2024 (SB 1230), among other things, added a provision to the Cigarette and Tobacco Products Licensing Act of 2003 similar to the above-described provision relating to the seizure of a retailers products added by AB 3218. Specifically, SB 1230 authorizes the department to seize illegal flavored tobacco products or tobacco product flavor enhancers if the department discovers that a retailer sells, offers for sale, or possesses with the intent to sell or offer for sale, those products, and deems the seized products as forfeited.This bill would repeal the above-described provision added by SB 1230.Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.This bill would make legislative findings to that effect.Existing law requires a retailer to maintain and have in place a license to engage in the sale of cigarettes or tobacco products. Existing law requires the retailer to obtain a separate license for each retail location and display the license in a manner visible to the public. Existing law requires the retailer to submit a fee of $265 with their application for a license.This bill would make technical, nonsubstantive changes to those provisions.
The Cigarette and Tobacco Products Licensing Act of 2003 requires the California Department of Tax and Fee Administration to administer a statewide program to license manufacturers, distributers, and retailers of cigarettes and tobacco products. The act requires a retailer who sells tobacco products that are exempt from taxation under the Cigarette and Tobacco Products Tax Law to pay a fee of $265 for the issuance or renewal of a license.
This bill would instead require a retailer to pay a fee to cover the reasonable regulatory costs of the department, not to exceed $600, for the issuance or renewal of a license to sell those tobacco products. The bill would require the Legislative Analyst, on or before December 1, 2027, and again on or before December 1, 2029, in collaboration with specified agencies, to prepare and submit reports to the Legislature on the adequacy of funding for the tobacco retailer licensing program and the rate of inspection of retailers. The bill would repeal those reporting requirements on January 1, 2034.
Chapter 849 of the Statutes of 2024 (AB 3218) revised the Cigarette and Tobacco Products Licensing Act of 2003 by, among other things, authorizing the department or a law enforcement agency to seize illegal flavored tobacco products or tobacco product flavor enhancers that a wholesaler or retailer possesses, stores, owns, or sold, as specified. Existing law further requires the department to impose on the wholesaler or retailer a specified civil penalty per individual package of flavored tobacco product or tobacco product flavor enhancer. Existing law defines package for purposes of the penalty provision applicable to retailers.
This bill would add the same definition of package for purposes of the penalty provision applicable to wholesalers.
Chapter 462 of the Statutes of 2024 (SB 1230), among other things, added a provision to the Cigarette and Tobacco Products Licensing Act of 2003 similar to the above-described provision relating to the seizure of a retailers products added by AB 3218. Specifically, SB 1230 authorizes the department to seize illegal flavored tobacco products or tobacco product flavor enhancers if the department discovers that a retailer sells, offers for sale, or possesses with the intent to sell or offer for sale, those products, and deems the seized products as forfeited.
This bill would repeal the above-described provision added by SB 1230.
Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.
This bill would make legislative findings to that effect.
Existing law requires a retailer to maintain and have in place a license to engage in the sale of cigarettes or tobacco products. Existing law requires the retailer to obtain a separate license for each retail location and display the license in a manner visible to the public. Existing law requires the retailer to submit a fee of $265 with their application for a license.
This bill would make technical, nonsubstantive changes to those provisions.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. The Legislature finds and declares all of the following:(a) As state agencies ramp up efforts to enforce Californias flavored tobacco laws, the scale and frequency of enforcement activities is critical. As of September 2024, prohibited flavored e-cigarettes comprised 39.8 percent of total e-cigarette sales in California.(b) While the proportion of California youth and young adult tobacco users who report that it is easy to access flavored tobacco products in retail stores has declined since implementation of the ban, over 70 percent still believe it is easy to access these products. Nearly 90 percent of California high school e-cigarette users report using flavored e-cigarettes.(c) In 2024, California tobacco retailers still sold tobacco to underage buyers at a rate of 18.9 percent. Regular compliance inspections are proven to reduce youth access to tobacco products.(d) The California Department of Tax and Fee Administration (CDTFA) issues, administers, and enforces the states tobacco retailer license program. There are about 30,000 licensed tobacco retailers in California.(e) The fee for the tobacco retailer license is $265 per year. This fee is unchanged since 2016. The passage of Californias law banning the sale of most flavored tobacco products resulted in a significant increase in seizure costs that have drastically affected the total number of inspections the CDTFA is able to complete.(f) Currently the CDTFA inspects fewer than 15 percent of the retailers annually and violations have risen, since passage of the ban on sale of flavored tobacco products, from 2 percent of retailers inspected to 14 percent. This means that retailers are only likely to be inspected once every eight years, while violations are on the rise.(g) Increasing the tobacco retailer fee would ensure that more retailers are inspected annually by the CDTFA and would bolster compliance with the state flavored tobacco licensing and tax laws, and the Stop Tobacco Access to Kids Enforcement Act.SECTION 1.SEC. 2. Section 22973.3 of the Business and Professions Code is amended to read:22973.3. (a) Notwithstanding any other law, an application for a license for the sale of a tobacco product, as defined in subdivision (d) of Section 22950.5, that is not subject to a tax imposed by the Cigarette and Tobacco Products Tax Law pursuant to Part 13 (commencing with Section 30001) of Division 2 of the Revenue and Taxation Code shall be filed on a form prescribed by the board and shall include the following:(1) The name, address, and telephone number of the applicant.(2) The business name, address, and telephone number of each retail location. For applicants who control more than one retail location, an address for receipt of correspondence or notices from the board, such as a headquarters or corporate office of the retailer, shall also be included on the application and listed on the license. Citations issued to licensees shall be forwarded to all addressees on the license.(3) A statement by the applicant affirming that the applicant has not been convicted of a felony and has not violated and will not violate or cause or permit to be violated any of the provisions of this division or any rule of the board applicable to the applicant or pertaining to the manufacture, sale, or distribution of cigarettes or tobacco products. If the applicant is unable to affirm this statement, the application shall contain a statement by the applicant of the nature of any violation or the reasons that will prevent the applicant from complying with the requirements with respect to the statement.(4) If any other licenses or permits have been issued by the board or the Department of Alcoholic Beverage Control to the applicant, the license or permit number of those licenses or permits then in effect.(5) A statement by the applicant that the contents of the application are complete, true, and correct. Any person who signs a statement pursuant to this subdivision that asserts the truth of any material matter that they know to be false is guilty of a misdemeanor punishable by imprisonment of up to one year in a county jail, or a fine of not more than one thousand dollars ($1,000), or both the imprisonment and the fine.(6) The signature of the applicant.(7) Any other information the board may require.(b) The board may investigate to determine the truthfulness and completeness of the information provided in the application. The board may issue a license without further investigation to an applicant for a retail location if the applicant holds a valid license from the Department of Alcoholic Beverage Control for that same location.(c) The board shall provide electronic means for applicants to download and submit applications.(d) A fee of two hundred sixty-five dollars ($265) to cover the reasonable regulatory costs of the board, not to exceed six hundred dollars ($600), as provided by the board by regulation, shall be submitted with each application. application for the issuance or renewal of a license. An applicant that owns or controls more than one retail location shall obtain a separate license and shall pay a separate fee for each retail location, but may submit a single application for those licenses with an application license fee of two hundred sixty-five dollars ($265) per location. licenses. The fee shall be for the period provided in subdivision (d) of Section 22972 and shall not be prorated.(e) Every retailer shall file an application for renewal of its license, accompanied with a fee of two hundred sixty-five dollars ($265) per retail location fees specified in subdivision (d) in the form and manner prescribed by the board.(f) (1) The board shall report back to the Legislature no later than January 1, 2019, regarding the adequacy of funding for the Cigarette and Tobacco Products Licensing Act of 2003 with regard to tobacco products for which a license is required by this section. The report shall include data and recommendations about whether the annual licensing fee funding levels are set at an appropriate level to maintain an effective enforcement program.(2) The report required by paragraph (1) shall be submitted in compliance with Section 9795 of the Government Code.(g) (1) This section applies to a retailer who sells a tobacco product, as defined in subdivision (d) of Section 22950.5, that is not subject to a tax imposed by the Cigarette and Tobacco Products Tax Law pursuant to Part 13 (commencing with Section 30001) of Division 2 of the Revenue and Taxation Code, and who does not already possess a valid license to sell cigarettes or tobacco products issued pursuant to Section 22972.(2) A retailer that possesses a valid license to sell cigarettes and tobacco products issued pursuant to Section 22972 may also sell under that license a tobacco product, as defined in subdivision (d) of Section 22950.5, that is not subject to a tax imposed by the Cigarette and Tobacco Products Tax Law pursuant to Part 13 (commencing with Section 30001) of Division 2 of the Revenue and Taxation Code.SEC. 3. Section 22973.4 is added to the Business and Professions Code, to read:22973.4. (a) On or before December 1, 2027, and again on or before December 1, 2029, the Legislative Analyst, in collaboration with the California Department of Tax and Fee Administration and the State Department of Public Health, including, but not limited to, the Office of Youth Tobacco Enforcement, shall prepare and submit a report to the Legislature on the adequacy of funding for the tobacco retailer licensing program and the rate of inspection of retailers. To the extent data is available, the report shall include, but not be limited to:(1) Strategies and tools to bolster coordination and efficiency between state and federal agencies and local authorities regarding enforcement of all tobacco laws and to ensure state compliance with the federal Synar regulations requiring no more than a 20 percent retailer violation rate.(2) Data and recommendations about whether the annual licensing fees are set at appropriate levels to maintain an effective licensing and enforcement program and attain a reasonable reduction in the availability of flavored tobacco products.(3) Costs for transport, storage, and disposal of hazardous waste, universal waste, and other waste arising from seizures of tobacco products.(4) An evaluation of whether prior violations of analogous federal and local laws regarding the sale of tobacco products to minors should be considered when considering escalating penalties for violations of state laws regarding the sale of tobacco products to minors.(b) To prepare the reports required by this section, the Legislative Analyst may request information from any state or local agency involved in enforcement of laws regulating retailers.(c) The reports required by this section shall be submitted in compliance with Section 9795 of the Government Code and shall not include any personally identifiable information.(d) Pursuant to Section 10231.5 of the Government Code, this section shall become inoperative on December 1, 2033, and is repealed on January 1, 2034.SEC. 4. Section 22974.1 of the Business and Professions Code is repealed.22974.1.(a)Notwithstanding any other law, if the department discovers that a retailer, or any of the tobacco retailers agents or employees, sell, offer for sale or possess with the intent to sell or offer for sale, a flavored tobacco product or tobacco product flavor enhancer, in violation of Section 104559.5 of the Health and Safety Code, the department may seize those flavored tobacco products or tobacco product flavor enhancers at the retail location or any other persons location. Any flavored tobacco products or tobacco product flavor enhancers seized by the department shall be deemed forfeited and the department shall comply with the procedures set forth in Chapter 7.5 (commencing with Section 30435) of Part 13 of Division 2 of the Revenue and Taxation Code.(b)For purposes of this section, flavored tobacco product and tobacco product flavor enhancer shall have the same meaning as the terms are defined in Section 104559.5 of the Health and Safety Code.SEC. 5. Section 22978.3 of the Business and Professions Code is amended to read:22978.3. (a) (1) Notwithstanding any other provision of this division, upon discovery by the department or a law enforcement agency that a wholesaler possesses, stores, or owns flavored tobacco products or tobacco product flavor enhancers, or has made a sale of flavored tobacco products or tobacco product flavor enhancers in violation of Section 104559.1 of the Health and Safety Code, the department or the law enforcement agency may seize the flavored tobacco products or tobacco product flavor enhancers possessed, stored, owned, or sold by the wholesaler.(2) Any flavored tobacco products or tobacco product flavor enhancers seized by a law enforcement agency shall be delivered to the department, or its designee, within 30 days, unless the seized flavored tobacco products or tobacco product flavor enhancers will be destroyed by that law enforcement agency, or unless the seized flavored tobacco products or tobacco product flavor enhancers are otherwise required to be used as evidence in an administrative, criminal, or civil proceeding, or as part of an ongoing law enforcement operation. Any flavored tobacco products or tobacco product flavor enhancers seized by the department or delivered to the department by a law enforcement agency shall be deemed forfeited to the state and the department shall comply with procedures set forth in Chapter 7.5 (commencing with Section 30435) of Part 13 of Division 2 of the Revenue and Taxation Code.(b) (1) In addition to seizure and forfeiture of the flavored tobacco products or tobacco product flavor enhancers described in subdivision (a), the department shall impose a civil penalty upon the wholesaler equal to fifty dollars ($50) per individual package of flavored tobacco product or tobacco product flavor enhancer seized or delivered to the department by a law enforcement agency regardless of the authority used by the law enforcement agency to seize the flavored tobacco product or tobacco product flavor enhancer. The department shall impose the civil penalty in accordance with the procedures applicable to the civil penalty authorized in Section 22978.7.(2) In the case of a second seizure and forfeiture of flavored tobacco products or tobacco product flavor enhancers made pursuant to subdivision (a), the department shall suspend the license of the wholesaler in accordance with the procedures set forth in Section 22980.3.(3) In the case of a third seizure and forfeiture of flavored tobacco products or tobacco product flavor enhancers made pursuant to subdivision (a), the department shall revoke the license of the wholesaler in accordance with the procedures set forth in Section 22980.3.(4) Civil penalties collected pursuant to this section shall be deposited into the Cigarette and Tobacco Products Compliance Fund created pursuant to Section 22990.(5) For purposes of paragraph (1), package means the individual packet, box, or other container of flavored tobacco products or tobacco product flavor enhancers that are normally sold or intended to be sold at retail. Package does not include containers that contain smaller packaging units of flavored tobacco products or tobacco product flavor enhancers, including, but not limited to, cartons, cases, bales, or boxes.(c) Upon discovery by the department that a distributor, wholesaler, or other person has made a sale in violation of Section 104559.1 of the Health and Safety Code, and, for wholesalers, if neither the department nor a law enforcement agency seized flavored tobacco products or tobacco product flavor enhancers from the wholesaler pursuant to subdivision (a), all of the following shall apply:(1) Upon a first offense, the department shall issue a warning notice to the distributor, wholesaler, or other person.(2) Upon a second offense, the department shall suspend the license of the distributor, wholesaler, or person in accordance with the procedures set forth in Section 22980.3.(3) Upon a third offense, the department shall revoke the license of the distributor, wholesaler, or other person in accordance with the procedures set forth in Section 22980.3.(d) The appeals procedures applicable to Section 22978.7 shall apply to the warning notice, suspension, and revocation actions taken by the department pursuant to this section.SEC. 6. The Legislature finds and declares that Section 3 of this act, which adds Section 22973.4 to the Business and Professions Code, imposes a limitation on the publics right of access to the meetings of public bodies or the writings of public officials and agencies within the meaning of Section 3 of Article I of the California Constitution. Pursuant to that constitutional provision, the Legislature makes the following findings to demonstrate the interest protected by this limitation and the need for protecting that interest:This act strikes a balance between reporting essential information to the Legislature to ensure adequate funding for the cigarette and tobacco product retailer licensing program while protecting the privacy of individuals.
The people of the State of California do enact as follows:
## The people of the State of California do enact as follows:
SECTION 1. The Legislature finds and declares all of the following:(a) As state agencies ramp up efforts to enforce Californias flavored tobacco laws, the scale and frequency of enforcement activities is critical. As of September 2024, prohibited flavored e-cigarettes comprised 39.8 percent of total e-cigarette sales in California.(b) While the proportion of California youth and young adult tobacco users who report that it is easy to access flavored tobacco products in retail stores has declined since implementation of the ban, over 70 percent still believe it is easy to access these products. Nearly 90 percent of California high school e-cigarette users report using flavored e-cigarettes.(c) In 2024, California tobacco retailers still sold tobacco to underage buyers at a rate of 18.9 percent. Regular compliance inspections are proven to reduce youth access to tobacco products.(d) The California Department of Tax and Fee Administration (CDTFA) issues, administers, and enforces the states tobacco retailer license program. There are about 30,000 licensed tobacco retailers in California.(e) The fee for the tobacco retailer license is $265 per year. This fee is unchanged since 2016. The passage of Californias law banning the sale of most flavored tobacco products resulted in a significant increase in seizure costs that have drastically affected the total number of inspections the CDTFA is able to complete.(f) Currently the CDTFA inspects fewer than 15 percent of the retailers annually and violations have risen, since passage of the ban on sale of flavored tobacco products, from 2 percent of retailers inspected to 14 percent. This means that retailers are only likely to be inspected once every eight years, while violations are on the rise.(g) Increasing the tobacco retailer fee would ensure that more retailers are inspected annually by the CDTFA and would bolster compliance with the state flavored tobacco licensing and tax laws, and the Stop Tobacco Access to Kids Enforcement Act.
SECTION 1. The Legislature finds and declares all of the following:(a) As state agencies ramp up efforts to enforce Californias flavored tobacco laws, the scale and frequency of enforcement activities is critical. As of September 2024, prohibited flavored e-cigarettes comprised 39.8 percent of total e-cigarette sales in California.(b) While the proportion of California youth and young adult tobacco users who report that it is easy to access flavored tobacco products in retail stores has declined since implementation of the ban, over 70 percent still believe it is easy to access these products. Nearly 90 percent of California high school e-cigarette users report using flavored e-cigarettes.(c) In 2024, California tobacco retailers still sold tobacco to underage buyers at a rate of 18.9 percent. Regular compliance inspections are proven to reduce youth access to tobacco products.(d) The California Department of Tax and Fee Administration (CDTFA) issues, administers, and enforces the states tobacco retailer license program. There are about 30,000 licensed tobacco retailers in California.(e) The fee for the tobacco retailer license is $265 per year. This fee is unchanged since 2016. The passage of Californias law banning the sale of most flavored tobacco products resulted in a significant increase in seizure costs that have drastically affected the total number of inspections the CDTFA is able to complete.(f) Currently the CDTFA inspects fewer than 15 percent of the retailers annually and violations have risen, since passage of the ban on sale of flavored tobacco products, from 2 percent of retailers inspected to 14 percent. This means that retailers are only likely to be inspected once every eight years, while violations are on the rise.(g) Increasing the tobacco retailer fee would ensure that more retailers are inspected annually by the CDTFA and would bolster compliance with the state flavored tobacco licensing and tax laws, and the Stop Tobacco Access to Kids Enforcement Act.
SECTION 1. The Legislature finds and declares all of the following:
### SECTION 1.
(a) As state agencies ramp up efforts to enforce Californias flavored tobacco laws, the scale and frequency of enforcement activities is critical. As of September 2024, prohibited flavored e-cigarettes comprised 39.8 percent of total e-cigarette sales in California.
(b) While the proportion of California youth and young adult tobacco users who report that it is easy to access flavored tobacco products in retail stores has declined since implementation of the ban, over 70 percent still believe it is easy to access these products. Nearly 90 percent of California high school e-cigarette users report using flavored e-cigarettes.
(c) In 2024, California tobacco retailers still sold tobacco to underage buyers at a rate of 18.9 percent. Regular compliance inspections are proven to reduce youth access to tobacco products.
(d) The California Department of Tax and Fee Administration (CDTFA) issues, administers, and enforces the states tobacco retailer license program. There are about 30,000 licensed tobacco retailers in California.
(e) The fee for the tobacco retailer license is $265 per year. This fee is unchanged since 2016. The passage of Californias law banning the sale of most flavored tobacco products resulted in a significant increase in seizure costs that have drastically affected the total number of inspections the CDTFA is able to complete.
(f) Currently the CDTFA inspects fewer than 15 percent of the retailers annually and violations have risen, since passage of the ban on sale of flavored tobacco products, from 2 percent of retailers inspected to 14 percent. This means that retailers are only likely to be inspected once every eight years, while violations are on the rise.
(g) Increasing the tobacco retailer fee would ensure that more retailers are inspected annually by the CDTFA and would bolster compliance with the state flavored tobacco licensing and tax laws, and the Stop Tobacco Access to Kids Enforcement Act.
SECTION 1.SEC. 2. Section 22973.3 of the Business and Professions Code is amended to read:22973.3. (a) Notwithstanding any other law, an application for a license for the sale of a tobacco product, as defined in subdivision (d) of Section 22950.5, that is not subject to a tax imposed by the Cigarette and Tobacco Products Tax Law pursuant to Part 13 (commencing with Section 30001) of Division 2 of the Revenue and Taxation Code shall be filed on a form prescribed by the board and shall include the following:(1) The name, address, and telephone number of the applicant.(2) The business name, address, and telephone number of each retail location. For applicants who control more than one retail location, an address for receipt of correspondence or notices from the board, such as a headquarters or corporate office of the retailer, shall also be included on the application and listed on the license. Citations issued to licensees shall be forwarded to all addressees on the license.(3) A statement by the applicant affirming that the applicant has not been convicted of a felony and has not violated and will not violate or cause or permit to be violated any of the provisions of this division or any rule of the board applicable to the applicant or pertaining to the manufacture, sale, or distribution of cigarettes or tobacco products. If the applicant is unable to affirm this statement, the application shall contain a statement by the applicant of the nature of any violation or the reasons that will prevent the applicant from complying with the requirements with respect to the statement.(4) If any other licenses or permits have been issued by the board or the Department of Alcoholic Beverage Control to the applicant, the license or permit number of those licenses or permits then in effect.(5) A statement by the applicant that the contents of the application are complete, true, and correct. Any person who signs a statement pursuant to this subdivision that asserts the truth of any material matter that they know to be false is guilty of a misdemeanor punishable by imprisonment of up to one year in a county jail, or a fine of not more than one thousand dollars ($1,000), or both the imprisonment and the fine.(6) The signature of the applicant.(7) Any other information the board may require.(b) The board may investigate to determine the truthfulness and completeness of the information provided in the application. The board may issue a license without further investigation to an applicant for a retail location if the applicant holds a valid license from the Department of Alcoholic Beverage Control for that same location.(c) The board shall provide electronic means for applicants to download and submit applications.(d) A fee of two hundred sixty-five dollars ($265) to cover the reasonable regulatory costs of the board, not to exceed six hundred dollars ($600), as provided by the board by regulation, shall be submitted with each application. application for the issuance or renewal of a license. An applicant that owns or controls more than one retail location shall obtain a separate license and shall pay a separate fee for each retail location, but may submit a single application for those licenses with an application license fee of two hundred sixty-five dollars ($265) per location. licenses. The fee shall be for the period provided in subdivision (d) of Section 22972 and shall not be prorated.(e) Every retailer shall file an application for renewal of its license, accompanied with a fee of two hundred sixty-five dollars ($265) per retail location fees specified in subdivision (d) in the form and manner prescribed by the board.(f) (1) The board shall report back to the Legislature no later than January 1, 2019, regarding the adequacy of funding for the Cigarette and Tobacco Products Licensing Act of 2003 with regard to tobacco products for which a license is required by this section. The report shall include data and recommendations about whether the annual licensing fee funding levels are set at an appropriate level to maintain an effective enforcement program.(2) The report required by paragraph (1) shall be submitted in compliance with Section 9795 of the Government Code.(g) (1) This section applies to a retailer who sells a tobacco product, as defined in subdivision (d) of Section 22950.5, that is not subject to a tax imposed by the Cigarette and Tobacco Products Tax Law pursuant to Part 13 (commencing with Section 30001) of Division 2 of the Revenue and Taxation Code, and who does not already possess a valid license to sell cigarettes or tobacco products issued pursuant to Section 22972.(2) A retailer that possesses a valid license to sell cigarettes and tobacco products issued pursuant to Section 22972 may also sell under that license a tobacco product, as defined in subdivision (d) of Section 22950.5, that is not subject to a tax imposed by the Cigarette and Tobacco Products Tax Law pursuant to Part 13 (commencing with Section 30001) of Division 2 of the Revenue and Taxation Code.
SECTION 1.SEC. 2. Section 22973.3 of the Business and Professions Code is amended to read:
### SECTION 1.SEC. 2.
22973.3. (a) Notwithstanding any other law, an application for a license for the sale of a tobacco product, as defined in subdivision (d) of Section 22950.5, that is not subject to a tax imposed by the Cigarette and Tobacco Products Tax Law pursuant to Part 13 (commencing with Section 30001) of Division 2 of the Revenue and Taxation Code shall be filed on a form prescribed by the board and shall include the following:(1) The name, address, and telephone number of the applicant.(2) The business name, address, and telephone number of each retail location. For applicants who control more than one retail location, an address for receipt of correspondence or notices from the board, such as a headquarters or corporate office of the retailer, shall also be included on the application and listed on the license. Citations issued to licensees shall be forwarded to all addressees on the license.(3) A statement by the applicant affirming that the applicant has not been convicted of a felony and has not violated and will not violate or cause or permit to be violated any of the provisions of this division or any rule of the board applicable to the applicant or pertaining to the manufacture, sale, or distribution of cigarettes or tobacco products. If the applicant is unable to affirm this statement, the application shall contain a statement by the applicant of the nature of any violation or the reasons that will prevent the applicant from complying with the requirements with respect to the statement.(4) If any other licenses or permits have been issued by the board or the Department of Alcoholic Beverage Control to the applicant, the license or permit number of those licenses or permits then in effect.(5) A statement by the applicant that the contents of the application are complete, true, and correct. Any person who signs a statement pursuant to this subdivision that asserts the truth of any material matter that they know to be false is guilty of a misdemeanor punishable by imprisonment of up to one year in a county jail, or a fine of not more than one thousand dollars ($1,000), or both the imprisonment and the fine.(6) The signature of the applicant.(7) Any other information the board may require.(b) The board may investigate to determine the truthfulness and completeness of the information provided in the application. The board may issue a license without further investigation to an applicant for a retail location if the applicant holds a valid license from the Department of Alcoholic Beverage Control for that same location.(c) The board shall provide electronic means for applicants to download and submit applications.(d) A fee of two hundred sixty-five dollars ($265) to cover the reasonable regulatory costs of the board, not to exceed six hundred dollars ($600), as provided by the board by regulation, shall be submitted with each application. application for the issuance or renewal of a license. An applicant that owns or controls more than one retail location shall obtain a separate license and shall pay a separate fee for each retail location, but may submit a single application for those licenses with an application license fee of two hundred sixty-five dollars ($265) per location. licenses. The fee shall be for the period provided in subdivision (d) of Section 22972 and shall not be prorated.(e) Every retailer shall file an application for renewal of its license, accompanied with a fee of two hundred sixty-five dollars ($265) per retail location fees specified in subdivision (d) in the form and manner prescribed by the board.(f) (1) The board shall report back to the Legislature no later than January 1, 2019, regarding the adequacy of funding for the Cigarette and Tobacco Products Licensing Act of 2003 with regard to tobacco products for which a license is required by this section. The report shall include data and recommendations about whether the annual licensing fee funding levels are set at an appropriate level to maintain an effective enforcement program.(2) The report required by paragraph (1) shall be submitted in compliance with Section 9795 of the Government Code.(g) (1) This section applies to a retailer who sells a tobacco product, as defined in subdivision (d) of Section 22950.5, that is not subject to a tax imposed by the Cigarette and Tobacco Products Tax Law pursuant to Part 13 (commencing with Section 30001) of Division 2 of the Revenue and Taxation Code, and who does not already possess a valid license to sell cigarettes or tobacco products issued pursuant to Section 22972.(2) A retailer that possesses a valid license to sell cigarettes and tobacco products issued pursuant to Section 22972 may also sell under that license a tobacco product, as defined in subdivision (d) of Section 22950.5, that is not subject to a tax imposed by the Cigarette and Tobacco Products Tax Law pursuant to Part 13 (commencing with Section 30001) of Division 2 of the Revenue and Taxation Code.
22973.3. (a) Notwithstanding any other law, an application for a license for the sale of a tobacco product, as defined in subdivision (d) of Section 22950.5, that is not subject to a tax imposed by the Cigarette and Tobacco Products Tax Law pursuant to Part 13 (commencing with Section 30001) of Division 2 of the Revenue and Taxation Code shall be filed on a form prescribed by the board and shall include the following:(1) The name, address, and telephone number of the applicant.(2) The business name, address, and telephone number of each retail location. For applicants who control more than one retail location, an address for receipt of correspondence or notices from the board, such as a headquarters or corporate office of the retailer, shall also be included on the application and listed on the license. Citations issued to licensees shall be forwarded to all addressees on the license.(3) A statement by the applicant affirming that the applicant has not been convicted of a felony and has not violated and will not violate or cause or permit to be violated any of the provisions of this division or any rule of the board applicable to the applicant or pertaining to the manufacture, sale, or distribution of cigarettes or tobacco products. If the applicant is unable to affirm this statement, the application shall contain a statement by the applicant of the nature of any violation or the reasons that will prevent the applicant from complying with the requirements with respect to the statement.(4) If any other licenses or permits have been issued by the board or the Department of Alcoholic Beverage Control to the applicant, the license or permit number of those licenses or permits then in effect.(5) A statement by the applicant that the contents of the application are complete, true, and correct. Any person who signs a statement pursuant to this subdivision that asserts the truth of any material matter that they know to be false is guilty of a misdemeanor punishable by imprisonment of up to one year in a county jail, or a fine of not more than one thousand dollars ($1,000), or both the imprisonment and the fine.(6) The signature of the applicant.(7) Any other information the board may require.(b) The board may investigate to determine the truthfulness and completeness of the information provided in the application. The board may issue a license without further investigation to an applicant for a retail location if the applicant holds a valid license from the Department of Alcoholic Beverage Control for that same location.(c) The board shall provide electronic means for applicants to download and submit applications.(d) A fee of two hundred sixty-five dollars ($265) to cover the reasonable regulatory costs of the board, not to exceed six hundred dollars ($600), as provided by the board by regulation, shall be submitted with each application. application for the issuance or renewal of a license. An applicant that owns or controls more than one retail location shall obtain a separate license and shall pay a separate fee for each retail location, but may submit a single application for those licenses with an application license fee of two hundred sixty-five dollars ($265) per location. licenses. The fee shall be for the period provided in subdivision (d) of Section 22972 and shall not be prorated.(e) Every retailer shall file an application for renewal of its license, accompanied with a fee of two hundred sixty-five dollars ($265) per retail location fees specified in subdivision (d) in the form and manner prescribed by the board.(f) (1) The board shall report back to the Legislature no later than January 1, 2019, regarding the adequacy of funding for the Cigarette and Tobacco Products Licensing Act of 2003 with regard to tobacco products for which a license is required by this section. The report shall include data and recommendations about whether the annual licensing fee funding levels are set at an appropriate level to maintain an effective enforcement program.(2) The report required by paragraph (1) shall be submitted in compliance with Section 9795 of the Government Code.(g) (1) This section applies to a retailer who sells a tobacco product, as defined in subdivision (d) of Section 22950.5, that is not subject to a tax imposed by the Cigarette and Tobacco Products Tax Law pursuant to Part 13 (commencing with Section 30001) of Division 2 of the Revenue and Taxation Code, and who does not already possess a valid license to sell cigarettes or tobacco products issued pursuant to Section 22972.(2) A retailer that possesses a valid license to sell cigarettes and tobacco products issued pursuant to Section 22972 may also sell under that license a tobacco product, as defined in subdivision (d) of Section 22950.5, that is not subject to a tax imposed by the Cigarette and Tobacco Products Tax Law pursuant to Part 13 (commencing with Section 30001) of Division 2 of the Revenue and Taxation Code.
22973.3. (a) Notwithstanding any other law, an application for a license for the sale of a tobacco product, as defined in subdivision (d) of Section 22950.5, that is not subject to a tax imposed by the Cigarette and Tobacco Products Tax Law pursuant to Part 13 (commencing with Section 30001) of Division 2 of the Revenue and Taxation Code shall be filed on a form prescribed by the board and shall include the following:(1) The name, address, and telephone number of the applicant.(2) The business name, address, and telephone number of each retail location. For applicants who control more than one retail location, an address for receipt of correspondence or notices from the board, such as a headquarters or corporate office of the retailer, shall also be included on the application and listed on the license. Citations issued to licensees shall be forwarded to all addressees on the license.(3) A statement by the applicant affirming that the applicant has not been convicted of a felony and has not violated and will not violate or cause or permit to be violated any of the provisions of this division or any rule of the board applicable to the applicant or pertaining to the manufacture, sale, or distribution of cigarettes or tobacco products. If the applicant is unable to affirm this statement, the application shall contain a statement by the applicant of the nature of any violation or the reasons that will prevent the applicant from complying with the requirements with respect to the statement.(4) If any other licenses or permits have been issued by the board or the Department of Alcoholic Beverage Control to the applicant, the license or permit number of those licenses or permits then in effect.(5) A statement by the applicant that the contents of the application are complete, true, and correct. Any person who signs a statement pursuant to this subdivision that asserts the truth of any material matter that they know to be false is guilty of a misdemeanor punishable by imprisonment of up to one year in a county jail, or a fine of not more than one thousand dollars ($1,000), or both the imprisonment and the fine.(6) The signature of the applicant.(7) Any other information the board may require.(b) The board may investigate to determine the truthfulness and completeness of the information provided in the application. The board may issue a license without further investigation to an applicant for a retail location if the applicant holds a valid license from the Department of Alcoholic Beverage Control for that same location.(c) The board shall provide electronic means for applicants to download and submit applications.(d) A fee of two hundred sixty-five dollars ($265) to cover the reasonable regulatory costs of the board, not to exceed six hundred dollars ($600), as provided by the board by regulation, shall be submitted with each application. application for the issuance or renewal of a license. An applicant that owns or controls more than one retail location shall obtain a separate license and shall pay a separate fee for each retail location, but may submit a single application for those licenses with an application license fee of two hundred sixty-five dollars ($265) per location. licenses. The fee shall be for the period provided in subdivision (d) of Section 22972 and shall not be prorated.(e) Every retailer shall file an application for renewal of its license, accompanied with a fee of two hundred sixty-five dollars ($265) per retail location fees specified in subdivision (d) in the form and manner prescribed by the board.(f) (1) The board shall report back to the Legislature no later than January 1, 2019, regarding the adequacy of funding for the Cigarette and Tobacco Products Licensing Act of 2003 with regard to tobacco products for which a license is required by this section. The report shall include data and recommendations about whether the annual licensing fee funding levels are set at an appropriate level to maintain an effective enforcement program.(2) The report required by paragraph (1) shall be submitted in compliance with Section 9795 of the Government Code.(g) (1) This section applies to a retailer who sells a tobacco product, as defined in subdivision (d) of Section 22950.5, that is not subject to a tax imposed by the Cigarette and Tobacco Products Tax Law pursuant to Part 13 (commencing with Section 30001) of Division 2 of the Revenue and Taxation Code, and who does not already possess a valid license to sell cigarettes or tobacco products issued pursuant to Section 22972.(2) A retailer that possesses a valid license to sell cigarettes and tobacco products issued pursuant to Section 22972 may also sell under that license a tobacco product, as defined in subdivision (d) of Section 22950.5, that is not subject to a tax imposed by the Cigarette and Tobacco Products Tax Law pursuant to Part 13 (commencing with Section 30001) of Division 2 of the Revenue and Taxation Code.
22973.3. (a) Notwithstanding any other law, an application for a license for the sale of a tobacco product, as defined in subdivision (d) of Section 22950.5, that is not subject to a tax imposed by the Cigarette and Tobacco Products Tax Law pursuant to Part 13 (commencing with Section 30001) of Division 2 of the Revenue and Taxation Code shall be filed on a form prescribed by the board and shall include the following:
(1) The name, address, and telephone number of the applicant.
(2) The business name, address, and telephone number of each retail location. For applicants who control more than one retail location, an address for receipt of correspondence or notices from the board, such as a headquarters or corporate office of the retailer, shall also be included on the application and listed on the license. Citations issued to licensees shall be forwarded to all addressees on the license.
(3) A statement by the applicant affirming that the applicant has not been convicted of a felony and has not violated and will not violate or cause or permit to be violated any of the provisions of this division or any rule of the board applicable to the applicant or pertaining to the manufacture, sale, or distribution of cigarettes or tobacco products. If the applicant is unable to affirm this statement, the application shall contain a statement by the applicant of the nature of any violation or the reasons that will prevent the applicant from complying with the requirements with respect to the statement.
(4) If any other licenses or permits have been issued by the board or the Department of Alcoholic Beverage Control to the applicant, the license or permit number of those licenses or permits then in effect.
(5) A statement by the applicant that the contents of the application are complete, true, and correct. Any person who signs a statement pursuant to this subdivision that asserts the truth of any material matter that they know to be false is guilty of a misdemeanor punishable by imprisonment of up to one year in a county jail, or a fine of not more than one thousand dollars ($1,000), or both the imprisonment and the fine.
(6) The signature of the applicant.
(7) Any other information the board may require.
(b) The board may investigate to determine the truthfulness and completeness of the information provided in the application. The board may issue a license without further investigation to an applicant for a retail location if the applicant holds a valid license from the Department of Alcoholic Beverage Control for that same location.
(c) The board shall provide electronic means for applicants to download and submit applications.
(d) A fee of two hundred sixty-five dollars ($265) to cover the reasonable regulatory costs of the board, not to exceed six hundred dollars ($600), as provided by the board by regulation, shall be submitted with each application. application for the issuance or renewal of a license. An applicant that owns or controls more than one retail location shall obtain a separate license and shall pay a separate fee for each retail location, but may submit a single application for those licenses with an application license fee of two hundred sixty-five dollars ($265) per location. licenses. The fee shall be for the period provided in subdivision (d) of Section 22972 and shall not be prorated.
(e) Every retailer shall file an application for renewal of its license, accompanied with a fee of two hundred sixty-five dollars ($265) per retail location fees specified in subdivision (d) in the form and manner prescribed by the board.
(f) (1) The board shall report back to the Legislature no later than January 1, 2019, regarding the adequacy of funding for the Cigarette and Tobacco Products Licensing Act of 2003 with regard to tobacco products for which a license is required by this section. The report shall include data and recommendations about whether the annual licensing fee funding levels are set at an appropriate level to maintain an effective enforcement program.
(2) The report required by paragraph (1) shall be submitted in compliance with Section 9795 of the Government Code.
(g) (1) This section applies to a retailer who sells a tobacco product, as defined in subdivision (d) of Section 22950.5, that is not subject to a tax imposed by the Cigarette and Tobacco Products Tax Law pursuant to Part 13 (commencing with Section 30001) of Division 2 of the Revenue and Taxation Code, and who does not already possess a valid license to sell cigarettes or tobacco products issued pursuant to Section 22972.
(2) A retailer that possesses a valid license to sell cigarettes and tobacco products issued pursuant to Section 22972 may also sell under that license a tobacco product, as defined in subdivision (d) of Section 22950.5, that is not subject to a tax imposed by the Cigarette and Tobacco Products Tax Law pursuant to Part 13 (commencing with Section 30001) of Division 2 of the Revenue and Taxation Code.
SEC. 3. Section 22973.4 is added to the Business and Professions Code, to read:22973.4. (a) On or before December 1, 2027, and again on or before December 1, 2029, the Legislative Analyst, in collaboration with the California Department of Tax and Fee Administration and the State Department of Public Health, including, but not limited to, the Office of Youth Tobacco Enforcement, shall prepare and submit a report to the Legislature on the adequacy of funding for the tobacco retailer licensing program and the rate of inspection of retailers. To the extent data is available, the report shall include, but not be limited to:(1) Strategies and tools to bolster coordination and efficiency between state and federal agencies and local authorities regarding enforcement of all tobacco laws and to ensure state compliance with the federal Synar regulations requiring no more than a 20 percent retailer violation rate.(2) Data and recommendations about whether the annual licensing fees are set at appropriate levels to maintain an effective licensing and enforcement program and attain a reasonable reduction in the availability of flavored tobacco products.(3) Costs for transport, storage, and disposal of hazardous waste, universal waste, and other waste arising from seizures of tobacco products.(4) An evaluation of whether prior violations of analogous federal and local laws regarding the sale of tobacco products to minors should be considered when considering escalating penalties for violations of state laws regarding the sale of tobacco products to minors.(b) To prepare the reports required by this section, the Legislative Analyst may request information from any state or local agency involved in enforcement of laws regulating retailers.(c) The reports required by this section shall be submitted in compliance with Section 9795 of the Government Code and shall not include any personally identifiable information.(d) Pursuant to Section 10231.5 of the Government Code, this section shall become inoperative on December 1, 2033, and is repealed on January 1, 2034.
SEC. 3. Section 22973.4 is added to the Business and Professions Code, to read:
### SEC. 3.
22973.4. (a) On or before December 1, 2027, and again on or before December 1, 2029, the Legislative Analyst, in collaboration with the California Department of Tax and Fee Administration and the State Department of Public Health, including, but not limited to, the Office of Youth Tobacco Enforcement, shall prepare and submit a report to the Legislature on the adequacy of funding for the tobacco retailer licensing program and the rate of inspection of retailers. To the extent data is available, the report shall include, but not be limited to:(1) Strategies and tools to bolster coordination and efficiency between state and federal agencies and local authorities regarding enforcement of all tobacco laws and to ensure state compliance with the federal Synar regulations requiring no more than a 20 percent retailer violation rate.(2) Data and recommendations about whether the annual licensing fees are set at appropriate levels to maintain an effective licensing and enforcement program and attain a reasonable reduction in the availability of flavored tobacco products.(3) Costs for transport, storage, and disposal of hazardous waste, universal waste, and other waste arising from seizures of tobacco products.(4) An evaluation of whether prior violations of analogous federal and local laws regarding the sale of tobacco products to minors should be considered when considering escalating penalties for violations of state laws regarding the sale of tobacco products to minors.(b) To prepare the reports required by this section, the Legislative Analyst may request information from any state or local agency involved in enforcement of laws regulating retailers.(c) The reports required by this section shall be submitted in compliance with Section 9795 of the Government Code and shall not include any personally identifiable information.(d) Pursuant to Section 10231.5 of the Government Code, this section shall become inoperative on December 1, 2033, and is repealed on January 1, 2034.
22973.4. (a) On or before December 1, 2027, and again on or before December 1, 2029, the Legislative Analyst, in collaboration with the California Department of Tax and Fee Administration and the State Department of Public Health, including, but not limited to, the Office of Youth Tobacco Enforcement, shall prepare and submit a report to the Legislature on the adequacy of funding for the tobacco retailer licensing program and the rate of inspection of retailers. To the extent data is available, the report shall include, but not be limited to:(1) Strategies and tools to bolster coordination and efficiency between state and federal agencies and local authorities regarding enforcement of all tobacco laws and to ensure state compliance with the federal Synar regulations requiring no more than a 20 percent retailer violation rate.(2) Data and recommendations about whether the annual licensing fees are set at appropriate levels to maintain an effective licensing and enforcement program and attain a reasonable reduction in the availability of flavored tobacco products.(3) Costs for transport, storage, and disposal of hazardous waste, universal waste, and other waste arising from seizures of tobacco products.(4) An evaluation of whether prior violations of analogous federal and local laws regarding the sale of tobacco products to minors should be considered when considering escalating penalties for violations of state laws regarding the sale of tobacco products to minors.(b) To prepare the reports required by this section, the Legislative Analyst may request information from any state or local agency involved in enforcement of laws regulating retailers.(c) The reports required by this section shall be submitted in compliance with Section 9795 of the Government Code and shall not include any personally identifiable information.(d) Pursuant to Section 10231.5 of the Government Code, this section shall become inoperative on December 1, 2033, and is repealed on January 1, 2034.
22973.4. (a) On or before December 1, 2027, and again on or before December 1, 2029, the Legislative Analyst, in collaboration with the California Department of Tax and Fee Administration and the State Department of Public Health, including, but not limited to, the Office of Youth Tobacco Enforcement, shall prepare and submit a report to the Legislature on the adequacy of funding for the tobacco retailer licensing program and the rate of inspection of retailers. To the extent data is available, the report shall include, but not be limited to:(1) Strategies and tools to bolster coordination and efficiency between state and federal agencies and local authorities regarding enforcement of all tobacco laws and to ensure state compliance with the federal Synar regulations requiring no more than a 20 percent retailer violation rate.(2) Data and recommendations about whether the annual licensing fees are set at appropriate levels to maintain an effective licensing and enforcement program and attain a reasonable reduction in the availability of flavored tobacco products.(3) Costs for transport, storage, and disposal of hazardous waste, universal waste, and other waste arising from seizures of tobacco products.(4) An evaluation of whether prior violations of analogous federal and local laws regarding the sale of tobacco products to minors should be considered when considering escalating penalties for violations of state laws regarding the sale of tobacco products to minors.(b) To prepare the reports required by this section, the Legislative Analyst may request information from any state or local agency involved in enforcement of laws regulating retailers.(c) The reports required by this section shall be submitted in compliance with Section 9795 of the Government Code and shall not include any personally identifiable information.(d) Pursuant to Section 10231.5 of the Government Code, this section shall become inoperative on December 1, 2033, and is repealed on January 1, 2034.
22973.4. (a) On or before December 1, 2027, and again on or before December 1, 2029, the Legislative Analyst, in collaboration with the California Department of Tax and Fee Administration and the State Department of Public Health, including, but not limited to, the Office of Youth Tobacco Enforcement, shall prepare and submit a report to the Legislature on the adequacy of funding for the tobacco retailer licensing program and the rate of inspection of retailers. To the extent data is available, the report shall include, but not be limited to:
(1) Strategies and tools to bolster coordination and efficiency between state and federal agencies and local authorities regarding enforcement of all tobacco laws and to ensure state compliance with the federal Synar regulations requiring no more than a 20 percent retailer violation rate.
(2) Data and recommendations about whether the annual licensing fees are set at appropriate levels to maintain an effective licensing and enforcement program and attain a reasonable reduction in the availability of flavored tobacco products.
(3) Costs for transport, storage, and disposal of hazardous waste, universal waste, and other waste arising from seizures of tobacco products.
(4) An evaluation of whether prior violations of analogous federal and local laws regarding the sale of tobacco products to minors should be considered when considering escalating penalties for violations of state laws regarding the sale of tobacco products to minors.
(b) To prepare the reports required by this section, the Legislative Analyst may request information from any state or local agency involved in enforcement of laws regulating retailers.
(c) The reports required by this section shall be submitted in compliance with Section 9795 of the Government Code and shall not include any personally identifiable information.
(d) Pursuant to Section 10231.5 of the Government Code, this section shall become inoperative on December 1, 2033, and is repealed on January 1, 2034.
SEC. 4. Section 22974.1 of the Business and Professions Code is repealed.22974.1.(a)Notwithstanding any other law, if the department discovers that a retailer, or any of the tobacco retailers agents or employees, sell, offer for sale or possess with the intent to sell or offer for sale, a flavored tobacco product or tobacco product flavor enhancer, in violation of Section 104559.5 of the Health and Safety Code, the department may seize those flavored tobacco products or tobacco product flavor enhancers at the retail location or any other persons location. Any flavored tobacco products or tobacco product flavor enhancers seized by the department shall be deemed forfeited and the department shall comply with the procedures set forth in Chapter 7.5 (commencing with Section 30435) of Part 13 of Division 2 of the Revenue and Taxation Code.(b)For purposes of this section, flavored tobacco product and tobacco product flavor enhancer shall have the same meaning as the terms are defined in Section 104559.5 of the Health and Safety Code.
SEC. 4. Section 22974.1 of the Business and Professions Code is repealed.
### SEC. 4.
22974.1.(a)Notwithstanding any other law, if the department discovers that a retailer, or any of the tobacco retailers agents or employees, sell, offer for sale or possess with the intent to sell or offer for sale, a flavored tobacco product or tobacco product flavor enhancer, in violation of Section 104559.5 of the Health and Safety Code, the department may seize those flavored tobacco products or tobacco product flavor enhancers at the retail location or any other persons location. Any flavored tobacco products or tobacco product flavor enhancers seized by the department shall be deemed forfeited and the department shall comply with the procedures set forth in Chapter 7.5 (commencing with Section 30435) of Part 13 of Division 2 of the Revenue and Taxation Code.(b)For purposes of this section, flavored tobacco product and tobacco product flavor enhancer shall have the same meaning as the terms are defined in Section 104559.5 of the Health and Safety Code.
(a)Notwithstanding any other law, if the department discovers that a retailer, or any of the tobacco retailers agents or employees, sell, offer for sale or possess with the intent to sell or offer for sale, a flavored tobacco product or tobacco product flavor enhancer, in violation of Section 104559.5 of the Health and Safety Code, the department may seize those flavored tobacco products or tobacco product flavor enhancers at the retail location or any other persons location. Any flavored tobacco products or tobacco product flavor enhancers seized by the department shall be deemed forfeited and the department shall comply with the procedures set forth in Chapter 7.5 (commencing with Section 30435) of Part 13 of Division 2 of the Revenue and Taxation Code.
(b)For purposes of this section, flavored tobacco product and tobacco product flavor enhancer shall have the same meaning as the terms are defined in Section 104559.5 of the Health and Safety Code.
SEC. 5. Section 22978.3 of the Business and Professions Code is amended to read:22978.3. (a) (1) Notwithstanding any other provision of this division, upon discovery by the department or a law enforcement agency that a wholesaler possesses, stores, or owns flavored tobacco products or tobacco product flavor enhancers, or has made a sale of flavored tobacco products or tobacco product flavor enhancers in violation of Section 104559.1 of the Health and Safety Code, the department or the law enforcement agency may seize the flavored tobacco products or tobacco product flavor enhancers possessed, stored, owned, or sold by the wholesaler.(2) Any flavored tobacco products or tobacco product flavor enhancers seized by a law enforcement agency shall be delivered to the department, or its designee, within 30 days, unless the seized flavored tobacco products or tobacco product flavor enhancers will be destroyed by that law enforcement agency, or unless the seized flavored tobacco products or tobacco product flavor enhancers are otherwise required to be used as evidence in an administrative, criminal, or civil proceeding, or as part of an ongoing law enforcement operation. Any flavored tobacco products or tobacco product flavor enhancers seized by the department or delivered to the department by a law enforcement agency shall be deemed forfeited to the state and the department shall comply with procedures set forth in Chapter 7.5 (commencing with Section 30435) of Part 13 of Division 2 of the Revenue and Taxation Code.(b) (1) In addition to seizure and forfeiture of the flavored tobacco products or tobacco product flavor enhancers described in subdivision (a), the department shall impose a civil penalty upon the wholesaler equal to fifty dollars ($50) per individual package of flavored tobacco product or tobacco product flavor enhancer seized or delivered to the department by a law enforcement agency regardless of the authority used by the law enforcement agency to seize the flavored tobacco product or tobacco product flavor enhancer. The department shall impose the civil penalty in accordance with the procedures applicable to the civil penalty authorized in Section 22978.7.(2) In the case of a second seizure and forfeiture of flavored tobacco products or tobacco product flavor enhancers made pursuant to subdivision (a), the department shall suspend the license of the wholesaler in accordance with the procedures set forth in Section 22980.3.(3) In the case of a third seizure and forfeiture of flavored tobacco products or tobacco product flavor enhancers made pursuant to subdivision (a), the department shall revoke the license of the wholesaler in accordance with the procedures set forth in Section 22980.3.(4) Civil penalties collected pursuant to this section shall be deposited into the Cigarette and Tobacco Products Compliance Fund created pursuant to Section 22990.(5) For purposes of paragraph (1), package means the individual packet, box, or other container of flavored tobacco products or tobacco product flavor enhancers that are normally sold or intended to be sold at retail. Package does not include containers that contain smaller packaging units of flavored tobacco products or tobacco product flavor enhancers, including, but not limited to, cartons, cases, bales, or boxes.(c) Upon discovery by the department that a distributor, wholesaler, or other person has made a sale in violation of Section 104559.1 of the Health and Safety Code, and, for wholesalers, if neither the department nor a law enforcement agency seized flavored tobacco products or tobacco product flavor enhancers from the wholesaler pursuant to subdivision (a), all of the following shall apply:(1) Upon a first offense, the department shall issue a warning notice to the distributor, wholesaler, or other person.(2) Upon a second offense, the department shall suspend the license of the distributor, wholesaler, or person in accordance with the procedures set forth in Section 22980.3.(3) Upon a third offense, the department shall revoke the license of the distributor, wholesaler, or other person in accordance with the procedures set forth in Section 22980.3.(d) The appeals procedures applicable to Section 22978.7 shall apply to the warning notice, suspension, and revocation actions taken by the department pursuant to this section.
SEC. 5. Section 22978.3 of the Business and Professions Code is amended to read:
### SEC. 5.
22978.3. (a) (1) Notwithstanding any other provision of this division, upon discovery by the department or a law enforcement agency that a wholesaler possesses, stores, or owns flavored tobacco products or tobacco product flavor enhancers, or has made a sale of flavored tobacco products or tobacco product flavor enhancers in violation of Section 104559.1 of the Health and Safety Code, the department or the law enforcement agency may seize the flavored tobacco products or tobacco product flavor enhancers possessed, stored, owned, or sold by the wholesaler.(2) Any flavored tobacco products or tobacco product flavor enhancers seized by a law enforcement agency shall be delivered to the department, or its designee, within 30 days, unless the seized flavored tobacco products or tobacco product flavor enhancers will be destroyed by that law enforcement agency, or unless the seized flavored tobacco products or tobacco product flavor enhancers are otherwise required to be used as evidence in an administrative, criminal, or civil proceeding, or as part of an ongoing law enforcement operation. Any flavored tobacco products or tobacco product flavor enhancers seized by the department or delivered to the department by a law enforcement agency shall be deemed forfeited to the state and the department shall comply with procedures set forth in Chapter 7.5 (commencing with Section 30435) of Part 13 of Division 2 of the Revenue and Taxation Code.(b) (1) In addition to seizure and forfeiture of the flavored tobacco products or tobacco product flavor enhancers described in subdivision (a), the department shall impose a civil penalty upon the wholesaler equal to fifty dollars ($50) per individual package of flavored tobacco product or tobacco product flavor enhancer seized or delivered to the department by a law enforcement agency regardless of the authority used by the law enforcement agency to seize the flavored tobacco product or tobacco product flavor enhancer. The department shall impose the civil penalty in accordance with the procedures applicable to the civil penalty authorized in Section 22978.7.(2) In the case of a second seizure and forfeiture of flavored tobacco products or tobacco product flavor enhancers made pursuant to subdivision (a), the department shall suspend the license of the wholesaler in accordance with the procedures set forth in Section 22980.3.(3) In the case of a third seizure and forfeiture of flavored tobacco products or tobacco product flavor enhancers made pursuant to subdivision (a), the department shall revoke the license of the wholesaler in accordance with the procedures set forth in Section 22980.3.(4) Civil penalties collected pursuant to this section shall be deposited into the Cigarette and Tobacco Products Compliance Fund created pursuant to Section 22990.(5) For purposes of paragraph (1), package means the individual packet, box, or other container of flavored tobacco products or tobacco product flavor enhancers that are normally sold or intended to be sold at retail. Package does not include containers that contain smaller packaging units of flavored tobacco products or tobacco product flavor enhancers, including, but not limited to, cartons, cases, bales, or boxes.(c) Upon discovery by the department that a distributor, wholesaler, or other person has made a sale in violation of Section 104559.1 of the Health and Safety Code, and, for wholesalers, if neither the department nor a law enforcement agency seized flavored tobacco products or tobacco product flavor enhancers from the wholesaler pursuant to subdivision (a), all of the following shall apply:(1) Upon a first offense, the department shall issue a warning notice to the distributor, wholesaler, or other person.(2) Upon a second offense, the department shall suspend the license of the distributor, wholesaler, or person in accordance with the procedures set forth in Section 22980.3.(3) Upon a third offense, the department shall revoke the license of the distributor, wholesaler, or other person in accordance with the procedures set forth in Section 22980.3.(d) The appeals procedures applicable to Section 22978.7 shall apply to the warning notice, suspension, and revocation actions taken by the department pursuant to this section.
22978.3. (a) (1) Notwithstanding any other provision of this division, upon discovery by the department or a law enforcement agency that a wholesaler possesses, stores, or owns flavored tobacco products or tobacco product flavor enhancers, or has made a sale of flavored tobacco products or tobacco product flavor enhancers in violation of Section 104559.1 of the Health and Safety Code, the department or the law enforcement agency may seize the flavored tobacco products or tobacco product flavor enhancers possessed, stored, owned, or sold by the wholesaler.(2) Any flavored tobacco products or tobacco product flavor enhancers seized by a law enforcement agency shall be delivered to the department, or its designee, within 30 days, unless the seized flavored tobacco products or tobacco product flavor enhancers will be destroyed by that law enforcement agency, or unless the seized flavored tobacco products or tobacco product flavor enhancers are otherwise required to be used as evidence in an administrative, criminal, or civil proceeding, or as part of an ongoing law enforcement operation. Any flavored tobacco products or tobacco product flavor enhancers seized by the department or delivered to the department by a law enforcement agency shall be deemed forfeited to the state and the department shall comply with procedures set forth in Chapter 7.5 (commencing with Section 30435) of Part 13 of Division 2 of the Revenue and Taxation Code.(b) (1) In addition to seizure and forfeiture of the flavored tobacco products or tobacco product flavor enhancers described in subdivision (a), the department shall impose a civil penalty upon the wholesaler equal to fifty dollars ($50) per individual package of flavored tobacco product or tobacco product flavor enhancer seized or delivered to the department by a law enforcement agency regardless of the authority used by the law enforcement agency to seize the flavored tobacco product or tobacco product flavor enhancer. The department shall impose the civil penalty in accordance with the procedures applicable to the civil penalty authorized in Section 22978.7.(2) In the case of a second seizure and forfeiture of flavored tobacco products or tobacco product flavor enhancers made pursuant to subdivision (a), the department shall suspend the license of the wholesaler in accordance with the procedures set forth in Section 22980.3.(3) In the case of a third seizure and forfeiture of flavored tobacco products or tobacco product flavor enhancers made pursuant to subdivision (a), the department shall revoke the license of the wholesaler in accordance with the procedures set forth in Section 22980.3.(4) Civil penalties collected pursuant to this section shall be deposited into the Cigarette and Tobacco Products Compliance Fund created pursuant to Section 22990.(5) For purposes of paragraph (1), package means the individual packet, box, or other container of flavored tobacco products or tobacco product flavor enhancers that are normally sold or intended to be sold at retail. Package does not include containers that contain smaller packaging units of flavored tobacco products or tobacco product flavor enhancers, including, but not limited to, cartons, cases, bales, or boxes.(c) Upon discovery by the department that a distributor, wholesaler, or other person has made a sale in violation of Section 104559.1 of the Health and Safety Code, and, for wholesalers, if neither the department nor a law enforcement agency seized flavored tobacco products or tobacco product flavor enhancers from the wholesaler pursuant to subdivision (a), all of the following shall apply:(1) Upon a first offense, the department shall issue a warning notice to the distributor, wholesaler, or other person.(2) Upon a second offense, the department shall suspend the license of the distributor, wholesaler, or person in accordance with the procedures set forth in Section 22980.3.(3) Upon a third offense, the department shall revoke the license of the distributor, wholesaler, or other person in accordance with the procedures set forth in Section 22980.3.(d) The appeals procedures applicable to Section 22978.7 shall apply to the warning notice, suspension, and revocation actions taken by the department pursuant to this section.
22978.3. (a) (1) Notwithstanding any other provision of this division, upon discovery by the department or a law enforcement agency that a wholesaler possesses, stores, or owns flavored tobacco products or tobacco product flavor enhancers, or has made a sale of flavored tobacco products or tobacco product flavor enhancers in violation of Section 104559.1 of the Health and Safety Code, the department or the law enforcement agency may seize the flavored tobacco products or tobacco product flavor enhancers possessed, stored, owned, or sold by the wholesaler.(2) Any flavored tobacco products or tobacco product flavor enhancers seized by a law enforcement agency shall be delivered to the department, or its designee, within 30 days, unless the seized flavored tobacco products or tobacco product flavor enhancers will be destroyed by that law enforcement agency, or unless the seized flavored tobacco products or tobacco product flavor enhancers are otherwise required to be used as evidence in an administrative, criminal, or civil proceeding, or as part of an ongoing law enforcement operation. Any flavored tobacco products or tobacco product flavor enhancers seized by the department or delivered to the department by a law enforcement agency shall be deemed forfeited to the state and the department shall comply with procedures set forth in Chapter 7.5 (commencing with Section 30435) of Part 13 of Division 2 of the Revenue and Taxation Code.(b) (1) In addition to seizure and forfeiture of the flavored tobacco products or tobacco product flavor enhancers described in subdivision (a), the department shall impose a civil penalty upon the wholesaler equal to fifty dollars ($50) per individual package of flavored tobacco product or tobacco product flavor enhancer seized or delivered to the department by a law enforcement agency regardless of the authority used by the law enforcement agency to seize the flavored tobacco product or tobacco product flavor enhancer. The department shall impose the civil penalty in accordance with the procedures applicable to the civil penalty authorized in Section 22978.7.(2) In the case of a second seizure and forfeiture of flavored tobacco products or tobacco product flavor enhancers made pursuant to subdivision (a), the department shall suspend the license of the wholesaler in accordance with the procedures set forth in Section 22980.3.(3) In the case of a third seizure and forfeiture of flavored tobacco products or tobacco product flavor enhancers made pursuant to subdivision (a), the department shall revoke the license of the wholesaler in accordance with the procedures set forth in Section 22980.3.(4) Civil penalties collected pursuant to this section shall be deposited into the Cigarette and Tobacco Products Compliance Fund created pursuant to Section 22990.(5) For purposes of paragraph (1), package means the individual packet, box, or other container of flavored tobacco products or tobacco product flavor enhancers that are normally sold or intended to be sold at retail. Package does not include containers that contain smaller packaging units of flavored tobacco products or tobacco product flavor enhancers, including, but not limited to, cartons, cases, bales, or boxes.(c) Upon discovery by the department that a distributor, wholesaler, or other person has made a sale in violation of Section 104559.1 of the Health and Safety Code, and, for wholesalers, if neither the department nor a law enforcement agency seized flavored tobacco products or tobacco product flavor enhancers from the wholesaler pursuant to subdivision (a), all of the following shall apply:(1) Upon a first offense, the department shall issue a warning notice to the distributor, wholesaler, or other person.(2) Upon a second offense, the department shall suspend the license of the distributor, wholesaler, or person in accordance with the procedures set forth in Section 22980.3.(3) Upon a third offense, the department shall revoke the license of the distributor, wholesaler, or other person in accordance with the procedures set forth in Section 22980.3.(d) The appeals procedures applicable to Section 22978.7 shall apply to the warning notice, suspension, and revocation actions taken by the department pursuant to this section.
22978.3. (a) (1) Notwithstanding any other provision of this division, upon discovery by the department or a law enforcement agency that a wholesaler possesses, stores, or owns flavored tobacco products or tobacco product flavor enhancers, or has made a sale of flavored tobacco products or tobacco product flavor enhancers in violation of Section 104559.1 of the Health and Safety Code, the department or the law enforcement agency may seize the flavored tobacco products or tobacco product flavor enhancers possessed, stored, owned, or sold by the wholesaler.
(2) Any flavored tobacco products or tobacco product flavor enhancers seized by a law enforcement agency shall be delivered to the department, or its designee, within 30 days, unless the seized flavored tobacco products or tobacco product flavor enhancers will be destroyed by that law enforcement agency, or unless the seized flavored tobacco products or tobacco product flavor enhancers are otherwise required to be used as evidence in an administrative, criminal, or civil proceeding, or as part of an ongoing law enforcement operation. Any flavored tobacco products or tobacco product flavor enhancers seized by the department or delivered to the department by a law enforcement agency shall be deemed forfeited to the state and the department shall comply with procedures set forth in Chapter 7.5 (commencing with Section 30435) of Part 13 of Division 2 of the Revenue and Taxation Code.
(b) (1) In addition to seizure and forfeiture of the flavored tobacco products or tobacco product flavor enhancers described in subdivision (a), the department shall impose a civil penalty upon the wholesaler equal to fifty dollars ($50) per individual package of flavored tobacco product or tobacco product flavor enhancer seized or delivered to the department by a law enforcement agency regardless of the authority used by the law enforcement agency to seize the flavored tobacco product or tobacco product flavor enhancer. The department shall impose the civil penalty in accordance with the procedures applicable to the civil penalty authorized in Section 22978.7.
(2) In the case of a second seizure and forfeiture of flavored tobacco products or tobacco product flavor enhancers made pursuant to subdivision (a), the department shall suspend the license of the wholesaler in accordance with the procedures set forth in Section 22980.3.
(3) In the case of a third seizure and forfeiture of flavored tobacco products or tobacco product flavor enhancers made pursuant to subdivision (a), the department shall revoke the license of the wholesaler in accordance with the procedures set forth in Section 22980.3.
(4) Civil penalties collected pursuant to this section shall be deposited into the Cigarette and Tobacco Products Compliance Fund created pursuant to Section 22990.
(5) For purposes of paragraph (1), package means the individual packet, box, or other container of flavored tobacco products or tobacco product flavor enhancers that are normally sold or intended to be sold at retail. Package does not include containers that contain smaller packaging units of flavored tobacco products or tobacco product flavor enhancers, including, but not limited to, cartons, cases, bales, or boxes.
(c) Upon discovery by the department that a distributor, wholesaler, or other person has made a sale in violation of Section 104559.1 of the Health and Safety Code, and, for wholesalers, if neither the department nor a law enforcement agency seized flavored tobacco products or tobacco product flavor enhancers from the wholesaler pursuant to subdivision (a), all of the following shall apply:
(1) Upon a first offense, the department shall issue a warning notice to the distributor, wholesaler, or other person.
(2) Upon a second offense, the department shall suspend the license of the distributor, wholesaler, or person in accordance with the procedures set forth in Section 22980.3.
(3) Upon a third offense, the department shall revoke the license of the distributor, wholesaler, or other person in accordance with the procedures set forth in Section 22980.3.
(d) The appeals procedures applicable to Section 22978.7 shall apply to the warning notice, suspension, and revocation actions taken by the department pursuant to this section.
SEC. 6. The Legislature finds and declares that Section 3 of this act, which adds Section 22973.4 to the Business and Professions Code, imposes a limitation on the publics right of access to the meetings of public bodies or the writings of public officials and agencies within the meaning of Section 3 of Article I of the California Constitution. Pursuant to that constitutional provision, the Legislature makes the following findings to demonstrate the interest protected by this limitation and the need for protecting that interest:This act strikes a balance between reporting essential information to the Legislature to ensure adequate funding for the cigarette and tobacco product retailer licensing program while protecting the privacy of individuals.
SEC. 6. The Legislature finds and declares that Section 3 of this act, which adds Section 22973.4 to the Business and Professions Code, imposes a limitation on the publics right of access to the meetings of public bodies or the writings of public officials and agencies within the meaning of Section 3 of Article I of the California Constitution. Pursuant to that constitutional provision, the Legislature makes the following findings to demonstrate the interest protected by this limitation and the need for protecting that interest:This act strikes a balance between reporting essential information to the Legislature to ensure adequate funding for the cigarette and tobacco product retailer licensing program while protecting the privacy of individuals.
SEC. 6. The Legislature finds and declares that Section 3 of this act, which adds Section 22973.4 to the Business and Professions Code, imposes a limitation on the publics right of access to the meetings of public bodies or the writings of public officials and agencies within the meaning of Section 3 of Article I of the California Constitution. Pursuant to that constitutional provision, the Legislature makes the following findings to demonstrate the interest protected by this limitation and the need for protecting that interest:
### SEC. 6.
This act strikes a balance between reporting essential information to the Legislature to ensure adequate funding for the cigarette and tobacco product retailer licensing program while protecting the privacy of individuals.